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Home My WebLink AboutRDA RES 496RESOLUTION NO. 496 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT � AGENCY ADOPTING A FfVE-YEAR IMPLEMENTATION PLAN FOR THE AGENCY'S REDEVELOPMENT PROJECT AREAS; AND ADOPTING THE AFFORDABLE HOUSING PRODUCTION PLAN, AND MAKING FINDINGS APPROVING THE AGGREGATION OF NEW OR SUBSTANTIALLY REHABILITATED DWELLING UNITS AMONG THE PROJECT AREAS WHEREAS, Section 33490(a}(1)(A) of the California Community Redevelopment Law, Heaith and Safety Code 33000 et.seg. ("Law") requires all redevelopment agencies to adopt an Implementation Plan every five years, following a duly noticed public hearing, and WHEREAS, Section 33490(a)(1)(A) requires that the Implementation Plan contain the specific goals and objectives of the agency for the project areas, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the project areas and implement the requirements of Sections 33334.2, 33334.4, 33334.6, and 33413 of Law, and WHEREAS, pursuant to Section 33490 of the Law, the Palm Desert `— Redevelopment Agency ("Agency") has prepared a Five-Year Implementation Plan, including a Ten Year Affordable Housing Compliance Plan, for Project Area No. 1(Original and Added Temtory), Project Area No. 2, Project Area No. 3 and Project Area No. 4, contained herewith as Exhibit A, and WHEREAS, Section 33413(b)(2)(A)(v) authorizes the Agency to aggregate new or substantially rehabilitated dwelling units in one or more project areas if the Agency finds, based on substantial evidence, after a public hearing, that the aggregation will not cause or exacerbate racial, ethnic or economic segregation, and WHEREAS, the Agency held, on November 18, 2004, a noticed public hearing regarding the Implementation Plan and regarding the aggregation of new or substantially rehabilitated dwelling units in Project Area No. 1, As Amended, Project Area No, 2, Project Area No, 3 and Project Area No. 4, and WHEREAS, substantial evidence has been presented to the Agency which demonstrates that: A. The population of the City of Palm Desert is 88.19% white; 1.1 % Black; 20.47% Hispanic; 2.25% Asian; and approximately 6.34% of the Palm Desert population is of some other race. The distribution of racial and ethnic groups is further detailed by Project Area in the attached Exhibit 1. The data provided in Exhibit 1 demonstrates that the racial makeup of — each Project Area, with the exception of Project Area No. 2, is like that of RESOLUTION NO. 496 the City itself. However it cannot be assumed that racial, ethnic or economic segregation has developed or will be exacerbated. The population of Project Area No 2 is 92.76% white; 1.21 °/a Black; 12.10% Hispanic; 2.04% Asian; and approximately 2.6% of Project Area No. 2 is of some other race. As Project Area No. 2 has the smallest current population of any Project Area and the majority of developable land for housing of any Project Area it can be inferred that as this Project Area is built out, it will take on the demographic characteristics of the City much like the other Project Areas which have already seen significant development. B. The median family income and percentage of families living below the median income for the City of Palm Desert is documented for each Project Area and the City itself in Exhibit 2. This exhibit details the income characteristics for both 2000 and 2004 populations. The percentage increase of families in each Project Area with incomes below the City's median income from 2000 through 2004 is consistent with the increase for the City itself, with the exception of Project Area No. 2. As Project Area No. 1(Original and Added Area), Project Area No. 3 and Project Area No. 4 are consisten! with the City in their median income levels and percentage of population living below the Ciry median income it is clearly evident that the aggregation of units will not cause or exacerbate racial, ethnic or economic segregation. Project Area No. 2 has yet to benefit from substantia! housing development and in fact has the greatest amount of developable land of any Project Area. An estimated 2,767 units can be constructed. Many of these units would be reserved for very low, low and moderate income families. In fact, aggregation will have little effect in Project Area No. 2 as most housing is to be developed in this Project Area and the effect of such development will be to more evenly distribute race, ethnicity and income. C. Each Project Area is of a different size and shape, each has its own capacity for housing development. Presently, a majority of developable land for residential units is available in Project Area No. 2 where approximately 2,767 units can be constructed. Project Area No. 1 (Original and Added Territory) is second with a potential 777 units, Project Area No. 3 follows with 554 potential units and Project Area No. 4 has the potential for an additional 76 units. The remaining units to be constructed in Project Area No. 1(Original and Added Area), Project Area No. 3 and Project Area No. 4 will continue to mimic the racial, ethnic and income characteristics of the City and Project Area. Project Area No. 2 which has the vast amount of potential units will see the most significant change in its racial, ethnic and economic structure. However this change will not cause or exacerbate racial, ethnic or economic segregation but will in fact lead to a more diverse area mimicking that of Project Area No. 1(Original and Added Area), Project Area No. 3, Project Area No. 4 and the City itself. RESOLUTION N0.496 WHEREAS, the Agency seeks more flexibility to assist affordable housing units in various areas within the City of Palm Desert. ` NOW, THEREFORE, the Palm Desert Redevelopment Agency does hereby find, determine and resolve as follows: Section 1. The Agency hereby adqpts the Five-Year lmplementation Plan for Project Area No. 1(Original and Added Territory}, Project Area No. 2, Project Area No. 3 and Project Area No. 4, attached hereto as Exhibit A. Section 2. Based on information and testimony presented to the Agency, the Agency hereby finds, in accordance with California Health and Safety Code Section 33413(b){2)(A)(v), the aggregation of new or substantially rehabilitated dwelling units in Project Area No. 1(Original and Added Territory), Project Area No. 2, Project Area No. 3 and Project Area No. 4 will not cause or exacerbate racial, ethnic or economic segregation. Adopted at the regular meeting of the Palm Desert Redevelopment Agency on the 18th day of November, 2004, by the following vote to wit: AYES: sENSON, CRITES, FERGUSON, RELLY and SPIEGEL NOES: NortE ABSENT: NONE — ABSTAIN: NONE /`f/��i�rl' Robert A. Spiegel, air n ATTEST: += �,��`��I 1�► ,� . -� ' _ Total Papulation White Alone Black Alone American Ind/Alask Asian Alone Hawaiian/Pac. Island Other Race Alone Two or More Races Total RESOLUTION NO. 496 PA No. 1 PA No. 2 PA No. 3 PA No. d Palm Dese�t 25312 2306 2573 10500 58587 84.61 % 92.76°/a 91.26% 87.81 % 88.19% 1.12% 1.21 % 1.44% 1.40% 1.10% 0.56% 0.17% 0.35% 0.35% 0.41 % 2.71 % 2.04% 2.10% 2.11 % 2.25% 0.15% 0.04% 0.00% 0.06% 0.09% 8.40% 2.39% 2.76% 5.62% 5.84% 2.45% 1.39% 2.10% 2.65% 2.10% 100.00% 100.00% 100.00% 100.00% 100.00% Persons of Hispanic Origin (My Race) Hispanic 26.55% 12.10% 16.36% 18.70% Area No. 1 Area No. 2 Area No. 3 Area No. 4 City of Palm Desert Median Income 2000 $44,343I $63,800I $50,171` $46,556` $46,785 2004 $47,743 $69,326 $53,379� $50,793� $50,594 °!e of Househoids below City of Palm Oesert Median income 2004 51�.93%I 34.75%I 47.51%� 49.31% 48.29% 49.44% 20.47% 4 RESOLUTION NO. 496 EXHIBIT "A" Palm Desert Redevelopment Agency �F 74 Third Five-Year Implement�ion Plan (FY 2�0�4� a5 ti�rough 2008-0�9) • Project Area No. 1 ■ Project Area No. 2 ■ Project Area No. 3 ■ Project Area No. 4 Adopted November �g , 2004 Palm Desert RedevelopmentAgency 73-510 Fred Waring Drive Pafm Desert, CA 92260 �RSG INTELLIGBNT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC 309 West 4th Street Santa Ana, California 92701-4502 Phone: (714) 541-4585 Fax: (714) 541-1175 E-Mail: info(c�webrsca.com RESOLUTION NO. 496 REDEVELOPMENT AGENCY BOARD Robert A. Spiegel, Chairperson Buford Crites, Vice Chairperson Jean M. Benson, Agency Member James Ferguson, Agency Member Richard Kelly, Agency Member REDEVELOPMENT AGENCY STAFF Carlos L. Ortega, Executive Director William Strausz of Richards Watson 8� Gershon, Agency Attomey Justin McCarthy, Assistant City Manager/Redevelopment Paul S. Gibson, Finance Director/Treasurer David L. Yrigoyen, Dir�ctor of Redevelopment & Housing Janet M. Moore, Housing Authority Administrator Rachelle D. Klassen, City C/erk Dennis M. Coleman, Redevelopment & Housing Finance Manager Jose Luis Espinoza, Assistanf Finance Director Lauri Aylaian, Redevelopment Manager PAGE 2 0F 74 Catherine Walker, Senior Management Analyst RESOLUTION NO. 496 Third Fiv�YE�ar Implementa�tion Plan — Palm Desert Redevelopment Projects PAGE 3 OF 74 Introduction.......................................................................................................... 1 Contents of the Implementation Plan ................................................................... 2 Background......................................................................................................... 2 Project Area No. 1(Original and Added Territory) ................................................ 7 Anticipated Planning Period Projects and Programs ..............................12 Five-Year Budget ...................................................................................16 ProjectArea No. 2 .............................................................................................18 Anticipated Planning Period Projects and Programs .............................. 22 Five-Year Budget ................................................................................... 25 ProjectArea No. 3 ............................................................................................. 27 Anticipated Projects and Programs ........................................................ 29 Five-Year Budget ................................................................................... 31 ProjectArea No. 4 ............................................................................................. 33 Anticipated Projects and Programs ........................................................ 36 Five-Year Budget ................................................................................... 38 Appendices Appendix 1— Afforclable Housing Compliance Plan RESOLUTION NO. 496 PAGE 4 OF 74 Third Fiv�Year Implementa�tion Plan Palm Desert Redevelopment Projects �" . . This document is the third Five-Year Implementation Plan for the Palm Desert Redevelopment Agency (the "Agency") of the City of Palm Desert (the "City") for fiscal years 2004-2005 through 2008-2009. This is the Agency's third implementation plan prepared since the enactment of Assembly Bill 1290 which amended the Califomia Redevelopment Law by adding Section 33490. The Implementation Plan is divided into two separate components: a non-housing or redevelopment component and a housing component, which is presented as the Affordable Housing Compliance Plan attached to this Implementation Plan as Appendix 1. Section 33490 requires that each redevelopment agency, which has adopted a redevelopment plan prior to December 31, 1993, adopt, after a public hearing, an implementation plan that contains the specific goals and objectives of the agency for its project area(s). The implementation plan must identify the specffic programs/projects and expenditures proposed to be made during the five (5) year term of the implementation plan; provide an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the agency's project area(s); and implement the housing requirements contained in the Law. Pursuant to Section 33490, the implementation plans, where required, were to be adopted no later than December 30, 1994 with subsequent implementation plans adopted each five (5) years thereafter. The City Council of the City of Palm Dese� teek actio� in October of 1974 to establish the Palm Desert Redevelopment Agency. With this action the City embarked on a comprehensive effort to eliminate blighting and adverse conditions within the City. The focus of the City's revitalization efforts has been channeled through the adoption and implementation of its Redevelopment Plans. The Agency's first redevelopment project area, Project Area No. 1, was adopted in July of 1975 and subsequently amended in 1982 to add territory. Since then, the Agency has adopted three (3) additional redevelopment project areas; Project Area No. 2— established in 1987; Project Area No. 3— established in 1991; and Project Area No. 4— established in 1993. The Agency has accomplished numerous redevelopment, development, and infrastructure projects that have revitalized many properties within all of its Project Areas. The Agency has also made a substantial effort to improve and increase the City's supply of affo�dable housing. The Agency has four (4) adopted redevelopment project areas encompassing an estimated 11,771 acres of the City's incorporated territory. ROSENOW SPEVACEK GROUP, INC. PAGE 1 RESOLUTION NO. 496 PAGE 5 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS CONTENTS OF THE IMPLEMENTATION PLAN _. Section 33490 of the California Community Redevelopment Law ("Law°) requires that the Implementation Plan include the following information: ■ specific goals and objectives of the Agency for the Project Areas • the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the Project Areas and will improve and increase the supply of housing affordable to very low, low, and moderate income households. The Law also requires that the Implementation Plan address the Agency's affordable housing production needs and achievements; these items are specifically addressed in the Affordable Housing Compliance Plan, which is found at the end of this Implementation Plan. Background I The Agency was established pursuant to the Califomia Community Redevelopment Law, Heafth 8 Safety Code Section 33000 et seq. (the "Law"). The City Council adopted Ordinance No. 53 on October 24, 1974, which activated the Agency. The Agency is govemed by a five (5) member board, which consists of all members of the City Council. The Mayor, who acts as Chairperson of the Agency, is appointed by the City Council. As previously stated, the Agency — has four (4) adopted redevelopment project areas encompassing an estimated 11,771 acres of the City's incorporated territory. The Agency's four (4) redevelopment project areas are Project Area No. 1(the Original and Added Territory), Project Area No. 2, Project Anea No. 3, and Project Area No. 4(collectively referred to as the "Project Areas"). Over the past 28 years, the Agency has accomplished numerous redevelopment, development, and infrastructure projects that have revitalized many properties within all of its Project Areas. In December of 1994, the Agency adopted its first Five-Year Implementation Plan (FY 1994- 1999). The second Five-Year Implementation Plan was adopted in December of 1999 (FY 1999-2004). Both Five-Year Implementation Plans cover the four (4) adopted redevelopment project areas that encompass an estimated 11,771 acres of the City's incorporated territory. Additionally, pursuant to the requirements of 1he Law, the Agency has held a mid-term public hearing on the progress of each Five Year Implementation Plan and has subsequently prepared a Progress Report for each plan. ROSENOW SPEVACEK GROUP, INC. PAGE 2 RESOLUTION NO. 496 PAGE 6 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS A map of the Project Areas is presented on Figure 1 below: � Palm Desert Redevelopment Agency ��.��.� Project Areas �.. ae +,_, A 9��, ROSENOW SPEVACEK GROUP, INC. PAGE 3 RESOLUTION NO. 496 PAGE 7 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS PLAN LIMITATIONS "� Each Redevelopment Project Area is subject to its own time and financial limits as required by the Law. These limitations are summarized below. Table 1 summarizes the time and financial limits in the Redevelopment Plans for the Project Area. TABLE 1 PALM OESERT REDEVELOPMENT AGENCY :�: .� .: . Plan Limits Ori inal Area Added Territo Pro'ect Area No. 2 Pro ect Area No. 3 Pro ect Area No. 4 Date of Adop6on _ July 16, 1975_ November 25, 1981 � July 15, 1987_ l July 17, 1991 �_ July 19. 1993 Effediveness ot Plan/1/2 � Jul 16, 2016 November 25, 2022 Jul 15, 2028 Jul 17, 2032 Jul 19. 2034 Tax I�crement 5758,000,000 5500,000,000 i3 �800,000,000/5 i 360.000,000/3 5200,000,000 �3 Bonded Debt Limit f3 None i 32DO,OOO.D00 r5 S15D.000,000/5 100.000,OOO/3 5600,00�,000 Gross I I 5135, 000, 000l3 Gmd to Incur Debt Efiminated/4 Ellmmatetl/4 � Eliminated/4 Ellmmated/a Eliminated/4 L�mit on Receiving 7ax InCrement and Paying � Indebtedness/2 I July 16, 2026 � November 25, 2032 July 15, 2038 July 17, 2042 � Ju�y 19. 2044 1 Pursuarrt to Assembry Bill 1290 all pre 1994 retleveVopment projects ware requ�reC to adopt specYlfc Yme limRetions. On December 8, 1994 the Crty Council atlopted the requred Ord�nances establishing such limfts ta each Pro�ed Area 2. PursuaM to Senate 8ill 1045 (Statutes of 2003, Chap0.er 260), wfi�ch was enacteC Into law m September of 2003, fhe CRy Council wnll hava the abd�y to extentl each Pro�ed Areas Plan's effectNeness fa the tcne penod to collect tax �ncremerh by ane year. 3. Tax mcrement cap antl/or bonded debt I�nR is exclusrve af amounts pa�d ta taxmp agencbs arW exGusrve of amounts pa�tl Cvectty a mtlirectry by ttie Agency a any tawng entiry to Ifnance the acquisrtlon oi ls�W, conswdan at Dulldings, facilAies, structures or improvements for such taxing agenc�es 4 Pursuant to Senate Bill 211(Statues of 2001 Chapter 7<1) the CRy Counul adoptcd the requireC O�Cinance amendng the Pro�eq Areas RedevelopmeM Plans to efimmate the time IimAs to inar debt 5 Amounts ad�usted annually by Cauuma Pnce Index (CPI) eu�Hnt� coN�morrs Redevelopment projects are established to remedy conditions of blight as defined by the Law that is in effect af the time a r�development project is adopted. The Law's definition of what constitutes blight has changed substantially since the Project Areas were established in 1975, 1981, 1987, 1991 and 1993. The Law s current blight definition is set forth below: Unsafe/Dilapidated/Deteriorated Buildings. Buildings in which it is unsafe or unhealthy for persons to live or woiic. These conditions can be caused by serious building code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings. Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substanda�d design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. ROSENOW SPEVACEK GROUP, INC. PAGE 4 RESOLUTION NO. 496 PAGE 8 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS ■ Incompatible Uses. Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the project area. — • Lots of Irregular Shape, Inadequate Size, and Under Multiple Ownership. The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. ■ Depreciated/Stagnant Property Values; Impaired Investments. Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that r�equire the use of agency authority as specified in Article 12.5 (commencing with Section 33459). ■ High Business Turnovers and Vacancies/Low Lease Rates/Abandoned BuildingsNacant Lots. Abnormally high business vacancies, abnormally low iease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. ■ Lack of Neighborhood Commercial Facilities. A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. • Overcrowding/Excess of Adult Businesses. Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults, which has led to problems of public safety and welfare. ■ High Crime Rates. A high crime rate that constitutes a serious threat to the public safety and welfare. The Law also characterizes inadequate public improvements as blight when one or more of the above physical conditions and one or more of the economic conditions are also present. Despite the success of redevelopment activities to date, many of the blighting conditions that were prevalent in the Project Areas when they were adopted are still present today. A recent review of the Project Areas has confirmed that the Projects still contain the following blighting conditions as defined by the Law's definitions in place at the time of each Project Areas' adoption: • Buildings or structures suffering form age, obsolescence and deterioration. � Some properties within the Project Areas suffer from defective design and character of physical construction and lack adequate parking, loading and storage facilities. ■ Some properties within the Project Areas suffer from economic maladjustment, dislocation, and disuse and are substandard in design. ■ Some prope�ties within the Project Areas exhibit characteristics of faulty interior and exterior arrangement. ■ The Project Areas suffer from inadequate public improvements, traffic, circulation facilities and blighting conditions. ■ The Project Areas suffer from a lack of infrastructure and community facilities. ROSENOW SPEVACEK GROUP, INC PAGE 5 RESOLUTION NO. 496 PAGE 9 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS ■ The Project Areas contain properties that suffer from depreciated or stagnant property values that impair private investment and the Agency's ability to pursue revitalization. `-' • Some properties within the Project Areas suffer from high vacancy rates, high business or rental turnover rates, and low rental rates. • Within the Project Areas properties suffer from inadequate flood control and drainage improvements. • Within the Project Areas properties suffer from conflicting land uses, and irregular parcel shape. While the Agency has been extremely successful in its revitalization efforts, the conditions identified above continue to persist within various areas of the Project Areas. These conditions continue to inhibit economic growth, and are beyond the capacity of the private sector or public sector to correct, acting alone without the powers of redevelopment. ROSENOW SPEVACEK GROUP, INC. PAGE 6 RESOLUTtON NO. 496 Third Fiv�Year Implem�ntation Plan Palm Desert Redevelopment Projec�s PAGE 10 OF 74 The Ordinance adopting Project Area No. 1(the "Original Area") was approved by the City Council on June 12, 1975. The Agency's Report to the City Council requesting the proposed Redevelopment Plan for the Original Area indicated that the area had been selected because of the existence of lots which were subject to being submerged by water; lots of inadequate size for proper usefulness and development; inadequate streets; a problem of traffic congestion; faulty interior arrangement of lots and buildings and exterior spacing; inadequate parking facilities; and mixed character of development and shifting of land uses. The Original Area encompasses approximately 420 parcels (580 acres) of retail and office/commercial development along the City's primary commercial strip, Highway 111. The Originai Area is generally bounded by portions of Fred Waring and Alessandro Drives to the north, EI Paseo and adjoining commercial properties to the south, and the City limits to the east and west. On November 25, 1981, the Redevelopment Plan for Project Area No. 1 was amended to add approximately 10,814 parcels tota(ing 5,240 acres, thereby creating the "Added Territory". The Added Territory is made up of a broad range of land uses, including single and multifamily residential, country club, planned residential, and o�ce/commercial development. The Agency's Report to the City Council requesting the proposed amendment indicated that the amendment was necessary to add territory because: (1) there existed commercial property and residential units subject to being submerged, inundated, damaged or destroyed by flood waters and accompanying debris; (2) there is a lack of adequate flood control facilities designed to protect property, and to ensure access along roadways which cannot be remedied by private or govemmental action without redevelopment; and (3) there existed an economic dislocation throughout Project Area No. 1(Original and Added Territory), resulting from the clear and present danger of flash flooding, and threats to the public health, safety and welfare throughout the area. The boundaries of Project Area No. 1(Original and Added Territory), is illustrated on the following page. Since its inception, Project Area No. 1(as amended) has experienced a diversity of development. Residential development has been predominant. Specific projects include� One Quail Place, an apartment project with 384-units; Palm Lake Village, a 220-unit apartment project; Hacienda De Monterey, a 180-unit congregate care, Big Horn, a 600-acre custom home residential development and 99-bed nursing facility; and Canyon Cove, a 231-unit single-family development. Additionally, a 73-acre Civic Center project, which provides for recreation, law enforcement, and governmental facilities, has been completed. Project Area No. 1(Original and Added TeRitory) contains approximately 11,235 parcels totaling over 5,820 acres. Adoption of this Implementation Plan does not approve any of the projects detailed in this Implementation Plan. Projects to be undertaken by the Agency are subject to discretionary approvals by the Agency, as well as environmental clearance as determined by staff. Pursuant to Section 33490(a)(1)(B), adoption of an implementation plan shall not constitute a"projecY' within the meaning of the Califomia Environmental Quality Act (Public Resources Code Section 21000 et seq.), and inclusion of any project or program in the Implementation Plan shall not eliminate environmental analysis that would othervvise be required. ROSENOW SPEVACEK GROUP, INC. PAGE 7 RESOLUTION NO. 496 PAGE 11 OF 74 THIRD FIVE-YEAR IMPLEMENTATION P1�4N PALM DESERT REDEVELOPMENT PROJECTS ROSENOW SPEVACEK GROUP, INC. PAGE 8 Palm Oesert Redevelopment Agency ` Project Area No. 1 ��` RESOLUTION NO. 496 PAGE 12 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS GOALS AND OBJECTiVES OF THE AGENCY � The following goals and objectives address the blighting conditions still found within Project Area No. 1. These goals formulate the overall strategy for this Implementation Plan and will serve as a guide for the Agency's activities during the next five years. ■ Remove Blight. To etiminate and prevent the spread of blight and deterioration, and to conserve, rehabilitate, and redevelop the Project Area in accordance with the Redevelopment Plan and Annual Work Programs. ■ Encourage Stakeholder Participation. To encourage the cooperation and participation of residents, businesspersons, public agencies, and communiry organizations in the revitalization of the Project Area. • Encourage Private Sector Investment. To encourage private sector investment in the development and redevelopment of the Project Area. • Diversify and Expand Economic Base and Employment Opportunities. To promote the economic well being of the Project Area by encouraging the diversification and development of its economic base and employment opportunities. ■ Promote Compatible Commercial and Residential Development. To encourage the development of commercial and residential environments which positively relate to adjacent land uses, and upgrade and stabilize existing uses. ■ Facilitate Revitalization Of the Core Commercial Area. To provide for the revitalization and full development of the City's core commercia! area, to attain consistent image and character, and to enhance their economic viability. ■ Improve Community Facilities. To provide needed improvements to the community's education, cultural and other community facilities to better serve the Project Area. ■ Expand Resources for Land Development. To expand the resource of developable land by making underutilized land available for redevelopment. • Caordinate Revitalization and Community Development Activities. To coordinate revitalization efforts in the Project Area with other public programs offered by the City and other public agencies. • Improve Public Infrastructure. To provide needed improvements to the utility infrastructure and public facilities that service the Project Area. ■ Address Traffic Circulation and Parking Deficiencies. To improve traffic circulation through the reconstruction and improvement of existing streets in the Project Area. Provide for necessary public parking to address parking deficiencies. ■ Provide Affordable Homeownership Opportunities. To improve housing and assist low and moderate-income persons and families to obtain homeownership. ROSENOW SPEVACEK GROUP, INC. PAGE 9 RESOLUTION NO. 496 PAGE 13 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS • Increase and Improve the Community's Supply Of Affordable Housing. To promote the rehabilitation of existing housing stock where appropriate and promote devefopment .._ of quality, affordable housing. REIAEW OF THE PRIOR IMIP'LEMENTATION PLAN The Agency's second implementation plan, adopted in December 1999, delineated a series of non-housing and housing projects and programs for Project No. 1, the majority of which were initiated or fully implemented during the planning period. The Agency's achievements over the past five years include the following: � ati�.��. ! � tiA - ; �1. � � 1 } �� : � 1 / v '�,' 1 ->. . ��; _ ` �'S ��f� . .� Fred Waring Drive Widening: Widened F�ed Waring from 4 to 6 lanes including a Baja California Themed Walking Park. ROSENOW SPEVACEK GROUP, INC. PAGE 10 Entrada Del Paseo: Completed water, sewer, civil infrastructure and parking lot facilities. 4 '� J ♦ � �"�,. RESOLUT(ON NO. 496 PAGE 14 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS � t� �� .. .��'''� } •'cr iti v . ` � �,, t ,�r.' t� '. . `g t 5 .ti kJ'� 4.i y �q � ;� � � � i-6�'r��/' . Y��:3`'�� Fai�'r�,� .. tA'',�t_':� +ir+'iv.� r...:��'�c,.. '2 i�"i. .��'��lr'J3tr ....;m'v'aj�y�+��'��`.,r K �i�a =� ,. � . . .. ;L". , - - ° . _ �;�.. . . `► , . . . . , . , i . . f r .. � . - Below is a listing of additional Agency achievements completed over the past Five Year Implementation Plan period. ■ President Plaza III - Additional parking • Land Acquisition — Open Space ■ Palma Village — Utility undergrounding along Highway 74 ■ Develop Open Space Master Plan (Benefit to all Project Areas) • Fred Waring Strip Park — Pocket Park ■ CVAG Payments for I-10 Interchange • Improvements to the Multi-Agency Library • Placements of utilities underground at Magnesia Falls and Portola ■ Placements of utilities underground at Silver Spur Residential Area in partnership with residents • Public Parking at Living Desert • JFK Clinic • Mc Callum Theatre ■ Civic Center Park parking improvements ROSENOW SPEVACEK GROUP, INC. PAGE 11 Westfield Shoppingtown Public Expansion-Phases I and II: Construction of two Parking Garages totaling 1,000 added parking spaces, the expansion of Robinsons-May and Macy's along with an additional 40,000 s.f. of retail space including Barnes 8� Noble. RESOLUTION NO. 496 PAGE 15 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS � �. -� . .� � - . .. The following summary matrices for Project Area No. 1 describe the proposed non-housing programs and projects planned for the next five years (Table 1-1). Table 1-2 identifies those projects to be undertaken with bond funding. The matrices describe each proposed program, gives the projected time frame for implementation, identifies Agency goal's to be achieved, and identifies the blighting conditions the program will address. Anticipated program expenditures are based on projected tax increment revenue expected for FY 2004-05 to FY 2008-09 and bond funding. Greater or lesser funding may be available; depending upon actual assessed valuation changes in the Project Area No. 1. ROSENOW SPEVACEK GROUP, INC. PAGE 12 RESOLUTION NO. 496 Z �% g� � w Z O � Q � � ~ Z Z W W �a JO aw � � � � � W � � i~ � LL w � W � �C = c � J d T U N O� Q '. � y y O �U � N W � m Q N V m E � LL m E � � � �i D D M N N O O O y m G1 N N f w � � Y Y C rT, C � .-. 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PAGE 17 OF 74 � r ,w^ V Q a U Z d � O � C� Y W U � w a N O Z I.IJ � � RESOLUTION NO. 496 z cn 5w Z� o°� �� Z Z wC wC G C � a� � W i � W ¢� wW�y } LL w � ?w l l.. � 00 � � Q � � V � C � E � v �' � N � Y J O m 0 C > �oi y v C c Y C y r� C d � � a Ea �a W E >`c E c c m � g 'n `�i � m `� mF � � c �� c c g o c p �� O� j Z� a O J� 0� � �p � p 1p `m �- � V U ,L°� �� NNL� O� �m �� m�� oc5 r d �� ma V m U � i2 A � � � � � rn� � rna� b m A�rnm n y E�n E aa f- � rn'°a mr n�� $a �$ A p O y p��i p C� ��7 7 � O£ 0 7 O mna d�>a�v a�i�`c� �2d�Q � Ea �w0 Ecg¢�ww wa�wa � d U U �0 l0 C C A C � C � C � � OI � N � � Oi � � UI � N� C�V tA � E V1 � cv c �� avv $ vv E� ��°�eQm�= ��—_ e q�� E� e g m E g�� N� O J._ 7 N J Vi � N l0 va�rjU `oDjs ve oZ• N � � � D � N � .�. 10 7 - N V > � N YI `�� c� � m A E c� E c� S u t9 n c A u u A � u �0 8.Y g=`��°g=° g� �� W D J J �� W� J W D d� N .� y U y� m A Q7 U C U C � C � O U N m g N �� c � O � T � oY o ° �a � � � � � O « c e m E c > a � o � � a a �, E E � � ip t 3 a o, � "i : > oNd a o ' E3`c � � L p O � c 0 i P n � > e 7 4p 2 4 � t p O O0 0 : c 00 ,�� o 0 d E c o � �EL° � a 8 > u� o � "�8 � � �c.°>a 0 0 0 g x C ; O � � Ol E y m E V 'p y� l c E o � � g v ° W�a N O 7 y U = � � A _ � y U ` � � � � U W n ( g��'�� N U Q E C W J - d C m m O � � a mg _� U � � � s c V Y � � � m aar � y o, E o m � �Q E � � Q t � " O N N a c ; P E � �, m c � � c 3� � o H d PAGE 18 OF 74 N � u.i Q � U Z a � O � (9 Y w Q W a � O Z w � � RESOLUTION NO. 496 PAGE 19 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS Table 1-3 presents the Implementation Plan's preliminary five-year redevelopment activity budget for the Project Area No. 1(non-housing programs). Tax increment revenues provided a�e net of housing set aside amounts and taxing agency pass through payments. They were estimated based on a conservative increase in secured and unsecured assessed values with verifiable new development values added. The budget also contains other project revenues, including interest eamings and taxing agency reimbursements. Expenditures were based on the 2004-05 budget and proceeds from a previous bond issuance, and include bond debt service, required payments to Riverside County, and administrative costs. In total, the Agency anticipates expending $71,002,452 on redevelopment or non-housing programs that will benefit and address the needs of the P�oject Area. ROSENOW SPEVACEK GROUP, INC. PAGE 16 RESOLUTION NO. 496 z cn g� �W zo o� aa �~ zZ W w �a JO �c W G \ � W Q � ww }� W � ?w � � Q w � Qc = c �— J Q a N �a n �� ^ � y eo �� a �� `� � �� A � N N ^ � - � ^ � O n � p � J� � pi tY om ��_ 4 � b_N d M 0 � � p� o� �n�n p O ?j ^ � � ? v � � y n n m M o a o- � v R'i.SiS-_? u � �roy�pco�o n 1�( � f�I, �(1 Q � � p n O� O� O O Irp N � O� f�l � pN O p� N m d N A � � ' n � � �G V N mrn N n o � � ��o, =, ry n $ r �n �n a �n �o n � � n m O �� N �O YI � A � � N � �� gm � � �`'� �oE�E � �f � � d & � ¢ � a u� o ��r� 3 � � ��?Fo�� F o : _ m � � � � � PAGE 20 OF 74 = � � �� g � � �� y ry �nNN ii %I wB tV T �: — � � � � � � � �5 • � � t _ c� � ��•om•g� �� o R o� . n � �:. �� =.� � � � " �€ N O N � Q L � O Inj C � �) • ' > � mO�(I �(1 O� V�f � d N� N CO n N O O p � O O p? O O M L �'y...��n,mn a -,Q p 8 1•� r N w T. f1 M O, eD, �. O� ��. � � (V � O � t�I O O D � i� L � N ��!t N � C' T N ^ � N O h^ O O • A N O > i b � CD ^ O � m � � fD N, �J ' Yl. � � �$� � e�m� rj r� pi N � O OI d m n N O � f7 N O ' I� N O �p n�! f_�� N � N m O. ^ 01 N w a � o g �. ' �' h H �+ ] � � � y Q n H � O H � • O G � + O O O O O O O �� S � S � O ~ Y N � � N r <v !! � � ry ni o u ! ' � E 6 � a� �3,`�,`�'$ `�,Rov.ry i� g g o g��c 'r�� r �o� �� ri o 0 1�'1 � 10 � N �O N m � N � � � �� r ry ri o g n _ " - ,� s !q Q $� q s' �'�pi��na7�pSo�o25 r�- 0 25 8. ��. 2S � a�C � N 01 1�0 A N ID �� N N P � � � vj � O i� O p� � N N N V N� n N IY N > V � � c�. ' � r w r � � « p 0�1 m f"1 �f] r Q� Nf O f� � ��vp m^rn�000Nv Mp I N� N P, f'> N D� ' 10 Ol N � �� a -� ��N� � m��LLaa y� N a E � o ��b w ��°��'�� o� a�Nai w n=a Y � � o a o o � o o� o n � o ��. 8 $ +. a 8 8 3 0 "� Q N n�tI O O Lp � S� n � � p � N � N p ^ � ry N O O s G AC ' Lw � O • � � O y g w i u p � T C � C a � o '^ � � E � O �' Q � y� a� � oaE�� z � g� �3g °'� a�g • a do , �� a�$�ge� ��?Emrfi��m�p� � +�$ s t` c � m 'o- -�3 �'- oE • g_� �� s =L=� 3�e�c`i' "' �F9 i'��`��g��ss ��a43��Qo� ma o aaa 3�8d;�°8� � �� 3 S .;: A LL # $ S p g Q � '�m$^'wcgdr�a'9ui ; a��i'c`i�a�cS i�fi � � ��i s . U U ��a r W Q a U Z n. � � c� Y ll.l Q W a � O z w � O � RESOLUTION NO. 496 Third Five-Ye�ar Implementation Plan — Paim Desert Redevelopment Projects PAGE 21 OF 74 PROJECT AREA NO. 2 ' The City Council approved the Ordinance adopting Project Area No. 2 on July 15, 1987. Project Area No. 2 encompasses approximately 2,927 acres (6,195 parcels) of residential, hotel and resort, office, and undeveloped uses. Project Area No. 2 is generally bounded by the City limits and Interstate 10 to the north, a portion of the City limits to the east, Country Club Drive and Hovely Lane to the south, and Portola and Monterey Avenues to the west. The boundaries of Project Area No. 2 are i!lustrated on the following page. The Agency's Report to the City Council requesting the proposed Redevelopment Plan indicated that the area had been selected because of the existence of lots of inadequate size for proper usefulness and development; inadequate traffic circulation; numerous obsolete and dilapidated residential structures subject to mixed character and shifting of land uses; and above ground vottage transmission lines which are not only unsightly, but because of high winds in the area, a threat to public safety. The primary objectives of the Redevelopment Plan for Project Area No. 2 include the improvement of tra�c circulation; the undergrounding of utilities; the elimination of drainage deficiencies; the elimination of irregularly shaped and inadequate sized parcels of land; and the rehabilitation or removal of substandard buildings. The Redevelopment Plan also provides for the expansion of recreation facilities, open space, and other public improvements. Adoption of this Implementation Plan does not approve any of the projects detailed herein. Projects to be undertaken by the Agency are subject to discretionary approvals by the Agency, as well as environmental clearance as determined by staff. Pursuant to Section 33490(a)(1)(B), adoption of an implementation plan shall not constitute a"project" within the meaning of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.}, and inclusion of any project or program in the Implementation Pfan shall not eliminate environmental analysis that would otherwise be required. GOALS AND OBJECTNES OF THE AGENCY The following goals and objectives address the blighting conditions still found within Project Area No. 2. These goals formulate the overall strategy for this Implementation Plan and will serve as a guide for the Agency's activities during the next five years. ■ Remove Blight. To eliminate and prevent the spread of blight and deterioration, and to conserve, rehabilitate, and redevelop the Project Area in accordance with the Redevelopment Plan and Annual Work Programs. ■ Encourage Stakeholder Participation. To encourage the cooperation and participation of residents, businesspersons, public agencies, and community organizations in the revitalization of the Project Area. ROSENOW SPEVACEK GROUP, INC. PAGE 18 RESOLUTION NO. 496 PAGE 22 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS ROSENOW SPEVACEK GROUP, INC. PAG E 19 � Patm Desert Redevelopment A enc � �. �� PI'OieCt Arr�a Nln � g y RESOLUTION NO. 496 PAGE 23 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS • Encourage Private Sector Investment. To encourage private sector investment in the development and redevelopment of the Project Area. � ■ Diversify and Expand Economic Base and Employment Opportunities. To promote the economic well being of the Project Area by encouraging the diversification and development of its economic base and employment opportunities. • Promote Compatible Commercial and Residential Development. To encourage the development of commercial and residential environments which positively relate to adjacent land uses, and upgrade and stabilize existing uses. ■ Facilitate Revitalization by Acquiring Property to Provide Public Facilities. To provide needed improvements to the community's recreation, education, cultural, and other community facilities to better serve the Project Area ■ Improve Community Facilities. To provide needed improvements ta the community's education, cultural and other community facilities to better senie the Project Area. • Expand Resources for Land Development. To expand the resource of developable land by making underutilized land available for redevelopment. ■ Improve Public Infrastructure. To provide needed improvements to the utility infrastructure and public facilities that serve the Project Area. • Address Traffic Circulation and Parking Deficiencies. To improve traffic circulation th�ough the reconstruction and improvement of existing streets in the Project Area. Provide for necessary public pa�lcing to address parking deficiencies. ■ Provide Affordable Homeownership Opportunities. To improve housing and assist low and moderate-income persons and families to obtain homeownership. ` • Increase and Improve the Community's Supply of Affordable Housing. To promote the rehabilitation of existing housing stock where appropriate and promote development of quality, affordable housing. REVIEW OF THE PRIOR IMPLEMENTATION PLAN Desert Willow HoteUResort and Golf Course ROSENOW SPEVACEK GROUP, INC. PAGE 20 The Agency's second implementation plan, adopted in December 1999, delineated a series of non-housing and housing projects and programs for Project No. 2, the majority of which were initiated or fully implemented during the planning period. The Agency's achievements over the past five years include the following: RESOLUTlON NO. 496 PAGE 24 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS W r' # ��._.r#iM��«�M.�.., - ��. . . r. �_ ._:�"' " * `"' � _ �?Q s+M+��'r � � � , � , �� . . �p . !��s'' ' � .. -..:,�.,� • '�-'7'.� , ��t � ,� _ � . , �«`,�a' ' . � +�" '.. ' ' - . '�• Cook Street Improvements: Paid from Project Area No. 1 and Project Area No. 4 __�- - - California State University San Bernardino: Loan funding and land grant of 200 acres for first building of Palm Desert campus and University of Califomia Riverside satellite campus ROSENOW SPEVACEK GROUP, INC. PAGE 21 RESOLUTION NO. 496 PAGE 25 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS Below is a listing of additional Agency achievements completed over the past Five Year Implementation Plan period. • Acquire Land for Controlled Redevelopment of 5 Acre Parcels from Frank Sinatra Drive to Gerald Ford Drive — 145 acres purchased ■ Underground Unsightly Utilities (Projects 23, 24, 27) ■ Corporate Office Paric Redevelopment ■ Acquisition of land for controlled redevelopment of 170 acres ■ Education Facility Enhancement ■ Frank Sinatra Drive — Landscape Medians The following summary matrices for Project Area No. 2 describe the proposed non-housing programs and projects planned for the next five years (Table 2-1). Table 2-2 identifies those projects to be undertaken with bond funding. The matrices describe each proposed program, gives the projected time frame for implementation, identifies Agency goal's to be achieved, and identifies the blighting conditions the program will address. Anticipated program expenditures are based on projected tax increment revenue expected for FY 2004-05 to FY 2008-09 and bond funding. Greater or lesser funding may be available; depending upon actual assessed va4uation changes in the Projeet Area No. 2. ROSENOW SPEVACEK GROUP, INC. PAGE 22 RESOLUTION NO. 496 Z tn 5� � w Z � 0 � Q a H ~ Z Z W w � a JO a w � � � w W � W } � W ~ � � � w � W � � i� H Q d T U � OI Q ... 'O N � O � U E w a � � � Q N O � d E � � E H N � 10 T O N � L d C - U w a N O � O � - - C m r U � 0 0� m o� o rn E w m E a N�,--� mNmE �, �E u, v o E o E a v p C� _ y; C� D N C'� D N� m �0 7 O� N� O.� p C Q� 1O g n� nc a � � A � i r 7 N y� E 7••�• � � Cp�� w � � O ._ �U a � U U o ` V 'U .� l0 N r Q? lO y? L� V 2 d' E� c A a E � m a a� � n F O> y � yl L .k 41 V� V V l6 V�� l0 n V � l6 ( �p 7 p� O� U � C� a O Q C A O Q( C J y� N� 7 N�- N O�>` O D O y c� � r D U�� o� t � m E m w a a"i5w�_10 �� `a� c o a� � a�i � E � a N ,V c c o � n p Q 'U m U a LL �y C � d � C m � � � (Yp .0 N E � � � o � � U @ � ro �� o U ) W W O � � rn >>o i L o �-o V N 0 3 a�i Z � C m E n 0 m > d v E a E � N ,V N 7 E c' o d°� � E d a _ C � ,U _ O � .0 (J CUl � uy�i � y � �u2i LL y C W N� l0 2 �� C C � N C C > QI U E > > U ... � � n a a E � m m �� E c � o - � o,RaU a a,�aaL � A � m � � � � � � � 0 o f° o 0 0 o p o o` m�.> a o�i c°o a�i ° � w o E�� w U E� E h 0 g 0 N G a �3 �� Y d A m �O � A L � a � � 4 9E � o � e a � � E a � d o m � O R a L E c L > � a� � o � C � o � a � PAGE 26 OF 74 N ,W^ V Q a U Z a � O � C9 Y W Q � �7 7 0 w � � � — RESOLUTION NO. 496 N O U N N N Z � �U aw ZO O� Qa 1-- ~ Z Z W w �a JO � W � � � W W O w } � W F' i� � W � � �c = G F- Q a m � �--- 0 G� GNi m d N 7�i � � � � � � � � � � � � � � C y �C C �C C �C Em c y m E� m E« m E y q� ' w �n ' L� c c c �- c ^ E c � E �-� E � � E m � E m c�i E m° E w E s E� N�.. N� N.r N� V 0/ � � 'o.o o � o o � � o.� � � o � � � o � � c � L° oD �� nv'� `° av'� `° a�'� A n� ° m y o E o>> E o�� E o�? E o� d E E m � � u �� g �� g �� g � �= u � •� 9 2 s= a �'-' 2 � � � 2 d � � 2 c � � 2 D � a 2 N� lC a N C � a N C y n y C � a 1%1 �� E � N � 0 j d L l0 �� t 10 �� L�p f� y L A �0 m E � l0 c � c� � n 52 `c_ �p a 52 `c_ � a S� c� a Y c� `c_ A E � �� ' � m� � �� ' � �� ' � � � ouo�«m°�«�o�ym`ogc�o`omo �o V� O�'_ a U�._ � U�'_ � U� z a u� U D U m L u �.E c �o � E c �a �.E c m �.E c m ��a � io J d m_ J 10 J� J 10 J_ J 10 J_ J l0 J_ J _ J N � d m N � .S $ > i a m A t�a m m < < � � � E E E E E 0 0 0 0 0 d v d m m ..a _a ,_,v ,_,c a a�i d.= m.�' a�i �' a�i ?' �, � E � � � � � E > > � � E y E y E " E E > a+ > E m > E m > E� > E� d E� y c� c U� c s� c U� c U� � p� m o(�` o(� c� 0 2� o c � ot� c � a c� = u y A N�A N �� N � A 1r�0 N'l0 lry0 T'N � �.t d � y .^� �� m .CI .k y 'tl .k y C ,t �C 'C{ ,p .r � � C � � C � � C � � C � � C > � C C u U >'j U > j U >'j U >'j U E'j U 7 C N nn �nma �nda �mm� mn°7a �E a �Er rna n°rn°'an rnmaa o,ma � o�°'d'aci °'a'a c°�fi m� m m � i>� 5 i i`� � i i� �>>> �> i i i H n E$ o� E c� �� E s o n E$ o� E a�� E n c c m c o m c g a� c o m c o a� g� m w� � w U E� w U E� w U E� w U E� E V E� E E � o o q v 2 co � � cb �1 � N N £ N a e � � a n L �` o � $ S �a d A n� O p� U � a c 0 E > O G E 3 m o � ; 2 m N N � � C O O O rn m N y '� w � ac '.3 0 c c c � c o �' o � aEi O Y O p O Y a�ga� ra� dad d c V m c d m c 10 a�0i c �° � ,2 � .� , ,2 > � �2 c��o�i� ou� �;n� �n2Y�2� �2� 3 @ u C A` E� � � A O � C` �'� Or- 4� C O LL c a� c a � c a � Z a I�� 'v c 'o OYI 9 Q �$ �� y � .� d C � Q a a U 0 c � ' PAGE 27 OF 74 N w C� Q a CU Z a � 0 � c7 Y W U � W a � � Z w � O � RESOLUTION NO. 496 PAGE 28 OF 74 THIRD FIVE-YEAR IMPLEMENTATION Pl�4N PALM DESERT REDEVEL�PMENT PROJECTS Tabie 2-3 presents the Implementation Plan's preliminary redevelopment activity budget for the Project Area No. 2(non-housing programs). Tax increment revenues provided are net of housing set aside amounts and taxing agency pass through payments. They were estimated based on a conservative increase in secured and unsecured assessed values with verifiable new development values added. The budget also contains other project revenues, including interest earnings and loan repayments. Expenditures were based on the 2004-05 budget and proceeds from a previous bond issuance, and include bond debt service, required payments to Riverside County, and administrative costs. In total, the Agency anticipates expending $ 53,502,626 on redevelopment or non-housing programs that will benefit and address the needs of the Project Area. ROSENOW SPEVACEK GROUP, INC. PAGE 25 RESOLUTION NO. 496 Z tn Q F- �U aw Z � � � Q a H ~ Z Z W w �a JO aw �) �w Q � ll.� w �� w ~ � � � w LL �c = C H Q � m � ri � • a � i w � 0 � n N m PAGE 29 OF 74 ,.. . oogo 00 0 �io�'�o e n �nrf c�i o �D ri ni a eYi « n 9 O � � a � ^ O O q � M ' � r n � n a and vai � IV P') O 10 � � fV rl a w � � Zv c E � E �° U d � ° „ �. � � � . ' a � u � � a ;� W W • � � s �« • a � n ,�} � U V n o t0 l7 1� < ' � � Q ' N D O N N � r rn o :-° • � � � O � � a` > a n m �O v`�i Np Q O N 7 a N � m O Q O `-' taV N YN a � o °0 d g r� o n �o a� O O ��p O p 9 � ^ � N o a1� • e� tV N ♦ f! �y O V ' YI • A e� n � N � O V N O S O a` N D o • � � o g n N � nQ u iG � � O a` g � ♦ d ' Y/ ^ N N O 0G N N N `-' fv ID b � b � n o �p � m ^ 01 01 • � N MI �` 1!I Q Ql O� m a to n � ^ O ��p m rv) p � O O�i_ O�i, � 1D t7 O� ^ N b � b �+f � � — � � i c � � E o C � � o y � � � m.a y a o� y b i m o �� o A w i � �rng2.� c� � u U y W x c�� vui � � 7 �c = ��=�i � = f C W �y e rn � i � m� K W � C O �� W MI C') fa7p O 1� 1� �O � tll f0 � pO a � N Of a�0, �D t") S t'�f N�� t�D_ .^- p• . s IND. fq�l : ` n��"f O l9 O O m th m O YI e7 tp O OI � N O VI 1� O Of � t0 c0 A O OI O O�i IND � L � �n�� o�nu�v�oav> w� �000 �� N �^ �^ N � � � fV O t7 1D f� L A OI q a E o r « � c r io n o m ao m�o �o �o e� n i roo� n �nm��v o n $ n o w L 1� I� O� fV � � N��O t7 O f�l 1If O �� N♦ N � Q�1 t7 � O � O � � �� ' � • � ��; � j o e N aa • o � n c v � o o a • E -no�- oMm�n �o m u m�y �p o n + aD �t0 ' O OiN�O� O t0 10 N A� g�oNe v�i��in� a � �'R �� O i� � vi �'l tV � � ; L s" a i e N O _ � � u N O N N O�� O t�0 O n N � � � Cf I� t0 � eD ' O O� h O h EO N t^V O Q� O fNV �� O� � � H O p � a M t'1 � m N d N �� N � O �� Yf tV N I�f 9• � �a � o ' � : e � � ,2 E ' NC� p ppp8 �E ; m r t�D. O�i. O�i_ O� Oo t'I tmy0. � N W 01 p = � �" � h a A S O. �� tV <� N � f") N� � p � IO�D �> a O N fV ^ � ^ � • L � e ~ � 9 ) + , r a c � � e w � h I� p� N t0 8 S I� pO O !V O YI g t�Y Y N r O j OOOf �ON1� OOn O S O V) � • 10 0 q � � vi �i oi o.- o 0 o e� c n .o oi(QQ � � u o e i � (O � Q� Y I� Y�1 � 1n fV � � � O ■ OI � On1 Z i+ � O' N � N fJ fV � t"1 IY Yf A E 1 � � N • i t m E E � '` i �; A � i � o � .r � a i g � E�p` �� ma ' � a 5 y " i m U �'� c'^ o i � ^ p � rio ' �o�o`� N 5 Eo � m o �c� � z�EF i�2m'°?�y o �a � E °..' a o E y a � a aa m y y - n '0 Fm��'nc�� E� �a> �c„L°Y 'DA"o S ne a g $ L&' � � � ? � ° a 3 � n � a n � ° � � j x � � x LL V L n $� W .0 g y� rn n' � � o w A� = o�j o E � o o y o a n 9 � �� 2�m�'b�oa�u'SEaw cio�� c3�.�'vioSLL � • �n ? �tnLLfn �` c�Q� � w �ra � m m<p U � � i. � r� O o ��. �n�a o�E '' � x �ag �AZ�com w � � O� d V�' O W O o J W o ai c C� m m o • y i ac�n, ow¢�a`�¢v�(n =oc�a �oc��a��c� � m >> ■ Q � a ea U (j m � � • q � W � Q a U Z � � �'^ V Y w U Q > W n. � � Z 11 n � RESOLUTION NO. 496 Third Fiv�Year Implementation Plan Palm Desert Redevelopment Projects PAGE 30 OF 74 ii PROJECT AREA NO. 3 1 The City Council approved the Ordinance adopting Project Area No. 3 on July 11, 1991. Project Area No. 3 encompasses approximately 764 acres (668 parcels) of residential, office, and industrial uses. Project Area No. 3 is generally bounded by Portola Avenue and Cook Street to the west, the City boundaries 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 not a part of Project Area No. 3. The boundaries of Project Area No. 3 are illustrated on the following page. The Agency's Report to the City Council requesting the proposed Redevelopment Plan indicated that the area had been selected because of the presence of buildings and structures suffering from age and physical obsolescence, deterioration, and dilapidation. Also cited were conditions of defective design and characteristics of physical construction; faulty interior arrangement and exterior spacing; inadequate provision of light, ventilation, sanitation, and open space and recreation; and inadequate public improvements and community facilities. The primary objectives of the Redevelopment Plan for Project Area No. 3 include the elimination of conditions of blight; the improvement of traffic circulation; the elimination of drainage deficiencies; the rehabilitation or removal of substandard buildings; the stimulation of private investment; and the provision of needed public improvements and public facilities. The Redevelopment Plan also provides for the expansion of �ecreation facilities and open space. Adoption of this Implementation Plan does not approve any of the projects detailed in this Impleme�tation Plan. Projects to be undertaken by the Agency are subject to discretionary approvals by the Agency, as well as environmental clearance as determined by staff. Pursuant to Section 33490(a)(1)(B), adoption of an implementation plan shall not constitute a"project" within the meaning of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.), and inclusion of any project or program in the Implementation Plan shall not eliminate environmental analysis that would otherwise be required. GOALS AND OBJECTIVES OF THE AGENCY The following goals and objectives address the blighting conditions still found within Project Area No. 3. These goals formulate the overall strategy for this Implementation Plan and will serve as a guide for the Agency's activities during the next five years. • Remove Blight. To eliminate and prevent the spread of blight and deterioration, and to conserve, rehabilitate, and redevelop the Project Area in accordance with the Redevelopment Plan and Annual Work Programs. ■ Encourage Stakeholder Participation. To encourage the cooperation and participation of residents, businesspersons, public agencies, and community organizations in the revitalization of the Project Area. ROSENOW SPEVACEK GROUP, INC. PAGE 27 RESOLUTION NO. 496 PAGE 31 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS ROSENOW SPEVACEK GROUP, INC. PAGE 28 Palm Desert Redevelopment Agency ��,,�,.� Project A�ea No. 3 RESOLUTION NO. 496 PAGE 32 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS • Encourage Private Sector Investment. To encourage private sector investment in the development and redevelopment of the Project Area. ■ Diversify and Expand Economic Base and Employment Opportunities. To promote the economic well being of the Project Area by encouraging the diversification and development of its economic base and empfoyment opportunities. • Promote Compatible Commercial and Residential Development. To encourage the development of commercial and residential environments which positively relate to adjacent land uses, and upgrade and stabilize existing uses. ■ Facilitate Revitalization by Acquiring property to Provide Public Facilities. To provide needed improvements to the community's recreation, education, cultural, and other community facilities to better serve the Project Area ■ Improve Community Facilities. To provide needed improvements to the community's education, cultural and other community facilities to better serve the Project Area. ■ Expand Resources for Land Development. To expand the resource of developable land by making underutilized land available for redevelopment. ■ Improve Public Infrastructure. To provide needed improvements to the utility infrastructure and public facilities that service the Project Area. • Address Traffic Circulation and Parking Deficiencies. To improve traffic circulation through the reconstruction and imp�ovement of existing streets in the Project Area. Provide for necessary public parking to address parking deficiencies. ■ Provide Affordable Homeownership Opportunities. To improve housing and assist low and moderate-income persons and families to obtain homeownership. • Increase and Improve the Community's Supply of Affordable Housing. To promote the rehabilitation of existing housing stock where appropriate and promote development of quality, affordable housing. REVIEIN OF THE PRIOR IMPLEMENTATION PLAN The Agency's second implementation plan, adopted in December 1999, delineated a series of non-housing programs for Project Area No. 3. Improvements completed during this period included; construction of sidewalks on 42nd Street, start of construction of sewer and street improvements and Merel Street. �. -. . . .. . . The following summary matrix for Project Area No. 3 describes the proposed non-housing programs and projects planned for the next five years as well as identifies those projects to be undertaken with bond funding (Table 3-1). The matrix describes each proposed program, gives the projected time frame for implementation, ident�es Agency goal's to be achieved, and identifies the blighting conditions the programs will address. Anticipated program expenditures are based on projected tax increment revenue expected for FY 2004-05 to FY 2008-09 and bond funding. Greater or lesser funding may be available; depending upon actual assessed valuation changes in the Project Area No. 3. ROSENOW SPEVACEK GROUP, INC. PAGE 29 RESOLUTION NO. 496 U C d Q , Z � �U aw Z O 0 ~a H� Z Z w w � � a JO �c W G � � O � W }� �~ � LL W � W � �c = c � Q � M aI+f N a o 0 0 0 M O O O O N N � Y�'f N � l'f N M N M N (p m a� �U .0 � w � _ O � �� =E � �E`�q�d N m U m y.� V�� E d > v > � �v 'E—,� Q= Q� o �� m � n� n c� m E �« c E � � U ` > = y y � U V ,U U�� p L' � ` ,0 N U � - U � t7i1 .0 n� a'T �� E � � m� m m � > � � c � n � c.S2 f0 .Y a Q O Q�� O p u�i U o 7 m Y m� r Y C�'y �� m E � � c°� v t o 5� �� ca�w a �_ m .� U ta c a> E n 0 m � � � � ?' o � " E � ' E a c 7 /C V N H m E a m'_ E m m > E d �> E a U'•�' C V U a�� m � y LL �� y d U m� C • y � � � N � � O � � j � �0 � 61 � d � N L �.i� � t �>.Y 'x > m 19a �S y - L .� 'C �a n E � a� a� m n� o m aaaU� � °'aa ��m u > > > > > m � y � m �a t m °: 5' > > > o.S E a n� E c4 �� E c� c4 m E � '� � E E E�wU E�wwoau1O. � 4 v � � 0 v 0 0 N a e a c� N 9 Ca J � 0 � N m �U � � N C � .�' E � O � ` U O C C a '� f0 E > ; .0 � U � � 2 7 y y � � U C m b o Y � c m - f0 J my m � � 2 � m N LL C C � E � o aU Q o E E u� 0 v g � A a 41 O1 I r r :i �U �U �i � � w � ; C �C �1 -�' � � a E � i E y E y = E� = f m V N y w V y�� o� 0 3 � c�� i ca o �a o. o e E d E c� m E ��< V U V V � U.V V � t a� � U V� a `� �� t =a L° n'� c�`o � n'T A i `m � m a � E A a � 6 > > ��' � ��' c o c c�o `o c �� i � y N ' Y N :-. .-� � m� m E c c�o � E c � � J C J f0 J C J l0 _ d m 'S S U U m �n c c m d E E a n s o � > m � � � m� �� E � E � 7 7 y E y E a > E d > Fa a � C O � C F :�� U�2 S2� _ o 0 � m a N 61 plp tl ..�`. �U y N� y N E 7 � �. �. LL � �y C � � C L E,U =,C j U C> C rnE� oonm� rna�r a �a� a� ma� m mQ � m m m �a o'�'o o� c o o��' aEi c' m� g` m c� c � E�� w U E� w � � $ a c v c � 0 a 0 � e � � ?� � d 9 L O `� o� L C1 � O d � z a I 0 � O O W PAGE 33 OF 74 c� LAJ C� Q d U Z a � O � U Y W Q 1 W a � O Z W N O � RESOLUTION NO. 496 PAGE 34 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS Table 3-2 presents the Implementation Plan's preliminary redevelopment activity budget for the Project Area No. 3(non-housing programs). Tax increment revenues provided are net of housing set aside amounts and taxing agency pass through payments. They were estimated based on a conservative increase in secured and unsecured assessed values with verifiable new development values added. The budget also contains other project revenues, including interest eamings and loan repayments. Expenditures were based on the 2004-05 budget and proceeds from a previous bond issuance, and include bond debt service, required payments to Riverside County, and administrative costs. In total, the Agency anticipates expending $ 8,248,124 on redevelopment or non-housing programs that will benefit and address the �eeds of the Project Area. ROSENOW SPEVACEK GROUP, INC. PAGE 31 RESOLUTION NO. 496 Z c� g� aw z� o� � Qa I F-. �- ,ZZ W w �a JO �w �> � W W� W � � > ~ � � W � w � � � � � � � � � - �a 0 b . — i • � ., � � �p ��p �p g � �O a0 O � ~ �p � � ,� q OI N � T � N p� � � O tD 0 � 10 fD tD Oi � N � `-' �' N O O N N a`� N O 7 A a0 N 1� h Of P a0 Q1 O e $ $ � � � � N O O N N d N � q � � N O � N N � tD f�p (NV o `8 a N eV fV a`� N � n OO [�V t�0 a a o ao a+ io O p f0 N, N h �� N �ff tD � � N fV ar � � o�i �� O Y Ny � N �� rD � p N V N d N � PAGE 35 OF 74 ,�� , s S �K�� Y �� a� �� s � � � � w � �� O � � n O N � N m h N � � � m ] s � c E °� 9 > � 10 a c E E � i � a� m oe � a � � N Gi i N Q � d � K Y ci�W �� ! p� 7 � C � F- �!2 F�- Z i Z � � � 7 rn � �$ � W � � 01 (4p7 O � pO I� N �ff N a�D �('� � �l �D 1�ooeppp N 1M�D O N� N O� N� ^ N !�'1 M (V .- fV � rnp�op� �8 ��n��n o Oi V a0 '� O fD N W r� n W� f�� p�j p p �� (�p � < N 11'1 ♦ N n� IV v O f�V �� a0 I� 00 (D 1� � h O V N tD a0 � � oa� NQp�^N � 7S N O N� ��fl O N N a0 � lN+l �Q� `��aa�o`�i� � N �� h ��r�`�i�a me� a � V N O � a 1 i i v`Oi�°�°��$8�$0 °� � Q1 N N) f0 O O� O 7 �'N��Bg��i o � O O N O � N i 1 e � o � a N � O • n � � a �n E i �o�°'E�og�� I m y T(y � W U i � '« � � LL !_' C X y' ~ i �'mL��—Va W m � �i 2� mO�Z.� o ow�Ea � E � � �� o�E$Q�� ui i aNa��a`S�i��o � �7 a U ( �e �r �� r 1 g I Ic � C i � > � � ' d N d � Y � £ Z � ' m � 4 � x ��'g 8 w 1 (n ; J � � O A � � E o n � ' da o d d � 8� U � c � E �Re � o � I Q�a�cTz� ° s .i D L � � M w'^ V Q Q. U Z a � � C7 Y W U � W d � � Z w � O � RESOLUTION NO. 496 Third Fiv�Year Implementa�tion Plan Palm Desert Redevelopment Projects PAGE 36 OF 74 The City Council and the Riverside County Board of Supervisors approved the Ordinances adopting Project Area No. 4 in July of 1993. Project Area No. 4 encompasses 2,260 acres of predominantly low-density residential land use with small areas of commercial (10 acres) and public uses. At the time of adoption only 637 acres of this area was located within the City of Palm Desert. The remaining portion of the Project Area was located in an adjacent area of the unincorporated territory of the Counry of Riverside, which the Ciry of Palm Desert later annexed. The boundaries of Project Area No. 4 are illustrated on the following page. Project Area No. 4 generally includes the territory bounded on the west by EI Dorado Drive running southward to the City of Indian Wells boundary line, then eastward to the boundary point between the then County ter�itory and the City of Indian Wells. The westem boundary follows this boundary line southward to Fred Waring Drive. Fred Waring Drive is the southem boundary with Washington Street being the eastem limit. Country Club Drive is the northern boundary running from Washington Street westward to EI Dorado Drive. Project Area No. 4 was characterized in the Agency's 1993 Report to the City Council as containing a variety of conditions, which adversely impacted the economic viability, as well as the heafth and safety of persons and praperties located within Project Area No. 4. In some of the unincorporated portions of Project Area No. 4 development occurred in a seemingly unrestricted and unplanned manner. Streets were, and are still, unpaved and residential dwellings have been developed without regard to standard design and setback requirements. Further, Project Area No. 4 was characterized by blighting conditions such as the lack of and/or inadequate public infrastructure improvements, including a poorly designed circulation system; aging and deteriorating housing; and inadequate public, cultural, and recreational facilities. The primary objectives of the Redevelopment Plan for Project Area No. 4 include the improvement of the traffic circulation system and freeway access; the elimination of drainage de�ciencies; the provision of needed community facilities; the rehabilitation or removal of substandard buildings; and the rehabilitation of the existing housing stock where needed. Adoption of this Implementation Plan does not approve any of the projects listed herein. Projects to be undertaken by the Agency are subject to discretionary approvals by the Agency, as well as environmental clearance as determined by staff. Pursuant to Section 33490(a}(1)(B), adoption of an implementation plan shall not constitute a"project" within the meaning of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.), and inclusion of any project or program in the Implementation Plan shall not eliminate environmental analysis that would otherwise be required. ROSENOW SPEVACEK GROUP, INC. PAGE 33 RESOLUTION NO. 496 PAGE 37 OF 74 TH1RD FfVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS ROSENOW SPEVACEK GROUP, IIVC. PAGE 34 s Palm Desert Redevelopment Agency ' Project A�ea No. 4 :,� � ....�.F- RESOLUTION NO. 496 GOALS AND OBJECTNES OF THE AGENCY PAGE 38 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS The following goals and objectives address the blighting conditions still found within Project Area No. 4. These goals formulate the overall strategy for this Implementation Plan and will serve as a guide for the Agency's activities during the next five years. ■ Remove Blight. To eliminate and prevent the spread of blight and deterioration, and to conserve, rehabilitate, and redevelop the Project Area in accordance with the Redevelopment Plan and Annual Work Programs. ■ Encourage Stakeholder Participation. To encourage the cooperation and participation of residents, businesspersons, public agencies, and community organizations in the revitalization of the Project Area. ■ Encourage Private Sector Investment. To encourage private sector investment in the development and redevelopment of the Project Area. ■ Diversify and Expand Economic Base and Employment Opportunities. To promote the economic well being of the Project Area by encouraging the diversification and development of its economic base and employment opportunities. ■ Promote Compatible Commercial and Residential Development To encourage the development of commercial and residential environments which positively relate to adjacent land uses, and upgrade and stabilize existing uses. ■ Facilitate revitalization by acquiring property to provide public facilities. To provide needed improvements to the community's recreation, education, cu�tural, and other community facilities to better serve the Project Area • Improve Community Facilities. To provide needed improvements to the community's education, cultural and other community facilities to better serve the Project Area. ■ Expand Resources for Land Development. To expand the resource of developable land by making underutilized land available for redevelopment. ■ Improve Public Infrastructure. To provide needed improvements to the utility infrastructure and public facilities that serve the Project Area. ■ Address Traffic Circulation and Parking Deficiencies. To improve traffic circulation through the reconstruction and improvement of existing streets in the Project Area. Provide for necessary public parking to address parking deficiencies. ■ Provide Affordable Homeownership Opportunities. To improve housing and assist low and moderate-income persons and families to obtain homeownership. ■ Increase and Improve the Community's Supply of Affordable Housing. To promote the rehabilitation of existing housing stock where appropriate and promote development of quality, affordable housing. � ROSENOW SPEVACEK GROUP, INC PAGE 35 RESOLUTION NO. 496 PAGE 39 OF 74 THIRD FIVE-YEAR �MPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS �nEw oF TMe PwoR �nnP�nenra�orr �an The Agency's second implementation pian, adopted in December 1999, delineated a series of non-housing and housing projects and programs for Project No. 4, the majority of which were initiated or fully implemented during the planning period. The Agency's achievements over the past five years include the following: ■ Construct wall along Hovely Avenue ■ Payments to CVAG for I-10 Interchange • Acquisition of land for regional park/design of regional park ■ Design and start of construction of storm drain improvements — Warner Trail ■ Loan to University of Califomia Riverside for graduate campus ■ Storm Drain Improvements The following summary matrix for Project Area No. 4 identifies those projects to be undertaken with bond funding within Project Area No. 4(Table 4-1). The matrix describes each proposed program, gives the projected time frame for implementation, ident�es Agency goals to be achieved, and identifies the blighting conditions the programs will address. Anticipated program expenditures are based on projected tax increment revenue expected for FY 2004-05 to FY 2008-09 and bond funding. Greater or lesser funding may be available; depending upon actual assessed valuation changes in the Project Area No. 4. ROSENOW SPEVACEK GROUP, INC. PAGE 36 RESOLUTION NO. 496 Z i� �U aw Z O � � d � ~ Z Z W WC � ` a JO aw � � � W W� W }� �� w � O �Q� _ � � Q d � � � � M h h O �f b N � � V N N g C y � � C D y N S v N y E N : a C � O F � � o � � � d U � � o o � ` 7 y U y V�' 6 y � 7 ? 7 o ,�� nE - c t W y E % � a lE V " 3 j N C = �j O j � E C � lU0 J _J � C J N �U � d U �y ❑ � C � �o a � y c �a � c U i 2 ,� � � c V ... U V °' � �° �a�- 0 o d r E � >}>o j L O V « N ar �U R � T r C � r E �o � U > °' 0 0 ma � E 0 0 0 0 0 0 O A O N � M � N d E Ul N� N C = C = C m �EdC ��p ac� � y�� C y� (j C N � C O.� O C O O 0 C p= C E c '7� � E c �7 � � � � c V U ` � .V U ` � � .0 .0 C a�'� 2a'��`� 2 2a � � � '�n c � n �n g � � n E 'u W r �o E � ��n � c� La � c c R � c 7 p� �C 7 p� � � C Q C� � Q C� O O Q O C N:-, b Y d:.. .-. 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Tax increment revenues provided are net of housing set aside amounts and taxing agency pass through payments. They were estimated based on a conservative increase in secured and unsecured assessed values with verifiable new development values added. The budget also contains other project revenues, including interest eamings and loan repayments. Expenditures were based on the 2004-05 budget and proceeds from a previous bond issuance, and include bond debt service, and administrative costs. In total, the Agency anticipates expending $ 25,757,114 million on redevelopment or non-housing programs that will benefit and address the needs of the Project Area. ROSENOW SPEVACEK GROUP, INC. PAGE 38 RESOLUTION NO. 496 Z :� g� �w z� 0 � � � H ~ Z Z W w � a JO a� � W �' � W� W } � W ~ >� � W � Q.' � � � a �N O fi � � `a Q� a n a o Y f7 N O p a$ a o • � N �O o a N Q � « g a` 7� C b 8 O {7 N b � Q O an � h y O O N Q O aN n � a M N �� m M � N � i < � � � � C � a E Q � S � � 00 0 0 0 0 N �A N ' o(ooaoo 0 S h O� O O �G C C P O� O O � O � N �^. O o � a �n E N Y M N � C fV E ` o d � • ~ e • � � c ° d � K x W W �a � � w U V 7 O m t0 O � O � m' OI � � f� N 10 I� O! 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M a � � O O E • o ^ »_ :o s— E � r + w � � L Y u � � a c '� .• a a �` o� e v t c • • � e « t p • �p £ �y � a W 9 C � � RE O � � � w � 0 p L Y ~ u a C C O � e' • > � V 3 ° S v CY � D � "E M : M � n ^ 7 9 E • � 9 u c � i C je �a V M O � :Y a� as q 6 > � O c � 7 � O � � e f °u _ r q 9 LT � u � • � • E .� n O 9 C L � O y � + � � M c •3 4 . +s � � • w � Q • $ w u � � � C . � � Q � U Z a � � �,^ V Y W U W � � 0 Z W � � � RESOLUTION NO. 496 PAGE 43 OF 74 THIRD FIVE-YEAR IMPLEMENTATION PLAN PALM DESERT REDEVELOPMENT PROJECTS As detailed in the Introduction of this Plan, the Agency is required to produce an Implementation Plan every five years. After adoption of the first implementation plan, a new plan is to be adopted every five years either in conjunction with the housing element cycle or the implementation plan cycle. Implementation Plan A�dorydon Prooess Each Implementation Plan must be presented and adopted at a duly notice public hearing of the Agency. Notice of the public hearing must be conducted pursuant to this Section 33490 of the Law. The Notice must be published pursuant to Section 6063 of the Government Code, mailed at least three weeks in advance to all persons and agencies that have requested notice, and posted in at least four permanent places within the Project Area for a period of three weeks. Publication, mailing, and posting shall be completed not less than 10 days prior to the date set for hearing. The Agency may amend the implementation plan at any time after conducting a public hearing on the proposed amendment. Mid-Term Implem�ntafion Plan Review Process At least once within the five-year term of this Implementation Plan, the Agency must conduct a public hearing and hear testimony of all interested parties for the purpose of � reviewing the redevelopment plan and the corresponding implementation for each redevelopment project. This hearing must take place no earlier than two years and no later than three years after the adoption of the Implementation Plan. ROSENOW SPEVACEK GROUP, INC. PAGE 40 RESOLUTION NO. 496 City of Palm Desert Palm Desert Redevelopment Agency • ��. �'�,� ��►�:"* � , .. �,. .,; :,.<. . �;. � � • . ;,. • �--� � �' � ; ��.� ; .. . � � i -: �- ' : Appendix 1-Five Year Implementation Plan-Housing Component Ten-YearAffordable Housing Compliance Plan (2004-05 through 2013-14} Draft Plan Reviewed byAgency: November 18, 2004 Palm Desert RedevelopmerYt Agency CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, CA 92260 RESOLUTION NO. 496 Af�'ior�c#able Ho�esir�g Str�be�/ & Con�pl� Plan Palm Desert RedevelopmentAgency PAGE 45 OF 74 Executive Summary .................................................................... 1 Introduction ................................................................................. 4 Legal Requirement for Meeting Agency's Housing Obligations............4 Compliance with AB 637 and SB 701 ........................................................5 Summary of City's Housing Obligations ......................................................6 The Stipulation Regarding Affordable Housing ..........................................7 Objectives of the Housing Strategy ..............................................................7 Methodology and Data Compilation .............................................................8 Aggregation of Affordable Housing Units Among All Project Areas........9 Affordable Housing Provided Outside of the Project Areas ......................9 HousingGoals ................................................................................................9 Redevelopment Plan Limitations ................................................................10 Affordable Housing Production Needs ..................................... 12 Definitions and Data Compilation ...............................................................12 Inventory of Existing Deed-Restricted Units .............................................15 Affordable Units Required ...........................................................................16 Past Inclusionary, Current Five 8 Ten Year Inclusionary Unit Need........17 Replacement Housing Productlon Needs ................................ 18 Estirnated Housing Fund Resources ........................................ 19 Housing Set Aside Tax Increment Funds ..................................................19 Targeting of Housing Fund Expenditures ..................................................20 Income Categories Assisted .....................................................................20 Family and Senior Housing ......................................................................21 G+RSCPAIAOST17D0YAPPW�FIOUSIN0004PUANCBIAN 10D�PPUOEST1f0U9N(PLANFlWIL 11-0OOC RESOLUTION NO. 496 PAGE 46 OF 74 Projected Housing Fund Expenditures .....................................................22 Potential Affordable Units by Year .............................................................23 Other Funding Sources for Housing Programs ........................................23 Proposed Affordable Housing Initiatives ................................. 23 Planning Period Housing Projects and Programs ....................................24 Housing Fund Expenditures 1999/00 through 2003/04............ 25 Housing Stipulation ................................................................... 27 Housing Element Consistency .................................................. 28 RESOLUTION NO. 496 , . . : . . .� • � �- .� : . . : «- Palm Desert RedevelopmentAgency PAGE 47 OF 74 Providing afforciable housing has become an ever-increasing problem for communities within the State of Califomia. The City of Palm Desert is e�eriencing a substantial demand for housing with an ever-increasing demand for affordable very low, low and moderate income housing. To address this need and to better utilize both physical and financial resources, the City of Palm Desert ("City") and the Palm Desert Redevelopment Agency ("Agency") have pr�epared an Afforcfable Housing Plan and Strategy. This strategy is focused on meeting or exceeding the inclusionary housing unit production requirements of Califomia Community Redevelopment Law ("Redeveiopment Law"), the Stipulation regarding affordable housing and the Regional Housing Needs Allocation (RHNA) new construction figur�es. This document, the Affordable Housing Plan and Strategy serves as the Agency's Five Year (2004/0�2008/09) Implementation Plan's Housing Component and Ten Year (2004/05-2013/14) Housing Compliance Plan. Community Redevelopment Law The Housing Strategy serves as a blueprint for cuRent and future /�qency adivities to meet its low and moderate income housing responsibilities. The Housing Strategy presents a summary of the Agency's affordable housing programs. It also presents a reconciliation of the Agency's replacement housing obligations and provides a forecast of the number of housing units that are or will be needed to be reserved and affordable to very low, low and moderate income persons or families over the next ten years (fiscal years 2004/05 through 2013/14) and until the termination of the Redevelopment Plans. The Agency's efforts to produoe affordable housing over the last 10 years (1994/95 through 2003/04) have resulted in the Agency exoeeding its 10 year afforriable housing unit requirements. The Agency's prior 10-year inclusionary housing unit need was established by a detailed review of housing units built or substantially rehabilitated in the Project Areas from adoption through June of 1994 and projections of units to be built or substantially rehabilitated from July of 1994 through June of 2004. It was estimated that the prior 10 year unit need was for 868 affordable housing units of which 354 were required to be spec'fiically restricted for very low-income households. During this period, the Agency successfully created or facilitated the restriction of 1,349 units affordable to low and moderate income households with 594 of these reserved for very low income households. The Agency's 10 year production of affordable units has created a surplus of 481 units which Redevelopment Law allows the Agency to carry over to the next 10 year period (2004/05 - 2013/14). Additionally, the Agency is currenthr developing and/or supporting private projeds that I will resuft in the r�estriction of 134 new affordable units. Projections for the current 10 year period, 2004J05 through 2013/14 have established an inclusionary housing unit need of 899 affordable units, of which 361 must be restricted as affordable to very bw income households. The 899 unit figure does not ROSENOW SPEVACEK GROUP, INC. PAGE 1 RESOLUTION NO. 496 PAGE 48 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY account for the Agency's carry over units and those new units currently undervvay. Therefore, after accounting for these credits and units undenivay the Agency's `— remaining 10 year unit need is for 284 affordable units, 95 of which must be restricted for the very low income. Stipulation On May 15; 1991, the Superior Court of the State of Califomia for Riverside County entered a Final Judgment in oertain legal actions between the Westem Center on Law and Poverty, Inc, the Califomia Rural Legal Assistance, Jonathan Lehrer-Craiwer and the City and Redevelopment Agency of Palm Desert (the "Parties"). The Judgment incorporated terms of a Stipulation for Entry of Judgment in the Case (the "Stipulation'7. The Stipulation and subsequent amendments imposes certain ongoing obligations on the Agency with respect to afforclable housing within the City. It also provides that the Court continue to have jurisdiction over the matters covered in the Stipulation for the purposes of enforcement of the Stipulation. The Stipulation requires that the Agency develop, rehabilitate or acquire or cause to be developed, rehabilitated, or acquired, within the City, afforciable housing units in specfic amounts during specified periods. Current accounting indicates a Stipulation Produdion need of 1,205 affordable units by 2006. The Agency has provided 1,152 units leaving a deficiency of 53 units, which must be produced by 2006. Housing Element RHNA Housing Units The Housing Element of the City of Palm Desert's General Plan establishes a housing ` program that sets a�year sd�edule to achieve goals and objectives. The Housing Element identifies suitable sites for the development of housing units, quantifies the number of units to be created by inoome level, and estimates the amount of funds available for housing programs to meet the RHNA figur�es. Additionally, the Housing Element identifies additional policies and programs to meet the housing needs of Palm Desert. Current RHNA housing unit numbers cover the period of 1998 through 2005. The total unit need for this period is 443 units of which 229 must be provide for very low, bw and moderate income persons or households. To date the City has provided 127 units leaving a deficiency of 102 units to be provided during the next 13 months. Housing Programs and Projects The Ciry and Agency are proactive in ensuring that afforcJable housing is developed within the four Redevelopment Project Areas and citywide. Projects and programs antiapated to address the City and Agency's housing responsibilities include: ROSENOW SPEVACEK GROUP, INC. PAGE 2 RESOLUTION NO. 496 PAGE 49 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY ♦ Affordable Housinq Proiects underway: Palm Village Apartments, - ReconstructioNSubstantial Rehabilitation af 12 units and construction of an additional 24 twa�edroom units. Setf Help Housing-Mer1e Str�eet — will produoe 14 � three�eciroom ownership dwellings, all reserved for very law income househokis. ♦ New Construction of Ownershiq Units: Constnaction of 95 large family single family homes on an 18 acre site. The three and four bedroom homes will be reserved for low and moderate income househokis. ♦ Development of Senior Citizen Housinq: The Agency will pursue the development of 26 new se�ior housing units within the community. This project is targeted to reserve 13 affordable units for the very low income and 13 units for the low-income senior. ♦ SinQle Familv Rehabilitation: The Agency will continue its successful single- family rehabilitation program. It is estimated that 30 units of affordable housing will be assisted during the next five years. ♦ Multifamilv Rehabilitation: The Agency will purchase and rehabilitate suitable rental properties, thereby providing affordable units. 30% of the total number of units are to be for bw and very low income persons of which not less than 50°/a of these units will be very bw-income afforciable housing units. ♦ Provide Developer Incentive — The Agency will provide financial assistanoe were necessary and appropriate to secune restricted covenants on privately development new single family and mu�i-family housing units. _ Programs identfied in the City's Housing Element that are anticipated for implementation during the next ten year period that are currently under development by Agency staff ar�e: MortQaqe Subsidv Proqram - Very low, low and moderate inoome owners of single�iamily homes, condominiums and mobile homes may receive assistance if their mortgage payment exceeds 30% of their income. Assistance will be provided directly by the Redevelopment Agency. In exchange for the assistance, the home owner will be required to enter into a recorded agreement with the Agency assuring afforYfability of the home for 45 years. ♦ Rental Subsidv ProQram - Owners of single-family homes, condominiums, mobile homes or apartments who r�ent to very low, low, and moderate income tenants may receive direct rental payment assistance from the Agency. The owner must, in exchange for the assistanoe, enter into a recorded agreement with the Agency assuring affordability of the r�ental units for 55 years. ♦ Homebuvers ProQram - The Agency will provide assistance to very low, low, and moderate income persons in the form of low interest loans to be applied to down payment, non-recurring closing costs, reduction of the interest rate on the first trust deed, or any other cost associated with the purchase of a home. ROSENOW SPEVACEK GROUP, INC. PAGE 3 RESOLUTION NO. 496 PAGE 50 OF 74 AFFORDABLE HOUSING STRATEGY 8� COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY This document is the 2004/05 Afforciable Housing Plan and Strategy ("Housing Strategy°) for the City of Palm Desert and the Palm Desert Redevelopment Agency and serves as the Housing Component for the Agency's Five-Year (2004/05-2008/09) Implementation Plan and Ten Year (2004/05-2013/14) Afforclable Housing Compliance Plan. This Housing Strategy acoompanies the Agency's Five Year Implementation Plan, which was adopted along with this Housing Strategy by the Agency following a duly noticed public hearing held on November 18, 2004. This Housing Strategy reviews the need for affordable housing within the community as detailed in the City's General Plan's Housing Element.'It also addresses issues related to the Agency's obligations for affo�dable housing agreed to under the Stipulation for Entry of Judgment in Case No. Indio 51143, entitled Citv of Palm Springs v. All Persons tnte�ested on May 15, 1991 and the subsequent 1997 and 2002 Stipulation Amending the 1991 Stipulation for Entry of Judgment ('The Stipulation Regarding Affordable Housing"). Serving as the required housing comptiance pfan, this Housing Strategy covers collectively all of the Agency's Redevelopment Project Areas ■ Project Area No. 1(Original and Added TerTitory) • Projed Area No. 2 ■ Projed Arsa No. 3 ■ Projed Area No. 4 The City Council of the City of Palm Desert established the Agency in October of 1974. The Agency's first redevelopment project area, Project Area No. 1, was adopted in July of 1976 and subsequently amended in 1982 to add territory. Since then, the Agency has adopted three (3) additional redevelopment project areas; Project Area No. 2— established in 1987; Project Area No. 3— established in 1991; and Projed Area No. 4— established in 1993. The Agency has accomp{ished numerous redevelopment, development, and infrastructure projects that have nevitalized many properties within all of its Project Areas. The Agency has also made a substantial effort to improve and increase the City's supply of affordable housing. The Agencys four (4) adopted redevelopment project areas encompass an estimated 11,771 acnes of the City's incorporated territory. L,e9al Requirame�t for Meetin9 Agenc�'S F'lousin9 OW�tio� The required housing portion of the Implementation Plan (Housing Strategy) serves as a blueprint for cu�rent and futune Agency activRies to meet its low and moderate income ' The City's Housing Element was adopted by the City Council on February 14, 2002 and certified as conforming to State Law by the State Department of Housing and Community Development on May 22, 2002. ROSENOW SPEVACEK GROUP, INC. PAGE 4 RESOLUTION NO. 496 PAGE 51 OF 74 AFFORDABLE HOUSING STRATEGY 8 COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY housing responsibilities. This Housing Strategy presents a summary of the Agency's inclusionary and replacement housing programs as mandated by Sedions 33413(a) and (b)(4) and 33490(a)(2) and (3) of the Califomia Community Redevelopment Law, Health and Safety Code Section 33000 et. �.. Specfically, it presents a reconciliation of the Agency's replacement housing obligations. It provides a forecast of the number of housing units2 that are or will be reserved and affordable to very low, low and moderate income persons or families over the ten year planning period (fiscal years 2004-05 through 2013-14) and until the termination of the Redevelopment Plans.' This Agency plans to facilitate the creation of the required number of afforclable housing units within this timeframe. Compliance with AB 637 and SB 701 This Housing Strategy is consistent with recent changes enacted into Redevelopment Law pursuant to Assembly Bill 637 (Lowenthal) and Senate Bill 701 (foriakson). Among these signficant amendments are: ➢ 55/45 Year Minimum Affordability Periods: Effedive January 1, 2002, all units assisted by the Housing Fund including replacement housing units and production housing must be affordable for 55 years (rental units) or 45 years (owner-occupied units). Units assisted, rehabilitated or constructed prior to January 1, 2002 may have shorter time limits. Y Substantial Rehabilitation: Between January 2002 and January 2006, a redevelopment agency is only required to include in its housing produdion obligations those numbers of units generated by the substantial rehabilitation of multifamily units assisted by the agency. Outside of this time frame, substantially rehabilitated dwelling units means substantialty rehabilitated mufti-family rental dwelling units with th�ee or more units regardless of whether ther�e is agency assistance, or single famiy units substantially nehabilitated with agency assistance. y Targetinq Housin4 Fund E�enditures: Effective January 2002, the Redevelopment Law now requires that Housing Fund assistance during the Implementation Plan period mirror the community's needs, both in terms of the income categories needed, and the number of family (versus senior) housing Z The Redevelopment Law defines Affordable Housing Cost as: - Very Low - Not more than 30% of 50% of the County median household income. - Low - Not more than 30% of 70% (or 60% for rental projects) of the County median household incame. - Moderate - Not more than 35% of 110% (or 30% of 120% for rental projects) of the County median household incorne. 3 The Redevelopment Law defines and limits income categories as follows: Very Low Income - persons or households whose gross income dces not exceed 50% of the area's median income; Low Income - persons or households whose gross income are greater than 50% but do not exceed 80% of the area's median income; Moderate-Income — persons or households whose gross income are greater than 80% but do not exceed 120% of the area's median income. ROSENOW SPEVACEK GROUP. INC. PAGE 5 RESOLUTION NO. 496 PAGE 52 OF 74 AFFORDABLE HOUSING STRATEGY 8 COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY needed 4(The Redevelopment Law provides an additional five years to meet this requirement if an agency deposited less than $2 million over the first five years of '— the ten year period covered by the housing portion of an implementation plan.) SummarY af Ci�s Housil9 Ob�ations State law requires each local city and county in the state to have an adopted comprehensive general plan for the community's physical development. The State also mandates that one of the required elements of the general plan is a housing element The state law also requires that the housing element of a communiry address the housing needs, both existing and projected, of all economic segments of the communiry. The housing element must address land use and regulatory issues that will provide opportunities for the development of all types of housing. It establishes the community's goals and objectives with regarci to housing production, rehabilitation, and conservation to meet the identified needs. The Housing Element also defines the policies and programs that the community will implement to achieve the stated goals and objectives. The City's Housing Element must provide the following information or detail the adions neoessary to meet spec�c outlined goals: %% Quantify pro}ected housing needs of the community utilizing the regional housing need allocation model ("RHNA'�, produoed by the Southem Califomia Association of Govemments ("SCAG") � Make a diligent effort to achieve public participation in the preparation of the document. Y Assess housing needs and analyze r�esources and constraints. Y Estimate amount of funds available for housing programs (project redevelopment housing set-aside tax increment funds and other souroes of housing funding) ➢ Establish a housing program that sets a 5-year schedule to achieve goals and objectives ➢ City's Housing Program must identify adequate sites-with appropriate zoning, development standards and public facilities that: ♦ encourage development of housing for all income levels; ♦ provide for development of all housing types (multifamily rental, mobile home, farm worker, fadory-built, and emergency shelters; ♦ assist in development of housing to meet needs of low and moderate- income households; ` Allocation of a redevelopment agency's tax increment housing set aside dollars must at a minimum be allocated to very low and low income persons at least in the same propo�ion to the very low, law and moderate income unit need identified in the community's housing element (as established by the regions housing needs allocation}. Additional{y housing set aside funds allocated for person 65 years of age or older must not exceed the proportion of their number to the general population. ROSENOW SPEVACEK GROUP, INC. PAGE 6 RESOLUTION NO. 496 PAGE 53 OF 74 AFFORDABLE HOUSING STRATEGY &COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY ♦ address govemmental constraints; ♦ promote equal housing opportunities for all; and ♦ preserve assisted bw and moderat�income housing from risks of market conversion. > Quantify objectives (units) by income levels for: ♦ Construction ♦ Rehabilitation ♦ Conservation � Programs must be consistent with other elements of General Plan The City of Palm Desert's Housing Element of the General Plan was adopted by the Ciry Council on February 14, 2002 and cert�ed as meeting the r�equirements of State Law by the State Departmerrt of Housing and Community Development on May 22, 2002. 7i�e Stipulation Regard�g Aflbrclable Housing On May 15, 1991, the Superior Court of the State of Califomia for Riverside County, entered a Final Judgment in certain legal actions between the Westem Center on Law and Poverty, Inc, the Califomia Rural Legal Assistance, Jonathan Lehrer-Craiwer and the City and Redevelopment Agency of Palm Desert (the "Parties"). The Judgment incorporated terms of a Stipulation for Entry of Judgment in the Case (the "Stipula6on"). The Stipulation and subsequent amendments imposes certain ongoing obligations on the Agency with respect to afforciable housing within the City. It also provides that the Court continues to have jurisdiction over the matters covered in the Stipulation for the purposes of enforcement of the Stipulation. The Stipulation requires that the Agency develop, rehabilitate or aoquire or cause to be developed, rehabilitated or acquired, within the City, housing units affordable to low income persons or families in spec�c amounts during specified time periods.s ObjeetiMes d the Housi�g 9traiegy This Housing Strategy has been developed to accomplish the following objectives: ➢ An assessment of the Agency's compliance with all aspects of the Redevelopment Lav�s various afforclable housing requirements and replacement housing requirements, including cument and future need for inclusionary units and the use of housing set-aside funds. 5 Restncted income categories required by the Stipulation are more restridive than those required by Redevelopment Law. ROSENOW SPEVACEK GROUP, INC. PAGE 7 RESOLUTION NO. 496 PAGE 54 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REQEVELOPMENT AGENCY ♦ To account for the number of affordable dwelling units, either constructed or substantially rehabilitated, in the Project Areas since adoption; ♦ To forecast the estimated number of dwelling units to be privately developed or substantially rehabilitated between fiscal years 2004J05 - 2008/09 and 2013/14 and over the duration of the Redevelopment Plan; ♦ To forecast the estimated number of dwelling units to be developed or substantially rehabilitated by the Agency between fiscal years 2004/05 - 2008J09 and 2013/14 and over the duration of the Redevelopment Plans; ♦ To account for any low or moderate income housing units destroyed through the Agency's implementation of the Redevelopment Plan; ♦ To verify the number and rype of replaoement units provided by the Agency in respo�se to any units destroyed through Agency action; ♦ To project the availability of Agency revenue for funding affordable housing production; ♦ To establish a timeline for implementing this Housing Strategy to ensure that the requirements of Section 33413 are met during the ten-year period between fiscal years 2004/05 and 2013/14;and ♦ To review the consistency of Agency affordable housing goals, objectives, and programs pursuant to the City of Palm Desert's Housing Element. > To examine the issues associated with the mandatory imposition of inGusionary affordability obligations on all new housing projects construded in the Projeet Areas. � To assess the City's and Agency's cument housing programs and regulations to determine how well they contribute to meeting the Agency's housing obligations under the Redevelopment Law. � To recommend housing strategies, potential programs and specific projeds that will meet the Agency's and the City's housing obligations. ➢ To identify implementation policies/programs and potential sites for affordable housing development. ➢ To quantify ihe affordable housing requirements imposed upon the City and Agency by the Stipulation. Metl�oclolo� and Data Car�iMtion This Housing Strategy takes into account all residential construction or substantial rehabilitation that has occurred within the Project Areas since their adoption. Infonnation from both the Planning and Building Divisions oi the City's Community Development Department was provided and reviewed in orcier to account for such units and theneby calculate the Agencys overaA affordable housing production needs. The Strategy accounts for existing residential construdion and substantial rehabilitation, and includes projections of new dwelling units that may be constructed or substantially ROSENOW SPEVACEK GROUP, INC. PAGE 8 RESOLUTION NO. 496 PAGE 55 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY rehabilitated during tt�e ten-year planning period and over the remaining period for which each of the Project Areas Redevelopment Plans are effective. �C ,9negation of AfFordable Housa�q Units Amor�g All Prvject Are�as Section 33413 (b)(2)(A)(v) of the Redevelopment Law provides that nedevelopment agencies may "aggregate new or substantially rehabilitated dwelling units in one or more project areas if the agency finds, based upon substantial evidence, after a public hearing, that the aggregation will not cause or exacerbate racial, ethnic, or economic segregation." The Palm Desert Redevelopment Agency with the adoption of its 1999 Housing Compliance Plan has previously taken action to aggregate Rs new and substantially rehabilitated units among all of its (four) Project Areas. The Agency will consider similar action at the Public Hearing scheduled to consider the adoption of this Housing Strategy. It is anticipated that based upon the evidence provided the Agency will find that the aggregation of its afforciable housing obligations between its Project Areas, is of benefrt to the Projed Areas and the community, and that such aggregation will not cause or exacerbate raciai, ethnic, or economic segregation. AfFoRlabfe Housing Provided Outside af 1he Projeat Areas Section 33413(b)(2)(A)(ii) of the Redevelopment Law provides that the Agency's obligations under Sedion 33413 may be met by providing affordable housing outside the project areas on a two-for one basis. During the adoption process for each of the Project Areas, the Agency adopted appropriate resolutions tt�at allow the Agency to expend its twenty percent (20%) housing set-aside money outside of each respedive Projed Ar�ea. To date, the Agency has created or reserved the vast majority of its affordable units within the Project Areas. However, the Agency will, if appropriate, consider funding affordable housing projects or programs outside of the Project Areas when necessary. Housing Goals The housing goals for the terrn of this Housing Strategy are: ➢ To increase, improve and preserve the Community's supply of low and moderate income housing citywide. w To comply with the replacement and inclusionary housing requirements mandated by Redevelopment Law. ROSENOW SPEVACEK GROUP, INC. PAGE 9 RESOLUTION NO. 496 PAGE 56 OF 74 AFFORDASLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY Y To leverage the Agency's Housing Funds with other resouroes in order to promote affordable housing. � To insure that the dollars spent for general administrative adivities are not disproportionate to the amounts actually spent to produce, increase, and preserve housing. � To give priority to housing proposals that will eliminate or prevent the spread of blight Citywide and decrease exoess demands on public services such as police, code enforcement and building and safety within the Project Areas. y To utilize the Palm Desert Housing Authority's ("Housing Authority'� resources and powers as tools to implement and assist with the development of affordable low and moderate income housing. ➢ To utilize the Housing Authority's efforts to provide affordable bw and maderate income housing and to stabilize problem multifamily projects and distressed areas. :- To provide diredion in the development of housing programs and projects that over time will enable the City and Agency to meet tf�eir combined housing obligations. r To continue to meet the affordable unit requirements set forth in the Stipulation. Since the adoption of the first Housing P1an in 1993 (the "1993 Housing Plan"), the Agency through the effo►ts of the Housing Authority has activety pursued projects, programs, and activities that meet the Agency's goals as set out above. The projects, programs and activities have been designed to sign�cantly increase the number of affordable very low, low and moderated income housing units within the Community and to improve and upgrade the Community's housing stock and improve the overalt quality of life of residents of Palm Desert. Redev�elop�r�ent Plan Limifations Redevelopment Law provides that certain limitations on �edevelopment and financing activities must be imposed on the Redevelopment Plans. Additionally, changes in the Redevelopment Law have and may continue changes in individual Project Area limitations. These limitations affect the term that the Agency may pursue revitalization efforts and among other things the amounts of tax increment revenue available for housing activities. The following Table 1 summarizes the Projed Areas Redevelopment Plan limitations. ROSENOW SPEVACEK GROUP, INC. PAGE 10 RESOLUTION NO. 496 PAGE 57 OF 74 AFFORDABLE HOUSING STRATEGY 8� COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY TABLE 1 PALM DESERT REDEVELOPMENT AGENCY .. Plan Limits Ori inal Area Added Terrilo Pro'ect Area No. 2 Pro' Area No. 3 Pro ect Area No. 4 Date of Adoptlon J� 16. 1975 �November 25. 1981 July 15. 1987 July 17, 1991 July 19. � 993 ENect�veness oi PIaN1/2 Jul 16, 20t6 I November 25. 2022 Jul 15. 2028 Jul 17. 2032 �u 19. 2034 Tax Increment 5758.000,000 5500,000,000 r3 $800,000,000/5 360.000,000/3 5200,000,000 i3 Bonded Debt �mltl3 None I 5200,000,000 i5 5150,000,000I5 i 100,000.000l3 $600.000.000 Gross 5 � 35,000, 000/3 L�mlt to Incur pebt Eliminated/4 Ellmmatedl4 Elimmatedl4 E6minated/4 Ehminatedl4 Gmrt on Recelwng Tax increment antl Paying Indebtednessi2 July �6, 2026 November 25. 2032 July 15, 2038 � Juy 17. 2042 July 19, 2044 1 Pursuant to Assembly &II 1290 all pre 1994 redeveiopment pro�ects were requiretl to adopt speu6c Sme GmrtaUons On December 8, 1994 the Gty Counal atlopted the requirea Ordinances establishing such lim�ts for each Pro�ect A�ea 2. Pursuant to Senate Bill 1 WS (Statutes of 2003, Chapter 260), which was enaded mto law m September of 2003. the Gry Counul wdl have the adUty to extend each Pro�ect Areas P1an's ettectrveness for the Ume penotl to coYea tax muemeM by one year 3. Tax mcrement pp and/a bonded Oeb� Omit is exclusve o� amounts pald to tawng agendes and exausive ot amounls palA d�rectly or mClrectly by the Agency or any tauing entity to finance Me acquisitim of land, construction o( buJdings. faci66es, structures or Improvements for such iawng agendes. 4. Pursuant to Senate Bili 211(Statues o12001 Chapter 741) the City Council adopted the required Ortl�nance amend�n9 tne Pro�ect Areas Redevelopmenl Plans to elimmate lhe Uma hmds to incur tlebt 5 Amounts ad�usted annual by Consumer Pnce Index (CPI) ROSENOW SPEVACEK GROUP, INC. PAGE 11 RESOLUTION NO. 496 PAGE 58 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY This sedion describes the Agency's housing production needs for the next ten years, which is camprised of two five-year planning periods (2004/05-2008/09 and 2009/10- 2013/14} and over the duration of the Redevelopment Plans. De4'riitions and Data Cornpiabon This Housing Strategy takes into account all residential constn�ction or substantial rehabilitation that has occurred within the Projed Areas sinoe their adoptions in order to determine affordable housing production needs. This Housing Strategy inGudes figures for existing residential constn.rdion and substantial rehabilitation, and projections for the number of additional dwelling units to be constructed or substantially rehabilitated during the next ten (10} years and over the life of the Plans. The following sections define "new construction" and "substantially rehabilitated" as used in this Housing Strategy, as well as the methodalogy used for collecting data on both existing and projected housing units. � New Constn�ction. The Agency and City Planning staff provided the original constn�ction statistics used in the 1993,1994 and 1999 Housing Plans. Because Redevelopment Law does not provide a clear definition of new construction, the Agency staff, consultant, and legal counsel have agreed upon -- a"definition" for new construction. The definition: "new constn�dion occurs when building permits are issued for and construction occurs resulting in the development of a new dwelling uniY' was utilized to account for units considered developed from the respective adoptions of the Project A�eas until the 1993 Housing Plan preparation. Therefore, all units constructed during this time period would fall under the requirements for the production of affordable housing units within the Project Aneas pursuant to Section 33413 of the Redevelopment Law. Counts of new dwelling units devebped from 1994 through 2004 wene based upon an examination of City building peRnit records. :- Future aroiections of new units. Projections of future new units have been based on General Plan land use densities and available vacant land. The Community Development Director and his Planning staff have reviewed the General Plan densities of residentially zoned vacant land within the Project Areas to determine the potential numbers of new and substantially rehabilitated units that can be e�ected to be devebped over the remaining effectiveness of the Redevelopment Plans. The resufts of this review determined that within the next ten years Projed No. 1(Original and Added Territory), Project Area No. 3 and Project Area No. 4 will reach build out. Only Project Area No. 2 will still have remaining vacant land that may generate additbnal new dwelling units. Z Aqencv Develoued Units. It should be noted with the exception of the Palm Village Apartments, a new construction/substantial rehabilitation affordable housing proje�t now underway, projections for future dwelling units in the ROSENOW SPEVACEKGROUP, INC. PAGE 12 RESOLUTION NO. 496 PAGE 59 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY Project Areas do not inGude units to be developed by the Agency. Accorciing to Agency staff, the Agency does not anticipate directly developing or rehabilitating any dwelling units which would trigger the thirty percent (30%) affordable housing requirement of Section 33413(b) (I) within the ten (10) year time frame of this Housing Strategy. However, the Agency will continue to cooperate with and provide assistance and incentives to private developers, nonprofits, and the Housing Authority in order to meet afforciable housing production goals. y Substantial Rehabilitation. The Redevelopment Law, as amended by AB 1290, defines "substantial rehabilitation" as: "....rehabilifafion, the value of which constitutes 25 pement of the after rehabilifafion va/ue of the dwelling, inclusive of the /and va/ue. " 33413(b) (2) (A) (IV) y As defined by the Redevelopment Law "substantially rehabilitated dwelling units" means: "On or after January 1, 2002, substantially rehabilitated dwelling unit's means all units substantially rehabilitated, with agency assistance. Prior fo January 1, 2002 subsfanfially rehabilitated dwelling units shall mean multifamily renfal units with three or more units or substantially rehabilitated with agency assistance, single-family dwelling units with one or two units. " 33413(b) (2) (A) (iii) Table 2 bebw, details the Agency's "Inclusionary Housing Obligation Status" with updated total units constructed to date in the Projed Areas, and those e�ected to be constructed from 2004 through the teRn of expiration of each of the Redevelopment Plans. ROSENOW SPEVACEK GROUP, INC. PAGE 13 RESOLUTION NO. 496 Project Aroa 'roject Area No. 1 _ Built from date of adopt through June Substant�all RehaOilitated SUBTOTAL � s SubstantiaN Rehabilitated - > O1 NS New Conshud'an SUBTOTAL � Substantiall Rehabilitatetl r ,n — — — 0 0 o New Construdion g � `� New ConsVuctan PAGE 60 OF 74 AFFORDABLE HOUSING STRATEGY 8 COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY Table 2 Palm Desert Redevelopment Agency Inclusionary Housi�g Obligation Status Devebped or Numb�► ot Totai Numb�r VL Units L 3 M Unit� Substantialy Units Units Required Requirod Requirod Rehabllitabd Produced � 30. 1994 __ Prrvately/ 15% 3,600� ___540�_ 216 32� A enc f30% 64 19 10 1,884 559 226 �3,' __ A ncyl30% 68 20� 10 11 Private/15% 1.p92 164 66 9I 1,160 184 76 10! Agency/30%1_ 12 4 2 - - - ____ 1 A�enc�30°h jI 24 — 7r- 4 � I DrvafeH Seti I )dt 11tI dd G. Bwll lrom tlate of aGopt throuyh June 30, 1994 I I _ _ Substantially Reha6ihtated Private115°/ I New Construaion � Pnvatell5 ie � 1.159 SUBTOTAL 1,1 S9 � ,; � SubstaM�aN Rehabl4tated Prnate/15°h I � i �' r New ConsVuction Private/15% � 238 SUBTOTAL 238 � � a Substanliall RehabiMated Pnvate/15°� 1 �` C$� New Construction Prrvate/15°,4 2.ODI � 0 0 1 173.9 69.5 t 04.: 174 70 10� 0 0 ( 35J 143 --214 55.7 11.3 21.1 0� 0 ( 180 Buitt from date of aCopt through June 30, 1994 Substant�ally ftehebiitated Subslant�211 Rehabilltatetl � i � � New Constructbn SUBTOTAL 0 o Substant�ally Rehabllltated Q — --- — F i N=� New Construdan Built from date of adopt through June 30, 1994 SuGstantially Rehabilitated New Construcian SUBTOTAL � ` � q Substantiall Rehabilitated _ _ '- T � N$ New ConsWctan SUBTOTAL 0 0a � SuDStantielly Rahabilitated _ H> N � New Construdion SUBTOTAL To B� BuIIUProvided Ov�r R�malnlna Prolect SUBTOTAL-1ST TEN YEARS Pnvate115°h� 0 _ 0.0� _ 0.0 0, Privatell5% 80 12� 4.8 7 0 0 0 Pnvate/15°.i . 2 1 0 0 5 0. Prnate/15°h 541 -- B 12 � 32.5 48. 54S 82 S� � Pnvate/15Yo 0 _ _ 0 0 _ _ Pnvatell5% 0 Pflvate/15% 218 216 Agency/3056 141 Pnvate/15°� 937 1,078 Pnvatt115°A. 0 PAvate/15� 76 PrfwtdlSX 0.0' OA 0.0 33 13 20 �3 13 20 42 21 21 141 — — 56 — — 84 183 77 105 0 _ 0 0 11.4� 4.6 68 � 766 200 286 208 309 46 69 1/ InUuaes pro�eds aurentiy urder constn,ctim. ROSENOW SPEVACEK GROUP, INC. PAGE 14 RESOLUTION NO. 496 PAGE 61 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY Inv�enbory o�f Existr�g De�c!-Restric�bed Units The Agency is obligated under Section 33413 (b) of the Redevelopment Law to ensure that 30% of all Agency developed or substantially rehabilitated units within the Project Areas are made available at afforciable housing costs to very low, low and moderate income persons or households6. Additionally this section of the Redevelopment Law provides tt�at 15% of all units developed or substantially rehabilitated within the Project Area must be made available at affordable housing costs to very low, low and moderate income pe►sons or households. To satisfy the Agency's production needs, units that ar�e erther developed or substantially rehabilitatec! must be subject to covenants. Units created after 2001 must carry 45-year affordability covenants for single family units and 55-year affordability covenants on multifamily units.' Units may be constructed inside or outside the Project Areas, but units provided outside a project area count on a 2-for-1 basis. The Agency may also purchase 55-year affordabiliry covenants on multifamily units. Table 3 below presents an inventory of the existing deed-restricted units that meet these ne�quirements. In total, the Agency's affordable housing program has yielded 1,458 afforciable units, of which the Agency's inclusionary unit need can be credited with 1,349 restricted units.e The 1,349 afforciable restricted units are allocated as foNows; 594 are restricted for very low income persons or households, 538 are restricted for low income and 217 for moderate income. (fhese figures exclude manage�'s units that ane included as a part of muftrfamily housing projects, as well as units projected to be produoed as the Agency continues implementing its affordable housing program.) 6 Section 50052.5 af Health and Safety Code defines affordable housing cost as: - Very Low - Not more than 30% of 50% of the County median household income. - Low - Not more than 30% of 70% (or 60% for rental projects) of the County median household income. - Moderate - Not more than 35% of 110% (or 30% of 120% for renta! projects) of the County median household income. ' 45 years for ownership units or 55 years for rental units. Prior to January 1, 2002, affordability covenants could be as little as the duration of the redevelopment plan to count for mee6ng a redevelopment agency's affordable housing production requirements. e Pursuant to Section 33413 (b) (ii) aF the Redevelopment Law, the Agency may provide two indusionary units outside the Project Areas for each required restrided affordable unit. ROSENOW SPEVACEK GROUP, INC. PAGE 15 RESOLUTION NO. 496 PAGE 62 OF 74 AFFORDABLE HOUSING STRATEGY 8� COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY TABLE 3 PALM DESERT REDEVELOPMENT AGENCY 3 PALM DESERT HOUSING AUTHORITY llS7 OF INCLUSIONARY HOUSING UNITS _" W � Tpnl UNb / d UniO� or � d Units d / d t/Nd d Total � d Wbid� PAY � FroMet+ Wt Br+aktbwn N Proj�ci Vuy Lew Low Mo0 M�wdaD4 Unks T�ms of CCiRs FWI a 507G hrouQh Jum 199� GA_�One Quaa Piace/72fi00 FreC Wannp �nve _ GA .PuaCWsi 73fi95 Santa Rou Way _ GA NeqhDorsi 73.575 Sama Ro+a Way _ GA Uuhn� GarOens'i 7J-500 Gtahna Wsy_ GA I Lat Sen�aa'� 73�315 Country Club Dr 11 'C rCV Se�� Melp Ho�sinp/Vuquf Location R�A �DetM Po�nteil3-0OS Montercy Ava GA �an Tropez Ap�s 7i773 Country G�D Dr_ Su�total 15Ca�1 BR. Y1E2 BR ]8� 1511 BR 15 2{/2 BR 21 aE/Studa.2�/19R 72 -- 15Nt BR ��I7 Mp�w 1113 BR � 1 ]u Studa. 7si� BR. 6, 2R BR JD/ 1BR, 65f 2 BR 1Q1 Unknown ToUI GreEeetl Total� GeWttC TOUI I CmEi4d 137 1]3 191 I 19� 60� 60 t] t3 t t t t--{— � 14 1� 3 � 3 T I 7 �9 a9 E 6 t5 t 15 E1 �OS 75 • 1)5 3� 155 0 0 �t tt o� o 0 26 2B t� I t� N I 24 0 � 103 St 5 0 I_ 0 0 0 0 0 6 6 0 0 0 0 10 70 116 2755 36i t!T 1S1 13l.S �R�A ISanta Rosa Ap¢Nnents 70/2 BR 20 70 70 0� 0 0 I 0 'GA 1Taos Palms �4$30n Laa Palmu Av� 16/ 28R 16 12 12 3 3 1 1 �— IPortoia Paims MoE�k Morry Pk �3� 1 SS Pptda t A�+OU Ava 1s7 MH/ �9 Ass��teE 1�2 29 29 6 ! 6 �� a �C Desert Rose SF Homes 121/ 7BR 37I IBR t8t 4� 2� 105 tp5 92 32 BuiiCiny Hor¢ons SF Momes 73378 8 3E6 �C 2/ 1 BR 2 0 0 2 I 2 0 - 0 _ �fioya� �aims �C MaCNt For HumaM�as ��R 3 � 7 0� 0 0� 0 �C Rehecca Roaa �2b62 da2-7�0 _ 2� 26R 2 0 0 � _ 2_ 0 l_0_ ;R-A ICaF�omiaViUs77�tOTCalrtom,�Ave 1N11BH 1N 97 97 26 � P6 1� 1D iR�A Upun� Pa�ms 73-0OS S�nu Rosa Wry 4l SWdo. td t BR. �e Z� Z� 5 S 16 16 26/ IBR �EMBR73128R,72/ �6?/tep 1C Hovey Gartlanf 74501 �2ntl Ave/1 �R �p � 62 67 67 67 0 0 tC Gnde�woCS�atlowMoumam 28 t] 13 t� 1�. . 0�� !C �✓��laa on iAs Green 77-120 U�I. Onvs YSt�dio. 1N � BR. 2/ 75 0 0 8 I B 7 ) 28R 17/ 7 BR, 17/ 2 BR, 7/ +C— Unbrta Pna�e 1 � BR 306 31 Jt 0 � 0 0 I' 0 JC PacAic As�iste0 LNin� 7JL65 Cataiina W� 2/ I BR UnWown 0 0 2� 2 0 I o iC ��74�P17 San A4nno Cr 1/1BR Unknowa 0 0 0 0 1 7 1 JC Rrvul Run Ona NS55 San Raotual Ava 2/ SNdos Unknow� 0 0 Z�2 0 0 Private Dw�hpm��t wkh A�n� FunaeA bMshna Cumntly lhW�ry SR �Palm VnUqe Aputrnents 71610 - 68B SanU Rosa WyiSuostan0al Relub 12 unes-admbn d 3612 BD za anns NC Setl Mdp Hous,np MaM Strset 1M 3 BR NC t8 Acro SFD �7i 3 BR, �7� � NC_ 26 Und R�nui S�n�or Mousirg _ 26/ � BR � I,a ,a I,e I,a I o I .. r ,. ,. o o � 17 i0 Toul I craMea _ 78� I 781 0 A1 laasl 55 Yrs Ful 15�15 0 At kast 55 V�s FuN p4 �1A _ At least 55 Yn F�dl _ 77 7p 0 At ieast 55 Vrs _ Full 1!7 73 S At ieatl SS Yn 50•6 1� 10Ynlromt99� Fuu w I w o �� ieas� ss rn F �n 103 515 JOYn FipmtgE� SDY._ au � »� 20 20 0 55 yaan hom 1999 FWI 0 16 0 At �esct SS Yn FWI 79 39 0 30 Vrsl}om+ 1994 FW �161 181 0 30 Yrt Ihom 19% Full .—" —. —'_— — — — 2 2 0 ]0 Vn From i998 Full -- 3� j— 30 1� �. �, — F�I-- Yrs _ _ 7 I� 2A 70 Vn From 2000 _ Fuil _ 111 ta1 0 SS years kom 2003 Fu1 18 4a 0 55 years hom ?DO] F�i 129 I 129.0 SS y�srs trom 2003 FuY 26 260 HUDF��unpd FWl 15 15 0 30 yrtlor �sehi ida F� olbuWui� _ _ _ J1 71 0 30 �n From 2007 F,Ai 2 2 30 V�rs • Ful 1 1 45Ye�ri FW z T i o ao r�.�, . r„u o I � Key PG PGA ANoitlaDla unrts usatetl hom �zuUrq un�� I�muqh tPe purcluse o1 affoNabl�ty covenants 'A' ndpled unds ara oM�ad oy ►�. inry. NGUn�ts ueated by new canstrucEm _ _ . _ _. _— .__ RGRa�nctna Covan�m'mposed as a condeo� 01 Eaysbpmont _ _ _ _ _ _ __ _ _, Mh40U Mobne l+ome -Mome wmeRR�p �uaueoe __ _ _ _ _ _ _. , _ �01�@ V111tS �IYR� 36 SS years F�A U 45 Yean f W 91 �5 �ears Fuil 26 SS Yean _ Ful 170 1S1! As previously described, Section 33413(b) of the Redevelopment Law requires that not less than 30% of any Agency�eveloped units ("30% Units'� or 15% of privately developed units ("15% Units") produoed during the next five and ten year period (the "Planning Period'� be affordable to low and moderate income households. The Redevelopment Law afso requires that 50°l0 oS t�e 34°to Units and 40°l0 of the 15°l0 Units be specifically limited and affordable to very low income households. These ROSENOW SPEVACEK GROUP, INC. PAGE 16 RESOLUTION NO. 496 PAGE 63 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT RED�/ELOPMENT AGENCY affordable housing production requirements should be met during this planning period, which ends on June 30, 2014. Based upon the forecast of housing construction presented ea�lier and the Agency's inventory of affordable housing projects completed to date, Table 4 presents the computation of the Agency's affordable housing production requirement for the planning period, as well as the entire duration of each of the Redevelopment Plans. TABLE 4 Past Inclusionary, Cu�rent Five 8 Ten Year InGusionary Unk Need The Agency has actively worked to produce the nequired number of inclusionary units over the last ten years, producing over 9,458 affordable units (with an inclusionary credit of 1,349 units).9 As detailed in Table 4, the Agency has more than met their inGusionary housing needs for the prior 10 year period (1994/95 through 2003/04). The Agency has produced a surplus of 481 affordable units that they will apply to this planning period's pr•ojeded afforcJable unit need. Additionally, the Agency has entered into agreements or undertaken construction of 134 units of afforciable housing that will 9 Pu�suant to Section 33413 (b) (ii) of the Redevelopment Law, the Agency may provide Mro indusionary units outside the Project Areas for each requir+ed restricted affordable unit. ROSENOW SPEVACEK GROUP, INC. PAGE 17 Notes: 1j Sv�ca Aeficrt was crnted wer peraG hom atlopUm d Ihe Onpu+al Prqect i thrwpli 1994. 1M i,rvt EefK�t �denW�ed urWar "Pre 1994 �.nu De aCtlrasaC asr a 20 year panod y DunUan d Retlweiaprnant PWns aa as fdlwis Onginal Prqsd 1•2016. AtlOeO Tart�ory 2022, Prqect No. 2� 2026. P�qect No 3� 2032, aW Prqect No42034 RESOLUTION NO. 496 PAGE 64 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY substantially meet their 5-Year unit need. As shown on Table 4, the Agency will continue its efforts to facilitate the constn�ction or restriction of the remaining 284 units `" that will be required to meet the ten year planning period's affordable housing unit obligation. The Redevelopment Law requires that whenever housing occupied by low and moderate income persons or households ane destroyed as part of an Agency projed, the Agency is responsible for ensuring that an equivalent number of replaoement units are constructed or substantialfy rehabilitated. These units must provide at least the same number of bedrooms destroyed, and 100% of the replacement units10 must be affordable to the same income categories (i.e. very low, low, and moderate) as those removed. The Agency receives a full credit for replaoement units created inside or outside the Project Areas. Sinoe the adoption of the last Implementation Plan, the Agency has provided funding for a necessary infrastsueture psoject that resulted in tt�e destruetion of housing occupied by bw and moderate income persons or households REPLACEMENT HOUSING OBLIGATIONS TABLE 5 REPLACENENT HOUSING UNfTS REQUIRED Total No. of No. of Unks Removed/ No. V�ry Low Low Moderate Project Ysar of Units Oecupled by VL, L Total No. o VL, L 3 M� Ineomt Incoms Ineoms or AA Ineome 8�drooms Ineome Units Units Units Unlb Wldening of Fred Wxing 20� q�� g� 35 11 15 9 Dnve REPLACEMfE1'1T UNITS PROVIDED-AT 100'X► OF INCONIE TYPE �R LOWER 162 unR project-32 Hovely Gatdens i4-501 allocaled 10 42nd Ave/ replacement 32 Unite (8-28D, 21-3BD, 3- obligatbn 49D) 97 32 _ 11 21 0 150 unit pro�ect -3-1 Las Serenas'/ 73-315 �d albcated to Country Club Dr �1 replacement obli ation 3 Unrts 1 BD 3 3 0 0 3 Raplacem�nt Housing Ns�d M�t 46 94 35 11 21 � Table 5 above, details the very bw, low and moderate income units destroyed by the widening of Fred Waring Drive in 2000 and the units produced by the Agency to meet its replacement housing obligation. The Agency does not anticipate demolishing or removing any additional affordable dwelling units during this five and ten year planning period. 10 Prior to January 1, 2002, 75% of all replacement units must be of the same income category or a lower income category as those persons or households displaced. ROSENOW SPEVACEK GROUP, INC. PAGE 18 RESOLUTION NO. 496 PAGE 65 OF 74 AFFOROABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY Housing Set Aside Tau Increment Funds The Agency's primary source of funding for housing projects and programs is the annual deposit of 20% of its tax increment revenue into a special housing set-aside fund ("Housing Fund"). The Redevelopment Law requires that these funds be used to increase, improve, and preserve the community's suppy of housing available, at affordable housing cost, to persons and families of very low, low, and maierate incomes. Other sources of Housing Fund revenues include interest eamings, bond proceeds, land sale proceeds, loan repayments, and developer loan proceeds. Table 6 below, presents staffs forecast of Housing Fund revenues and expenditures for the first five years of this planning period. The forecast acoounts for operational and projed expenditures based on the cuRent budget and are subject to change. ROSENOW SPEVACEK GROUP, INC. PAGE 19 RESOLUTION NO. 496 PAGE 66 OF 74 AFFORDABLE HOUSING STRATEGY 8 COMPLIANCE PALM QESERT REDEVELOPMENT AGENCY FIVE YEAR IMtPLEMENTA710N PLAN-F1pUSING COMPONENT 7A8LE 6 PAL M DESERT REDEVELOPINENT AGENCY HOUSING S�RC.TEGY PRaGAAM — 7 2 3 4 S Tota1 I004200b 2005-2006 2006-2007 2007-2008 2008-2009 Bsyinninp Availabk Fund Balanc� 14.831.906 67G�0.562 5.699.028 8,403.4J8 1�,t83.59i Ravenues Tax Inaement Revanue 1/ 71.626,760 12,037,086 12,490,830 12.964.207 13.458.197 fi2 577.OB1 Interest Eamngs 296.638 120.060 83,313 122,271 223,737 845,�20 Housmg MrtgaOon 160.000 160,000 160,000 150,000 150,000 780,000 Bona Proceeds - - - - - - Other I�come - Loan Payofls 2A,000 26.000 Y8.000 30,000 32,000 140.000 Other Incame - tst Trust Deeds 9,500,000 5,000,000 - - 14.500,000 Subtotal 12,107.398 21.8�3,147 17,762,1�3 13.266,478 13.863.335 )8,842,500 Total Resourtes 26,939.304 28,603,709 23,46t.171 2t,669.976 ?8.046.926 ExpendlWres Bond DeDt Serv�ce Payments !2 4.299.330 4,301.813 4,300,393 4.294 858 4.299.SJ5 21 495,929 AdmNistratrve Costs 3J 924.915 1,029.911 7,075,000 1.t22,t84 t,171,562 5.323,572 SB 2557fee M 176.912 184.367 192,1�0 200,243 208,692 962.354 New BOnd DeDt Serv+ce _ Subtotal - - -- - -- -� ---- - - -- - 4,476.242 4.486.180 �.492.533 1.495.101 4.508.227 22.458,283 Pro/ects d Programs Cosb - - - - - - --- - - -- - - - -- - - -- - — Rental Ass�sfance P�ogram (CP) 50.000 260,000 525.200 795?04 7.071.618 2.702.522 Aaqu�srtron ReAadi�ta�on and Resa�e 250.000 260.000 Y75,000 260,500 286.110 1,351 610 Mortgage Assistance P�ogiam (CP) - 50.000 101,000 153,020 20fi.080 510.t00 Sell Help HouSing - 450,000 450,000 - - 900 000 Home Buye� Assistanps Pipgrsm (CP) 300.000 300,000 300.000 300 000 300,OD0 1.500.000 MuR�-Famdy Ref+adlrtaUon(Owner Occupedj - 25 000 - 25,000 - 50,000 Home ImpioNemenf Proqram Comp t to 6 350.000 J00,000 300,000 300 000 300.000 , 1.550,000 P�operty Acpws�t�on•Sen�or Housing New ConstrucGon � - 4,000,000 - 2,000,000 6,000.000 DeseR Rose Cost to manta�n aflordabiNty (ind 2T0 �ncreases) 50.000 65,000 80,000 95.000 110.000 400,000 PORoIa PaJms MoDile Home Park 2.500 2.500 2,500 2 500 2.500 12,500 New MuIG-Famdy Acqu�s�Gon - - - - - - Gry Re�mD 40 ACrEs � MUSde Piep 2.700.000 - - - - 2J00.000 Pro�ects Slated from Nm-Taxahk Bond Iswe� Palm V�llage Apts PuicNRehaD 6 SuOsidy - 6.000 7,500 7 500 7.500 28,500 _ Mutli�FamdyAcyRehab (Country GuD Estetes. Laquna Palms) 3.000.000 1.)00.000 500.000 - - 5•200•000 Future Projetts New Constrt�chon tor Sale fBa/ance d 18 ac�asJ 9,000.000 15,000.000 4,000,000 - - 28,000,000 New Mulb-Famdy Constiuchon - - - 1.000.000 13.500.000 14,500.000 New ConsfruCtion SuDsdies - 24,000 32.000 �O,OQO 96,000 Subtotal 15,702,500 18.118.500 10.565,200 2,991224 17.823,808 65,501,232 ToUI Exp�ndlWrea 20.178.742 22,904,680 15.057,733 7,486.325 22,332.035 87.959,576 Endinp Av�llable Funtl Balanc� 6,760,562 5.699,028 8.403,438 1�,183.591 5,714,l91 1i For Tax Incoment Revenue pmwCi � 7% par annum 2l Bated upon Gty 3/ Aamm Costi pm.�t� �t 5. Obfeuanal a�mas qrowM u 2 5'i 1/ Reprounb nat 58 2557 fsa Houfinp Funtl n cnaryW rt� p�opartiorul �an o! B�u Couny CMrya. Targe�lrg af Houslr�q Fwx! E�enditures As set forth by Section 33334.4 of the Redevebpment Law, each agency shall expend, over the duration o�f the compliance plan, the moneys in the Housing Fund in proportion to the communiry need, both in terms of the income categories and the number of senior households assisted. Income Categories Agsistsd According to the City's 2004 Housing Element, the current RHNA f�gures fo� the City cover the time period of 1998 through 2005. Table 7, taken form the Housing Element, ROSENOW SPEVACEK GROUP, INC. PAGE 20 RESOLUTION NO. 496 PAGE 67 OF 74 AFFORDABLE HOtJSING STRATEGY & COMPLIANCE PALM DESERT REDEVEIOPMENT AGENCY shows the Citywide need for 215 high income units, 85 moderate income units, 67 {ow income units, and 77 very low income units. , TABLE 7 City ot Palm DeseR Future Housing Needs by income (RHNA Newts pe� SCAG) 1898-2005 Income Category Units Very Low Income 77 Low Income 67 Moderate Income 85 High Income 21A Total Units 443 Pursuant to Section 33334.4(a) of the Redevelopment Law, Housing Fund expenditures over the period of the lmplementation Plan must be expended for very low and low income persons at a minimum in the same proportion to the City's fair share of the Regional Housing Need Assessment (RHNA) unit need for very low, low and moderate income units. Based on the figures detailed in Table 8 below, the Agency's Housing Fund e�enditures must be allocated so that at a minimum 29.3% of the funds are expend to assist low income persons and at a minimum of 33.6°/a are expended on very low income persons . Table 8 Harsing Set.Aside Funds 10 Year Funding target Atlocation — 6ased Upon 199&2006 RHNA Income Units Minimum Category % Allocation Very Low 77 33.6°/a Low 67 29.3% Moderate g5 m mim urro Total 2zg Famiiy and Senior Nousing Pursuant to Section 33334.4(b) of the Redevelopment Law, Housing Fund expenditures for senior housing over the period oi the Implementation Plan must be expended in proportion to the community's population of that age, according to the most reoent Census. According to the 2000 Census, 11,410 (27.4%) of the City's 41,284 residents were 65 years of age or more. As such, not more than 27.4% of the Age�cy available housing fund revenues may be e�ended on senior housing projects during this Planning Period. ROSENOW SPEVACEKGROUP, INC. PAGE2'I RESOLUTION NO. 496 PAGE 68 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY — TABLE 9 City of Palm Desert Population Distribution of Persons 65 Years of Age o� Ofder Age Number of Persons % Under 65 29,874 72.4% 65 or Ove� 11,410 27.6% Total Units 41,264 100.0% Source 2000 US Census data Pwjected Housing Fund E�cnditures Table 10 presents a summary of the Agency's proportional housing e�enditures based on planned projects described in the next section of this Housing Strategy, and the thresholds set forth above. TABLE 10 10 Year Housing Strategy P{an Projected Projected Housing Fund Resources 10 Year Totals Beginning Cash Balance $14,831,906 Projected Tax Increment Set-Aside Rev. 136,172,020 Other Revenue Income to Housing Fund 2.669,561 Subtotal $153,673,487 Total Debt Service/Admin & Operations (49,221,023) Net Revenue Available for Projects & Programs $104,452,464 10 Year Estimated Aitoca�tion of Funds by Income Group RHNA % Income Group/ Minimum Expenditures Project Amount 33.62% Very Low $35,121,571 29.26% Low 30, 560, 328 37.12% Unrestricted (very low, low & moderate) 38,770,565 100.00% $104,452,464 Senior Citizon Housing Allocation Senior Population % (Limitation) 27.6% $28,828,880 ROSENOW SPEVACEKGROUP, INC. PAGE 22 RESOLUTION NO. 496 Po�ber�tial Ai�ordable Units by Year PAGE 69 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDk1/ELOPMENT AGENCY Table 11 pnesents the Agenc.ys estimate of a(fordable housing unrts that will be pmduoed ar provided during the next 5 year period. TEN YEAR AFFORQABLE HOUSING COMPIIANCE PLAN TABLE 11 PALM DESERT REOEVELOPMENT AGENCY INCLUSlONARY HOUSING PRODUCTION TIMEUNE �Program / Project Af%idable Units Produced b Year � 2004-05 200506 2006-07 2007-08 2008-09 Total Palm Village ApaRments _ _ 18�1 _ 18 Acre Housing DevelopmenU Single famify �_ Self-Help Hausing Pro ram Senior Housing Rental Project Senior Housin Rental Pro'ect � Sares Regis Pro�ect Density Bonus TOTALPROGRAM � g4 — 14I _ �_ 13 13 — -- 5 5 OI 32 I OTher Funding Sou�oes for Housi�g Prograrns /M VL UM 18 18 0 94 1 1 All potential sources of funding will be actively pursued by the Agency in its efforts to implement the City's Housing Element and HousinQ Strateqv. Key to this effort continues to be the establishment of relationships between public entities (especially the City) and the private sector. Despite the faci that the Agency's housing program has produoed a surplus of housing units above the Redevelopment Law's requirements for the last 10-Year Planning Period the Agency will continue to implement its housing program in the Ciry to provide additional affordable housing units to meet the current Planning Period's indusionary unit need. The current projects and programs proposed by the Agency include the following. ROSENOW SPEVACEK GROUP, INC. PAGE 23 RESOLUTION NO. 496 PAGE 70 OF 74 AFFORDABLE HOUSING STRATEGY 8� COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY Plamirg Period Hous�g Projects and Programs � The Agency will continue implementation of affordable housing projects throughout the Projed Areas and Citywide over the balance of the 10-year planning perad. In that, the Agenc�s reoent housing production ac�tivities have resulted in a substantial number af afforclable housing units being aeated, re.served or produoed. During the current planning period, the Agency will oonoentrate i�s efforts in generating additional units to meet its inclusionary requirements and Housing Element goals Citywide. Fuh�re implementatan activities will fall into the f�lbwing cat�egories: ♦ Palm Vllage Apartrnerrts: 73-61aG88 Sar�ta Rosa Way- ReconstrudioNSubstarrtial Rehabilihation of 12 units and construcxion of an addi�onal 24 units af which all ar� to be 3 bedrooms. All Units will be restricted and affordable for a period of not less tfian 55 y�rs. ft is arrticipated that 18 units wi(f be r�eserved for very low households and 18 units will be r�served for bw income households ♦ Seff Help Housing-Merle Street - The Agency will continue its self-help housing program, producing 14 3 bedroom ownership dwellings, all reserved for very low income households. The homes will be cover�ed by a 45 year affordability covenant. ♦ Construction of 95 large family single family homes on an 18 acre site. The 3 and 4 bedroom homes will be reserved for law and moderate income households. The homes will be covered by a 45 year affordability covenant. _. ♦ Senior Citizen Housing - The Agency will pursue the development of 26 new senior housing units within the community. This projed is targeted to reserve 13 affordable units for 1he very low income and 13 units for the low-income senior. All Units will be restricted and affordable for a period of not less than 55 years. ♦ Single Family Rehabilitation — The Agency will continue its successful singl� family rehabilitation program. It is estimated that 30 units of affordable housing will be produced. ♦ Multifamily Rehabilitation — The Agency will purchase and rehabilitate suitable rental properties, thereby providing affordable units. 30% of the total number of units ane to be for bw and very low income persons of which not less than 50% of these units will be very low-income affoMable housing units. ♦ Provide Developer Incentive — The Agency will provide financial assistanfle were necessary and appropriate to secure �estricted covenants on privately development new single family and multi-family housing units. Programs identified in the City's Housing Element that are anticipated for implementation during the next ten year period that are currerrtly under developme�rt by Agency staff are: ROSENOW SPEVACEK GROUP, INC. PAGE 24 RESOLUTION NO, 496 PAGE 71 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY ♦ Mortgage Subsidy Program - Very low, low and moderate income owners of single-family homes, condominiums and mobile homes may receive assistance if their mortgage payment exceeds 30% of their income. Assistance will be � provided directly by the Redevelopment Agency. In exchange for the assistance, the home owner will be required to enter into a recorded agreement with the Agency assuring affordability of the home for 45 years. ♦ Rental Subsidy Program - Owners of single-family homes, condominiums, mobile homes or apartments who rent to very low, low, and moderate income tenants may receive direct rental payment assistance from the Agency. The owner must, in exchange for the assistance, enter into a recorded agreement with the Agency assuring afforriability of the rental units for 55 years. ♦ Homebuyers Program - The Agency will provide assistance to very low, low, and moderate income persons in the form of low interest loans to be applied to down payment, non-recurring closing costs, reduction of the interest rate on the first trust deed, or any other cost associated with the purchase of a home. Section 33490 (a)(C)(iv) requires agencies to report the amounts of Housing Fund dollars utilized to assist affordable units over the previous Implementation Plan Period (prior 5 year period). The Agency's Housing staff has identified Housing Fund dollars expended on affordable housing projects since 1999. The following Table 12 details the Housing Funds spent during this period. ROSENOW SPEVACEK GROUP, INC. PAGE 25 RESOLUTION NO. 496 PAGE 72 OF 74 AFFORDABLE HOUSING STRATEGY 8� COMPLIANCE PALM DESERT REDEVELOPMEfVT AGENCY TABLE 12 Fund Expenditures by Residential Project 1999/2000 throuqh 2003/04 Frojects " NOUSING FIJNp 6T0 20'I� SET ASlDE Actual ExpendRures Debt Serms AdmiNProf E� Total by Prqect One Quail Place/72-600 Fred Wanng Dnve 8,489,219 8,489,2t9 Pueblos/ 73695 Santa Rosa Way 17,687 266,567 Zgq,Zsy Ne�ghbors/ 73-535 Santa Rosa Way 520,958 520.956 Catalina Gardens'/ 73-600 Catalma Way 17,687 934,102 951.789 las Serenas'/ 73315 Country Club Dr /1 2,817,900 2,817 900 CV SeH Help HousingNanous Location 1,173 1,173 Desert PaMd43-805 Monterey Are 1,046,987 1,006 987 San Tropez Apts 73373 Cwntry Club Or _ . _ _ Shadow Hdfs Estates 45-peep Canyon _ , _ _ Shadow Hills Estates 74-582 Deap Canyon _ _ _ _ Subtotal 35,374 14,07b,731 1,173 14,112,278 Santa Rosa Apartments S 72.178 72.178 Taos Palms 44-830n Las Palmas Ave 270,627 270.627 Portola Palms Moh�le Home Pk 43-� 55 Patda Ave 736, 025 736 025 Desert Rose SF Homes -- — — —425.170 — - — -- 425.170 Buddmg Horizons SF Homes 73-378 8 386 Rvyal Palms . _ Habitat Fa Humanitres _ Rebecca Road 42-662 842-740 251.171 --- 251.171 CalHornia Villas 77-107 Callfarna Aoe 587,605 2,386 569,991 Laguna Palms 73805 Santa Rosa Way 2,869,370 629 2,869.999 Hovey Gardens 74-507 42nd AveJ1 7,634,701 7,634,701 Candleewaf Shadav Mountan _ _ _ _ _ Villas on the Green 77-120 Calit pnve _ Canterta Phase 1 _ . . _ Pxific Assisted Lrving 73-685 Catalina Way 864 - - 864 74047 San Marino Cir 166,193 166.193 River Run One 44-555 San Raphael Ave - - - - Subtotal 12,155,671 838,232 3,016 12,996,916 TOTAL UNIT$ Palm Vdlage Apartrnents 73610 - 688 Santa Rosa WyfSubstanUaf Rehab 12 units-addRion d 24 urnls 1,050,680 177.001 1.227,681 Self Help Housing Merte SVeet - 18 Acre SFD 2,151,313 2,151.313 26 Un�t Renql Senia Hwsmg - Trans�timal Housmg 10,000 Subtotal 3,201,993 �T7,001 3,376,994 Adminlstradve Costs 7,733,334 7,733,334 Professional Serwces 1,115,487 1,115,487 HIP Program 24U,552 240.552 Subtotal 7,973,886 1,115,487 9,089,J73 TOTAL 23.366,824 14,913,963 1,2l6,676 39,677,66T •Indicates Smior Prqect "This is a Nole Receivable provided unde! a Developrrient Agreerr�ent and payments are ony due when there is Posilrve Nel Cash Flow from fhe properry wrth a balloon payrnent for all arnounts due in 30 years. ROSENOW SPEVACEK GROUP, INC. PAGE 26 RESOLUTION NO. 496 PAGE 73 OF 74 AFFORDABLE HOUSING STRATEGY & COMPLIANCE PALM DESERT REDEVELOPMENT AGENCY On May 15, 1991, the Riverside County Superior Court entered a final judgment incorporating a Stipulation for Entry of Judgment among the Agency, the Westem Center on Law and Poverty, Inc. and Califomia Rurat Legal Assistanoe in connection with litigation filed over the adoption of the Redevelopment Plan for Projed Area No. 1. On June 18, 1997 (Amendment No. 1) and again on September 20, 2002, (Amendment No. 2) the Court entered amendments to its 1991 judgment, incorporating Stipulations Amending Stipulation for Entry of Judgment. Under the terms of the Stipulation, as amended, tf�e Agency has generally agreed to use its 20 percent set aside funds, and other tax increment rsvenues, if necessary, to develop, rehabilitate, or otherwise financially assist a certai� number of affordable housing units and to meet certain housing needs of the City. TABLE 13 H�USING STIPULATIDN PRODUCTF�N NEEDS Income Housin Production R uirements Total Housin Re uirements Level Stipulation Produdion Future Construction Need Stipulation and Future R uired b 2006 Based on RHNA Construction Need Need Provided Deficiency Need Provided Defiaency Need Provided Deficiency Very Low 578 505 73 77 56 21 655 561 94 Low 505 453 52 67 71 -0 572 524 48 Moderate '122 194 -72 85 0 85 207 194 13 Total 1, 205 1,152 53 229 127 102 1,434 1, 279 155 Table 13 above details the Agency's progress to date in meeting the unit requirements of the Stipulation. Agency activities as outfined in this Strategy a� designed to meet the dual r�equirements of the Redevelopment Law's inclusionary housing produdion standards and the units required under the Stipulation. ROSENOW SPEVACEK GROUP, INC. PAGE 27 RESOLUTION NO. 496 A�011�1@ HOlISf1g �� C0111p1fd11C@ �1 Pafm Desert RedevelopmentAgency PAGE 74 OF 74 Because this Housing Strategy focuses on providing housing for very low, low and moderate income households who are generally the most difficult segment of the community for whom to provide housing, it is clearly consistent with the Housing ElemenYs goal to provide housing for all economic groups within the Projed Area. Both this Strategy and the Housing Element state there is a definite need to assure an adequate supply of housing for the lower income segments of the community. A major focal point of the goals, policies, and objectives of the Hvusing Element is to provide housing for all economic segments of the Project Areas, especially lower income families. Because the major goal of this Strategy is also to provide housing for these lower income households, and the proposed plans and programs for improving the supply of affordable housing in the Project Area presented in this Strategy are similar to plans and policies of the Housing Element, there is clearly consistency between this Compliance Plan and the Housing Element. ROSENOW SPEVACEK GROUP, INC. PAGE 28