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Home My Public Portal AboutA1986-08-29 LRA _sp Y ( r� i% � f ,� - ; u t. � � �.. �,` . . �;�� LYN�IVOOD REDEVELOPMENT AGEN�.Y . . � 113308ULLISROAD� LYNWOOD,CAUFORNIA90262 (213)603�0220 �PECI�L "1EETI°dG LYNk'00� CITY COUPJCIL APJD LYNaJ00D REDE�lELOP"-1ENT AGENCY FRIDAY, AUG!:ST 29, 19�6 S:�O F,f1, CITY NALL COlJNCIL CHA"!BERS ' AGENDA 1, CALL TO OitDER 2, R�LL �QLL OF: COUNCIC (�EMBERS AGENCY MEf�BERS ' - JOHN D� BYORK JOHN D� BYORK E, L� h10RRIS E, L� MORRIS EVELYN WELLS EVELYN WELLS ROBERT HENNING ROBERT HENNING . H� I I �°�1ATTE RS 1, TA;< INCREMENT SET-ASIDE FOR HOU�ING - LRA ACTIO�� CQM�h'ENTS : Pursuant to Health and Safety Code Sections 33336.2 and 33334.6 the Agency is required to set-aside 20� of its tax increment revenues for low and moderate-income housing. If the Agency determines that this requirement can not be met, the Agency must make the necessary findings after holding a public hearing before September 1, 1986. . R rOMMENDATTON: � Actopt the attached resolutions making the necessary findings af.ter consideration of public testimony. (Attachments) Z� TAX INCREMENT SET FOR HOUSIPdG - CITY COUNCIL ACTION �OMMENTS: The AgenCy.h88 �aYepared a Statement of Existing Obligations, Projects, Programs and Activities pursuant to nea2tn anc Safety Code Section 33334.6. The Agency will consider approval and adoption of the Statement on Auqust 29, 1986 after consideration of public testimony. fiealth and Sa£ety :.ode Section 33334.6 requires that the legislative body (The City Council) maintain record of the required public hearing for the adoption of the referenced Statement. : • � R�COMMENDATICN: Acknowledge receipt of the Statement and concur with LRA's action. (No Staff Report Attached) _.. ADJOURN!�?ENT_:_ MOTION TO ADJOURN TO A REGULAR MEETING OF THE LYNWOOD CITY COUNCIL AfVD THE LYN4VOOD REDEVELOPMENT AGENCY, TO $E HELD ON SEPTEMBER 2, 1936 IN THE COUMCIL CHAP?BERS OF CITY HALL, 1135� BULLIS ROAD, LYN�rlOOD, CALIFORNIA� f 1 • � � DATE: AUGUST 29, 1986 TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY FROM: Vicente L. Mas, Director U��/�/ Community Development Department SUBJECT: TAX INCREMENT SET-ASIDE REQUIREMENTS FOR HOUSING PURPOSE: To request that the Agency hold a public hearing to consider the adoption of resolutions making findings on the Agency's obligation to set-aside tax increment funds for low and moderate income housing. FACTS: • 1. California Health and Safety Code Sections 33334.2 and 33334.6 require the Agency to set-aside 20� of its tax increment revenues for a Low and Moderate Income Housing Eund for each project area on an annual basis. This requirement is_applicable to all project areas adopted prior to January 1, 1977. The set-aside requirement applies to the Alameda Project Area and it may also apply to the Pre 1977 Project area "A" even though the Agency made the Section 33334.2(a) findings in 1980: Ordinance 1111, Section 4(j), (12/16/80). • 2. The annual set-aside requirement must be met unless certain findinqs are made pursuant to Sections 3334.2 and 33334.6 for both project areas. These findings must be made before September 1, 1986. 3. Three principal exceptions apply to the set-aside requirement. These exceptions are the following. a) The Agency can make the required findings in Section 3334.2 that (1) no need exist in the community to increase the supply of low and moderate income housing, (2) less than 20� is needed to meet the housing needs or (3) a substantial effort to meet low and moderate income housinq needs in the community is being made and that this effort is equivalent in impact to the funds which would otherwise be required to be set-aside pursuant to Section 3334.2. b) The Agency can make the required findings in Section 33334.6(d). No.amount (or a lesser amount) need be set-aside if the tax increment is needed for debt service on established obligations existing prior to January 1, 1986. c) The Agency can make the required findings in Section 33334.6(e). The Agency need not provide the 20% set- aside for its pre 1977 plans if the Agency finds that it.,needs its full increment to provide for orderly and timely completion of public and private projects, a programs or activities approved prior to January l, 1986. 4. The Agency's obligation to meet the set-aside requirement may be precluded by making the appropriate findings pursuant to Sections 33334.2 and 33334.6(e) referenced above. a) Section 33334.2 Findings. � Notwithstanding the adoption of Ordinance 1111 referenced above applicable � to Proj� Area "A", 1980 Amendmen2',' staff has determined that a substantial effort to meet low and moderate income housing needs in Lynwood is being made through the allocation of Community Development Block Grant Funds (.CDBG) for housing rehabilitation and public improvements in residential neighborhoods. The amount of CDBG funds allocated for the referenced purpose for the 1986-87 fiscal year, $449,487, is equivalent in impact to the tax increment funds required to be set-aside for the same purpose, $33,302, for both project areas. b) Section 33334.6(e) Findinqs Staff has prepared a statement (Attached) listing all existing obligations, projects, programs and activities approved prior to January 1, 1986, for Project Area "A" and the Alameda Project Area. The identified existing obligations, projects, programs and activities are necessary for the orderly completion of the Redevelopment Plans for both project areas, and staff has determined that the existing obligations may preclude the Agency from meeting its set-aside obligations. . ANALYSIS AND CONCLUSIONS: If the Agency determines that the low an dmoderate housing needs ' which would be satisfied through utilization of the set-aside are already being met through the commitment of other existing resources, ie: Community Development Block Grant Funds, the Agency must make the necessary findings in compliance with Section 33334.2 of the Health and Safety Code. If the Agency further determines that there exists exceptions to meet the referenced set-aside requirements as result of the Agency's existing obligations, the Agency must make the necessary finding in compliance with Section 33334.6(e) of the Health and Safety Code. These findings must be made after holding a public hearing before September 1, 1986. Pursuant to Health and Safety Code the public hearing has been duly noticed and the Statement made available for public inspection. • RECOMMENDATION: Staff respectfully requests that the Agency conduct the public hearing and after consideration of the public testimony adopt the attached resolutions entitled: 1. A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33334.2 and 2. A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY APPROVING AND ADOPTING STATEMENT OF EXISTING OBLIGATIONS, PROJECTS, PROGRAMS AND ACTIVITIES OF THE PROJECT AREA "A" AS AMENDED. � � STATEMENT OF EXISTING OBLIGATIONS AND EXISTING PROJECTS, PROGRAMS, AND ACTIVITIES r - The Lynwood Redevelopment Agency ("Agency") has prepared this Statement of Existing Obligations, Projects, Programs and Activities of the Project Area A and the Alameda Redevelopment Project (the "Statement") for submittal to the California Department of Housing and Community Development in accordance with Health and Safety Code Section 33334.6. This statement describes existing obligations and specif�.c private and public projects, programs, and activities approved prior to January 1, 1986, and which are necessary for the orderly completion of the Redevelopment Plans for Project Area A and the Alameda Redeve�lopment Area. The obligations listed below preclude the Agency from depositing the twenty percent (20$) of tax increment to the Low and Moderate Housing Fund as permitted by Health and Safety Code Section 33334.6(e) for project Area A. The obligations for the Alameda Project may preclude the Agency from depositing the full 20$ set aside of tax increment to the Low and Moderate Housing Fund. The following obligations, projects, programs, and activities have been determined to be necessary for the orderly completion of the Redevelopment Plans for the two project areas. THE ITEMS LISTED BELOW ARE ON FILE WITH THE LYNWOOD REDEVELOPMENT AGENCY AND ARE INCORPORATED HEREIN BY REFERENCE AS PUBLIC RECORDS. Project Area A, • 1. Thp Agency previously issued $2,000,000 in Tax Allocation Bonds, Series 1976, (issued July 15, 1976) of which $1,605,000 is outstanding. The average annual debt service is estimated to be . $175,000. The obligation will be repaid in full July 15, 2001. 2. The Agency proposes to issue $3,750,000 in Tax Allocation Bonds, Series 1986, on August 19, 1986. The average annual debt service is estimated' to be $300,000. The obligation will be paid in full July 15, 2003. � 3. The Agency and City entered into an agreement on September 26, 1985 for certain public works capital improvement projects. Pursuant to said agreement certain parking facilities and street improvements were determined to be of benefit to the project area. 4. The Agency and City entered into an agreement on April 17, 1984. Pursuant to said agreement the following has been agreed upon: services to be provided, compensation by the Agency for services rendered, method of payment, city aid and assistance, administrative fund, redevelopment revolving fund, Agency offices, Agency by-laws and regulations. 5. The Agency has acquired property at 3218 and 3224 Mulford and 11333 and 11335 Court Street on an installment basis. The total cost for the property is $465,763.96. Payments still 1 . � � outstandinq total $260,847. The obligation will be paid in full on December 10, 1990. � 6.� The Agency has•acquired property at 11221 Peach Street on an installment basis. The total cost for the property is $556,733. . The outstanding balance on the property is $133,951, which will be paid in full on October 1, 1986. 7. The Agency has been negotiating (since November 1985) for property at 11245 - 11275 Peach Street. It is estimated the acquisition will cost the Agency $295,000. 8. Gallowav/Engel Development The Agency entered into a disposition and development agreement with Imperial Highway and Long Beach Associates on June 4, 1985. ` The developer will build a 12,000 sq. ft. neighborhood shopping center at the north east corner of Imperial Highway and Long Beach Boulevard. The estimated cost for property acquisition and relocation (Phillips & Kelly) is $380,000. .- . 9. �nwood Town Center Proiect On March 27, 1984, the Agency entered into an exlusive negotiating agreement with the Hopkins Development Company to develop a 114,000 square foot community shopping center. The project is located at the southwest corner of Imperial Highway and Long Beach Boulevard. A disposition and development agreement was entered into on February 24, 1986. Outlined below are the costs attendant to this development: A. A portion of the land in the project area is owned by the City. The Agency aqreed to purchase the land from the City at a cost of $634,784. In addition, the Agency has agreed to relocate the corporate yard, which sits on a portion of this land. The estimated cost is $2,000,000. B. Pursuant to the provisions of the'DDA, The Agency is in the process of acquiring two parcels iSante Fe Pacific Realty Corporation - Parcel #6171 - 6-804 and H and H Products - 3208 Sanborn Avenue). The estimated acquisition and relocation costs are $776,392 for both properties. ALAMEDA PROJECT AREA A 1. The Agency and City entered into an agreement on April 17, 1954. Pu.rsuant to said agreement the following has been agreed upon: services to be provided, compensation by the Agency for services rendered, method of payment, City aid and assistance, administrative funds, redevelopment revolving funds, Agency offices, Aqency by-laws and regulations. ' z � � * 2. ERC - Owner Participation Agreement � On April 5, 1982 the Agency and the Economic Resources Corporation (ERC)entered into an agreement for reimbursement of costs incurred by ERC for the provision of public improvements (Enterprise Way) to allow for expansion of ERC's Industrial Park. The amount of the outstanding obligation is $425,000. 3. Water Main Project On �Tune 23, 1983, the City and Agency entered into a reimbursement agreement whereby the City would aonstruct water mains on Alameda Street between Lynwood Road and Imperial Highway , on Alameda Street between Butler and Lynwood.Road and on Lynwood Road between Alameda Street and Bellinger Street, and the Agency would reimburse the City for the costs incurred. The outstanding obligation is $185,900. 3 � � LRA RESOI�UTION NO. =: ; A RESQT�iJTION OF TElE LYNWOOD REDEVE7APMENT AGIIVCY APPROV7SiG AND ADOPTING STATEN�7TS OF EXISTING OBLIGATI�IS, PF�7ECT5, PROGRFIMS AND ACTIVITIES OF THE PRQ7ECP ARE11 "A" AS 11MENDED WI3EREAS, the Lynwoocl Redevelo�anent Agency {"Agency") is carrying out a program and activities for the Project Area "A"; and Wf�REAS, Health and Safety Code Section 33334.6 generally requires that the Agency deposit tax increment pro�eds to the Low and Moclerate income f3ousing F�md for each Project on an annual basis with certain exceptions for existing obligations and programs; and Wf�REAS, the Agency has prepared for the Project Area "A" a Staten�nt of F�cistinq Obligations and L'xisting Projects, Pra3rams, and Activities ("Statement") for the Project which is to be the subject of a public hearing; and ' WI�RE�S, the Agency on this date conducted a duly-noticed public hearing at which the approval and adoption of the Statement for the Project was considered; and • , WHEREAS, based upon the staff report and any and all oral and written testitmny and other evidence.presented at the public hearing, the Agency desires to approve the Statement of obligations, projects, programs, or activities. NOW, Tf�REFORE, the Lynwood Redevelognent Agency does hereby resolve and determine as follaas: Section 1 . The Agency finds and determines that the state�rent sets forth obligations, projects, programs and activities existing on and created prior to Januaxy 1, 1986. Such finding and detezmination is based upon the staff report. and all written and oral evidence presented at the public hearing held in association with this matter. ' • Section 2 . The Agency approves and adopts the Stateme�zt and all . abligations, projects, programs and activities set forth therein Section 3 . If any portion of this Resolution is set aside, annulled, or held invalid, this shall not affect the validity of the r�naining portians of this Resolution. Section 4 . The Director of the Agency is authorized and directed to transmit a copy of this Resolution to the Californi.a Department of Housing and CcRmunity DeveloFment. Section 5 . The Agency Secretasy shall certify to the passage and adoption of this Resolution and the same shall thereupon take ef£ect and be in force. ADOP7'ID this day of . 1986. I3�BEFd' F�7NING, Chairi[�n Lynwood Redevelo�ment Agency � � ATTEST: APPEtOVID AS TO �N'I�IT: ANDREA L. HOOPER, Secretary L. MAS, Director Lynwocd Redevelognent Agency Cca[irninity Develo�anent Depai. APPROVED AS TO FOEd�I: General Counsel - Accounting Manaqer . � � LRA RESOLi]TION NO. RESOLU'iION OF Tf� LYNf�700D REDEVEIAPMENT AGIIVCY MAKING CEKCAIN FIIQDINGS PURSUA1Vr TO F�:ALTH AND SAFETY CODE SEGTION 33334.2 Wf�RE11S, the California Health and Safety Code Section 33334.2 requires redevelognent agencies to set-aside not less than 20% of all taxes which are allocated to the Agency for the puxposes of increasing and improving the carmnmity's supply of laa and moderate incrn� housing available at afforclable housing crosts, unless certain findings are made; and _ WHEREAS, the Aqency has received evidenoe which makes it appropriate to make certain findings in this connection; NOW, Tf�FtEFORE, BE.IT RESOLVID by the Lyinaood Redevelopirnnt Agency as follows: Section 1 . Based ux�on the staff report and all written and oral �terial presented in conjtmction with this Resolution, the Lynwvod Redevelognent Agency hereby finds that a effort to meet laa and r.�erate inccec�e housing needs in the City of Lynwood is being made, and that this effort, including the obligati� of fwzds currently available for the benefit of the Commuiity fran State, local and federal sources (including Conmunity Develo�nt Block Grant Funds) for laa and moderate inccane housing exclusive of taxes allocated pursuant to the redevelopment law is ec��alivant to impact to the amoimt of funds.othezwise r� to be set-aside pursuant to section 33334.2 of the Health and Safety Code equal $33,302. 'I'he City is currently e�iding fran State, local and federal sources on an annual basis $449,487, which is in excess of the impact of the funds othexwise required to be set-aside pursuant to the California Redevelogrnnt Law. Section 2 . The Secretary of the Agency shall transmit to the Department of Housinq and Cacmunity Develognent a capy of this Resolution, together with the staff report presented in connecti� herewith. Section 3 . If any portion of this Resolution is set aside, annulled, or held invalid, this shall not affect the validity of the remaininq L �.ortions of this Resolution. Section 4 . The Director of tlie Agency is authorized and directed to transmit a copy of this Resolution to the California Depaxi��nt of Housing and Cc�mnuiity Develog�nt. ' Section 5 . The Agency Secretasy shall certify to the passage and adopticn of this Resolution and the same shall thereupon take effect and be in force. ADpPTED this day of , 1986. 1�BEKP FiF�iING, Chairn�"uz Lyrnaood RPdevelognent Agency ATPEST: APPFi(7VID AS TO CONPENT: • _�� ANDREI� L. IIOOPER, Secretary �FI. L. . , Director Lyinaaxi Redevelo�xnent Agency C�munity DeveloFcnent Department APPF3�VED AS TO FOFdK: General Counsel ' Accounting :Nanager �