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ARA2004-15RESOLUTION NO. ARA 2004 — 15 RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY ADOPTING THE 2005 -2009 IMPLEMENTATION PLAN FOR THE ANAHEIM MERGED PROJECT AREA IN ACCORDANCE WITH SECTION 33490 OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW, AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH WHEREAS, the Anaheim Redevelopment Agency ( "Agency ") is a community redevelopment agency organized and existing under the California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ( " CCRL ") and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City of Anaheim ( "City Council "); and WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the Redevelopment Plans for the Anaheim Merged Project Area in the City of Anaheim, which includes the following constituent areas: (i) the Redevelopment Plan for the Redevelopment Project Alpha, which was adopted by Ordinance No. 3190 on July 19, 1973, and thereafter amended eight times to delete territory from the original project area, modify land uses, and establish fiscal and time limits in compliance with Assembly Bill 1290, Senate Bill 1045, Senate Bill 211 and other provisions of the CCRL, and most recently amended on May 25, 2004 to merge the Alpha project area with the Agency's five other project areas, (ii) the Redevelopment Plan for the River Valley Redevelopment Project, which was adopted by Ordinance No. 4463 on November 29, 1983, and thereafter amended six times to modify land uses and establish time limits in compliance with Assembly Bill 1290, Senate Bill 1045, Senate Bill 211 and other provisions of the CCRL, and most recently amended on May 25, 2004 to merge the River Valley project area with the Agency's five other project areas, (iii) the Redevelopment Plan for the Plaza Redevelopment Project, which was adopted by Ordinance No. 5136 on June 13, 1990, and thereafter amended three times to establish time limits in compliance with Assembly Bill 1290, Senate Bill 1045, Senate Bill 211 and other provisions of the CCRL, and most recently amended on May 25, 2004 to merge the Plaza project area with the Agency's five other project areas, (iv) the Redevelopment Plan for the Commercial /Industrial Redevelopment Project, which was adopted by Ordinance No. 5415 on December 21, 1993, and thereafter amended three times to establish time limits in compliance with Assembly Bill 1290, Senate Bill 1045, Senate Bill 211 and other provisions of the CCRL, and most recently amended on May 25, 2004 to merge the Commercial /Industrial project area with the Agency's five other project areas, (v) the Redevelopment Plan for the Brookhurst Commercial Corridor Redevelopment Project, which was adopted by Ordinance No. 5412 on December 7, 1993 and subsequently amended four times to add territory to the project area, rename the project area to the West Anaheim Commercial Corridors Redevelopment Project, establish time limits in compliance with Assembly Bill 1290, Senate Bill 1045, and other provisions of the CCRL, and most recently amended on May 25, 2004 to merge the West Anaheim Commercial Corridors project area with the Agency's five other project areas, and (vi) the Redevelopment Plan for the Anaheim Stadium Redevelopment Project, which was adopted by Ordinance No. 5442 on August 9, 1994, and thereafter amended once on May 25, 2004 to merge the Stadium project area with the Agency's five other project areas (collectively all of the foregoing redevelopment plans and redevelopment project areas are herein referred to as the "Redevelopment Plans" and the "Anaheim Merged Project Area ", respectively); and F.. \DOGS \ADMIMST.AFFREP \SMS4C06C Final 10-14-04 Imp Plan Reso. DOC WHEREAS, Section 33490 of the CCRL provides that on or before December 31, 1994, and each five years thereafter, every redevelopment agency that has one or more redevelopment plan(s)adopted prior to December 31, 1993 shall prepare, consider, and adopt after a public hearing, an implementation plan that contains the specific goals and objectives of the agency for the project area(s), 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 area(s), and a description of how the agency's housing program will implement the requirement for the housing fund expenditures; and WHEREAS, pursuant to CCRL Section 33490 (b) an agency may adopt an implementation plan that includes more than one project area; and WHEREAS, on December 13, 1994 by Agency resolution and in conformity with the requirements of CCRL Section 33490 (a), the Agency approved its first implementation plan for the first five -year period entitled "AB 1290 Implementation Plan for All Project Areas ", which contained specific goals and objectives of the Agency for all then existing project areas and each respective redevelopment plan, including potential projects and estimated expenditures then proposed to be made during the term of said plan; and WHEREAS, on December 7, 1999 by Agency resolution and in conformity with the requirements of CCRL Section 33490 (a), the Agency approved the "Second Five Year AB 1290 Implementation Plan" for all then existing project areas, which contained specific goals and objectives of the Agency for the project areas and each respective redevelopment plan, including potential projects and estimated expenditures then proposed to be made during the tem of said plan; and WHEREAS, the Agency has caused to be prepared a draft third implementation plan entitled "2005 -2009 Five -Year Implementation Plan for the Anaheim Merged Project Area ", and has made such plan available for public review, provided the public an opportunity to review and comment on such plan, and held a duly noticed public hearing providing all interested persons an opportunity to present or submit oral and /or written testimony concerning the 2005 -2009 Five -Year Implementation Plan for the Anaheim Merged Project Area; and WHEREAS, the Agency has reviewed and evaluated the 2005 -2009 Five Year Implementation Plan for the Anaheim Merged Project Area and has received and considered the oral and written testimony from the public in connection with its consideration of and action on such plan; and WHEREAS, in conformance with CCRL Section 33490 (d) notice of the public hearing was 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, posted in at least four permanent places within the Merged Project Area for a period of three weeks, and completed such publication, mailing, and posting not less than ten (10) days prior to the public hearing; and WHEREAS, the Agency by this Resolution desires to complete its evaluation and review and approve the 2005 -2009 Five -Year Implementation Plan for the Anaheim Merged Project Area, which is attached hereto as Exhibit "A" and fully incorporated by this reference. F. \DOC S \ADMIN \STAFFREP \SNIS4C06C Final 10 -14 -04 Imp Plan Reso DOC NOW, THEREFORE, THE ANAHEIM REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS: Section 1. The Agency finds the above Recitals are true and correct and are made a substantive part of this Resolution. Section 2. The Agency has duly undertaken the review and evaluation of the 2005 -2009 Five -Year Implementation Plan for the Anaheim Merged Project Area. Section 3. The 2005 -2009 Implementation Plan for the Anaheim Merged Project Area is approved and adopted as the CCRL 33490 implementation plan for the next five -year period. Section 4. The Agency Secretary/City Clerk shall certify the approval of this Resolution and a copy of 2005 -2009 Implementation Plan for the Anaheim Merged Project Area shall be placed in the City Clerk's records and in the official files of the Agency. PASSED, APPROVED AND ADOPTED the 14th December 2004. Agency Chairman ATT ST: 1 Agency Se etary AYES: Chairman Pringle, Agency Members Chavez, Sidhu, Hernandez, Gallowav NAYS: None ABSENT: None ABSTAIN: None F. \DOGS \ADMIN \ST.AFFREP \SMS4C06C Final 10 -14 -04 Imp Plan Reso. DOC EXHIBIT "A" 2005 -2009 IMPLEMENTATION PLAN FOR THE ANAHEIM MERGED PROJECT AREA [See attached] DOCSOC/ 108143 5v2/22621 -0000 2005 -2009 IMPLEMENTATION PLAN FOR THE ANAHEIM MERGED REDEVELOPMENT PROJECT AREA PREPARED FOR THE ANAHEIM REDEVELOPMENT AGENCY December 2004 TABLE OF CONTENTS I . INTRODUCTION .................................................................................. ..............................1 A. PURPOSE OF IMPLEMENTATION PLAN ....................................... ..............................1 B . BACKGROUND ................................................................................ ..............................2 1. Redevelopment Project Alpha ......................................................... ............................... 2 2. River Valley Redevelopment Project ............................................... ............................... 2 3. CommerciallIndustrial Redevelopment Project ............................... ............................... 4 4. Plaza Redevelopment Project ......................................................... ............................... 4 5. West Anaheim Commercial Corridors Redevelopment Project ....... ............................... 4 6. Anaheim Stadium Redevelopment Project ...................................... ............................... 5 C. AGENCY ACCOMPLISHMENTS ..................................................... ..............................5 II. REDEVELOPMENT COMPONENT .................................................... ..............................9 A. GOALS AND OBJECTIVES ............................................................. ..............................9 1. Business Attraction and Retention .................................................. ............................... 9 2. Rehabilitation of Deteriorated and Obsolete Structures for Contemporary Use ............. 9 3. Provide for a Range of Small, Neighborhood and Regional Serving Businesses .......... 9 4. Increase, Preserve, Rehabilitate and Develop Affordable and Market Rate Housing........................................................................................... .............................10 5. Improve Infrastructure and Public Facilities including Increased Recreation and OpenSpace .................................................................................... .............................10 6. Proactively Plan for the Attainment of Goals and Blight Elimination ............................10 B. MERGED PROJECT AREA PROJECTS AND PROGRAMS .......... .............................11 1 . Programs ......................................................................................... .............................11 2 . Projects ............................................................................................ .............................15 C. BLIGHT ELIMINATION .................................................................... .............................20 1 . West Anaheim ............................................................................... ............................... 22 2 . Central Anaheim ............................................................................ ............................... 23 3 . Eastern Anaheim ........................................................................... ............................... 26 D . FINANCING ..................................................................................... .............................28 1. Sources of Total Revenues ........................................................... ............................... 28 2. Estimated Total Expenditures ........................................................ ............................... 29 E. SUMMARY OF THE REDEVELOPMENT COMPONENT ............... .............................32 III. HOUSING COMPONENT ................................................................... .............................34 A. IMPLEMENTATION PLAN REQUIREMENTS ................................ .............................34 1. Production of Housing Based on Activities in the Merged Project Area ....................... 35 2. Set -Aside and Expenditure of Tax Increment for Housing Purposes ........................... 35 B. HISTORICAL AFFORDABLE HOUSING ACTIVITIES .................... .............................36 1. Inside the Merged Project Area ..................................................... ............................... 36 2. Outside the Merged Project Area .................................................. ............................... 36 Anaheim Redevelopment Agency - Implementation Plan for the Anaheim Merged Redevelopment Project Keyser Marston Associates, Inc. 2005 to 2009 Page PA0409013.ANA:PA:gbd 10021.007.001/12/03/04 C. APPLICABLE LOW AND MODERATE INCOME HOUSING REQUIREMENTS .........37 1. Replacement Housing Obligation .................................................. ............................... 37 2. Inclusionary Housing Obligation .................................................... ............................... 43 D. APPLICABLE DEPOSIT AND EXPENDITURE PROVISIONS ....... .............................49 1. Set -Aside of Tax Increment ........................................................... ............................... 49 2. Proportional Expenditures of Housing Fund Monies ..................... ............................... 49 3. Excess Surplus Calculation ........................................................... ............................... 52 E. HOUSING GOALS AND OBJECTIVES OF THE IMPLEMENTATION PLAN ..............54 1. Housing Fund Resources and the Housing Program .................... ............................... 54 2. Summary of Planned Housing Activity .......................................... ............................... 59 F. CONCLUSION ................................................................................. .............................60 FIGURES FIGURE 1: MERGED PROJECT AREA FIGURE 2: PLANNING AREA ............. Anaheim Redevelopment Agency - Implementation Plan for the Anaheim Merged Redevelopment Project ..3 21 Keyser Marston Associates, Inc. 2005 to 2009 Page ii PA0409013.ANA:PA:gbd 10021.007.001/12 /03/04 TABLES 1 through 4 TABLE 1: TOTAL ANTICIPATED REVENUES 2005 -2009 (FISCAL YEARS 2004 -05 THROUGH -09) .......................................................................... .............................29 TABLE 2: TOTAL ANTICIPATED EXPENDITURES 2005 -2009 (FISCAL YEARS 2004 -05 THROUGH -09) .......................................................................... .............................30 TABLE 3: TOTAL ESTIMATED REDEVELOPMENT PROGRAM COSTS 2005 -2009 (FISCAL YEARS 2004- 05 THROUGH 2008 -09) ..................................................................... .............................32 TABLE 4: ELEMENTAL RELATIONSHIP OF IMPLEMENTATION PLAN ....................... .............................33 TABLES H -1 through H -10 TABLE H -1: HISTORICAL REPLACEMENT HOUSING OBLIGATION ANALYSIS ............................ TABLE H -2: REPLACEMENT HOUSING FULFILLMENT ANALYSIS ............... ............................... TABLE H -3: REPLACEMENT HOUSING SURPLUS /( DEFICIT) ..................... ............................... TABLE H -4: HISTORICAL RESIDENTIAL DEVELOPMENT WITHIN THE MERGED PROJECT AREA (1983 -2004) ......................................................................... ............................... TABLE H -5: FUTURE RESIDENTIAL DEVELOPMENT WITHIN THE MERGED PROJECT AREA (2005 -2029) ......................................................................... ............................... TABLE H -6: INCLUSIONARY HOUSING OBLIGATION ................................ ............................... TABLE H -7: INCLUSIONARY HOUSING FULFILLMENT ANALYSIS ............... ............................... TABLE H -8: FUTURE HOUSING SET -ASIDE FUND EXPENDITURES (1/1/2002 — 12/31/2014) .. TABLE H -9: HOUSING SET -ASIDE FUND ANALYSIS (FY 2004/05 — 2013/14) ........................ TABLE H -10: HOUSING SET -ASIDE FUND ANALYSIS (IMPLEMENTATION PLAN) ....................... Anaheim Redevelopment Agency - Implementation Plan for the Anaheim Merged Redevelopment Project 39 41 42 44 45 47 48 51 53 55 Keyser Marston Associates, Inc. 2005 to 2009 Page iii PA0409013.ANA:PA:gbd 10021.007.001/12 /03104 2005 -2009 IMPLEMENTATION PLAN FOR THE ANAHEIM MERGED REDEVELOPMENT PROJECT AREA I. INTRODUCTION A. PURPOSE OF IMPLEMENTATION PLAN This document is the five -year Implementation Plan ( "Plan ") for the Anaheim Merged Redevelopment Project Area ( "Merged Project Area "). The Implementation Plan was prepared by the Anaheim Redevelopment Agency ( "Agency ") in compliance with Article 16.5 of the California Community Redevelopment Law ( "CRL "). The Implementation Plan is composed of two separate components, a Redevelopment Component and a Housing Component. The Redevelopment Component describes the Agency's near -term goals and objectives for blight elimination and the programs and projects to eliminate blight. The specific projects to be implemented may vary depending on available revenues and developer /owner participation. The Implementation Plan also identifies the anticipated expenditures for the programs and projects. Finally, the Redevelopment Component describes the relationship between the goals and objectives, projects, programs and expenditures and blight elimination. Article 16.5 also requires that an Implementation Plan explain how the components of the Implementation Plan will implement various CRL requirements regarding low and moderate income housing. Generally, the goals, activities, and expenditures included in the Redevelopment Component do not implement the housing requirements of the CRL. The activities that do implement these requirements are contained in the Housing Component. The Housing Component shows how the Agency will meet the statutory requirements for the Housing Set -Aside and expenditure of tax increment for housing purposes. The Implementation Plan is a policy statement rather than an unalterable course of action. It has been prepared to set priorities for redevelopment activities within the Merged Project Area for the five -year period covered by this Plan and incorporates currently known financial constraints of the Agency in developing a program of activities to accomplish essential, near - term revitalization efforts for the Merged Project Area. However, new issues and opportunities may be encountered during the course of administering redevelopment within the Merged Project Area during the five -year period. Therefore, this Implementation Plan may be amended if necessary to effectuate its purposes. The purpose of the Implementation Plan is to provide a clear and reasonable statement of the Agency's current intent regarding activities in the Merged Project Area and to establish a nexus between Agency goals and objectives, program activities, projects and the purpose of Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 1 PA0409013.ANA:PA:9bd 10021.007.001/12 /03/04 redevelopment which is to eliminate blight and to develop, preserve and rehabilitate affordable housing. B. BACKGROUND The Agency is in charge of implementing redevelopment within the City of Anaheim ( "City "). The City has one redevelopment project area, the Anaheim Merged Redevelopment Project Area. The Merged Project Area contains approximately 4,968 acres and comprises approximately 16 percent of the total acres located in the City. The Merged Project Area was previously composed of six (6) separate redevelopment project areas adopted over the past 30 years. On May 25, 2004, by Ordinance Nos. 5913, 5914, 5915, 5916, 5917 and 5918, the separate projects were merged into the Anaheim Merged Redevelopment Project Area. The six constituent project areas that make up the Merged Project Area include the Alpha, River Valley, Commercial /Industrial, Plaza, West Anaheim Commercial Corridors and the Anaheim Stadium Redevelopment Projects. Figure 1 shows the boundaries of the Merged Project Area. The following is an overview history of redevelopment within the constituent Redevelopment Project Areas prior to merger. Redevelopment Project Alpha The Redevelopment Project Alpha was adopted by the City Council on July 19, 1973, by Ordinance No. 3190. The area was comprised of two (2) non - contiguous areas including 200 -acre area in the Downtown and 2,169 -acre area located in the City's primary industrial area, three miles northeast of Downtown. The Downtown area is bounded by Cypress Street on the north, Harbor Boulevard on the west, East Street on the east, and Broadway on the south. The industrial area northeast of Downtown (Northeast Industrial Area) is generally bounded by the 57 Freeway on the west, Orangethorpe Avenue on the north, La Palma Avenue on the south, and Imperial Highway on the east. Land uses within the area are generally designated general commercial and general industrial. 2. River Valley Redevelopment Project The River Valley Redevelopment Project was adopted by the City Council on November 29, 1983, by Ordinance No. 4463. The area was comprised of 160 acres located near Anaheim's eastern City limit. Major roadways traversing this project area include the 91 Freeway, Weir Canyon Road, and La Palma Avenue. Land uses within the area are designated general commercial, general industrial, residential and open space. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 2 PA0409013.ANA:PA:gbd 10021.007.001/12/03/04 Q w Q U w O w CL 0 w O cr- w T- 2 ww D_ CD z _z wQ 3. Commercial /Industrial Redevelopment Project The Commercial /Industrial Redevelopment Project was approved and adopted by the City Council on December 21, 1993, by Ordinance No. 5415. The area consisted of 882 acres and was comprised of two (2) non - contiguous areas, the North Central Industrial Area (405 acres) and the South Anaheim Boulevard Commercial /Industrial Corridor (477 acres). The North Central Industrial Area was generally bounded by La Palma Avenue on the south, Harbor Boulevard and Lemon Street on the west, Orangethorpe Avenue on the north, and East Street on the east. The South Anaheim Boulevard Commercial/ Industrial Corridor included the businesses fronting along the length of Anaheim Boulevard from Broadway on the north to Orangewood Avenue on the south, as well as a heavy industrial zone generally bounded by Santa Ana Street on the north, Olive Street on the west, Vermont Street on the south and East Street on the east. Land uses designated within the area included residential, general commercial, commercial professional, general industrial, and business office /service /industrial. 4. Plaza Redevelopment Project The Plaza Redevelopment Project was approved and adopted by the City Council on June 12, 1990, by Ordinance No. 5136. The area was comprised of 350 acres located near the central portion of the City and is bisected by Interstate 5. Primary uses in the area included commercial, retail, office, and industrial land uses. However, the area north of Interstate 5 where the Plaza "power center" is located is developed with retail, office and light industrial uses. The area to the south of Interstate 5 is generally developed with heavy industrial uses intermixed with retail and light industrial uses. 5. West Anaheim Commercial Corridors Redevelopment Project The West Anaheim Commercial Corridor Redevelopment Project included two areas, the original 316 -acre Brookhurst Commercial Corridor Redevelopment Project (adopted by the City Council on December 7, 1993, by Ordinance No. 5412), encompassing the commercial corridor of Brookhurst Avenue between La Palma and Orange Avenues, and 731 acres of frontage along the commercial corridors in the West Anaheim area located south of the Santa Ana Freeway, generally between Magnolia and Knott Avenues. Streets within the West Anaheim area included Lincoln Avenue, Knott Avenue, Magnolia Avenue, Western Avenue, Orange Avenue, W. La Palma Avenue, S. Beach Boulevard, and Ball Road. The 731 -acre West Anaheim area was added to the Brookhurst Avenue Redevelopment Project on June 23, 1998, by Ordinance No. 5637, and the combined area was renamed the West Anaheim Commercial Corridors. General Plan land uses along Brookhurst included residential, general commercial, commercial professional, general industrial, and public. The General Plan land use designations in the balance of the West Anaheim Commercial Corridors area included residential, general commercial, Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 4 PA0409013.ANA: PA: gbd 10021.007.001/12 /03/04 commercial professional, general industrial and public. 6. Anaheim Stadium Redevelopment Project The Anaheim Stadium Project Area contained 159 acres of land including Anaheim Stadium facility and surrounding parking areas owned by the City. A recovery plan was adopted for the Anaheim Stadium Redevelopment Project by the City Council on August 9, 1994, by Ordinance No. 5442, in response to damage caused by the Northridge earthquake on January 17, 1994, pursuant to the Community Redevelopment Financial Assistance and Disaster Project Law, Section 34000 et seq. of the Health and Safety Code. C. AGENCY ACCOMPLISHMENTS The Agency has been actively involved in community redevelopment since the adoption of the Redevelopment Plan for Project Alpha in 1973. Since that time, the Agency has consistently focused on the elimination of blight, facilitation of economic development, and improving, increasing, preserving and maintaining affordable housing. In all, the Agency has invested hundreds of millions of public dollars to facilitate commercial, residential and public infrastructure projects, which has resulted in excess of billions of dollars in private development in the Merged Project Area. The following is a summary of the Agency's recent accomplishments: ➢ Construction of 770,000 square feet of new commercial space and rehabilitation of 127,000 square feet of commercial space; ➢ Construction of 993,000 square feet of new industrial space and rehabilitation and expansion of 704,000 square feet of industrial space; ➢ Caused the creation of 5,300 new jobs as a result of redevelopment activities; and ➢ Caused rehabilitation and /or development of 1,838 affordable housing units within and outside of the Merged Project Area. The most recent notable accomplishments include the following completed and /or ongoing projects: Tyrol Plaza — 59 -unit affordable senior project under construction. Historic Broadway Homes — Restoration of three single - family homes underway. Linbrook — Completed 81 -unit senior affordable housing project. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 5 PA0409013.ANA: PA: gbd 10021.007.001/12 /03/04 • Solara Court — Completed 132 -unit senior affordable housing project. • Casa Alegre — Completed 22 -unit affordable special needs housing project. • Brookfield Homes — 32 single - family attached and 50 detached units under construction. • Cantada Lane (President's Tract) — DDA and design complete for an affordable for -sale 28 -unit townhome project. • John Laing Homes — 36 affordable attached and 20 single - family for -sale units under construction. • Vine Street — Entered into negotiation agreement for a 59 -unit affordable multi- family rental housing project. • Kwikset — Entered into development agreement for 129 single - family and 200 multi - family housing units with demolition underway. • Lincoln and East — Completed restoration of two historic buildings for commercial reuse. • Filling Station — Completed reuse of 5,000 square foot restaurant in Downtown. • BOVA Contracting Company — New construction of 12,000 square foot building. • Bassani Manufacturing — New construction of 14,000 square foot building. • Harris Freeman - New construction of 15,000 square foot building. • Westgate — Site preparation for new construction of a 275,000 square foot shopping center. • Northeast corner of Euclid and Crescent — Completed repositioning and rehabilitation of 140,000 square foot commercial center (Anaheim Plaza North). • Northwest corner of Euclid and Crescent — Completed rehabilitation of 133,000 square foot retail center. • Anaheim Plaza — Completed plans for construction of 5,200 square foot commercial building. • Kinsbursky Brothers — Completed 70,000 square foot industrial expansion. • Northwest corner of Elm and Anaheim Boulevards — Entered into development agreement for restoration and commercial reuse of historic building. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 6 PA0409013.ANA: PA:gbd 10021.007.001/12/03104 • Auto Dealer — Completed concept plans and site assembly for relocation and expansion of an existing auto dealer. • CIM Project — Started construction on first phase of 487 market -rate high density rental apartments including 129 for -sale lofts, completed concept design for parking structures, and entitled 60,000 square feet of retail space. • Historic Five Points Building — Entered into development agreement to restore historic building to include four affordable residential units and 7,000 square feet of retail space. • Packing House Block — Entered into negotiation agreement for historic adaptive reuse and a for -sale residential mixed -use project. • Canyon Identification Signs — Completed installation of 79 identification signs. • Lincoln Avenue — Phase 11 widening completed. • Freeway Landscaping Improvements — Completed SR91 and SR57 Freeway overlay planting in conjunction with CalTrans. • Utility Undergrounding — Construction complete of utility undergrounding at Lincoln Avenue and Rose Street. • Friendship Plaza — Completed perimeter stonework, signage, and installation of two walkway pergolas. • Philadelphia Street Public Parking Lot — Construction underway. • Weir Canyon /Savi Ranch — Competed traffic improvement feasibility analysis. • Euclid and Lincoln - Completed landscape improvements at intersection and median. • West Anaheim Basin — Completed Master Sewer Study. • West Anaheim Community Center and Police Station — Completed plans for construction of facilities. • Commercial Street Beautification — Completed construction of street beautification in conjunction with NorCal Beverage expansion. • SR91 and Lemon Street Beautification - Completed construction of street beautification in conjunction with Kinsbursky Brothers expansion. • Central Anaheim Basin — Completed master plan for sewer. • Lemon/Water Phase II — Completed utility, street and alley improvements. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 7 PA0409013.ANA: PA:gbd 10021.007.001/12/03/04 • Santa Ana Street Revitalization — Completed design development drawings for Santa Ana Street conversion from industrial to residential character between Harbor and East. • Anaheim Boulevard Improvements— Completed median and landscape improvements south of Cerritos. • Walnut Grove Park - Completed construction of new park. • Washington Park— Completed construction of new park. • Lincoln Avenue and Rose Street — Undergrounding of utilities in conjunction with neighborhood improvements (construction drawings completed). Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 8 PA0409013.A NA: PA:gbd 10021.007.001/12 /03/04 REDEVELOPMENT COMPONENT A. GOALS AND OBJECTIVES The goals and objectives have been identified on the basis of the financial resources that are available, the priorities for addressing blighting conditions in the Merged Project Area given the available resources, and the time limitations of the five -year period to be covered by the Implementation Plan. The achievement of the Implementation Plan goals and objectives will result in the elimination of some of the blighting conditions in the Merged Project Area and further the attainment of the redevelopment goals. The means for achieving the goals and objectives of the Implementation Plan are the programs, the specific projects implemented by the programs and expenditures to be undertaken by the Agency over the five -year term. By implementing the programs and projects, the Agency will realize the blight elimination effects of the goals and objectives. In general, the goals and objectives for the Merged Project Area include, but are not limited to: Business Attraction and Retention • Eliminate blighting conditions through abatement, compliance, or elimination of incompatible uses. • Consolidate parcels suitable for modern integrated development. • Revitalize the Anaheim's Downtown. • Maximize the utilization of underdeveloped properties in the attraction of commerce and jobs to the City. 2. Rehabilitation of Deteriorated and Obsolete Structures for Contemporary Use Rehabilitate or remove substandard and deteriorating buildings. 3. Provide for a Range of Small, Neighborhood and Regional Serving Businesses Provide opportunities for participation by owners and tenants in the revitalization of their properties. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 9 P A 04 09013. A N A: P A: g b d 10021.007.001/12/03/04 • Establish modern, convenient industrial and commercial areas to serve the needs of the City. • Create and develop local job opportunities and preserve the area's existing employment base. 4. Increase, Preserve, Rehabilitate and Develop Affordable and Market Rate Housing • Expand the community's supply of housing, including opportunities for very low -, low, and moderate income households. • Rehabilitate and develop low and moderate income housing. • Practice contextual design in creating appropriate linkages between commercial /industrial properties and residential areas. 5. Improve Infrastructure and Public Facilities including Increased Recreation and Open Space • Improve vehicle and pedestrian traffic system. • Upgrade public improvements and facilities, and eliminate environmental deficiencies, including substandard vehicular circulation systems; inadequate water, sewer and storm drainage systems; insufficient off - street parking; and other similar improvements, facilities and utility deficiencies. • Provide additional parks or improve existing parks and open space and ensure they are clean, safe, and desirable places for use by the community. 6. Proactively Plan for the Attainment of Goals and Blight Elimination • Replan, redesign and encourage development of underutilized areas. • Provide for increased sales, business license, hotel occupancy and other fees, taxes and revenues to the City. • Reduce crime and graffiti through coordination of efforts with property owners, residents, businesses, the Anaheim Police Department, and the Anaheim Code Enforcement Division. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 10 PA0409013.ANA:PA:gbd 10021.007.001/12 /03/04 Eliminate drug, prostitution and other criminal activities and uses. Provide tax increment funding as necessary to finance public improvements and development programs which cannot be accomplished through existing publicly funded programs or by the private sector acting alone to eliminate blighting influences. B. MERGED PROJECT AREA PROJECTS AND PROGRAMS Programs The Agency's programs for blight elimination are described below followed by a listing of specific projects that are currently being implemented or proposed to be implemented through the Agency programs during the next five years. The proposed projects represent the Agency's best guess at what will be implemented during the next five -year period. Often projects and programs are initiated in response to developer and owner requests. The Agency also proactively undertakes activities for blight elimination, which sometimes involves soliciting proposals for a specific development site. When the Agency participates in a project, the Agency and developer /owner enter into either a Disposition and Development or Owner Participation Agreement to assure that the project is implemented in accordance with the agreed upon plan and that the Agency's goals and objectives for blight elimination are attained. In some instances, such as affordable housing, the agreements specify that the housing units that are built as affordable remain affordable for 45 years (rental) and 55 years (ownership). The programs described below are designed to address the most significant blighting conditions in the Merged Project Area and provide additional housing opportunities. Typically, when the most significant blighting conditions are reduced, private sector investment will occur in the Merged Project Area leading to additional removal of blight. The Agency's redevelopment programs will therefore serve as a catalyst to remove blighting conditions and spur private investment and the preservation, improvement, creation and maintenance of affordable housing. Commercial and Industrial Upgrade and Expansion Programs The following programs apply to all non - residential projects including retail, office and industrial development. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 11 PA0409013.ANA: PA:gbd 10021.007.001/12/03/04 Site Assembly Program — The Agency may assist in business expansion and attraction through site acquisition and assembly. This may include demolition of existing improvements and resale of commercial and industrial properties for business expansion and new development. In some instances, the Agency may purchase only the improvements to clear the site for new development while the property owner retains ownership of the site. Rehabilitation Program — The Agency may provide low interest loans for minor and major structural repair and improvements. This could include activities ranging from fagade improvements to building expansion. These loans may be available to both tenants and property owners. Tenant Assistance Program — The Agency may provide incentives for business tenants to remain in the Merged Project Area. This could include marketing assistance in building improvements through low- income loans, or possible relocation to an alternative site within the Merged Project Area that better meets the business needs. Development Planning and Implementation Assistance Program - The Agency may assist developers and owners by providing technical assistance in assessing site development potential, site planning, project implementation, and in obtaining entitlements. Financial Planning Program — The Agency may assist owners in obtaining project financing through identification of available grants and preparation of the grant application. For example, the Agency may identify available grants from the Environmental Protection Agency for hazardous waste clean up and assist in writing the grant application. Residential Rehabilitation, Development and Affordability Preservation Programs The Agency will participate in the rehabilitation and construction of affordable and market rate housing. The Agency's goals are to provide a range of housing opportunities both in terms of type of residential use (apartments, condominiums, single - family homes, mixed -use and historic preservation) and affordability (market rate and low- moderate income). With the exception of the rental assistance program that the Agency implements in conjunction with the Housing Authority, which is only available to low and very low- income households, the following programs apply to both market rate and affordable housing projects. It should be noted in all areas the Agency exceeds its mandatory affordable housing production requirements. Site Assembly Program — Similar to the Commercial and Industrial Site Assembly Program the Agency may assist in the construction of market rate or Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 12 PA0409013.ANA: PA:gbd 10021.007.001112/03/04 affordable housing through site acquisition and demolition of existing improvements. The property would then be offered for resale to an owner or developer. In some instances, the Agency may purchase only the improvements to clear the site for new development while the property owner retains ownership of the site. Development Assistance — To promote housing development the Agency may offer incentives and concessions to developers to offset increased costs associated with an affordable housing programs' requirements or to cause development of certain desired market rate housing which would not otherwise occur. The specific incentives and concessions may include the following: fund development fees, write -down land costs to developers, lease to developers Agency -owned property, provide pre - development loans /grants, provide off -site improvements, subsidize interest rates, allow transfer of housing "credits" (affordable housing projects only), streamline development process, provide density bonus, bond financing, tax credits (affordable housing only), and implementation of the Community Reinvestment Act in order to provide favorable financing for developers. Homeownership Program - Through this program the Agency can assist first time homebuyer to make the purchase financially feasible. The intent is to provide affordable homeownership opportunities to assist low and moderate income households' transition into the home buying market through some financial assistance and homebuyer education. As part of this effort the Agency cooperates with the Anaheim Housing Authority to provide guidance through its housing counselors. Historic Preservation Program — The Agency may preserve historic homes that are deteriorated or are in danger of demolition. The Agency may purchase the home, rehabilitate the structure in conjunction with the owner or developer who then offer it for resale. As mentioned above, the Agency will enter into an Owner Participation Agreement or DDA to insure that the historic integrity of the house is maintained. Rental Assistance Program — The Agency may offer rent subsides to qualified households to obtain and retain decent, safe and sanitary affordable housing. The intent is to reach both owner - occupant and renter households throughout the City in order to stabilize transitional neighborhoods through improvement of existing residential structures and preservation of existing stock, which is usually more affordable to low and moderate income households. The Agency will leverage its Housing Funds to implement its Neighborhood Improvement Plans and eliminate blighting conditions in targeted neighborhoods by increasing on- site management, relocating tenants from overcrowded apartment units, Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 13 PA0409013.ANA:PA:gbd 10021.007.001/12103/04 rehabilitation of housing units, and infrastructure improvements. The Agency will also offer rehabilitation loans to homeowners for improvements, including plumbing and electrical repairs, roof repair /replacement, floor coverings and correction of health and safety code violations. Housing Counseling Program - The Agency, in conjunction with the Anaheim Housing Authority, will continue to provide rental assistance to meet the needs of very low- income households who are either homeless or "at risk" of homelessness. The City and the Agency believe that the most efficient and cost effective means of reaching individuals and families who are homeless or at risk of homelessness is through the provision of financial and technical assistance to support facilities and programs which are designed and equipped with trained staff to meet the needs of this population. Reuse and Resale Program — In some instances non - residential buildings maybe suitable for reuse as residential or mixed residential and commercial use. The Agency may acquire these properties, make the necessary improvements for rehabilitation and reuse in conjunction with a developer or owner for -sale and management. In most instances these projects are a collaboration between the Agency and private sector. Public Facilities and Infrastructure Improvements Infrastructure Improvement Program - The Agency may assist any number of infrastructure improvements (drainage, sewer, water upgrading; undergrounding utilities; providing road extensions, widening, reconstructions and public parking) to reduce project costs thereby attracting new development or reinvestment to the Merged Project Area. In some instances, the improvement will be specific to a site to assist in a proposed development and in other instances it will be undertaken on neighborhood or district wide basis to improve the overall aesthetics of an area and to eliminate a general deficiency that is inhibiting new construction or reinvestment. Signage Program — As a subset of the Agency's infrastructure program, the Agency may fund various signage programs including a "Way Finding Program" to direct patrons to attractions and shopping districts or through the construction of entry monuments to signify the identify and location of special area. The signage program is aimed at attracting patrons and establishing recognized business areas. Public Facilities Program - The Agency may fund separately or in concert with the City, park improvements, development of cultural facilities, and development of new open space. This can involve both site acquisition and construction costs. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 14 P A0409013. A N A: P A: g b d 10021.007.001/12 /03/04 Other Redevelopment Program Activities Planning and Implementation Program — The Agency may undertake a number of planning activities to determine needs in the Merged Project Area. Examples include a sign survey, preparing an overlay zone, drafting urban design guidelines, organizing community stakeholders meetings, preparing revitalization and implementation planning strategies; and participating in freeway landscape planning. Opportunity Site Acquisition Program - The Agency may purchase available sites that are envisioned, as potential sites for future development, but due to existing conditions or location are not desirable to the private sector, or not for a use that is consistent with the goals and objectives of the Redevelopment Plan. The Agency may then clear these sites and make them available for purchase and development by the private sector. As an example, the Agency in the past has been active in acquiring and assembling remnant parcels along 1 -5 resulting from the CalTrans freeway widening for private sector development. 2. Projects The following is a list of current projects either planned or underway. In some instances, there may be the potential for cross over between categories. For example, a mixed -use project may have elements of both commercial and residential programs. Also, many of the Agency's activities, which originate under the category of "Other Redevelopment Program Activities" such as opportunity site acquisitions, evolve overtime into a development project. Therefore, many of the activities under the category of "Other Redevelopment Program Activities" signify the initial phases of redevelopment and represent the projects that will be initiated or attempt to be initiated during the five -year implementation plan cycle. As mentioned above, because a significant portion of the Agency's activities is responding to developer and owner requests, the list of projects may expand. Also the implementation of projects depends on the availability of funding. Funding varies depending on the amount of tax increment generated from new development, substantial rehabilitation and property transfers which sell above the previous sales price. In addition, the current State budget deficits have resulted in a requirement that the Agency pay a portion of its tax increment fund to offset the State's budget deficit. As a result, these payments reduce the amount of money to implement projects. Therefore, the actual projects that will be implemented may vary from the list provided below. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 15 PA0409013.ANA:PA:9bd 10021.007.001/12/03/04 Commercial and Industrial Upgrade and Expansion Projects Packing House Block (323 & 401 South Claudina) — Combined with the T- Shirt Shop and half of the Courtney Building, the Agency under an Exclusive Negotiating Agreement is currently negotiating for development of this site. This project is anticipated to include an open air - market, full - service restaurant(s) and residential units and will historically preserve the Packing House (56,500 square feet — two story building) and Courtney Building. Land assembly currently under way. This project is between 5 -7 acres depending on acquisition /control of 3rd party parcels. Downtown Mixed -Use Infill — South of Lincoln at Lemon and the northwest corner of Lincoln and Anaheim represent two infill development sites that lend themselves to additional mixed -use development. The Agency is in negotiations with the owner of Anaheim Towne Center and will be working with the owner of the corner property at Anaheim and Lincoln. • Anaheim South of Ball - Located at the corner of Ball Avenue /Anaheim Boulevard is a privately owned 3.6 -acre site. The Agency is interested in combining this site with an adjacent Agency site (5.25 acres) for potential commercial development. • Euclid /Lincoln Triangle — This area is to be combined with an 8 -acre CalTrans parcel for future regional commercial development. • Mini Mart (125 East Vermont) — This site is to be combined with the adjacent parcel to expand Thee White House restaurant. The restaurant lacks adequate parking and permanent banquet facilities. • Freeway Remnants OCTA - Anaheim Way — These parcels are to be combined with adjacent City owned parcels for future hotel development. • Southwest Corner of Euclid /Lincoln — Property purchased by adjacent owner and working with Agency staff to construct a modern retail facility. • Westgate — Develop a 250,000 square foot commercial center on the former landfill site at Lincoln Avenue and Beach Boulevard. A home improvement store, grocery store and public plaza with restaurants and food court will anchor this shopping center. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 16 PA0409013.ANA: PA:gbd 10021.007.001/12/03104 Canyon Lakes Development — A proposed 1.7 million square foot mixed -use project that is expected to create a unique, high image retail, entertainment and shopping experience on 72.4 acres within the Canyon area. Five Points Block — A Disposition and Development Agreement (DDA) is currently being implemented for a mixed - use /historic preservation project. The 7,000 square foot building will contain ground floor retail with an upper floor containing four (4) residential rental units. 325 and 327 South Anaheim Boulevard Site — Under a DDA, the Agency proposes to historically preserve the 4,200 square foot building for re -use and conversion from auto use to a commercial retail center for up to three (3) tenants. Potential occupants include restaurants. The project will be integrated with developer's adjacent property. • CIM Heritage Center /Parcels A & B — Assist in the development of 46,300 square feet of commercial retail space, multi - family housing, and 366 parking spaces. • CIM - Retail Space — Scope of development to be determined by January 31, 2006. • CIM Parcel D — Assist in the development of approximately 13,000 square feet of commercial retail space, residential condominiums, and 240 parking spaces. • Weir Canyon Honda /Acura — Agency staff is working with local auto dealerships in the far eastern portion of the Merged Project Area to make substantial property improvements that will increase the overall sales tax revenues. Residential Rehabilitation, Development and Affordability Preservation Projects Packing House Block (323 and 401 South Claudina) — In addition to the commercial development proposed for this site, the Agency is negotiating for development of 170 -220 for -sale residential units. CIM Heritage Center /Parcels A & B — In addition to the commercial development proposed for this site, approximately 278 market -rate residential apartments will be constructed. CIM Parcel D — In addition to the commercial development proposed for this site, approximately 135 for -sale market -rate condominiums will be constructed at this site. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 17 PA0409013.ANA: PA: gbd 10021.007.001 /12103/04 • Willdan Building — A 40,000 square foot office building will be purchased by the Agency for conversion to for -sale residential lofts in support of the urban mixed- use environment planned for the area. • Kraemer Building — Completion of the rehabilitation of historic building with 21 residential units in the upper floors and commercial uses on the ground floor and basement. • Substation Block — The block is to be re- subdivided with the Agency retaining the westerly portions (Anaheim Boulevard frontage) for new housing development. This development project consists of approximately 1.5 acres. • 111 West Elm Street — In the process of negotiating with owner for a potential housing site. • Lemon/Water Phase III — Single- family residential move -on (historical building relocation) and rehabilitation of six lots. This project consists of approximately 1.4 acres. • Five Points Block — In addition to the mixed -use component, planning and acquisition is nearing completion for the restoration and sale of four or five historic homes. Public Facilities and Infrastructure Improvement Protects • Anaheim Canyon Metrolink Station - Renovation of Agency -owned platform in conjunction with increased Metrolink service. • Canyon Monuments — Fabrication and installation of Canyon monuments anticipated at major arterial intersections at the 91 Freeway. • Civic Center Linkages — Complete pedestrian and /or vehicular connection from Center Street to Center Street Promenade and pedestrian access from adjacent parking structure to the front of the building. • Edison Easement Landscaping — Gateway landscaping improvements at South Anaheim Boulevard and the Edison Easement. • Lemon Street Linkage — Enhance movement of pedestrians and vehicles between Pearson Park and Center Street Promenade. • Packing House Linkage — Enhance movement of pedestrians between the Packing House and Center Street Promenade. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 1s PA0409013.ANA: PA:gbd 10021.007.001/12/03/04 River Valley Traffic Improvements — Participate in joint study and improvements with Yorba Linda. Improvements potentially include signalized intersection on Weir Canyon. Santa Ana Street Conversion — Implement master plan for pedestrian oriented /residential scale streetscape improvements in conjunction with future adjacent development between Harbor and East Street. SR91 Landscape — Implement gateway landscape treatment at Imperial Highway in conjunction with CalTrans. Other Redevelopment Projects • 500 South Anaheim - Acquired 0.5 -acre site for future housing. • 501 South Anaheim — Acquired and demolish structure on 0.5 acre site for future housing development. • Santa Ana Street Property — Objective is to acquire various properties between South Anaheim Boulevard and Olive Street for future residential development (acquired two properties totaling one acre). • Matrix Site — Acquired 2 -acre site on South Anaheim Boulevard for future residential development. • Guinida Lane — Completed acquisition of two properties totaling 1 -acre for future park development in conjunction with expansion of Revere School. • Santa Ana Street Streetscape Design — Street concept for conversion of Santa Ana Street from an industrial road to a residential amenity from Harbor Boulevard to East Street (design concept completed). Construction to occur in conjunction with adjacent development. • Union Pacific Railroad — Funding portion of replacement tracks in Santa Ana Street. • South Anaheim Boulevard Urban Design — Acquired 3.1 acres on the west side of South Anaheim Boulevard adjacent to Elm Street for commercial /mixed- use development. • Brookhurst North of Lincoln — Design of median and parkway beautification project (completed design). To be constructed in conjunction with the City. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 19 P A0409013. A N A: PA:9bd 10021.007.001/12103/04 Melody Mobile Home Park — Acquired site for future development. (Acquired property and demolished structures.) Silver Moon Motel Park and Madrid Motels — Acquired site for future development (acquired property and demolished structures). Police Station and Community Center — Construct new facility on South Beach Boulevard (construction underway). The Agency's contribution to the above listed projects are incorporated within the financial feasibility analysis later in this Implementation Plan. The exact future allocation of Agency revenues cannot be precisely determined because the exact amount of future tax increment cannot be identified or the private sector's request for assistance. The Agency will allocate the necessary funds for each program and the project being implemented as opportunities arise and will be identified annually as part of the City's budgeting process. C. BLIGHT ELIMINATION The achievement of the Implementation Plan goals and objectives (through the specific projects, programs and expenditures) will eliminate, in part, blighting conditions within the Merged Project Area. This Implementation Plan does not attempt to outline a plan to eliminate all blight in the Merged Project Area, but rather addresses how the Agency intends to contribute to the elimination of blight within the Merged Project Area. The programs described above are designed to address the most significant blighting conditions in the Merged Project Area and provide additional housing opportunities. Typically, when the most significant blighting conditions are reduced, private sector investment will occur in the Merged Project Area leading to additional removal of blight. The Agency's redevelopment programs will therefore serve as a catalyst to remove blighting conditions and spur private investment and the preservation, improvement, creation and maintenance of affordable housing. The following is a summary of some of the blighting characteristics that are present in the Merged Project Area as defined in the CRL, with a description of how the proposed Agency activities (projects and programs) will reduce the prevalence of these blighting characteristics. For discussion purposes, blighting conditions are presented by use type and general geographic area (Planning Area; see Figure 2). There are three general use types in the Merged Project Area, residential, commercial and industrial. The residential uses primarily consist of older single - family dwellings and newer multiple - family dwellings and are located in the central and western portions of the City. Commercial uses are predominately older strip retail commercial centers punctuated by a few newer neighborhood centers. Office uses are minimal and primarily located in the Downtown with the exception of older professional office space that is Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 20 PA0409013.ANA: PA:9bd 10021.007.001112103/04 Q w Q C� z z z Q J d Q W Q H U w O a 0 w w Ng w W D _ U Z LL. Q intermixed with commercial uses along the major corridors in west Anaheim. Industrial uses fall into two categories, newer light industrial research and development firms in the east end of the City and older manufacturing and warehouse uses in the central portion of the City. Unique to the Merged Project Area are Anaheim Stadium and Anaheim Plaza shopping center. Anaheim Stadium is located in central Anaheim near the intersection of Interstate 5 and Highway 57, and Anaheim Plaza is located in west Anaheim at the intersection of Interstate 5 and Euclid Avenue. West Anaheim The West Anaheim redevelopment areas include what were formerly the West Anaheim Commercial Corridors Redevelopment Project and the Anaheim Plaza Redevelopment Project. Commercial Corridors The commercial corridors include Brookhurst, Anaheim Boulevard, Lincoln Avenue, Knott Avenue, Magnolia Avenue, Western Avenue, Orange Avenue, W. La Palma Avenue, S. Beach Boulevard, and Ball Road. A disproportionate number of retail uses located along the corridors are convenience - oriented (e.g. mini markets, liquor stores, and fast food restaurants). Brookhurst Avenue has a large number of bars and adult entertainment oriented uses. Beach Boulevard has a concentration of older motels which are known locations for crime. There is also concentration of entertainment/ service business uses that are adult oriented (e.g. bars, a massage parlor, palm reader). Commercial retail businesses along Lincoln, Beach and Brookhurst Avenue have low retail sales, and low lease rates. The asking lease rate is $1.23 per square feet compared to $2.00 for the city as a whole. Approximately 81 percent of the commercial retail businesses in this area have retail sales that are less than the City average per square foot of $307. There is approximately 4.5 million square feet of retail. However, the community can only support about 1.5 million square feet. Private sector redevelopment has been hindered by physical site constraints, notably shallow parcel depth and fragmented ownership. Furthermore, the concentration of adult uses and often related crimes including drug trafficking and prostitution is a deterrent to private sector investment. Public facilities deficiencies including deficient sewers, storm drains, water mains and electrical utilities as well as inadequate transportation facilities, are a further deterrent to reuse and redevelopment. The overall objective for the West Anaheim commercial corridors area is to create or attract economically viable residential and commercial uses to the area. This can be the result of rehabilitation and expansion of existing facilities or land assembly and attraction of new uses. In instances where housing would be a viable alternative to commercial uses, the Agency will assist in land assembly and site preparation thereby facilitating the development of housing. Similar assistance is envisioned to create nodes of viable Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 22 PA0409013.ANA: PA:gbd 10021.007.001112/03104 commercial development which will be both neighborhood serving and competitive with surrounding market. Anaheim Plaza Although named after the former regional shopping center, Anaheim Plaza is composed of two major land use areas. The area north of Interstate 5 generally bounded by Euclid in the west, Crescent Avenue in the north and Loara in the east was the former location of Anaheim Plaza. At the time of Redevelopment Plan adoption, the mall was failing as evidenced by a high vacancy rate, short -term leases and no prospect for revitalization. In order to create a competitive retail environment, the Agency assisted in the transformation of Anaheim Plaza from a small older enclosed regional mall to an open air "power center ". The larger portion of the former Plaza Project Area is on the south side of 1 -5 Freeway corridor from Miller Street in the west to Broadway Avenue in the south and east. This area is largely industrial with commercial uses along the Lincoln and Euclid corridors. The area continues to have a large number of older obsolete industrial facilities. The commercial retail businesses in this area have not experienced the same revitalization as Anaheim Plaza and continue to have low retail sales, which in turn, results in low lease rates. In general, the average asking lease rates for commercial retail south of the 1 -5 Freeway in this vicinity is $1.23 per square foot, which is significantly lower than the asking lease rate for the City as a whole at $2.00, which was provided by local real estate brokers. Rehabilitation and new construction has been hindered by the widening of the 1 -5 Freeway which resulted in dead end streets and other circulation problems caused by new freeway on and off ramps. Correcting these circulation deficiencies is a major priority. This includes the realignment of Manchester to ultimate configuration paralleling the 1 -5 Freeway. The Agency will also assist in assembling freeway remnant parcels into parcels suitable for development with Agency assistance. 2. Central Anaheim Central Anaheim includes what was formerly the Alpha (Downtown portion), Commercial /Industrial (North Central and South Anaheim Boulevard) and Stadium Redevelopment Projects. The Central Anaheim area of the Merged Project Area encompasses approximately 1,263 acres or 25 percent of the Merged Project Area. Downtown Area The Downtown area is generally bounded by Harbor Boulevard on the west, Cypress Street on the north, East Street on the east, and Broadway on the south. At the time of Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 23 PA0409013.ANA: PA:gbd 10021.007.001 / 12/ 03/04 adoption, the Downtown area was identified as deteriorated with a preponderance of old and substandard dwelling units. In many cases there was inadequate buffer between the residential and adjoining industrial and commercial uses. The commercial retail uses located along Lincoln Avenue and Anaheim Boulevard, which are the primary commercial boulevards that bisect the Downtown from east to west and north to south, were stagnant located in structures that were deteriorated and unsafe. Retail spaces were obsolete for contemporary retail uses and parking was less than convenient. Obsolete retail spaces still exist in the Downtown area, as is evidenced by low retail sales. Approximately 55 percent of the retail properties within the Downtown area have retail sales per square foot that are lower than the City average as a whole. Furthermore, the ability of the private sector to redevelop the area was hindered by small and landlocked parcels in multiple- ownership. In addition, an inadequate water supply, inadequate circulation resulting from narrow and dead end streets, poor drainage, limited sewer facilities and lack of underground utilities impacted the Downtown area. Initial redevelopment activities began in the late 1970's with the realignment and improvement of Lincoln Avenue that links the Downtown with the 1 -5 and 57 Freeways, and the improvement of several other local streets. New infrastructure systems including storm drainage, water and sewer, other utilities and enhanced streetscape were also provided. Over time, several major projects have been implemented or initiated in the Downtown area. They include the 120,000 square foot City Hall, a neighborhood shopping center at the intersection of Lincoln and Anaheim Boulevard and several two -and three -story office buildings were constructed along Lincoln Avenue and Anaheim Boulevard. Other major projects include the completed first phase of the 15 -acre Koll Center project, which includes the 200,000 square foot Pacific Bell building, the 220,000 square foot City Hall West city office building, and two parking structures that accommodate 1,400 vehicles. Other accomplishments include 400 homes (Lincoln Village) bordering on Lincoln Avenue and Center Street, 152 single - family homes in "Area 5" and 30,000 square foot community center at the intersection of Center and Philadelphia Streets. Near -term redevelopment activities will focus on the completion of the Center Street Promenade (aka Koll Center). To facilitate the substantial amount of additional commercial and residential development, which were planned but have yet been implemented, circulation improvements and sewer improvements are required. Another area where redevelopment has not been completed, includes the older residential area bounded by Cypress, East Street, Lincoln Boulevard and Vintage Lane. North Central The North Central area includes the City's older industrial area generally bounded by La Palma Avenue on the south and Harbor Boulevard on the west, Orangethorpe Avenue Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 24 PA0409013.ANA:PA:gbd 10021.007.001/12 /03104 on the north, and East Street on the east. Although there has been some new development in recent years (Lowe's, McDonald's, 24 Hour Fitness), most of this new development has occurred north of the 91 Freeway. The majority of the area (south of the 91 Freeway) is characterized by older deteriorated buildings and irregular parcels with a diversity of ownership. Most of the irregular parcels are attributed to the abandon railroad spur lines along Commercial Street, which also causes circulation issues within the area. For example, Essex Wire Company can only be accessed from Patt Street, which has no direct connection to Lincoln Avenue. Code compliance violations have been historically high and hazardous waste deposits were noted at several locations. Infrastructure deficiencies (including abandon railroad spur lines) continue to impact the area and deter business. Crime, particularly gang related crimes such as burglaries and vandalism impact businesses and the area's image. Although vacancies are limited in the area, the corporate headquarters of Carl Karcher Enterprises, Inc. (Carl's Jr. fast food restaurants), which includes offices and a distribution center, are in the process of moving to Santa Barbara. Therefore, most of the property and structures north of Carl Karcher Drive between Harbor Boulevard and Lemon Street/Anaheim Boulevard totaling 23 acres will be vacant. The Agency may provide rehabilitation loans and assist in site assembly, hazardous waste remediation and infrastructure improvements to improve existing businesses and attract new businesses to the area. South Anaheim The South Anaheim area is developed with both industrial and commercial (mix of retail and office) buildings fronting along the length of Anaheim Boulevard from Broadway on the north to Orangewood Avenue on the south. This area also includes a heavy industrial zoned area generally bounded by Santa Ana Street on the north, Olive Street on the west, Vermont Street on the south, and East Street on the east. Residential uses are interspersed along the major corridors. Although diverse in use types, the area is generally characterized by deteriorated and functionally obsolete buildings including older manufacturing buildings, a declining automobile shopping row and obsolete commercial retail including a concentration of automotive repair and small office uses. Industrial uses are concentrated along the railroad tracks running in a north /south direction bisecting the residential neighborhoods. The industrial and commercial uses date back as early at the 1920's. Due to the obsolescence of many of the industrial buildings and a declining market area, the heavy industrial properties are expected to transition to residential use in the future. However, circulation deficiencies and inadequate parcel sizes inhibit redevelopment and reuse. Other issues impacting the area are hazardous waste contamination, crime and small and irregular remnant parcels adjoining the Santa Ana Freeway resulting from the CalTrans widening. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 25 PA0409013.ANA: PA:g bd 10021.007.001/12/03/04 The Agency's approach to blight elimination is twofold: (1) consolidate property along Anaheim Boulevard into larger parcels to be the catalyst for future economic and residential development in the area; (2) assist existing owners through rehabilitation and site assembly for expansion; and (3) conversion of obsolete commercial and industrial uses to residential. Anaheim Stadium The Stadium Project was adopted as a "disaster project" resulting from damage sustained from the January 17, 1994 Northridge earthquake. The earthquake damage has been corrected including seismic reinforcement, installation of a new video display /scoreboard, and repair /and replacement of damaged seating, bathrooms and concession area. The Agency developed 250,000 square feet of office space (Summit Commercial Office Building). The Agency's objective is to continue to assist in the development of the Stadium site with mixed -use transit oriented development sites currently developed with large expanses of surface parking surrounding the Stadium. 3. Eastern Anaheim The Eastern Anaheim redevelopment areas include what were formerly the Alpha Redevelopment Project (Northeast Industrial Area or the Canyon area) and the River Valley Redevelopment Project. Northeast Industrial Area This Northeast Industrial Area is composed of nearly 2,500 acres. The area is home to more than 2,650 businesses that occupy about 26.4 million square feet and employ over 56,000 people. Since 1973, the Agency has invested more than $100 million in public in infrastructure improvements to allow for the total build out of 33 million square feet of primarily industrial space that will employ more than 65,000 employees. Although the Agency has been active in the elimination of blighting conditions and overall the area is a redevelopment success story, there still remains a significant amount of blight within the Northeast Industrial area. A primary blighting condition identified for this area at the time of adoption was landlocked parcels and small parcels under separate ownership. These parcels were inadequate in size for contemporary industrial use or inhibited the expansion of existing industrial uses. These conditions continue to persist in the area west of Kraemer to the 57 Freeway. As described in the 1993 EIR prepared for the 2,645 -acre specific plan overlay area, this area "consists of a patchwork of older, mainly one -story industrial buildings in moderate to poor condition ". Likewise, the industrial area from Richfield east to Lakeview was described as "older industrial uses on odd - shaped parcels south of La Palma Avenue ". These conditions Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 26 PA0409013.ANA: PA:gbd 10021.007.001/12103104 have not materially changed in the past 10 years. In fact, the conditions that were found in 1993 have since deteriorated in many cases reducing the marketability of the area. The Northeast Industrial Area includes an older area between Kraemer and the 57 Freeway with small buildings under 20,000 square feet, which was envisioned to be upgraded to incubator area for immerging high technology businesses. The bulk of the remainder of the Northeast Industrial area was developed in the 1980s primarily with buildings of 100,000 square feet and larger. Due to shifts in the economy, there has evolved a need for "mid- size" industrial buildings (20,000 to 50,000 square feet). This building size is unrepresented in the Northeast Industrial Area totaling 18 percent of the building stock, but the majority of the demand. This has resulted in business losses. The Northeast Industrial area also contains underutilized land that inhibits the economic growth of the area. Between water retention basins and various forms of open -air storage 583 acres or 25 percent of the Northeast Industrial area is underutilized. In the past, the Agency has assisted businesses through a combination of site acquisition, and site preparation including environmental clean -up and utility upgrades assistance. Some assisted businesses include BACE Plastics Group, Micro Technology, Inc., West Coast Performance Products, YKK (USA), Inc., TRW Redi, Fry's Electronic, Sundor, Disc Manufacturing, LA Cellular, North County Distribution Center, Universal Alloy, Meiho Technology, Digital Graphics Advantage, Pacific Sunware and Global Health Science. As opportunities arise, the Agency will assist in additional land assembly for the expansion of existing business and business attraction. The Agency will also assist in industrial rehabilitation projects that are anticipated to be focused in the area west of Kraemer Boulevard. The Agency has provided millions in traffic and transportation facilities in the Northeast Industrial Area. However, additional street improvements are still needed. Also, studies of the area's infrastructure systems, including sewer and storm drainage will be completed soon. Any identified deficiencies will be corrected in a phased implementation program. Anaheim is constructing a new signage program and implementing a branding, image and identity program, to market the Canyon as the "Center for Advanced Technology'. This will help to alleviate some of the negative image west of Kraemer Avenue. Marketing combined with additional police, code enforcement and potentially land acquisition may be necessary to eliminate concentrations of adult uses, which are a factor in improving the economic viability of the area. River Valley The River Valley area contains 160 acres of land located near the eastern City limit. Major roadways traversing this area include the 91 Freeway, Weir Canyon Road, and La Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 27 PA0409013.ANA:PA:gbd 10021,007.001/12103/04 Palma Avenue. The primary source of blight in this portion of the Merged Project Area was susceptibility to flooding, which has been addressed by construction of the Santa Ana River Levee. However, traffic access to the project area still requires improvement. The Agency is involved in cooperative efforts with the City of Yorba Linda to improve both roadway and driver information systems serving the area. A potentially major public improvement will be bridge widening on Weir Canyon Road. In addition, parcels not within the SAVI Ranch development still require public infrastructure improvements to allow development to proceed (e.g. site filling and grading, storm drain and roadway improvements, utility relocations, and traffic signalization), and although the flood control improvements have been completed, the Agency is still in the process of paying for the flood improvements which will require significant tax increment revenues in the future. D. FINANCING The goals and objectives and projects, programs and expenditures included in this Implementation Plan reflect the financial constraints of the Agency to implementing the Redevelopment Plan over the five -year term of the Implementation Plan. The constraints are primarily the result of obligations that the Agency is contractually required to pay as a result of prior redevelopment activities. Sources of Total Revenues The Agency has the legal authority and flexibility to implement the revitalization of the Merged Project Area utilizing any or all of the following revenue sources: (1) city; (2) state; (3) federal government; (4) tax increment funds in accordance with provisions of the existing CRL; (5) new tax allocation bonds; (6) interest income; (7) loans from private financial institutions; (8) lease or sale of Agency -owned property; (9) donations; (10) developer payments, and (11) any other legally available public or private sources. At the time a redevelopment plan is adopted for a project area, the taxes generated from taxable value of property in the area (often referred to as the base year value) continue to be distributed to each of the taxing entities, which levy a property tax in the project area. A portion of the property taxes that occur due to growth in taxable value above the base year value are allocated to the redevelopment agency. This amount is commonly referred to as tax increment revenues. It should be noted that the Agency had a beginning balance of $17,553,000 prior to fiscal year 2004 -05. The current Merged Project Area's gross tax increment revenues are estimated at $33,837,000 for 2004 -05. Based on growth estimates, it is anticipated that the gross tax increment revenues annually will remain relatively consistent over the next five years increasing to $38,653,000 in 2008 -09. This general increase can be attributed to transfer of ownership activities and the increasing market value of real estate. As Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 28 PA0409013. A NA: P A: g bd 10021.007.001/12 103/04 required by the CRL, 20 percent of the gross tax increment must be spent on affordable housing. Aside from tax increment revenues, the Agency anticipates revenues to be generated from other sources including sale of land, bond proceeds, lease revenue, and interest income. Other revenue sources generated by the Agency are estimated at $23,134,000 for 2004 -05. In 2004 -05, sale of land ($9,189,000) and bond proceeds ($7,634,000) account for 73 percent of the revenues generated by sources other than tax increment. Based upon future Agency activities, it is anticipated that revenue generated by these other sources will decrease over the next five years to $8,695,000 in 2008 -09. The revenues anticipated to be generated in the Merged Project Area over the next five years are identified below in Table 1. Table 1: Total Anticipated Revenues 2005 -2009 (Fiscal Years 2004 -05 through 2008 -09) Gross Tax Increment $183,624,000 Less Housing Set -Aside ($36,725,000) County Administration Fee ($1,469,000) Other Revenue Sources $67,977,000 Total Resources $213,407,000 Does not reflect existing obligations As described below, a significant portion of these monies are pledged to existing obligations and projects and programs. 2. Estimated Total Expenditures Current provisions of the CRL provide authority to the Agency to create indebtedness, issue bonds, borrow funds or obtain advances in implementing and carrying out the specific intents of a redevelopment plan. The Agency is authorized to fund the principal and interest on the indebtedness, bond issues, borrowed funds or advances from tax increment revenue and any other funds available to the Agency. To the extent that it is able to do so, the City may also supply additional assistance through City loans or grants for various public facilities or other project costs. The redevelopment program described in this section outlines a set of activities to be implemented by the Agency for the purpose of facilitating private reinvestment in the Merged Project Area, eliminating physical and economic blighting influences, and providing for affordable housing development. For purposes of this analysis, housing set -aside revenues and their related expenditures are not incorporated on the cash flow summary below but instead are presented in the Housing Component. The estimated costs, expressed of potential future redevelopment programs over the term of the Implementation Plan are shown in Table 2. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 29 PA0409013.ANA: PA:gbd 10021.007.001/12 /03/04 Table 2: Total Anticipated Expenditures 2005 -2009 (Fiscal Years 2004 -05 through 2008 -09) Bond Debt Service $69,100,000 Educational Revenue Augmentation Fund $5,384,000 Administration $27,077,000 Pass - Through Obligations $16,692,000 Contractual Obligations $12,528,000 Projects and Programs $96,776,000 Total Expenditures $227,557,000 Bond Debt Service The Agency will continue to make principal and interest payments on the 1992 Tax Allocation Revenue Bonds and the 1997 Tax Allocation Refunding Bonds.' The annual debt service is secured by tax increment revenues. While the Agency may elect to incur additional bonded indebtedness in the future, for purposes of this analysis no additional future bond issues are assumed over the next five years. Educational Revenue Augmentation Fund (ERAF) SB 1096 requires redevelopment agencies to shift $250 million in property tax revenues to K -12 schools and community colleges during the 2004 -05 and 2005 -06 fiscal years. The shift of tax increment revenues will be placed into ERAF. SB 1096 provides that one -half of the ERAF obligation of the Agency is calculated based on the gross tax increment apportioned to the Agency and the other one -half of the ERAF obligation is calculated based on net tax increment revenues retained by the Agency (net of any pass- through payments to other taxing entities), as such tax increment revenues are reported in the Community Redevelopment Agencies Annual Report of the California State Controller for FY 2002 -03 for calculation of the 2004 -05 ERAF payment and FY 2003 -04 for calculation of the 2005 -06 ERAF payment. The Agency will be required to allocate an ERAF payments to the County Auditor - Controller totaling $2,692,000 per year for 2004 -05 and 2005 -06. SB 1096 stipulates that ERAF will not continue after 2005 -06. Therefore, for purposes of projecting future expenditures, it is assumed that commencing in FY 2006 -07, ERAF payments will cease to be required by the Merged Project Area in subsequent fiscal years and reflect the current legislation. ' The 2000 Tax Allocation Revenue Bonds, Series A and B are secured by Housing Set -Aside revenues and are therefore reflected in the feasibility cash flow as a credit against the annual Set - Aside. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 30 PA0409013.ANA:PA:9bd 10021.007.001 /12/03/04 Pass - Through Obligations The Agency entered into a series of pass- through agreements and has assumed statutory pass- through obligations with various affected taxing agencies as the six constituent project areas that comprise the Merged Project Area were adopted. The recent merger of the six constituent project areas had no affect on the nature of the respective pass- through obligations nor the determination of the formula amounts that would otherwise be due to the respective taxing agencies ($16,692,000 over the next five years). Furthermore, the previously adopted merger did not trigger any additional tax sharing obligations to the affected taxing agencies. Contractual Obligations The Agency annually budgets for various existing contractual obligations unique to specific project areas as well as those of the Agency as a whole. These annual obligations include economic development agreements, cooperative agreements with the City, and other obligations related to site - specific projects. Administration The projected cost to administer the redevelopment program over the life of the Merged Project Area is based on the Agency's estimate of $5,100,000 for FY 2004 -05. Subsequent year administrative costs are projected to increase by an assumed three percent (3 %) cost of living factor over the term of the projection. The administrative expenditures are assumed to continue over the effective life of the Merged Project Area. Protects, Programs, Activities To the extent future tax increment revenues continue to be allocated to the Agency and exceed pre- existing debt service, pre- existing contractual obligations, administrative costs, pass- through obligations, and any ERAF requirements by the State, the Agency will have discretionary revenue to fund the programs and projects identified in this Implementation Plan. Over the term of the Implementation Plan, the Agency anticipates to have available $96,776,000 to fund programs and projects to eliminate blight. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 31 PA0409013.ANA: PA:gbd 10021.007.001112103/04 A summary of the cash flow of the Agency over the term of this Plan (2004 -05 to 2008 -09) are shown in Table 3 below. Table 3: Total Estimated Redevelopment Program Costs 2005 -2009 (Fiscal Years 2004 -05 through 2008 -09) Beginning Balance 2004 -05 $17,553,000 Proposed Revenues (less 20% housing set - aside) $213,407,000 Proposed Total Expenditures ( $227,557,000) Ending Balance 2008 -09 $3,403,000 E. SUMMARY OF THE REDEVELOPMENT COMPONENT The Redevelopment Component of the Implementation Plan provides the framework for Agency activities during the five -year term of the Implementation Plan for January 1, 2005 through December 31, 2009. As summarized in Table 4, effort has been taken to demonstrate that the Agency's near -term goals and objectives to eliminate blight will be achieved by the proposed programs as implemented by the projects. The programs and projects actually accomplished during the term of the Implementation Plan may differ from those identified due to development opportunities that may arise and unforeseen changes in the annual Redevelopment Agency budget, but the basic goals and objectives will remain the same. In summary, the Agency proposes to focus its activities on eliminating physical and economic blight conditions through the construction of public improvements and assisting the private sector in developing vacant and /or underutilized properties. It is the Agency's hope and intent that the Redevelopment Implementation Plan as proposed, if fully implemented, will encourage further private sector investment in the Merged Project Area. 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X x x x x x a) c K ;!oedeo/asn a!qe! �_ 6u!�apu!H Ile! ;ue ;sgnS �0 6u! ;uana�d s�o ;oe j X X X X X X X X X X x x X x m s6u!p!!n8 � tmeayun /a;esun x x x x x x x x x X X x x x x x SNowaNO3 ONIIHJllB l`d3ISAHd F :r � , y V E d f0 v1 d jp E E m E E o a m E mm = O mm m 0 0 0) O m m m o 0 T m m m 0 a 0 m ( a CL a a E E LL Es E c E v E E c E m E E a ° o E C. r E m m a�ci E ° m m m `� m m m m a~ci E ° .(n m m w Q a) U o d m en a) m m w m m E O` C U '7 m m Q E 0 a) 7 0 E 0 E 0 0 a) c 0 0 a a) 0 m o rna (CD o ol d rn N Q m o Q, LL o° a iA y o '� a a o d a�Ei Q d p O o d m E Q m o a m E c) a o a m a Q m ' c a F . m cL E- a 'o ° m S a c m m c m Q 0 m a w L o� o 0� o o y o�� o .� o 0� w c � a) 0' 0 o� :3 L c a' MQ an- m m (D @Q c m 3 Ea u) � a o m c Q Q im 0 m Q C 2: in p C M c a) N C m Q __ _ C m 3 p C O a) a O U as a) D m m in N a) C p O L C L a) L N a a) t C C a) m t C m a m E 1 C 7 m C U C O 0 l co cn Q m m F- B a O c LL a) a) W F- U) rn . c LL to a) W m � c3- 0 c o = a) o ti i � a) a) rn a) m a o U) a O o m c U p) Z C C O @ (a c <9 c O 0) cu m a) a) c o m O U m U a C ` O O O p a) @ L N _ N fA QJ U O O m m U p (9 o c a) c 76 -o (D c a a) CA ED m as E ° c m c m CD @ Q E N to O O c O w N cn N rn a) 01 U Q Z n ? O c a) m m fn N L m C Q. d a) m T c m m o = o- o a) 0 m E c a) N m > U m @ a) m m C . m a) O m U m m m = a) C O N U m O ' U O` E Q Of L) a n S E m LL III. HOUSING COMPONENT Since 1973, 289 affordable housing units have been produced inside the Merged Project Area while 1,549 affordable units have been added to the City's inventory outside of the Merged Project Area. The Agency currently has a 123 -unit replacement housing surplus and a 955.5 -unit inclusionary housing surplus. Thus, the Agency has exceeded the CRL affordable housing requirements. A. IMPLEMENTATION PLAN REQUIREMENTS This Housing Component of the Implementation Plan for the Merged Project Area is the complement to the Redevelopment Component. Together, the two components constitute the implementation plan required by Article 16.5 of the "CRL" consist of Sections 33000 et seq. of the California Health and Safety Code. This Housing Component of the Implementation Plan presents those components of the Agency's intended program for the Merged Project Area that deal with the expenditure of funds and activities relating to the production of housing affordable to persons and families of low and moderate ( "low- mod ") income. Low -mod income is defined in the CRL and is set annually by the California Housing and Community Development Department (HCD). The income levels are published annually by HCD, and are defined as follows: Moderate income: 80 percent to 120 percent of median income for the applicable household size, (Section 50093) ; Low income: 50 percent to 80 percent of median income for the applicable household size (Section 50079.5); and Very-low income: Less than 50 percent of median income for the applicable household size (Section 50105). The CRL provides that, in addition to the removal of blight, a fundamental purpose of redevelopment is to expand the supply of low -mod housing (Section 33071). To accomplish this purpose, the CRL contains numerous provisions to guide redevelopment agency activities with regard to low -mod housing. These provisions divide a redevelopment agency's housing responsibilities into three major categories: The production and /or replacement of low -mod housing; 2. The set -aside and expenditure of specified amounts of tax increment revenue for 2 All referenced sections are found in the California Health and Safety Code. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 34 PA0409013.ANA:PA:gbd 10021.007.001/12103/G4 the express and exclusive purpose of increasing, preserving and improving a community's supply of low -mod housing; and 3. Preparing reports on how the Agency has met, or on how the Agency will meet its responsibilities with regard to the first two items. This Housing Component is part of the Agency's responsibilities under the third major category. Its contents address how the Agency's plans for the Merged Project Area will achieve many of the housing responsibilities contained in the first and second major categories of Agency housing activities. Article 16.5 requires that the Housing Component of the Implementation Plan address the applicable items presented in the list below. 1. Production of Housing Based on Activities in the Merged Project Area a. At least thirty percent (30 %) of all new and substantially rehabilitated dwelling units developed by an agency shall be available at affordable housing cost to persons and families of low and moderate income and shall be occupied by these persons and families (Section 33413(b)(1)); b. At least fifteen percent (15 %) of all new residential units dwelling units developed within a project area under the jurisdiction of an agency by public or private entities or persons other than the Agency shall be available at affordable housing cost to persons and families of low or moderate income and shall be occupied by these persons or families (Section 33413(b)(2)); C. At least fifteen percent (15 %) of all substantially rehabilitated units that have received agency assistance shall be available at affordable housing cost to persons and families of low or moderate income and shall be occupied by these persons or families (Section 33413(b)(2)(iii); and d. Suitable locations must be identified for replacement housing units rehabilitated, developed or constructed pursuant to Section 33413(a), if the destruction of removal of low -mod units will result from a project contained in the Implementation Plan (Section 33490(a)(3)). 2. Set -Aside and Expenditure of Tax Increment for Housing Purposes a. The "Set- Aside" of twenty percent (20 %) of tax increment in projects adopted on or after January 1, 1977 (Section 33334.2); b. The proportional expenditure of housing funds on low and very-low income housing (Section 33334.4); and Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 35 PA0409013.A NA: PA:gbd 10021.007.001/12103/04 C. The transfer of housing funds to other public entities producing housing in the community (a possible outcome of the provisions of Sections 33334.12 et seq.). Article 16.5 also requires: 1. Estimates of the balances and deposits into the Housing Fund created to hold the Set -Aside of tax increment; 2. A housing program identifying anticipated expenditures from the Housing Fund; 3. An indication of housing activity that has occurred in the Merged Project Area; and 4. Estimates of housing units that will be produced for each of the various income categories. All the information required by Article 16.5 is provided in the following sections of this Implementation Plan. B. HISTORICAL AFFORDABLE HOUSING ACTIVITIES 1. Inside the Merged Project Area The first Project Area (former Alpha Project Area) included in the Merged Project Area was adopted in 1973. Between 1973 and 2004, the Agency completed the following affordable housing activities within the Merged Project Area: 2. Outside the Merged Project Area In addition to the affordable housing activities within the Merged Project Area as described above, the Agency has assisted in the completion of affordable housing outside the Merged Project Area. Between 1973 and 2004, the Agency completed the following affordable housing activities outside of the Merged Project Area: Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 36 PA0409013.ANA: PA:gbd 10021.007.001/12 /03/04 Year Project Number Number of Covenant Project Name Built Type of Units Affordable Units Period Solara Court 2003 Senior /Rental 132 132 55 -years Linbrook Courts 2003 Senior /Rental 80 80 55 -years California Renaissance 1994 Ownership 152 49 30 -years Heritage Place 1992 Ownership 395 28 30 -years Totals 759 289 2. Outside the Merged Project Area In addition to the affordable housing activities within the Merged Project Area as described above, the Agency has assisted in the completion of affordable housing outside the Merged Project Area. Between 1973 and 2004, the Agency completed the following affordable housing activities outside of the Merged Project Area: Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 36 PA0409013.ANA: PA:gbd 10021.007.001/12 /03/04 C. APPLICABLE LOW AND MODERATE INCOME HOUSING REQUIREMENTS 1. Replacement Housing Obligation The Agency is required to meet replacement- housing obligations pursuant to Section 33413(a). This Section requires the Agency to replace, on a one - for -one basis, all units removed from the inventory as a result of Agency actions that are occupied by low -mod income households. In addition to matching the income levels of the removed units, the Agency must also replace an equal or greater number of bedrooms. The homes that are removed from the inventory may be replaced with fewer units as long as an equal or greater number of bedrooms are provided in the replacement units. Replacement housing units do not have to match tenure (i.e., rental vs. ownership, family vs. senior housing) as the units removed from inventory. Also, replacement units can be developed anywhere within the City limits. Article 16.5 requires that if an implementation plan contains projects that could result in the removal of low -mod housing units, the plan must identify locations suitable for the replacement of such housing. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 37 PA0409013.ANA:PA:gbd 10021.007.001/12 /03/04 Number of Year Project Number Affordable Covenant Project Name Built Type of Units Units Period Jeffrey Lynne -Phase II 2004 Rental 112 112 55 -years Tyrol Plaza 2004 Senior /Rental 59 59 55 -years Casa Alegre 2003 Rental 22 22 55 -years California Villas 2003 Rental 34 34 55 -years The Fountains 2001 Senior /Rental 259 259 30 -years Cobblestone 2000 Rental 64 64 55 -years Seawinds 2000 Rental 91 91 55 -years Jeffrey Lynne -Phase 1 2000 Rental 309 309 55 -years Park Vista 2000 Rental 392 392 55 -years Cypress Infill 1998 Ownership 47 47 30 -years South of Romneya 1998 Rental 176 176 55 -years Manzanita Walk 1998 Ownership 48 48 30 -years Totals 1,613 1,613 C. APPLICABLE LOW AND MODERATE INCOME HOUSING REQUIREMENTS 1. Replacement Housing Obligation The Agency is required to meet replacement- housing obligations pursuant to Section 33413(a). This Section requires the Agency to replace, on a one - for -one basis, all units removed from the inventory as a result of Agency actions that are occupied by low -mod income households. In addition to matching the income levels of the removed units, the Agency must also replace an equal or greater number of bedrooms. The homes that are removed from the inventory may be replaced with fewer units as long as an equal or greater number of bedrooms are provided in the replacement units. Replacement housing units do not have to match tenure (i.e., rental vs. ownership, family vs. senior housing) as the units removed from inventory. Also, replacement units can be developed anywhere within the City limits. Article 16.5 requires that if an implementation plan contains projects that could result in the removal of low -mod housing units, the plan must identify locations suitable for the replacement of such housing. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 37 PA0409013.ANA:PA:gbd 10021.007.001/12 /03/04 a. Past Removal of Low and Moderate Income Units According to Agency staff, and detailed in Table H -1, the following summarizes the low and moderate income housing units have been removed from the Merged Project Area's housing stock since the first constituent Project Area of the Merged Project Area was adopted in 1973: Year Units Project Name Removed Removed President's Tract 2001 5 Lazy Living Mobile Home Park 2003 16 Totals 21 b. Future Removal of Low and Moderate Income Units This Implementation Plan does not include projects or programs that would result in the removal of housing units from the low -mod income housing stock. Therefore, there is no requirement to identify locations for replacement housing units. C. Replacement Housing Obligation The Agency's replacement housing obligation must be calculated based on the number of bedrooms included in the units that are removed from the inventory. The outstanding obligation is detailed in Table H -1, and is summarized in the following table: Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 38 PA0409013.ANA: PA:gbd 10021.007.001112/03/04 Very Low Income Low Income Moderate Income Total Unit Type Units Bdrms Units Bdrms Units Bdrms Units Bdrms One -bdrm 2 2 0 0 1 1 3 3 Two -bdrms 7 14 6 12 0 0 13 26 Three -bdrms 4 12 0 0 1 3 5 15 Totals 13 28 6 12 2 4 21 44 Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 38 PA0409013.ANA: PA:gbd 10021.007.001112/03/04 C »& �« k§ §o k0 k§ 0� §§ 2} § 2z LLJ j] ui- ��; �§� - §wk } § \k § \ k E � \ � o o n n 7 m 2 ® 0 § § § E } § \ c ƒ 3: 0 0 0 � 2 0 0 o I E \ a e j - $ a § 4) E o o # _ 0 2 C-4 ) a) g {§ §§ 20 \ > -i >-J `I % k \ § 0 0 0 0 0 0 = £ 4) # 4) m k & o ƒ o 0 \E >§ 0 3 o ■ 7m cc t Ee \ = o e k ■ 2 ° \ } \ \ k \ o t- o w T o # 5/ a) /■ § k / �j >� E_ / - ® 2 S § / k j o o a 2 ) ° & o _§ ® ) 2 0 0 ƒ 2 76 § o 2 7 \ o C. , 0 0 ] , 0 0 0 §\ \ j & j E 2 % » C) c o N o / } ® , / j >J >j # � § a © 0' 2 ■ j f p ƒ/ \ ae o C _ y i 2 ) E g G g 0 c \ > 2 \ ] \ 2 2 ) � ) � ) E ( \ & \ cc b \ ) 7 ƒ )\ k§ Eo ƒf° Q % & ; & p ] « \ }�E 7 k k J t \ \f \ \ E� a \} F CL F f o a ) cc §\ 2f ( ƒ ( ƒ ƒ a) f * z E �\ » a a) g a e E 4) o = e = 7 a a E e m E e ®»o 5 5»9$ }= © c z 2 — _ z _ $ 2 — / m a e 7 a) 0 k I� _\jƒ N § 0 { 2 ] ° k °% IL I t a-i IL o¢_ / a 3 } CN CD 0 #m )E \E (D/ ƒ/ /\ of (/ CU �E d. Replacement Housing Fulfillment As shown in Table H -2, to fulfill the existing replacement housing obligation, the Agency has replaced the Lazy Living Mobile Home Park (16 units) with the Solara Court Senior Project (132 units) and will replace the President's Tract (5 units) with eight (8) new units that are currently under construction. The Agency plans to place 45 -year affordability covenants on the eight units at the President's Tract and already has 55 -year affordability covenants on the units located at the Solara Court Senior Project. In addition, to fulfill the very-low income three - bedroom unit obligations, four three - bedroom units of the 112 total units in the Jeffrey Lynne Phase II project are identified as replacement housing fulfillment units. The detailed breakdown is provided in Table H -2, and the results can be summarized as follows: The following summarizes the replacement housing surplus /(deficit) calculated on the basis of number of bedrooms for the life of the Merged Project Area, which is detailed in Table H -3: Very Low Income Low Low Income Moderate Income Incom Total Income Unit Type Units Bdrms Units Bdrms Units Bdrms Units Bdrms One -bdrm 54 54 54 54 0 0 108 108 Two -bdrms 12 24 12 24 0 0 24 48 Three -bdrms 4 12 0 0 8 24 12 36 Totals 70 90 66 78 8 24 144 192 The following summarizes the replacement housing surplus /(deficit) calculated on the basis of number of bedrooms for the life of the Merged Project Area, which is detailed in Table H -3: As can be seen in the preceding table, the Agency has provided a replacement housing surplus of 123 units and 148 bedrooms. As a result, the Agency has fulfilled the 21 -unit, 44- bedroom replacement housing obligation. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 40 PA0409013.ANA: PA:gbd 10021.007.001/12 /03/04 Very-Low Low Moderate Incom Income Income Total Units Bdrms Units Bdrms Units Bdrms Units Bdrms Fulfillment 70 90 66 78 8 24 144 192 Obligation (13) (28) (6) (12) (2) (4) (21) (44) Surplus / (Deficit) 57 62 60 66 6 20 123 148 As can be seen in the preceding table, the Agency has provided a replacement housing surplus of 123 units and 148 bedrooms. As a result, the Agency has fulfilled the 21 -unit, 44- bedroom replacement housing obligation. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 40 PA0409013.ANA: PA:gbd 10021.007.001/12 /03/04 « LU « v �§ da z «2 Z q2 }\ D . U) D CL z o E § zr] ~ w w kww m a w_4 k� J� k� � >- Cl) \ \ � \ � cc E / cc Z / c -j 0 \ \ / IL m = e 0 � 0 � 0 / ® a C-4 � E § o I $ 2 7� 1 4) E } k § / � ° 3 ° A U) 2 \ § E ■ \ , 0 0 0 0 -j o o a N ƒ§ 0 0 0 0 , ) \ 0 . E ■ k ■ 4 ° ° m � 0 A >-J 0 0 0 0 . m \ § § ■ k 3 / ° ° 2 $ 0 J ! / 0 0 2 >-J p f K 2 04 0§ \ j |\ \ \ § E } \ U) ƒ 4) cu \ } E B \ c Z / \ ± 4) � m f Q ■ � 0 a m / k \ E j E 6 ° E CO � } « � & } / \ \ o \ } \ 0 EE2= E J = § - a - ]N \) (5 - 2 « \ t t ) b a t ( # k { § 5 ' / E } = 7 § r o @ E m $\3\ )E o s a 2 = ® c / �\ 2 t ; 7 E a * 7 ; e ° z z + § ]f!E C) e e \ o = = o o ) ) 2 a o o 0 0 0 0 j 0 0 0 I It {§ > -J 0 0 0 0 0 t 0 � 2 0 0 0 0 j N 0 0 0 K 4 K 0 0 0 0 0 2 � k / 0 0 0 0 j 4 0 # 0 0 0 0 0 >� 3$/ a = = « « �§ Cl) \ \ � \ � cc E / cc Z / c -j 0 \ \ / IL m = e 0 � 0 � 0 / ® a C-4 � E § o I $ 2 7� 1 4) E } k § / � ° 3 ° A U) 2 \ § E ■ \ , 0 0 0 0 -j o o a N ƒ§ 0 0 0 0 , ) \ 0 . 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E ■ k ■ 4 ° ° m � 0 A >-J 0 0 0 0 . m \ § § ■ k 3 / ° ° 2 $ 0 J ! / 0 0 2 >-J p f K 2 04 0§ \ j |\ \ \ § E } \ U) ƒ 4) cu \ } E B \ c Z / \ ± 4) � m f Q ■ � 0 a m / k \ E j E 6 ° E CO � } « � & } / \ \ o \ } \ 0 EE2= E J = § - a - ]N \) (5 - 2 « \ t t ) b a t ( # k { § 5 ' / E } = 7 § r o @ E m $\3\ )E o s a 2 = ® c / �\ 2 t ; 7 E a * 7 ; e ° z z + § ]f!E C) e e \ \ j |\ \ \ § E } \ U) ƒ 4) cu \ } E B \ c Z / \ ± 4) � m f Q ■ � 0 a m / k \ E j E 6 ° E CO � } « � & } / \ \ o \ } \ 0 EE2= E J = § - a - ]N \) (5 - 2 « \ t t ) b a t ( # k { § 5 ' / E } = 7 § r o @ E m $\3\ )E o s a 2 = ® c / �\ 2 t ; 7 E a * 7 ; e ° z z + § ]f!E C) e e \ / k \ E j E 6 ° E CO � } « � & } / \ \ o \ } \ 0 EE2= E J = § - a - ]N \) (5 - 2 « \ t t ) b a t ( # k { § 5 ' / E } = 7 § r o @ E m $\3\ )E o s a 2 = ® c / �\ 2 t ; 7 E a * 7 ; e ° z z + § ]f!E C) e e \ Q W Q H U W O w �a U 0 _ W U. W (X W J W a. Q' a c Q U Z D d z Z d' O 0 W aa Cf W W W Q w W m d J Q a N C O a d a a M OD d r 4) N N l`6 y 01 = N 0 _ 0 E O O J a J , d d Nt j J J 4) d ' GI > C O O � a O N r d O ... r •° a o N � J E � J O m m y m GI a !' GN c a E O 0 0 L In c`n LO J J d ;J ;J y t0 .+ V N •C M N N N R ,._+ 01 V Ct C o . N C O O = R 4) Z O d v V U n a i y 3 n V 7 a c . N 3 O O O 2 E cu m m d Z 0 m V V d - (;� —. . J 2 2 W W J J H H 0 in r N , I- 0 0 N N N ri S 0 0 N ti 0 C N U) C N � .cua U C O y . O Q m c � N E N E u) E Y m a N E C a ii 2. Inclusionary Housing Obligation The Agency is required to comply with the affordable housing unit production requirements imposed by Section 33413(b): Subparagraph (1) of the Section requires that 30 percent of all housing units developed by the Agency be to low -mod housing subject to long -term income and affordability covenants .3 Of these low -mod units, 50 percent must be affordable to persons and families of very-low income. Subparagraph (2) of Section 33413(b) requires that 15 percent of all housing developed in the Merged Project Area be low -mod housing subject to long -term income and affordability covenants. Of these low -mod units, 40 percent must be affordable to persons and families of very-low income. To determine the number of units that must be developed in order to comply with this requirement, and to identify how much of this requirement will be satisfied by the activities included in this Implementation Plan, a brief review of past and anticipated housing development activity in the Merged Project Area is presented below. a. Past Development of Housing in the Merged Project Area (1983 — 2004) An estimated 1,581 housing units have been substantially rehabilitated or developed within the Merged Project Area since the first Project Area was adopted in 1973. Of this total, 909 units were either developed or substantially rehabilitated within the former Alpha Project Area, which is not subject to the inclusionary unit requirements described above. Therefore, as detailed in Table H -4, the remaining balance of 672 units developed or substantially rehabilitated within the Merged Project Area are subject to the inclusionary requirements outlined above. None of the 672 units were developed by the Agency. b. Current and Future Housing Construction Activity in Project Area As shown in Table H -5, approximately 573 units are in the process of being developed within the Merged Project Area, which will be subject to the inclusionary requirement.' Also, there are 299 additional units that are expected to be developed in the Merged Project Area over the next ten (10) years. Therefore, during the Implementation Plan period, a total of 827 units are estimated to be added to the Merged Project Area. 3 The definition of Agency developed units are those units produced entirely by the Agency. 4 An additional 500 units are being developed within the former Alpha Project Area. However, these units are not subject to the inclusionary housing requirements. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 43 PA0409013.ANA: PA: gbd 10021.007.001/12/03/04 0 CD N M 0) Q W Q H U W O o_ G Q W W W IX 2 Q W V 2 W H _Z O S d' F. a 3 ww ~ (7 Z � W W 2 2 O� J w W = w a Z J Q a Z Z Q C W J 2 In z d C Q) O_ u I F J � C = U W 2 u J O W 3 J c O Z aO CO O O O N N CO v t 7 O O O O O O O O O O O a d rn rn 0 0 0 0 0 0 0 0 0 N N N N N N N N N O U m O O r 'IT N co W O M ;a m V w N •� O D a` m E E E E E > E E E E • O U) N 0 N N O > N N N N c O 3 3 3 3 3 m 3 3 3 3 3 i T N N N N N L N N N (1) N ;� Z Z Z Z Z a) Z Z Z Z Z c O U _ a s o. a s n. a a s O . N N N N N N N fl N W o f c c c c c c c p c c p IL 0 0 0 0 0 0 0 a O O a co U d 0 IL r N d C m U T E cey L) m m :3 c a E c J J N N C m > as o a ¢ m p U m e _ c > .6 Of 7 C J O m C @ O m N C c o 0 Y 0 o N JJ J C 06 d > 0 LO Y a co m C U N m O N O T U N Z *6 N N c m d 00 c c m c c U > 0 N = E c a- c m m L ° N m c > o m a L 3 > a) J d U J Y J (n J > ( N <O N c c O U 7 a 0 CL S O N cR M O O N Ira N 00 co Lo O I (D O W O N d N = c O� 'o m c 0 ,4 c v � c d m a cc m c O rn � m a E 0 m m ° O 0 0 0 0 U m N C,4 N N N N r t0 N C w c O n N 0 O m m N m 3 N U N d N E a� Q m m c c o m N N 7 U � c c o m > m L c O -6 C O N C N N O N a m � O ¢ a O U U) m N m a 3 m c L m as ¢ O � L E c°1i O C w ' L N F .Q U ¢ N O N d N L U t _a >a V N r L N C_ O O N U O) i N N = C a O � U r N � C 7 U) rn E 0 C y N w m U O C � Q t (D ~ r N o m n� c m m 0 O V C) N N N a 2 7 O N U O C (V N C U7 m 2a U C O O N ._ ¢ m c c O N N N _E N E (D 'm Y L m C d ¢ m CL c N N L ii § m � § 04 m * m ° ° m r- - ~ C:, -a ƒ 0 Cl) r=\ Ek k \ \ \ \ \ \ \ \ \ k G N 04 _ ; 04 c r �� � / , n CY) ° �# {_� f/ §� �IL | f ) ) * « « m « 2 oc f £ £ k k k E< E E E k k § 0 E e L\\\ o / 3 3 3 2 3a C �| | « & f ° ! t 3: # « ! 3: ! < « z z 2+) z} z z z 0 0 k § § § § § § k « < a. j\ k k \/ k z z \ / E ƒ ƒ 4 7 6 3 . ƒ \ / ® -6 - \ w < < a 3 ) 3 / \ \ \ 2 / k $ o a o \ a e ° \ § I k D 7 t / ( } \ i > » o � 2 a w c. » E\ / ® k = j ] 5 j � CC 0 [ 2ƒ \ ƒ/ £\ § 3 \) { ( �\ 0 \\ \ \\ \� Co ) \ \% ƒ: £m8 \\ \\ m § \ (D /k CD , \ \0 \)f� 3: C) \ ¥g /2 o) ww[ §7 \ {k < < z ~ S § f U) \ \ /\E § \ §\\ 04 r- ƒ / } \j (D Q) &{ $[j E o E> fE \f \Q2 &# & {( (D a) 2 / < :3 (D (D o� o \m0< CL & _ § D 3 - 2 C) Cl \) /; #) )( /E as ƒ{ t{ ]e [2 z2 04 N L ƒ 0 e r=\ r G ( § \ ( ( \ [ 2ƒ \ ƒ/ £\ § 3 \) { ( �\ 0 \\ \ \\ \� Co ) \ \% ƒ: £m8 \\ \\ m § \ (D /k CD , \ \0 \)f� 3: C) \ ¥g /2 o) ww[ §7 \ {k < < z ~ S § f U) \ \ /\E § \ §\\ 04 r- ƒ / } \j (D Q) &{ $[j E o E> fE \f \Q2 &# & {( (D a) 2 / < :3 (D (D o� o \m0< CL & _ § D 3 - 2 C) Cl \) /; #) )( /E as ƒ{ t{ ]e [2 z2 It is anticipated that the Merged Project Area will be built out once 1,621 units are developed. It is expected that the remaining 749 units to build -out will be constructed between 2015 and 2029. The total 1,621 projected units to be developed between 2005 and 2029 will all be subject to the inclusionary housing requirements. C. Inclusionary Housing Obligation As shown in Table H -6, the Section 33413(b) inclusionary housing requirements triggered by the historical and projected development in the Merged Project Area from 1983 through the life of the Merged Project Area, or 2029, are as follows: Therefore, the inclusionary housing obligation during the Implementation Plan period totals 104 affordable units. The estimated maximum inclusionary housing obligation for the Merged Project Area is estimated at 348 units. d. Inclusionary Housing Production As detailed in Table H -7, as of 2004 four projects were developed within the Merged Project Area for a total of 289 inclusionary production units. In addition, 1,549 affordable units were constructed in 13 projects located outside of the Merged Project Area. However, for housing units restricted for very low, low and moderate income households located outside of the Merged Project Area, two (2) units must be provided for every one (1) unit of inclusionary unit credit. Therefore, only 776.5 of the units can be counted towards fulfilling the inclusionary housing obligation. The following summarizes the total countable inclusionary fulfillment units through 2004: Very-Low Low /Moderate Moderate Income Units Income Units Total Units Current Obligation (1983 - 2004) 0 0 0 Implementation Plan (2005 - 2014) 43 61 104 Life of Plan (2015 - 2029) 98 146 244 Totals 141 207 348 Therefore, the inclusionary housing obligation during the Implementation Plan period totals 104 affordable units. The estimated maximum inclusionary housing obligation for the Merged Project Area is estimated at 348 units. d. Inclusionary Housing Production As detailed in Table H -7, as of 2004 four projects were developed within the Merged Project Area for a total of 289 inclusionary production units. In addition, 1,549 affordable units were constructed in 13 projects located outside of the Merged Project Area. However, for housing units restricted for very low, low and moderate income households located outside of the Merged Project Area, two (2) units must be provided for every one (1) unit of inclusionary unit credit. Therefore, only 776.5 of the units can be counted towards fulfilling the inclusionary housing obligation. The following summarizes the total countable inclusionary fulfillment units through 2004: Therefore, as of 2004, the Agency has produced 889.5 inclusionary fulfillment units. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 46 P A0409013. A N A. P A: g b d 10021.007.001/12/03104 Very-Low Low Moderate Income Income Income Totals Inside Project Area 271.0 75.0 181.0 527.0 Outside Project Area 465.0 213.5 97.0 774.5 Total Countable Units 736.0 287.5 278.0 1,301.5 Therefore, as of 2004, the Agency has produced 889.5 inclusionary fulfillment units. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 46 P A0409013. A N A. P A: g b d 10021.007.001/12/03104 Q W R' a r V W O w CL w Z W O� r � Q w co z C7 _ J a O a z Z Z Q e N � a 0 = O u Ix co Z Z 2 2 w u W J W 3 In < CL d E O V C 0 cc L 3 O J m r- N I I I I I I m O r N 0 O I- O c0 O j V a ry I I I I I I I I I I I I C w Q O co CD co N c0 W R O r O co cD CD �! ao y rn E L ur C O � � ry I I I , I I I I I I I , d w C O� 1I1 m O r of r N N . C "I N O c0 � � O "t N N Cl) -It N N L !' O c � ry I I I I I I I I I , I I C + O A d } N N O O LO O O O O O N M V t0 O O O O O O O O O O O O N N N N N N N N N N N N rl o ' N c0 V O ' N * 0 v rn v I I 11 O N M N M c N M It -1 N m N N N O C N N {- N m o C y 7 w to O L m m m N N C) O m N N C N r p U U I (0 N I � 0 E I � c i m 3 o O I � I � i U N I � N U m i m I L] I � r I � m m w C ' C O C N N N m o m v m v T m v m m °o m O m N N C N N p U U m N n C N N o m m co m =3 y = v o U E E N p O 'C 'E C N C N N y C m O w Y m d o c o c y O O O Q i0 m M C C C 0 N N � N 0 Z: N _O y N m d E my v yE_ O co N C N 'C Y L 7 3 7 C S H E E -0 Q L N o d o "O N E F (f) C U) C n N N a iTL TABLE H -7 INCLUSIONARY HOUSING FULFILLMENT ANALYSIS' IMPLEMENTATION PLAN - ANAHEIM MERGED PROJECT AREA ANAHEIM, CALIFORNIA I. Fulfillment Projects Year Project Covenant Total Units Type Terms Produced Very- Total Low Low Moderate Countable Income Income Income Units Units Units Units ' Based on information provided by the Agency (Filename: 5YRIPHsg2004- 2014V2; Sheet A -2). z Units constructed outside of the Project Area are counted on a 1 for 2 basis. J These projects are located in the Alpha Project Area. The inclusionary housing obligation is calculated on a rolling 10 -year period. The first development in the Merged Project Area that triggers an inclusionary housing obligation occurred in 1998. Therefore, the first obligation is to be met by 2008. Prepared by: Keyser Marston Associates, Inc. Filename: Anaheim Implementation Plan 12 02 04; H -7; jlr; 12/2/2004 Inside Project Area Heritage Place' 1992 Ownership 30 Years 395.0 28.0 0.0 0.0 28.0 California Renaissance 3 1994 Ownership 30 Years 152.0 49.0 0.0 0.0 49.0 Linbrook Courts 2003 Senior /Rental 55 Years 80.0 80.0 60.0 20.0 0.0 Solara Court 2003 Senior /Rental 55 Years 132.0 132.0 101.0 31.0 0.0 President's Tract - Cantada Lane 2005 Ownership 45 Years 28.0 8.0 0.0 0.0 8.0 Laing The Boulevard 2005 Ownership 45 Years 56.0 36.0 0.0 8.0 28.0 Brookfield Cantada Square 2005 Ownership 45 Years 82.0 41.0 1.0 16.0 24.0 Vine Street - Mercy 2006 Rental 55 Years 59.0 60.0 59.0 0.0 1.0 Laing Kwikset Site 2007 Ownership 45 Years 129.0 43.0 0.0 0.0 43.0 Lewis Kwikset Site 2007 Rental 55 Years 200.0 50.0 50.0 0.0 0.0 ' Based on information provided by the Agency (Filename: 5YRIPHsg2004- 2014V2; Sheet A -2). z Units constructed outside of the Project Area are counted on a 1 for 2 basis. J These projects are located in the Alpha Project Area. The inclusionary housing obligation is calculated on a rolling 10 -year period. The first development in the Merged Project Area that triggers an inclusionary housing obligation occurred in 1998. Therefore, the first obligation is to be met by 2008. Prepared by: Keyser Marston Associates, Inc. Filename: Anaheim Implementation Plan 12 02 04; H -7; jlr; 12/2/2004 Outside Project Area Cypress Infill 1998 Ownership 30 Years 47.0 23.5 0.0 6.0 17.5 Manzanita Walk 1998 Ownership 30 Years 48.0 24.0 1.0 6.5 16.5 South of Romneya 1998 Rental 55 Years 176.0 88.0 87.0 0.0 1.0 Cobblestone - 870 Beach Blvd. 2000 Rental 55 Years 64.0 32.0 6.5 0.0 25.5 Seawinds - 1924 Glen Oaks 2000 Rental 55 Years 91.0 45.5 9.0 0.0 36.5 Jeffrey Lynn - Phase 1 2000 Rental 55 Years 309.0 154.5 146.5 8.0 0.0 Park Vista 2000 Rental 55 Years 392.0 196.0 59.0 137.0 0.0 The Fountains 2001 Senior /Rental 30 Years 259.0 65.0 26.0 39.0 0.0 Casa Alegre (Mercy AIDS /HIV Housing) 2003 SN /Rental 55 Years 22.0 11.0 11.0 0.0 0.0 California Villas Sterling Court 2003 Senior /Rental 55 Years 34.0 17.0 17.0 0.0 0.0 Tyrol Plaza 2004 Senior /Rental 55 Years 59.0 29.5 19.5 10.0 0.0 Westchester 2004 Rental 55 Years 65.0 32.5 32.5 0.0 0.0 Jeffrey Lynn - Phase II 2004 Rental 55 Years 112.0 56.0 50.0 6.0 0.0 Habitat for Humanity 2005 Ownership 45 Years 4.0 2.0 1.0 1.0 0.0 Total Inclusionary Housing Fulfillment 2,995.0 1,303.5 737.0 288.5 278.0 Very- Low/ Total Low Mod Countable Income Income II. Current Inclusionary Housing Surplus / (Deficit) Units Units Un Total Inclusionary Housing Fulfillment 2 889.5 626.0 263.5 (Less) Inclusionary Housing Obligation " 0.0 0.0 0.0 Inclusionary Housing Surplus / (Deficit) 889.5 626.0 263.5 Very- Low/ Total Low Mod Countable Income Income 111. 10 Years and Life of Plan Inclusionary Housing Surplus/ (Deficit) Units Units Units Total Inclusionary Housing Fulfillment 1,303.5 737.0 566.5 (Less) Inclusionary Housing Obligation (348.0) (141.0) (207.0) Inclusionary Housing Surplus / (Deficit) 955.5 596.0 359.5 ' Based on information provided by the Agency (Filename: 5YRIPHsg2004- 2014V2; Sheet A -2). z Units constructed outside of the Project Area are counted on a 1 for 2 basis. J These projects are located in the Alpha Project Area. The inclusionary housing obligation is calculated on a rolling 10 -year period. The first development in the Merged Project Area that triggers an inclusionary housing obligation occurred in 1998. Therefore, the first obligation is to be met by 2008. Prepared by: Keyser Marston Associates, Inc. Filename: Anaheim Implementation Plan 12 02 04; H -7; jlr; 12/2/2004 Table H -7 also estimates the current and life of plan inclusionary housing surplus, which is summarized as follows: In summary, while the Agency does not currently have an inclusionary housing obligation, the inclusionary housing units produced between 1983 through 2004, will meet the future inclusionary housing obligations. In fact, at build -out of the Merged Project Area, the Agency is expected to have a 955.5 inclusionary housing surplus. Thus, the Agency is anticipated to exceed the low -mod housing production requirements imposed by Section 33413(b). D. APPLICABLE DEPOSIT AND EXPENDITURE PROVISIONS 1. Set -Aside of Tax Increment The Merged Project Area is subject to the Section 33334.2 requirement to allocate 20 percent of the gross tax increment (Set- Aside) to affordable housing activities. The Set -Aside is required to be deposited into a Housing Fund created to hold the monies until expended. The projections of deposits into the Housing Fund are discussed in the following section of the Implementation Plan. 2. Proportional Expenditures of Housing Fund Monies The Merged Project Area is subject to the Section 33334.4 requirement that the Agency expend Housing Fund monies in accordance with an income proportionality test and an age restriction proportionality test. These proportionality tests must be met between January 1, 2002 and December 31, 2014, and then again at 10 -year intervals throughout the remaining life of the Merged Project Area. These tests do not have to be met on an annual basis. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 49 PA0409013.ANA: PA:gbd 10021.007.001112/03/04 Low / Very-Low Moderate Income Income Total Units Units Units 1983 — 2004 Inclusionary Housing Obligation 0 0 0 2005 — 2014 Inclusionary Housing Obligation (43) (61) (104) 2015 — 2029 Inclusionary Housing Obligation (98) (146) (244) Total Obligation 1983 — Life of Plan (141) (207) (348) 1983 — 2004 Inclusionary Production Units 626.0 263.5 889.5 2005 — 2014 Inclusionary Production Units 111.0 303.0 414.0 Total Inclusionary Housing Surplus 596.0 359.5 955.5 In summary, while the Agency does not currently have an inclusionary housing obligation, the inclusionary housing units produced between 1983 through 2004, will meet the future inclusionary housing obligations. In fact, at build -out of the Merged Project Area, the Agency is expected to have a 955.5 inclusionary housing surplus. Thus, the Agency is anticipated to exceed the low -mod housing production requirements imposed by Section 33413(b). D. APPLICABLE DEPOSIT AND EXPENDITURE PROVISIONS 1. Set -Aside of Tax Increment The Merged Project Area is subject to the Section 33334.2 requirement to allocate 20 percent of the gross tax increment (Set- Aside) to affordable housing activities. The Set -Aside is required to be deposited into a Housing Fund created to hold the monies until expended. The projections of deposits into the Housing Fund are discussed in the following section of the Implementation Plan. 2. Proportional Expenditures of Housing Fund Monies The Merged Project Area is subject to the Section 33334.4 requirement that the Agency expend Housing Fund monies in accordance with an income proportionality test and an age restriction proportionality test. These proportionality tests must be met between January 1, 2002 and December 31, 2014, and then again at 10 -year intervals throughout the remaining life of the Merged Project Area. These tests do not have to be met on an annual basis. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 49 PA0409013.ANA: PA:gbd 10021.007.001112/03/04 a. Very-Low and Low Income Housing Expenditures The income proportionality test requires that the Agency expend Set -Aside funds in proportion to the housing needs that have been determined for the community pursuant to Section 65584 of the Government Code. The proportionality test used in this Implementation Plan is based on information contained within the City's General Plan. Based on the City's General Plan, the City's minimum required allocation for very-low and low income expenditures, and maximum moderate income housing expenditures are: Category Threshold Very-Low Income: At least 39% Low Income: At least 23% Moderate Income: No more than 38% It should be noted that the Agency is entitled to expend a disproportionate amount of the funds for very-low income households, and to subtract a commensurate amount from the low and /or moderate income thresholds. Similarly, the Agency can provide a disproportionate amount of funding for low income housing by reducing the amount of funds allocated to moderate income households. In no event can the expenditures targeted to moderate income households exceed the established threshold amount. As shown in Table H -8, a total $142,366,000 of net Set -Aside funds are estimated to be deposited into the Housing Fund between January 1, 2002 and December 31, 2014. These funds must comply with the following distribution formulas: Maximum Estimated Expenditure on Moderate Income Units @ 38% $54,099,000 Minimum Estimated Expenditure on Low Income Units @ 23% $32,744,000 Minimum Estimated Expenditure on Very-Low Income Units @ 39% $55,523,000 As of the end of fiscal year 2003/04, the Agency has spent the following Set -Aside funds by category: 5 These funds are net of administration costs and debt service, and include other housing revenues (land sales, residual receipts revenues, loan repayments, bond proceeds and fund balances from prior to January 1, 2002). Anaheim Redevelopment Agency - Implementation Plan for the Anaheim Merged Redevelopment Project Area Keyser Marston Associates, Inc. 2005 to 2009 Page 50 PA0409013.A NA: PA:gbd 10021.007.001/12103/04 Actual As a % of Expenditures Requirements Very-Low Income Households $12,144,000 22% Low Income House 8,467,000 26% Moderate Income Households 16,905,000 31% Total Expenditures $37,486,000 26% 5 These funds are net of administration costs and debt service, and include other housing revenues (land sales, residual receipts revenues, loan repayments, bond proceeds and fund balances from prior to January 1, 2002). Anaheim Redevelopment Agency - Implementation Plan for the Anaheim Merged Redevelopment Project Area Keyser Marston Associates, Inc. 2005 to 2009 Page 50 PA0409013.A NA: PA:gbd 10021.007.001/12103/04 TABLE H -8 FUTURE HOUSING SET -ASIDE FUND EXPENDITURES PROJECTION (FY 2001/02 - FY 2013/14) IMPLEMENTATION PLAN - ANAHEIM MERGED PROJECT AREA ANAHEIM, CALIFORNIA Totals $95,774,000 II. Maximum Expenditures on Age Restricted Projects' $98,431,000 ($9,963,000) ($41,876,000) $142,366,000 8.0% of Net Tax Increment $11,389,000 III. Income Targeting Expenditures' Maximum Expenditures on Moderate Income Households Minimum Expenditures on Low Income Households Minimum Expenditures on Very-Low Income Households IV. Expenditure Projections Actual Expenditures (1/2002 - FY 2003/04) Projected Expenditures (FY 2004/05 - FY 2014/15) Total Expenditures Of Total Expenditures 38.0% of Net Tax Increment $54,099,000 23.0% of Net Tax Increment $32,744,000 39.0% of Net Tax Increment $55,523,000 Age Very-Low Low Moderate Restricted $12,114,000 $8,467,000 $16,905,000 $1,318,000 43,409,000 24,277,000 37,194,000 10,071,000 $55,523,000 $32,744,000 $54,099,000 $11,389,000 39% 23% 38% 8% I Based on Agency estimates. Includes funds and expenditures from January 1, 2001 through the remaining years of the current Implementation Plan plus two 5 year Implementation Plan terms. 2 Net of County Administration expenses, estimated at 1 % of the gross tax increment. 3 Includes land sales, residual receipts revenue, loan repayments, bond proceeds and unused fund balance. 4 Estimated by calculating 50% of the FY 2001/02 actuals. 5 Includes unused fund balances of $4,049,000 in Year 1, $3,843,000 in Year 2, and $4,583,000 in Year 4. 6 Estimated by calculating 50% of the FY 2014/15 budget estimates, which are based on FY 2013/14 budget estimates. 7 Per the 2000 United States Census. 6 Per the Regional Housing Needs Assessment estimates provided in the City's current Housing Element. Prepared by: Keyser Marston Associates, Inc. Filename: Anaheim Implementation Plan 12 02 04; H -8; jlr; 12/2/2004 Other (Less) (Less) Net Housing Housing Admin. Existing Debt Housing I. Proportionality Compliance Period' Set -Aside ` Revenues' Costs Service Set -Aside 1/1/2002 - 6/30/2002 $2,715,000 $7,286,000 5 ($226,000) ($1,256,000) $8,519,000 FY 2002/03 5,497,000 11,684,000 5 (1,057,000) (2,525,000) 13,599,000 FY 2003/04 6,266,000 15,158,000 (1,430,000) (2,400,000) 17,594,000 FY 2004/05 6,700,000 16,465,000 5 (1,000,000) (2,399,000) 19,766,000 FY 2005/06 7,177,000 18,381,000 (1,000,000) (2,393,000) 22,165,000 FY 2006/07 7,334,000 5,823,000 (1,000,000) (2,387,000) 9,770,000 FY 2007/08 7,494,000 9,792,000 (1,000,000) (2,398,000) 13,888,000 FY 2008/09 7,654,000 2,292,000 (500,000) (2,387,000) 7,059,000 FY 2009/10 7,807,000 2,100,000 (500,000) (4,316,000) 5,091,000 FY 2010/11 7,963,000 2,100,000 (500,000) (4,310,000) 5,253,000 FY 2011/12 8,122,000 2,100,000 (500,000) (4,317,000) 5,405,000 FY 2012/13 8,285,000 2,100,000 (500,000) (4,315,000) 5,570,000 FY 2013/14 8,450,000 2,100,000 (500,000) (4,315,000) 5,735,000 7/1/2014 - 12/31/2014 ° 4,310,000 1,050,000 (250,000) (2,158,000) 2,952,000 Totals $95,774,000 II. Maximum Expenditures on Age Restricted Projects' $98,431,000 ($9,963,000) ($41,876,000) $142,366,000 8.0% of Net Tax Increment $11,389,000 III. Income Targeting Expenditures' Maximum Expenditures on Moderate Income Households Minimum Expenditures on Low Income Households Minimum Expenditures on Very-Low Income Households IV. Expenditure Projections Actual Expenditures (1/2002 - FY 2003/04) Projected Expenditures (FY 2004/05 - FY 2014/15) Total Expenditures Of Total Expenditures 38.0% of Net Tax Increment $54,099,000 23.0% of Net Tax Increment $32,744,000 39.0% of Net Tax Increment $55,523,000 Age Very-Low Low Moderate Restricted $12,114,000 $8,467,000 $16,905,000 $1,318,000 43,409,000 24,277,000 37,194,000 10,071,000 $55,523,000 $32,744,000 $54,099,000 $11,389,000 39% 23% 38% 8% I Based on Agency estimates. Includes funds and expenditures from January 1, 2001 through the remaining years of the current Implementation Plan plus two 5 year Implementation Plan terms. 2 Net of County Administration expenses, estimated at 1 % of the gross tax increment. 3 Includes land sales, residual receipts revenue, loan repayments, bond proceeds and unused fund balance. 4 Estimated by calculating 50% of the FY 2001/02 actuals. 5 Includes unused fund balances of $4,049,000 in Year 1, $3,843,000 in Year 2, and $4,583,000 in Year 4. 6 Estimated by calculating 50% of the FY 2014/15 budget estimates, which are based on FY 2013/14 budget estimates. 7 Per the 2000 United States Census. 6 Per the Regional Housing Needs Assessment estimates provided in the City's current Housing Element. Prepared by: Keyser Marston Associates, Inc. Filename: Anaheim Implementation Plan 12 02 04; H -8; jlr; 12/2/2004 The Agency plans to expend the remaining estimated Set -Aside funds so that at the end of 2014 it has met its obligation to allocate 39 percent of the Housing Fund project and program expenditures to very-low income households, 23 percent of the funds to low income households and 38 percent of the funds to moderate income households. Thus, the Agency anticipates meeting the income targeting standards imposed by Section 33334.4. Age Restricted Housing Expenditures Section 33334.4 also requires that the Agency assist housing that is available to all persons, regardless of age, in at least the same proportion as the population under age 65 bears to the City's total population as reported in the most recent census of the United States Census Bureau. The 2000 Census indicates that 92 percent of the City's population is under 65 years of age. As such, at least 92 percent of the Agency expenditures on affordable housing projects must be spent to assist projects that do not impose age restrictions on the residents. As also shown in Table H -8, this Implementation Plan anticipates allocating approximately eight percent (8.0 %) of the estimated $142,366,000 in the Housing Fund monies to age- restricted projects, which totals $11,389,000. To date, the Agency has spent $1,318,000 on age- restricted units which is 12% of the maximum allowed. Thus, it is anticipated that the Agency will fulfill the age restricted housing expenditures test imposed by Section 33334.4. 3. Excess Surplus Calculation The Project Area is subject to the "excess surplus" requirements imposed by Section 33334.12. Excess surplus is defined as any unexpended and unencumbered amount in a Project Area's Housing Fund that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the Housing Fund during the project's preceding four fiscal years. Based on the Section 33334.12 requirements, the Agency has three years to encumber any excess surplus funds. As illustrated in Table H -9, the Housing Fund had a $4.58 million beginning balance, and according to the projected revenues and expenditures during fiscal year 2004 -05, the ending balance is expected to be $0. The aggregate amount deposited into the Housing Fund from fiscal year 2001/02 to fiscal year 2004/05 totals $23,892,000. Therefore, the Merged Project Area does not have an excess surplus within the Housing Fund in Fiscal Year 2004/05, nor is one expected during the 10 -year Implementation Plan period. The expenditure plan outlined in the following section is designed to avoid the risk of excess surplus during this Implementation Plan period. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 52 PA0409013.ANA: PA: gbd 10021.007.001/12/03104 O) 2 W J m Q F t1 Q W M a . O Q LL w Lo 0 O o a N W `•' W N � N J W Q = Q Z � Q Z t Q ' LLJ J = CL Q O IL F . y z i Z 2 l N W J ; O a . 0 O N N N m 2 O N U O C N U) c N tp m a U C 0) O Q m c c 0 0 N N E , E �N Y L M c a 2 E cu co a aci d LL 0 cc O o 0 0 0 0 0 0 0 0 0 w 00 0 0 00001 ts� w Des m y o 0 0 0 0 0 0 0 0 0 00 0 0 0 LO0tOO o y M • Lo 0 O t0 l0 cD t0 O M o N 10 r O M N N O ` O N CO O 69 r- V O N d w Cl) v� O 00 o O 0000 0 o 0 O O a w o0 0 0 00000 40 0 ts o C C C 0 0 0 0 0 0 0 0 ttS 000 n M M N t0 CD t tr O M ` O N 00 O V O N d 69 w CY) m E O w 00 0 0 o0 o O 00000 coo0o 0 0 0 0 °) c m a w o 0 0 0 0 0 0 0 0 tr� w 0V) o m c a U �l N O O N O LO O W N c0 Q • N N O O N t0 CD O O O N - 0 m N N o0 O N 7 O M N V 0 t0 C ` O IL 60;1 7 69 m m > m o c n •° O w O O o O 0 0 0 0 0 o O o 0 > E Q O O O O 0 0 0 O O O w O 69 c 0 0 O y �I co O O to O l0 O to U L a N O t0 tD O `- O )O N O M O �- V O m C J � K c 0, ) to m L C O N O 0 0 O O 0 0 0 0 0 O O O O m Z a Y O w O O O O 0 0 0 O O O O O O O O O O O to O 69 O N "O N C 0 0 0 co 0 r Di m CD rn o 0 0 0 o rn 0 o co m • O O W O t0 O O M to N a U N d r O) to W a V lA O M Q C d m 69 a N C V) m y O O O O O O O O O O O O O O O y Q a w O O O O O Oo00 C O O C) C:) O 0 C 000 to O 69 o d m «0f V 0 V O N O to 0 M O to O m C y co t0 O O O a O t0 O O a to m N • O tD t0 c0 O t0 O O M O) ` O N f,9 t0 N N O> N C CL V) C O m m m a O to 1 0 0 0 0 0 0 0 0 O 0 0 0 0 0 O O O C) O 0 0 K 0 0 O to 4) O O O O O O O O O O O O N 7 0 N 0 to O N O a0 t0 y C G y r rnorn0 co ocoC) W) o ma • O 7 0 t0 N O O O M N r O ` O N r O r N N r e» 00 m' o a NN U N C = m O 0 0 0 0 0 0 O O O O O O O O O V a . C tR 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O to O to O . C (� t0 V O cD O r r M O 00 O M O O O r r r L m N • O C M t0 - t0 t0 T O O r 0 tb to r o M r 1) 7 L O N r Cl) M r N N M r Q y IL b9 W EA r N 69 C Q O CD :- N m >, O 0 0 0 0 0 0 O O O O O O I A O O O 7 0 � a to w 100000 000000 00001 00000 w ot» r0 ooao 0 0 c �° C:O W) O0Mao 0 o d� • O r0 c0 (D O N 0 0rnn� O O M U, v <0 m = i N r tri ~ J IL (0 r EA N O N N N EA N N LO C%4 6 C LL 0 W O 0 0 0 0 0 0 O o 0 0 o O O O o U ai L6 O O O O o 0 0 0 0 0 0 0 O H O to U O O O 0 0 0 0 0 0 O O O O O O O j� M O t0 r 0 0 N O w O W t0 M N C O N • O O LLY O O r 0 0 w r t0 .- N O N O t0 O m to O N to M r O tt> W oc m, V) N N O N W (f3 O .-- .- 00 O N N N O a LL a � � O) O) . C m N m o r � � a m u; a 0 N to U rO CO m 3 x iri N m to u) E -_ � a m °- rn 3 w v c •C O V C C H 7 2 N d C 2 > N N d V 10 LL y . N 2 O tU E �m c m (D c n c m y N N m m '3 Q w c a U Z O m 3 Q N �Lm a y 0 7 to N 'O � y - o O N Q o U X C E N > t >, c N ►� (D mm > w <N n E m ' Q U $ w r a •� d o a m m �_ y c (n d c c v m O w c O) w a d U (D d (D u a) >° m c m °) m ,- m u 'x °� Q o 3 N W y N 2 m E "O - 2 0 N v m x 0 0 0 LL m m 0 0 d' LL Q' c D X 0 W LL d m C x N U) c c J J H Q F Z W W W 2 Z Q r N m 0 O N N N m 2 O N U O C N U) c N tp m a U C 0) O Q m c c 0 0 N N E , E �N Y L M c a 2 E cu co a aci d LL E. HOUSING GOALS AND OBJECTIVES OF THE IMPLEMENTATION PLAN The primary goal of the Agency is to comply with the affordable housing requirements imposed by the CRL in a responsible manner. The affordable housing activities identified in this proposed Implementation Plan will be undertaken over the duration of the Redevelopment Plan for the Merged Project Area, and will explicitly assist in accomplishing the intent of the CRL in regards to the provision of low -mod housing. The CRL establishes that certain housing requirements be attained during five and 10 -year increments; and over the remaining Merged Project Area life. Specifically, the inclusionary housing production requirement must be met every 10 years, and over the life of the Merged Project Area life. Comparatively, the proportionality tests must be achieved between January 1, 2002 and December 31, 2014, and then again in 10 -year increments throughout the Merged Project Area life. It is the Agency's goal and objective for this Implementation Plan to accomplish sufficient activity and expenditures to comply with the applicable requirements. 1. Housing Fund Resources and the Housing Program This section of the Housing Component will discuss housing activities planned for the Five -Year Implementation Plan period. Table H -10 estimates the Housing Fund deposits and expenditures anticipated to occur during each year of the five -year period. These expenditures are then tied to estimates of the number of new, rehabilitated, and price restricted units to be assisted by the Agency. Housing Fund Revenues Table H -10 presents the estimated Housing Fund cash flow for the first five years of this Implementation Plan. The estimated deposits are based on a tax increment projection prepared by Agency staff along with other sources of revenues identified by Agency staff. The Set -Aside revenue includes the following: Twenty percent (20 %) of the estimated gross tax increment for the Merged Project Area, net of the 1 % County Administrative costs; 2. Sale of land owned by the Agency; 3. Residual receipt revenue to the Agency; 4. Loan repayments to the Agency; 5. Future bond proceeds; and 6. Cash reserves from previous fiscal years. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 54 PA0409013.ANA:PA:gbd 10021.007.001/12 /03/04 CD x w J m r Z �Q a c e w O Q F Q W z w a: � a W p J W IL of a x Q Q LL Q Q LU J IL Q ZO O y Z V ui Z � w w � J Q a o m9a 0 V O_ m O �O O IL N 0 a o w O O � r d O o d N O + O U � d O O d N O v to w 0 U O d O O d N 0 y G O M m o lei � N � a d+ 0 0 0 0 0 0 0 0 0 O ' to M - M I at e W 0 0 O O O 0 0 C t Ct C 0 O V O N O to 0 V o ( N r rn r (f3 r W O O O O 0� O 0000 0 0 0 0 0 0 0 0 .' O (D O r r M O (D O M in M 0 to (o — r co —I M (f) 0 0 0 0 0 0 O 1:1 0 0 0 0 C o 0 0 0 0 � O W 0 C: > to CO (D O O to r o N EA NfA 00000 0 0 0 0 0 0 0 0 0 0 0 0 O to r O O N (o r N O t (D O Oo (fl w 00000 O 0 0 0 C. 0 0 O O O O O O O O O 0 0 0 0 0 0 O O O O O O W O O 0 0 0 0 0 0 O O O O O O - D �p C M co 0 to W C r (o O N O M 0 N O co O 0 7 0(D N r M O C N y a In Cl) M (D � Cl) Cl) N O In D) m r N C O O M E�9 coo EA co OOp O - m O O O r r O r O M - Ea I- N N M EA 0 V O_ m O �O O IL N 0 a o w O O � r d O o d N O + O U � d O O d N O v to w 0 U O d O O d N 0 y G O M m o lei � N � a d+ 0 0 0 0 0 0 0 0 0 O ' to M - M I at e W 0 0 O O O 0 0 C t Ct C 0 O V O N O to 0 V o ( N r rn r (f3 r W O O O O 0� O 0000 0 0 0 0 0 0 0 0 .' O (D O r r M O (D O M in M 0 to (o — r co —I M (f) 0 0 0 0 0 0 O 1:1 0 0 0 0 C o 0 0 0 0 � O W 0 C: > to CO (D O O to r o N EA NfA 00000 0 0 0 0 0 0 0 0 0 0 0 0 O to r O O N (o r N O t (D O Oo (fl w 00000 0 0 0 0 V11 O O O O O O O O r t0 O O M cn W) O O M C N N Of Of 000 o 0 0 0 00000 w� w O O O O O O co O O t0 000Ornao O O O M N N N r O O O O O O O O O O O O fA O O O O O O O O r r O r O M - O r O M I- N N M EA 0 0 0 0 0 OI O O o 0 0 0 0 0 0 o 0 M11 w O Lo O M O O O M M N N N Efl N 0 0 0 0 O o 0 0 0 0 O 0 w O (D O D) O M o M w ui N ( O N M ffl N 0 0 O � O O O W N H� o o o 60 M 0 r co N O O O EA O r r V r N to O o 00 69, O to N fH O o O to N O W N 60 U m m m N 7 N U v C to m c m u m LL Ta � .4 H c c m m (D rn y O L y m Q 2 O U N jp m U- 7 N N N 0 7 V @ N (U T d i c d d N Q 0. y N H N m a U> .�+ @ n O. E m f0 E (n T m �a m° d v g E m x o } C/) o a c c U m w y E y w Im > o c w m c 1O m E o o c m v V x u U. m wd -i of JmH w< m z w wow N (D p d N C � O O c m m E � m N N C m 2 U O O N m = O C w � � y Q y O Q _ N f0 T r 7 n m w E C O f�0 _ ~ J T C d O w U m vi U O c m m N ° o '(Np N } CD m LL C C N L ' d c m � o 0 0 Q a> �3 -o E rA n C C O O 7 y m m o c - S m a cl m E C 7 xx > N - (u . Q E o = c m c m o o rnt 3 p U U O `O T N c L] U n .N O J a= (U CL E- c 3 d Q O Z d n a o N o c 1) T CL N m m ^ L O d (D "' U rn y U o m m a E t O a N Z3 i z m Q Q O O N R O N U O C (V N c � m . 5 C N O Q m c c O m E C N E N N Y = Co C � Q 2 F co m N N a ii As shown in Table H -10, the following summaries the total projected revenues that will be deposited into the Housing Fund during the Implementation Plan period: b. The Housing Program and Housing Fund Expenditures Based upon the Agency's projected revenues described above, it is anticipated that the Agency will have expenditures that total $89,112,000 over the Implementation Plan period. As shown in Table H -10, the expenditures can be broken down into four (4) categories as described below: administration, bond debt service, and projects and programs. Project Expenditures Program Expenditures Administrative Expenses Bond Debt Service Total Projected Expenditures Implementation Plan Period $63,148,000 9,500,000 4,500,000 11,964,000 $89,112,000 Projects The Agency over the next five years will continue to implement projects, which will provide affordable housing opportunities within the City of Anaheim. The following summarizes how the Agency will assist projects during the next five years: 1. The Agency will continue to focus on producing deed - restricted housing units in order to increase the permanent stock of affordable housing. Such units can be produced through new construction, substantial rehabilitation, or, in the case of multi - family rental housing, acquisition and deed - restriction. 2. The Agency can make loans and grants from the Low and Moderate Income Housing Fund to non - profit or for - profit developers for the new construction or Anaheim Redevelopment Agency- Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 56 PA0409013.A NA: PA:gbd 10021.007.001/12 /03/04 Implementation Pl P Beginning Balance $4,583,000 Property Tax Increment 36,359,000 Sale of Land 40,105,000 Residual Receipt Revenue 928,000 Loan Repayment 3,600,000 Bond Proceeds 3,537,000 Total Projected Revenues $89,112,000 b. The Housing Program and Housing Fund Expenditures Based upon the Agency's projected revenues described above, it is anticipated that the Agency will have expenditures that total $89,112,000 over the Implementation Plan period. As shown in Table H -10, the expenditures can be broken down into four (4) categories as described below: administration, bond debt service, and projects and programs. Project Expenditures Program Expenditures Administrative Expenses Bond Debt Service Total Projected Expenditures Implementation Plan Period $63,148,000 9,500,000 4,500,000 11,964,000 $89,112,000 Projects The Agency over the next five years will continue to implement projects, which will provide affordable housing opportunities within the City of Anaheim. The following summarizes how the Agency will assist projects during the next five years: 1. The Agency will continue to focus on producing deed - restricted housing units in order to increase the permanent stock of affordable housing. Such units can be produced through new construction, substantial rehabilitation, or, in the case of multi - family rental housing, acquisition and deed - restriction. 2. The Agency can make loans and grants from the Low and Moderate Income Housing Fund to non - profit or for - profit developers for the new construction or Anaheim Redevelopment Agency- Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 56 PA0409013.A NA: PA:gbd 10021.007.001/12 /03/04 rehabilitation of affordable housing. Loans can be made on a deferred payment and /or below market interest rate basis. 3. The Agency can also participate by assisting in the acquisition of land, land cost write -down, developer recruitment, credit enhancement, or in other ways to make development of affordable housing feasible. This is usually done after identification of a housing site, development of a housing concept, and issuance of a Request for Proposals for development of the project. Such affordable housing can be rental or ownership housing. In order for such units to count as inclusionary units in fulfillment of a project area's inclusionary obligation, they must be deed - restricted to be affordable to the applicable income level for a term no shorter than 45 years for ownership housing, and 55 years for rental housing. The Agency will primarily assist private developers in the development of housing within the Merged Project Area, and restricting these housing units for very low -, low and moderate income households. The following summarizes the Agency involvement in housing development: The Agency will assist private developers in the development of over 1,000 units over the next 10 years. 2. The Agency will also be in the process of acquiring property over the next five years for future housing sites. Sites proposed to be acquired for future housing include Orange County Transportation Authority and CalTrans remnant parcels, properties along Lincoln Avenue in west Anaheim, and certain parcels along Anaheim Boulevard. 3. Also, although only a small portion of the 10 -year expenditures, the Agency has allocated funds over the next five years for public improvements to facilitate the development of affordable housing within the Merged Project Area. Programs The following summarizes the programs that the Agency plans to implement: Mortgage Assistance Second Mortgage Assistance Program (SMAP) /EPAL Homebuyer Assistance Program - Provides a loan pool for down payment assistance to moderate income (80% to 120% of area median income) single- and multi - family home buyers. The SMAP program offers deferred payment Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 57 PA0409013.ANA: PA:gbd 10021.007.001/12 /03/04 second mortgage loans, which bridge the gap between the first mortgage a buyer can qualify for and the purchase price of the home. The loans are available for 15 percent of the purchase price of the home, not -to- exceed $35,000. The SMAP loan is secured by a deed of trust and promissory note and accrues simple interest at five percent per annum. The SMAP down payment assistance loan is deferred for up to 30 years and due earlier when any one of the following occur: at the time the property is resold; when the house is no longer owner - occupied; when refinancing for more than the first mortgage balance; prepayment of the loan; or transfer of ownership. EPAL Homebuyer Assistance Program — While similar to the SMAP, the EPAL Homebuyer Assistance Program requires affordability covenants of 45 years. 2. Historic Preservation The Agency may preserve historic homes that are deteriorated or are in danger of demolition as part of its Historic Preservation Program. The Agency may purchase the home, rehabilitate the structure and then offer it for resale. As mentioned above, the Agency will enter into an agreement with the buyer to insure that the historic integrity of the house is maintained. Rental Assistance Program The Agency may offer rent subsides to qualified households to obtain and retain decent, safe and sanitary affordable housing as part of its Rental Assistance Program. The intent is to reach both owner - occupant and renter households throughout the City in order to stabilize transitional neighborhoods through improvement of existing residential structures and preservation of existing stock, which is usually more affordable to low and moderate income households. 4. Neighborhood Improvement Plan The Agency will leverage its Housing Funds to implement its Neighborhood Improvement Plan and eliminate blighting conditions in targeted neighborhoods by increasing on -site management, relocating tenants from overcrowded apartment units, rehabilitation of housing units, and infrastructure improvements. The Agency will also offer rehabilitation loans to homeowners for improvements, including plumbing and electrical Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 5s PA0409013.ANA: PA:gbd 10021.007.001/12/03104 repairs, roof repair /replacement, floor coverings and correction of health and safety code violations. Administration Administration includes costs for professional services and other administrative costs incurred in the course of operating the Housing division of the Agency. This category is used for general administration costs not associated with any specific project or program in particular, such as annual audits and legal services. Project- specific administrative costs are included within the budget of each project or program. Amounts allocated to this category in the expenditure plan are based on average spending over the past plan period, with a slight increase to allow for inflation in this next five -year period. Bond Debt Service The Agency will continue to make principal and interest payments on the 2000 Tax Allocation Revenue Bonds, Series A and B Bonds. The annual debt service is secured by Housing Fund revenues generated from tax increment. Revenue and Cost Reconciliation The project and program related costs are estimated at $72,648,000, the administrative costs are projected at $4,500,000 and the debt service costs are estimated at $11,964,000. This brings the total expenditures to $89,112,000. Table H -10 provides an illustrative example of how the Housing Program could be financed on an annual basis over the Five -Year Implementation Plan term. Based on this projection, at the end of the 5 -year Plan period the Housing Fund will have a balance of zero dollars at the beginning of fiscal year 2009 -10. However, the timing and specific amounts of these expenditures may be adjusted over time. Therefore, specific decisions on each of these items will be made as part of the Agency's annual budget process. 2. Summary of Planned Housing Activity Given the successful implementation of the proposed housing program, the Agency will have accomplished the following by December 31, 2014: The Agency will have met the inclusionary housing production obligation for the life of the Merged Project Area. The Agency will have replaced the 21 units that had previously been removed from the Merged Project Area's housing inventory. Anaheim Redevelopment Agency - Implementation Plan Keyser Marston Associates, Inc. for the Anaheim Merged Redevelopment Project Area 2005 to 2009 Page 59 PA0409013.ANA: PA: gbd 10021.007.001/12 103/04 The Agency will have spent the estimated Housing Funds as follows: Estimated Housing Fund Expenditures F Very-low Income Units Low Income Units Moderate Income Units Total Expenditures Non -Age Restricted Units Age Restricted Units Total Ex penditures 32,744,000 55,523,000 142,366,000 $130,977,000 11,389,000 CONCLUSION The preceding plan fulfills the CRL Section 33490 requirements for the preparation and execution of the required Implementation Plan elements. The Agency will meet its Implementation Plan goals for blight elimination through the implementation of various projects and programs. The Agency, over the next five years, intends to implement affordable housing projects and programs that will commit its housing fund monies in compliance with the low /mod housing requirements. It should be noted that the budget used in this Implementation Plan is an estimate, therefore, the Agency is not committed to expending the exact amounts referred to if the Set -Aside funds do not reach the levels estimated in this Implementation Plan. The Agency will meet its affordable housing responsibilities by: • Meeting its inclusionary housing production obligations for the life of the Project Area; • Providing the requisite number of replacement housing units to fulfill the Agency's outstanding obligations; • Fulfilling the age restriction and income distribution tests imposed between January 1, 2002 and December 31, 2014; and • Eliminating any excess surplus balance in the Housing Fund. The Agency currently has a beginning balance in the Housing Fund for FY 2004 -05 of $4,583,000. Based on the proposed expenditures, this beginning balance will be eliminated by the beginning of FY 2005 -06. Anaheim Redevelopment Agency - Implementation Plan for the Anaheim Merged Redevelopment Project Area Keyser Marston Associates, Inc. 2005 to 2009 Page 60 PA0409013.ANA: PA:gbd 10021.007.001/12/03/04