ARA2004-03RESOLUTION NO. ARA 200/4- 3
RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
ACCEPTING THE PRELIMINARY REPORT FOR THE PROPOSED
REDEVELOPMENT PLAN AMENDMENTS TO MERGE THE ALPHA,
RIVER VALLEY, PLAZA, COMMERCIAL/INDUSTRIAL, WEST
ANAHEIM AND STADIUM REDEVELOPMENT PROJECTS AND
AUTHORIZING TRANSMITTAL OF SAID REPORT
WHEREAS, the Anaheim Redevelopment Agency ("Agency") is a community
redevelopment agency organized and existing under the California Community Redevelopment
Law, Health and Safety Code Section 33000, et. seq., ("CRL") 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, on July 19, 1973, by Ordinance No. 3190, the City Council approved and
adopted a redevelopment plan for the Alpha Redevelopment Project and subsequently amended
the redevelopment plan seven times to delete territory from the project area, modify land uses,
and establish fiscal and time limits in compliance with Assembly Bill 1290 ("AB 1290"), Senate
Bill 1045 ("SB 1045"), Senate Bill 211 ("SB 211"), and other provisions of the CRL ("Alpha
Project"); and
WHEREAS, on November 29, 1983, by Ordinance No. 4463, the City Council adopted a
redevelopment plan for the River Valley Redevelopment Project and subsequently amended the
redevelopment plan five times to modify land uses and establish time limits in compliance with
AB 1290, SB 1045, SB 211 and other provisions of the CRL ("River Valley Project"); and
WHEREAS, on June 12, 1990, by Ordinance No. 5136, the City Council adopted a
redevelopment plan for the Plaza Redevelopment Project and subsequently amended the
redevelopment plan twice to establish time limits in compliance with AB 1290, SB 1045 and
other provisions of the CRL ("Plaza Project"); and
WHEREAS, on December 7, 1993, by Ordinance No. 5412, the City Council adopted a
redevelopment plan for the Brookhurst Commercial Corridor Redevelopment Project and
subsequently amended the redevelopment plan three times to add territory to the project area,
rename the project area to the West Anaheim Commercial Corridors Redevelopment Project, and
establish time limits in compliance with AB 1290, SB 1045 and other provisions of the CRL
("West Anaheim Project"); and
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WHEREAS, on December 21, 1993, by Ordinance No. 5415, the City Council adopted a
redevelopment plan for the Commercial/Industrial Redevelopment Project and subsequently
amended the redevelopment plan twice to establish time limits in compliance with AB 1290, SB
1045 and other provisions of the CRL ("Commercial/Industrial Project"); and
WHEREAS, on August 9, 1994, by Ordinance No. 5442, the City Council adopted a
redevelopment plan for the Stadium Redevelopment Project ("Stadium Project"); and
WHEREAS, the "Existing Plans" consist of the Redevelopment Plans, as amended,
prepared for the Alpha Project, River Valley Project, Plaza Project, Commercial/Industrial
Project, West Anaheim Project, and the Stadium Project and the territory included within the
Existing Plans is referred to as the "Project Areas"; and
and
WHEREAS, the Agency is vested with the responsibility to carry out the Existing Plans;
WHEREAS, the Agency desires to amend each of the Existing Plans (collectively,
"Amendments") to merge the Project Areas in order to combine the tax increment revenues from
the Project Areas and reallocate the revenues to and among the entire merged Project Area that
will best facilitate the revitalization of blighted areas through economic vitality and increase and
improve housing opportunities; and
WHEREAS, the Agency also desires to amend the land use provisions of the
Redevelopment Plan for the Alpha Project in order to be consistent with the City of Anaheim's
General Plan, as the General Plan may be amended from time to time; and
WHEREAS, pursuant to Sections 33486, 33457.1, 33344.5 and 33354.6 of the CRL, the
Agency has prepared a preliminary report for transmittal to the affected taxing agencies
("Preliminary Report") on the proposed Amendments; and
WHEREAS, the CRL requires the Agency to consult with affected taxing entities about
the proposed Amendments.
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NOW, THEREFORE, THE ANAHEIM REDEVELOPMENT AGENCY DOES
HEREBY, FIND AND RESOLVE AS FOLLOWS:
Section 1. The Preliminary Report for the proposed Amendments, in the form currently
on file with the Agency Secretary, is hereby approved.
Section 2. The Executive Director is hereby authorized and directed to transmit a copy
of the Preliminary Report for the proposed Amendments to all affected taxing entities.
THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE
ANAHEIM REDEVELOPMENT AGENCY THIS 30th ( ) DAY OF
March 2004.
CHAIRI~AN OF X~ A~AHEIM
REDEVELOPMENT AGENCY
ATTEST:
SHERYLL SCHROEDER
Agency Secretary
APPROVED AS TO FORM'
JACKL.:wH~q~E,___._ x CITY ATTORNEY
'75~q E. 'v~)O'D'lt~D IV,
Assistant City Attorney
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, Secretary of the Anaheim Redevelopment Agency, do hereby certify
that the foregoing Resolution No. ARA2004-3 was passed and adopted at a regular meeting of
the Anaheim Redevelopment Agency held on the 30th day of March 2004, by the following vote of
the members thereof:
AYES:
CHAIRMAN/AGENCY: Tait, Pringle, Hernandez, McCracken
NOES:
CHAIRMAN/AGENCY: None
TEMP ABSENT:
CHAIRMAN/AGENCY: None
ABSTAINED:
CHAIRMAN/AGENCY: Chavez
REDEVELOPMENT AGENCY
(SEAL)
PRELIMINARY REPORT
for the
MERGER OF THE
ANAHEIM REDEVELOPMENT PROJECTS
Prepared for:
ANAHEIM REDEVELOPMENT AGENCY
MARCH 2O04
Prepared by:
Keyser Marston Associates, Inc.
500 South Grand Avenue, Suite 1480
Los Angeles, California 90017
1660 Hotel Circle North, Suite 716
San Diego, California 92108
Golden Gateway Commons
55 Pacific Avenue Mall
San Francisco, California 94111
TABLE OF CONTENTS
A.
B.
1.
2.
3.
4.
5.
6.
C.
D.
A.
1.
2.
3.
4.
5.
IV.
I. INTRODUCTION ............................................................................................................. 1
PRELIMINARY REPORT PURPOSE AND CONTENTS .............................................. 1
BACKGROUND ........................................................................................................... 2
Redevelopment Project Alpha (Proposed Eighth Amendment) ....................................2
River Valley Redevelopment Project (Proposed Sixth Amendment) ............................. 4
Commercial/Industrial (Proposed Third Amendment) ................................................... 5
Plaza Redevelopment Project (Third Amendment) ....................................................... 5
West Anaheim Commercial Corridors Redevelopment Project (Fourth Amendment)... 6
Anaheim Stadium Redevelopment Project (First Amendment) ..................................... 6
GOALS AND OBJECTIVES ......................................................................................... 7
AGENCY ACCOMPLISHMENTS ................................................................................. 8
II. REASONS FOR AMENDING THE REDEVELOPMENT PLANS .................................. 12
A. MERGER AMENDMENT ........................................................................................... 12
B. LAND USE AMENDMENT TO THE ALPHA REDEVELOPMENT PLAN .................... 12
III. PROPOSED PROJECTS AND PROGRAMS ................................................................. 14
REDEVELOPMENT PROGRAMS ............................................................................. 15
Commercial Upgrade and Expansion Program .......................................................... 15
Industrial Upgrade and Expansion Program ............................................................... f5
Public Facility Improvements Program ....................................................................... f 5
Infrastructure Improvements Program ........................................................................
Affordable Housing Program ...................................................................................... 16
PRELIMINARY ASSESSMENT OF PROPOSED METHOD OF FINANCING,
ECONOMIC FEASIBILITY, AND REASONS FOR INCLUDING DIVISION OF
TAXES PURSUANT TO SECTION 33670 .................................................................... 18
A. ESTIMATED TOTAL PROJECT COSTS ................................................................... 18
B. FINANCING METHODS AVAILABLE TO THE AGENCY ........................................... 20
C. PROPOSED FINANCING METHOD, ECONOMIC FEASIBILITY, AND
REASONS FOR INCLUDING TAX INCREMENT FINANCING .................................. 22
Figure
1. Anaheim Redevelopment Project Areas ............................................................................... 3
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I. INTRODUCTION
A. PRELIMINARY REPORT PURPOSE AND CONTENTS
This Preliminary Report ("Report") for the proposed adoption of the merger amendments
("Amendments" or "Merger") to the existing Redevelopment Plans ("Redevelopment
Plans" or "Plans") for the Redevelopment Project Alpha, River Valley Redevelopment
Project, Commercial/Industrial Redevelopment Project, Plaza Redevelopment Project,
West Anaheim Commercial Corridors Redevelopment Project, and the Anaheim Stadium
Redevelopment Project ("Project Areas", "Projects" or "Merged Project Area") has been
prepared by the Anaheim Redevelopment Agency ("Agency") to fulfill the requirements
of Sections 33486, 33457.1, 33354.6 and 33344.5 of the Community Redevelopment
Law (Health and Safety Code Section 33000 et seq., the "CRL"). As discussed in the
following section, the purpose of the proposed Amendments is to combine tax increment
revenues from the Project Areas and allocate the revenues throughout the entire Merged
Project Area. The Merger will also facilitate the revitalization of blighted areas through
increased economic vitality, increase and improve housing opportunities, and streamline
administrative activities related to reporting requirements. In addition, by amendment of
the Redevelopment Plan for the Redevelopment Project Alpha, the text of the Alpha
Redevelopment Plan is being revised to ensure that the land use provisions of the Alpha
Redevelopment Plan are, and continue to be, consistent with the City's General Plan, as
it exists and as it may be amended from time to time.
Section 33354.6(a) of the CRL requires that when an agency proposes to amend a
redevelopment project that utilizes tax increment to add territory to a project area; to
increase either the limitation on the number of dollars (tax increment limit) to be
allocated to the redevelopment agency or the time limit on establishing loans, advances,
and indebtedness (debt establishment); to lengthen the period during which the Plan is
effective (plan effectiveness); to merge projects, or to add significant additional capital
improvement projects; an agency shall follow the same procedures it would for the
adoption of a plan.
Section 33486 of the CRL provides a merger may proceed by amendment of each
redevelopment plan as provided in Article 12 (commencing with CRL Section 33450).
Section 33457.1 of the CRL provides that" [t]o the extent warranted by a proposed
amendment to a redevelopment plan, (1) the ordinance adopting an amendment to the
redevelopment plan shall contain the findings required by Section 33367..." Therefore,
because the Agency is proposing to merge projects, which is a technical amendment,
the Agency will follow applicable provisions, to the extent warranted, of CRL Sections
33320.1, et seq. and 33450, et seq. Pursuant to Section 33457.1 of the CRL, the
Merger of the Projects does not and will not require re-establishing blight or
demonstrating that significant blight remains within the Project Areas.
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The amendment to the Alpha Redevelopment Plan to ensure consistency with the
General Plan is also a technical amendment, and therefore does not require that the
Agency make blight or financial feasibility findings. Furthermore, the Agency when
changing land uses or merging project areas does not require certain documents and
actions required when adopting a redevelopment plan, such as the preparation and
adoption of a preliminary plan (CRL Section 33322) establishing project area
boundaries.
As part of the process of amending the Plans, the CRL requires that specific information
be provided to taxing agencies and officials ("affected taxing entities") prior to adoption
of the proposed Amendments. Such information includes, the Preliminary Report
required by Section 33344.5, with discussion and sections included to the extent
warranted by Section 33457.1. This Preliminary Report includes: 1) the reasons for
amending the Redevelopment Plans to merge the Project Areas and amend the land
use provisions in the Alpha Redevelopment Plan; 2) a description of the on-going
projects and programs proposed by the Agency for the Merged Project Area; and 3) a
preliminary assessment of the method of financing the redevelopment of the Merged
Project Area, including an assessment of the continued economic feasibility of the
Projects after merging the Project Areas.
B. BACKGROUND
The Agency is in charge of implementing redevelopment within the City of Anaheim. As
previously stated, the Agency is proposing to merge all six (6) of the City's
redevelopment project areas (Redevelopment Project Alpha, River Valley
Redevelopment Project, Commercial/Industrial Redevelopment Project, Plaza
Redevelopment Project, West Anaheim Commercial Corridors Redevelopment Project,
and the Anaheim Stadium Redevelopment Project) into one Merged Project Area. In
total, the Merged Project Area will contain approximately 4,967 acres, which comprises
approximately 16 percent of the total acres located in the City. Figure 1 shows the
boundaries of the Project Areas, which are located primarily in the western and central
portions of the City. The following is an overview of the Redevelopment Projects:
1. Redevelopment Project Alpha (Proposed Eighth Amendment)
The Redevelopment Project Alpha was adopted by the City Council on July 19, 1973 by
Ordinance No. 3190. The project area is 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 northwest of Downtown is
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Costa Mesa
Fwy
Beach Blvd.
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
project area are designated general commercial, general industrial and residential and
by this Amendment are proposed to track and conform with the City's General Plan. The
Alpha Redevelopment Plan has been amended seven times. The City Council adopted
the first amendment to the Alpha Redevelopment Plan on July 20, 1976 by Ordinance
No. 3567, to delete portions of the industrial area from the project area boundaries. The
second amendment to the Alpha Redevelopment Plan was adopted on November 30,
1976 by Ordinance No. 3631, which modified land uses within the Downtown area. The
third amendment to the Alpha Redevelopment Plan adopted on January 2, 1982 by
Ordinance No. 4300, further modified specific land uses within the Downtown area. The
fourth amendment adopted by the City Council on December 16, 1986 by Ordinance No.
4786, made modifications to the Alpha Redevelopment Plan as required by the
Legislature which established certain fiscal and time limitations. The fifth amendment
was adopted by the City Council on December 13, 1994 by Ordinance No. 5468,
establishing certain time limits in compliance with Assembly Bill 1290 ("AB 1290"). The
sixth amendment was adopted by the City Council on December 16, 2003 by Ordinance
No. 5895, and extended the time limit of the Alpha Redevelopment Plan effectiveness,
payment of incurred indebtedness, and receipt of tax increment by one year in
accordance with Senate Bill 1045 ("SB 1045"). The seventh amendment adopted by the
City Council on January 27, 2004 by Ordinance No. 5899, deleted the time limit to incur
debt in the Alpha Redevelopment Plan pursuant to Senate Bill 211 ("SB 211"). The
proposed Merger and technical language amendment regarding General Plan
consistency will be the eighth amendment to the Alpha Redevelopment Plan.
2. River Valley Redevelopment Project (Proposed Sixth Amendment)
The River Valley Redevelopment Project was adopted by the City Council on November
29, 1983 by Ordinance No. 4463. The project area is 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
project area are designated general commercial, general industrial, and open space.
The River Valley Redevelopment Plan has been amended five times. The City Council
adopted the first amendment to the River Valley Redevelopment Plan on February 6,
1990 by Ordinance No. 5091, to modify land uses. The second amendment adopted on
December 13, 1994 by Ordinance No. 5467, established certain time limits in
compliance with AB 1290. The third amendment, adopted by the City Council on
December 19, 2000 by Ordinance No. 5751, modified land uses to track and be
consistent with the City's General Plan. The fourth amendment was adopted by the City
Council on December 16, 2003 by Ordinance No. 5895, and extended the time limit of
the River Valley Redevelopment Plan effectiveness, payment of incurred indebtedness,
and receipt of tax increment by one year in accordance with SB 1045. The fifth
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amendment adopted by the City Council on January 27, 2004 by Ordinance No. 5899,
deleted the time limit to incur debt in the River Valley Redevelopment Plan pursuant to
SB 211. The proposed Merger will be the sixth amendment to the River Valley
Redevelopment Plan.
3. Commercial/Industrial (Proposed Third Amendment)
The Commercial/Industrial Redevelopment Project was approved and adopted by the
City Council on December 21, 1993 by Ordinance No. 5415. The project area consists
of 882 acres and is 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 is 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 includes 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 project area include residential, general
commercial, commercial professional, general industrial, and business office/service/
industrial. Subsequent to the adoption of the Commercial/Industrial Redevelopment
Plan, the City Council adopted the first amendment to the Commercial/Industrial
Redevelopment Plan on December 13, 1994 by Ordinance No. 5464, which established
certain time limits in compliance with AB 1290. The second amendment adopted by the
City Council on December 16, 2003 by Ordinance No. 5895, extended the time limit of
the Commercial/Industrial Redevelopment Plan effectiveness, payment of incurred
indebtedness, and receipt of tax increment by one year in accordance with SB 1045.
The proposed Merger will be the third amendment to the Commercial/Industrial
Redevelopment Plan.
4. Plaza Redevelopment Project (Third Amendment)
The Plaza Redevelopment Project was approved and adopted by the City Council on
June 12, 1990 by Ordinance No. 5136. The Project Area is comprised of 350 acres
located near the central portion of the City and is bisected by Interstate 5. Primary uses
in the area include commercial, retail, office, and industrial land uses. The Plaza
Redevelopment Plan has been amended twice on December 13, 1994 by Ordinance No.
5465, which established certain time limits in compliance with AB 1290, and on
December 16, 2003 by Ordinance No. 5895, which extended the time limit of the Plaza
Redevelopment Plan effectiveness, payment of incurred indebtedness, and receipt of tax
increment by one year in accordance with SB 1045. The proposed Merger will be the
third amendment to the Plaza Redevelopment Plan.
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o
West Anaheim Commercial Corridors Redevelopment Project (Fourth
Amendment)
The West Anaheim Commercial Corridor Redevelopment Project includes 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 include 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
amended area was renamed the West Anaheim Commercial Corridors. General Plan
land uses along Brookhurst include 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 includes residential,
general commercial, commercial professional, general industrial and public. The West
Anaheim Commercial Corridors Project was amended by the City Council on December
13, 1994 by Ordinance No. 5466, to establish certain time limits in compliance with AB
1290, and again in 1998 to add the West Anaheim Commercial Corridors to the
Brookhurst Avenue Project Area. The third amendment adopted by the City Council on
December 16, 2003 by Ordinance No. 5895, extended the time limit of the West
Anaheim Commercial Corridors Redevelopment Plan effectiveness, payment of incurred
indebtedness, and receipt of tax increment by one year in accordance with SB 1045.
The proposed Merger will be the fourth amendment to the West Anaheim Commercial
Corridors Redevelopment Plan.
6. Anaheim Stadium Redevelopment Project (First Amendment)
The Anaheim Stadium Project Area contains 159 acres of land including Anaheim
Stadium facility and surrounding parking areas owned by the City of Anaheim. 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. The proposed Merger will be the first amendment to the
Anaheim Stadium Redevelopment Plan.
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C. GOALS AND OBJECTIVES
The Agency's Second Five-Year (1999-2004)AB 1290 Implementation Plan ("Five-Year
Implementation Plan") outlines various redevelopment plan goals and objectives for
each of the Project Areas. In general, the goals and objectives for the Merged Project
Area includes, but are not limited to:
Eliminate blighting conditions through abatement, compliance, or elimination of
incompatible uses and inadequate lot sizes through reconstruction and assembly
of parcels into more developable sites for more compatible uses.
Provide opportunities for participation by owners and tenants in the revitalization
of their properties.
Rehabilitation or removal of substandard and deteriorating buildings.
Consolidate parcels suitable for modern integrated development.
The revitalization of the City's Downtown area and the utilization of
underdeveloped properties in the attraction of commerce and jobs to the City.
An improved system of vehicle and pedestrian traffic.
Construction of public improvements and infrastructure required to permit
development to proceed.
The elimination of certain public improvements, facilities and 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.
Replan, redesign and encourage development of underutilized areas.
The establishment of 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.
Provide for increased sales, business license, hotel occupancy and other fees,
taxes and revenues to the City.
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The expansion of the community's supply of housing, including opportunities for
very Iow-, Iow, and moderate income households.
Rehabilitate and develop Iow and moderate income housing.
The provision of walls and landscaping to create a buffer between commercial/
industrial properties and residential areas.
The reduction in crime and graffiti through coordination of efforts with property
owners, residents, businesses, the Anaheim Police Department, and the
Anaheim Code Enforcement Division.
The elimination of drug, prostitution and other criminal activities and uses.
The provision of additional parks or improve existing parks and open space and
ensure they are clean, safe, and desirable places for use by the community.
The provision for tax increment to provide funds 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.
D. AGENCY ACCOMPLISHMENTS
The Agency has been actively involved in community redevelopment since the adoption
of 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 over hundreds of millions of public dollars to facilitate commercial,
residential and public infrastructure projects, which has resulted in excess of billions in
private development in the Project Areas. The following is a summary of the Agency's
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
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· Caused rehabilitation and/or development of 824 affordable housing units.
The most recent notable accomplishments are the following completed and/or ongoing
projects:
RESIDENTIAL DEVELOPMENT
· Tyrol Plaza - 60-unit affordable senior project under construction
· Historic Broadway Homes - Restoration of three single-family homes
underway
· Linbrook- Completed 81-unit senior affordable housin9 project
· Solara Court- Completed 132-unit senior affordable housing project
· Casa Alegre- Completed 23-unit affordable special needs housing project
· Brookfield Homes - 32 single-family attached and 50 detached units under
construction
· Cherry Orchard - Entitled 84-unit affordable senior motel conversion
housing project
· Presidential Tract- Acquisition underway of property for an affordable for-
sale 34-unit condominium project
· John Laing Homes - 36 affordable attached and 20 single-family for-sale
units under construction
· Vine Street- Entered into negotiation agreement for a 60-unit affordable
multi-family rental housing project
· Kwikset- Entered into development agreement for 138 single-family and
211 multi-family housing units with demolition underway
COMMERCIAL DEVELOPMENT
· Lincoln & East - Completed restoration of two historic buildings for
commercial reuse
· Filling Station - Competed reuse of 5,000 square foot restaurant
· BOVA Contracting Company- New construction of 12,000 square foot
building
· Bassani Manufacturing - New construction of 14,000 square foot building
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· Harris Freeman - New construction of 15,000 square foot building
· Westgate - 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
· 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
· Auto Dealer- Completed concept plans for relocation and expansion of an
existing auto dealer
MIXED-USE DEVELOPMENT
· ClM Project- Started construction on first phase of 472 market-rate high
density rental apartments and 120 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 60-unit for-sale loft residential mixed-use project
OTHER/PUBLIC IMPROVEMENTS
· Canyon Identification Signs - Completed installation of identification signs
· Lincoln Avenue- Phase II widening completed
Freeway Landscaping Improvements - Completed SR91 and SR57
Freeway overlay planting in conjunction with CalTrans
Utility Undergrounding - Construction underway of utility undergrounding
at Lincoln Avenue and Rose Street
Friendship Plaza- Completed perimeter stonework, signage, and
installation of two walkway pergolas
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Philadelphia Street Public Parking Lot - Completed construction
drawings
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 drainage
Lemon/Water Phase II - Completed utility, street and alley improvements
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
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II. REASONS FOR AMENDING THE REDEVELOPMENT PLANS
The Agency is proposing to amend the Redevelopment Plans to 1) merge the existing Project
Areas, and 2) to insure the land use provisions within the Alpha Redevelopment Plan track and
are consistent with the City's General Plan.
A. MERGER AMENDMENT
Section 33485 et seq. of the CRL allows for merger of redevelopment project areas as a
matter of public policy if they will result in substantial benefit to the public, and if they
contribute to the revitalization of the Project Areas through the increased economic
vitality of such areas and through increased and improved housing opportunities in or
near such areas. The CRL also provides that redevelopment project areas, under the
jurisdiction of a redevelopment agency, may be merged without regard to contiguity of
the areas, by the amendment of each affected redevelopment plan. Furthermore, with
certain exceptions, taxes attributable to each project area merged that are allocated to
the redevelopment agency may be allocated to the entire merged project area for the
purpose of paying the principal of, and interest on, indebtedness incurred by the
redevelopment agency to finance or refinance, in whole or in part, the merged
redevelopment project.
Proposed Merger of the Project Areas is a technical amendment that will allow the
Agency to combine revenues from the six separate Project Areas. The Merger will also
allow the Agency to prioritize spending of available tax increment revenue in order to
maximize efficiency in the implementation of the Agency's redevelopment program. The
Agency's redevelopment program will continue to be those activities identified in its Five-
Year Implementation Plan (currently 1999-2004). The proposed Merger will have a
substantial benefit to the public by allowing the Agency to combine tax increment
revenues from the Project Areas and reallocate the revenues throughout the entire
Merged Project Area. The Merger will also facilitate the revitalization of blighted areas
through increased economic vitality, increase and improve housing opportunities, and
streamline administrative activities related to reporting requirements. The proposed
Merger will not allow the Agency to collect any additional tax increment beyond the limits
identified in each of the Redevelopment Plans. No increase in any financial limit or
extension of any time limit is proposed as part of the Amendments.
B. LAND USE AMENDMENT TO THE ALPHA REDEVELOPMENT PLAN
As previously discussed, the Alpha Redevelopment Plan was adopted in 1973 and has
since been amended five times to delete territory, modify land uses, and establish
certain fiscal and time limitations. In order to track and maintain the Redevelopment
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Plan's consistency with the City's General Plan, the Agency is proposing to amend the
Alpha Redevelopment Plan by deleting Sections 401 through 408 that identify specific
land uses and by replacing the language with the directive that the Redevelopment Plan
land uses will track and be consistent with those identified in the General Plan as it
exists and as it may be amended from time to time. This change is consistent with
language currently within all Redevelopment Plans.
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III. PROPOSED PROJECTS AND PROGRAMS
In the past, the Agency has implemented separate programs in each of the six redevelopment
Project Areas. The Agency's existing Five-Year Implementation Plan includes all of the six
Project Areas within this single document and outlines the projects and programs for each of the
six Project Areas. With the proposed Merger, the Agency will be able to consolidate the
projects and programs for each of the six Project Areas into one set of projects and programs
for all six Project Areas that will be funded from the combined tax increment from the Merged
Project Area. The Agency is not adding any new projects and programs and the existing Five-
Year Implementation Plan will continue to be the implementation plan for the Merged Project
Area. How and which programs are implemented within the Merged Project Area depends on
the needs and objectives within the Merged Project Area and will be determined by the Agency
and will continue to be identified in each subsequent Five-Year Implementation Plan.
Due to the lengthy timeframe for implementing a redevelopment plan, the redevelopment
program needs to be flexible and provide the capability to respond to changes and private
sector interest in the Project Areas. The strategy to attain the goals and objectives is to use
public investment to attract and stimulate private investment. The Agency uses legal
agreements to form public-private partnerships leading to development of industrial sites,
commercial centers, office buildings, and housing. The following description of projects and
programs is presented for the Merged Project Area. As stated above, the Agency will continue
to address the needs within the Merged Project Area as described in each subsequent Five-
Year Implementation Plan. However, the Agency will approach community redevelopment from
the perspective of how best to achieve the redevelopment objectives from a citywide basis.
Based upon the Agency's current Five-Year Implementation Plan, the proposed redevelopment
program for the Merged Project Area includes five (5) programs, as follows: 1) Commercial
Upgrade and Expansion; 2) Industrial Upgrade and Expansion; 3) Public Facility Improvements;
4) Infrastructure Improvements; and 5) Affordable Housing. Within Section IV of this Report
(financial feasibility analysis), the above listed programs are considered within the cash flow
analysis as discretionary funds since exact future allocation of Agency revenues for each of the
redevelopment programs beyond the current Five-Year Implementation Plan period cannot be
determined. The Agency will allocate the necessary funds for each program as needed over the
remaining life of the Redevelopment Plans.
The programs are designed to address the most significant blighting conditions in the proposed
Merged Project Area and provide additional housing opportunities. The most significant
blighting conditions are reduced, further private sector investment will occur in the proposed
Merged Project Area leading to maximum removal of blight. The Agency's program of
redevelopment will therefore serve as a catalyst to remove blighting conditions and spur the
preservation, improvement, creation and maintenance of affordable housing.
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A. REDEVELOPMENT PROGRAMS
1. Commercial Upgrade and Expansion Program
The Commercial Upgrade and Expansion Program will consist of three primary
components that include site assembly, commercial rehabilitation and complementary
infrastructure improvements. Agency involvement in site assembly may continue to be
necessary for the revitalization of the Merged Project Area to occur. The Agency's
efforts in this program will provide expansion opportunities to existing businesses as well
as encourage the revitalization of the proposed Merged Project Area through new
commercial development. The Agency may continue its commercial rehabilitation
program in the proposed Merged Project Area by assisting businesses through the
provision of loans for minor and major structural rehabilitations. Finally, the Agency
proposes a concurrent program of upgrading existing infrastructure systems to enable
and facilitate development of certain commercial sites.
2. Industrial Upgrade and Expansion Program
The Industrial Upgrade and Expansion Program will consist of four primary components
and include site assembly, tenant assistance, industrial rehabilitation, and
complementary infrastructure improvements. Agency involvement in a site assembly
program may be necessary to provide expansion opportunities to existing industrial
businesses, and encourage new industrial investment in the Merged Project Area. In
order to encourage industrial businesses to remain in the Merged Project Area, the
Agency may implement the establishment of tenant assistance incentives. The Agency
also proposes an Industrial Rehabilitation Program, to address the physical blighting
conditions within the Merged Project Area. This proposed program will assist Merged
Project Area industrial businesses through the provision of loans for minor and major
structural rehabilitations. The Agency proposes a concurrent program of upgrading
existing infrastructure systems to enable and facilitate development of certain industrial
sites. The Agency's involvement in these complementary infrastructure improvements
includes transportation and circulation, storm drain, sewer and water system
improvements.
3. Public Facility Improvements Program
Community-based projects focus on the need for new or improved community facilities
such as parks, community centers, and related facilities. The Agency may participate
financially in providing upgraded or new facilities that are of benefit to the Merged
Project Area. In order to provide adequate public facilities in the proposed Merged
Project Area, the Agency proposes to provide improvements within the Merged Project
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Area. The Agency's involvement in a site assembly program may be necessary to
provide expanded community and recreational facilities. To augment the public and
recreational improvements, the Agency proposes a concurrent program of upgrading
existing infrastructure systems serving these facilities. The Agency's involvement in
these improvements includes transportation and circulation, storm drain, water and
sewer system improvements.
4. Infrastructure Improvements Program
Infrastructure improvements include transportation and circulation improvements, storm
drain improvements, sewer system improvements, water system improvements, and
landscape and streetscape improvements. It is assumed that the major portion of the
funding for these improvements would be paid by, or otherwise provided for by, a
combination of the City, the Agency, developers and other public entities.
5. Affordable Housing Program
As required by State law, not less than 20 percent of the tax increment funds allocated to
the Agency pursuant to CRL Section 33670 must be deposited into the housing fund
("Housing Fund") to be used to assist in increasing, improving, and preserving the City's
supply of Iow and moderate income housing available at affordable housing cost. Most
of the Agency's affordable housing requirements will be met through the development of
the affordable housing within the Merged Project Area. The Agency has adopted
resolutions for all Project Areas to allow expenditures from the Housing Fund to be used
outside of Project Areas' boundaries. Therefore, money could be spent anywhere in the
City depending on the need. The Agency will evaluate projects outside of the Merged
Project Area to determine the overall merits and benefits to the Merged Project Area and
to the Agency and City as a whole. The Agency in its current Five-Year (1999-2004)
Implementation Plan has outlined four (4) primary programs related to affordable
housing: 1) Developer Incentives to Promote Housing Development; 2) Home
Ownership; 3) Rehabilitation - Neighborhood Preservation; and 4) Rental Assistance.
The Developer Incentives to Promote Housing Development Program involves
incentives and concessions the Agency may provide to developers to offset increased
costs associated with an affordable housing programs' requirements. 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 affordable housing "credits", streamline development process, provide
density bonus, bond financing, tax credits, and implementation of the Community
Reinvestment Act in order to provide favorable financing for developers.
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The intent of the Home Ownership Program is to provide affordable homeownership
opportunities to assist Iow and moderate households transition into the homebuying
market through some financial assistance and homebuyer education. The Agency has
established a first-time home buyer assistance program.
The intent of the Neighborhood Preservation Program 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 Iow and moderate income
households. 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 repairs, roof repair/replacement, floor coverings and correction of health and
safety code violations.
The Agency, in conjunction with the Anaheim Housing Authority, will continue to provide
rental assistance to meet the needs of very Iow-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.
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IV.
PRELIMINARY ASSESSMENT OF PROPOSED METHOD OF FINANCING,
ECONOMIC FEASIBILITY, AND REASONS FOR INCLUDING DIVISION OF TAXES
PURSUANT TO SECTION 33670
Sections 33485, et seq. and 33344.5(c) of the CRL provides that the Preliminary Report for the
merger contain a preliminary assessment of the proposed method of financing the Merged
Project Area, including an assessment of economic feasibility, and the reasons for including a
provision for the division of taxes pursuant to Section 33670 of the CRL. Economic feasibility,
for purposes of this analysis, is defined to be a comparative analysis of anticipated costs for
implementation of projects and programs within the Merged Project Area and the resulting
revenues expected to be generated. Economic feasibility is determined through a summarized
feasibility cash flow analysis of the Project Fund for the Merged Project Area as summarized
below. The Merged Project Area funds will allow flexibility in addressing the most pressing
needs and respond to market forces more effectively.
A. ESTIMATED TOTAL PROJECT COSTS
A determination of economic feasibility requires an identification of the future resources to
finance future costs associated with redevelopment of the Merged Project Area and the
elimination of remaining blighting conditions. Redevelopment could require significant
participation from the Agency in activities to promote and achieve the desired goals and
objectives of the Redevelopment Plans.
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. The net present value increment revenues projected for the Merged Project Area
over the term of the feasibility cash flow projection are $479,323,000, of which $95,865,000
would be deposited into the Housing Fund over the same time period. The estimated
costs, expressed in net present value, of potential future redevelopment programs over the
term of the cash flow projection~ are as follows:
Total Estimated Costs
Bond Debt Service
Educational Revenue Augmentation Fund (ERAF)
Pass-Through Obligations
Contractual Obligations
Projects, Programs, Activities
$383,458,000 NPV
(136,893,000) NPV
(19,429,000) NPV
(70,583,000) NPV
(37,811,000) NPV
$118,742,000 NPV
1 The cash flow projections are based upon the analysis prepared by Keyser Marston Associates, Inc.
dated March 11, 2004 on file with the Agency and incorporated herein by reference.
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1. 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.2 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 financial feasibility
analysis no additional future bond issues are assumed in the feasibility projection.
2. ERAF
Chapter 260, Statutes of 2003, (SB 1045) requires redevelopment agencies to shift $135
million in property tax revenues to K-12 schools and community colleges during the
2003-04 fiscal year. The shift of tax increment revenues will be placed into ERAF. SB
1045 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-throucjh 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 2001-02.
The Agency will be required to allocate an I=RAF payment to the County Auditor-
Controller totaling $1,586,000 on or before May 10, 2004. It is uncertain at the present
time as to whether or not future FRAF payments will be required by the State. It is also
not known whether the ERAF amounts will increase in future years. Therefore, for
purposes of the feasibility projection, it is assumed that future I~RAF payments will
continue to be required by the Merged Project Area in subsequent fiscal years and
reflect an assumed two percent annual increase over the current year requirement.
3. Pass-Through Obligations
The Agency entered into a series of pass-through agreements with various affected taxing
agencies as the respective Project Areas were adopted. The merger will not affect 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 ($70,583,000 in net
present value). The merger does not trigger any additional tax sharing obligations to the
affected taxing agencies.
2 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.
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4. 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 County administrative charges, economic development agreements,
cooperative agreements with the City General Fund, and other obligations related to
site-specific projects.
5. Projects, Programs, Activities
The Merged Project Area funds will allow flexibility in addressing the most pressing needs
and respond to market forces more effectively. 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 financial feasibility analysis assumes that the Agency will
exercise its discretion in funding and administering other future projects, programs or
activities of benefit to the Merged Project Area. The anticipated projects, programs or
activities that the Agency may undertake as future resources become available have been
presented in this Report.
B. FINANCING METHODS AVAILABLE TO THE AGENCY
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.
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.
1. Agency's Housing Fund
The feasibility cash flow reflects net present value increment revenues of approximately
$479,323,000 over the term of the cash flow. From this projected amount, $95,865,000
would be deposited into the Agency's Housing Fund, resulting in a cumulative net tax
increment revenue amount of $383,458,000 in net present value. Although other funds
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may be available to the Agency, the feasibility cash flow only reflects net tax increment
revenues and the expenditure line items that are funded from tax increment. The estimated
resources, expressed in net present value, are as follows:
Gross Housing Revenues
Housing Set-Aside:
· Housing Bond Debt Service
· Housing Projects, Programs, Activities
$95,865,000 NPV
(33,097,000) NPV
(62,768,000) NPV
2. Tax Increment Revenues and Housing Set Aside
The combined summary of tax increment revenues were projected for the Merged Project
Area. Reported assessed values for each Project Area provide the basis for the respective
tax increment projections (values as reported by the Orange County Auditor-Controller for
FY 2003-04). Future tax increment revenues are based upon assumed increases in the
annual incremental assessed valuation resulting from a real property annual inflationary
increase allowable under Article XIIIA of the California Constitution.
The net present value increment revenues projected for the Merged Project Area over the
term of the feasibility cash flow projection are $479,323,000, of which $95,865,000 would
be deposited into the Housing Fund over the same time period. Annual Housing Set Aside
is allocated to fund the annual debt service required from the 1997 and 2000 Housing
Bonds, and on-going housing administrative expenditures.
3. Housing Set Aside
The Agency is annually required to set aside and deposit not less than 20 percent of all tax
increment revenues allocated to the Agency pursuant to CRL Section 33670 from the
Merged Project Area into the Iow and moderate income Housing Fund for the purposes of
increasing, improving and preserving the community's supply of Iow and moderate income
housing available at affordable housing cost. Specific housing-related projects, programs
and activities are not delineated in the feasibility cash flow, but assume that as housing set
aside funds become available they are used by the Agency to fund such expenditures.
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C.
PROPOSED FINANCING METHOD, ECONOMIC FEASIBILITY, AND
REASONS FOR INCLUDING TAX INCREMENT FINANCING
The Merged Project Area funds will allow flexibility in addressing the most pressing needs
and respond to market forces more effectively. The anticipated costs to implement a
program of revitalization in the Merged Project Area will require significant participation from
the Agency as it implements activities that promote and achieve the stated goals and
objectives of the Redevelopment Plans as amended. Economic feasibility of the Merged
Project Area has been determined based upon a comparative cash flow analysis of the
anticipated costs for implementation of the proposed redevelopment program to the
resulting projected resources expected to be generated over the life of the Merged Project
Area.
The financial feasibility cash flow previously summarized was created to represent one
scenario of economic feasibility. At the discretion of the Agency, other funding sources
discussed above may also represent viable funding alternatives for economic feasibility of
the Redevelopment Plans as amended. Although the Agency may consider other funding
sources permitted in the Redevelopment Plans as amended, not all of the funding sources
may be available or be feasible for the Agency to use in financing the anticipated costs and
revenue shortfalls. In the event that neither the City nor the private market acting alone
could fully bear the costs associated with revitalization of the Merged Project Area, the
continued implementation of a redevelopment program utilizing tax increment revenues
remains a viable financing tool.
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