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HomeMy WebLinkAboutAgenda - Agenda Packets - Regular Meeting 10/15/2009AGENDA ECONOMIC DEVELOPMENT MANAGER SHARON PAISLEY JOINT REGULAR MEETING OF THE SAN JACINTO CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO October;15, 2449 7:00 p:m: 2045 South San Jacinto Avenue San Jacinto Unified School District Board Room, San Jacinto, CA 92583 ORGANIZATION 1.1 Call to Order 1.2 Roll Call 1.4 1.5 nvocation Pledge of Allegiance Special Presentations 1.5.1 Business Spotlight of the Month / San Jacinto Valley. Academy / Penny Harrison Accepting 1.5.2 Certificate of Appreciation to John Reyes Hurley Gonzales and Miguel De Jesus G. Rangel Jr PUBLIC COMMENTS: Now is the time for the public to address the Council on any subject within the jurisdiction of the City Council not listed on the agenda. A limitation of three (3) minutes shall be set for each person desiring to address the City Council. JOINT CONSENT CALENDARS (SECTIONS 3A AND 3B) The matters listed under Consent Calendars are considered routine and will be enacted by one motion by City Council Members in the form listed. There will be no separate discussion on these items prior, to the motion unless members of the City Council, staff or the public requests a specified item be removed and/or discussed. if an item is pulled, it will be heard at the end of number "5.;Staff Reports.' 3A CONSENT CALENDAR — CITY COUNCIL 3A.1 Waive Reading of all Ordinance introductions and Read by Title Only / Approve / City Clerk 3A.2 Continuation of the Proclamation of the Local State of Emergency due to The Severe High and Damaging winds / Approve the continuation of the proclamation of the Local State of Emergency / City Attorney City Council Agenda October 15, 2009 Paae2of4 3A.3 October 1, 2009 Minutes — Regular Meeting / Approve / City Clerk 3A.4 October 1, 2009 Minutes - Joint City Council and. Planning Commission Meeting / Approve / City Clerk 3A.5 Warrants and Disbursements for September 2009 / Receive and Fife / Interim Finance Director 3A.6 Resolution No. / Resolution Designating Signers with Access to Safe Deposit. Box at Bank of Hemet / Approve and Adopt / Interim Finance Manager 3A.7 Speed Hump Installation on Solana Street and Grassy Meadow Drive / Approve / City Engineer 3A:8 Approval of consultant contract with Inland Foundation Engineering for Sanderson Avenue Widening on -call geotechnical services / Approve / City Engineer 3B CONSENT CALENDAR— REDEVELOPMENT AGENCY 3B,1 RDA report Filings for the Tax Year 2009-2010 — Annual Statements of indebtedness and AB 1389 Report / Receive and File / Interim Finance f Director PUBLIC HEARING STAFF REPORTS- At the end of the scheduled City Department items, anyone wishing to discuss a consent calendar item should come forward upon invitation of the Mayorstate their name, address, and the consent calendar item number pulled. Speakers should limit comments to three (3) minutes, 5.1 Presentation on the H1 N1 Virus by Riverside County Department of Public Health / Presentation / Calendar Dates for City Council and Redevelopment Agency Meetings during November and December /Approve / City Clerk 5.3 RDA / Consideration of approval of proposed Preliminary Report, Draft Owner Participation Rules and Draft Method of. Relocation for the proposed Amended and Restated Redevelopment Plan for the Merged - San Jacinto Redevelopment Project Area / Continued from. October 1, 2009 / Approve / Assistant City Manager City Council Agenda October 15, 2009 Paoe 3 of 4 5.4 Paymentus Service Agreement for Credit Card, Debit Card and Electronic Check Payment Acceptance / Approve / Interim Finance Director MAYOR / COUNCIL MEMBER REPORTS / DISCUSSIONS 6.1 Sub -Committee and/or Agency Agendas / Receive and File 1 City Clerk CLOSED SESSION 7.1 CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Subdivision (a) Section 54956.9) Name of Case: City of San Jacinto v. Acting Pacific Regional Director, Bureau of Indian Affairs (Docket No. IBIA 08-122-A) 7.2 CONFERENCE WITH REAL PROPERTY NEGOTIATOR 1155 South State Street, San Jacinto Negotiation Parties: Tim Hults, Assistant City Manager and/or Barry McClellan, RDA Executive Director (for the RDA), and James Antoyan (for property owner(s)) Under negotiation: Price and terms of payment 7.3 CONFERENCE WITH REAL PROPERTY NEGOTIATOR 1881 S. Santa Fe Avenue, San Jacinto Negotiation Parties: Tim Hults, Assistant City Manager and/or Barry McClellan, RDA Executive Director (for the RDA), and Bruce Maize (for property owner(s)) Under Negotiation: Price and Terms 7.4 CONFERENCE WITH`LEGAL COUNSEL -ANTICIPATED LITIGATION Initiation of litigation pursuant to subdivision (c) of Section 54956.9: (one (1 or more potential cases). ADJOURNMENT If you challenge any action of the City Council in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council (c%o the City Clerk) at, or prior to, the public hearing. CHALLENGE TO LAND USE DECISIONS: Any person seeking to challenge a decision regarding land use made by the City Council as a result of a proceeding in which by law a hearing is required to be given, shall be required to commence that action 90 days following the date on which the decision of the City Council becomes final as provided in Code of Civil Procedure Section 1094.6. Please refer to Code of Civil Procedure Section 1094.6 to determine how to calculate when a decision becomes final. It is the intention of the City of San Jacinto to comply with the Americans with Disabilities Act (ADA) in all respects. " If, as an attendee or a participant at this meeting or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every City Council Agenda October 15;.2009 Page 4 of 4 reasonable manner. Please contact City Hall at (951) 537-6358, et least 48 hours prior to the meeting to . inform us of your particular needs and to determine if accommodation is feasible. DOCUMENTS RELATED TO OPEN SESSION AGENDAS (SB 343) -- Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the public counter located in the Administration Building of City Hall, 595 S San Jacinto Avenue, San Jacinto, California, 92583. I,. *chard Deputy, City Clerkof the City ofSan Jacinto', do here foregoing agenda this 8t4 day of October, 2009, as required 6y Giw., AGENDA ITEM 314‘• October 15, 2009 TO: The Honorable Mayor and Members of the City Council FROM: City Attorney and City Clerk SUBJECT: Waiver of Full Reading of Ordinance(s), and Reading by Title Only RECOMMENDATION: Staff recommends that the City Council, by motion, waive the full reading of any and all ordinances on this meeting's agenda, and authorize their reading by title only. BACKGROUND: Government Code Section 36934 requires that all ordinances shall be read in full either at the time of their introduction or their passage. However, Government Code Section 36934 allows the waiver of this requirement by regular motion adopted by majority vote if the title of the ordinance is read. This waiver can be accomplished at the time of each ordinance action, or as a standing waiver, accomplished as a consent calendar motion. In order to stream -line the process for the passage of ordinances, the City Attorney and staff propose the second option, which is the waiver of any and all ordinances on this agenda. ALTERNATIVES: Approval: Approve the addition of the attached language to all future agendas of the City Council, thus waiving the full reading of all future ordinances. Denial: Do not approve the agenda language and, instead, before the passage of any ordinance and after the reading of its title, make a motion that must be adopted by majority vote that allows a waiver of the full reading. FISCAL IMPACT: None Page 1 of 1 AGENDA ITEM 3A 2- October 15, 2009 TO: The Honorable Mayor and Members of the City Council FROM: City Attorney SUBJECT: Continuance of the Proclamation of the Local State of Emergency due to the Severe High and Damaging Winds RECOMMENDATION: Staff recommends that the City Council, by motion, approve the continuance of the Proclamation of the Local State of Emergency due to the Severe High and Damaging Winds. DISCUSSION: On October 26, 2007, the City Council approved Resolution No. 3117 proclaiming and ratifying the existence of a local emergency, as issued by the Director of Emergency Services/City Manager and resulting from the extreme high and damaging winds that began on or about 12:00 a.m. (midnight) on October 21, 2007. Government Code section 8630 requires the City Council to review, at its regularly scheduled meetings until the local emergency is terminated, the need for continuing the local emergency. ALTERNATIVES: 1) Consent to the continuance of the Proclamation of the Local State of Emergency (Staff Recommendation). 2) Do Not Consent to the continuance. FISCAL IMPACT: The City's ability to obtain or continue to receive federal, state or regional disaster/emergency relief funding may be impacted if the City Council does not Consent to continue the proclamation of the local state of emergency. Substantial budgetary impacts are apparent for recovery efforts to include substantial employee overtime salaries; purchases of materials, supplies and equipment; use of private contractors/force labor; and other repairs to city right-of-way facilities (Preliminary estimates range from thirty five to fifty thousand dollars). Budgetary assistance and reimbursement is available from Federal Emergency Management Agency (F.E.M.A.) for related costs for limited recovery efforts to critical infrastructure including: electrical, power, telecommunications, water supply, public safety, and transportation. ATTACHMENT: • Resolution No. 3117 Page 1 of 1 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO ) RESOLUTION NO. 3117 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO CONFIRMING THE CITY MANAGER/DIRECTOR OF EMERGENCY SERVICES' PROCLAMATION OF EXISTENCE OF A LOCAL EMERGENCY WHEREAS, section 2.36.060(A)(1) of the San Jacinto Municipal Code empowers the Director of Emergency Services/City Manager to proclaim a local emergency if the City Council is not in session and requires that the City Council shall take action to ratify the proclamation within seven days thereafter; and WHEREAS, conditions of extreme peril to the safety of persons and property have arisen within the City of San Jacinto, as a result of due to severely high and damaging winds commencing on or about 12:00 a.m. (midnight) on the 21st day of October, 2007, at which time the City Council of the City of San Jacinto was not in session; and WHEREAS, the City Council does hereby find that the above described conditions of extreme peril did warrant and necessitate the proclamation of the existence of a local emergency in the vicinity of San Jacinto; and WHEREAS, the City Manager acting as the Director of Emergency Services did proclaim the existence of a local emergency within the City on the 22nd day of October, 2007. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Jacinto that the Proclamation of Existence of a Local Emergency, as issued by the Director of Emergency Services/City Manager, is hereby ratified and confirmed. BE IT FURTHER RESOLVED that the local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council of the City of San Jacinto, and that until such time, the City Council shall review, at each of its regularly scheduled meetings until the local emergency is terminated, the need for continuing the local emergency. BE IT FURTHER RESOLVED that City staff is hereby authorized and directed to take any action that may be necessary or convenient to assist in obtaining federal, state or regional disaster/ emergency relief funding. Page 1 of 2 APPROVED, PASSED, and ADOPTED by the City Council of the City of San Jacinto at a special meeting of said Council held on the 26th day of October 2007, by the following vote: Ayes Ayres, Mansperger, Stubblefield Nays None Absent Carlson, Ritchie Abstain None ATTEST: D rothy Cho inard, City Clerk Page 2 of 2 City of San Jacinto APPROVED AS TO FORM: BEST, BEST & KRIEGER LLP Cf&llingery Attorney AGENDA 3A.3 MINUTES REGULAR MEETING OF THE SAN JACINTO CITY COUNCIL AND REDEVELOPMENT AGENCY October 1, 2009, 7:00 p.m. 2045 South San Jacinto Avenue San Jacinto Unified School District Board Room, San Jacinto, CA 92583 1. ORGANIZATION 1.1 CaII to Order Vice Mayor John Mansperger called the regular meeting of the San Jacinto City Council and Redevelopment Agency to order at 7:05 p.m. 1.2 RoII Call Present: Jim Ayres, Steve Di Memmo, John Mansperger, Jim Potts Absent: Dale Stubblefield 1.3 Invocation Associate pastor Pete Stevens Jr., of The Shepards House, gave the invocation. 1.4 Pledge of Allegiance Public Works Director Mike Emberton led the Pledge of Allegiance. 1.5 Special Presentations 1.5.1 Certificate of Recognition to City Employees Ben Haskell and Kenny Rodger Vice Mayor John Mansperger and Public Works Director Mike Emberton met at the podium and asked city employees Ben Haskell and Kenny Rodger to join them. Public Works Director Emberton said that while in route to a park job the two were first to arrive on the scene of a roll-over accident. Showing initiative Mr. Haskell and Mr. Rodger attended to the injured driver and handled traffic control until emergency personnel could arrive. Vice Mayor Mansperger read the certificate and presented them to Mr. Haskell and Mr. Rodger. City Council Minutes October 1, 2009 Page 2 of 12 1.5.2 Certificate of Recognition to City Employee Sean Vance and a civilian Mike Thiben Public Works Director Emberton asked city employee Sean Vance to join he and. Vice Mayor Mansperger at the podium. Mike Thiben was not in attendance. Public Works Director said that on the evening of September 5, 2009 while Mr. Vance and Mr, Thiben were traveling down Esplanade Avenue near Rancho Park they observed a group of youths who were taking boulders out of the median and putting them in the street. Mr. Vance and Mr. Thiben proceeded to replace the boulders, therefore preventing a potential accident. Vice Mayor Mansperger read the certificate and presented it to Mr. Vance, 2. PUBLIC COMMENTS: 2.0 Public Comments None 3. JOINT CONSENT CALENDAR 3A CONSENT CALENDAR — CITY COUNCIL 3A.1 Waive Reading of all Ordinance Introductions and Read by Title Only / Approve / City Clerk 3A.2 Continuation of the Proclamation of the Local State of Emergency due to The Severe High and Damaging winds 1 Approve the continuation of the proclamation of the Local State of Emergency / City Attorney 3A.3 September 3, 2009 Minutes — Regular Meeting / Approve / City Clerk 3A.4 September 17, 2009 Minutes — Regular Meeting / Approve / City Clerk 3A.5 Treasurers Report for June 30, 2009 / Receive and File / City Treasurer 3A.6 Request for Approval of Change to 38-Hour Work Week / Approve / City Manager 3A.7 Friends of Valley -Wide Foundation Autumn Elegance Banner —17th annual Friends of Valley -Wide Foundation Autumn Elegance Fundraiser / Approve / Planning Director 3A.8 Night closure of Esplanade Ave at Santa Fe St. in conjunction with EMWD waterline replacement project / Approve / City Engineer City Council Minutes October 1, 2009 Page 3 of 12 3A.9 The second reading of Ordinance No. 09-20 to repeal and replace Sections 15.20.010 and 15.20.020 of Chapter 15.20 of the San Jacinto Municipal Code, relating to the Abandonment of Model Home Complexes / Approve / Assistant City Manager AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA, REPEALING SECTIONS 15.20.010 AND 15.20.020 OF THE SAN JACINTO MUNICIPAL CODE RELATING TO THE ABANDONMENT OF MODEL HOME COMPLEXES AND ADOPTING NEW SECTIONS 15.20.010 AND 15.20.020 3B CONSENT CALENDAR — REDEVELOPMENT AGENCY None M/S/C (Ayres/Di Memmo) moved to approve the consent calendar for both City Council and Redevelopment Agency as presented. Motion Carried 4-0. Ayes: Ayres, Di Memmo, Mansperger, Potts Nays: None Absent: Stubblefield Abstain: None 4. PUBLIC HEARING 4.1 Ordinance No. 09-21 / amending Ordinance No's. 04-10 and 05-12 excluding cellular phone towers from annexing into CFD 2003-1 / Approve Introduction and First Reading / Assistant City Manager AN ORDINANCE OF THE CITY OF SAN JACINTO, CALIFORNIA AMENDING ORDINANCE NO. 04-10 AND ORDINANCE NO. 05-12 EXCLUDING CELLULAR PHONE TOWERS FROM ANNEXING INTO CFD 2003-1 Assistant City Manager Tim Hults presented the staff report. He said that staff is seeking to exclude cellular sites from the annexation into the CFD. Because in most cases they are land leases and they occupy a small portion of the property making it difficult to annex into the district. He added that the entire parcel is forced to annex into the district. The property owners would have to annex into the district and pay the special district taxes. There is no floor area in most cases associated with these facilities so staff is asking that the council authorize them to be exempt from annexation into the district. City Council Minutes October 1, 2009 Page 4 of 12 Vice Mayor Mansperger opened public hearing at 7:15 p.m. There being no one who wished to speak on item 4.1 Vice Mayor Mansperger closed public hearing at: 7:15 p.m. Council Member Ayres asked City Attorney Jeff Ballinger when the cell sites were included in the CFD was the city looking for sources of revenue for new construction that would primarily benefit from the construction of the Levee. City Attorney Ballinger responded that this CFD is for Police & Fire services, and maintenance. If the new development brings the need for police services should pay their own way. Those are primarily single family residences. These cell towers do not fit those models. Council Member Ayres said that not knowing how many more will be built in the future, the city would potentially lose revenue that is needed for Public Safety CFD. City Attorney Ballinger responded that the city would be forgoing the taxes. Council Member Ayres asked if there could be a way that the property owner would not have to annex in the entire property, only the portion that is being leased for the cell site. He said that he does not understand why this was brought forward; this was set in stone some time ago where everyone that benefited from the CFD should pay for the CFD. Vice Mayor Mansperger said that he agreed with Council Member Ayres that the towers should not be exempt. He asked City Attorney Ballinger if there was a way that just the portion where the cell site is could be annexed. City Attorney Ballinger responded that because it is collected on the tax roll the entire portion would be required to be annexed. Vice Mayor Mansperger asked if there was another way to collect some type of fee. City Attorney Ballinger said that it could be looked at from a CEQA perspective. Council Member Potts asked how much it costs for new construction to annex into the district. Special District Administrator Sandy McKay said that it would cost $11,500 to annex into the district and the annual fee is less that $1 per square foot of the footprint that the cell tower sits on. City Council Minutes October 1, 2009 Page 5 of 12 Council Member Potts said that seemed like a minimal amount per year. City Attorney Ballinger asked if Ms McKay was referring to the entire project site where the equipment building is or just the tower site itself. Ms McKay responded that it was for the entire project site within the fenced in area. She said that it was a hard call to ask for this to be excluded from the annexation because it is revenue. Council Member Potts asked it the City has to monitor and collect for this. Ms McKay responded, yes the city does monitor it and it is collected through the tax roll. She said that the property owner is the one who would grant approval. This means that the owner would be responsible for the annexation annual fees and the cellular owner for their fees. This is a forever fee that does not go away. Council Member Di Memmo said that he agreed with Council Member Ayres that people that lease the land make money and the people that own the cell towers make money so the City should collect on this as well. He said that the CFD should be kept the way it is. Council Member Ayres said he would hope for a compromise, to keep it the way it is but have staff go back and look at it for sixty days to see if there is some way to keep the fee in place for the city but not affect the entire property. He said his recommendation would be if it could not be done in sixty days to leave it the way it is. Council Member Potts asked if this had been done by other municipalities in the area, or would this be breaking new ground, and can the city legally go against the cellular company or would this create problems with the Public Utilities Commission. City Attorney Ballinger said that if an exception was made it would be breaking new ground. He also said that there are Federal or State laws that would preempt the city to make any exemption. Council Member Ayres said that Council Member Potts was correct that when the growth started the CFD was put in place to get the City through lean times. Those decisions have paid off for the city. A lot of research and hard work went into those decisions. This is not a blanket CFD; it is just for new development. The downtown core is not taxed. He added that there are more cell towers coming forward. He would like to have legal council to look at this for other options. City Council Minutes October 1, 2009 Page 6 of 12 M/S/C (Ayres/Di Memmo) to continue Item 4.1 for sixty days and return with possible alternative options. Motion carried 4-0. Ayes: Ayres, Di Memmo, Mansperger, Potts Nays: None Absent: Stubblefield Abstain: None 5. STAFF REPORTS 5.1 Presentation of Youth and Juvenile Delinquency Court Programs / Presentation / Chief of Police Chief Bill Tyler presented the staff report. He said he was excited to introduce the Youth and Juvenile Delinquency Court Program and thanked the Youth Court and Truancy team. He said that the mission is to address juvenile delinquency and provide educational and diversion programs for these at risk teens. Chief Tyler said that 71 % of all juvenile crime are committed during school hours. He said finding a way to keep the kids in school and off the streets is important and that these programs will help accomplish these goals. Chief Tyler said that San Jacinto is the first city in Riverside County to introduce this program. He added that this program will be administered with on duty staff and volunteers and that it would not cost the City, County or Citizens any additional funds to run the programs. This will be a collaborated effort with San Jacinto Police Department, San Jacinto Unified School District, Riverside County Sheriff's Department, Riverside County Office of Education, Riverside Superior Court, The District Attorney's Office, and the San Jacinto City Council. Chief Tyler introduced the Youth and Juvenile Delinquency Court Program team; Sgt. Dave Harr, Deputy District Attorney Raquel Marquez; and Riverside County Sheriffs Deputy Larry Searls, and asked Deputy Searls to come forward. Deputy Searls thanked the council for the opportunity to share these new programs with them. He presented the 1st portion of a power point program and said that the Youth Court was developed to help youths not to punish or demean them. There has been very positive feedback from other cities in the area. When young men and women commit low level crimes they are held accountable by a jury of their peers, they are defended and prosecuted by their peers. He said that there has been great success where their peers are involved. This is an early intervention program and creates a better relationship between the minors and law enforcement. Deputy Searls said that he attended a training group in Riverside and two young ladies spoke that started in the Youth Court program as participants. They went through the process and one of them right now is the lead prosecutor in the program right now, the other is one of the lead defenders. They are both getting prepared to go off to college and will probably get into law enforcement. These are all non violent cases City Council Minutes October 1, 2009 Page 7 of 12 and they must admit to their charge and voluntarily go into this with their parents. The parents are a key piece in the program for support. The eligibility for this program are kids who are 12 to 17 years old. He said they can process about 10 minors per month and they are released after 3 to 6 months, and the judge overseas the program. Some of the consequences that will be handed down will be anger management/self esteem classes, drug and alcohol Intervention, mandatory school attendance, community service, written apologies, written essays. The minors that are processed through the Youth Court Program must come back and serve on a jury and be part of the program. Vice Mayor Mansperger asked if this program would count as community service hours for the seniors at the high school. Deputy Searls said that many of the young men and women who volunteer for the program use it as community service and it looks very good on college applications. Council Member De Mimmo asked how the jurors are picked. Deputy Searls responded that when the program first starts out they recruit from the local high school, as the program continues to grow the participants will stay in the program and be jurors. Riverside Deputy District Attorney Raquel Marquez presented the 2nd portion of the presentation. She said seeing many young people coming in and out of the justice system she wanted to come out and work in the communities and stop this revolving process at a lower level where the children are younger and get an earlier start with them. She said that 1 in every 3 students will not receive a diploma in California. In San Jacinto it is 1 in 5, there is about a 79% graduation rate. She said that 80% of dropouts were truants, so if the program can stop truancy then there is a higher probability of graduation. 43% of truants miss too many days to catch up. 71 % of those individuals who are committing crimes are doing them within school hours. Dropouts compose 75% of prisons, in Juvenile Hall most of the kids cannot read nor do basic math. Many of them will go straight into the prison system. Unemployment is high, 47% percent of those that do not have a high school diploma cannot get a job, if they do get a job only 31% of those individuals can get the job for more than a year. For 1 year of drop outs it costs Riverside County 1.4 billion dollars over a lifetime. Putting this program in place is a good solution which will help keep kids in school and bring down these numbers. The Truancy and School Delinquency Court will be on the 1st Wednesday of every month at 1:30 pm and will begin on October 7, 2009. Vice Mayor Mansperger asked if the cases are held in the court house. City Council Minutes October 1, 2009 Page 8 of 12 Ms Marquez responded that the cases are held in the court house and open to the public. Council Member Di Memmo asked if the case would be expunged when the juvenile has successfully completed the program. Ms Marquez responded that it would be an infraction, like a traffic ticket, it would be up to the judge or commissioner. Chief Tyler said that the support of council would be great at these meetings. He said that the Delinquency Court will be at the Hemet Court House but the Youth Court will be held at the San Jacinto School District Board Room. It will be held the first Wednesday at 5:30 pm. Chief Tyler invited the council to attend and thanked them for their support. 5.2 Park and Landscape Maintenance Contracts (LLPD1 & LLPD2) / Approve / Public Works Director Public Works Director Mike Emberton presented the staff report. This is the opportunity to bid out the maintenance contract and take advantage of the slow economy. There are two different contracts at this time, LLPD 1 and LLPD 2 due to the funding differences between the two districts. M/S/C (Ayres/Di Memmo) to approve Park and Landscape Maintenance Contracts (LLPD1 & LLPD2 going out to bid.). Motion carried 4-0. Ayes: Ayres, Di Memmo, Mansperger, Potts Nays: None Absent: Stubblefield Abstain: None 5.3 Cooperation Agreements — Valley Wide Recreation and Park District / Receive and File / Assistant City Manager Assistant City Manager Hults presented the staff report. He said on August 6th the council asked for an update on the various agreements on the facilities for which Valley Wide provides service. There are six facilities that Valley Wide provides some type of service for, they are: the Community Center, Millet Park Soccer field, Rancho Park Baseball field, Sallee Park Baseball field and Pool, and San Jacinto PAL program. At the Community Center they have been providing staff support since the Community Center Coordinator went out on disability. Rosann Zahari has been working in the Community Center for the last several months and has been doing a very good job. There have been many comments as well as a letter commending her work. The Community Center Coordinator Ofelia Segala has announced that she will retire on December 1, 2009. He said that one option is to continue the contract with Valley Wide or terminate the contract and recruit for a new Community Center Coordinator. He said in regards to City Council Minutes October 1, 2009 Page 9 of 12 Millet Park, the six homes that are built there are not generating enough money in annual special taxes to support the complete maintenance of the park. Valley Wide agreed to maintain the grounds in exchange for managing the lighted soccer field. The city is committing to pay for the water using the lease proceeds of two cell towers, one at Rancho and one at Salle Park. Vendors have used the parks and the city has issued them vendor permits and the health department is only allowing packaged foods and water. Rancho and Sallee Park ball diamonds are managed by Valley Wide staff, the city maintains the balance. Sallee Park Pool is maintained and managed by Valley Wide with the city providing the maintenance of the equipment. Valley Wide provides the staff for the PAL program Council Member Potts commented that over the last six months he has heard many compliments on the Community Center and also has noticed a refreshing change. He said that the Community Center should be run by a city employee and that should be considered. Council Member Potts also asked if the Public Safety Subcommittee could provide information on who is actually using the PAL program. He said he would like to see it monitored more closely. Council Member Ayres said that a city employee should be working at the Community Center; if Rosann Zahari is doing a good job she should be considered. He said that he has seen people cooking on the field at Millett Park and it should be monitored more closely. Council Member Ayres said that Sallee Pool is not reaching its full potential. He said the city should run the operation, and expand the hours in the summer. He added that when the Skate Park is built they could all be managed together. Council Member Di Memmo suggested the city have a Parks and Recreation Subcommittee to deal with these issues. He said this should be looked at more closely. M/S/C (Mansperger/Ayres) to receive and file the Cooperation Agreements — Valley Wide Recreation and Park District. Motion carried 4-0. Ayes: Ayres, Di Memmo, Mansperger, Potts, Nays: None Absent: Stubblefield Abstain: None 5.4 RDA / Consideration of approval of proposed Preliminary Report, Draft Owner Participation Rules and Draft Method of Relocation for the proposed Amended and Restated Redevelopment Plan for the Merged San Jacinto Redevelopment Project Area / Approve / Assistant City Manager This item is continued to the next scheduled meeting of October 15, 2009 because Vice Mayor Mansperger and Council Member Di Memmo have a City Council Minutes October 1, 2009 Page 10 of 12 conflict of interest because they own property within the district and there is no quorum. 6. MAYOR / COUNCIL MEMBER REPORTS / DISCUSSIONS 6.1 Sub -Committee and/or Agency Agendas / Receive and File / City Clerk Council Member Ayres said he attended the last RTA meeting and after 4 years of hard work the contract for the Corona Grand Ave Multi Modal Station is completed. Bus and train schedules will be working together. There will be one in Temecula, Perris, and Moreno Valley but the first station will be in Corona. He recommended that the council go there as a group to see it. Council Member Di Memmo said he has been busy working on putting together a pancake breakfast to benefit the Ramona Pageant on the 17t and 18th of October. In addition, Wal Mart donated all the food for the pancake breakfast and the pancake breakfast will be held at the Country Club at Golden Era, who donated the facility. He also noted that Starbucks will be there selling coffee and the proceeds from Starbucks sales will go to the veterans. He said he is looking forward to the skate park. He added that the San Jacinto Police Department has been doing a great job and that the new program presented tonight is tremendous. Council Member Potts said he attended both RTA and WRCOG meetings. He spoke about an accident at Ramona Expressway and Sanderson last Saturday. The intersection was closed for six hours and all traffic was diverted. He said that this is a prime example of why Gilman Hot Springs Road should never be closed. This was only for six hours and the traffic was backed up on Sanderson Ave all the way to Banning. He thanked the San Jacinto Police Department, the volunteers and explorers for the good job they did. Vice Mayor Mansperger commented that Mr. Ray Hicks met with staff today and they had a very productive meeting. He thanked him for coming in. Council Member Ayres thanked Mr. Hicks for keeping the city updated. He commented the San Jacinto Chamber of Commerce celebrated its 1st Birthday. Vice Mayor recessed the regular meeting at 8:20 p.m. and reconvened in Closed Session 8:30 p.m. City Council Minutes October 1, 2009 Page 11of12 7. CLOSED SESSION 7.1 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) Section 54956.9) Name of Case: City of San Jacinto v. Acting Pacific Regional Director, Bureau of Indian Affairs (Docket No. IBIA 08-122-A) 7.2 CONFERENCE WITH REAL PROPERTY NEGOTIATOR 1155 South State Street, San Jacinto Negotiation Parties: Tim Hults, Assistant City Manager and/or Barry McClellan, RDA Executive Director (for the RDA), and James Antoyan (for property owner(s)) Under negotiation: Price and terms of payment 7.3 CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: one (1) or more potential cases 7.4 CONFERENCE WITH REAL PROPERTY NEGOTIATOR 1881 S. Santa Fe Avenue, San Jacinto Negotiation Parties: Tim Hults, Assistant City Manager and/or Barry McClellan, RDA Executive Director (for the RDA), and Bruce Maize (for property owner(s)) Under Negotiation: Price and Terms 8. ADJOURNMENT With no further business before the City Council, Vice Mayor Mansperger adjourned the meeting at 9:15 p.m. ATTEST: Richard Miller, Deputy City Clerk City of San Jacinto John Mansperger, Vice Mayor Approved as read: City Council Minutes October 1, 2009 Page 12 of 12 Approved as amended: AGENDA 3R.1-- MINUTES JOINT STUDY SESSION OF THE SAN JACINTO CITY COUNCIL AND PLANNING COMMISSION October 1, 2009, 6:00 p.m. 2045 South San Jacinto Avenue San Jacinto Unified School District Board Room, San Jacinto, CA 92583 1. ORGANIZATION 1.1 CaII to Order Vice Mayor John Mansperger called the joint meeting of the San Jacinto City Council and Planning Commission to order at 6:15 p.m. 1,2 Roll Call Council Present: Steve Di Memmo, John Mansperger, Jim Potts Council Absent: Jim Ayres, Dale Stubblefield Planning Commission Present: Andrew Kotyuk, Larry Pellerin; Anerew Seitl, Russ Utz, Steve Warneke 2. PUBLIC COMMENTS: 2.0 Public Comments None 3. OLD BUSINESS None 4. NEW BUSINESS 4.1 San Jacinto Housing Element Vice Mayor John Mansperger asked Planning Director Asher Hertel to introduce the item. Planning Director Hertel said that one year ago the council approved a contract for the city to hire a consultant to update the housing element. He introduced John Douglas with Conexus who presented a presentation to the City Council and Planning Commission. Mr. John Douglas focused on policy concerns to the city, particularly what is different from the last packet that was approved a few years ago. He said the housing element is part of the General plan; this update covers Joint Meeting City Council and Planning Commission Minutes October 1, 2009 Page 2 of 6 2008 — 2014. The purpose for the update is to refine the existing housing element, to meet city goals, and achieve the blessing from State Department of Housing. There are several reasons why the city would like to have the blessing of the State Department of Housing. One would be to maximize the city's eligibility for grant funds, and another would be for legal reasons. The courts could take control of a local planning and building department if the element is not consistent with state laws. The document has two parts, one is the housing plan and, and the other is a technical document with zoning standards. The Regional Housing Needs Assessment is a state law that says every jurisdiction, county, and city is responsible for accommodating its fair share of the regions housing need for a full range of income categories. There are state laws regarding housing people with special needs and the kinds of programs and zoning ordinances that cities have to have on the books in order to be consistent with state law. The Regional Housing Needs Allocation process is mandated by state law and is implemented by Southern Califomia Association of Governments ' (SCAG). Western Riverside Council of Governments (WRCOG) is involved in an advisory capacity. It is a forecast out to the year 2014 and translating that forecast into housing needs based on the population growth that is anticipated. This document was prepared in 2006 and 2007 and these numbers were +, prepared before the change in the economy. Every jurisdiction has to accommodate its fair share of the regions needs, not build, but can adopt policies. The city is responsible for adopting plans and ordinances which help to facilitate the building of housing that focuses on creating affordable housing for people with lower incomes. This forecast is linked to the City's General Plan and Zoning. State law says that you have to demonstrate your ability to accommodate your need, the number of housing units in different income categories. Both the. Federal and State Governments have income criteria that they use in this field of housing. In State and Federal law "Low Income" housing is defined by: No more than 80% of the county median income. In Riverside County the most median income accounting is $56,000 per year. A low income household is one that has an income of no more than $53,000 per year. This translates into affordability for low income working individuals. In low income affordability rent for an apartment would be no more than $1,333 per month. For home sales it would be no more than $220,000. SCAG states that the city is obligated to plan for 12,000 new housing units within the 8 1/2 year period and 4,600 must be suitable for lower income households, using the Federal and State guidelines. Credit for 9,459 houses built before 2006 is given. There are 25,000 single family units that <` can be built in the moderate category. There are 3,883 units that can be built in the multi family sites. The city has capacity in all income categories to accommodate the area numbers, which is what is required by law. Joint Meeting City Council and Planning Commission Minutes October 1, 2009 Page 3 of 6 State law requires every city to allow a state licensed community care facility with no more that six people in residence. Agricultural employee housing allows for up to thirty-six beds or twelve units in an agricultural zone. Cities cannot require any Conditional Use Permits or other types of approvals that are not required of farming. Emergency shelters is a right by Senate Bill 2 which was passed in 2007, states that every city and county in the state must recognize at least one zone in their city where emergency shelters can be approved by right. There will be no Public Hearing and no Conditional Use Permit required. Heavy Commercial, Limited Industrial, or Manufacturing Industrial Park Zones are areas that the city is considering to designate as the Emergency Shelter Zone, subject to development standards. Vice Mayor Mansperger asked for clarification as to what is considered an Emergency Shelter Mr. Douglas said that an Emergency Shelter is a permanent year round facility that is operated by a non-profit organization. It is intended for people who are homeless with no place to stay on a day to day basis based on vacancy. Chairman Warneke said he is not aware of any facility like that in the city. Vice Mayor Mansperger asked if the city had to have an area that allows this or if it can be any industrial area. Mr. Douglas said that it must have at least one zone. In the Housing Element it states that the city is considering three zones. The council can choose one or more zones or designate a different one. The key is that the city must designate at least one zone. Commissioner Pellerin asked if there was a size restriction, is there something that determines the maximum size of the shelter. Mr. Douglas responded that there could be but state law does not say what the maximum would be but it does say that, as part of the zoning ordinance you can establish what the maximum number of beds would be. Every city has to designate at least one zone and their regulations have to accommodate at least one shelter. Chairman Warneke asked in regards to the state licensed community care facility of six or fewer if there was any differentiation between mentally and physically disabled. Mr. Douglas responded that there was not any difference. The licensed community care facility is not talking about medical care but they could be talking about people with substance abuse or Alzheimer Disease. Joint Meeting City Council and Planning Commission Minutes October 1, 2009 Page 4 of 6 Transitional or Supportive Housing also falls under the Senate Bill 2 and looks more like a conventional house or apartment building and is typically run by a non-profit organization. The way it differs from the Emergency Shelter is that people would apply to the non-profit organization for acceptance. There are rules and regulations that they must follow. The people who would use this facility would be people that could be homeless without it. There may be supportive services that go along with it such as life management skills or job counseling. It would be more of transition from homeless to regular housing. The law says that Transitional or Supportive Housing is residential use; cities cannot require any additional permits or procedures for them that are not required for conventional housing in that zone. Commissioner Seitl asked if there is a population growth and the population doubles is the city obligated to add to that facility or add additional facilities. Mr. Douglas said that every so many years the Housing Element gets updated and whatever the needs are they get updated at that time. Until then it would be set in stone and stay the same. Mr. Douglas said that another item that has changed is the definition of family. In the current code it is not consistent with some court decisions. The current definition of a family establishes a maximum of six unrelated people. The courts have said you can't do that, if a group of people are living together as a family, sharing duties you cannot cut it off at any particular number. In regards to State Density Bonus Law, this has been revised over the last ten to fifteen years. The changes would just bring the city into consistency with the latest State Density Bonus Law. The General Plan had some new land use designations in it and one of those is the very high density residential district, ranging from fourteen to twenty-two units per acre. That is not in the zoning ordinance but will be included in the land use zoning ordinance. The Senior Development Zone is to be renamed R2. The Reasonable Accommodation Procedure is for people with disabilities. It outlines procedures to follow if a disabled person asks for modification or waver that they need in order to enjoy their residence. Mr. Douglas said after the council is comfortable with the draft of the San Jacinto Housing Element, it will be submitted to the state for their review before the council adopts it. He added that the city would be required to consider their comments. The review process from the state would take approximately sixty days. Upon receipt of the states findings it would be Joint Meeting City Council and Planning Commission Minutes October 1, 2009 Page 5 of 6 reviewed by staff and brought back to the Council and Planning Commission for Public Hearing and adoption. Council Member Potts asked how it would affect the city with twelve people living in large 3 bedroom homes. How does the city deal with overcrowding and unhealthy living conditions when state and federal government is telling us that the family structure is changed? Mr. Douglas stated that the City Attorney would have more details on that. City Attorney Jeff Ballinger said that many cities are facing this issue. He said that issue could be addressed through the housing code which sets limits of occupancy to two people per room plus one or two in common areas. He added if it was a rental arrangement there is an adopted ordinance that regulates multiple people living in single family homes and Code Enforcement could enforce it. Mr. Douglas said the action he is requesting would be to give any feedback on the changes and if there were not would like to send it to Sacramento. Vice Mayor Mansperger opened public hearing at 6:52 pm There being no one wishing to speak Vice Mayor Mansperger closed public hearing at 6:52 pm Council Member Potts asked if the city was required by state law to make these revisions. Mr. Douglas responded, yes. M/S/C (Potts/Di Memmo) to authorize staff to review the draft of the San Jacinto Housing Element to meet Federal and State requirements. Motion carried 3-0. Ayes: Di Memmo, Mansperger, Potts Nays: None Absent: Ayres, Stubblefield Abstain: None M/S/C (Kotyuk/Pellerin) to authorize staff to review the draft of the San Jacinto Housing Element to meet Federal and State requirements. Motion carried 5-0. Ayes: Kotyuk, Pellerin, Seitl, Utz, Warneke Nays: None Absent: None Abstain: None Joint Meeting City Council and Planning Commission Minutes October 1. 2009 Page 6 of 6 5. MEMBERS REPORTS / DISCUSSIONS None 6. ADJOURNMENT With no further business before the City Council, Mayor Stubblefield adjourned the meeting at 6:53 p.m. ATTEST: Richard Miller, Deputy City Clerk City of San Jacinto John Mansperger, Vice Mayor Approved as read: Approved as amended: AGENDA ITEM 88rl October 15, 2009 TO: Honorable Chairman and Redevelopment Agency Board Members FROM: Connie Rogers -Elmore, Interim Finance Direc SUBJECT. RDA Report Filings for the Tax Year 2009-2010 — Annual Statements of Indebtedness and AB 1389 Report RECOMMENDATION: It is recommended that the Agency, review and accept the following fiscal reports: a) Redevelopment Agency of the City of San Jacinto Annual Statement of indebtedness -Consolidated; Filed for the 2009-2010 Tax Year (San Jacinto Project Area) b) Redevelopment Agency of the City of San Jacinto Annual Statement of Indebtedness -Consolidated; Filed for the 2009-2010 Tax Year (Soboba Project Area) c) Redevelopment Agency of the City of San Jacinto Statement of Pass - Through Obligations for Redevelopment Project Areas (2008-09 AB 1389 Report) BACKGROUND: The California Health and Safety Code provides a procedure to be followed in the allocation and payment of taxes to redevelopment agencies that includes the annual filing, by project area, of a Statement of Indebtedness (SOI) with the County Auditor -Controller no later than October 1 of each fiscal year. Failure to do so may result in the Toss of tax increment monies. The Health and Safety Code also requires certain reporting to be done regarding the pass-throughs that are paid, based on tax increment. DISCUSSION: The SOI can be looked upon as a "Statement of Future Tax Increment Requirements", Agencies have, by law, several obligations for the use of tax increment in addition to the repayment of indebtedness. This includes the obligation to the Low and Moderate Income Housing Fund of the 20% set -aside, as well as obligations to pass -through tax increment to other local taxing agencies. Enacted in 2008, AB 1389 requires reporting of certain pass -through obligations to the County Auditor, and ultimately the State Controller's Office. Page 1 of 1 FISCAL IMPACT: None — The Agency's SOIs were certified by the City's Finance Director on October 1, 2009, and the AB 1389 Report was certified by the Acting Executive Director on October 1, 2009. ATTACHMENTS: Redevelopment Agency of the City of San Jacinto Annual Statement of Indebtedness -Consolidated; Filed for the 2009-2010 Tax Year (San Jacinto Project Area) Redevelopment Agency of the City of San Jacinto Annual Statement of Indebtedness -Consolidated; Filed for the 2009-2010 Tax Year (Soboba Project Area) Redevelopment. Agency of the City of San Jacinto Statement of Pass - Through Obligations for Redevelopment Project Areas (2008-09 AB 1389 Report) Page 2 of 1 STATEMENT OF INDEBTEDNESS - CONSOLIDATED FILED FOR THE 2009 - 2010 TAX YEAR Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: San Jacinto Project Area Cover Page Fiscal Period - Totals (Optional) Post Fiscal Period - Totals Grand Totals Balances Carried Forward From: Line (From Form A, Page 1 Totals) (1) (From Form B, Page 1 Totals) (2) (3) Available Revenues From Calculation of Available Revenues, Line 7 (4) Net Requirement (5) Current Total Outstanding Debt $122,044,211 $2,273,854 $124, 318,065 $12,043,776 $112,274,289 Principal/Interest Due During Tax Year $74,660,166 $1,885,635 $76,545,801 Consolidate on this form all of the data contained on Form A and B (including supplemental pages). Form A is to include all indebtedness entered into as of June 30 of the Fiscal Year. Form B may be filed at the option of the Agency, and is to include indebtedness entered into post June 30 of the Fiscal Year, pursuant to Health and Safety Code section 33675( c ) ( 2 ). This is optional for each Agency and is not a requirement for filing the Statement of Indebtedness. The Reconciliation Statement is to include indebtedness from Form A only. Certification of Chief Financial Officer: Pursuant to Section 33675(b) of the Health and Safety Code, I hereby certify that the above is a true and accurate Statement of Indebtedness for the above named agency. Connie Rogers -Elmore Interim Finance Director Signature (/ (f ( Date STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2009 - 2010 TAX YEAR Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: San Jacinto Project Area For Indebtedness Entered into as of June 30, 2009 Form A Page 1 of 3 Debt Identification Original Data Current Date Principal Term Interest Rate Total Interest Total Outstanding Debt Principal/Interest Due During Tax Year Low and Moderate Income Housing Fund (A) - Original Area 1983 $19,516,894 51 Yrs None Not applicable $15,783,146 $15,783,146 Pass -through with County of Riverside - (B) Original Area 1983 $14,857,485 51 Yrs None Not applicable pp $13,036,237 $13,036,237 Pass -through with County of Riverside (C) Library -Original Area 1983 $1,503,863 51 Yrs None Not applicable $1,314,013 $1,314,013 Pass -through with Riverside County (D) Flood Control -Original Area 1983 $1,616,540 51 Yrs None Not applicable $1,343,306 $1,343,306 Pass -through with Valley Wide Rec. Dist. (E) - Original Area 1983 $423,674 51 Yrs None Not applicable $355,066 $355,066 Pass -through with San Jacinto Unified (F) School Dist. - Original Area 1983 $18,393,585 51 Yrs None Not applicable $15,855,422 $15,855,422 Pass -through with Eastern Municipal (G) Water Dist. - Original Area 1983 $4,705,163 51 Yrs None Not applicable $3,894,332 $3,894,332 Loan with Eastern Municipal Water Dist. - (H) Original Area 7/1998 $50,799 40 Yrs 0% $0 $25,401 $1,270 Pass -through with San Jacinto Cemetery ( I ) Dist. -Original Area 1983 $173,051 51 Yrs None Not applicable $138,629 $138,629 Low and Moderate Income Housing Fund (J) -'93 Amended Area 1993 $4,179,580 45 Yrs None Not applicable $2,848,958 $2,848,958 Sub Total, This Page $54,594,510 $54,570,379 Totals Forward From All Other Pages $67,449,701 $20,089,787 Totals, Fiscal Year Indebtedness k $122,044,211 $74,660,166 Purpose of Indebtedness: (A) Low -moderate housing set -aside required by Section 33334.2 of Health & Safety Code. (B) Tax sharing agreement. Amount computed based upon protections. (C) Tax sharing agreement. Amount computed based upon protections. (D) Tax sharing agreement. Amount computed based upon projections. (E) Tax sharing agreement. Amount computed based upon protections. (F) Tax sharing agreement. Amount computed based upon projections. (G) Tax sharing agreement. Amount computed based upon projections. (H) Loan for unpaid previous Pass -through. ( I ) Tax sharing agreement. Amount computed based upon projections. (J) Low -moderate housing set -aside required by Section 33334.2 of Health & Safety Code. STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2009 - 2010 TAX YEAR Name of Redevelopment Agency: Name of Project Area: Redevelopment Agency of the City of San Jacinto San Jacinto Project Area For Indebtedness Entered into as of June 30, 2009 Form A Page 2 of 3 Debt Identification Original Data Current Date Principal Term Interest Rate Total Interest Total Outstanding Debt Principal/Interest Due During Tax Year Pass -through with County of Riverside - (A) '93 Amended Area 1993 $8,368,804 45 Yrs None Not applicable $8,065,044 $8,065,044 Pass -through with Riverside County (B) Flood Control -'93 Amended Area 1993 $463,133 45 Yrs None Not applicable $368,363 $368,363 Pass -through with San Jacinto Cemetery (C) Dist. -'93 Amended Area 1993 $671,146 45 Yrs None Not applicable $655,490 $655,490 Pass -through with Valley Wide Rec. Dist. (D) -'93 Amended Area 1993 $202,904 45 Yrs None Not applicable $165,730 $165, 730 Pass -through with San Jacinto Unified (E) School Dist. -'93 Amended 1993 $4,984,898 45 Yrs None Not applicable $4,615,883 $4,615,883 Pass -through with Eastern Municipal (F) Water Dist -'93 Amended Area 1993 $1,754,404 45 Yrs None Not applicable $1,478,480 $1,478,480 Pass -through with San Jacinto Res. (G) Cons. Dist. -'93 Amended Area 1993 $5,676 45 Yrs None Not applicable $5,612 $5,612 Pass -through with Mt. San Jacinto (H) Comm. College -'93Amended Area 1993 $613,680 45 Yrs None Not applicable $512,460 $512,460 Pass -through with County Superint. of ( I ) Schools -'93 Amended Area 1993 $537,232 45 Yrs None Not applicable $423,583 $423,583 Pass -through with City of San Jacinto - (J) Original Area 2004 $1,496,000 34 Yrs None Not applicable pp $1, 300,318 $1, 300, 318 Pass -through with City of San Jacinto (K) Lighting - Original Area 2004 $110,500 34 Yrs None Not applicable $96,203 $96,203 Pass -through with Mt. San Jacinto (L) College - Original Area 2004 $340,000 34 Yrs None Not applicable $296,268 $296,268 Total, This Page $17,983,434 $17,983,434 Purpose of Indebtedness: (A) Tax sharing agreement. Amount computed based upon projections. (B) Tax sharing agreement Amount computed based upon projections. (C) Tax sharing agreement. Amount computed based upon projections. (D) Tax sharing agreement. Amount computed based upon oroiections. (E) Tax sharing agreement. Amount computed based upon prolections. (F) Tax sharing agreement. Amount computed based upon projections. (G) (H) ( I ) (J) (K) (L) Tax sharing agreement. Amount computed based upon projections. Tax sharing agreement. Amount computed based upon projections. Tax sharing agreement. Amount computed based upon projections. Statutory Pass -through. Amount computed based upon projections. Statutory pass -through. Amount computed based upon projections. Statutory pass -through. Amount computed based upon projections. STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2009 - 2010 TAX YEAR Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: San Jacinto Project Area For Indebtedness Entered into as of June 30, 2009 Form A Page 3of3 Debt Identification Original Data Current Date Principal Term Interest Rate Total Interest Total Outstanding Debt Principal/Interest Due During Tax Year Pass -through with County Superint. of (A) Schools - Original Area 2004 $357,000 34 Yrs None Not applicable $311,857 $311,857 Pass -through with San Jac. Res. Cons. (B) Dist. -Original Area 2004 $2,040 34 Yrs None Not applicable $1,787 $1,787 (C) Educational Revenue Augmentation 2008 Not applicable Annual None Not, applicable $0 $0 (D) 2005 Tax Allocation Bonds 5/2005 $9,430,000 30 Yrs 3.0%- 4.6% $7,545,427 $14,967,150 $578,709 (E) County Administrative Fees 1993 Not applicable Annual None Not applicable $1,707,892 $54,000 (F) Debt Service Overhead & Admin 1993 Not applicable Annual None Not applicable $8,959,617 $320,000 (G) Projects Overhead & Admin 1993 Not applicable Annual None Notapplicable $23,517,964 $840,000 (H) Projects 1993 Not applicable Annual None Not applicable $0 $0 ( I ) (J) (K) (L) Total, This Page $49,466,267 $2,106,353 Purpose of Indebtedness: (A) Statutory pass -through. Amount computed based upon projections. (B) Statutory pass -through. Amount computed based upon projections. (C) ERAF payment, per AB1389. (D) Bond issuance for Projects and refinance of 1993 Bonds. (E) County Auditor -Controller Service Charge per SB 2557. (F) Overhead & Admin associated with Debt Service activities. (G) Overhead & Admin charges associated with Project actvities. (H) Capital Projects. (I) (J) (K) (L) STATEMENT OF INDEBTEDNESS - POST FISCAL YEAR INDEBTEDNESS ONLY FILED FOR THE 2009 - 2010 TAX YEAR Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: San Jacinto Project Area For Indebtedness Entered into as of June 30, 2009 , as of 10-01-2009 Form B Page 1 of 1 (Optional) Debt Identification Original Data Current Date Principal Term Interest Rate Total Interest Total Outstanding Debt Principal/Interest Due During Tax Year (A) ERAF - 09/10 State Budgeted "steal" 2009 Not applicable Annual None Not applicable $1,885,635 $1,885,635 (B) ERAF - 10/11 State Budgeted "steal" 2010 Not applicable Annual None Not applicable $388,219 $0 (C) (D) (E) (F) (G) (H) ( I ) (J) (K) (L) Totals, Post Fiscal Year Indebtedness $ 2,273,854 $ 1,885,635 Purpose of Indebtedness: (A) State mandated payments to ERAF. (B) State mandated payments to ERAF. (C) (G) (H) ( I ) (D) (J) (E) (K) (F) (L) RECONCILIATION STATEMENT - CHANGES IN INDEBTEDNESS Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: San Jacinto Project Area Tax Year 2009-2010 Reconciliation Dates: From July 1, 2008 To June 30, 2009 . Page 1 of 3 Debt Identification: A B C D E F Outstanding Debt All Beginning Indebtedness Adjustments Amounts Paid Against Indebtedness, from: Remaining Balance (A+B-C-D-E) SOI, page and line: Brief Prior Yr Current Yr Description Increases (Attach Explanation) Decreases (Attach Explanation) Tax Increment Other Funds `g 1 Line A Pg 1 Line A Low and Moderate Income Housing Fund - Orig Area $16,571,962 $0 $0 $788,816 $0 $15,783,146 Pg 1 Line B Pg 1 Line B Pass -through with County of Riverside - Orig Area $13,537,598 $0 $0 $501,361 $0 $13,036,237 Pg 1 Line C Pg 1 Line C Pass -through with County of Riverside Library - Orig Area $1,367,732 $0 $0 $53,719 $0 $1,314,013 Pg 1 Line D Pg 1 Line D Pass -through with Riverside Co. Flood Control - Orig Area $1,409,884 $0 $0 $66,578 $0 $1,343,306 Pg 1 Line E Pg 1 Line E Pass -through with Valley Wide Rec. Dist. - Orig Area $371,626 $0 $0 $16,560 $0 $355,066 Pg 1 Line F Pg 1 Line F Pass -through with San Jac. School District - Orig Area $16,466,336 $0 $0 $610,914 $0 $15,855,422 Pg 1 Line G Pg 1 Line G Pass -through with Eastern Municipal Water - Orig Area $4,094,807 $0 $0 $200,475 $0 $3,894,332 Pg 1 Line H Pg 1 Line H Loan with Eastem Municipal Water District - Orig Area $26,671 $0 $0 $1,270 $0 $25,401 'OTAL-THIS PAGE $53,846,616 $0 $0 $2,239,693 $0 $51,606,923 TOTALS FORWARD $35,745,894 $39,407,832 $29,350 $4,687,088 $0 $70,437,288 GRAND TOTALS $89,592,510 $39,407,832 $29,350 $6,926,781 $0 $122,044,211 NOTE: This form is to reconcile the previous Statement of Indebtedness to the current one being filed. However, since the reconc'liation period is limited by law to a July 1 - June 30 fiscal year period, only those items included on the SOI Form A is to be included on this document. To assist in following each item of indebtedness from one SOI to the next, use page and line number references from each SOI that the item of indebtedness is listed on. If the indebtedness is new to this fiscal year, enter "NEW" in the "Prior Yr" page and line columns. Column F must equal the current SOI, Form A Total Outstanding Debt Column. RECONCILIATION STATEMENT - CHANGES IN INDEBTEDNESS Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: San Jacinto Project Area Tax Year 2009-2010 Reconciliation Dates: From July 1, 2008 To June 30, 2009 . Page 2 of 3 Debt Identification: A B C D E F Outstanding Debt All Beginning Indebtedness Adjustments Amounts Paid Against Indebtedness, from: Remaining Balance (A+B-C-D-E) SOI, page and line: Brief Prior Yr Current Yr Description Increases (Attach Explanation) Decreases (Attach Explanation) Tax Increment Other Funds 'g 1 Line I Pg 1 Line I Pass -through with San Jac. Cemetery Dist. - Orig Area $146,076 $0 $0 $7,447 $0 $138,629 Pg 1 Line J Pg 1 Line J Low and Moderate Income Housing Fund -'93 Amend $3,279,957 $0 $0 $430,999 $0 $2,848,958 Pg 2 Line A Pg 2 Line A Pass -through with County of Riverside -'93 Amend $8,186,035 $0 $0 $120,991 $0 $8,065,044 Pg 2 Line B Pg 2 Line B Pass -through with Riverside Co. Flood Control -'93Amend $402,677 $0 $0 $34,314 $0 $368,363 Pg 2 Line C Pg 2 Line C Pass -through with San Jac. Cemetery Dist. -'93 Amend $659,709 $0 $0 $4,219 $0 $655,490 Pg 2 Line D Pg 2 Line D Pass -through with Valley Wide Rec. Dist. -'93 Amend $180,724 $0 $0 $14,994 $0 $165,730 Pg 2 Line E Pg 2 Line E Pass -through with San Jac. School District -'93 Amend $4,735,917 $0 $0 $120,034 $0 $4,615,883 Pg 2 Line F Pg 2 Line F Pass -through with Eastem Municipal Water -'93 Amend $1,584,056 $0 $0 $105,576 $0 $1,478,480 'g 2 Line G Pg 2 Line G Pass -through with San Jac. Res. Cons. Dist. -'93 Amend $5,646 $0 $0 $34 $0 $5,612 Pg 2 Line H Pg 2 Line H Pass -through with Mt. San Jac. College -'93 Amend $548,740 $0 $0 $36,280 $0 $512,460 Pg 2 Line I Pg 2 Line I Pass -through with County Super. Schools -'93 Amend $470,498 $0 $0 $46,915 $0 $423,583 Pg NEW Line NEW Pg 2 Line J Pass -through with City of San Jacinto - Original $0 $1,496,000 $0 $195,682 $0 $1,300,318 Pg NEW Line NEW Pg 2 Line K Pass -through with City of San Jacinto Lighting - Orig. $0 $110,500 $0 $14,297 $0 $96,203 TOTAL -THIS PAGE $20,200,035 $1,606,500 $0 $1,131,782 $0 $20,674,753 RECONCILIATION STATEMENT - CHANGES IN INDEBTEDNESS Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: San Jacinto Project Area Tax Year 2009-2010 Reconciliation Dates: From July 1, 2008 To June 30, 2009 . Page 3 of 3 Debt Identification: A B C D E F Outstanding Debt All Beginning Indebtedness Adjustments Amounts Paid Against Indebtedness, from: Remaining Balance (A+B-C-D-E) SOI, page and line: Brief Prior Yr Current Yr Description Increases (Attach Explanation) Decreases (Attach Explanation) Tax Increment Other Funds 3 NEW Line NEW Pg 2 Line L Pass -through with Mt. San Jac. College -Original $0 $340,000 $20,773 $22,959 $0 $296,268 Pg NEW Line NEW Pg 3 Line A Pass -through with County Super. Schools - Original $0 $357,000 $8,577 $36,566 $0 $311,857 Pg NEW Line NEW Pg 3 Line B Pass -through with San Jac. Res. Cons. Dist. - Original $0 $2,040 $0 $253 $0 $1,787 Pg NEW Line NEW Pg 3 Line C Education Revenue Augmentation $0 $29,350 $0 $29,350 $0 $0 Pg 2 Line J Pg 3 Line D 2005 $9.3MTax Allocation Bonds $15,545,859 $0 $0 $578,709 $0 $14,967,150 Pg NEW Line NEW Pg 3 Line E County Administrative Fees $0 $1,769,000 $0 $61,108 $0 $1,707,892 Pg NEW Line NEW Pg 3 Line F Debt Service Overhead & Admin $0 $9,280,000 $0 $320,383 $0 $8,959,617 Pg NEW Line NEW Pg 3 Line G Projects Overhead & Admin $0 $24,360,000 $0 $842,036 $0 $23,517,964 g NEW ine NEW Pg 3 Line H Projects $0 $1,663,942 $0 $1,663,942 $0 $0 Pg Line Pg Line $0 Pg Line Pg Line $0 Pg Line Pg Line $0 Pg Line Pg Line $0 TOTAL- THIS PAGE $15,545,859 $37,801,332 $29,350 $3,555,306 $0 $49,762,535 RECONCILIATION STATEMENT - Description of Adjustments Page 1 of 1 Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: San Jacinto Project Area Tax Year 2009-2010 Reconciliation Dates: From July 1, 2008 To June 30, 2009 . RECON Sheet, Pg and line: Description of Adjustments Indebtedness Pg 2 Line J Pass -through with City of San Jacinto - Original - discovered with AB1389 reporting during year, statutory $1,496,000 Pg 2 Line K Pass -through with City of San Jacinto Lighting - Original - discovered with AB1389 reporting during year, statutory $110,500 Pg 2 Line L Pass -through with Mt. San Jacinto College - Original - discovered with AB1389 reporting during year, statutory $340,000 Pg 2 Line L Pass -through with Mt. San Jacinto College - Original - payment made to ERAF, as required byAB1389 ($20,773) Pg 3 Line A Pass -through with County Superintendent of Schools - Original - discovered with AB1389 reporting during year, statutory $357,000 Pg 3 Line A Pass -through with S.J. Basin Resource Conservation District - Original - payment made to ERAF, as required by AB1389 ($8,577) J Pg 3 Line B Pass -through with S.J. Basin Resource Conservation District - Original - discovered with AB1389 reporting during year - statutory $2,040 Pg 3 Line C Educational Revenue Augmentation - payments made as required by AB1389, instead of to Local Educational Agencies $29,350 Pg 3 Line E County Administrative Fees - adjustment to match projections $1,769,000 Pg 3 Line F Debt Service Overhead & Admin - adjustment to match projections $9,280,000 Pg 3 Line G Projects Overhead & Admin - adjustment to match projections $24,360,000 Pg 3 Line H Projects - adjustment to match expenditures for 08/09 $1,663,942 Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line TOTAL- THIS PAGE $39,378,482 CALCULATION OF AVAILABLE REVENUES AGENCY NAME Redevelopment Agency of the City of San Jacinto PROJECT AREA San Jacinto Project Area TAX YEAR 2009-2010 RECONCILIATION DATES: JULY 1, 2008 TO JUNE 30, 2009 Beginning Balance, Available Revenues (See Instructions) 1 12,760 985 Tax Increment Received - Gross 2 6,099,077 All Tax Increment Revenues, to include any Tax Increment passed through to other local taxing agencies. All other Available Revenues Received (See Instructions) 3 110,495 Revenues from any other source, included in Column E of the Reconciliation Statement, but not included in (1-3) above 4 Sum of Lines 1 through 4 5 18,970,557 Total amounts paid against indebtedness in previous year. (D + E on Reconciliation Statement) 6 6,926,781 Available Revenues, End of Year (5-6) 7 12,043,776 FORWARD THIS AMOUNT TO STATEMENT OF INDEBTEDNESS, COVER PAGE, LINE 4 NOTES Tax Increment Revenues: The only amount(s) to be excluded as Tax Increment Revenue are any amounts passed through to other local taxing agencies pursuant to Health and Safety Code Section 33676. Tax Increment Revenue set -aside in the Low and Moderate Income Housing Fund will be washed in the above calculation, and therefor omitted from Available Revenues at year end. Item 4. above: This represents any payments from any source other than Tax Increment OR available revenues. For instance, an agency funds a project with a bond issue. The previous LOI included a Disposition Develoopment Agreement (DDA) which was fully satistied with these bond proceeds. The DDA would be shown on the Reconciliation Statement as fully repaid under the "other" column (CoI E), but with funds that were neither Tax Increment, nor "Available Revenues" as defined. The amounts used to satisfy this DDA would be included on line 4 above in order to accurately determine ending "Available Revenues." STATEMENT OF INDEBTEDNESS - CONSOLIDATED FILED FOR THE 2009 - 2010 TAX YEAR Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: Soboba Project Area Cover Page Balances Carried Forward From: Line Current Total Outstanding Debt Principal/Interest Due During Tax Year Fiscal Period - Totals (From Form A, Page 1 Totals) (1) $8,366,176 $5,917,889 (Optional) Post Fiscal Period - Totals (From Form B, Page 1 Totals) (2) $0 $0 Grand Totals (3) $8,366,176 $5,917,889 Available Revenues From Calculation of Available Revenues, Line 7 (4) $1,297,492 Net Requirement (5) $7,068,684 Consolidate on this form all of the data contained on Form A and B (including supplemental pages). Form A is to include all indebtedness entered into as of June 30 of the Fiscal Year. Form B may be filed at the option of the Agency, and is to include indebtedness entered into post June 30 of the Fiscal Year, pursuant to Health and Safety Code section 33675( c ) (2 ). This is optional for each Agency and is not a requirement for filing the Statement of Indebtedness. The Reconciliation Statement is to include indebtedness from From A only. Certification of Chief Financial Officer: Pursuant to Section 33675(b) of the Health and Safety Code, I hereby certify that the above is a true and accurate Statement of Indebtedness for the above named agency. Connie Rogers -Elmore Signature Interim Finance Director Date STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2009 - 2010 TAX YEAR Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: Soboba Project Area For Indebtedness Entered into as of June 30, 2009 Form A Page 1 of 1 Debt Identification Original Data Current Date Principal Term Interest Rate Total Interest Total Outstanding Debt Principal/Interest Due During Tax Year Low and Moderate Income Housing Fund (A) - Original Area 6/1994 $1,151,220 Until paid None Not applicable $3,406,664 $3,406,664 (B) Advances from City of San Jacinto 6/2008 $600,000 Until paid 6.00% $0 $600,000 $600,000 Pass -through with Eastern Municipal (C) Water District 6/1995 $18,581 Until paid None Not applicable $1,569,057 $1,569,057 (D) 1999 Tax Allocation Bonds 7/1999 $965,000 19 Yrs 6.10% $704,752 $267,788 $242,168 (E) County Administrative Fees 1984 Not applicable Annual None Not applicable $197,990 $6,000 (F) Debt Service Overhead & Admin 1984 Not applicable Annual None Not applicable $2,324,677 $94,000 (G) (H) ( I ) (J) Sub Total, This Page $8,366,176 $5,917,889 Totals Forward From All Other Pages $0 $0 Totals, Fiscal Year Indebtedness $8,366,176 $5,917,889 Purpose of Indebtedness: (A) Low and moderate housing set -aside required by Section 33334.2 of Health and Safety Code. (B) Advances of Project and Administrative Costs. (C) Tax sharing agreement. Amount computed based upon projection. (D) Lake Park/Main Street Bridge - RDA Project. (E) County Auditor -Controller Service Charge per SB 2557. (F) Overhead & Admin associated with Debt Service activities. (G) (H) ( I ) (J) STATEMENT OF INDEBTEDNESS - POST FISCAL YEAR INDEBTEDNESS ONLY FILED FOR THE 2009 - 2010 TAX YEAR Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: Soboba Project Area For Indebtedness Entered into as of June 30, 2009 , as of 10-01-2009 Form B Page 1 of 1 (Optional) Debt Identification (A) Original Data Current Date Principal Term Interest Rate Total Interest Total Outstanding Debt Principal/Interest Due During Tax Year (B) NONE (C) (D) (E) (F) (G) (H) (J) (K) (L) Totals, Post Fiscal Year Indebtedness 0 0 Purpose of Indebtedness: (A) (B) (C) (D) (E) (F) (G) (H) ( I ) (J) (K) (L) RECONCILIATION STATEMENT - CHANGES IN INDEBTEDNESS Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: Soboba Project Area Tax Year 2009-2010 Reconciliation Dates: From July 1, 2008 To June 30 2009 Page 1 of 1 Debt Identification: A B C D E F Outstanding Debt All Beginning Indebtedness Adjustments Amounts Paid Against Indebtedness, from: Remaining Balance (A+B-C-D-E) SOI, page and line: Brief Prior Yr Current Yr Description Increases (Attach Explanation) Decreases (Attach Explanation) Tax Increment Other Funds -1g 1 Line A Pg 1 Line A Low and Moderate Income Housing Fund - Orig Area $478,656 $3,038,673 $0 $110,665 $0 $3,406,664 Pg 1 Line B Pg 1 Line B Advances from City of San Jacinto $600,000 $0 $0 $0 $0 $600,000 Pg 1 Line C Pg 1 Line C Pass -through with Eastem Municipal Water District $323,831 $1,295,535 $0 $50,309 $0 $1,569,057 Pg 1 Line D Pg 1 Line D 1999 $965,000 Tax Allocation Bonds $352,975 $0 $24,480 $60,707 $0 $267,788 Pg NEW Line NEW Pg 1 Line E County Administrative Fees $0 $204,652 $0 $6,662 $0 $197,990 Pg NEW Line NEW Pg 1 Line F Debt Service Overhead & Admin $0 $2,418,000 $0 $93,323 $0 $2,324,677 Pg Line Pg Line Pg Line Pg Line 'OTAL-THIS PAGE $1,755,462 $6,956,860 $24,480 $321,666 $0 $8,366,176 TOTALS FORWARD $0 $0 $0 $0 $0 $0 GRAND TOTALS $1,755,462 $6,956,860 $24,480 $321,666 $0 $8,366,176 NOTE: This form is to reconcile the previous Statement of Indebtedness to the current one being filed. However, since the reconciliation period is limited by law to a July 1 - June 30 fiscal year period, only those items included on the SOI Form A is to be included on this document. To assist in following each item of indebtedness from one SOI to the next, use page and line number references from each SOI that the item of indebtedness is listed on. If the indebtedness is new to this fiscal year, enter "NEW" in the "Prior Yr" page and line columns. Column F must equal the current SOI, Form A Total Outstanding Debt Column. RECONCILIATION STATEMENT - Description of Adjustments Page 1 of 1 Name of Redevelopment Agency: Redevelopment Agency of the City of San Jacinto Name of Project Area: Soboba Project Area Tax Year 2009-2010 Reconciliation Dates: From July 1, 2008 To June 30, 2009 . RECON Sheet, Pg and line: Description of Adjustments Indebtedness Pg 1 Line A Low and Moderate Income Housing Fund - adjustment to match projections $3,038,673 Pg 1 Line C Pass -through with Eastern Municipal Water District - adjustment to match projections $1,295,535 Pg 1 Line D 1999 $965,000 Tax Allocation Bonds - adjustment to actual, recalculated principal and interest remaining ($24,480) Pg 1 Line E County Administratine Fees - adjustment to match projections $204,652 Pg 1 Line F Debt Service Overhead & Admin - adjustment to match projections $2,418,000 Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line Pg Line TOTAL- THIS PAGE $6,932,380 CALCULATION OF AVAILABLE REVENUES AGENCY NAME Redevelopment Agency of the City of San Jacinto PROJECT AREA Soboba Project Area TAX YEAR 2009-2010 RECONCILIATION DATES: JULY 1, 2008 TO JUNE 30, 2009 Beginning Balance, Available Revenues (See Instructions) 1 1,040,210 Tax Increment Received - Gross 2 553,325 All Tax Increment Revenues, to include any Tax Increment passed through to other local taxing agencies. All other Available Revenues Received (See Instructions) 3 25,623 Revenues from any other source, included in Column E of the Reconciliation Statement, but not included in (1-3) above 4 Sum of Lines 1 through 4 5 1,619,158 Total amounts paid against indebtedness in previous year. (D + E on Reconciliation Statement) 6 321,666 Available Revenues, End of Year (5-6) 7 1,297,492 FORWARD THIS AMOUNT TO STATEMENT OF INDEBTEDNESS, COVER PAGE, LINE 4 NOTES Tax Increment Revenues: The only amount(s) to be excluded as Tax Increment Revenue are any amounts passed through to other local taxing agencies pursuant to Health and Safety Code Section 33676. Tax Increment Revenue set -aside in the Low and Moderate Income Housing Fund will be washed in the above calculation, and therefor omitted from Available Revenues at year end. Item 4. above: This represents any payments from any source other than Tax Increment OR available revenues. For instance, an agency funds a project with a bond issue. The previous LOI included a Disposition Develoopment Agreement (DDA) which was fully satistied with these bond proceeds. The DDA would be shown on the Reconciliation Statement as fully repaid under the "other" column (Col E), but with funds that were neither Tax Increment, nor "Available Revenues" as defined. The amounts used to satisfy this DDA would be included on line 4 above in order to accurately determine ending "Available Revenues." Cover Page Statement of Pass -Through Obligations for Redevelopment Project Areas Name of Agency ca,t ;e„c./ Filed with the County Auditor of ~ +"= <( County Date Submitted to County: Agency's Director's Signature: Print Name ' ' t ` Title: Ac,6t Email: -t' 4 I im f-71kecu7 (,C blvcc-{ur Phone: ( P ` ') ' - ext Report Preparer Contact Information: Print Name: : c , Email: -I- Or, (t 6>5e, ;<<_,:, v c.:. � Phone: ( '. ext County Use Only Date Received From Agency Date County Granted Concurrence If No Concurrence Granted, Date Returned to Agency Rev 1 Rev 2 Rev 3 Reviewed By: Date Forwarded to SCO: Email: Phone: State Use Only Date Received From County Date SCO Concurred With County If No Concurrence Granted, Date Returned to County SCO Staff Assigned to Review Rev 1 Rev 2 Note: Each time the agency revises their report, it must go through the county auditor's office to obtain concurrence and the new concurrence date must be entered. County Name Riverside Redevelopment Agency Redevelopment Agency of the City of San Jacinto Legislative Body Name City of San Jacinto SCO Unique ID Number 13983379400 Required To Report? Yes Project 1 San Jacinto Redevelopment Project Project/Amendment Name County Tax ID Date Established (MM/DD/YYYY) Location Is this Project Area subject to AB 1290 passthrough payments? Yes/No Date Amended (MM/DD/YYYY)** Purpose of Amendment Ordinance Number of Amendment Original Time Limit (Date) (MM/DD/YYYY) Amended Time Limit (Date) (MM/DD/YYYY) Original Tax Increment Limit (Dollar) Amended Tax Increment Limit (Dollar) Original Debt Limit (Dollar) Amended Debt Limit (Dollar) Community Election to Receive a Portion of Tier 1, Yes or No Resolution # for Election First Adjusted Base Year First Adjusted Base Assessed Valuation Is this Project Subject to Statutory Passthroughs? Yes Adjusted Base Year (SB 211) Adjusted Base Assessed Valuation (SB 211) Are there pre-existing Contractural Passthrough Agreements? ** Include ONLY the first amendment that provided for any of the following: 1. Extended the life of the project area (effectiveness of plan) 2. Increased the Tax Increment Cap 3. Increases or Eliminates the Debt Issuance Limit 4. SB 211 amendment ** Do not include other amendments! Area 02-2803 06/28/1983 San Jacinto No 04/07/2005 SB 211 #05-07 06/28/2023 06/28/2026 $50,000,000 $2, 269, 900, 000 $20,000,000 $480,000,000 No No 2003-04 $248, 840, 523 Yes Yes Project 2 San Jacinto Amended Redevleopment Project Area 02-2805 12/28/1993 San Jacinto No 04/07/2005 SB 211 #05-07 12/28/2033 12/28/2036 $2,269,900,000 $480,000,000 No 2013-14 Yes No Project 3 Soboba Springs Redevelopment Project Area 02-2804 12/27/1983 Soboba Springs, San Jacinto No Yes Project 4 Project 5 Fiscal Yea AB Project/Amendment Name County Tax ID Date Established Subject to AB 1389? (Yes/No) Accumulated Tax Increment throu.h June 30, 2008 Fiscal Year Data Gross Tax Increment Received During the Fiscal Year 290 Tier I Tax Increment 3,913,416.00 21 AB 1290 Tier II Assessed Valuation 22 Growth Over Adjusted Base Value 23 24 25 26 27 28 29 30 31 32 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Pass -Throu Non Basic Aid Affected Taxing Agency Name and Type Name of Affected Taxing Agency San Jacinto Unified County of Riverside General County of Riverside Library San Jacinto Cemetery District Enter Taxing Agency Code: S = School District C = Community College District E = Office of Education or Special Education 0 =All Other F = ERAF Fund S 0 0 0 Riverside County Flood Control & Wald 0 Valley -Wide Recreation & Park District 0 Eastern Municipal Water District 0 Mt. San Jacinto CommunityCollege C County of Riverside Superintendent of E San Jacinto Basin Resource Conserve 0 City of San Jacinto 0 City of San Jacinto Lighting 0 Contractural and Other Payments Only Contractual Payments Per 33401 610,914.00 501,361.00 53,719.00 7,447.00 66,578.00 16,560.00 200,475.00 7,054,00.: Others - Include 2% Growth on Payments Per Base Payments 33445, 33445.5, Only 33445.6, or (Pre AB 1290 33446 (Memo 33676) Only) Basic Aid Basic -Aid Payments Per 33676 h Distribution Detai AB 1290 Non Basic Aid Tier II Total Pass- Total Pass - Through Payments Required 33607.5, 33607.7 10,367.00 10,702.00 61.00 44,024.00 3.269.00 66,423.00= Through Payments Required 33607.5, 33607.7 Amount of 33607.5 or 33607.7 Payments Reduced Per 33445, 33445.5. 33445.6, 33446 Net Amount Due Affected Taxing Agency Prior to Subordination 33607.5, 33607.7 Subordination -AB 1290 Only Amount of Pass Through Property Tax Payments Share of Deferred Per Subordination Subordination (LEAS Only) Facilities Share of (LEA) or Other Agency Share of Subordination Dale Deferred Payments Will be Made or Were Made Pass -Through Payments Required, Net of Deferrals (Memo Only) 0 Ii5Z5,477;U11= 2,165.00 33607.5, 33607.7 Current Obligation Dale Last Pass -Through Payment Cash Payments Reported it Through Column U w: June 30, 2009 Made 0 2 PassthrouRh Payments Made Detail Payments Actually Made Basic Aid Only Subordination Payments Only 13 Facilities (LEA Only) or Other Agency Portion Property Tax Date Last Prior Year of Prior Year Basic -Aid 33676 Share of Payment Overpayments Overpayments Current Subordination Reported in Applied Against Applied Against Obligation Pass. Payments for Column W was Current Year Current Year Through Prior Made Obligation Obligation Payments Subordinations 4 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Facilities Share of (LEA) or Other Agency Share of Subordination Payments for Prior Subordinations 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 53 54 55 Outstanding Obligations 33607.5,33607.7 Property Tax Share of Local Non Basic -Aid Education 33607.5, 33607.7 Agency Unpaid Payments Obligation ,g'SVIZL,.!kL§alit?"41 'zIkaffMerl,M .p.017t-R.NIZAR WIfLt3;,:ag00 fA,*-13:t KA; Property Tax Share of Current Year Outstanding Obligation (Memo Only) MrOMMION: WE'w.,ZTV.S4 #DIV/01 Facilities Share of (Local Education Agencies) or Other Agency Share of Outstanding Obligation (Memo Only) waW*R-Armo Wava,:afia.,4g g'gt.(KOC.W.M7 ;024=-00 69,00. :tafortgm.v., 30 Basic -Aid 33676 Current Year Outstanding Obligation 5:1$44'N.V.VQ4 SitAYAMLIP.i. ATOLX:WAf.TS: IMTAitw. .:14,ijAW.4.ksaVa.t Mrein-Y„5.041.i , 3LL. 6,YM 200849 Net Outstanding Obligation Net of Deferrals 33607.5, 33607.7 Only '7'gfr4MUNW Final Payments of Undistributed PassthrouglObligations Detail AS OF JUNE 30, 2009 Remaining Final Date Unpaid Remaining Outstanding Outstanding Obligations From Obligation is to Prior Years be Paid Agency's Plan to Pay Outstanding Obligations Pa ments Made AfterFilin. of Re ort Post October 1 2009 ONLY Total Amount of Amount of Basic Payments Made Aid Payments Against Made Against Outstanding Outstanding Obligations Obligations Most Recen Date of Payment(s) 10,367.03 0,702.00 61.00 44,024.00 3,269.00 Amount of Local Amount of Local Educational Educational Agency Payment Agency Payment to Pay to Local to Pay Directly to Educational County ERAF Agency V„-q,4,* Rem Un Outsl Obli L. 56 57 2165 3299_1 L 2 3 4 5 A Project/Amendment Name County Tax IC7 Date Establishe Subject to AS 1389? (Yes/No) Accumulated Tax Increment ihro h June 30, 2008 6 13 Fiscal Year Fiscal Year Data .7.(7(IYE7. 15 16 17 18 19 20 21 AB 1290 Tier II Assessed Valuation 22 Growth Oyer Adjusted Base Value Gross Tax Increment Received During the Fiscal Year Name of Affected Taxing Agency 022800 2 9:3 Pass-Throu h Distribution Detail Non Basic Aid AB 1290 Non Basic Aid Affected Taxing Agency Name and Type Cxntractural and Other Payments Only Basic Aid Tier I AB 1290 Tier I Tax Increment 53 54 55 56 57 Enter Taxing Agency Code: 5 School District C = Community College District E Office of Education or Special Education 0 = All other Pc ERAF Fund Statutory payments do not begin until FY 2014-15 Contractual Payments Per 33401 2% Growth on Base Payments Only (Pre AB 1290 33676) Others - Include Payments Per 33445. 33445 5. 33445.6, or Basic -Aid 33446 (Memo Payments Per Only) 33575 iti Tier 11 Total Pass- Total Pass - Through Through Payments Payments Requited Required 33607.5, 33607 7 33607.5, 33607.7 Amount of 33607.5 or 33667.7 Payments Reduced Per 33445, 33445.5, 33445 6, 33446 Net Amount Due Affected Taxing Agency Prior to Subordination 33607.5, 33607 7 M Amount of Pass Through Payments Deferred Per Subordination 11111111:11111111111111E.=MIEMINI •,t..(„,:,iii.t:,,,i,.,i.i•.,,,..tti,t,t,,.t.tt„,i;,.„.v.e.;,,t,(t.',.,•,',itiitlit,ti;.li:ti,,f.n5i,i,,t,iiii,.:J.i'.'„::tii:tii,11!:'1:5i.1(ittit':„,i3O:.:iti!itilitiiq-ilit,P,(,i(iiiti.r;P,iitiiit,t,•:!t,ii.tt,ii„,.it,,„,., .. . . . _ . • , - ,,...,,,,.......,,• - ... .. ..... . ... ..., ................. ........... ,,, i•.•••••it.,....„......,...„.•.....„..... ,.....,,,. y. - ...,•-•,,,..., - ... .... . . . . , . ....pp....-. ._ .. ............. . .......... ,......... rip.,...,,,- . ....... ,„ .. ,..... ......... AF AG 2 10 ... ... . .. .......... - -,.......•••-i -....,.., ....... ..-........... • Passthrough •••• -•,.....P, ..... ...... .. Payments Made Detail ..__, 11 12 Subordination - AB 1290 Only Pass -Through Payments Required, Net of Deferrals (Memo Only) Payments Actually Made Property Fax Share of Local Education Agency Pa ments Non Basic Ald Basic Ald Only Subordination Payments Only 13 Properly Tax Share of Subordination (LEAs Only) Facilities Share of (LEA) or Other Agency Share of Subordination Dale Deferred Payments Will be Made or Were Made 33607.5, 33607.7 Current Obligation Pass -Through Cash Payments Through June 30, 2009 Date Last Payment Reporied in Column U was Made 33607,5, 33607.7 Current Obligation Payments Made Between July 1, 2009 and October 1, 2009 Date Last Payment Reported in Column W was Made Prior Year Overpayments Applied Against Current Year Obligation Facilities (LEA Only) or Other Agency Portion of Prior Year Overpayments Applied Against Current Year Obligation Basic -Aid 33676 Current Obligation Pass Through Payments Property Tax Share of Subordination Payments for Prior Su rdinalns Facilities Share of (LEA) or Other Agency Share of Subordinetion Payments for Prior Subordination Non Basic -Aid 33607.5, 33607.7 Unpaid Obligation 14 18 20 21 2 2 26 27 20 2 Jo 32 33 3 .----, 3839 4 4 4 --- 4 4 51 ff-,;;X g,, k 17 PP, ' ,... ' r we, ,... .. :Pt19 3 11E, „ ...:. F,.?i,1AA'. , , , ii. - vt, -rep, ,. •.',:,,s,;.,. , 114^ 'X 31:71M ,'" !, s''.7.77,,:',.:::::7,7,7Z7.77.77-V.:hr', 7.77777:-Z7 7,7;:Nai.';72,2q Z7aTa7:,-.71i: 77.7777.L 727,77.777 MM:m7,, ',,q,,,E,',4=;,-.,!'3,g',137 53 54 65 56 57 2,165 DO #011//01 265 3299 AGENDA ITEM 5 . October 15, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Mike Emberton, Public Works Director Via Barry Mulcock, Public Works Streets Supervisor SUBJECT: Presentation of H1N1 Flu Awareness DETAILS: Riverside County Department of Public Health will provide a brief overview of the recent outbreak of the H1N1 Flu virus, vaccine availability, and preventative measures. A representative from the Department of Public Health Office of Dr Eric K Frykman, MD, MBA, will be performing the presentation. Below is a brief overview of the mentioned program. H1N1 Virus (swine flu): The State of California and Riverside County in general, has experienced a substantial number of reported cases of individuals infected with the H1N1 virus. A considerable percentage of these H1N1 cases are fatal, mostly in pregnant women, young children, or older adults — 65 years and older, The City of San Jacinto is interested in the pertinent information and prevention of such viruses that will affect our residents, businesses, employees, and safety personnel. Importantly, it is the determination of the City of San Jacinto to assist and work collaboratively with all health organizations in the prevention of such epidemics. The presentation will inform our Council members and staff of prevention and infection projections on a countywide basis, including vaccination availability and disbursement. FISCAL IMPACT: None ATTACHMENTS: None Page 1 of 1 AGENDA ITEM .5-2 October 15, 2009 TO: The Honorable Mayor and Members of the City Council FROM: Barry McClellan, City Clerk SUBJECT: Calendar Dates for City Council and Redevelopment Agency Meetings during November and December RECOMMENDATION: Staff recommends that the City Council, by motion, direct staff as desired. DISCUSSION: The second meeting in November will be on the 19th, which is exactly five days before the Thanksgiving holiday. City Hall will now be closed Wednesday, November 25th and Thursday, November 26th, as well as, Friday, November 27t . Therefore, City staff would have no time between council meetings to prepare the December 3r`t agenda items, which would be due on Tuesday, November 24th and allow time for approval and production of the agendas. Also, staff recommends the December 17th meeting be adjourned to the first meeting in January, 2010 because of the holidays. In the past three years the city council and redevelopment agency have been dark for the second meeting in December. The first meeting in December, which would be December 3`d, could be adjourned to December 10th and would still allow Planning Commission to meet on December 3`d or December 17th. Since the city council and redevelopment agency have gone dark on the second meeting the last three years, this is a viable option. The first meeting in January 2010 is on the 7th and would not be impacted by adjusting the meeting date from December 3rd to December 10th. Page 9 of 2 ALTERNATIVES: 1) Adjourn the December 3, 2009 meeting, to the 10th; thereby movin the planning commission meeting to either the first or third Thursdays (3` and 17th) respectively 2) Keep the December 3rd and 17th meetings as scheduled FISCAL IMPACT: None ATTACHMENTS: • Calendar pages for November, December, January Page 2 of 2 November 2Q�9 November 2009 5 M. T W T F 5 1 2 3 4 5 6 "7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 29" .25 26 27 28 29. 30 December 2009 S "M "T W T F S 1 2 3 4 5 6 7 "8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Monday Tuesday Wednesday 9 10 24 Thursday Friday Sat/Sun 13 18 19 20 25 26 27 November 1 14 15 21 22 28 29 December 2009 December 2009 S M TWTFS January 2010 SMTW T F 5 1 2 3 4. 5 1 2 6 7 , 8 9 10 11 12 3 4, 5 6 7 8. ' 9 13 14 15 16 17 18 19 10 11 12 1314 15 16 20 21 22 . 23 24 25 26 17 18 19 20 21 22 23 27 28 29 30 -31 24 25 26 27 28 29 30 31 20 4 6 7 8 '9 10 11 12" 13 14 15 16 17 18 19 21 22 23 31 24 25 26 27 28. 29.. 30 February 2010 T W T F 2 =3 4 5" 6 7 P 8 9 :30 I1 12 13 19 15 16 17'18 19`. 20 21 22 23 :24 25 ;26 27 January 1, 2010_ 29. Sat/Sun' 30 g'' ; AGENDA ITEM RDA 5.3 October 15, 2009 TO: The Honorable Mayor and Members of the Redevelopment Agency FROM: Tim Hults, Assistant City Manager SUBJECT: Consideration of approval of Resolution approving the proposed Preliminary Report, Draft Owner Participation Rules and Draft Method of Relocation for the proposed Amended and Restated Redevelopment Plan for the Merged San Jacinto Redevelopment Project Area RECOMMENDATION: Staff recommends that the Redevelopment Agency approve the Resolution and authorize staff to make available the Preliminary Report, Draft Owner Participation Rules and Draft Method of Relocation prepared in connection with the proposed Amended and Restated Redevelopment Plan for the Merged San Jacinto Redevelopment Project Area. BACKGROUND: The Agency currently has two separate redevelopment project areas known as the San Jacinto Redevelopment Project Area, and the Soboba Springs Redevelopment Project Area (collectively, the "Existing Project Areas" or "Project Areas"). The San Jacinto Redevelopment Project Area was originally adopted June 28, 1983, and subsequently amended six times. The Soboba Springs Redevelopment Project Area was adopted on December 28, 1983, and has been amended once for compliance with changes in the Redevelopment Law. The Agency's authority to use eminent domain in the Soboba Springs and San Jacinto Project Areas expired in 1995 and 2005, respectively. The Redevelopment Plan for the original San Jacinto Redevelopment Project Area, as adopted in 1983, is effective until June 28, 2023. The Redevelopment Plan for the area added to the San Jacinto Redevelopment Project Area by Amendment No. 1 is effective until December 28, 2033. The effective time period of the Redevelopment Plan for the Soboba Springs Redevelopment Project Area expires on November 1, 2028. The Agency has initiated the process to consider the following actions: Page 1 of 5 1. Amend the existing Redevelopment Plans for the San Jacinto Redevelopment Project to merge it with the Soboba Springs Redevelopment Project Area for financial reasons. More specifically, amending the Redevelopment Plans for the existing San Jacinto and Soboba Springs Project Areas to combine the tax increment and outstanding bonded limit so that the tax increment and outstanding bonded indebtedness limits for the proposed Merged Project Area are those previously established for the existing San Jacinto Project Area. This amendment will have the effect of increasing both the tax increment and outstanding bonded indebtedness limits for the Soboba Springs Project Area; 2, Update and expand the capital improvement projects list for the proposed Merged San Jacinto Redevelopment Project; 3, Adopt a single Merged, Amended and Restated Redevelopment Plan to cover the proposed Merged Project Area; and 4. Re -instate eminent domain authority in the San Jacinto Project Area for a 12 year period commencing with the , effectiveness of the ordinance adopting the Amended and Restated Redevelopment Plan (if adopted), with the prohibition that the Agency cannot acquire by eminent domain any single family owner occupied home pursuant to Section 19 of Article 1 of the State of California Constitution (Proposition 99). (Eminent domain authority will be applicable within the Existing San Jacinto Project Area and not in the Soboba Springs portion of the Merged Project Area. 5. Eliminate the time limit to incur debt for the Soboba Springs Redevelopment Project pursuant to SB211 Statutes of 2002; and 6. Adopting a single Merged, Amended and Restated Redevelopment Plan to cover the proposed Merged Redevelopment Project Area. DISCUSSION: As indicated above, the Redevelopment Agency has undertaken steps to amend and merge the San Jacinto and Soboba Springs Redevelopment Project Areas. To this end, a draft Amended and Restated Redevelopment Plan for the Merged San Jacinto Redevelopment Project was prepared and approved by the Agency on July 2, 2009. The California Community Redevelopment Law, California Health and Safety Code 33000 et seq. ("Redevelopment Law") requires that the Redevelopment Agency prepare a Preliminary Report containing various sections such as the reasons for amending the project areas and a description of physical and economic blighting conditions remaining in the project areas. Page 2 of 5 The Redevelopment Law also requires the following: 1) the adoption of rules governing participation for property owners, operators of businesses, and business tenants including provisions to extend reasonable preferences to persons engaged in business ("Owner Participation Rules") in the merged San Jacinto and Soboba Springs Redevelopment Project Area ("Merged Project Area"); and 2) preparation of a feasible method or plan for the relocation of families or persons that may be temporarily or permanently displaced from housing facilities in the ("Merged Project Area"), and for nonprofit local community institutions to be temporarily or permanently displaced from the facilities actually used for the institutional purposes in the Merged Project Area ("Method of Relocation"). Both the Owner Participation Rules and Method of Relocation are in draft form, with the final versions of the documents scheduled for adoption in June 2010. The attached Redevelopment Agency Resolution approves these documents and authorizes staff to make the documents available for public inspection and review. The resolution also directs staff to complete transmittals required by the Redevelopment Law. Preliminary Report The Redevelopment Law requires the preparation of a Preliminary Report containing the following information: 1. Reasons for the amendments/merger; 2. Description of physical and economic conditions remaining in the project areas; 3. Urbanization analysis; 4. Preliminary Assessment of the proposed method of financing the redevelopment of the project area, including an assessment of the economic feasibility of the project and the reasons for the continued use of tax increment financing and the proposed increase in tax increment and bonded indebtedness caps; and 5. Description of proposed projects proposed by the Agency and how these projects will address continued redevelopment of the Merged Project Area. The Preliminary Report will be transmitted to all affected taxing entities pursuant to Redevelopment Law Section 33344.5 and 33344.6. Page 3 of 5 Owner Participation Rules In general, owner participation rules provide property owners with a reasonable method to identify their interest in owner participation and redevelopment of their property as well as set a procedure by which the owner may submit development proposals to an agency. Such rules set up a process by which owner's proposals are given timely consideration by a redevelopment agency and sets standards for the submittal of complete proposals by owners. Agency staff is proposing that instead of maintaining the three separate and outdated Owner Participation Rules applicable to original San Jacinto Redevelopment Project Area, the area added to the San Jacinto Redevelopment Project by the 1996 amendment, and the Soboba Springs Redevelopment Project Area, it is prudent to adopt a new, single set of Owner Participation Rules. The proposed Owner Participation Rules would to be applicable to the Redevelopment Plan for the Merged San Jacinto Redevelopment Project Area. Agency staff and consultant have prepared updated "Owner Participation Rules for Property Owners, Operators of Businesses, and Business Tenants" in accordance with Section 33345 of the Redevelopment Law. Method of Relocation Section 33411 of the Redevelopment Law requires that all redevelopment agencies must prepare a feasible method or plan for the relocation of families or persons to be temporarily or permanently displaced from housing facilities, and for nonprofit local community institutions temporarily or permanently displaced from the facilities actually used for the institutional purposes in a redevelopment project area. Therefore, the Agency is required to approve and adopt a feasible method or plan of relocation for the Merged Project Area in order to comply with the provisions of the Redevelopment Law. The Agency currently has three separate Methods of Relocation applicable to the original San Jacinto Redevelopment Project Area, the area added to the San Jacinto Redevelopment Project by the 1996 amendment, and the Soboba Springs Redevelopment Project Area. Due to the fact that these project areas are being merged, and that the documents prepared at the time each area was adopted are likely obsolete and require updating, one current Method of Relocation has been prepared to supersede and replace all previous documents. While it is not anticipated at this time that the Agency will undertake a project that would require relocation of residents or businesses, it may be necessary at some time in the future. If relocation activities are necessary and are undertaken, the Agency would handle those on a case -by -case basis and pursuant to all applicable laws. Page 4 of 5 The proposed new Method or Relocation provides (as required by Section 33411.1 of the Redevelopment Law) that the Agency shall not displace persons or families of low- and moderate -income unless and until there is a suitable housing available and ready for occupancy by the displaced person or family at rents comparable to those at the time of their displacement. Further, relocation housing must be decent, safe, sanitary and suitable to their individual needs; located in areas not less desirable than the Merged Project Area; with comparable access to public utilities and commercial facilities. The relocation area must also be reasonably accessible to their places of employment and priced within their financial means. The proposed new Method of Relocation also requires the Agency to adhere to the State Relocation Law (Govemment Code 7260 through 7277) and follow the California Relocation Assistance and Real Property Acquisition Guidelines ("State Guidelines") as established in the California Code of Regulations, Title 25, and Chapter 6. ALTERNATIVES: • Adopt the attached Resolution, a Resolution of the Redevelopment Agency of the City of San Jacinto approving the Preliminary Report, Draft Owner Participation Rules and the Draft Method of Relocation for the Proposed Amended and Restated Plan for the Merged San Jacinto Redevelopment Project Area and Directing that such Documents be Made Available for Public Inspection, Review and Comment • If the City Council elects not to pursue the merger of the San Jacinto and Soboba Springs Redevelopment Project Areas, the resolution is not required. FISCAL IMPACT: There is no fiscal impact with the adoption of the resolution and approving the Preliminary Report, the Draft Owner Participation Rules and the Draft Method of Relocation. ATTACHMENTS: ■ Resolution No. ■ Preliminary Report ■ Draft Owner Participation Rules ■ Draft Method of Relocation Page 5of5 lv STATE OF CALIFORNIA ) ORESOLUTION NO. COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO, CALIFORNIA, APPROVING THE PRELIMINARY REPORT, DRAFT OWNER PARTICIPATION RULES AND THE DRAFT METHOD OF RELOCATION FOR THE PROPOSED MERGER AND AMENDMENTS TO THE SAN JACINTO AND SOBOBA SPRINGS REDEVELOPMENT PLANS AND DIRECTING THAT SUCH DOCUMENTS BE MADE AVAILABLE FOR PUBLIC INSPECTION, REVIEW AND COMMENT WHEREAS, the Redevelopment Agency of the City of San Jacinto ("Agency") has prepared an Amended and Restated Plan for the Merged San Jacinto Redevelopment Project Area ("Merged Plan"); and WHEREAS, Section 33344.5. of the California Community Redevelopment Law, Health and Safety Code Section 33000, et. seq. ("CRL") requires the Agency to transmit a Preliminary Report on the proposed Merged Plan to all affected taxing entities within the Merged San Jacinto Redevelopment Project; and WHEREAS, the CRL provides that the Agency shall adopt rules to implement the operation of business reentry preference in connection with the Amended and Restated Plan for the Merged San Jacinto Redevelopment Project Area ("Merged Project Area") and prepare a feasible method for relocation of families or persons relocated; and WHEREAS, the CRL Section 33345 provides that the Agency shall adopt and make available for public inspection rules to implement the operation of owner participation in connection with the Amended Plan; and WHEREAS, CRL Section 33411 provides that the Agency shall prepare a feasible method or plan for relocation of all of the following: A. Families and persons to be temporarily or permanently displaced from housing facilities in the project area; and B. Nonprofit local community institutions to be temporarily or permanently displaced from facilities actually used for institutional purposes in the project area; and WHEREAS, CRL Section 33352(f) requires that the Report submitted to the City Council in connection with the Merged Plan include a method or a plan for relocation of families and persons to be temporarily or permanently displaced from the Merged Project Area; and WHEREAS, the Agency desires to accept and approve the Preliminary Report, Draft Owner Participation Rules and Draft Method of Relocation applicable to the Merged Project Area. NOW, THEREFORE, BE IT RESOLVED determined and ordered by the Redevelopment Agency of the City of San Jacinto that: SECTION 1. The Preliminary Report on the Amended and Restated Redevelopment Plan for the Merged San Jacinto Redevelopment Project, Draft Owner Participation Rules and Draft Method of Relocation are attached as Exhibit A, Exhibit B and Exhibit C respectively, and by reference made a part hereof, are hereby approved. SECTION 2. The Executive Director of the Agency shall make the Preliminary Report, Draft Owner Participation Rules and Draft Method of Relocation for the Merged San Jacinto Redevelopment Project Area available for public inspection, review and comments. SECTION 3. Staff is authorized and directed to make such transmittals as may be required pursuant to Sections 33344.5 and 33451.5 of the CRL. SECTION 4. Staff is hereby authorized to prepare a Report to City Council and the final text of the Amended and Restated Redevelopment Plan and other documents as required by Section 33352 and 33485 -33489 of the CRL. PASSED, APPROVED and ADOPTED this 15th day of October, 2009 by the following vote: Ayes: Nays: Absent: Abstain: City of San Jacinto by Dale Stubblefield, Mayor ATTEST: Barry McClellan, City Clerk EXHIBIT A PRELIMINARY REPORT ON THE AMENDED AND RESTATED REDEVELOPMENT PLAN FOR THE MERGED SAN JACINTO REDEVELOPMENT PROJECT AREA REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO Preliminary Report for the Amended and Restated Redevelopment Plan for the Merged San Jacinto Project Area (Amendment 7 to the Redevelopment Plan for the San Jacinto Project Area and Amendment 2 to the Redevelopment Plan for the Soboba Springs Project Area) September 21, 2009 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT TABLE OF CONTENTS INTRODUCTION 1 Introduction 1 Report Contents 4 Plan Amendment Process 4 SECTION A. REASONS FOR THE AMENDMENTS 6 Project Area Location & Description 6 Reasons for Amending the Redevelopment Plan 7 SECTION B DESCRIPTION OF THE PHYSICAL & ECONOMIC CONDITIONS EXISTING IN PROPOSED MERGED PROJECT AREA 10 Background 10 "Old" Blight Definition 14 "New" Blight Definition 15 Physical Blight 16 Economic Blight 16 Study Approach & Methodology 17 Physical Blighting Conditions in San Jacinto Project Area 17 Dilapidation and Deterioration 20 Building Age and Lead Based Paint 36 Poorly Constructed Additions /Substandard Exterior Building Materials 38 Outdoor Storage/Garbage/Debris 41 Economic Blighting Conditions in San Jacinto Project Area 44 Physical and Economic Conditions in the Soboba Springs Project Area 47 SECTION C DETERMINATION AS TO WHETHER PROPOSED MERGED PROJECT AREA IS PREDOMINANTLY URBANIZED 51 RSG SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT SECTION D PRELIMINARY ASSESSMENT OF THE PROPOSED METHOD OF FINANCING, INCLUDING THE ECONOMIC FEASIBILITY OF THE AMENDMENTS & REASONS FOR THE CONTINUED INCLUSION OF TAX INCREMENT AND THE PROPOSED INCREASE IN TAX INCREMENT AND BONDED INDEBTEDNESS CAPS 52 Sources Available to the Agency for Financing Redevelopment 52 Tax Increment Projections 54 Proposed Projects 59 Need to Merge Tax Increment Limit 59 Need to Merge Bonded Indebtedness Limit 60 Nexus Between Blight, Projects and Amended/Merged Limits 60 Summary 60 SECTION E DESCRIPTION OF THE SPECIFIC IMPROVEMENT PROJECTS THE AGENCY MAY PURSUE & DESCRIPTION OF HOW POTENTIAL PROJECTS WILL ADDRESS CONTINUING REDEVELOPMENT OF PROPOSED MERGED PROJECT AREAS 62 Overview 62 Community Development Programs 62 Public Infrastructure/Facility/Utility Improvements 64 Low- / Moderate- Affordable Housing Programs 69 RSG Introduction 1 INTRODUCTION The Redevelopment Agency of the City of San Jacinto ("Agency') has initiated the redevelopment plan amendment process to merge and amend the redevelopment plans for the San Jacinto Project Area and Soboba Springs Redevelopment Project Areas. The San Jacinto Redevelopment Project Area was originally adopted June 28, 1983. It has been amended six times. Amendment 1 was adopted on December 28, 1993, to add territory to the project area ("Amendment Area"). Amendment 2 was adopted on December 23, 1994, to accommodate changes in the California Health and Safety Code Section 33000, et. seq. ("Redevelopment Law"). Amendment 3 was adopted on February 20, 1996, to delete certain areas from the project area. Amendment 4 was adopted on April 7, 2005 to eliminate the time limit to incur indebtedness for the portion of the San Jacinto Redevelopment Project Area adopted in 1983 ("Original Area"). Amendments 5 and 6 were adopted on April 21, 2005 to extend the term of the Redevelopment Plan and the time limit to collect tax increment revenue for the Original Area pursuant to Sections 33681.9 and 33681.12 of the Redevelopment Law. The Soboba Springs Redevelopment Project Area was adopted on December 28, 1983. Amendment 1 was adopted on November 1, 1994 to accommodate changes in the Redevelopment Law. As proposed, Amendment 7 to the Redevelopment Plan for the San Jacinto Project Area and Amendment 2 to the Soboba Springs Project Area ("Amendments") would accomplish the following: 1) Amend the existing Redevelopment Plans for the San Jacinto and Soboba Springs Redevelopment Projects to merge the project areas for financial reasons. More specifically, amending the Redevelopment Plans for the existing San Jacinto and Soboba Springs Project Areas to combine the tax increment and outstanding bonded limit so that the tax increment and outstanding bonded indebtedness limits for the Proposed Merged Project Area are those previously established for the existing San Jacinto Project Area. This amendment will have the effect of increasing both the tax increment and outstanding bonded indebtedness limits for the Soboba Springs Project Area; 2) Update and expand the capital improvement projects list for the San Jacinto and Soboba Springs Redevelopment Projects; 3) Adopt a single Merged, Amended and Restated Redevelopment Plan to cover the Proposed Merged San Jacinto Redevelopment Project Area; 4) Re -instate eminent domain authority in the existing San Jacinto Project Area for a 12 year period commencing with the effectiveness of the ordinance adopting the Amended and Restated Redevelopment Plan (if adopted), with the prohibition that the Agency cannot acquire by eminent domain any single family owner occupied home pursuant to Section 19 of Article 1 of the State of California Constitution (Proposition 99). (Eminent domain authority will be applicable within the Existing San Jacinto Project Area and not in the Soboba Springs portion of the Merged Project Area); 5) Eliminate the time limit to incur debt pursuant to SB211 Statutes of 2002; and 6) Adopt a single Merged, Amended and Restated Redevelopment Plan to cover the Proposed Merged San Jacinto Redevelopment Project Area. The Amendments are being prepared in conformance with Redevelopment Law. Table i-1 on the following page summarizes the existing time and financial limits for the San Jacinto Redevelopment Project Area: SG 1 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Existing Redevelopment Plan Time and Financial Limits Table 1-1 San Jacinto Redevelopment Agency Redevelopment Area Time Limitations Financial Limitations Eminent Incur New Plan Domain Debt Duration Tax Increment Total Tax Total Outstanding Collection Increment Debt San Jacinto Project Area Original Area .Expired Eliminated' 6/28/20252 Amendment Area Expired 12/28/2013 12/28/2033 Soboba Springs Project Area Expired 12/27/2008 12/27/2028 6/28/20352 $ 2,699,000,000 $ 408,000,000 12/28/2043 12/27/2038 $5,000,000 $5,000,000 Source: San Jacinto Redevelopment Agency 'On April 7, 2005, City Council and Agency adopted Amendment No. 4 (Ordinance No. 05-07), which pursuant to SB 211 Statutes at 2002 eliminated the time limit to incur debt. Time limit to incur debt is time limit on plan duration. 2 City Council and Redevelopment Agency approved Ordinance Nos. 5-10 and 05-11 on April 21, 2005. Pursuant to SB 1045, (Statutes of 2003) the City Council may extend by one year the term of the Redevelopment and period to collect tax increment in return for making 2003-2004 and 2004-05 ERAF payments. * Section 700.80 Financing Limitations in the Soboba Springs Redevelopment Plan establishes a limitation of $5 million of taxes, which may be divided and allocated to the Agency. **Section 700.80 Financing limitations in the Soboba Springs Redevelopment Plan establishes a limitation of $5 million on the amount of bonded indebtedness, which can be outstanding at one time without an amendemnt to the Plan. Table i-2 summarizes the Proposed Merged Project Areas' time and financial limitations as proposed by the Amendments to merge the San Jacinto and Soboba Springs Project Areas ("Proposed Merged Project Area"). Existing Redevelopment Plan Time and Financial Limits Table 1-2 San Jacinto Redevelopment Agency Redevelopment Area Time Limitations Financial Limitations Eminent Incur New Plan Domain Debt Duration San Jacinto Project Area Original Area 10/1/2022' Eliminaled2 6/28/20253 Amendment Area 10/1/20221 12/28/2013 12/28/2033 Soboba Springs Project Area Expired Eliminated° 12/27/2028 Tax Increment Total Tax Total Outstanding Collection Increment Debt 6/28/20353 12/28/2043 12/27/2038 $ 2,700,000,000 $ 413,000,000 Source: San Jacinto Redevelopment Agency 'Estimated date. Actual date will be 12 years from the effective date of ordinance adopting amendments. `On April 7, 2005, City Council and Agency adopted Amendment No. 4 (Ordinance No. 05-07), which pursuant to 38 211 Statutes of 2002 eliminated the time limit to incur debt. 'City Council and Redevelopment Agency approved Ordinance Nos. 5-10 and 05-11 on April 21, 2005. Pursuant to SB 1045, (Statutes of 2003) the City Council may extend by one year the term of the Redevelopment and period to collect tax Increment In return for making 2003-2004 and 2004-05 ERAF payments. 4 Proposed Amendment pursuant to SB 211 Statutes of 2002 to eliminate the time limit to incur debt. Time limit to establish debt is time limit on Plan duration. The proposed Amendments will enable the Agency to more effectively implement redevelopment projects and activities eliminating blighting conditions within the Proposed Merged Project Area by amending the tax RSG 2 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT increment cap and bonded indebtedness limits. Receipt of additional tax increment revenue and increased bonding capacity provides additional capital to implement blight eliminating projects and programs. These projects include upgrading and improving public infrastructure, working toward the continued enhancement of property values, enabling economic revitalization of commercial and industrial enterprises, land acquisition/assembly, existing and future programs and increasing, improving, and preserving the supply of affordable housing in both Project Areas. Finally, pursuant to Redevelopment Law Section 33485, mergers of project areas are desirable as a matter of public policy if they result in substantial benefit to the public and if they contribute to the revitalization of blighted areas through the increased economic vitality of those areas and through increased and improved housing opportunities in or near such areas. Merging the San Jacinto and Soboba Springs Project Areas will achieve the desired results described by Redevelopment Law Section 33485 by enabling the Agency to better implement blight -reducing redevelopment projects and programs, and to increase affordable housing opportunities through the use of tax increment attributable to the entire Proposed Merged Project Area. AGENCY ACCOMPLISHMENTS In keeping with the goals and objectives of the existing project areas, the Agency has funded a number of housing, public safety, infrastructure, urban design, and economic and community development projects. By increasing financial limits the Agency will continue to retain the proper tools to further Implement blight reducing projects and programs. The Agency's accomplishments within the Existing Project Areas during the five year period preceding the adoption of the update to the 2005-2009 Implementation Plan for the San Jacinto and Soboba Springs Redevelopment Project Area include: San Jacinto Project Area • Virginia Lee Project ■ Main Street Improvement Plans • Business Development Loan — Precision Concepts ■ Commercial Fapade Grants/Loans — Miller Jones, Maggie's American Legion building, and National Scent • La Entrada Median • General Plan Update ■ Estudillo Mansion — Porch and Balcony Restoration • Ramona Expressway/Sanderson Waterline and Sewer Project • Ramona Expressway sidewalk project • Buena Vista Street improvements • Property Sale — 915 Industrial Way and former Tony's Sea Landing building • Economic Development Market Materials • Ramona/Taquitz Curb and Gutter Soboba Springs Project Area • Lake Park Bridge improvements • Lake Park wall construction • Lake Park improvements RSG 3 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT REPORT CONTENTS This Preliminary Report has been prepared by the Agency in accordance with Redevelopment Law Section 33344.5 and contains the following: Section A. Reasons for the Amendments; Section B. Description of the Physical & Economic Conditions Existing in Proposed Merged Project Area; Section C. Determination as to Whether Proposed Merged Project Area is Predominantly Urbanized; Preliminary Assessment of the Proposed Method of Financing, Including the Economic Section D. Feasibility of the Amendments & Reasons for the Continued Inclusion of Tax Increment and the Proposed Increase in Tax Increment and Bonded Indebtedness Caps; Section E. Description of the Specific Improvement Projects the Agency May Pursue & Description of How Potential Projects Will Address Continuing Redevelopment of Proposed Merged Project Areas. PLAN AMENDMENT PROCESS This Preliminary Report is one of several documents the Redevelopment Law requires the Agency to prepare during the amendment process, and is intended to aid the general understanding of the Amendments. Over the next several months, the City Council, the Agency Board, Planning Commission, affected taxing agencies, and the community -at -large will have an opportunity to study and comment on the Amendments. Section 33354.6(a) of the Redevelopment Law requires that an agency proposing a redevelopment plan amendment to increase the limitation on the number of dollars to be allocated to the redevelopment agency or to merge project areas shall follow the same procedure, and the legislative body Is subiect to the same restrictions, as when adopting a new redevelopment plan. Furthermore, Redevelopment Law Section 33354.6(b) specifies that when an agency proposes to increase the tax increment cap, or in this case merge the tax increment caps for both the San Jacinto and Soboba Springs Project Area making the merged cap equal to that of the existing San Jacinto Project Area, thereby increasing the tax increment limit for the Soboba Springs Project Area, the agency's Report to Council prepared pursuant to Redevelopment Law Section 33352 shall describe and identify the following: • The remaining blight within the project area (in this case the Proposed Merged Project Area); • Identify the portion, if any, that is no longer blighted; • The projects that are required to be completed to eradicate the remaining blight; and • The relationship between the costs of those projects and the amount of increase in the limitation on the number of dollars to be allocated to the agency. The Agency will send a copy of this Preliminary Report, the draft Amended Redevelopment Plan for the Merged San Jacinto Project Area ("Amended Plan"), and the draft Environmental Impact Report on the Amendments ("EIR") to all potentially affected taxing entities. The Planning Commission will also receive the Amended Plan and EIR. All potentially affected taxing entities will be invited to consult with the Agency regarding the Amendments and the Agency will incorporate comments from these consultations into the Agency's Report to the City Council. In addition, the draft EIR will be circulated for public comment in accordance with the requirements of the California Environmental Quality Act. In accordance with RSG SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Redevelopment Law Section 33488, the Agency will notify the Department of Housing and Community Development of its intention to merge the project areas no later than 30 days prior to the adoption of the ordinance approving the Amendments. The Report to the City Council prepared by the Agency pursuant to Redevelopment Law Section 33352, the final EIR, and the final Amended Plan will be considered by the Agency Board and the City Council at a joint public hearing. All property owners, residents, business owners, and affected taxing entities in the San Jacinto Proposed Merged Project Area will receive notice of this public hearing by mail and through the publication of public notices in the local newspaper. RSG 5 SECTION A Reasons for the Amendments PROJECT AREA LOCATION & DESCRIPTION The Merged San Jacinto Project Area, comprised of the existing San Jacinto and Soboba Springs Project Areas, is generally located within the City boundaries, in eastern Riverside County, California. The San Jacinto Project Area is generally located in the center of the city limits of the City of San Jacinto (''City") along State Street and San Jacinto Avenue. The San Jacinto Project Area also includes several non- contiguous subareas, including a subarea south of Midway Street, a subarea north of Cottonwood Avenue between Sanderson Avenue and Lyon Avenue, a subarea including parcels south of Ramona Expressway In the vicinity of Sanderson Avenue, two subareas along Ramona Boulevard, and a subarea on Soboba Road. The San Jacinto Project Area is approximately 3,440 acres and is comprised of commercial and residential land uses. The Soboba Springs Project Area is located in the eastern portion of the City in the vicinity of Soboba Road and Main Street. The Soboba Springs Project Area is approximately 465 acres and is comprised of residential and recreational uses and vacant land. A map of the Project Areas is provided as Exhibit A-1. Table A-1 shows the types of land uses within the Project Areas by acreage. Land Uses Table A-1 Proposed Merged San Jacinto Project Area Land Use Lot Acres % of Total Residential 2163.84 56.87% Vacant 1060.6 27.88% Commercial 186 4.89% Industrial 108 2.84% Unknown 79.84 2.10% Agricultural 18 0.47% Social 14 0.37% Professional 9 0.24% Office 9 0.24% Recreational 5 0.13% Institutional 2 0.05% Golf Course 149.3 3.92% Total 3804.58 100.00% Source: MetroScan, First American CoreLogic, Inc. SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT MERGED SAN JACINTO REDEVELOPMENT PROJECT AREA EXHIBIT A•1 Legend Ctty 6cuneary Nlewd Proje twee San Jainto Project Area 1771 ScbcCa Spmgs Prole,aF(ea 6 0.26 0.5 1.5 2 H H Mks REASONS FOR AMENDING THE REDEVELOPMENT PLAN The Agency has made progress in eliminating blight throughout the existing Project Areas by actively pursuing revitalization opportunities and assisting in redevelopment activities as allowed by the Redevelopment Law. Unfortunately, blighting conditions still remain within the these Project Areas and the proposed Amendments are necessary to continue the Agency's efforts in eliminating physical and economic blight and attracting private investment to the Proposed Merged Project Area. Section B of this Preliminary Report presents the remaining blighting conditions prevalent within the existing Project Areas. The following discussion outlines the purposes of the Amendments and generally how they will better enable the Agency to continue implementing projects to eliminate blight. The Amendments will enable the Agency to more effectively implement redevelopment programs, capital improvements, planning activities, commercial and residential rehabilitation, and to increase the overall commercial viability of the properties within the Proposed Merged Project Area by accomplishing the following: 1) Amend the existing Redevelopment Plans for the San Jacinto and Soboba Springs Redevelopment Projects to merge the project areas for financial reasons. More specifically, amending the Redevelopment Plans for the existing San Jacinto and Soboba Springs Project Areas to combine the tax increment and outstanding bonded limit so that the tax increment and outstanding bonded indebtedness limits for the Proposed Merged Project Area are those previously established for the RSG SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT existing San Jacinto Project Area. This amendment will have the effect of increasing both the tax increment and outstanding bonded indebtedness limits for the Soboba Springs Project Area; 2) Update and expand the capital improvement projects list for the San Jacinto and Soboba Springs Redevelopment Projects; 3) Adopt a single Merged, Amended and Restated Redevelopment Plan to cover the Proposed Merged San Jacinto Redevelopment Project Area; 4) Re -instate eminent domain authority in the existing San Jacinto Project Area for a 12 year period commencing with the effectiveness of the ordinance adopting the Amended and Restated Redevelopment Plan (if adopted), with the prohibition that the Agency cannot acquire by eminent domain any single family owner occupied home pursuant to Section 19 of Article 1 of the State of California Constitution (Proposition 99). (Eminent domain authority will be applicable within the Existing San Jacinto Project Area and not in the Soboba Springs portion of the Merged Project Area); 5) Eliminate the time limit to incur debt pursuant to SB211 Statutes of 2002; and 6) Adopt a single Merged, Amended and Restated Redevelopment Plan to cover the Proposed Merged San Jacinto Redevelopment Project Area. If adopted, the proposed Amendment No. 7 to the San Jacinto and Amendment No. 2 to the Soboba Springs Redevelopment Plans will improve the Agency's financial capacity. The merging of the tax increment cap and bonded indebtedness limit for the San Jacinto and Soboba Springs Project Areas to make the combined cap equal to that of the existing San Jacinto Project Area and essentially increasing the tax increment cap for the Soboba Springs Project Area will provide the Agency with the needed resources from Soboba Springs to utilize in the existing San Jacinto Project Area to ensure that blight removal activities are fully realized in the existing San Jacinto Project Area. Although the Agency has implemented significant blight removing activities within the existing Project Areas, many physical and economic blighting conditions remain in the San Jacinto Project Area. With the additional financial capacity provided by the proposed Amendments, the Agency will be better equipped to implement projects necessary to eradicate the remaining blight in the interest of the general welfare of the community. It is also anticipated that redevelopment activities coordinated by the Agency will provide additional employment opportunities and enhance the quality of life within the Proposed Merged Project Area and the surrounding community. Pursuant to Redevelopment Law Section 33344.5, Section D of the Preliminary Report provides detailed information on the method of financing the redevelopment of the Proposed Merged Project Area, the economic feasibility of the Amendments, and the reasons for continuing to include tax increment financing in the San Jacinto and Soboba Springs. Additionally, Section D also describes the relationship between the increasing or merging of the tax increment limit and the programs to be funded in order to eliminate any remaining blight- all of which substantiate the need for creating a single tax increment cap and bonded indebtedness limit for Proposed Merged Project Area. Property taxes attributable to each project area, which are allocated to the Agency pursuant to Redevelopment Law Section 33670(b), may be allocated to the entire Proposed Merged Project Area for the purpose of paying the principal of, and interest on, indebtedness incurred by the Agency to finance or refinance, in whole or in part, the Proposed Merged Project Area, except that any such taxes attributable to any constituent project area shall first be used to pay indebtedness in compliance with the terms of any bond resolution or other agreements pledging such taxes from the constituent project area. Making tax increment revenue available to the entire Proposed Merged Project Area will result in substantial benefit to the public, by allowing the Agency to revitalize blighted areas thereby improving the physical conditions of buildings and increasing the economic vitality of such areas. Without the RSG 8 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT use of these redevelopment tools, the revitalization of the Proposed Merged Project Area would be much more difficult to achieve. The Amendments will also reinstate the Agency's authority to acquire real property by eminent domain (as a last resort) in the existing San Jacinto Project Area only for a period not to exceed 12 years from the date of adoption of the Amendments. It is important to note that the Agency will be prohibited from acquiring by eminent domain any owner -occupied single family home pursuant to Section 19 of Article 1 of the State of California Constitution (Proposition 99). Reinstating eminent domain is NOT proposed for the Soboba Springs Project Area. Reinstating the Agency's eminent domain authority in the San Jacinto Project Area, as allowed by Redevelopment Law, ensures that all the tools necessary to complete the redevelopment of the San Jacinto Project Area are made available to the Agency. Overall, the benefits of the Amendments would affect the immediate and long-range economic viability of the Proposed Merged Project Area and the City as a whole. If implemented, the Amendments would provide the needed resources to the Agency to ensure that blight removal activities are fully realized within the Proposed Merged Project Area. Redevelopment activities will be subject to future review and approval by the City Council, and/or other appropriate agencies, committees, and/or other interested parties as appropriate or required by Redevelopment Law. SG 9 SECTION B Description of the Physical & Economic Conditions Existing in San Jacinto and Soboba Springs Project Areas BACKGROUND Redevelopment Law Section 33344.5 requires a description of the physical and economic blighting conditions present in the Proposed Merged Project Area. Documentation of the blighting conditions within the Existing Project Areas was provided in the Agency's Reports to City Council ("Original Reports") prepared for each constituent area of the existing project areas at the time of their adoptions. These Original Reports provided information and documentation regarding the adverse and blighting conditions present in the existing project areas. The ordinances adopting both project areas were also reviewed for a list of blighting conditions. Before adopting ordinances approving the original Redevelopment Plans for San Jacinto and Soboba Springs and the subsequent amendments thereto, the City Council reviewed the evidence provided in the Original Reports and determined that the Existing Project Areas were blighted as required by Redevelopment Law Section 33031. To this end, Redevelopment Law Section 33368 states that the 'decision of the legislative body shall be final and conclusive, and it shall thereafter be conclusively presumed that the project area is a blighted area as defined by Section 33031 and that all prior proceedings have been duly and regularly taken." SAN JACINTO PROJECT AREA The constituent areas of the San Jacinto Project Area were adopted over nearly a 30 year time period spanning from 1983 with the adoption of the San Jacinto Redevelopment Project Area to the most recent amendment in 2005. The San Jacinto Redevelopment Project Area was originally adopted June 28, 1983. It has been amended six times. Amendment 1 was adopted on December 28, 1993, to add territory to the project area. Amendment 2 was adopted on December 23, 1994, to accommodate changes in the Redevelopment Law. Amendment 3 was adopted on February 20, 1996, to delete certain areas from the project area. Amendments 4, 5, and 6 made certain changes to the redevelopment plan to either bring it into compliance with, or make allowable changes to the plan pursuant to, various changes to the Redevelopment Law. Although the definition of blight contained in the Redevelopment Law has changed over that same time period and more recently, the following paragraphs provide a snapshot as to the conditions present in one or more of the constituent areas of the San Jacinto Project Area at the time of their adoption. Because the San Jacinto Project Area is a large and diverse project area In terms of its building ages and land uses, various indicators of physical and economic blight are present and to varying degrees of intensity. As detailed in the Original Reports, the San Jacinto Project Area boundaries were generally selected because the varying physical and economic conditions present in each of the constituent areas created an unsafe physical environment and caused an unjust burden on the community. The causes of these conditions varied throughout the project area. Ordinance No. 754, adopting the original San Jacinto Project Area in 1983, identified the following conditions of blight: A. Undeveloped, unproductive or underdeveloped vacant land throughout the area, often littered with debris or used for open storage of trash materials. B. Inadequate street system to serve potential parking, circulation and loading demands. C. Poor access to proposed commercial developments which encourages traffic to travel through adjacent residential areas. D. Residential land uses mixed with commercial and industrial uses not suitable for a safe and healthful residential environment and business community. E. Inadequate street lighting, lack of curbs and gutters and poor public improvements and facilities. RSG 10 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT F. Existence of substandard agricultural, industrial and commercial and residential structures and incompatible uses throughout the area resulting in social and economic liability. G. The need for additional public and private utilities in order to accommodate the development of properties within the Project Area boundaries, including the need for additional water service, storm drains and sewer facilities and for the development of fire protection and prevention facilities. H. The lack or proper utilization of many properties within the Project Area boundaries resulting in development constraints on a number of these properties, thus producing a stagnant and unproductive condition of land which is otherwise potentially useful and valuable. I. The unproductive use of land resulting from fragmented ownership of certain parcels of property which are of peculiar development characteristics and/or miscellaneous sizes. J. The unimproved, defective, and/or inadequate construction of street improvements and public/private utilities within the Project area which has resulted from the uncoordinated development pattern of certain of the properties within the Project Area. K. The lack of adequate public facilities, including open space and other places of recreational activity, which are necessary to serve the property within the Project Area boundaries. L. The deterioration of many structures within the Project Area and the lack of development or redevelopment within the Project Area which has resulted because of the inadequacy of the required public facilities and services necessary to accommodate the redevelopment of the area in cooperation with the private sector. M. Mix and inefficient land utilization of the Central Business District resulting in a decline in the economic solidarity of this business area and the Project Area, including inadequate parking facilities and circulation networks. N. A street pattern which is inadequate to provide for safe and efficient vehicular, pedestrian and bicycle circulation. O. The presence of vacant and viable industrial and commercial property whose development has been impeded due to a community infrastructure system which is not designed and developed to a standard acceptable for development. P. The inadequate and/or inefficient use of the flood control channel and public utility easements which traverse the Project Area boundaries and which increasingly became physical barriers and barren parcels of property which physically blight the immediately adjacent properties and the remainder of the properties within the Project Area Q. The combination of social economic and physical adverse conditions in the Project Area which contribute substantially and increasingly to the problem of, and necessitate excessive and disproportionate expenditures for crime prevention, correction, prosecution and punishment, the treatment of juvenile delinquency, the preservation of the public health and safety and the maintaining of adequate police, fire and accident protection and other public services and facilities. R. Inadequate planning of the freeways or major highways which traverse the Project Area, with the corresponding failure to provide for the physical and social needs of those persons and properties which are adjacent to, and in close proximity with, the freeways or major highways. In this regard it is obvious that the noise, debris and other pollutants which are generated by the freeways or major highways are blighting conditions which negatively impact the property within the Project Area. Provision must be made to minimize or eliminate those conditions and to insure compatibility between the properties adjacent to and in close proximity with, the freeways or major highways. RSG 11 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT The Report to City Council for Amendment No. 1 to the San Jacinto Redevelopment Project Area, dated December 1993, identifies the following blighting conditions in the area added to the San Jacinto Redevelopment Project Area by Amendment No. 1: A. Faulty exterior spacing B. Irregular parcelization C. Parcels laid out without regard to topography D. Inadequate public improvements and facilities E. Old and deteriorating structures F. Mixed character and shifting of uses SOBOBA SPRINGS PROJECT AREA According to San Jacinto City Council Ordinance No. 767, adopted on December 27, 1983, conditions of blight in the Soboba Springs Redevelopment Project Area at the time of adoption included: A. "Undeveloped, unproductive and underdeveloped vacant land throughout the area, some of which are littered with debris or used for open storage of junk -type materials. B. Inadequate street and bridge systems to serve potential circulation demands. C. Poor access to proposed developments which encourages traffic to travel through adjacent residential areas and places severe constraints on emergency services. D. Inadequate street lighting, lack of curbs and gutters and poor public improvements and facilities. E. Existence of substandard agricultural and residential structures F. The need for additional public and private utilities in order to accommodate the development of properties within the Project Area boundaries, including the need for additional water service, storm drains and sewer facilities, and for the development of police and fire protection and prevention facilities. G. The lack of proper utilitization of many properties within the Project Area boundaries resulting in development constraints on a number of these properties, thus producing a stagnant and unproductive condition of land which is otherwise potentially useful and valuable. H. The unimproved, defective, and/or inadequate construction of street improvements and public/private utilities within the Project Area which has resulted from the uncoordinated development pattern of certain properties within the Project Area I. The lack of adequate public facilities, including open space. J. The deterioration of structures within the Project Area and the lack of development or redevelopment within the Project Area which has resulted because of the inadequacy of the required public facilities and services necessary to accommodate the redevelopment of the area in cooperation with the private sector. K. The presence of vacant and viable residential property whose development has been impeded due to an infrastructure community system which is not designed and developed to a standard acceptable for development. L. A street pattern which is inadequate to provide for safe and effective vehicular, pedestrian, and bicycle circulation. RSG 12 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT M. The combination of social. Economic and physical adverse conditions in the Project Area which contribute substantially and increasingly to the problem of, and necessitate excessive and disproportionate expenditures for crime prevention, correction, prosecution and punishment, the treatment of juvenile delinquency, the preservation of public health and safety and maintaining of adequate police, fire, and accident protection, and other public services and facilities. N. Inadequate planning of the provision of highways and bridges which traverse the Project Area with the corresponding failure to provide for the physical and social needs of those persons and properties which are adjacent to , and in close proximity with, these highways. Provision must be made to minimize or eliminate these conditions. O. The inability of the City and/or County to finance and construct a bridge over the San Jacinto River which provides access/'egress to residential developments, recreational facilities and the Soboba Indian Reservation. Without the bridge, properties in the Project Area will be precluded from developing thereby creating an economic drain on the community and property owners." REDEVELOPMENT LAW REQUIREMENTS As stated in Section A of this Preliminary Report, the Agency wishes to complete the following amendments to the San Jacinto and Soboba Springs Redevelopment Project Areas: 1) Amend the existing Redevelopment Plans for the San Jacinto and Soboba Springs Redevelopment Projects to merge the project areas for financial reasons. More specifically, amending the Redevelopment Plans for the existing San Jacinto and Soboba Springs Project Areas to combine the tax increment and outstanding bonded limit so that the tax increment and outstanding bonded indebtedness limits for the Proposed Merged Project Area are those previously established for the existing San Jacinto Project Area. This amendment will have the effect of increasing both the tax increment and outstanding bonded indebtedness limits for the Soboba Springs Project Area; 2) Update and expand the capital improvement projects list for the San Jacinto and Soboba Springs Redevelopment Projects; 3) Adopt a single Merged, Amended and Restated Redevelopment Plan to cover the Proposed Merged San Jacinto Redevelopment Project Area; 4) Re -instate eminent domain authority in the existing San Jacinto Project Area for a 12 year period commencing with the effectiveness of the ordinance adopting the Amended and Restated Redevelopment Plan (if adopted), with the prohibition that the Agency cannot acquire by eminent domain any single family owner occupied home pursuant to Section 19 of Article 1 of the State of California Constitution (Proposition 99). (Eminent domain authority will be applicable within the Existing San Jacinto Project Area and not in the Soboba Springs portion of the Merged Project Area); 5) Eliminate the time limit to incur debt pursuant to SB211 Statutes of 2002; and 6) Adopt a single Merged, Amended and Restated Redevelopment Plan to cover the Proposed Merged San Jacinto Redevelopment Project Area. Section 33354.6(a) of the Redevelopment Law sets forth that the agency shall undertake the "full" amendment process, or the same process required for a new redevelopment plan adoption, if a proposed redevelopment plan amendment would do any one of the following; add new territory; increase either the limitation on the number of dollars to be allocated to the redevelopment agency or the time limit on the establishing of new debt; lengthen the period during which the redevelopment plan is effective, merge project areas, or add significant additional capital improvement projects. Additionally, Redevelopment Law Section RSG 13 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT 33333.4(g)(2) states that an agency may extend the time limitation to utilize eminent domain by amendment to the redevelopment plan after the agency finds, based on substantial evidence that: 1) significant blight remains with the project area and 2) this blight cannot be eliminated without the use of eminent domain. In order to merge project areas the Agency is required to identify the following: 1. Significant blight remaining within one of the project areas (Redevelopment Law Section 33486(a)(1)); and 2. This blight cannot be eliminated without merging the project areas and the receipt of property taxes (Redevelopment Law Section 33486(a) (2). When increasing the limitation on the number of dollars to be allocated to the redevelopment agency, or increase the tax increment cap as the Agency proposes to do in Soboba Springs by merging the tax increment caps for both the existing San Jacinto and Soboba Springs Project Areas to that of the existing San Jacinto Project Area, Section 33354.6 of the Redevelopment Law states that the report required by Section 33352 of the Redevelopment Law (the Report to City Council to be prepared in early 2010) describe and identify the following: 1. The remaining blight within the project area (or in this case the Proposed Merged Project Area); 2. The portion, if any, that is no longer blighted; 3. The projects required to eradicate the remaining blight; and 4. The relationship between the costs of those projects and the amount of increase in the limitation on the number of dollars to be allocated to the Agency. In connection with the reestablishment of eminent domain in the existing San Jacinto Project Area, the Agency is also required to do the following: 1. Identify significant blight remaining in the San Jacinto Project Area (Redevelopment Law Section 33333.4(g)(2)(A)); and 2. Describe how this blight cannot be eliminated without the use of eminent domain (Redevelopment Law Section 33333.4(g) (2) (B)). This Preliminary Report provides a preliminary analysis of all the above -stated requirements based on data collected and analyzed to date. The Agency is not required to re -substantiate the existence of blight in the San Jacinto and Soboba Springs Project Areas. Pursuant to Redevelopment Law Section 33368 as stated previously, it is conclusively presumed that the San Jacinto and Soboba Springs Project Areas are blighted areas as defined by Redevelopment Law Section 33031. This Section B of the Preliminary Report describes the remaining physical and economic conditions existing in the San Jacinto and Soboba Springs Project Areas. BLIGHT DEFINITIONS The definition of blight has been modified since the adoption of the original Redevelopment Plans for the San Jacinto and Soboba Springs Project Areas. This section will present both the definition of blight at the time the redevelopment projects were originally adopted and the current blight definition. "Old" Blight Definition According to the Report to City Council prepared in connection with Amendment No. 1 to the San Jacinto Redevelopment Project Area, a "blighted area is one which is characterized by one or more of those conditions set forth in Sections 33031 or 33032, causing a reduction of, or lack or, proper utilization of the RSG 14 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT area to such an extent that it constitutes a serious physical, social, or economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise acting alone." "Section 33031. A blighted area is characterized by the existence of buildings and structures, used or intended to be used for living, commercial, industrial, or other purposes, or any combination of such uses, which are unfit or unsafe to occupy for such purposes and are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, and crime because of any one or a combination of the following factors: A. Defective design and character or physical construction. B. Faulty interior arrangement and exterior spacing. C. High density of population and overcrowding. D. Inadequate provision for ventilation, light, sanitation, open spaces, and recreational facilities. E. Age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses." "Section 33032. A blighted area is characterized by properties which suffer from economic dislocation, deterioration, or disuse because of one or more of the following factors which cause a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical, social, or economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise acting alone: A. The subdividing and sale of lots of irregular form and shape and inadequate size for proper usefulness and development. B. The laying out of lots in disregard of the contours and other topography or physical characteristics of the ground and surrounding conditions. C. The existence of inadequate public improvements, public facilities, open spaces, and utilities which cannot be remedied by private or governmental action without redevelopment. D. A prevalence of depreciated values, impaired investments, and social and economic maladjustment." "New" Blight Definition Redevelopment Law Sections 33030 through 33039 describe the conditions that constitute blight in a redevelopment project area. A blighted area is one that necessitates the creation of a redevelopment project area because the combination of conditions in an area constitute a burden on the community, and cannot be alleviated by private enterprise, governmental action, or both, without redevelopment. Redevelopment Law Section 33030 defines a blighted area as one that contains both of the following: 1. An area that is predominantly urbanized and is an area in which the combination of physical and economic blighting conditions is so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical and economic burden on the community that cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. 2. An area characterized by one or more physical condition of blight and one or more economic condition of blight as set forth in subdivisions (a) and (b) of Redevelopment Law Section 33031. RSG 15 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Physical Blight Section 33031(a) of the Redevelopment Law describes physical conditions that cause blight as follows: 1. Buildings in which it is unsafe or unhealthy for persons to live or work; examples of such conditions include: a. Serious building code violations b. Dilapidated and deteriorated buildings c. Buildings suffering from construction vulnerable to serious damage from seismic or geologic hazards d. Buildings suffering from faulty or inadequate water or sewer utilities 2. Conditions that prevent or substantially hinder the viable use or capacity of buildings or lots; examples of these conditions include: a. Lots/buildings suffering from substandard, defective, or obsolete design b. Lots/buildings of inadequate size given the present general plan, zoning, or other development standards 3. Adjacent or nearby uses that are incompatible with each other and which prevent the development of those parcels or other portions of redevelopment project areas 4. The existence of subdivided lots that are in multiple ownership and whose physical development has been impaired by their irregular shapes and inadequate sizes, given present standards and market conditions Economic Blight Section 33031(b) of the Redevelopment Law describes economic conditions that cause blight as the following: 1. Depreciated or stagnant property values 2. Impaired property values due to hazardous wastes on property where the agency may be eligible to use its authority as specified under the Polanco Redevelopment Act 3. Stagnant or declining market conditions; examples of this include: a. An abnormally high number of business vacancies b. Abnormally low lease rates c. Abnormally high number of abandoned buildings 4. A serious lack of necessary commercial facilities such as those normally found in neighborhoods including grocery stores, drugstores, and banks and other lending institutions 5. Serious residential overcrowding that has resulted in significant public health or safety problems where "overcrowding" means exceeding the standard referenced in Article 5 (commencing with Section 32) of Chapter 1 of Title 25 of the Califomia Code of Regulations 6. An excess of bars, liquor stores, or adult -oriented businesses that has resulted in significant public health, safety, or welfare problems 7. A high crime rate that constitutes a serious threat to the public safety and welfare According to Section 33030(c) of the Redevelopment Law, a blighted area may also be characterized by the existence of inadequate public improvements or inadequate water or sewer utilities. RSG 16 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT STUDY APPROACH & METHODOLOGY Several data sources were utilized to identify and document the physical and economic blighting conditions in the Project Areas. An important data source for evaluating the existence and prevalence of blighting conditions in the Project Areas was a parcel -by -parcel field survey conducted by Rosenow Spevacek Group, Inc. ("RSG") in March 2009. During the survey, the RSG team identified locations within the Project Areas where blighting conditions appeared to remain substantial and prevalent. Based upon initial reconnaissance, RSG prepared and refined the survey instrument so that each parcel within the Project Areas had its own survey sheet and was identified by county assessor's parcel numbers using county parcel maps. The survey sheets include physical and economic blighting conditions as prescribed by Redevelopment Law Section 33031(a), and economic blighting conditions listed in Redevelopment Law Section 33031(b), which are amenable to a visual survey. The survey forms contain consistent, educated assessments regarding the condition of parcels in the Project Areas and the results represent a nominal assessment of whether a condition is "present" or "not present". RSG acknowledges that different degrees of deterioration or deficiencies are present in each parcel and the RSG survey team, at a minimum, cites a condition as "present" when any reasonable person, if shown the condition, could see the damage. During the field survey, significant remaining blighting conditions, including deterioration and dilapidation and defective and substandard design, were observed in the existing San Jacinto Project Area. It is important to note that Redevelopment Law Section 33486, requires that the Agency must find that significant blight remains in one project area in order to merge the Project Areas. Additionally, Redevelopment Law Section 33333.4 requires that in order to reestablish eminent domain authority in the San Jacinto Project Area, the Agency must find that significant blight remains in that project area. It is important to note that eminent domain reestablishment is not proposed in the Soboba Springs Project Area. PHYSICAL BLIGHTING CONDITIONS IN SAN JACINTO PROJECT AREA Physical conditions were assessed in terms of the health and safety of persons and the economic viability of development in an area. In order to assess physical blight in the San Jacinto Project Area, data from the field survey, MetroScan parcel data, building code enforcement, and other public resources were collected and analyzed to determine what conditions may be adversely affecting the health and safety of persons in the San Jacinto Project Area, as well as the adverse economic conditions that result from physically deteriorating conditions. Generally, as economic returns from an area decline, there is a corresponding lack of reinvestment in properties which further perpetuate physical blight. The effect of the recent recession and declining property values has negatively impacted redevelopment efforts and the activities of both the private and public sector. These factors have limited tax increment funding to the Agency, which has restricted the Agency's ability to complete planned projects to remediate blighting conditions. The results from the analysis of physical blight in both Project Areas indicate that significant physical blighting conditions continue to plague the San Jacinto Project Area. Although all the properties have been included within a redevelopment area for one to two decades or more, the blighting influences are so pervasive that neither the private sector nor government acting alone can solve the problems facing the area. Furthermore, this evidence of continuing blight confirms that the Agency has additional work to do in order to eliminate blight and ensure proper utilization of the area. The continued presence of these blighting conditions also reflects a lack of reinvestment by property owners in maintaining their properties in good condition to assure the safety of persons who live and work in the San Jacinto Project Area. Physical and economic blighting conditions propagate further decline of an area and deter economic development activities by private investors. The poor physical conditions found in the San Jacinto Project Area place a burden on the community by reducing its ability to meet its goals, including maintaining the safety and security of neighborhoods and preserving the historic resources of the community. RSG 17 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT The following sections of this Preliminary Report identify and describe continued existence of blighting conditions as defined under the current Redevelopment Law. Specific examples of physical blighting conditions are provided in photographs taken during the field survey. Exhibit B-1 on the following page illustrates the exact location where physical blighting conditions remain in the San Jacinto Project Area. RSG 18 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT BLIGHT MAP uJ OC a z BYRD .3741 cZ cc 0 0 SCOTT ST RNAL z ue eV Legend - City Boum-191y mis Physical Blight Merged Proje6t Area San Jacinto Projedt Area Soboba Springs ProjectAroa 9 dinF4k....0 VA* tar: 0' 0 0.25 0.5 1.5 EXHIBIT B-1 2 H H Miles 19 UNSAFE AND UNHEALTHY BUILDINGS FOR PERSONS TO LIVE OR WORK Pursuant to Redevelopment Law, the existence of buildings in which it is unsafe or unhealthy for persons to live or work may be caused by serious dilapidation and deterioration caused by neglect, building age and lead based paints, and other factors. The following discussion examines the presence of unsafe and unhealthy buildings for persons to live or work as determined by the abovementioned causes. Dilapidation and Deterioration Despite Agency efforts to curtail blight in the San Jacinto Project Area, several large portions of the project area continue to show signs of significant deterioration and dilapidation resulting from long-term neglect and lack of property owner investment. Among some of the more prevalent building conditions which characterize a parcel as dilapidated and deteriorated noted during the field survey include: damaged and/or deteriorated roofing and exterior building materials, faulty weather protection, and broken window and/or doors. Structures that are seriously dilapidated and deteriorated causing unsafe and unhealthy environments for persons to live or work are generally scattered throughout the San Jacinto Project Area. However, a concentration of these unsafe and unhealthy buildings are located in the following areas: • Along and around Wateka Street, between De Anza Drive and Idyllwild Drive. • An area generally bounded by 7th Street to the south, Hewitt Street to the east, First Street to the north and San Jacinto Avenue to the west. • An area bounded by Cottonwood Avenue to the north, Santa Fe Avenue to the east, Eleventh Street to the south, and Palm Avenue to the west. ■ An area bounded by State Highway 79 to the north, Harbor Street to the east, Idyllwild Drive to the south and State Street to the west. • An area bounded by State Highway 79 to the north, Savory Lane to the east, Ramona Boulevard to the south and Babbling Place to the west. The majority of the structures in these areas were constructed prior to the 1970s, and in some cases date back to the 1920's and 1930's. Not surprisingly, dilapidation and deterioration is a natural phenomenon of aging structures where routine maintenance and upkeep are deferred for extended periods of time. By nature, older structures are more difficult to rehabilitate and as structures age rehabilitation becomes more expensive due to the need to bring buildings up to current building code. As stated in Stewart Brand's book, How Buildings Learn, What Happens After They're Built, a lack of maintenance results in buildings becoming unusable, with the threat of structural failure. Brand states that, "...due to deterioration and obsolescence, a building's capital value (and the rent it can charge) about halves by twenty years after construction. Most buildings you can expect to completely refurbish from eleven to twenty-five years after construction. The rule of thumb about abandonment is simple...if repairs will cost half of the value of the building, don't bother." It is no surprise, therefore, that a structure's condition is often directly correlated with its age and that results of the field survey indicate that the majority of dilapidated and deteriorated buildings are located in and around the oldest areas of the City where structures often date 50 or more years old. The following photographs were taken throughout the San Jacinto Project Area during the field survey and show the continuance of blight. These photographs provide a sample of the area's dilapidated and deteriorated structures whose poor conditions render unsafe and unhealthy environments for persons to live or work. RSG 20 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 1 This extremely deteriorated and dilapidated structure located on N. San Jacinto Avenue exhibits severely damaged, deteriorated and dilapidated exterior building materials (portions of the walls are missing) and deteriorated roofing materials. The structure's poor condition and incomplete siding leaves it vulnerable to external elements such as wind and rain, resulting in further damage to the structure. The integrity of the structure appears to be unsound and unsafe for human occupancy. The garbage, debris and outdoor storage create an inviting environment for insects and rodents. Structures exhibiting these blighting conditions contribute to the significant decline in property values in the Project Area over the past five years. RSG 21 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 2 This property on W. 5th Street, exhibits severely damaged and deteriorated exterior building materials, which leaves the structure vulnerable to external elements such as wind and rain. The structure also has a severely deteriorated and dilapidated roof, deteriorated eaves and overhangs as well as garbage, debris and outdoor storage, creating a potential fire hazard putting surrounding residents at serious risk. This property is another example of neglect and a serious lack of investment by the property owner, which can contributes to the declining property values in the Project Area. RSG 22 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 3 Photograph 4 The severely damaged corrugated metal roofing material provides minimal shelter for inhabitants. Eaves and overhangs are also severely deteriorated and dilapidated leaving roofing materials and structure vulnerable to outside elements. Trash and debris in the yard can attract rodents and negatively affect the health and safety of the inhabitants. Excessive garbage, debris and overgrown weeds create a fire hazard, which poses a significant risk to the inhabitants as well as surrounding properties. R.SG 23 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 5 This structure located along Potter Road suffers from a variety of physical blighting conditions including severely deteriorated and damaged roofing materials, damaged eaves and overhangs, a lack of paint and plaster as well as trash and debris in the yard. Despite redevelopment efforts, these conditions still persist in the Project Area. SG 24 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 6 Photograph 7 This boarded up and vacant property located on 5th Street suffers from severely dilapidated roofing materials and damaged exterior building materials. RSG 25 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 8 This significantly deteriorated and dilapidated property located along Grand Avenue suffers from broken, missing and deteriorated roofing materials, eaves and overhangs to the extent that damage to the interior of the structure is possible. RSG 26 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 9 Photograph 10 This property on E. 5th Street suffers from damaged exterior building materials, deteriorated roofing materials, deteriorated eaves and overhangs, and a lack of paint and plaster, which leaves the structure vulnerable to the outside elements. The roof on the structure is made from corrugated metal that has rusted, warped and separated from the main structure. The side of the building exhibits damage to the siding and the plaster near the foundation. One of the windows in the photo is boarded -up and the trim around the doors and windows shows peeling paint and likely suffers from termite damage and/or rotting wood. Not only does this RSG 27 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT structure pose healthy and safety concems but it also detracts from the community's aesthetics, which contributes to the significant decline in property values in the Project Area over the last five years. This boarded up, vacant structure is located on Grand Avenue. During the field survey conducted by RSG, the property was noted to display broken windows and doors, deteriorated and damaged roofing materials, damaged exterior building materials, and a deteriorated foundation. If these conditions are allowed to persist, the property will likely deteriorate further and remain vacant, which contributes to the further impairment of the economic viability of the surrounding area, as evidenced by significant declining property values in the Project Area. RSG 28 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 12 Photograph 13 This property on Jordan Avenue is another example of a structure that contains damaged and deteriorated exterior building materials and a dilapidated roof, leaving it vulnerable to outside elements. One of the exterior walls to the left appears to be missing with a tarp covering the area, which is likely in violation of building codes. RSG 29 8AwJAo|wTo REDEVELOPMENT Aoswov PRELIMINARY REPORT ~ Photograph 14 This property on Hewitt Street displays boarded -up windows, damaged exterior building mabsha|o, and peeling paint. The boarded up windows indicate that the windows were broken and have yet to be repaired bythe property owner. SG 30 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 15 This property is located on Shaver Street and was noted to display a sagging roof, severely deteriorated and damaged roofing materials, deteriorated eaves and overhangs, and a lack of paint and plaster, which can leave the structure vulnerable to outside elements and can cause further deterioration on the interior of the structure. The deteriorated condition of the property indicates a lack of investment by the property owner which negatively affects property values in the Project Area. RSG 31 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 16 The residential property located on Idyllwild Drive is another example of a boarded up and/or abandoned property in the Project Area. The blight survey indicates that this property exhibits broken windows and doors, damaged and deteriorated exterior building materials, and sagging roof supports. RSG 32 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 17 This structure, located on Jordan Avenue, exhibits deteriorated and damaged roofing materials, broken windows and doors, and damaged exterior building materials. The deteriorated overhang depicted in the photograph also appears to be constructed with untreated wood that is vulnerable to outside elements such as rain, contributing to further deterioration. RSG 33 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 18 The residential structure located on W. 7th Street exhibits a variety of physical blighting conditions including broken windows and deteriorated roofing and exterior building materials. Both conditions present considerable health and safety risks to persons occupying the unit and provide inadequate protection from outside elements such as wind and rain. The broken windows and doors also invite residential squatting and illegal activity. RSG 34 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 19 The property on Westminster Drive is vacant and is an example of the many foreclosures that are located throughout the Project Area. The property has a large broken window and peeling, deteriorated roofing materials. If not properly boarded up, broken windows can provide access to residential squatters and allow crime activity to occur. Foreclosed properties that display these types of blighting conditions also cause further declines in property values in the Project Area. (IRSG 35 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 20 This residential property located on N. Scovell Avenue is another example of a foreclosed property in the Project Area. This structure shows a lack of paint and plaster, deteriorated exterior building materials, which allows water and other external elements to penetrate its walls. As a result, the property will not have adequate protection from mold, wood rot, and a variety of other health and safety issues. Building Age and Lead Based Paint Lead is highly toxic, particularly to young children. According to the Presidents Task Force on Environmental Health Risks and Safety Risks to Children' ("Task Force"), lead can damage a child's kidneys and central nervous system and cause anemia. At high levels, it can cause a coma, convulsions and death. Children under the age of six are particularly vulnerable because their nervous systems are still developing and their normal play activities (including putting toys and objects in their mouth) expose them to lead paint hazards and lead -contaminated dust and soil. The Task Force estimates that nearly one million children living in the United States have blood levels high enough to impair their ability to think, concentrate and learn. The County of Riverside Department of Public Health2 states that the primary sources of lead exposure for most children are ingestion of deteriorating lead -based paint in older homes, lead -contaminated dust, and lead -contaminated residential soil. The Task Force reports that although lead paint has been banned in the United States since 1978, the Department of Housing and Urban Development estimated in 1990 that it still ' United States. President's Task Force on Environmental Health Risks and Safety Risks in Children. Eliminating Childhood Lead Poisoning: A Federal Strategy Targeting Lead Paint Hazards. February 2000. 2 County of Riverside Department of Public Health. "Lead and the Effects of Long -Term Exposure". Epidemiology & Program Evaluation January 2008. RSG 36 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT remains in about 64 million dwelling units. It further states that lead poisoning is five times higher among children living in homes built prior to 1946 than those living in homes built after 1973. Additionally, low income and minority children are nearly four times more likely to be exposed to lead hazards than other children because they are more likely to live in older homes. Table B-1 shows that 37% percent of homes in the San Jacinto Project Area were built prior to 1980, which is shortly after lead based paint was banned in 1978. Fifteen percent of homes were built prior to 1950; the risk of lead poisoning is five times higher in most of these homes. Structures by Age Table B-1 San Jacinto Redevelopment Project Area Decade No. of Structures % of Total Structures <1899 1 0.05% 1900 18 0.89% 1910 31 1.53% 1920 66 3.26% 1930 72 3.55% 1940 114 5.62% 1950 129 6.36% 1960 136 6.71% 1970 173 8.53% 1980 648 31.97% 1990 271 13.37% 2000 368 18.15% Total 2027 100% Percent built Prior to 1950 15% Percent built Prior to 1980 37% Source: Mefroscan, a product of First American Real Estate Solutions, L.P. The San Jacinto Project Area's older homes are likely to contain lead based paint, posing a health and safety hazard to its occupants. CONDITIONS HINDERING THE VIABLE USE OF BUILDINGS OR LOTS Pursuant to Redevelopment Law Section 33031(a)(2), a building or lot's viable use may be hindered by buildings of substandard, defective, or obsolete design or construction given the present general plan, zoning, or other development standards. Typical characteristics of parcels and/or buildings suffering from substandard or defective design include: • Excessive lot coverage/inadequate setbacks • A lack of parking, inadequate vehicular access • Inadequate loading areas • Buildings being used for purposes for which they were not originally constructed or intended • Poor building or site layout RSG 37 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT • Poorly constructed additions • Substandard exterior building materials ■ Outdoor storage or production • Substantial garbage/debris/stagnant water Conditions of substandard or defective design preventing or hindering the viable use or capacity of buildings or lots observed in the San Jacinto Project Area during the field survey include conditions include: ■ Poorly constructed additions • Substandard exterior building materials • Outdoor storage or production • Parcels containing significant garbage and debris. The largest concentration of buildings with conditions of defective design was observed in the following areas: 1. The area generally bounded by Estudillo Avenue to the east, Sixth Street to the south, Hewitt Street to the west and First Street to the north. 2. The area generally bounded by Palm Avenue to the east, Eleventh Street to the South, Santa Fe Avenue to the west, and Cottonwood Avenue to the north. 3. The area generally bounded by Ramona Boulevard to the south, Babbling Place to the east, State Highway 79 to the north and Savory Lane to the west. Poorly Constructed Additions /Substandard Exterior Building Materials Buildings, structures, or their additions, which are constructed with materials that do not meet current design or construction standards may be considered defective in design. Such buildings can present safety hazards, be functionally inefficient or facilitate their own deterioration. Conditions of defective design or physical construction can be manifested in a number of ways, including existing conditions that do not meet modern construction standards that have been established to ensure the health and safety of building occupants. Such defects may not technically be code violations but rather deficiencies resulting from evolutionary improvements in building code standards which have occurred since a building's construction. As stated previously,37% of buildings containing one or more condition of physical blight in the San Jacinto Project Area were constructed prior to 1980. Building and construction standards have changed and evolved over the past 30 years, and the obsolete nature of these structures causes building deficiencies. Residential and commercial owners have constructed additional to the original structure with substandard building materials and, in some cases, little attempt to integrate the addition with the character of the building. Photos 21 through 23 below provide examples of structures with substandard additions where proper permit and building code standards do not appear to be followed . The materials used to construct these additions often appear to be of low quality, such as plywood. Several of these additions in the San Jacinto Project Area were noted to be missing doors, windows or safety railings to protect occupants of the structures. In some cases, the additions have only tarps or sheets covering doorways. The result of using poor building materials or construction techniques can be not only aesthetically unattractive, but also structurally unsound. These additions are often built as a result of inadequacies in the existing building stock that does not provide for the adequate space and storage requirements of contemporary residential and commercial structures. RSG 38 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 21 Property on Potter Road is in very poor condition and suffers from damaged and deteriorating roofing materials, eaves and overhangs, as well as severely deteriorated exterior building materials. The property has a poorly constructed addition which is unlikely to meet current building codes. It is also deteriorated and dilapidated and constructed with plywood, a substandard building material for this purpose. The plywood appears to be untreated and lacks paint. The addition also lacks a proper wall or door in front and only a torn sheet protects a large portion of the front side from wind, rain, insects and other elements, posing a serious health and safety hazard for the residents. (CD)RSG 39 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 22 This commercial property located on Main Street exhibits damaged and deteriorated exterior building and roofing materials, as well as damaged eaves and overhangs. It appears that an addition has been constructed on to the back of the property as a result of the need for additional space or storage due to the obsolete nature and inadequacies of the original structure. An exterior door appears to lead out to the roof of the building addition near the top of the photo. The door suggest that the roof is used as a deck, but it is not enclosed with fencing or rails, making this a significant safety hazard that is also likely in violation of current building codes. RSG 40 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 23 This structure located along Pico Avenue suffers from deteriorated and damaged roofing materials, damaged eaves and overhangs as well as a lack of paint and plaster. The property also appears to be boarded up and vacant. The photo also shows a poorly constructed addition with severely deteriorated roof and a plywood door, a substandard building material for this purpose. Outdoor Storage/Garbage/Debris Outdoor storage and/or production is an indication of substandard or defective design because it signals that the existing building stock does not provide adequate building space for business activities or that the building is not being used for purposes for which it was originally constructed or intended. In the San Jacinto Project Area, properties within residential areas were also observed to have outdoor storage of homeowner items as well as trash and debris. Storing garbage and debris on the exterior of a structure can attract rodents, posing a health and safety hazard for occupants of the building. Trash and debris also represent a significant fire hazard for not only the structure storing the material, but also for those structures located in close proximity to the building. RSG 41 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT The following photographs depict a sample of structures in the San Jacinto Project Area properties exhibiting outdoor storage and significant garbage and debris. Photograph 24 The property on San Jacinto Avenue was noted during the blight survey to exhibit broken windows and doors and a damaged and deteriorated foundation. The broken windows can attract squatters or allow for potential criminal activities to take place. The lot is being used for outdoor storage of trash and debris. These types of physical blighting conditions are clear signs of a lack of investment by the property owner and can expose the inhabitants to serious health and safety risks. R5G 42 S^wJACwToREDEVELOPMENT AGENCY PRELIMINARY REPORT Photomraph 25 This Potter Road property has damaged and deteriorated edohcv building moberio|o, o deteriorated and dilapidated roof, broken whodowu, deteriorated eaves and ovedhongo, garbage and debris and outdoor storage. creating a health and safety hazard for inhabitants. This property is another example of neglect and a lack of investment by the property owner, which contributes to the significant decline in property values in the Project Area. 43 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Photograph 26 The residential property along Commonwealth Avenue was noted during the blight survey as, suffering from damaged roofing materials, deteriorated eaves and overhangs and broken and boarded up windows. The property also has outdoor storage, garbage and debris, which can become a haven for rodents and insects and pose a fire hazard. ECONOMIC BLIGHTING CONDITIONS IN SAN JACINTO PROJECT AREA A blighted area is characterized by one or more conditions set forth in any paragraph of subdivision (a) of Section 33031 of the Redevelopment Law and one or more conditions set forth in any paragraph of subdivision (b) of Redevelopment Law Section 33031. The previous discussion outlined the physical conditions of blight remaining within the San Jacinto Project Area pursuant to Redevelopment Law Section 33031(a). The following discussion describes the economic conditions that cause blight pursuant to Section 33031(b) of the Redevelopment Law. In order to assess remaining economic blight in the Project Area, data from DataQuick, Metroscan parcel data, EnviroStar, RealtyTrac, the San Jacinto Police Department, and other resources were collected and analyzed to determine what conditions may be adversely affecting the health and safety of persons in the San Jacinto Project Area, as well as the economic viability of the surrounding community. The following discussion identifies and describes the seriousness of several indicators of economic blight within the San Jacinto Project Area. DEPRECIATED OR STAGNANT PROPERTY VALUES According to Redevelopment Law, depreciated or stagnant property values is a condition that causes economic blight. Property values depreciate or stagnate when blighting factors exist and impede economic progress. RSG 44 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT California Proposition 13, which was approved by California voters in 1978, imposed an annual not to exceed 2% inflationary adjustment on the full cash value of real property where the full cash value is determined as of the 1975/76 assessment year, upon change in ownership, or when newly constructed. Due to the limitations on the growth of property assessed value imposed by Proposition 13, the conventional way of determining the rate of growth/decline in residential property values is by comparing the percentage change in median home price as determined by property sales for the time period desired. It is important to note that the San Jacinto Project Area was previously determined to be a blighted area pursuant to Redevelopment Law at the time the Original and Amendment Area were adopted. Additionally, it is generally recognized that in recent years, residential real estate values are dropping across the state. Therefore, it is essential that any discussion of declining property values as an indication of blight include data of other comparable geographies in order to have a more accurate picture of the economic conditions in San Jacinto Project Area as compared to the City, surrounding communities and Riverside County as a whole. In order to determine if the San Jacinto Project Area is experiencing depreciated property values, the sales price per building square footage of single family homes sold in 2007 and 2008 was calculated utilizing information from DataQuick Information Systems. This analysis focuses on residential home values because the majority of the San Jacinto Project Area is residential (61 %). An analysis of the median single family home value in the San Jacinto Project Area indicates that values have decreased by 53 percent from 2007 to 2008. As shown in Table B-2, this decline far exceeds that of the City, County, and four out of five surrounding cities. Home Price per Square Foot Comparison Table B-2 San Jacinto Redevelopment Agency 2007 2008 % Location Price/S.F. Price/S.F. Change Perris $214 $99 -54% San Jacinto Project Area $185 $87 -53% Hemet $180 $94 -48% San Jacinto City $159 $87 -45% Banning $202 $115 -43% Riverside County $211 $121 -43% Beaumont $193 $115 -40% Calimesa $219 $150 -32% Source: DataQuick Information Systems, MetroScan FY 08-09 Tax Roll The high rate of decline in property values is indicative that the overall conditions of the San Jacinto Project Area cause a lack of proper utilization of the area. Depreciated property values result in less property tax revenues, posing an economic burden on the community. CRIME RATES A high crime rate constitutes a serious threat to public safety and welfare and is an economic condition that causes blight. When an area suffers from high levels of crime, businesses and other investors are often unwilling to locate their businesses and/or invest their private dollars into these neighborhoods because of the increased level of risk. This can further perpetuate other blighting conditions, such as dilapidation and deterioration resulting from long-term neglect. In order to document crime and its impact on the San Jacinto and Soboba Springs Project Area combined and the City at large, information regarding the incidence of violent and other serious property crimes was R S G 45 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT collected from the San Jacinto Police Department. This information covers the time period beginning with April 30, 2008 and ends May 1, 2009. To ensure that the crime statistics being analyzed and reported in this Preliminary Report truly represent crimes that are a serious threat to public safety and welfare, only those crimes which are included in the FBI Crime Index were analyzed due to their serious and violent nature and their potential drain on law enforcement resources. The FBI Crime Index includes the following four violent offenses; homicide, forcible rape, robbery, carjacking and aggravated assault, and the following types of serious property crimes; grand theft, burglary, larceny, motor vehicle theft and other vehicle -related crimes; felony vandalism; fire at occupied dwelling; weapons; and arson. Over the last 1 year period, these crimes totaled 1,085 incidences citywide while the San Jacinto and Soboba Springs Project Areas combined experienced 503 incidences. Therefore, in the last year, 46% of serious crimes occurred within the boundaries of the City's redevelopment areas. This fact is significant because the project area only represents 18% of the City's total area. As a result, a larger proportionate share of the City's violent offenses and serious property crimes are occurring within the project area - threatening the safety and welfare of residents, workers, and patrons and draining a larger proportionate share of the City's law enforcement resources. Chart B-1 provides a visual summary of the discussion presented in the previous paragraph. 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% %Crime in Merged Project Area vs. %of Acreage of Merged Project Area May, 2008 to April, 2009 ■ Project Area Crirre ® Roject Area Acreage RSG 46 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT SUMMARY OF PHYSICAL AND ECONOMIC BLIGHTING CONDITIONS The Agency continues to work toward the physical and economic rehabilitation of the San Jacinto Project Area. However, properties in this project area continue to exhibit signs of physical blight, such as deterioration and dilapidation caused by long-term neglect, and defective and substandard design. Additionally, substantial economic blighting conditions remain in the San Jacinto Project Area in the form of depreciated property values and a high crime rate. The median home price in the project area dropped by 53%, while values in the City and the County dropped 45% and 43%, respectively, over this same time period, indicating that the properties in the project area are substantially more economically distressed than those in the City and the County as a whole. The incidence of serious crime is disproportionately high in the San Jacinto Project Area; 46% of serious crime in the City occurred there over a recent 1 year period, but the redevelopment project areas only make up 18% of the total acreage of the City. These remaining physical and economic blighting conditions in the San Jacinto Project Area are causing a reduction in, or lack of, optimal utilization of the area to such an extent that it constitutes a serious burden on the community. Based on the observations and research in this section, it is evident that the San Jacinto Project Area continues to suffer from various physical and economic blighting conditions. Although the Agency has accomplished a number of projects in this area, there has been limited private investment in project area and further improvements are needed to alleviate current conditions. The Amendments propose to merge and thereby increase current financial limitations and to merge the San Jacinto and Soboba Springs Project Areas, effectively increasing the Agency's ability to implement redevelopment projects and programs to continue to eliminate blight from the San Jacinto Project Area. Receipt of additional tax increment revenue and increased bonding capacity provides the Agency with additional capital to implement blight eliminating projects, thus alleviating current conditions that are threatening the health and safety of persons who live and work in the Project Area. These projects include upgrading and improving public infrastructure, working toward the continued enhancement of property values, enabling economic revitalization of commercial and industrial enterprises, and increasing, improving, and preserving the supply of affordable housing. Section E provides additional detail of the proposed public projects and programs that may be undertaken by the Agency in the Proposed Merged Project Area and identifies the blighting conditions addressed by those public projects. PHYSICAL AND ECONOMIC CONDITIONS IN THE SOBOBA SPRINGS PROJECT AREA As stated in Section A of this Preliminary Report, the San Jacinto City Council adopted Ordinance No. 767 on December 27, 1983, making findings that the Soboba Springs Project Area was a blighted area as defined by Redevelopment Law Section 33031. Pursuant to Redevelopment Law Section 33368, that the "decision of the legislative body shall be final and conclusive, and it shall thereafter be conclusively presumed that the project area is a blighted area as defined by Section 33031 and that all prior proceedings have been duly and regularly taken." As described in Ordinance No. 767, the Soboba Springs Project Area suffered from the following blighting conditions at the time it was adopted: • "Undeveloped, unproductive and underdeveloped vacant land throughout the area, some of which are littered with debris or used for open storage of junk -type materials. ■ Inadequate street and bridge systems to serve potential circulation demands. • Poor access to proposed developments which encourages traffic to travel through adjacent residential areas and places severe constraints on emergency services. ■ Inadequate street lighting, lack of curbs and gutters and poor public Improvements and facilities. • Existence of substandard agricultural and residential structures SG 47 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT ■ The need for additional public and private utilities in order to accommodate the development of properties within the Project Area boundaries, including the need for additional water service, storm drains and sewer facilities, and for the development of police and fire protection and prevention facilities. • The lack of proper utilitization of many properties within the Project Area boundaries resulting in development constraints on a number of these properties, thus producing a stagnant and unproductive condition of land which is otherwise potentially useful and valuable. ■ The unimproved, defective, and/or inadequate construction of street improvements and public/private utilities within the Project Area which has resulted from the uncoordinated development pattern of certain properties within the Project Area • The lack of adequate public facilities, including open space. • The deterioration of structures within the Project Area and the lack of development or redevelopment within the Project Area which has resulted because of the inadequacy of the required public facilities and services necessary to accommodate the redevelopment of the area in cooperation with the private sector. • The presence of vacant and viable residential property whose development has been impeded due to an infrastructure community system which is not designed and developed to a standard acceptable for development. • A street pattern which is inadequate to provide for safe and effective vehicular, pedestrian, and bicycle circulation. ■ The combination of social. Economic and physical adverse conditions in the Project Area which contribute substantially and increasingly to the problem of, and necessitate excessive and disproportionate expenditures for crime prevention, correction, prosecution and punishment, the treatment of juvenile delinquency, the preservation of public health and safety and maintaining of adequate police, fire, and accident protection, and other public services and facilities. • Inadequate planning of the provision of highways and bridges which traverse the Project Area with the corresponding failure to provide for the physical and social needs of those persons and properties which are adjacent to , and in close proximity with, these highways. Provision must be made to minimize or eliminate these conditions. • The inability of the City and/or County to finance and construct a bridge over the San Jacinto River which provides access/egress to residential developments, recreational facilities and the Soboba Indian Reservation. Without the bridge, properties in the Project Area will be precluded from developing thereby creating an economic drain on the community and property owners." Consequentially, the blighting conditions in the Soboba Springs Project Area generated specific community burdens involving physical safety considerations and the costs of municipal services in the project area in relation to available tax revenues. In order to alleviate these blighting conditions, the Agency set the following objectives in the Soboba Springs Redevelopment Plan, which to a great extent have been met in recent years: • The elimination of existing blighted conditions, be they properties or structures, and the prevention of recurring blight in and about the Project Area. • The development of property within a creative, coordinated land use pattern of residential, open space, recreational, and public facilities in the Project Area consistent with the goals, policies, objectives, standards, guidelines and requirements as set forth in adopted General Plan and Zoning Ordinance, and the approved specific plan for the area. RSG 48 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT • The development of public services and facilities including, but not limited to, recreational, maintenance, and operational services and facilities as are necessary and required for the development of the Project Area. • The elimination of environmental deficiencies including inadequate street improvements, inadequate utility systems, and inadequate public services; and mitigation of highway impacts, including its circulation, movement and its potential social, physical, and environmental characteristics of blight. • The development of a more efficient and effective circulation corridor system free from hazardous vehicular, pedestrian and bicycle interfaces and designed to their ultimate circulation flow. • The implementation of techniques to mitigate blight characteristics resulting from exposure to highway and public right-of-way corridor activity and affecting adjacent properties within the Project Area. • Beautification activities to eliminate all forms of blight including, but not limited to, visual blight, in order to encourage community identity. • The encouragement, promotion, and assistance in the development and expansion of local commerce. • The acquisition, assemblage, and/or disposition of sites of usable and marketable sizes and shapes for residential, open space, recreational and public facility development within the Project Area. • The creation of a more cohesive and unified community by strengthening the physical, social and economic ties between residential, commercial, industrial, and recreational land uses within the community and the Project Area. • The acquisition and disposition of property for the purpose of providing relocation housing, as may be required, to implement the objectives of the Plan. • To provide for very low, low and moderate income housing availability as required by County, Region, or State law requirements, as necessary and desirable, consistent with the goals and objectives of the community. • To encourage the coordination, cooperation, and assistance of other local agencies, as may be deemed necessary, to ensure that projects undertaken by the Agency are implemented to their fullest and practical extent. • The achievement of a physical environment reflecting a high level of concern of architectural and urban design principals deemed important by the community. • To encourage community involvement and citizen participation in the adoption of policies, programs, and projects so as to ensure that the Redevelopment Plan is implemented in accordance with the objectives and goals of the General Plan. As a result of Agency efforts and the partnerships they formed with the private sector, the redevelopment of Soboba Springs is complete. This would not have been possible without the Agency's assistance because of blighting conditions that otherwise would have created barriers to redevelopment that the private development community could not have overcome if acting alone. Soboba Springs is no longer viewed to be a burden on the community and the blighting conditions identified at the time the Soboba Springs Project Area was adopted have virtually been eliminated. It is important to note that Redevelopment Law Section 33486 allows redevelopment agencies to merge project areas when significant remaining blight remains within just one of the project areas involved in the RSG 49 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT merger. The Redevelopment Law requires that the legislative body shall find that this blight cannot be eliminated without merging the project areas and the receipt of property taxes. Pursuant to Redevelopment Law Section 33485, mergers of project areas are desirable as a matter of public policy if they result in substantial benefit to the public and if they contribute to the revitalization of blighted areas through the increased economic vitality of those areas and through increased and improved housing opportunities in or near such areas. Merging the San Jacinto and Soboba Springs Project Areas will achieve the desired results described by Redevelopment Law Section 33485 by enabling the Agency to better implement blight reducing redevelopment projects and programs, and to increase affordable housing opportunities through the use of tax increment attributable to the entire Proposed Merged Project Area. The merger will allow for up to an additional $_ million may be made available for projects and programs designed to eliminate the significant remaining blight in San Jacinto Project Area. Additionally, merging the San Jacinto and Soboba Springs Project Areas reduces Agency expenditures associated with the administration of two separate project areas, providing the Agency with additional funds for redevelopment projects that would otherwise be expended on administrative functions. RSG 50 SECTION C Determination as to Whether the Proposed Merged Project Area is Predominantly Urbanized To qualify for inclusion in a redevelopment project area, the land must be "predominantly urbanized" as defined by CRL Section 33320.1(b). Pursuant to said section, an area is "predominantly urbanized" if no less than 80 percent of the land within the project area: ■ Has been or is developed for urban uses; or • Is an integral part of one or more areas developed for urban uses, which are surrounded or substantially surrounded by parcels, which have been or are developed for urban uses. According to CRL Section 33320.1(d) the requirement that a project area be predominantly urbanized shall only apply to a project area for which the redevelopment plan was adopted on or after January 1, 1984, or to an area that is added to a project area by amendment on or after said date. Because the redevelopment plans for the Original San Jacinto Project Area and Soboba Springs Project Area were adopted prior to this date (the Redevelopment Plans for the Existing San Jacinto and Soboba Springs Project Areas were adopted on June 29, 1983, by Ordinance No. 754 and December 29, 1983 by Ordinance No. 767, respectively), urbanization is not a requirement of these project areas. However, Amendment No. 1 to the Redevelopment Plan to the Original San Jacinto Redevelopment Project Area, adopted on December 28. 1993, by Ordinance No. 992, is subject to this requirement. Ordinance No. 992 does contain a finding that the Amendment Area was predominantly urbanized. Therefore, no further urbanization analysis is required in connection with the Merger and Amendments. A copy of Ordinance No. 992 is attached following this Section C. RSG 51 ORDINANCE NO. 992 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO APPROVING AND ADOPTING AMENDMENT NO. ONE TO THE REDEVELOPMENT PLAN FOR THE SAN JACINTO REDEVELOPMENT PROJECT WHEREAS, the City Council of the City of San Jacinto (the "City Council") has adopted, by Ordinance No. 754 on June 28, 1983 (the "Previous Ordinance"), the Redevelopment Plan for the San Jacinto Redevelopment Project (the "Redevelopment Plan" and the "Existing Project"); and WHEREAS, the findings and determinations made by the City Council in the Previous Ordinance are final and conclusive, no action having been timely brought to question the validity of the Previous Ordinance or the findings or determinations of the City Council in adopting the Previous Ordinance; and WHEREAS, the City Council has received from the Redevelopment Agency of the City of San Jacinto (the "Agency") the proposed Amendment No. One (the "Plan Amendment") to the Redevelopment Plan, a copy of which is on file at the office of the City Clerk, together with the Report of the Agency including the reasons for the selection of the territory proposed to be added to the existing territory located within the Existing Project (the "Added Territory") (the territory located within the Existing Project, after addition of the Added Territory, is referred to herein as the "Amended Project Area"), a description of the physical, social and economic conditions existing in the Added Territory, the proposed method of financing the redevelopment of the Amended Project Area, a plan for the relocation of families and persons who may be temporarily or permanently displaced from housing facilities in the Amended Project Area, an analysis of the Preliminary Plan Amendment, the report and recommendations of the Planning Commission of the City of San Jacinto as to the conformity of the Plan Amendment with the City's General Plan, the minutes of meetings with the Project Area Committee ("PAC") and a summary of the record of all information presented to or by the PAC, an environmental impact report on the Plan Amendment (the "Final EIR"), the report of tiie county fiscal officer and the Agency's analysis thereof, and a summary of consultations with taxing agencies, the report of the fiscal review committee and the Agency's analysis thereof, and a Neighborhood Impact Report describing the impact of the Plan Amendment upon the residents in the Added Territory and the surrounding areas; and WHEREAS, the Planning Commission of the City of San Jacinto has submitted to the City Council its report and recommendations concerning the Plan Amendment and its certification that the Plan Amendment conforms to the General Plan for the City of San Jacinto; and WHEREAS, the City Council and the Agency held a joint public hearing on December 7, 1993, on the adoption of the Plan Amendment; and WHEREAS, notice of said hearing was duly and regularly published in a newspaper of general circulation in the City of San Jacinto, once a week for four successive weeks prior to the date of said hearing, and a copy of said notices and affidavits of publication are on file with the City Clerk and the Agency; and WHEREAS, copies of the notice of joint public hearing were mailed by certified mail with return receipt requested to the last known address of each assessee as shown on the last equalized assessment roll of the County of Riverside for each parcel of land in the Existing Project Area and the Added Territory; and WHEREAS, copies of the notice of joint public hearing were mailed by certified mail with return receipt requested to the governing body of each taxing agency which receives taxes from property in the Existing Project Area and the Added Territory; and WHEREAS, the Agency and the City have each independently found and determined that, for certain significant effects identified by the Final EIR, mitigation measures and a Mitigation Monitoring Plan therefor have been required in, or incorporated into, the Amended Project which avoid or substantially lessen such effects; and WHEREAS, the Agency and City have each independently found and determined that potential mitigation measures or project alternatives not incorporated into the Amended Merged Project (including the "No Project" alternative) were rejected as infeasible based upon specific economic, social or other considerations as set forth in the Final EIR and the "Statement of Overriding Considerations;" and WHEREAS, the Agency, as the lead agency, and the City, as a responsible agency, have certified the adequacy of the Final EIR submitted pursuant to Public Resources Code Section 21151 and Health and Safety Code Section 33352; and WHEREAS, the City Council has considered the report and recommendation of the Planning Commission, the report of the Agency, the Plan Amendment and its economic feasibility, and the Final EIR, has provided an opportunity for all persons to be heard, and has received and considered all evidence and testimony presented for or against any and all aspects of the Plan Amendment and has made written findings in response to each written objection of an affected property owner and taxing entity filed with the City Clerk before the hour set for such joint public hearing. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JACINTO DOES ORDAIN AS FOLLOWS: Section 1. The purposes and intent of the City Council with respect to the Amended Project Area as it relates to the Plan Amendment are to accomplish the following: (a) To implement the land uses and concepts of the General Plan and the Zoning Ordinance, as they may be amended from time to time. (b) To eliminate blighting influences within the Amended Project Area, including deteriorating buildings, incompatible and uneconomic land uses, obsolete structures, and other environmental, economic and social deficiencies; improve the overall appearance of existing buildings, streets, parking areas and other facilities, pvaL:9D14_11424IB2763.1 2 public and private; and assure that all buildings, new and old, are safe for persons and businesses to occupy. (c) To encourage cooperation and participation of residents, business persons, public agencies and community organizations in revitalizing the Amended Project Area. (d) To encourage private sector investment in the redevelopment of the Amended Project Area. (e) To promote the economic well being of the area by encouraging diversification of its commercial base. (f) To promote development of diverse local job opportunities particularly for low - and moderate- income residents. (g) (h) To provide adequate public improvements, public facilities, open spaces, and utilities, the lack of which cannot be remedied by private or governmental action without redevelopment. To implement the construction or reconstruction of adequate streets and transportation facilities, curbs, gutters, street lights, storm drains, and other improvements as necessary to correct existing deficiencies. (i) To provide for relocation assistance and benefits to area businesses and residences which may be displaced, in accordance with the provisions of the Community Redevelopment Law and the Government Code of the State of California. (j) To make provision for affordable housing inside and outside the Amended Project Area as is required to satisfy the needs and desires of various age, income, and ethnic groups of the community, maximizing opportunity for individual choice. (k) To provide a procedural and financial mechanism by which the Agency can assist, complement and coordinate public and private development, redevelopment, revitalization and enhancement of the community. Section 2. The City Council hereby finds and determines, based on the evidence in the record, including, but not limited to, the Agency's Report to the City Council on the proposed Plan Amendment, and all documents referenced therein, and evidence and testimony received at the joint public hearing on adoption of the Previous Ordinance that: (a) The Amended Project Area is a blighted area, the redevelopment of which is necessary to effectuate the public purposes declared in the California Community Redeyelopment Law (Health and Safety Code Section 33000 et Leg.). With respect to the Existing Project Area only, this finding is based on the City Council's findings contained in the Previous Ordinance, which found various blighting conditions to characterize the Existing Project Area. PuaL:9014_11424IB2753.1 3 With respect to the Added Territory only, the City Council hereby finds and determines, based on the evidence in the record, including, but not limited to, the Agency's Report to the City Council on the proposed Plan Amendment, and all documents referenced therein, and evidence and testimony received at the joint public hearing on adoption of the Plan Amendment held on December 7, 1993, that: The Added Territory is a blighted area, the redevelopment of which is necessary to effectuate the public purposes declared in the California Community Redevelopment Law (Health and Safety Code Section 33000 et sect.). This finding is based on the following conditions which characterize the Added Territory: (1) The existence of buildings and structures used or intended to be used for living, commercial, industrial or other purposes which are characterized by deterioration, dilapidation, age and obsolescence, mixed character, shifting uses, and faulty exterior spacing; and (2) The existence of properties which suffer from deterioration and disuse because of inadequate public improvements, facilities and utilities, which cannot be remedied by private or governmental action without redevelopment, particularly deficiencies in the water, sewer, drainage and street systems; and (3) The existence of parcels that are of irregular form, shape, or size for proper usefulness and development; and (4) The existence of parcels that were laid out without regard to the contours and other topography or physical characteristics of the ground and surrounding conditions; and (5) The presence of depreciated values, impaired investments and economic maladjustment, poor maintenance, declining taxable sales, declining rents and real property sale prices, and vacant or underutilized buildings within the Added Territory; and (6) The existence of social maladjustment, as exhibited by high crime rates. Such conditions are causing and will increasingly cause a reduction and lack of proper utilization of the area to such an extent that it constitutes a serious physical, social and economic burden on the City which cannot reasonably be expected to be reversed or alleviated by private enterprise acting alone, requiring redevelopment in the interest of the health, safety and general welfare of the people of the City and the State. Evidence supporting this finding includes the fact that governmental action available to the City without redevelopment would be insufficient to cause any significant correction of the blighting conditions, and that the nature and costs of the public improvements and facilities and other actions required to correct the blighting conditions are beyond the capacity of the rUBL:9014_114241B2763,1 4 City and cannot be undertaken or borne by private enterprise acting alone or in concert with available governmental action. (b) Since the adoption of the Redevelopment Plan, the Agency has made efforts to eliminate such conditions of blight by funding needed infrastructure and assisting new development. However, the City Council finds that the majority of conditions described in the Agency's previous Report to the City Council have not changed, and that there is a substantial need to eliminate deficient public improvements and blighting conditions within the Existing Project Area. Such conditions are causing and will increasingly cause a reduction and lack of proper utilization of the Existing Project Area to such an extent that it constitutes a serious physical, social and economic burden on the City which cannot reasonably be expected to be reversed or alleviated by private enterprise acting alone, requiring redevelopment in the interest of the health, safety and general welfare of the people of the City and the State. Evidence supporting this finding includes the fact that governmental action available to the City without redevelopment would be insufficient to cause any significant correction of the blighting conditions, and that the nature and costs of the public improvements and facilities and other actions required to correct the blighting conditions are beyond the capacity of the City and cannot be undertaken or borne by private enterprise acting alone or in concert with available governmental action. (c) The Amended Project Area is a predominantly urbanized area. With respect to the Existing Project Area, this finding is based upon the City Council's findings contained in the Previous Ordinance, which found that not less than eighty percent (80%) of the privately owned property in the Existing Project Area (I) has been or is developed for urban uses, or (2) is an integral part of an area developed for urban uses, or (3) is characterized by subdividing and sale of lots of irregular form and shape and inadequate size for proper usefulness and development, or (4) is characterized by the laying out of lots in disregard of the contours and other topography or physical characteristics of the ground and surrounding conditions; such finding was supported by the Agency's previous Report to City Council, and the Redevelopment Plan adopted by the Previous Ordinance is now final and conclusive. With respect to the Added Territory, evidence supporting this finding includes the Agency's 1993 Report to the City Council, which demonstrates that not less than eighty percent (80%) of the privately owned property in the Added Territory (1) has been or is developed for urban uses; or (2) is an integral part of an area developed for urban uses; or (3) is characterized by subdividing and sale of lots of irregular form and shape and inadequate size for proper usefulness and development; or (4) is characterized by the laying out of lots in disregard of the contours and other topography or physical characteristics of the ground and surrounding conditions. (d) The Amended Plan will redevelop the Amended Project Area in conformity with the Community Redevelopment Law and in the interests of the public peace, health, safety and welfare. Evidence supporting this finding includes the fact that the purposes of the Community Redevelopment Law would be attained by the Amended Project; by the elimination of areas suffering from economic dislocation pueL;9014_114241132763.I 5 or disuse; by the replanning, redesign and/or redevelopment of areas which are stagnant or improperly utilized, and which could not be accomplished by private enterprise acting alone without public participation and assistance; by protecting and promoting sound development and redevelopment of blighted areas and the general welfare of the citizens of the City by remedying such injurious conditions through appropriate means; and through the installation of new or replacement of existing public improvements, facilities and utilities in areas which are currently inadequately served with regard to such improvements, facilities and utilities. (e) The adoption and carrying out of the Amended Plan is economically sound and feasible. Evidence supporting this finding includes the fact that under the Amended Plan the Agency will be authorized to seek and utilize a variety of potential financing resources, including property and retail sales increment; that the nature and timing of public redevelopment assistance will depend on the amount and availability of such financing resources, including tax increment, generated by new investment in the Amended Project Area; that under the Amended Plan no public redevelopment activity can be undertaken unless the Agency can demonstrate that it has adequate revenue to finance the activity; and that the financing plan included within the Agency's Report to the City Council demonstrates that sufficient financial resources will be available to carry out the Amended Project. (f) The Plan Amendment conforms to the General Plan of the City of San Jacinto, including, but not limited to, the housing element of the General Plan, which substantially complies with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This finding is based on the finding of the Planning Commission that the Plan Amendment conforms to the General Plan for the City of San Jacinto. (g) (h) The carrying out of the Amended Plan will promote the public peace, health, safety and welfare of the City of San Jacinto and will effectuate the purposes and policies of the Community Redevelopment Law. Evidence supporting this finding includes the fact that redevelopment will benefit the Amended Project Area by correcting conditions of blight and by coordinating public and private actions to stimulate development and improve the economic and physical conditions of the Amended Project Area, and by increasing employment opportunities within the City. The condemnation of real property to the extent provided for in the Amended Plan is necessary to the execution of the Amended Plan and adequate provisions have been made for payment for property to be acquired as provided by law. Evidence supporting this finding includes the need to assemble sites for certain public facilities, to assemble developable units for economic activity and the prevent the recurrence of blight. (i) The Agency has a feasible method and plan for the relocation of families and persons who might be displaced temporarily or permanently from housing facilities in the Amended Project Area. The Agency also has a feasible method rulL:9014_114241a2763.1 6 and plan for its relocation of businesses. Evidence supporting this finding includes the fact that the Agency has adopted a plan for relocation of families, persons and businesses by Agency projects, and upon the fact that the Amended Plan provides for relocation assistance according to law, and the fact that such assistance, including relocation payments, constitutes a feasible method for relocation. Q) There are, or are being provided, within the Amended Project Area or within other areas not generally less desirable with regard to public utilities and public and commercial facilities and at rents or :prices within the financial means of the families and persons who might be displaced from the Amended Project Area, decent, safe and sanitary dwellings equal in number to the number of and available to such displaced families and persons and reasonably accessible to their places of employment. Evidence supporting this finding includes the information contained in the Agency's Report to the City Council that no persons are expected to be displaced as a result of the implementation of the Amended Plan, and that even if some persons were to be displaced there are sufficient existing dwellings which would be available to persons displaced by the implementation of the Amended Plan. (k) All noncontiguous areas of the Amended Project Area are either blighted or necessary for effective redevelopment and are not included for the purpose of obtaining the allocation of taxes from the area pursuant to Section 33670 of the Health and Safety Code without other substantial justification for their inclusion. With respect to the existing Project Area, this finding is based upon the City Council's findings contained in the Previous Ordinance. With respect to the Added Territory, this finding is based upon the evidence in the record. (I) (m) Inclusion of any lands, buildings, or improvements which are not detrimental to the public health, safety or welfare is necessary for the effective redevelopment of the entire area of which they are a part, and any such area is not included solely for the purpose of obtaining the allocation of tax increment revenues from such area pursuant to Section 33670 of the Community Redevelopment Law without other substantial justification for its inclusion. Evidence supporting this finding includes the fact that all properties within Amended Project Area boundaries were included because they were underutilized because of blighting influences, or were affected by the existence of blighting influences, or were necessary either to accomplish the objectives and benefits of the Plan Amendment or because of the need to impose uniform requirements on the Amended Project Area as a whole. Such properties will share in the benefits of the Amended Project. The elimination of blight and the redevelopment of the Amended Project Area couldinot reasonably be expected to be accomplished by private enterprise acting alonewithout the aid and assistance of the Agency. Evidence supporting this finding includes the existence of blighting influences, including the lack of adequate public improvements and facilities, and the inability of individual owners and developers to economically remove these blighting influences without substantial public assistance. eut,:9014_I 14241 a2763. I 7 (n) The effect of tax increment financing will not cause a significant financial burden or detriment to any taxing agency deriving revenues from the Amended Project Area. With respect to the Existing Project Area only, this finding is based upon the City Council's findings contained in the Previous Ordinance. With respect to the Added Territory, evidence supporting this finding includes the fact that all affected taxing agencies were consulted with or had the opportunity to be consulted regarding the fiscal effects of the Plan Amendment, and the fact that with regard to certain taxing agencies, the Agency has or will enter into fiscal detriment mitigation agreements under which it will make payments to or on behalf of such agencies to alleviate identified financial burden or detriment. Section 3. The City Council is satisfied that permanent housing facilities will be available within three years from the time residential occupants of the Amended Project Area, if any, are displaced, and that pending the development of such facilities, there will be available to any such displaced residential occupants temporary housing facilities at rents comparable to those in the City of San Jacinto at the time of their displacement. Evidence supporting this finding includes the City Council's finding that no persons or families of low and moderate income shall be displaced from residences unless and until there is a suitable housing unit available and ready for occupancy by such displaced persons or families at rents comparable to those at the time of their displacement. Such housing units shall be suitable to the needs of such displaced persons or families and must be decent, safe, sanitary and otherwise standard dwellings. Section 4. Written objections to the Plan Amendment filed with the City Clerk before the hour set for hearing and all written and oral objections presented to the City Council at the hearing having been considered and, in the case of written objections received from Amended Project Area property owners and affected taxing agencies, having been responded to in writing, are hereby overruled. Section 5. The Final EIR for the Plan Amendment, a copy of which is on file in the office of the Agency and in the office of the City Clerk, having been duly reviewed and considered, is hereby incorporated into this Ordinance by reference and made a part hereof. AU activities undertaken by the Agency and/or the City of San Jacinto pursuant to or in implementation of the Redevelopment Plan, as amended by the Plan Amendment, shall be undertaken in accordance with the mitigation measures and Mitigation Monitoring Plan set forth in the Final EIR, and the Agency shall undertake such additional environmental review or assessment as necessary at the time of the proposed implementation of such activities. Section 6. That certain Amendment No. One to the Redevelopment Plan for the San Jacinto Redevelopment Project, the map contained therein, and such other reports as are incorporated therein by reference, a copy of which is on file in the office of the Agency and the office of the City Clerk, having been duly reviewed and considered, together with the Redevelopment Plan which was adopted by the Previous Ordinance, is hereby incorporated into this Ordinance by reference and made a part hereof, and as so incorporated is hereby designated, approved, and adopted as the official redevelopment plan for the Existing Project, as amended by the Plan Amendment. pusL:4014 1I4241B2763.1 8 Section 7. In order to implement and facilitate the effectuation of the Amended Plan hereby approved, this City Council hereby: (a) pledges its cooperation in helping to carry out the Amended Plan, (b) requests the various officials, departments, boards, and agencies of the City having administrative responsibilities in the Amended Project Area likewise to cooperate to such end and to exercise their respective functions and powers in a manner consistent with redevelopment of the Amended Project Area, (c) stands ready to consider and take appropriate action upon proposals and measures designed to effectuate the Amended Plan, and (d) declares its intention to undertake and complete any proceeding, including the expenditure of moneys, necessary to be carried out by the City under the provisions of the Amended Plan. Section 8. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency, whereupon the Agency is vested with the responsibility for carrying out the Amended Plan. Section 9. The City Clerk is hereby directed to record with the County Recorder of Riverside County a description of the land within the Amended Project Area and a statement that proceedings for the redevelopment of the Amended Project Area have been instituted under the Community Redevelopment Law. Section 10. The Building Department of the City is hereby directed for a period of two (2) years after the effective date of this Ordinance to advise all applicants for building permits within the Amended Project Area that the site for which a building permit is sought for the construction of buildings or for other improvements is within a redevelopment project area. Section i l . The City Clerk is hereby directed to transmit a copy of the description and statement recorded by the City Clerk pursuant to Section 9 of this Ordinance, a copy of this Ordinance, and a map or plat indicating the boundaries of the Amended Project Area, to the Auditor -Controller and Assessor of the County of Riverside, to the governing body of each of the taxing agencies which receives taxes from property in the Amended Project Area, and to the State Board of Equalization, within thirty (30) days following the adoption of the Plan Amendment. Section 12. The City Clerk is hereby authorized and directed to certify to the passage of this Ordinance and to cause the same to be published in a newspaper of general circulation which is published and circulated in the City of San Jacinto. Section 13. If any part of this Ordinance or the Plan Amendment which it approves is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance or of the Plan Amendment or Amended Plan, and this City Council hereby declares that it would have passed the remainder of the Ordinance or approved the remainder of the Plan Arnendment if such invalid portion thereof had been deleted. Section 14. This Ordinance shall be in full force and effect thirty (30) days after passage. Wm.:9014_11424182763.J 9 Introduced and first read at a regular meeting of the City Council of the City of San Jacinto held the 21st day of December, 1993, and thereafter PASSED AND ADOPTED at a regular meeting of said City Council held the 28th day of December, 1993, by the following roll call vote: AYES: COUNCILMEMBERS: Ford, Solorio, Williams, Mayor Hafliger NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ABSTAIN: COUNCIL MEMBERS: Leahy Puul.:9Q14_11424182763.1 10 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF SAN JACINTO ) Richard Brewer I, , City Clerk of the City of San Jacinto, do hereby certify that the foregoing Ordinance No.992 was introduced at a regular meeting of the City Council of the City of San Jacinto, held on the 21st day of December, 1993, and that the same was duly passed and adopted at a regular meeting of said City Council held on the 2Sth day of December, 1993, by the following vote of the members thereof: AYES: COUNCIL MEMBERS: Ford, Solorio, Williams, Mayor t-lafliger NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: Leahy AND I FURTHER CERTIFY that the Mayor of the City of San Jacinto signed said Ordinance No. 9 9 2 on the2,$.t tday of December, 1993. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Jacinto this 29 day of December, 1993. CIT CLERK OF JACINTO (SEAL) Richard Brewer I, , City Clerk of the City of San Jacinto, do hereby certify that the foregoing is the original Ordinance No. Sand was published once in theitemet News on the 4 day of Jan. 1994. Ck?s'u owl ! e )1 f. 2 ITY CLERK OF THE CITY OF SWINI JACINTO pueu:9O14_II424162763.1 I SECTION D Preliminary Assessment of the Proposed Method of Financing, including Economic Feasibility of the Amendments and the Reasons for the Continued Inclusion of Tax Increment and the Proposed Increase in the Tax Increment and Bonded Indebtedness Caps SOURCES AVAILABLE TO THE AGENCY FOR FINANCING REDEVELOPMENT Redevelopment Law Section 33344.5 requires that a Preliminary Report include information on the proposed method of financing, including information on the economic feasibility of the Proposed Merged Project Area and the reasons for the continued inclusion of tax increment financing, or in this situation, the reasons for the proposed increase in the tax increment and bonded indebtedness caps. The Agency intends to continue to finance redevelopment of the Proposed Merged Project Area from the following resources: ■ Tax Increment Revenues; ■ Bonded Debt; ■ Financial Assistance from the City, County, State of California and/or Federal Government; • Proceeds from lease or sale of Agency -owned property; • Loans from private financial institutions; and • Any other legally available source. The more typical sources of redevelopment financing may be employed as described below. LEASE OR SALE OF AGENCY -OWNED PROPERTY Under the existing Redevelopment Plans and the proposed Amended and Restated Plan for the Proposed Merged Project Area, the Agency may continue to sell, lease, or otherwise encumber its property holdings to pay the costs of project implementation. PARTICIPATION IN DEVELOPMENT If the Agency enters into agreements with property owners, tenants, and/or other developers that provide for revenues to be paid or repaid to the Agency, such revenues may be used to pay project implementation costs. PROPERTY TAX INCREMENT If the Amendments are successfully adopted and the tax increment limits are merged, and thereby increased, the Agency will continue to use property tax increment as provided for in Redevelopment Law Section 33670 (b), and as authorized in the Redevelopment Plan, to fund redevelopment activities. Tax increment revenue is intended to be used to pay indebtedness incurred by the Agency. Indebtedness includes principal and interest on loans, monies advanced, or debts (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, redevelopment activities. The current Redevelopment Plans allows the Agency to collect $2.699 billion of tax increment revenue from the San Jacinto Project Area and $5 million of tax increment revenue from the Soboba Springs Project Area. Through fiscal year 2007-08, the Agency has collected approximately $4.3 million towards the Soboba Springs limit. Additionally, the Agency has collected approximately $37 million in San Jacinto Project Area (Original and Amendment Area). The proposed Amendments would enable the Agency to continue to collect 52 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT tax increment revenue from the Soboba Springs Project Area to fund projects and programs that will eliminate blight in the Proposed Merged Project Area. Consistent with Redevelopment Law, the Redevelopment Plan incorporates certain time limits that affect the Agency's ability to use and collect tax increment revenue. The time limit regulating how long the Agency may collect tax increment revenue is currently 10 years after the termination of the effectiveness of the redevelopment plan, or June 28, 2035 for the Original San Jacinto Project Area, December 28, 2043 for the Amendment Area, and December 27, 2038 for the Soboba Springs Project Area. Tax increment revenues will be distributed to address an array of obligations. As required by Section 33334.2 of the Redevelopment Law, twenty percent (20%) of the Proposed Merged Project Area's tax increment revenue will be deposited into the Agency's Low- and Moderate- Income Housing Fund for the purposes of increasing, improving, and preserving the community's supply of low and moderate income housing. This is not a change from current Agency legal obligations. The remaining 80 percent of the tax increment revenue will be used to pay for Agency obligations to taxing entities, debt service costs, and other program expenditures such as infrastructure, capital facilities, and economic development programs within the Proposed Merged Project Areas. The Amendments propose to combine the tax increment limit for both the San Jacinto and Soboba Springs Project Areas to the amount currently established for the existing San Jacinto Project Area, or $2.699 billion, thereby increasing the tax increment cap for the Soboba Springs Project Area. BONDED DEBT The Agency has the authority under Redevelopment Law, and as authorized in the Amended Plan, to issue bonds secured by tax increment revenue. Agencies typically use this authority for early implementation of needed projects to address problem conditions in a redevelopment project area. Rather than waiting for cash to accumulate to pay for needed projects, bond proceeds can provide significant up -front capital to implement projects expeditiously. This technique also helps to address the problem of inflating project costs because construction projects can be put in place on an earlier schedule. The Agency issued tax allocation bonds for the Original San Jacinto Project Area only in 1993 and completed a bond refunding in 2005 and there is currently approximately $9 million in outstanding principal to be paid on these bonds. The Agency has an existing bonded indebtedness limit (i.e., the amount of bonds, secured with tax increment, that can be outstanding at any one time) in the San Jacinto and Soboba Springs Project Areas of $408 million and $5 million, respectively. The Amendments propose to merge this limit to that of the existing San Jacinto Project Area, or $408 million total. This merging of the bonded indebtedness limit has the effect of increasing the limit for the Soboba Spring Project Area. This will allow the Agency to leverage future tax increment into bond proceeds that may be used in the near -term to pay for needed improvements. FINANCIAL ASSISTANCE FROM THE CITY, COUNTY, STATE AND/OR THE FEDERAL GOVERNMENT The Agency may legally obtain loans and advances from the City for planning, construction, and operating capital, if the City has the financial capacity to do so. The City may also defer payments on Agency loans for land purchases, benefiting the Agency's cash flow. Such assistance may also be employed to meet short term cash flow needs. As available, other funds such as state -apportioned road funds and federal Community Development Block Grants (CDBG) will be appropriately utilized in conjunction with Agency funds for costs of project implementation. The City receives CDBG grant money on an annual basis to provide housing and economic opportunities to residents, particularly those of low and moderate income. The HOME Program also provides federal funds to state and local governments designated for increasing the supply of affordable housing. Participating jurisdictions must have a current and approved action plan that RSG 53 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT describes how the jurisdiction will use its HOME funds. The City will continue to use available HOME funds for eligible projects. OTHER AVAILABLE SOURCES Any other loans, grants, or financial assistance from the federal government, or any other public or private source will be utilized, as available and appropriate. The Agency will also consider use of the powers provided by the Redevelopment Law to provide construction and other funds for appropriate projects. Where feasible and appropriate, the City/Agency may use assessment district and/or Mello -Roos bond financing to pay for the costs of public infrastructure, facilities, and operations. The City has previously issued such bonds to help implement redevelopment projects. Assessment districts are becoming more widespread in the state as a means to pay for improvements. Assessments are levied upon properties within a designated area to fund improvements directly benefitting that area, and are paid in association with property tax. The use of assessment districts is limited and regulated by state law, and are most commonly related to street improvements, landscape and lighting, and parks. However, in an area such as the Proposed Merged Project Area that already faces challenges in attracting private investment, imposing additional taxes through assessments on property may in fact deter private investment by increasing costs paid annually by property owners. Additionally, the City Council cannot form a district over a property if the owner disapproves, making creation of new districts very challenging. TAX INCREMENT PROJECTIONS The primary revenue source of financing implementation projects is the continuation of the collection of tax increment revenues from the Project Area. RSG prepared preliminary forecasts of tax increment revenues for the Project Areas based on the assumptions noted below. • Growth Rate: Assessed values increase each year based upon the maximum inflationary rate of 2%. • Effective Tax Rate: To convert annual net incremental valuation into estimated gross tax increment, a 1% percent factor was applied. • Housing Set -Aside Revenues: As required by Section 33334.2 of the Redevelopment Law, unless certain findings are made, the Agency will continue to deposit 20 percent of the tax increment revenues generated by each of the Project Areas into the Agency's Housing Fund for the purposes of increasing, improving, and preserving the community's supply of affordable housing. • Payments to Affected Taxing Agencies: Pursuant to Section 33401 of Redevelopment Law (as it read when the project areas were adopted), the Agency entered into pass through agreements with the County (including the General Fund, Library, and Flood Control District), the San Jacinto Valley Wide Recreation and Parks District, the San Jacinto Unified School District, the San Jacinto Valley Cemetery District, Eastern Municipal Water District, the San Jacinto Resource Conservation District, the San Jacinto Community College District, and the County of Riverside Superintendent of Schools. Additionally, the fourth amendment to the San Jacinto Redevelopment Plan obligated the Agency to make payments pursuant to Section 33607.7 of the Redevelopment Law ("Statutory Payments") to the taxing entities that do not have pass through agreements with the Agency. Table D-1 presents a summary of the net tax increment that will be available to fund future projects if the Amendments are successful. Generally, approximately $134 million in net tax increment will be available over the next 35 years for non -housing projects and $51 million for housing projects. Additionally approximately $112 million will be paid to affected taxing entities. RSG 54 5 Q �F§s 6§a3 ggilHE a E ;� � .1 'I p F�o $ - wmSab<<RF nn wow o� 'i ya S'3 FC' Se FFnR=:§F 3 F A = FSF'�'�,'S�$v^ :„eC�be,. SFe .ter .tn ,'a:a a. nr+ h--n d - 6" 17 t 5<a€ sc S "s 3@E Es< p e. ®a P- 3 I F g§ p$ 3 A . % B -aa $FR$ ERas$mr-a -M E- hI g=,!AEEEiA QMR5R Fgii-,': RXRCF EFAUE7g R Fia YgFF AWAg105Mk FRSe n E e `- sE�F.Yw g T i b - S ss a 3 z ,rnE FAm axaW$aaa::aoc� a$^g.;AI GNsas a'� �a 63yn » .,,if, RC®Fen o�®'R2q��gPe�xSr ar�-6=aria"s sire?Ns='i's'6��? c � a I ai�FC� . ,. !c ; e s - g A'6 rcV S.oL c ,4F :3 G SIg�F.nkm A e rF e 8' fi E n J F m F n$: 5 $$ F F G,& s ®o ^ F. o$ F o n- FL�a S,NFnF SFh'i E2'..$oo$:"c'.;F�hn.n t gg qq pp pp �y�y p N�'j9' n $ v_ K N ? $ $ § Ug $ 71 �. d p ,u$o'ae ,a sf'a f�. ;z.. T,Ras&^Riiimm .n _ Qe0.,2- � "Qa.N "aa:7—.MMgViiYe e< F: M e n F `� N F$ e e: g m u n ,£ F s m m e: n P� ' NR, N& r--ii F, & ry.ara m -Fi n - .F �o » z � s`98. �eY9 _zSFM£fmG� s qn F rc a w i m z ,, SFek7FaBR F 3RAQa. e.o R- E L' $nm nnF'. rv. o!n FnL��FF&aFed ✓F$'1 NN Nn4NrJN4Nivrrr rGFRFfFh ry F F g ..^ $ , 8$ g R� N%= F' F F C ° E § m m K _ry k R i i R i i - F G F: m 8 p P,, F F F m g:. A o 0 0 F' N„ qq . .. eri g"F �.$m M a di$`M'$ ,�$f a vvenAuu$r�v�i r�nr$$ . 3 o F �r 6 ¢>" �d'2�5d.idr7dA_rvNM1 dJ.S:ddfd rf m7- S. 3 A VARik RRdRRMRRR RFRFFFe 2 8a68R FSaBar SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT TABLE 0-2 TAX INCREMENT PROJECTIONS San Jacinto Prefect Area - Original Area Assessed Value Forecast Secured 11 Iza 2% Unsecured per year @0%per yr. Tole) Gross Cumulative Gross Tax Total Total Total A11 Estimated Total TI Tax Gress Housing County Increment Rev. Ag All Taxing Agency Net Rev. Housing Plus Incremental Increment Tax Fund Admin. Less Existing SB211 Payments Less Housing Net TI after Values 1,00e4 Increment Deposits Fee Co Admin. Pass-thnsugbs pass-Ntoughs 8 Pa55-throughs all Pass-thruughs Taxing Agency Shares of General levy 27 6 2009-10 200 499529692 25,655,153 426,265,735 374,140,273 3,741,403 7404,251 748,281 (44,054) 3,697.349 (1,573512) (74,465) (1648,277) 1,300,791 2,049,072 28 7 2510-11 2_0% 408542,28E 25,655,103 434,298,389 3E2152,867 3,521,529 11,225,779 764.356 (44,997) 3,776531 (1 607,723) (77,8531 (1,685,577) 1,326,649 2,090,955 29 0 2011-12 2014 416. 515,132 25656,)23 442,471,235 590,325,713 5,903,257 15,129036 780651 (45,960) 3.857,297 (1642,311) (81,3101 (1,723,621) 1,353,025 2.133576 30 9 2012-13 2654 425,151434 25,655,103 450,507,557 398,662,015 3986020 19,115657 797,324 (45,9411 3,939,579 (1677590) (64,836) 14762425) 1,379,919 2,177,253 31 10 2013-14 20M 453654,463 25,656,103 459310,565 407165,044 4,071,650 23,187,307 814,330 (47943) 4,023?08 (1.713573) (68,4321 (1,502504) 1,407,373 2,221.704 32 11 2014-15 200 442,327.552 25,656,103 467,983,555 415,838.133 4,155,581 27345608 031,67E (48,964) 4,109,410 (1,7511.274) (98,151) (1,845,455) 1,432,187 2,263,965 33 12 2015-16 2.0% 451,174.103 25,656,103 476,030,20E 424,684084 4,246547 31592,535 845369 (50,005) 4,196541 (1757,757) (102,0651 (1,589,773) 1,457,699 2,307,069 34 13 2016-17 2,Ox 400,197,555 25,656,103 48585368E 433,708,166 4,337582 35,929,617 867416 (51068) 4,286,014 (1825858) (109,0871 (1,934,976) 1,483,622 2,551,038 35 14 201748 2014 459401537 25,656,103 495,057,640 442.912,115 4.429,121 40,355738 885824 (52,152) 4,376,370 (1,854.532) (116,2501 (1,981,052) 1,510,064 2,595,885 36 15 2018-19 2.0% 47078556E 25,656,103 504,445,671 452,300,149 4,523,001 14,581740 904,600 (53,257) 4,969,744 (1,904,553) (123,5541 (2,025,168) 1,537036 2,441,636 37 16 2019-20 't0% 485,365,359 25,655,103 514021,4E2 451,075,940 4,618,759 49,500499 923,752 (54,355) 4,564,375 11945066) (131,0071 (2,076,074) 1,564,549 2488,301 38 17 2020-21 2014 498,132.666 25,656,103 523788,769 471,613,247 4,715,932 54,216,931 943,286 (55535) 4650,898 (1,986,389) (138,608) (2,124,997) 1,592,614 2,555,901 39 18 2021(22 2094 508,095,320 25,656,103 533,751,423 481,605,901 4,516.059 59532,990 963212 (56,708) 4,759,351 12528,537/ (148,361) (2,174,699) 1621,242 2584,453 40 19 2022-23 2084 51825722E 25,656,103 543,913,329 491767.807 4,917,670 63,950665 983,53E (57,91/4) 4.559,774 (2,071,526) (154,269) (2,225,795) 1,650,443 2,633,979 41 20 2023-24 200 525,522,371 25,655.103 554,278,474 502,132,952 5021330 68.971,998 1.004,26E (59,125) 4,962,205 (2,115,374) (142,335) 12,277,7091 1,685,230 2,654496 42 21 2024-25 20% 539,194,818 25,555,103 554,855,921 512,705,399 5,127,054 71.099,052 1.025,411 (60570) 5.066,604 (2,160,097) (170,562) 12,330,665) 1,710,514 2.736525 43 22 2025-25 2.0% R49.978 714 25,556,103 575,634817 523,489,295 5,254,593 79.333,945 1,046,979 (61639) 5,173,254 (2,205,713) (175,954) (2,384,668) 1,741507 2,760,585 44 23 2026-27 2.014 560.978209 25,656,103 586,634,392 554,988,870 5,344,889 84,675831 1,068978 (62935) 5,201,954 (2,252.240) (157,511) 12,439,756) 4773,222 2.842,199 45 24 2027-28 20% 572,197854 25,655,105 537,055,957 545.7014435 5,457,084 90,135,918 1,091417 (64,25E) 5,394829 (2,119 453) (196,245) (2,315096) 1,956,714 3.677.131 45 25 2028-29 200 583641,812 25,656,103 609,297,915 557,152393 5,571524 95,7(17,442 1,114305 (65,603) 5,505,921 (2,932,760) (205,151) (3,137,910) 1,253,706 2,3684110 47 26 2029.30 20•b 595,314,648 25656,103 625,970,751 558,825,229 5,588252 101,395,699 1137,655 (66,978) 5521275 (2,994,203) (214,235) (3,205,435) 1,276,186 2.412,837 45 27 2030-31 205t 507220,941 25,656,103 632877,044 580,731,522 5,557,315 107,203009 1,161463 (68,379) 5,738,955 (3,556875) (223,500) (3,280,376) 1,297,097 2,455,560 49 28 2031-32 2084 619,365360 25,656,103 645021,463 592,675,941 5,925,759 113,131769 1185,752 (69,809) 5,858,950 (3,120,802) (232,951) (3,353,753) 1,319,445 2,505,197 55 29 2032-33 21F.6 531752,667 25,654,103 657,408,770 505,26324E 6,052632 119,184401 1,210526 (71,265) 5,961,364 (3156007) (242,5901 (3,418,5951 1,341,245 2,552,767 51 30 2033-34 2.014 544,387720 25656,103 676,043,823 617,898,301 6,178,993 125,363,384 1,235197 (72,756) 6,106,227 (3.252,516) (252,4231 (3,504,939) 1,360,492 2,601.255 52 31 2034-35 2n94 657.275 475 25056,103 682,931,578 630,706,056 6,357,561 131,571,245 1,261,572 (74,273) 6.235.587 (3,320.355) (262,452) 13,582,007) 1,389,205 2.559,750 Notes: Totals 128005,397 25,5111,579 (1,5(17,263) (58,096.179) (4,052,192) (62,148,371) 35,751,064 64,352,761 it Includes homeoxmer exomp5on values and 500080E utility 27 eye6de rate has been decreased ever a Eve year paned. 31 ERAF cm0l098en is limited to 2004-05, since no wating o, pending Ieglsladon calls for theeeelmege00 et Ms payment/ 418 5l County Agreement provides far n wallas increment limit from the County shale (General and Library Fund) of 113,380 000 Thu limas net or Dents paid hack to the County ter Mime Me Nndc. Once IXe cap Is reached the County vnq keep 100% el Meg General and Library Fund shale or lax Increment generated by the Original Area. Base upon prejec0ons the original Area vn8 hit this cap in Fy2027-25. 6I R 7l Agreements provide that payments le these Agencies (withheld by Ne County) are net of County Admn lee earl any ERAF payments. FSG 56 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT TABLE D-3 TAX INCREMENT PROJECTIONS San Jacinto Project Area - 1993 Amendment Area Assessed Value Forecast Secured/1 Unsecured 0%per Total Incremental Values Gross Cumutasve Total Total TI Net of Total Estimated Total TI Tax Gross Housing Tax Inc -Net County Housug & Alt Net Rev. Housing Pius Increment Tex Fund Housing -Before Admix Co, Admin Fee Pass-throughs Less Housing Net TI after 1.00% Increment Deposits Pass -through pee 6 Pass-throughs all Pass-throughs BY 1993 86,949,164 18 2009-10 20% 261,720,644 20,399.985 232,119,730 196,070566 1960,706 3,870,094 392,141 1,501,555 (22,5201 1,545,744 (9466231 599,116 991,257 17 2010-11 2,090 256.955,057 20.309,086 287 354,143 201,304,979 2.013,65E 5,583,143 402,619 1 610,440 (23,430) 1,587,610 (371,3051 915,105 1,017.715 18 2011-12 2008 272,294,158 20.399685 292,693,244 206644080 2,956441 7,949.584 413,288 1653,153 (24,051) 1,929,102 (997,6031 631,413 1,044,701 19 2012-13 2.0% 277,740,042 20,399,086 296,139,128 212,059,954 2,120.900 10,070,484 924,180 1596,720 (24,585) 1.672,035 (1,023,9371 643,04B 1,072,228 20 2013-14 2022 283,294,842 20,399,088 3/369392/ 217644754 2,176,448 12,246,931 435,290 1741,158 (25,331) 1,715,827 (7,060,8111 665,01E 1,109,305 21 2014-15 2.0% 288960,739 20,399,08E 309,359,325 223,310661 2,233,197 14480,038 946,621 1,786,485 (25,991) 1.759,495 (1,078,402) 682,092 1,128,719 22 2015-16 2,0% 294,739,954 20,399,086 315,139,040 229,089,576 2,290,899 16,770,937 955,1E10 1832,719 (26553) 1,806,055 (1,106,5451 599,511 1,157,691 23 2018-17 2055 300,634,753 20.39.9085 321633,833 234,984,575 2,249647 19,120734 469,969 1,879,377 (27,349) 1.852,528 (1,135,2501 717,270 1,187,24? 24 2017-18 2,0% 306,547,448 20.399,086 227 046534 240,997,370 2,409,974 21,539,757 451,995 1,927,971 (28,049) 1,899,930 (1,164,5301 735,460 1,217,394 25 2018-19 2e05 312.780,397 20.399.08E 333,179,403 247,130.319 2,471,393 29002,060 494,251 1.977,043 (28.753) 1,948,280 (1,194,3951 753844 1,248.145 26 2019-20 2814 319,036,005 20.399,985 339,435,091 253,385.927 2,533.159 25,535,920 506,772 2,027,187 (29,491) 1,997,59E (1,224,858) 772,739 1.279,510 27 2021-21 2.0% 325,416725 29,399,085 345,815,811 259.766847 2,5975E5 29,133,58E 519,533 2,175,133 (30,234) 2547,390 (1255,930) 791,970 1.311,503 28 2021-22 20% 331925,060 20399,086 352,324,146 265,274,982 2,662,750 31736,336 532,550 2,130,209 (30991) 2,099,209 (1,257,623) 811686 1344,136 29 2022-23 2.0% 338,553,551 20,399,086 358 962,647 272,913483 2,729,125 34,525,471 545,827 2,183,308 (31,764) 2,151 544 (1,319,950) 531,594 1,377,421 30 2023-24 2.0% 345,334,832 2039.9,086 355.733,916 279,654,754 2,796,848 37322,318 559,370 2.237,478 (32,552) 2,209,925 (1,352,923) 552,003 1,411,372 31 2024-25 2,005 352,241,529 20,399,986 372.640,615 285,591,451 2,865,915 40,168,233 573,183 2,292,732 (33356) 2,259.376 (1386,557) 1172,819 1,446,002 32 2925-26 20% 359,286,359 20,399086 379885,445 293,633,281 2,936,363 43,124596 587,273 2,349090 (34.175) 2,314.914 (1,420,862) 394,052 1,481,325 33 2025-27 2.0% 366472,086 20,399,086 386. B71,172 309,822.005 3,003220 46,132,616 601644 2,406,576 (35612) 2,371,564 (1,455,854) 915,710 1,517,354 34 2027-23 2,0% 373,801,528 20,399,066 394,201,614 303,151450 3,081,515 49,214,339 616303 2.465,212 (35,865) 2,421.395 (1,491696) 937,811 1,554,103 35 2028-29 2.0% 381,277,559 26,399,086 491,575,545 315,627,401 3,156,275 52,370,605 631,255 2,525020 (36,735) 2,488.265 (1,527,951) 960,333 1591,58E 36 2029-30 2,0% 388,993,110 20,399,066 409,392,196 323,253.032 3,232,530 53603,135 646.506 2,586,024 (33.523) 2,548,401 (1,666,086) 583316 1,629,822 37 2030-31 2.0% 335,381,172 20,399,086 417,080,258 331,031.994 3,310,311 58,913.945 552,062 2,648,240 (38,528) 2,616721 (1,602,9611 1,096,759 1,968,321 38 2031-32 2.0% 4114614,796 20,39908E 425,613682 338,954,713 3,389,847 52,303594 677,929 2,711713 (39,4511 2,572,265 (1,641,595) 1,030,671 1,708,909 39 2032-33 2.0% 412707,091 20,399,086 433,105,177 247,057,013 3470,570 55,773,654 534.114 2,776,458 (40,393) 2,736,0E3 (1,681,0021 1,155,061 1749,175 40 2033-34 2A06 420,961,233 20399,056 441350319 355,311155 3,553,112 69.326,775 7111,522 2,342,459 (41,354) 2,811,135 (1,721,196) 1,079,939 1,790,551 41 2034-35 2.0% 429380,45E 20399,086 449,779,544 363,730,330 3,637,304 72,954,073 727461 2,909,843 (42,334) 2,867,509 (1,752,195) 1,105,314 1832,775 42 2035-36 2.0% 437.968,053 20,399,085 458,367,153 372,317,989 3,723180 76,587,259 744.536 2,978,544 (43,333) 2,935,211 (1,504,014) 1,131,197 1.875,533 43 203E-37 2004 446,727,428 20,399,086 457,125,514 381,077,350 3,010,774 50,498,032 752.155 3,040619 (44,353) 3,014,265 (1,846,664) 1,157,598 1,919,752 44 2037-36 2.0% 455.561,377 24399,98E 476,091,053 390011,999 3900,119 64,398.151 780.024 3,120095 (45,393) 3,074702 (1,890,176) 1,184,526 1,464,550 45 2038-39 20% 464775217 20,399.086 415,174,303 399,125,139 3,991,251 88,389,403 798.250 3,193,001 (45,453) 3,146,548 (1,934,555) 1,211,993 2,010,243 46 2033-40 2.0% 474.070,721 20,399,086 494,469,807 408,420,643 4084,205 92,473,609 8161341 3,257,355 (47,535) 3,219 830 (1,979.0201 1,240,010 2,056 851 47 2040-41 2005 483552,135 20399,06E 503,951,221 417,902,057 4,179,021 96,652630 835,894 3,343,216 (48,639) 3,294,578 (2,025,991) 1,263,686 2,104,390 48 2041-42 2.0% 493,223,178 20,399,086 513,622,264 427,573,190 4275,731 100,925,261 855,196 3.420,5135 (49,764) 3,370820 (2,073,086) 1,297,735 2,152,1381 49 2042-42 2.0% 593087,642 20,399,086 523,485.723 437,437,5E4 9,374.376 105,302,736 874.875 3,499,501 (50,913) 3,448,538 (2,121,122) 1,327,466 2,212,341 50 2043-44 2.0% 513,149,394 23,399,086 533 548,499 947,499 315 4,474,993 109,777,730 894,999 3,579,995 (52,084) 3,527,911 12,170,119) 1,357,792 2,252,790 Totals 21 573,668 (52,213,783) 32,825,431 54,399 099 1l news, hamew.ner exemption values and secured utsly 21 County Sept or Schools pass -through payments heee0 upon leamula pr0vl0ed in Secaon 32v0/ RSG 57 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT TABLE O-4 TAX INCREMENT PROJECTIONS Sobobe Springs Project Area Assessed Value Forecast EMWO Gross Tax Inc. Total Total T. Secured/1 Tax Override Gross Cumulative Housing County Tax Inc Tax Inc. Netof EMWD SJVCO Net Non- 1 (Added value Unsecured Total Incremenlal Increment Reveom/2 Tax inc. Tax Inc. Fund Admin. Net of Housing Pass Through Pass Through Housing 10 8 &2%inflator) Q0% per yI. Values 1.0914 0.00450% Revenue Revenue Deposits Fee Admin & Admin 0.1151 0.0048 Revenue 19D%Pass BY 1983-84 3,066,002 26,162 3,094,164 Thor to EMWO 3,872,925 27 2900-10 2.00 55,164618 190,788 55,375,406 52.309,404 523,094 2.355 525,449 4,912,680 1115,090 (8,131) 518,317 414,220 (48,403) (2,031) 363,794 20 2010-11 200 56,286,311 190,758 56,479,099 53,413,097 534,131 2,404 538,535 5,449.216 107,307 (6,260) 530,275 422,965 (49,424) (2,074) 371,470 29 2011-12 2.e% 57414,077 190700 57,604,865 54538,863 545,369 2,455 597,844 5,997,059 109,569 (6,392) 541,451 431,882 (50,466) (2,11B) 279,299 30 2012-12 205 58562,358 190,78E 58,752,146 55.6137144 556,871 2,507 559,370 6,556,437 111,878 (6,527) 552.851 440,975 (51,528) (2,162) 387,285 31 2013-14 205 59733606 190786 59,924,394 56,655,392 568584 2,559 571,143 7,127,550 114,229 (6664) 564,479 450,250 (52.612) (2,265) 395.431 32 2014-15 2.0% 60,926,276 190,788 61,119,066 58,053064 580,531 2,613 583.144 7,710,724 115,629 (6,804) 578,330 459,711 (53,717) (2,254) 403,731 33 2015-18 200 62,146,843 190,788 62,337631 59271629 592,716 2,560 595,364 8308,108 119,077 (6,947) 506437 469,360 (54645) (2,301) 412,214 34 2016-17 20% 63,389,780 190,700 53,550,555 80514,566 605146 2,724 607,072 8,913,978 121,574 (7,093) 600,777 479,203 (55,915) (2,350) 420,85a 35 2017-15 2,0% 64.657576 100788 64,546,364 61,782,362 617,824 2,781 620,605 9,534,552 124,121 (7,241) 613,363 489,242 (57,168) (2,399) 429,575 35 2018-19 2,60 65,950,727 190 as 66,141,515 63.075,513 639,755 2,839 633,594 10,160,177 126.719 (7,393) 626,201 499,482 (58365) (2,449) 439,566 37 2019-20 300 67.269,742 190,700 67,460,530 64394,528 643,945 2,899 646,844 10,815,820 129,369 (7,548) 639,296 509,927 (59,585) (2,500) 447,842 38 2020-21 209 66615,137 199,786 68,805,925 65,738923 657399 2,959 660,350 11,475,379 132,072 (7,705) 652653 520,581 (60830) (2.553) 457,199 39 2021-22 3A5 69,987,439 190,788 70,178,227 67,112,225 671,122 3,021 674,143 12,149,522 134,829 (7,868) 666,277 531,448 (82,100) (2,606) 466,742 4D 2022-23 2.016 71387,168 130,788 71,577,976 66,511.974 685,125 3084 688,204 12,837,725 137,641 (8,03D) 680,173 542,533 (63,3951 (2,669) 476,477 41 2023-24 205 72,814932 190,7613 73,005 ]20 89,939718 699,397 3,148 702,545 13,549,271 149,509 (8,198) 694,348 553,839 (64.716) (2,716) 466,407 42 2024-25 20% 74271,231 190,788 74,562,019 71396,017 713,96D 3,214 717,174 14,257,444 143,435 (8,360) 708,80G 565,371 (66064) (2,772) 496,535 43 2025-26 200 75.756,655 190,788 75,947,443 72,8131.441 728,814 3,281 732,695 14,959,539 146,419 (8,542) 723,553 577,134 (67436) (2,830) 506,855 44 2026-27 2,014 77271,768 190,768 77,462.575 74396.574 743,966 3,349 747,314 15,726,854 149,463 (8,720) 738,595 589,132 (68,849) (2,8691 517,463 45 2527-28 2016 7(1,817,224 190,788 79,0E18012 75,942,010 759,420 3,41B 762,838 16,499,692 152,558 (6,901) 753,937 601370 (70270) (2,949) 528,151 40 2028-29 20% 60,393,569 190,788 89,594,357 77,516655 775,154 3,489 778,673 17,278,365 155,735 (9,086) 769.587 613,652 (71,729) (3,010) 539,113 47 2029-30 30% 82001,440 190,756 82,192,228 79,126,226 791,262 3,562 794,024 18,073,109 158,965 (9,274) 785,550 625,585 (73,217) (3,072) 550,296 48 2030-31 3014 83641,469 190,788 63,532,2557 80,766,255 507663 3,635 811,298 16664,487 162,260 (0,457) 801,831 639,572 (74.734) (3,135) 561,701 49 2031-32 2.0% 65314,298 190.788 85,505,086 B2,439.054 B24,391 3,711 828,152 19,712,585 165,620 (9,663) 818,430 652819 (76,282) (3,201) 573,335 5D 2032-33 2.0% 67.920,584 190,788 87,211,372 B4,145.370 841,454 3,768 845241 20,557,83D 169048 (9,863) 835,279 568,330 (77,061) (3,267) 585,292 51 2033-34 2.014 58,760,995 190,768 80,951,784 85,885,782 058,858 3,866 862,724 21,420,553 172,545 (10067) 852,657 690,112 (79,4711 (3,335) 597,306 Notes. Totals 16,956,915 17033,321 3,466,664 (198,751) (1,5695157) (65,843) 11,793,006 1f ;ncludes 5omeow9er exees aad a ecmed 051ity RSG 58 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT PROPOSED PROJECTS Table E-1 in Section E of this Report presents a list of proposed projects needed to complete the Agency's Redevelopment Program and estimated project costs. This list was compiled from information provided by City staff. The list identifies over $133 million of needed non -housing projects. Additionally, the Agency will continue to fund affordable housing projects throughout the City using the 20% housing set -aside funds. Priorities will need to be established to determine what projects are most appropriate for tax increment use. REASONS FOR THE ALLOCATION OF THE TAX INCREMENT Section B provides evidence that significant blight remains in the Project Area. Tax increment is necessary to fund redevelopment projects to address blight because the government and private sector cannot be expected to alleviate blighting conditions on their own. Tax increment is a financial tool that enables the government to assist residents with property improvements. Tax increment can also be used to fund public infrastructure improvements and provide incentives for the private sector to invest in the area and revitalize the local economy. Tax increment gives the Agency the financial resources to foster new development by improving infrastructure, reconfiguring lots, negotiating with property owners, providing assistance to developers, building and rehabilitating property, and soliciting new development. The projects proposed to alleviate blight within the Project Area are discussed in the next section. NEED TO MERGE TAX INCREMENT LIMIT The Agency has already collected an estimated $40 million of the $2.69 billion tax increment cap for the San Jacinto Project Area. It is estimated that the tax increment limit for the Soboba Springs Project Area will be reached before the year 2012 unless the limits are increased. Additionally, the Agency can consolidate efforts with regard to establishing indebtedness and expenditures within all redevelopment areas. It is unlikely that the San Jacinto Project Area would have reached its $2.69 billion tax increment cap over the remaining life of the Redevelopment Plan. However, by merging Soboba Springs with the San Jacinto Project Area, the Agency will be able to cross-collateralize the tax increment generated by the Soboba Springs Project Area with tax increment generated from the San Jacinto Project Area. For this reason it is more practical to establish one tax increment cap for the entire Proposed Merged Project Area so that all debt issued to be repaid by tax increment from the Proposed Merged Project Area will be subject to the same limitation in terms of revenue to repay the debt. There is sufficient time remaining in the Existing Project Areas to address a number of the existing blighting conditions if the tax increment limit is increased. The first project area to expire will be the Original San Jacinto Project Area in 2025 and next the Soboba Springs Project Area in 2028. The Amendment Area will have at least an additional 5 years left before expiration allowing significant time to continue to implement blight elimination projects. If the Agency has the benefit of a large portion of the tax increment generated over the remaining years, many of the blight removing projects identified in Table E-1 can be addressed. Without the increase, few projects will be implemented unless other funding sources can be found. If other sources of funding for projects were available, they would be used. However, with the current economic climate, with State and local budget crises and the significant downturn in the housing market, neither the City nor any other entity has been able to identify or secure other sufficient funding sources. Section E of this Preliminary Report identifies how each of the proposed projects could address the blighting conditions discussed in Section B of this Preliminary Report. The proposed merged tax increment receipt cap of $2.699 billion has been determined based on the fact that Agency has this existing limit for the San Jacinto Project Area that appears sufficient for both the San Jacinto and Soboba Springs Project Area, based on historical tax increment receipts and future projections through RSG 59 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT the life of the redevelopment plans for all individual project areas. It is important to note that the Agency is not proposing to increase the tax increment cap either project area but wishes to simply utilize the legally established limit for the existing San Jacinto Project Area for the Proposed Merged Project Area. NEED TO MERGE BONDED INDEBTEDNESS LIMIT Historically the Agency has infrequently issued bonds for the Existing Project Areas. However, it is likely that bond issuances will be used over the next 15 years to assure that needed improvements can be timely constructed, and property assemblage activities can continue. Establishing a bonded indebtedness limit of $408 million, which equals the legally established bonded indebtedness limit for the existing San Jacinto Project Area, for the Proposed Merged Project Area will give the Agency the ability to maximize bond leveraging if that is the most efficient way to expeditiously implement new blight eliminating projects and programs. Though the Agency's historical practice of minimizing bond issuances could continue into the future, by merging the bonded indebtedness limit to $408 million for the Proposed Merged Project Area, the Agency is assured that all available financing techniques can be utilized in the future if needed. NEXUS BETWEEN BLIGHT, PROJECTS AND AMENDED/MERGED LIMITS Section B of this Preliminary Report presents evidence that significant blight remains within the San Jacinto Project Area. Section E includes a list of projects needed to continue to address and correct these conditions. The estimated cost of the needed non -housing projects and programs totals over $133 million. By merging the San Jacinto and Soboba Springs Project Areas and increasing the tax increment cap in the Soboba Springs Project Area by establishing the current tax increment cap in the existing San Jacinto Project Area for the Proposed Merged Project Area of $2.699 billion, the Agency may continue to collect tax increment in Soboba Springs and utilize that increment to fund blight eliminating projects and programs in the existing San Jacinto Project Area. The existing tax increment cap will be reached in the Soboba Spring Project Area in approximately 3 years and blight elimination activities needed in the existing San Jacinto Project Area exceed current tax increment receipts. Tax increment revenue from Soboba Springs would allow the Agency to fund more project and programs to address and eradicate blight in the existing San Jacinto Project Area. In addition, a combined bonded indebtedness limit of $408 for the Proposed Merged Project Area will allow the Agency increased financial capacity and insure adequate tools to fund projects and programs in the short term to eliminate remaining blighting conditions. In the event that issuing bonds utilizing future tax increment receipts is not feasible given market conditions, the Agency will continue to use other funding sources such as Community Facility District Bond Financing, HOME and CDBG funds to cover any gaps in funding. Projects will be undertaken on a priority basis based upon available funding. In summary, with the proposed amendment to the existing tax increment and bonded indebtedness limits, the Agency's redevelopment implementation activities will be financially viable. The merging of financial limits will allow the Agency to utilize funds from the Soboba Springs Project Area, where blight removal activities have been completed, to be used to remediate remaining blight in the San Jacinto Project Area. Additionally, the Agency will consolidate implementation activities in both project areas and likely reduce administrative costs, leaving additional tax increment for blight elimination projects and programs. SU MMARY Although the Agency will attempt to use other available financing programs, these may not be viable for the type and amount of improvements required. Assessment and Community Facility Districts, for example, impose a financial burden that area businesses and potential developers may be unable to bear. As indicated by the continued presence of blighting conditions found in the Proposed Merged Project Area, many property owners do not have the resources to maintain their properties, much less rehabilitate them. The Agency does not currently have, nor expect to have, the available financial resources to fund the magnitude of improvements necessary to reverse the adverse conditions present in the Proposed Merged Project Area. RSG 60 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT The provision of tax increment revenue must be included in the Amended Plan because other sources are not available or are insufficient to finance the costs of redeveloping the Proposed Merged Project Area. Utilization of tax increment financing will provide the resources to develop a consistent and direct approach to activities and programs needed to eliminate blight, provide for the improvement of infrastructure, and aid in the expansion of the economic base in the Proposed Merged Project Area. When adverse conditions are not addressed, the resulting physical and financial impacts imposed by these conditions will exacerbate existing blighting conditions. It will cause serious economic hardships and undue disruption of the lives and activities of people working in the Proposed Merged Project Area and its surrounds. Therefore, it cannot be reasonably expected that private enterprise acting alone would have the means to accomplish redevelopment of the Proposed Merged Project Area. Without the provision of tax increment revenue financing, sufficient revenue would not be available to fund the needed programs and improvements. PSG 61 SECTION E Description of Specific Projects the Agency May Pursue & Description of How Potential Projects Will Address Continuing Redevelopment of the Proposed Merged Project Areas OVERVIEW In accordance with Redevelopment Law Section 33344.5(e), Section E of this Preliminary Report includes a description of the public projects and programs that are being proposed by the Agency and that may be undertaken in the Proposed Merged Project Area. Furthermore, Redevelopment Law Section 33344.5(f) requires a description of how the projects or programs being proposed by the Agency in the Proposed Merged Project Area will improve or alleviate the blighting conditions described in Section B of the Preliminary Report. The following section identifies and discusses potential Community Development and Redevelopment Programs, Public Infrastructure, Facility and Utility Improvements, and Affordable Housing Projects the Agency intends to undertake to address blight and complete revitalization of the Proposed Merged Project Area. The Agency proposes to implement redevelopment activities envisioned in the existing Redevelopment Plan through residential and commercial revitalization activities. As previously discussed in greater detail in Section D of the Preliminary Report, the critical element to justify increasing the tax increment cap revolves around the amount of dollars needed to fund the projects that will eliminate blighting conditions existing in the Proposed Merged Project Area. Table E-1 provides a financial summary of the projected costs by program type for the projects and programs being proposed by the Agency, which are needed to alleviate the remaining blighting conditions [TABLE TO BE COMPLETE ONCE PROJECT COSTS DETERMINED]. FUNDING NEEDED TO IMPLEMENT THE AGENCY'S Table E-1 PROPOSED REDEVELOPMENT PROJECTS AND PROGRAMS Community Development Programs Public Infrastructure/Facility/Utility Improvements Affordable Housing Projects/1 Total $ /1 Estimated 20% of the gross tax increment revenue projected to be generated by the Merged Project Areas over the life of each constituent project area. Source: Redevelopment Agency of the City of San Jacinto Each project and program that may be undertaken by the Agency and the blighting condition(s) that will be alleviated by each project/program are identified in Table E-1. Community Development Programs The Agency's proposed Community Development Programs, as shown in Table E-2, will alleviate blight and prevent its reoccurrence in the Proposed Merged Project Area by; 1) eliminating unsafe buildings for persons to live or work as caused by serious dilapidation and deterioration and defective; 2) increasing property values of properties receiving Agency assistance while indirectly benefiting the overall value of the community; and 3) removing conditions that prevent or substantially hinder the viable use or capacity of buildings or lots. The Agency has established, or is proposing, a variety of Community Development Programs that seek to alleviate the physical and economic conditions present in the Proposed Merged Project Area that are causing a reduction in, or lack of, optimal utilization of the area to such an extent that it constitutes a serious burden on the community. Examples of these programs include Facade Grant and Commercial Rehabilitation RSG 62 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT programs to assist residents and businesses upgrade and address deterioration and dilapidation, commercial rehabilitation loans to downtown merchants for building or construction of store fronts to remove physical blighting conditions and improve the economic viability of commercial buildings, and purchasing and restoring historic landmarks to improve properties and preserve the rich history and character of the community. The Facade Grant programs provides funding for up to 50% of the total cost for businesses to eliminate negative visual blight and enhance the physical appearance of buildings, building entrances and signage in the Downtown Zone. Some of the possible improvements include architectural design, painting and stucco work, awnings, front entry and window display improvements, facade improvements, sign replacement, landscaping, parking lot improvements and disabled access. The program initially began as a loan to finance the improvements and may be forgiven after one year if certain conditions are met by the business/property owner. The Commercial Rehabilitation program provides assistance, in the form of grants and/or low interest loans, to businesses in the Proposed Merged Project Area to encourage and assist in restoring, modernizing, and improving commercial and industrial structures. The reinvestment in the business community may include enhancement and rehabilitation of deteriorated building and sign improvements. These programs are designed to encourage existing property owners/businesses to substantially upgrade deteriorated storefronts and renovate the interior of stores to stimulate building improvements and upgrade the appearance of commercial properties, as well as encourage new development. These programs will address and/or eliminating blighting conditions including deterioration, defective design, and substandard design. In addition, rehabilitating and modernizing the building stock in this area will also have the effect of reversing economic blighting conditions including depreciated property values to enhance the economic viability of commercial properties. PSG 63 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Table E-2 Community Development Programs Project Name Funding Needed How Project Will Address Blight Physical Blight Economic Blight , Unsafe bldgs/ ilapidation & Deterioration Hinder viable use epreciated roperty slues High crime rates Commercial Rehabilitation Program $20,951,532 X X X Provide assistance in the form of grants and/or low interest loans, to businesses in the Proposed Merged Project Area to encourage and assist in restoring, modernizing, and improving commercial and industrial structures. The reinvestment in the business community may include enhancement and rehabilitation of deteriorated building and sign improvements. Facade Grant Program: $$ 000,000 X X X Provide funding for up to 50% of the total cost for businesses to eliminate negative visual blight and enhance the physical appearance of buildings, building entrances and signage in the Downtown Zone. Some of the possible improvements include architectural design, painting and stucco work, awnings, front entry and window display improvements, facade improvements, sign replacement, landscaping, parking lot improvements and disabled access. The program initially begins as a loan to finance the improvements and may be forgiven after one year if certain conditions are met by the business/property owner. Public Infrastructure/Facility/Utility Improvements The Agency has identified a number of public improvement projects which would aid current revitalization efforts and eliminate deficiencies in the existing infrastructure systems in the Proposed Merged Project Area. Paving, reconstruction, rehabilitation and widening of streets, widening of intersections, new interchanges, bridge improvements, channel and bridge improvements, fire and other public facilities, parking, and replacing sidewalk curbs and gutters are needed in the Proposed Merged Project Area to improve traffic flow, provide better access for emergency vehicles, enhance accessibility, increase safety for pedestrians and motorists, and bring overall aesthetic improvements to the San Jacinto community which may help improve surrounding property values and attract further investment from the private sector. Additionally, the Agency has identified the need for construction and revitalization of sewer and water lines and storm drains throughout the Proposed Merged Project Areas. Street and Utility improvements are all necessary components of successful redevelopment and will encourage infill development of vacant lots and the redevelopment of blighted properties by property owners. Such activity is expected to reduce blighting conditions in the Proposed Merged Project Area by removing conditions that otherwise hinder the viable use of buildings or lots and alleviating declining property values. It is anticipated that many of the Agency's proposed public improvement projects will also assist in reducing the number of buildings in which it is unsafe or unhealthy for persons to live or work within the Proposed Merged Project Area. It should be noted that the Agency intends to maximize its investment by improving streets and RSG 64 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT utilities simultaneously wherever feasible. Table E-3 below provides a list of the public infrastructure, facility and utility improvements, including the street segments (when applicable), that the Agency may implement within the Proposed Merged Project Area. By implementing this and other types of programs to address blighting conditions affecting the Proposed Merged Project Area, the public sector will signal its confidence in the area and will provide a springboard for private investment and reinvestment. +v.f PSG 65 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Table E-3 Public Infrastructure/Facility/Utility Improvements Project Name Needed How Project Will Address Blight Physical Blight Economic Blight a w a v_ o m ig `v v m m d 0 E STREET AND TRAFFIC CIRCULATION SYSTEM IMPROVEMENTS: Traffic lights Maximum (ten signals) Street Extensions X Construct 1,925' of new st. south side of Artesia St.; 1,500' new street extension of Peach St. connect Peach St., 850' new street Minor Ave from 7th St, to Shaver St.; 1,500' new street Grand Ave from 7th St. north to existing St.; Odel and Causton Road extensions and reconstructions; New Record Road construction along the improved San Jacinto River levee; Odel and Causton Road extensions and reconstructions. Street Widenings X Including the 1,900' street widening 12' each side Esplanade from Esplanade Plaza to Hewett St.; 2,200 street widening 12' each side Hewett St. from Evans St. to Commonwealth Ave.; 1,950' St. widening 12' (each side) 7th St. from Southern Pacific Railroad tracks east to Santa Fe.; 2,550' St. widening 12' (each side) Cottonwood Ave from State St. west; 2,600' street widening 12' (each side) Cottonwood Ave from State St. West; 3 325' street widening 12' (each side) Ramona Blvd. from Tiger Lane north to Young St; 5,550' street widening 12' (each side) Idyllwild Dr. from San Jacinto St. North to State St,; 1,000 curb -gutter -sidewalk each side 7th St. from Pico Ave west to Santa Fe; construct curb and gutter in Sub -Area 13. 250' street widening 12' (each side) san Jacinto St. from Idyllwild St. North; 1,850' street widening westside of San Jacinto street from City limits South; 5,050' street widening 4' each side. San Jacinto from 7th St. south to area boundary, 2,650' street widening 12' each side Santa Fe from 7th St. south to Esplanade; 2,850' street widening 12' each side De Anza Dr. from Water St. north to area boundary; 850' street widening 12' each side De Anza Drive from Main St. north to Grand Army; 1,950' street widening 12' each side 7th St. from San Jacinto Ave to area boundary; 3,300' street widening 4' each side San Jacinto Ave from 7th St. north to Idyllwild Dr.; Widen Ramona Expressway to 6 lane divided in Sub -Area 1; Widen Sanderson Ave to 61ane divided in Sub -Areas 18, 20, and 21; 1,350 curb -gutter -sidewalk Young St. from Ramona Blvd north to Idyllwild Dr; 6,100 sidewalk each side State St. from Esplanade north to De Anza Dr; 3,800 sidewalk each side State St. from De Anza north to Idyllwild Dr. Parking Projects: X X Purchase various parcels; paving. Festival Drive in the Gateway development area of the General Plan. X Warren Road Interchange at the Ramona Expressway. X Realignments: X Bridge Street Realignment; Realignment of the Ramona Expressway from Warren Road to Realigned Bridge Street. Reconstruction and General improvements X Reconstruct Esplanade Avenue in Sub -Area 6; Reconstruct Palm Ave in Sub Area 6; Improve Grand Ave in Sub -Area 5; Improve Palm Ave in Sub -Area 5. Provide and construct a bridge across the San Jacinto River at Main Street to the Project Area; include the necessary extension to accompany the (Main Street) bridge. X RSG 66 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Table E•3 Continued Public Intrastructu ell-acihty/Utility Improvements Project Name Funding Needed How project Will Address blight Physical Blight Economic Blight o o e c $"—° v n 'n O M D O y , H S'5 d vom 0 4> v E :En Let S 8 SEWER: Construction and Installation X Includes the construction or installation of an 8" main from Ramona Expressway to Idyllwild Dr. then to Tiger Lane; 8" main in Santa Fe from 9th to Esplanade; 8" main from Ramona Blvd to Idyllwild in St. Street; 8" man in Young east of Ramona Blvd.; 8" main In State south of 7th St. to Esplanade; 8" sewer in Esplanade from State St. to Santa Fe; 8" sewer in Camino Los Banos and Cecilia south of Main; Install sewer in San Jacinto N. of Idyllwild Dr.; Install sewer in De Anza from Young St. to State St.; 8" sewer in Cottonwood Ave; Install 8" sewer in 7th St. from State St. To Santa Fe.; Sewer Camino Los Banos between Main and 1st; 8" sewer in San Jacinto Ave from Shaver to Esplanade; Construct complete sewer service in Sub -Area 1 (trunk and local transmission lines); Construct complete sewer service in Sub Area-2; Construct permanent sewer service in Sub Area-3; 8" main from Ramona Expressway to Idyllwild Drive then to Tiger Lane; sewer lines in Sub Area-13. Replace 1st St. sewer from Mistletoe to Camino Los Banos X Extend lines along Ramona Expressway extension in Sub Areas 18, 19, 20, and 21 X Enlarge City outfall in Gran Ave of industrial Way from 12" to 16" X WATER LINES: Construct/Replace/ Install. Waterlines Citywide X Loop existing water line in San Jacinto Ave to existing line in Allesandro Ave; Loop existing 10" water line in Idyllwild Drive to existing line in Ramona Blvd. 12" line in Ramona. 10" in Idyllwild; Loop Grand Ave line to line at State and 7th; Install 12" line from Gran Ave down Scovell to State then south to 7th; Install 8" line from existing 8" line in Ramona Blvd to Young St then east to Idyllwild Dr.; Install 12" line in State St. from De Anza to Ramona Blvd; Install 12" line from State St. from 7th St. to Esplanade; install 10" line in Shaver St. east of Hewett; Replace 4" line in 2nd St. from San Jacinto to Alessandro. New line to be 8"; Replace 4" line in Mead St. with 8" line from Sheriff to Alessandro; Replace 4" line in Victoria with 8" line from State St. to 7111; Replace 4" in Wateka east of De Anza; Replace 4" line in Vernon north of Main with 8" line; Install 12" to 30" water mains in Sub Area 1; Extend lines along Ramona Expressway extension in Sub -Areas 18, 19, 20, and 21; Construct compete water service in Sub -Area 2; Install and upgrade hydrants to adequate spacing and proper type In Sub -Areas 1,2 and 13; Install needed water lines in Sub -Area 13. Purchase new or existing well to supplement existing City system. Lines to meet existing system must be constructed; Drill 4 wells In Sub Area 1. X Construct 18 million gallon storage tank in Sub -Area 1. X Improvements X Reposition 48" transmission main to adequate depth in Sub -Area 6; Improve water main in Sub -Nee 8. ( s) RSG 67 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Table E-3 Continued Public Infrastructure/FacilitylUtility Improvements Project Name Funding Needed How Project Will Address Blight Physical Blight Economic Blight m g o o 9 _ a' N d3 g �_ O� OtaJ m n j L it 2 STORM DRAIN IMPROVEMENTS: Storm Drain Facilities X Purchase and construct catch basin between 10th and 12th St.; Construction of various storm drain facilities including a catch basin in the area south of 7th St. and East of State St.; Construct storm drain facilities at the north end of Jordan and Algona Avenues to drain to the Cypress 5t. channel; Construct necessary drainage improvements in Sub -Area 2 including storm drain facility between Ramona Expressway and the San Jacinto River; Construct storm drains to eliminate surface drainage at the intersection of Ramona Expressway and Slate Street in Sub Area 3; Construct various flood control channels and other improvements as need in Sub -Area 1. Construct storm drains along State St. to the San Jacinto River in Sub Area 3; Construct necessary drainage improvements in Sub Areas 6 and 13; North/South regional channels and drainage basins within the Gateway area of the General plan; east of Sanderson Avenue and north of the Ramona Expressway; Misc. drainage lines within the Gateway development area of the General Plan; south side of the San Jacinto Levee from the Lake Park Bridge west; from the current Corps of Engineers levee to approximately 2 miles west of the Highway 79 (Sanderson) Bridge; Construct levee along the south side of the San Jacinto River in Sub Area 1. Line Construction X Construct various necessary lines: D1; D-2; D-3; D-4; F; F-1; F-2.; Line B on San Jacinto Avenue from Menlo to Midway 78" pipe; Line C on Menlo from Santa Fe to San Jacinto, 6' deep channel; Line C in an easement west of Santa Fe, 6' deep channel; Line C-4 on Santa Fe south of Menlo, 42" pipe; Line D-3 on San Jacinto Avenue south of Shaver, 36" pipe; Line D-4 on San Jacinto Avenue south of 7th Street; Line D-4 on 7th Street east of San Jacinto; 36" pipe; Line E downstream of EMWD Reservoir, large open channel; Line E-1 parallel and adjacent to railroad tracks south of 7th street, 4' deep channel; Line E-1 on 7th Street along frontage of mansion, 33" pipe; Line E-2 on State Street from Line E to City Limit, large pipe (up to 81"); Line E-2a on Esplanade east of State, 36" pipe; Line E-3 along Valley Wide Park westerly boundary, 6' deep channel; Line E-4 on 7th Street east of Line E (between Pine and Palm), 42" pipe; Line G on De Anza from Lyon to Grand Army, double box culvert; Line G-1 in an easement between Ramona Blvd and De Anza, box culvert; Line G-1 on Ramona Blvd from State to 1st, box culvert; Line G-3 on Palm Avenue south of Cottonwood, box culvert; Line H along State Street from Ramona Expressway to Idyllwiid (channel); Line H-1 Storm drain lines in an easement south of Ramona Expressway, 42" pipe; Line J in an easement meandering through NE part of city, channel, N Line E-2 in an easement east of Sanderson, channel; Line 2 along Ramona Expressway near Sanderson, 66" pipe; Line 4 along future Record Road, box culvert; Line 6 in an easement of Ramona Expressway, channel. RSG 68 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT Table E-3 Continued Public Infrastructure/Facility/Utility Improvements Project Name Funding Needed How Project Will Address Blight Physical Blight Economic Blight a o § ad 2 n a c 0 z 2 n n❑ 2 i5 c 1 v, 5om t�.> E b rnP S P PUBLIC FACILITY IMPROVEMENTS: Fire Service Facilities W X Construct Fire Station #3 In Sub -Area 1: Construct Fire Station #2. Purchase and Restoration of Estudilio Mansion as a historical landmark museum. X X Demolition and Reconstruction of City's Public Works Yard. X Restoration of Vosburg Hotel as a public facility and convention -type hotel. X X X Construction of combination civic center/school district office at Hoffman Park. X Community Center X Construction of library and community meeting center. Park and Recreation Facilities X Purchase and construct recreational facility such as a driving range for the community PUBLIC UTIUTY IMPROVEMENTS: Fiber Optic Telecommunication Lines X Provides funding for the installation of fiber optic telecommunication lines and utilities. GRAND TOTAL PUBLIC IMPROVEMENT PROJECTS $105,000,000 Low- / Moderate- Affordable Housing Programs The Agency is required to set aside no less than twenty percent (20%) of the gross tax increment revenue generated by the Proposed Merged Project Area ("Housing Funds") for the creation and improvement of affordable housing. These funds are to be used to increase, improve and preserve the supply of low- and moderate- income housing in the community. To achieve this end, the Agency's activities are proposed to include the following programs and projects: Single Family Housing Rehabilitation Programs — this program will provide grants and other assistance to single family owner occupied homeowners for major and minor repairs and renovations and rehabilitation . The program will provide grants to rehabilitate owner occupied single-family homes. Eligible improvements may include correcting building code violations, painting, roofing, heating and ventilation repairs, plumbing repairs/replacement, electrical upgrade, window and door replacement and structural repairs. Senior Grant Program - this program provides grants to income qualified homeowners for emergency repairs such as unsanitary plumbing, hazardous electrical, sewer line or septic failures, or other catastrophic damage to the home. Rental Housing Rehabilitation Program — this program would provide loans and other assistance for to rehabilitate and/or renovate rental housing units. Developer Assistance Acquisition and Rehabilitation Program - The Agency may work in connection with nonprofit housing developers for the acquisition of an affordable rental properties, including those with RSG 69 SAN JACINTO REDEVELOPMENT AGENCY PRELIMINARY REPORT expiring affordability restrictions. The proposed program would rehabilitate units, and re-establish affordability restriction to make the units available to low income families for period of fifty five years. Habitat for Humanity -this program will involve providing assistance, as funds are available, to Habitat for Humanity to locate sites and/or complete affordable housing projects. Down Payment Assistance Program — if funding is available, the Agency proposes to to assist first time homebuyers earning no more the 120% of the area median income in purchasing residential ownership units in the City. Other programs and projects may include, but are not limited to, site acquisition, developer subsidies for constructing affordable units, in -fill housing, rehabilitation of existing affordable housing units, and purchase of affordability covenants. It is anticipated that the above mentioned projects and programs will; 1) reduce the number of unsafe residences in the Proposed Merged Project Area, 2) alleviate declining property values, and 3) indirectly reduce crime rates by providing suitable housing to the segment of the population most at risk for becoming involved in criminal activity. Table E-4 identifies in greater detail the types of activities the Agency may pursue and expend its Housing Funds on (but is not limited to these activities and projects), as well as, certain projects that may be undertaken by the Agency in an ongoing effort to provide housing affordable to persons of low- and moderate income in the Proposed Merged Project Area. Table E-4 Affordable Housing Projects Project Name Funding Needed How Project Will Address Blight Physical Blight Economic Blight Unsafe bldgs/ Dilapidation & Deterioration Hinder viable use Depreciated Property Values High crime rates LOW -MOD HOUSING PROGRAM: Provide for quality low, low -moderate and/or moderate income housing for the community X X X Low and Moderate Income Housing $50,582,012 X X X X Program to include Single Family Housing Rehabilitation program, Senior Grant Program, Rental Housing Rehabilitation Program, Developer Assistance Acquisition and Rehabilitation Program, Habitat for Humanity, Down Payment Assistance Program as well as other projects and programs targeted to assist households qualifying in very low, low and moderate income categories. RSG 70 EXHIBIT B DRAFT OWNER PARTICIPATION RULES FOR PROPERTY OWNERS, OPERATORS OF BUSINESS AND BUSINESS TENANTS FOR THE MERGED SAN JACINTO REDEVELOPMENT PROJECT AREA Redevelopment Agency of the City of San Jacinto Merged San Jacinto Redevelopment Project Area ■ San Jacinto Redevelopment Project Area ■ Soboba Springs Redevelopment Agency of the City of San Jacinto RSG INTELLIGENT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC. 309 West 4th Street Santa Ana, California 92701-4502 Phone: (714) 541-4585 Fax: (714) 541-1175 E-Mail: infoPwebrsq.com Owner Participation ul Redevelopment Agency of the City of San Jacinto Table of Contents SECTION 1. (100) Purpose and Intent 1 SECTION II. (200) Definitions 2 SECTION 111. (300) Procedures for Owner Participation 4 (301) Solicitation of Participation by the Agency to Owners; Submission of Statement of Interest by Owners 4 (302) Submission and Form of Development Proposals 4 (303) Agency Board Evaluation of Development Proposals Submitted by Owners 6 (304) Unsolicited Submittal of Statements of Interest and Development Proposals by Owners 8 (305) Concurrent Consideration of Development Proposal(s) Submitted by Non -Owners 8 (306) Negotiations Toward Execution of Owner Participation Agreement 9 (307) Failure to Respond Waives and Relinquishes Owner Participation Rights 9 (308) Agency Action on Agreement for Development with Non - Owner 10 (309) Additional Regulations Pertaining to Owner Participation and Non -Owner Participation 11 (310) Solicitation of Owner Participation Not Required in Development of Owner's Property by an Owner and Certain Other Instances 11 SECTION IV. (400) Reentry Preferences for Displaced Businesses 12 (401) Notice to Displaced Businesses 12 (402) Agency Extension of Preferences 12 SECTION V. (500) Procedure for Amending Owner Participation Rules 13 Exhibit A 14 Exhibit B 17 Exhibit C 19 Project Area Map 19 Owner Participation Rules Redevelopment Agency of the City of San Jacinto SECTION 1. (100) Purpose and Intent These Owner Participation Rules have been promulgated to implement the requirements of the Community Redevelopment Law, Califomia Health and Safety Code Section 33000, et seq., and to implement the provisions of the Amended and Restated Redevelopment Plan ("Amended Plan") for the Proposed Merged San Jacinto Redevelopment Project Area, particularly with respect to participation by property owners ("Owner") and extension of reentry preferences to businesses in the Proposed Merged San Jacinto Project Area. The Proposed Merged San Jacinto Redevelopment Project Area incorporates all the territory within the boundaries of the San Jacinto Redevelopment Project Area including the original San Jacinto Project Area adopted June 28, 1983, the area added to the San Jacinto Project Area on December 28, 1993, and the Soboba Springs Redevelopment Project as adopted on December 28, 1983 ("Proposed Merged San Jacinto Project Area"). The Proposed Merged San Jacinto Project Area does not include the territory deleted from the San Jacinto Redevelopment Project Area on February 20, 1996. These Owner Participation Rules shall be applicable to the Proposed Merged San Jacinto Project Area, as it is currently proposed and as may be amended in the future. These rules have been formulated to provide a consistent and uniform procedure and process for owner participation and business reentry for the Proposed Merged San Jacinto Project Area. The objectives of these Owner Participation Rules are: (i) to implement the owner participation process in connection with the Proposed Merged San Jacinto Project Area by encouraging, soliciting, and, as to participants selected by the Redevelopment Agency of the City of San Jacinto ("Agency"), carrying out by Agreement, participation in redevelopment of the Proposed Merged San Jacinto Project Area, and (ii) to extend and establish reasonable preference to persons who are engaged in business in the Proposed Merged San Jacinto Project Area, if they are displaced by the Agency, to reenter in business within the Proposed Merged San Jacinto Project Area should they be required to move as a result of a redevelopment project undertaken by the Agency. These Owner Participation Rules provide to Owners a reasonable opportunity to identify their interest in owner participation, to submit Development Proposals, to receive good faith consideration by the Agency of complete Development Proposals, and, as selected by the Agency, to participate in the redevelopment of the Proposed Merged San Jacinto Project Area. These Owner Participation Rules also allow for negotiations for the redevelopment and participation in the Proposed Merged San Jacinto Project Area by persons and entities other than Owners. OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO SECTION 11. (200) Definitions For the purposes of these Owner Participation Rules, the following terms shall have the following definitions: A. "Agency" means the Redevelopment Agency of the City of San Jacinto, a public body, corporate and politic. B. "Agency Activities" means the acquisition of real property by the Agency or by a private party pursuant to an Agreement with the Agency. C. "Agreement" means and includes any Owner Participation Agreement, Disposition and Development Agreement, Affordable Housing Agreement, or any other agreement approved by the Agency Board of Directors under which the Agency commits to participate and/or provide financial assistance to a proposed redevelopment project. D. "Amended Plan" means the Amended and Restated Redevelopment Plan for the Proposed Merged San Jacinto Project Area. E. "Business" or "Businesses" mean any person, persons, corporation, association, partnership, limited liability company, or other entity lawfully engaged in business within the Proposed Merged San Jacinto Project Area. F. "City" means the City of San Jacinto, California, a municipal corporation. G. "City Council" means the legislative body of the City of San Jacinto. H. "Development Proposal" means a complete and detailed proposal for a development or redevelopment project or other participant proposal which is timely submitted to the Agency, in accordance with, and meeting the requirements of, Section 302 hereof. I. "Displaced Business" means a Business, which has been displaced by Agency notice and action in implementation of a public program or project in conformance with applicable laws. J. "Executive Director" means the Executive Director of the Agency, or his/her designee. K. "Implementation Plan" means the Five Year Implementation Plan which was adopted by the Redevelopment Agency of the City of San Jacinto on 200 via adoption of Resolution No. , and as may be further amended from time to time. L. "Non -Owner" means any person or entity who is not an Owner in the Proposed Merged San Jacinto Project Area, but is interested in the submittal and consideration of a Development Proposal by the Agency. ROSENOW SPEVACEK GROUP, INC. PAGE 2 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINITO M. "Owner" or "Owners mean any person, persons, corporation, association, partnership, limited liability company or other entity (a) holding fee title of record to real property in the Proposed Merged San Jacinto Project Area, or (b) holding a proprietary interest in a cooperative housing project within the Proposed Merged San Jacinto Project Area which includes the right to occupy a dwelling unit within the cooperative housing project. N. "Owner Participation Agreement" means a type of Agreement, which is entered into between the Agency and an Owner in accordance with the provisions of the Redevelopment Plan and the Owner Participation Rules as set forth herein. O. "Owner Participation Rules" means these rules governing owner participation and reentry preferences in the Proposed Merged San Jacinto Project Area. P. "Participant" means an Owner, which has entered into an Owner Participation Agreement with the Agency. Q. "Proposed Merged San Jacinto Project Area" or "Project Area" means the territory within the boundaries of the San Jacinto Redevelopment Project Area including the original San Jacinto Project Area adopted June 28, 1983, the area added to the San Jacinto Project Area on December 28, 1993, and the Soboba Springs Redevelopment Project as adopted on December 28, 1983. The Proposed Merged San Jacinto Project Area does not include the territory deleted from the San Jacinto Redevelopment Project Area on February 20, 1996. R. "Statement of Interest" means a statement by an Owner that such Owner is interested in participating in the development or redevelopment of property or other form of participation within the Proposed Merged San Jacinto Project Area. A Statement of Interest, whether solicited by the Agency or submitted by an Owner on its own initiative, must be in writing, and substantially in the form of the Owner's Statement of Interest to Participate which is attached and incorporated as Exhibit "A" to these Owner Participation Rules, and which may be updated from time to time by the Executive Director. S. "Statement of Interest in Business Reentry" means a statement by a displaced or potentially displaced Business that such Business is interested in reentry into the Proposed Merged San Jacinto Project Area. A Statement of Interest in Business Reentry, whether solicited by the Agency or submitted by a Business on its own initiative, must be in writing, substantially in the form of the Statement of Interest in Business Reentry which is attached and incorporated as Exhibit "B" to these Owner Participation Rules, and which may be updated from time to time by the Executive Director. ROSENOW SPEVACEK GROUP, INC. PAGE 3 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO SECTION I11."(300) Procedures for Owner Participation Owners within the Proposed Merged San Jacinto Project Area who desire to exercise their participation rights shall follow the procedures which are set forth in this Section III. (301) Solicitation of Participation by the Agency to Owners; Submission of Statement of Interest by Owners. A. Prior to entering into an Agreement with a Non -Owner, or with another Owner who has submitted an unsolicited proposal, for the development or redevelopment of a particular site within the Proposed Merged San Jacinto Project Area, the Agency, through its staff, shall notify those Owners within the Proposed Merged San Jacinto Project Area on whose property the project site is proposed, of the opportunity to submit a Statement of Interest for the development of the site or other participation proposal. The Agency shall send written notice via certified or registered United States mail to those Owners whose property, within the Proposed Merged San Jacinto Project Area, is the subject of the proposed development. Owners so notified by mail shall be given thirty (30) days, or any longer period as the Agency may specify in the notice, from the date the notice is mailed by the Agency to submit a Statement of Interest to the Agency. B. Not later than thirty (30) days after the end of the period set forth above in Section 301 for timely submittal of Statements of Interest, the Agency staff shall acknowledge receipt of the Statements of Interest by sending confirming letters to the Owners who have submitted such Statements of Interest. Such written acknowledgment does not and shall not obligate the Agency to select an Owner/applicant, or to ultimately reach agreement with any Owner/applicant, or to exclusively negotiate with any Owner/applicant. (302) Submission and Form of Development Proposals A. Owners who have timely submitted a Statement of Interest may submit a more detailed Development Proposal subject to the following time periods and procedures: Within forty-five (45) days after the date of mailing of the Agency confirmation letter acknowledging receipt of the Statement of Interest, any Owner who has timely submitted a Statement of Interest must submit to the Agency a Development Proposal if such Owner wishes to continue with the process. B. Development Proposals shall include the following: ROSENOW SPEVACEK GROUP, INC. PAGE 4 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO Construction and development pro forma, a site plan, a business/operating plan, developer qualifications, a narrative description of the market support for the proposed project, an operating pro forma, as applicable, and an explanation of the economic benefits of the proposed project to the Agency, the City, and the community. ii. The proposed uses must conform with the requirements, intent, goals, and objectives of the Amended Plan, the Implementation Plan, the City General Plan, any applicable redevelopment criteria specified by the Agency in the notice sent to Owners as provided in Section 301, zoning, other applicable development standards, and other applicable federal, state and local laws, codes and regulations. C. The Development Proposal submitted by an Owner may provide for an Owner to participate in substantially the same location as the Owner's present use, may provide for expansion of the Owner's present use by retaining all or portions of Owner's property and acquiring adjacent property, may provide for the Owner's participation in a location within the Proposed Merged San Jacinto Project Area different from the location in which the Owner's property is currently located, or may propose some other form of participation by the Owner in the redevelopment of the proposed development site. D. Owners shall provide such additional information as may be reasonably requested by the Executive Director and Agency staff. E. The Agency's staff will be available prior to the end of the 45 day deadline for submissions of Development Proposals to discuss owner participation, respond to questions, and assist Owners in the preparation of Development Proposals; provided that the Owner in all instances (and not the Agency staff) shall be responsible for the content, form, and preparation of any Development Proposal. F. The Agency, through its staff, will review Development Proposals upon receipt thereof, and shall notify Owners whether the Development Proposals submitted comply with the requirements of these Owner Participation Rules and have been determined to be complete or incomplete. In the event the Agency staff notifies an applicant submitting a Development Proposal that the Development Proposal is incomplete or that additional information is required, such applicant may be allowed fifteen (15) days from such Agency staff notification to complete and resubmit its Development Proposal. The failure to provide such additional information and resubmit the revised Development Proposal in a timely manner shall automatically disqualify such Development Proposal from any further consideration and shall be deemed a rejection by the Agency of such proposal. Notwithstanding the foregoing, initial Development Proposal submissions which do not include or address all of the required ROSENOW SPEVACEK GROUP, INC. PAGE 5 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO items may, in the discretion of the Agency Staff, be rejected without an opportunity for resubmission. (303) Agency Board Evaluation of Development Proposals Submitted by Owners A. The Agency Board shall consider in good faith and without discrimination all Development Proposals timely submitted by Owners (who previously also timely submitted a Statement of Interest), and determined by Agency staff to be complete, at a regular or special Agency meeting held at the earliest feasible time but not later than sixty (60) days after the conclusion of the Development Proposal submission period described in Section (302)(A) above and as may be extended pursuant to Section 302 (F). After consideration of the Development Proposals, the Agency Board may, in the exercise of its discretion, accept, conditionally accept, continue the item for additional review, or reject any or all Development Proposals submitted by Owners, and/or may select, if at all, a Development Proposal in accordance with this Section 303 and these Owner Participation Rules. B. In the exercise of its discretion, the Agency acknowledges that its primary purpose, objective, and duty is to carry out and implement the Amended Plan and to eliminate blight in the interest of the health, safety and welfare of the community. The Agency's decision to accept, conditionally accept, or reject any Development Proposal will be made in consideration of such purpose, objective, and duty. C. Development Proposals shall be evaluated by the Agency with consideration of factors determined by the Agency to be relevant in carrying out its duties to implement the Amended Plan and the Implementation Plan, which may include, but are not limited to, some or all of the following factors (the following factors are not listed in any particular order of ranking): Conformity of the Development Proposal, including proposed uses, with the requirements, intent, goals, and objectives of the Amended Plan, the Implementation Plan, the City General Plan, the Specific Plans, applicable redevelopment criteria specified by the Agency in the notice sent to Owners as provided in Section 301, zoning, other development standards, and other applicable federal, state and local laws, codes and regulations; ii. Quality of design and project concept; iii. Whether the Owner has proposed participation in the same location as the proposed development site or in a different location; ROSENOW SPEVACEK GROUP, INC. PAGE 6 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO iv. The employment opportunities and economic benefits to the Agency and to the City which can be reasonably expected to result from the implementation of the Development Proposal; v. The qualifications of the Owner/applicant or its developer entity team proposed to develop the project described in the Development Proposal, including financial capacity to undertake the project, prior experience with similar development, quality of prior development projects, degree of site control, ability to obtain financing, ability to abide by Agency design standards and development controls, and readiness to proceed; vi. The estimated cost, if any, of City and/or Agency financial involvement, including the provision of City and/or Agency public services, subsidies, or public improvements required if the Development Proposal is accepted, and the availability of sufficient Agency and/or City funds to pay such costs; vii. The economic benefits to the Agency, the City, and the community, as determined by a cost/benefit analysis, if the Development Proposal were to be approved and the proposed project is implemented; viii. The effect of the Development Proposal on elimination of blighting conditions within the Proposed Merged San Jacinto Project Area and the upgrading of uses; ix. The probability of successful implementation of the Development Proposal; x. The time schedule for completion of the proposed project; xi. The potential for displacement of persons and/or businesses and the need for relocation of Proposed Merged San Jacinto Project Area residents, tenants, owners, or business operators in the implementation of the Development Proposal, and the need to create replacement housing for destroyed or removed housing units or projects; xii. The need for acquisition of interests in real property for the implementation of the Development Proposal, and the willingness of existing owners and holders of other property interests to sell such property; xiii. The environmental benefits or impacts of the proposed development, and evaluation of the cost and method of mitigation of such impacts, if any; xiv. The impact of the Development Proposal on existing buildings and improvements; and ROSENOW SPEVACEK GROUP, INC. PAGE 7 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO xv. The merits of the Development Proposal relative to the merits of other Development Proposals for the same proposed development site or for other sites in the Proposed Merged San Jacinto Project Area. D. Nothing in the Owner Participation Rules shall obligate the Agency to select any Development Proposal. All costs associated with submitting a Statement of Interest and any subsequent Development Proposal shall be borne solely by the Owner or Non -Owner submitting such document(s). (304) Unsolicited Submittal of Statements of Interest and Development Proposals by Owners A. Under these Owner Participation Rules, Owners may submit Statements of Interest to the Agency on their own initiative, rather than through the solicitation of interest by the Agency as described in Section 302 above, even if the Agency has not notified Owners of a development opportunity on a proposed development site. B. Owners who have submitted a Statement of Interest under Section 304 (A) above will be notified by Agency staff within thirty (30) days of submittal of the Statement of Interest that such Owner may submit a Development Proposal to the Agency also at their own initiative, even if the Agency has not notified Owners of a development opportunity for a proposed development site. Except as otherwise provided in this Section 304, Development Proposals submitted pursuant to an unsolicited Statement of Interest shall be processed and evaluated in accordance with and subject to Sections 302 and 303. C. The Agency will not accept or consider untimely or unsolicited Statements of Interest and/or Development Proposals concerning real property in the Proposed Merged San Jacinto Project Area for which the Agency has already selected an Owner or a Non -Owner for development or redevelopment of such particular site in conformity with these Owner Participation Rules. D. Submission of an unsolicited Statement of Interest or follow-up Development Proposal shall not obligate the Agency to select or approve any development plan, proposal or application. (305) Concurrent Consideration of Development Proposal(s) Submitted by Non -Owners A. Any Non -Owner may submit to the Agency a Development Proposal for the proposed development of property within the Proposed Merged San Jacinto Project Area at the same time that Owners are submitting ROSENOW SPEVACEK GROUP, INC. PAGE 8 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO Development Proposals solicited by the Agency pursuant to these Owner Participation Rules. B. The Agency may, but is not required to, evaluate, consider, and take action on such Development Proposal(s) from one or more Non -Owners concurrently with its evaluation, consideration, and action on the Development Proposals solicited by the Agency and submitted by Owners under these Owner Participation Rules. (306) Negotiations Toward Execution of Owner Participation Agreement or Other Agreement The Agency shall use good faith efforts to negotiate toward and enter into a mutually acceptable Owner Participation Agreement (or other Agreement, as applicable) with the selected Owner or Non -Owner, as the case may be, whose Development Proposal has been selected or conditionally selected by the Agency Board, if any. Each Agreement shall contain provisions necessary to ensure that the Development Proposal will be carried out with such covenants, conditions and restrictions as the Agency reasonably requires. Each Agreement will require the selected Owner or Non -Owner, as applicable, to execute and record such further documents as the Agency may require in order to ensure conformance with the Community Redevelopment Law and other applicable laws, to provide record notice of covenants, conditions and restrictions which are imposed by the Agreement, and to provide security for the obligations of the selected Owner or Non -Owner. All Agreements with an Owner shall become effective only when executed by the Owner/Participant and duly approved by the Agency Board. If negotiations with the selected Owner or Non -Owner does not lead to an Agreement within a reasonable time, the Agency may, in its discretion, select a different Development Proposal from among the prior submissions, may solicit new Development Proposals from those previously submitting Development Proposals, or may start the process anew. (307) Failure to Respond Waives and Relinquishes Owner Participation Rights Subject to the notice requirements of these Owner Participation Rules, an Owner who does not submit a Statement of Interest or a Development Proposal meeting the requirements of Section 302 and Section 303 above within the required time periods shall be deemed to have conclusively waived and relinquished any right of the Owner to be considered as an Owner or Participant with respect to a proposed development site pursuant to the Amended Plan and these Owner Participation Rules. ROSENOW SPEVACEK GROUP, INC. PAGE 9 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO (308) Agency Action on Agreement for Development with Non -Owner, Limitations on Re -Opening Owner Participation Process A. The Agency may enter into an Agreement with any Non -Owner for the development or rehabilitation of property implementing a Development Proposal submitted by a Non -Owner, after one of the following has occurred: i. The Agency has given notice of a development opportunity as set forth in Section 301 hereof and has received no Statements of Interest from Owners during the time period set forth in Section 301 for submission of Statements of Interest; or ii. The Agency has given notice of a development opportunity as set forth in Section 301 hereof and has received one or more Statements of Interest from Owners during the time period set forth in Section 301 for submission of Statements of Interest, but has received no Development Proposals during the time period set forth in Section 301 for submission of Development Proposals; or iii. The Agency has given notice of a development opportunity as set forth in Section 301 hereof and has received one or more Development Proposals from Owners for the specified site, and the Agency has considered and rejected all such Owner -submitted Development Proposals pursuant to Section 303 hereof. B. Any substantial changes in a Development Proposal from an Owner or a Non -Owner selected by the Agency subsequent to the selection of such Development Proposal shall not require or be construed to require the Agency to re -notify any Owners of property within the Proposed Merged San Jacinto Project Area of the opportunity to submit or re -submit a Statement of Interest or a Development Proposal for the development of the site. Once the Agency has selected a Development Proposal from and entered into an Agreement with an Owner or a Non -Owner, or if negotiations with such Owner or Non -Owner do not lead to an Agreement, the Agency shall not be under any obligation or continuing obligation to re -offer the development opportunity to any Owner not selected by the Agency or to any other Owners or Non -Owners. The Agency advises and acknowledges that Development Proposals commonly are revised during the process of negotiating and implementing an Agreement, as further analysis is performed of the legal, economic, design, and other aspects of the proposed project. Such revisions do not re -open the Owner participation process under these Owner Participation Rules and do not entitle any other Owner or Non - Owner to receive an additional opportunity to participate in the development. ROSENOW SPEVACEK GROUP, INC. PAGE 10 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO (309) Additional Regulations Pertaining to Owner Participation and Non - Owner Participation An Owner's or Non -Owner's opportunity to participate under these Owner Participation Rules is not and shall not be construed to constitute a right of first refusal or a right of first negotiation of any proposal or agreement. B. Time is of the essence in the submission of Statements of Interest and Development Proposals by Owners, and the Agency may enter into Agreements for the development and/or redevelopment of property without the need to consider Statements of Interest and Development Proposals which have not been timely submitted in accordance with the time periods set forth above and/or which do not meet the requirements for a complete Development Proposal as set forth herein. C. Nothing herein shall prevent or preclude the Agency from entering into an Exclusive Negotiation Agreement ("ENA") or similar agreement with any Owner and Non -Owner with respect to a development site, whether prior to or during the Owner Participation process. The entering into an ENA or similar agreement by the Agency shall not be, or construed to be, a prejudgment or pre -commitment concerning any Development Proposal or the selection of any Owner or Non -Owner for a development site. (310) Solicitation of Owner Participation Not Required in Development of Owner's Property by an Owner and Certain Other Instances A. If an Owner desires to develop or rehabilitate its own property, no solicitation of Statements of Interest or Development Proposals from other Owners shall be required prior to the Agency entering into an Owner Participation Agreement (or other Agreement) with such Owner for the development or rehabilitation of the Owner's own property. B. No solicitation of Statements of Interest or Development Proposals from Owners shall be required prior to the Agency entering into an agreement for the development of Agency -owned property. C. No solicitation of Statements of Interest or Development Proposals from Owners shall be required prior to the Agency entering into an Agreement for the development or rehabilitation of real property outside of the Proposed Merged San Jacinto Project Area. D. No solicitation of Statements of Interest or Development Proposals from Owners or Non -Owners shall be required prior to the Agency entering into a non-exclusive negotiation agreement or similar agreement with an Owner or Non -Owner. The entering into a non-exclusive negotiation agreement or similar agreement by the Agency shall not be, or constructed to be, a prejudgment or pre -commitment concerning any ROSENOW SPEVACEK GROUP, INC. PAGE 11 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO Development Proposal or the selection of any Owner or Non -Owner for a development site. SECTION IV. (400) Reentry Preferences for Displaced Businesses Persons who are engaged in businesses in the Proposed Merged San Jacinto Project Area which have been displaced by Agency Activities and who have not otherwise been relocated pursuant to the Agency's Method of Relocation who desire to exercise their reentry preferences shall follow the procedures which are set forth in this Section IV. (401) Notice to Displaced Businesses The Agency shall notify any Businesses which are to be displaced by Agency Activities ("Displaced Businesses") of their right of reasonable preference to reenter in business within the Proposed Merged San Jacinto Project Area. Such written request from the Business to re-enter shall be in writing and, substantially in the form of the Statement of Interest in Business Reentry in the Proposed Merged San Jacinto Project Area which is attached and incorporated as Exhibit "B" to these Owner Participation Rules. Businesses so notified shall be given thirty (30) days from the date the notice is given by the Agency to submit a Statement of Interest to the Agency. (402) Agency Extension of Preferences The Agency shall exercise reasonable efforts to secure preferential rights for Displaced Businesses in Owner Participation Agreements or Disposition and Development Agreements which provide for the development of structures in which a Displaced Business might re-enter. Displaced Businesses which desire to pursue such reentry opportunities may negotiate directly with the owner of the property in which the reentry opportunity is located. The ability of a Displaced Business to re-enter will depend, in part, upon the ability of the Displaced Business to participate on the basis proposed by the owner of the property, including such factors as the ability to pay the requisite rent, the suitability of the proposed use of the Displaced Business for the development under consideration, the Displaced Business's readiness to proceed, and other factors. The Displaced Business also must conform to all applicable requirements of the Amended Plan. The preferences established by this Section IV shall not be construed to require the Agency to provide a subsidy or other financial assistance to such Displaced Businesses to enable them to reenter business in the Proposed Merged San Jacinto Project Area. ROSENOW SPEVACEK GROUP, INC. PAGE 12 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO SECTION V. (500) Procedure for Amending Owner Participation Rules The Agency may amend these Owner Participation Rules at a regular or special meeting.` ROSENOW SPEVACEK GROUP, INC. PAGE 13 Owner Participation Rules Redevelopment Agency of the City of San Jacinto Exhibit A REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO OWNER'S STATEMENT OF INTEREST TO PARTICIPATE I hereby express my interest in participating in development or redevelopment of the following site (the "Site") within the Merged San Jacinto Redevelopment Project Area (the "Project Area") (See attached map) Please print or type information below: 1. Name: Telephone: 2. Fax: Email: 3. Address: I am the record fee owner of the following property within the Site (Please provide street address of property): 5. I wish to participate in the proposed project on the Site as follows: 0 I wish to construct a new building or other improvements on my present property. 0 I wish to acquire property within the Project Area and construct a new building or other improvements on the property I acquire. (Identify proposed property below) ❑ I wish to acquire property within the Project Area for expansion of my current business or other use. (Identify proposed property and existing business/use below) ❑ I wish to rehabilitate/remodel my present property. nnrre irmnnnrsrn uir+ nnnr nA OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO ❑ I wish to acquire property within the Project Area and rehabilitate/remodel an existing building or other improvements on the property I acquire. (Identify proposed property below) ❑ I wish to sell my present property. ❑ Other. Please Describe: Location and description of property proposed to be acquired (If applicable): 6. Background, experience, and information concerning you and your proposal (you may include further information, including a site plan, construction and operating pro formas, business plan and other information relevant to your proposed activity, on additional sheets if you desire to do so, but such additional information is not required at this time): (a) Generally describe your background and experience, particularly with respect to development of real property: (b) Describe the development and redevelopment activities you propose and indicate your experience relevant to your proposal: Other remarks: 7. By my signature below: I acknowledge receipt of a copy of the Owner Participation Rules. The Owner Participation Rules and Reentry Preferences describe in detail when and how I may participate in the Project and the Agency's obligations with respect to my proposal. I understand that after I timely submit this Statement of Interest I will be required to submit a detailed "Development Proposal" within the time period specified in and conforming to the ROSENOW SPEVACEK GROUP, INC. PAGE 15 OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO requirements of the Owner Participation Rules in order for my Development Proposal to be considered by the Redevelopment Agency of the City of San Jacinto. I understand that submission of this Statement of Interest does not in any way obligate me to participate in the Project, or obligate the Redevelopment Agency of the City of San Jacinto to approve my proposal. I understand that I have no absolute right to participate in development or redevelopment of the Project Area. This Statement of Interest is presented to the Agency pursuant to the Owner Participation Rules and Reentry Preferences on the day of 2 . Signed: Print Name: Title (if applicable): ROSENOW SPEVACEK GROUP, INC. PAGE 16 Owner Participation Rules Redevelopment Agency of the City of San Jacinto Exhibit B REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO STATEMENT OF INTEREST IN BUSINESS REENTRY IN THE SAN JACINTO MERGED REDEVELOPMENT PROJECT AREA I hereby express my interest in reentering business within the Merged San Jacinto Redevelopment Project Area (the "Project Area") 1. Name: Telephone: 2. Fax: Email: 3. Address: 4. I am the owner of the following Business which may be or was displaced from the following site within the Project Area (the "Site") by notice and action of the Redevelopment Agency of the City of San Jacinto (Identify name and address of displaced Business and location of the Site; attach map of the Site): 5. I wish to reenter business in the Project checked below as follows: ❑ I wish to be notified by the Agency of opportunities to lease finished rental space within the Project Area. ❑ I wish to be notified by the Agency of opportunities to purchase property within the Project Area. ❑ Other. Please Describe: 6. Background, experience, and information concerning you and your interest in reentering business within the Project Area. OWNER PARTICIPATION RULES REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO (a) Generally describe business background and experience: (b) Describe the business activities you propose and indicate your experience relevant to your proposal: (c) Other remarks: 7. By my signature below: I acknowledge receipt of a copy of the Owner Participation Rules. My reentry in business in the Project Area, and the Agency's obligations with respect to my reentry, are subject to the requirements of and set forth in detail in the Owner Participation Rules. I understand that submission of this Statement of Interest in Business Reentry does not in any way obligate me to reenter business within the Site or the Proposed Merged San Jacinto Project Area, or obligate the Redevelopment Agency of the City of San Jacinto to obtain a business opportunity for me. I understand that I have no absolute right to reenter business within the Project Area. Signed: Print Name: Title (if applicable): Date: ROSENOW SPEVACEK GROUP, INC. PAGE 18 MERGED SAN JACINTO REDEVELOPMENT PROJECT AREA N'. RAI/DNA EXY WARREN RD c l, BYRD ST di o• o;SCOT} ST wi > m _ V RNALST z', C. re re r- 1-r Legend - City Boundary Merged Project Area San Jauntn Project Area LT: Sababa Springs Project Area RAMONAIEXY RECDR❑RD ES°L1NADE AV E 0 0.25 0.5 1.5 EXHIBIT C 2 Moe. Redevelopment Agency of the City of San Jacinto EXHIBIT C DRAFT METHOD OF RELOCATION FOR THE MERGED SAN JACINTO REDEVELOPMENT PROJECT AREA Redevelopment Agency of the City of San Jacinto Redevelopment Agency of the City of San Jacinto RSG INTELLIGENT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC. 309 West 4th Street Santa Ana, Califomia 92701-4502 Phone: (714) 541-4585 Fax: (714) 541-1175 E-Mail: infoaa webrsg.com REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO METHOD OF RELOCATION FOR AMENDED AND RESTATED REDEVELOPMENT PLAN FOR THE MERGED SAN JACINTO REDEVELOPMENT PROJECT AREA BACKGROUND In the adoption and implementation of the Amended and Restated Redevelopment Plan ("Amended Plan") for `Merged San Jacinto Redevelopment Project ("Merged Project Area"), the Redevelopment Agency of the City of San Jacinto ("Agency") is the public agency responsible for relocation resulting from the acquisition of real property by the Agency or by a private party pursuant to an agreement with the Agency ("Agency Acquisition"). The Merged San Jacinto Project Area incorporates all the territory within the boundaries of the San Jacinto Redevelopment Project Area including the original San Jacinto Project Area adopted June 28, 1983, the area added to the San Jacinto Project Area on December 28, 1993, and the Soboba Springs Redevelopment Project as adopted on December 28, 1983. The Merged San Jacinto Project Area does not include the territory deleted from the San Jacinto Redevelopment Project Area on February 20, 1996. The Merged San Jacinto Project Area totals approximately 4,085 acres. Exhibit A illustrates the boundaries of the Merged San Jacinto Redevelopment Project Area. The proposed amendments being considered by the Agency incorporate the following: 1) merge the San Jacinto and Soboba Springs Redevelopment Project Areas for financial reasons; 2) update and expand the capital improvement projects list for both project areas; 3) adopt a single Merged, Amended and Restated Redevelopment Plan to cover the existing project areas; 4) re -instate eminent domain authority in the San Jacinto Project Area only for a 12 year period commencing with the effectiveness of the ordinance adopting the Amended Plan (if adopted); and (5) update other technical provisions of the Amended Plan to be consistent with California Community Redevelopment Law ("CRL"). The proposed amendments are an outgrowth of the Agency goals to continue redevelopment efforts currently underway and provide sites to locate affordable housing. The Amended Redevelopment Plan The Agency has prepared a draft Amended Plan, pursuant to the CRL, the California Constitution, and all applicable laws and ordinances. It does not present a specific plan for the redevelopment, rehabilitation, and revitalization of any property or area within the Merged San Jacinto Project Area; instead, it establishes a process and framework for implementation of revitalization efforts. ROSENOW SPEVACEK GROUP INC. PAGE 1 Method of Relocation Sections 33352(f) and 33411 of the CRL require that the Agency prepare a method or plan for the relocation of persons who may be temporarily or permanently displaced as a result of an Agency Acquisition from housing facilities located within the Merged San Jacinto Project Area, and nonprofit local community institutions to be temporarily or permanently displaced as a result of an Agency Acquisition from facilities actually used for institutional purposes in the Merged San Jacinto Project Area. In the application of this Method of Relocation, the Agency will meet its relocation responsibilities through the use of its staff and consultants, supplemented by assistance from local realtors, social service agencies, and civic organizations. It may be necessary for the Agency to undertake relocation actions at some time during project implementation. Specific residents, or nonprofit local community institutions which may be affected by an Agency Acquisition to the extent of a possible relocation cannot be identified at this time. If relocation activities are undertaken, the Agency will handle those relocation cases, which result from an Agency Acquisition on a case -by - case basis. As provided in Section 33411.1 of the CRL, the Agency shall not displace from housing units persons or families of low- and moderate -income unless and until there is a suitable housing unit available and ready for occupancy by such displaced person or family at rents comparable to those at the time of their displacement, and such relocation housing shall be decent, safe, sanitary and suitable to their individual needs; located in areas not less desirable than the displaced person's existing housing unit with respect to access to public utilities, commercial facilities and services. The relocation housing must also be reasonably accessible to the displaced persons' places of employment and priced within their financial means (all of the foregoing as defined in State laws and regulations). The Agency is required to adhere to the State Relocation Law (Government Code 7260 through 7277) and follow the California Relocation Assistance and Real Property Acquisition Guidelines ("State Guidelines") as established in the California Code of Regulations, Title 25, Chapter 6. Therefore, in conformance with Sections 33352(f) and 33411 of the CRL, the Agency adopts, as its "Method of Relocation," the State Guidelines and the State Relocation Law, as those regulations may be amended by the State from time to time. A copy of the State Guidelines and the State Relocation Law which exist as of this date of adoption of this Method of Relocation are incorporated herein by this reference as Exhibit B and C respectively. Any amendments to the State Guidelines of State Relocation Law shall automatically be incorporated in Exhibits B and C respectively. Any Amendments to the State Guidelines or State Relocation Law shall automatically be incorporated in Exhibits B and C respectively without the need for further action by the Agency. Any interested person may contact the Agency to obtain the latest version of the State Guidelines and State Relocation Law, which are also available on the internet. Prior to commencement of any Agency Acquisition which will cause substantial displacement of residents and/or businesses, a specific relocation plan in conformance ROSENOW SPEVACEK GROUP INC. PAGE 2 with the State Guidelines will be prepared and adopted by the Agency. This Relocation Method does not confer any rights or benefits greater than those set forth in the State Guidelines and State Relocation Law. In the event of any conflict between this Relocation Method and the State Guidelines and State Relocation Law, the State Guidelines and State Relocation Law shall control. Exhibit A Exhibit B Exhibit C Merged San Jacinto Redevelopment Project Area Map State Guidelines State Relocation Law ROSENOW SPEVACEK GROUP INC. PAGE 3 ROSENOW SPEVACEK GROUP INC. MERGED SAN JACINTO REDEVELOPMENT PROJECT AREA cc jc,ONA EXY 500TT ST VERNAL ST Z j w w' SI 1 tr Legend -- City Boundary a Merged Project Area .!a San ,Jacinto Project Area Soboba Springs Project Area ROArRE'gi'' M 0 0.25 0.5 1.5 EXHIBIT A 2 H H Miles m 70 17 cn m D Z ® 0 L Dm _° -I Z =_ A W o >m> 3i D -am r 0 m Z EXHIBIT B STATE GUIDELINES (SEE FOLLOWING PAGES) ROSENOW SPEVACEK GROUP INC. PAGE 5 ALIFORNIA CODE OF REGULATIONS TITLE 25, DIVISION 1, CHAPTER 6 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES As of November 1999 PROVIDED COURTESY OF OVERLAND PACIFIC & CUTLER, INC.' (800) 400-7356 www.OPCservices.com CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES CALIFORNIA CODE OF REGULATIONS, TITLE 25, CHAPTER 6 INDEX ARTICLE 1. GENERAL 1 6000. Order of Adoption 1 6002. Statement of Purpose and Policy 1 6004. Applicability and Supersedure 1 6006. Regulations 2 6008. Definitions 2 6010. Prior Determinations 6 6012, Citizen Participation 7 6014. Prerequisite to Displacement 7 6016. Remedies 7 6018. Priority of Federal Law 8 6020. Severability 8 ARTICLE 2. RELOCATION ASSISTANCE ADVISORY PROGRAM AND ASSURANCE OF COMPARABLE REPLACEMENT HOUSING 9 6030. Purpose 9 6032. Relocation Assistance Advisory Program 9 6034. Eligibility 9 6036. Rehabilitation and Demolition 10 6038. Relocation Plan 10 6040. Minimum Requirements of Relocation Assistance Advisory Program 11 6042. Replacement Housing Prior to Displacement; Notices To Displaced Persons 12 6044. Temporary Move 13 6046, Infolination Program 14 6048. Survey and Analysis of Relocation Needs 14 6050. Failure to Conduct Timely and Effective Survey 15 6052. Survey and Analysis of Available Relocation Resources 15 6054. Last Resort Housing 17 6056. Termination of Relocation Assistance 17 6058. Eviction 17 PROVIDED COURTESY OF OV FRI :AND, PACIFIC CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 6060. Evaluation of Relocation 18 ARTICLE 3. RELOCATION PAYMENTS 20 6080. Purpose 20 6082. Relocation Payment by Public Entity 20 6084. Basic Eligibility Conditions 20 6086. Notice of Intent to Displace 20 6088. Filing of Claims; Submission of Tax Returns 20 6090. Actual Reasonable Moving Expenses 20 6092. Actual Direct Losses of Tangible Personal Property 23 6094. Actual Reasonable Expenses in Searching for a Replacement Business or Farm 23 6096. Moving Expenses - Outdoor Advertising Businesses 23 6098. Alternate Payments Individuals and Families 24 6100. Alternate Payments Businesses and Farm Operations 24 6102. Replacement Housing Payments for Homeowners 26 6104. Replacement Housing Payments for Tenants and Certain Others 29 6106. Proration of Payments 30 6108. Condition of Replacement Dwelling 30 6110. Certificate of Eligibility 31 6112. Manufactured Homes and Mobilehotnes 31 6114. Affected Property 32 ARTICLE 4. LAST RESORT HOUSING 33 6120. Purpose 33 6122. Determination of Need for Last Resort Housing 33 6124. Development of Replacement Housing Plan 33 6126. Submission of Plan for Comment 34 6128. Determination by Displacing Public Entity of Feasibility and Compliance 34 6130. Implementation of the Replacement Housing Plan 34 6132. Housing Production 35 6134. Jointly Sponsored Development 35 6136. Last Resort Housing In Lieu of Payments 35 6138. Conformity with the Act and Other Statutes; Policies and Procedures 35 6139. Last Resort Housing 35 ARTICLE 5. GRIEVANCE PROCEDURES 37 6150. Purpose 37 6152. Right of Review 37 PROVIDED COURTESY or OVERLAND, PACIFIC' & CUTLER. C. CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 6154. Notification to Complainant 37 6156. Stages of Review by a Public Entity 37 6158. Formal Review and Reconsideration by the Public Entity 38 6160. Refusals to Waive Time Limitation 39 6162. Extension of Time Limits 39 6164. Recommendations by Third Party 39 6166. Review of Files by Claimant 39 6168. Effect of Determination on Other Persons 39 6170. Right to Counsel 39 6172. Stay of Displacement Pending Review 39 6174. Joint Complainants 39 6176. Judicial Review 40 ARTICLE 6. ACQUISITION POLICIES 41 6180. Purpose 41 6182. Acquisition 41 6184. Notice of Decision to Appraise 43 6186. Time of Offer 43 6188. Notice of Land Acquisition Procedures 43 6190. Notice of Public Entity's Decision Not to Acquire 44 6192. Incidental Expenses 44 6194. Short Term Rental 44 6195. Public Information 45 6196. Service of Notice 45 6198. Nonpossessory Interest Exception 45 PROVIDED COURTESY OF OVERLAND, I AC IC &. CUTLER, INC. CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVENIRER 1999 ARTICLE 1. GENERAL 6000. Order of Adoption. This subchapter (hereinafter referred to as the "Guidelines") is adopted pursuant to the provisions of Section 41135, Health and Safety Code, in order to implement, interpret and to make specific provisions of Division 7, commencing with Section 7260 of the Government Code (hereinafter referred to as the "Act"), relating to relocation assistance, last resort housing and real property acquisition. 6002. Statement of Purpose and Policy. (a) The purpose of the Guidelines is to assist public entities in the development of regulations and procedures implementing the Act. (b) The Guidelines are designed to carry out the following policies of the Act:: (1)To ensure that uniform, fair and equitable treatment is afforded persons displaced from their homes, businesses or farms as a result of the actions of a public entity in order that such persons shall not suffer disproportionate injury as a result of action taken for the benefit of the public as a whole; and (2) In the acquisition of real property by a public entity, to ensure consistent and fair treatment for owners of real property to be acquired, to encourage and expedite acquisition by agreement with owners of such property in order to avoid litigation and relieve congestion in courts, and to promote confidence in public land acquisition. (c) A public entity shall not participate in or undertake a project that will displace individuals from their homes unless comparable replacement dwellings (see subsection 6008(c)) will be available within a reasonable period of time prior to displacement. (d) The Guidelines are intended to establish only minimum requirements for relocation assistance and payments. They shall not be construed to limit any other authority or obligation which a public entity may have to provide additional assistance and payments. (e) The Act and the Guidelines are intended for the benefit of displaced persons, to ensure that such persons receive fair and equitable treatment and do not suffer disproportionate injuries as the result of programs designed for the benefit of the public as a whole. The Act, Guidelines and all applicable regulations on which determinations are based shall be construed to effect this intent. 6004. Applicability and Supersedure. (a) Except as otherwise noted in this section, the Guidelines are applicable to all displacement and acquisition occurring on or after their effective date, January 1, 1977. (b) These Guidelines supersede those adopted by the Commission of Housing and Community Development on October 17, 1973. The guidelines so superseded shall not apply to any displacement or acquisition occurring on or after the effective date of these Guidelines. Any such displacement or acquisition shall be governed solely by these Guidelines and the California Relocation Act, found at Government Code Section 7260 et seq. The provisions of these Guidelines, however, shall not be construed retroactively to apply to action(s) undertaken by a public entity prior to their effective date where the purpose of the action was to fulfill obligations imposed by the Act and action is in compliance with the requirements of the Act and the existing Guidelines. For the purpose of this section the term "action" shall include but is not limited to: the provision of information, notice, other assistance, comparable replacement housing, payment and other benefits; the preparation of relocation and last resort housing plans, including the survey and analysis of needs and resources; the PROVIDED COURfESV OF OVItA N. lwww.OPCservicescom) Page 1of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVENBER 1999 processing of grievances; and the various steps taken in connection with the acquisition of property for public use. These guidelines shall apply to relocation plans and notices to displacees subsequent to the effective date of any regulatory provision. The right of displacees shall not be reduced in reliance on any amendment to these guidelines where it may be demonstrated that the displacee has acted in reliance on a notice given to that household prior to the effective date of any guideline. (c) To the extent that these Guidelines are from time to time amended, the amendments shall be effective prospectively from the date that they become effective. 6006. Regulations. (a) Each public entity before undertaking or participating in activity which will result in the displacement of persons shall adopt rules and regulations that implement the requirements of the Act, are in accordance with the provisions of the Guidelines, and prescribe additional procedures and requirements that are appropriate to the particular activities of the public entity and not inconsistent with the Act or Guidelines. (b) Rules and regulations issued under this section shall be promptly revised as necessary, to conform to any amendment of the Act or Guidelines. 6008. Definitions. The following terms shall mean: (a) Acquisition. Obtaining ownership or possession of property by lawful means. (b) Business. Any lawful activity, except a farm operation provided such lawful activity is not in an unlawful occupancy as defined in subsection (v), conducted primarily: (1) For the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property; (2) For the sale of services to the public; (3) By a nonprofit organization; or (4) Solely for the purpose of a moving expense payment (see section 6090), for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not such display is located on the premises on which any of the above activities are conducted. (c) Comparable Replacement Dwelling. A dwelling which satisfies each of the following standards: (1) Decent, safe and sanitary (as defined in subsection 6008(d)), and comparable to the acquired dwelling with respect to number of rooms, habitable living space and type and quality of construction, but not lesser in rooms or living space that is necessary to accommodate the displaced person. (2) In an area not subjected to unreasonable adverse environmental conditions from either natural or manmade sources, and not generally less desirable than the acquired dwelling with respect to public utilities, public and commercial facilities and neighborhood conditions, including schools and municipal services, and reasonable accessible to the displaced person's present or potential place of employment; provided that a potential place of employment may not be used to satisfy the accessibility requirement if the displaced person objects. The Act and Guidelines do not require that the replacement dwelling be generally as desirable as the acquired dwelling with respect to environmental characteristics. Though a displaced person does not have to accept a dwelling subject to unreasonable PRO DEL) COUR!TAN OE:( _x(_A ND, PACIFIC le n.r-II, INC. w.DI Cs°rviees.com) Page 2 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMEER 1999 adverse environmental conditions. neither is a public entity required to duplicate environmental characteristics, such as scenic vistas or proximity to the ocean, lakes, rivers, forests or other natural phenomena. If the displaced person so wishes, every reasonable effort shall be made to relocate such person within or near to his existing neighborhood. Whenever practicable the replacement dwelling shall be reasonably close to relatives, friends, services or organizations with whom there is an existing dependency relationship. (3) Available on the private market to the displaced person and available to all persons regardless of race, color, sex, marital status, religion, or national origin in a manner consistent with Title VII I of the Civil Rights Act of 1968 or any other applicable state or federal anti -discrimination law. (4) To the extent practicable and where consistent with paragraph (c)(1) of this section, functionally equivalent and substantially the same as the acquired dwelling, but not excluding newly constructed housing. (5)(A) Within the Financial Means of the Displaced Person. A replacement dwelling is within the financial means of a displaced person if the monthly rental cost (including utilities and other reasonable recurring expenses) minus any replacement housing payment available to the person (as provided in sections 6104) does not exceed thirty percent (30%) of the person's average monthly income (as defined in subsection 6008 (1)). (B) For homeowners; a replacementdwelling is within the financial means of a displaced person if the purchase price of the dwelling including related increased interest costs and other reasonable expenses including closing costs (as described in section 6102) does not exceed the total of the amount of just compensation provided for the dwelling acquired and the replacement housing payment available to the person (as provided in section 6102). If a dwelling which satisfies these standards is not available the public entity may consider a dwelling which exceeds them. (d) Decent, Safe and Sanitary. (1) Housing in sound, clean and weather tight condition, in good repair and adequately maintained, in conformance with the applicable state and local building, plumbing, electrical, housing and occupancy codes or similar ordinances or regulations and which meets the following minimum standards: (A) Each housekeeping unit shall include a kitchen with a fully usable sink, a stove or connection for a stove, a separate and complete bathroom, hot and cold running water in both bathroom and kitchen, and adequate and safe wiring system for lighting and other electrical services and heating as required by climatic conditions and local codes. (B) Each nonhousekeeping unit shall be in conformance with state and local code standards for boarding houses, hotels and other dwellings for congregate living. (2) When the term decent, safe and sanitary is interpreted, under local, state or federal law, as establishing a higher standard, the elements of that higher standard, which exceed the provision of paragraph (1) of this subsection, are incorporated herein. A unit which is occupied by no more than the maximum number of people allowed under the State Building Code shall be considered to be in compliance with the occupancy provisions of this subsection. (e) Department. Department of Housing and Community Development. PR( vu)bD(Oi 11:SY,)f()VL'RLANll, PA('1flC&11flLI:R. aNC, rwv.. w.OI'Cseviee..comi Page 3 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 (f) Displaced Person. Any person who moves from real property, or who moves his personal property from real property, either: (1) As a result of a written notice of intent to acquire by a public entity or as a result of the acquisition of such real property, in whole or in part, by a public entity or by any person having an agreement with or acting on behalf of a public entity, or as the result of written order from a public entity to vacate the real property, for public use; or (2) As a result of the rehabilitation, demolition or other displacing activity undertaken by a public entity or by any person having an agreement with or acting on behalf of a public entity of real property on which the person is in lawful occupancy or conducts a business, and the displacement, except as provided in Government Code Sections 7262.5, lasts longer than 90 days. This definition shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for or in connection with a public use where the public entity is otherwise empowered to acquire the property to carry out the public use. (3) Except persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing which was made available to them on a permanent basis by a public agency and who are required to move from that housing, a displaced person shall not include any of the following: (A) Any person who has been determined to be in unlawful occupancy of the displacement property as defined in subsection 6008 (v). (B) Any person who is a post -acquisition occupant of the displacement dwelling, as provided in section 6034 (b); (C) Any person who occupied the property for the purpose of obtaining relocation benefits and assistance; (D) Any person who is an occupant of a "Qualified affordable housing preservation project" and all requirements of Govemment Code Section 7262.5 are met; or (E) Any person occupying private property (not otherwise entitled to relocation benefits as a result of an acquisition, rehabilitation or demolition program) who is required to move as a result of the displacing agency's routine enforcement of building, housing or health codes unless the code enforcement is undertaken for the purpose of causing displacement in coordination with an identified rehabilitation, construction, or demolition program or project. (F) A person who is not required to move permanently ortemporarily as a result of the project as long as they are notified they are not required to move and the project does not impose an unreasonable change in the character or use of the property. (G) An owner -occupant who moves as a result of an acquisition meeting the requirements of Government Code section 7277. (g) Dwelling. The place of permanent or customary and usual abode of a person, including a single-family dwelling, a single-family unit in a two-family dwelling, multi -family or multipurpose dwelling, a unit of a condominium or cooperative housing project, a nonhousekeeping unit, a mobilehome, a recreational vehicle as described in Health and Safety Code Section 18010, or any other residential unit which either is considered to be real property under State law or cannot be moved without substantial damage or unreasonable cost. A residence need not be decent, safe and sanitary to be a dwelling. PROVu)EOCOUP, Th Y OF 0VER AND, PACIFIC: SLCUT( I-R J . ;www.OPeseivices.com) Page 4of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 A second home shall be considered to be a dwelling only for the purpose of establishing eligibility for payment for moving and related expenses (as provided in section 6090). (h) Economic Rent. The amount of rent a tenant or homeowner would have to pay for a dwelling similar to the acquired dwelling in a comparable area. (i) Elderly Household. A household in which the head of household or spouse is 62 years or older. (j) Family. Two or more individuals who by blood, marriage, adoption, or mutual consent live together as a family unit. (k) Farm Operation. Any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator's support. (I) Gross Income. Gross income means the total annual income of an individual, or where a family is displaced total annual income of the parents or adult heads of household, less the following: (1) A deduction of $500 for each dependent in excess of three. (2) A deduction of ten percent (10%) of total income for an elderly or handicapped household. (3) A deduction for recurring, extraordinary medical expenses, defined for this purpose to mean medical expenses in excess of three percent of total income, where not compensated for or covered by insurance or other sources, such as public assistance or tort recovery. (4) A deduction of reasonable amounts paid for the care of children or sick or incapacitated family members when determined to be necessary to employment of the head or spouse, except that the amount deducted shall not exceed the amount of income received by the person thus released. Gross income is divided by twelve to ascertain the average monthly income. Relocation and property acquisition payments are not to be considered as income for the determination of financial means. (m) Handicapped Household. A household in which any member is handicapped or disabled. (n) Initiation of Negotiations. The initial written offer made by the acquiring entity to the owner of real property to be purchased, or the owner's representative. (o) Manufactured Home or Mobilehome. A structure described in Health and Safety Code sections 18007 and 18008. (p) Mortgage. Such classes of liens as are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby. (q) Ownership. Holding any of the following interests in a dwelling, or a contract to purchase one of the first six interests: (1) A fee title. (2) A life estate. (3) A 50-year lease. (4) A lease with at least 20 years to run from the date of acquisition of the property. (5) A proprietary interest in a cooperative housing project which includes the right to occupy a dwelling. (6) A proprietary interest in a mobilehome. (7) A leasehold interest with an option to purchase. PR ON) FIB ]ESYO ( VE1tt.AND, PACIFIC &(t`11,r'N, INK. (tvwvOPCE vices.coID) Page 5 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 In the case of one who has succeeded to any of the foregoing interest by devise, bequest, inheritance or operation of law, the tenure of ownership, but not occupancy, of the succeeding owner shall include the tenure of the preceding owner. (r) Person. Any individual, family, partnership, corporation, limited liability corporation, or association. (s) Public Entity. Includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state when acquiring real property, or any interest therein, or ordering that acquired property be vacated, in any city or county for public use. (t) Public Use. A use for which property may be acquired by eminent domain. (u) Tenant. A person who rents or is otherwise in lawful possession of a dwelling, including a sleeping room, which is owned by another. (v) Unlawful Occupancy. A person is considered to be in unlawful occupancy if the person has been ordered to move by a court of competent jurisdiction or if the person's tenancy has been lawfully terminated by the owner for cause, the tenant has vacated the premises, and the termination was not undertaken for the purpose of evading relocation assistance obligations. 6010. Prior Determinations. (a) Displacement. No public entity may proceed with any phase of a project or other activity which will result in the displacement of any person, business orfarm until it makes the following determinations: (1) Fair and reasonable relocation payments will be provided to eligible persons as required by Article 3 of the Guidelines. (2) A relocation assistance program offering the services described in Article 2 of the Guidelines will be established. (3) Eligible persons will be adequately informed of the assistance, benefits, policies, practices and procedures, including grievance procedures, provided for in these Guidelines. (4) Based upon recent survey and analysis of both the housing needs of persons who will be displaced and available replacement housing and considering competing demands for that housing, comparable replacement dwellings will be available, or provided, if necessary, within a reasonable period of time priorto displacement sufficient in number, size and cost for the eligible persons who require them. (5) Adequate provisions have been made to provide orderly, timely, and efficient relocation of eligible persons to comparable replacement housing available without regard to race, color, religion, sex, marital status, or national origin with minimum hardship to those affected. (6) A relocation plan meeting the requirements of section 6038 has been prepared. (b) Acquisition. No public entity may proceed with any phase of a project or any other activity which will result in the acquisition of real property until it determines that with respect to such acquisition and to the greatest extent practicable, (1) Adequate provisions have been made to be guided by the provisions of Article 6 of the Guidelines, and (2) Eligible persons will be informed of the pertinent benefits, policies and requirements of the Guidelines. PR(V[I. ICOL'RTLSYOFOVr:RLAND,PACIFIC: &CU"rLLI?,IN[. (wm^s<OPCservices.comj Page 6oC46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVENBER 1999 6012. Citizen Participation. (a) All persons who will be displaced, neighborhood groups and any relocation committee shall be given the opportunity and should be encouraged fully and meaningfully to participate in reviewing the relocation plan and monitoring the relocation assistance program. (b) When a substantial number of persons will be displaced from their dwellings the public entity shall encourage the residents and community organizations in the displacement area to form a relocation committee. The committee shall include, when applicable, residential owner occupants, residential tenants, business people, and members of existing organizations within the area. In lieu of initiating a new process of citizen participation, public entities which have conducted or are conducting a citizen participation process as part of an existing development program may substitute such process if it satisfies the requirements of this section. If a substantial number of persons will not be displaced from their dwellings, the public entity shall at least consult with and obtain the advice of residents and community organizations and make the relocation plan available to such persons and organizations prior to submitting it to the legislative body for approval. (See section 6038.) (c) At a minimum the displacing entity shall guarantee the following: (1) Timely and full access to all documents relevant to the relocation program. A public entity may reasonably restrict access to material where its confidentiality is protected by law or its disclosure is prohibited by law. The displacing entity shall ensure that the information in documents the provision of which would result in disclosure of the identity of eligible persons is provided in a manner designed to avoid such disclosure. This obligation to avoid improper disclosure shall not effect the right of the person to which the information relates (or any other person authorized in writing by such person) to inspect such documents. (2) The provision of technical assistance necessary to interpret elements of the relocation plan and other pertinent materials. (3) The right to submit written or oral comments and objections, including the right to submit written comments on the relocation plan and to have these comments attached to the plan when it is forwarded to the local legislative body or the head of the state agency for approval. (4) Prompt, written response to any written objections or criticisms. 6014. Prerequisite to Displacement. No person shall be displaced until the public entity has fulfilled the obligations imposed by the Act and Guidelines. 6016. Remedies. (a) If the public entity has not fulfilled or is not substantially fulfilling its relocation responsibilities, it shall cease displacement until such time as its responsibilities are fulfilled. When appropriate project implementation shall be suspended or terminated. (b) Eligible persons who move without offers of assistance and benefits, after the public entity was required to offer assistance or benefits, shall be provided such assistance and payments and, when appropriate, compensation for additional costs incurred. The displacing entity shall make every effort to identify and locate such persons. (c) A public entity may pay a complainant's attorney's fees and costs and is encouraged to consider doing so when a complainant institutes a successful administrative appeal or judicial action. (d) The enumeration of remedies in this section is not intended to discourage or preclude the use of other remedies consistent with the intent of the Act and Guidelines. Rather a public entity is encouraged to consider and adopt other remedies. PROVIDED COI,P, th OVFKI +ND, PACIFIC&CUTLER. INC. iv_OPCsercmes.com) Page 7 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 6018. Priority of Federal Law. If a public entity undertakes a project with federal financial assistance and consequently must provide relocation assistance and benefits as required by federal law, the provisions of the Act and Guidelines shall not apply; but if an obligation to provide relocation assistance and benefits is not imposed by federal law the provisions of the Act and Guidelines shall apply. 6020. Severability. If any provision of the Guidelines or the application thereof is held invalid, such invalidity shall not affect other provisions or applications of the Guidelines which can be given effect without invalid provision or application, and to this end the provisions of the Guidelines are severable. IDED COURTESY TESY OF 0VI BLAND, Ync fllC & < In'LCR, 1 ND, w.OPCsDv ces.emu) Page 8 of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 ARTICLE 2. RELOCATION ASSISTANCE ADVISORY PROGRAM AND ASSURANCE OF COMPARABLE REPLACEMENT HOUSING 6030. Purpose. The purpose of this part is to set forth requirements with respect to the development and implementation of a relocation assistance advisory program for the provision of specified services and to prescribe the obligation of a public entity not to displace or cause the displacement of any person from his dwelling without adequate notice and unless comparable replacement housing is available. 6032. Relocation Assistance Advisory Program. Public entities shall develop and implement a relocation assistance advisory program which satisfies the requirements of this article and of Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, the Unruh Civil Rights Act, Rumford Act and applicable state and federal anti -discrimination laws. Such program shall be administered so as to provide advisory services which offer maximum assistance to minimize the hardship of displacement and to ensure that (a) all persons displaced from their dwellings are relocated into housing meeting the criteria for comparable replacement housing, and (b) all persons displaced from their places of business or farm operations are assisted in reestablishing with a minimum of delay and loss of earnings. 6034. Eligibility. (a) Relocation assistance and benefits shall be available to: (1) Any person who occupies property from which he will be displaced. (2) Any person who will move from real property or will move his personal property from real property, because he will be displaced from other real property on which he conducts a business or farm operation. (3) Any person who moves from real property as a result of its acquisition by a public entity whether the move is voluntary or involuntary. (4) Any person who, following the initiation of negotiations by a public entity, moves as the result of the pending acquisition. (5) Any person who moves as the result of pending acquisition, rehabilitation or demolition by a public entity either following receipt of a Notice of Intent to Displace (see section 6086) or as a result of inducement or encouragement by the public entity. (b) (1) Post -acquisition tenants, those who lawfully occupy property only after a public entity acquires it, or who lawfully occupy property after the private acquisition of property by a person with a written agreement with a public entity for the purpose of financing the purchase or development of the property, are not eligible for assistance and benefits other than advisory assistance to the extent determined by the displacing agency. A public entity shall inform post -acquisition tenants regarding the projected date of displacement and, periodically, should inform post -acquisition tenants of any changes in this projection. (2) When the displacement of a post -acquisition tenant causes a hardship for the person because of a critical housing shortage, age, handicap, infirmity, lack of financial means or other circumstance, the displacing entity shall provide relocation advisory assistance and, may in its discretion, provide other financial relocation benefits. In such hardship situations a public entity is encouraged to provide advisory assistance and payment for moving expenses. (3) Where a public entity, or property it owns, is making housing available on a permanent basis, a post -acquisition tenant who moves as the result of a written order PRov[cam (0(arew ni Ovrxl.:wD, PACIFIC & t I;?LLR. lnl . P,V,A. 01'C services.com; Page 9 of 46 CALIFORNLA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 from the public entity to vacate is eligible for relocation assistance and benefits if the order to vacate is related to a plan to demolish, rehabilitate or change the use of such units. 6036. Rehabilitation and Demolition. If a public entity undertakes a rehabilitation or demolition program and as a result a person or business is displaced from privately owned property, the public entity shall provide assistance and benefits. If person or business is displaced by such an undertaking from property acquired by a public entity, the public entity shall provide assistance and benefits. 6038. Relocation Plan. (a) As soon as possible following the initiation of negotiations and prior to proceeding with any phase of a project or other activity that will result in displacement a public entity shall prepare a Relocation Plan and submit it for approval to the local legislative body, or in the case of a state agency, the head of the agency. When the public entity's action will only result in an insignificant amount of non-residential displacement a displacing entity shall provide benefits as required by these Guidelines and state Relocation Law without compliance with this section. For residential projects of 15 or less households, the full and accurate completion of the Model Relocation Plan HCD-832 (new), which is incorporated by reference as if set forth in full, shall be presumed to be in compliance with the planning requirements of this section. Copies of the Model Relocation Plan HCD-832 (6/8/99) as well as the Informational Notice HCD-833 (6/8/99), which is incorporated by reference as if set forth in full, maybe downloaded from the Departments Internet Website at <www.hcd.ca.gov>. This form can be obtained from The Department by telephoning 916-323-7288. (b) A Relocation Plan shall include the following: (1) A diagrammatic sketch of the project area. (2) Projected dates of displacement. (3) A written analysis of the aggregate relocation needs of all persons to be displaced (as required by section 6048) and a detailed explanation as to how these needs are to be met. (4) A written analysis of relocation housing resources (as required by section 6052). (5) A detailed description of the relocation advisory services program, including specific procedures for locating and referring eligible persons to comparable replacement housing. (6) A description of the relocation payments to be made (pursuant to Article 3) and a plan for disbursement. (7) A cost estimate for carrying out the plan and identification of the source of the necessary funds. (8) A detailed plan by which any last resort housing (as described in section 6054 and Article 4) is to be built and financed. (9) A standard information statement to be sent to all renters who will be permanently displaced (as required by section 6046) (10) Temporary relocation plans, if any. (11) A description of relocation office operation procedures. (12) Plans for citizen participation. (13) An enumeration of the coordination activities undertaken (pursuant to section 6052). (14) The comments of the relocation committee, if any (pursuant to section 6012). PROVIDED (.OIJRIE2S1' or 0 Vilti :a ND, P OA. LER, INC. it+ww.OPC.serices.cnml Page 10 of46 (f) CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NO VENIDER 1999 (15) A written determination by the public entity that the necessary resources will be available as required. (c) A Plan prepared by a local public entity shall be consistent with the local housing element. (d) In the event of delay of more than one year in the implementation of the relocation program, the plan shall be updated prior to implementation of that program. (e) (1) Copies of the plan shall be submitted for review to the relocation committee 30 days prior to submission to the local legislative body or head of state agency for approval. Copies shall be available to the public upon request. A copy of the final relocation plan shall be forwarded to the department which shall act as a central repository. (2) General notice of the plan shall be provided. Notice shall be designed to reach the occupants of the property; it shall be in accordance with the provisions of paragraph 6046(a)(3) and subsection 6046(b); and it shall be provided 30 days prior to submission to the local legislative body or head of state agency for approval. Any displaced person or interested organization may petition the Department to review the relocation plan required to be submitted by the displacing agency. The Department shall review the plan in accordance with the time constraints and the procedures established in Article 5. 6040. Minimum Requirements of Relocation Assistance Advisory Program. (a) Each relocation assistance advisory program undertaken pursuant to this Article shall include, at a minimum, such measures, facilities or services as may be necessary or appropriate in order to: (1) Fully inform eligible persons under this Article within 60 days following the initiation of negotiations but not later than the close of escrow on the property, for a parcel as to the availability of relocation benefits and assistance and the eligibility requirements therefor, as well as the procedures for obtaining such benefits and assistance, in accordance with the requirements of section 6046. For projects by private parties with an agreement with a public entity, the "initiation of negotiations" shall be the later of the date of acquisition or the date of the written agreement between the private entity and the public entity for purposes of acquiring or developing the property for the project. (2) Determine the extent of the need of each such eligible person for relocation assistance in accordance with the requirements of section 6048. (3) Assure eligible persons that within a reasonable period of time prior to displacement there will be available comparable replacement housing, meeting the criteria described in section 6008(c), sufficient in number and kind for and available to such eligible persons. (4) Provide current and continuing information on the availability, prices, and rentals of comparable sales and rental housing, and of comparable commercial properties and locations, and as to security deposits, closing costs, typical down payments, interest rates, and terms for residential property in the area. (5) Assist each eligible person to complete applications for payments and benefits. (6) Assist each eligible, displaced person to obtain and move to a comparable replacement dwelling. PRI VID1.1)CLA R IIIIY OF ObTRLA NI), PA(.i£IC fx' ('; IL.I:iR, INC. •rv,OP(services.nom) Page 11 of46 CALIFORNIA RELOCATION ASSISTANCE AND (ZEAL PROPERTY ACQUISTTION GUIDELINES AS OF NOVEMBER 1999 Only adequate inspection will insure that a particular unit meets this standard. If a displaced person occupies a unit to which he is referred by the public entity and the unit does not satisfy the comparable replacement dwelling standard, the public entity has not fulfilled its obligations to assist the displaced person to obtain such a dwelling. Whenever this occurs the public entity shall offer to locate such a dwelling for the displaced person and to pay again all moving and related expenses. If the displaced person chooses not to move from the unit that he occupied following referral, the public entity shall not assert that he is ineligible to receive relocation assistance and benefits on the basis of that unit's failure to satisfy the comparable replacement dwelling standard. (7) Assist each eligible person displaced from his business or farm operation in obtaining and becoming established in a suitable replacement location. (8) Provide any services required to insure that the relocation process does not result in different or separate treatment on account of race, color, religion, national origin, sex, marital status, familial status, or any basis protected by state or federal anti- discrimination laws, or any other arbitrary circumstances. (9) Supply to such eligible persons information concerning federal and state housing programs, disaster loan and other programs administered by the Small Business Administration, and other federal or state programs, offering assistance to displaced persons. (10) Provide other advisory assistance to eligible persons in order to minimize their hardships. It is recommended that, as needed, such assistance include counseling and referrals with regard to housing, financing, employment, training, health and welfare, as well as other assistance. (11) Inform all persons who are expected to be displaced about the eviction policies to be pursued in carrying out the project, which policies shall be in accordance with the provisions of section 5058. (b) Relocation Office. When a substantial number of persons will be displaced and the relocation staffs office is not easily accessible to those persons, a displacing entity is encouraged to establish at least one appropriately equipped site office which is accessible to all the area residents who may be displaced and is staffed with trained or experienced relocation personnel. Office hours should be scheduled to accommodate persons unable to visit the office during normal business hours. (c) Each displacing entity shall establish and maintain a formal grievance procedure for use by displaced persons seeking administrative review of the entity's determinations. The procedure shall be in accordance with the requirements of Article 5. 6042. Replacement Housing Prior to Displacement; Notices To Displaced Persons. (a) No eligible person shall be required to move from his dwelling unless within a reasonable period of time prior to displacement comparable replacement dwellings (as defined in subsection 6008) (c) or, in the case of a temporary move (as defined in section 6044), adequate replacement dwellings (as defined in subsection (b) below) are available to such person. (b) The criteria for adequate replacement dwellings are in all respects identical to those for comparable replacement dwellings, except that an adequate replacement dwelling, with respect to the number of rooms, habitable living space and type of construction, need be only adequate not comparable. (c) Reasonable Offer of Replacement Housing. The requirements of this section shall be deemed to have been satisfied if a person is offered and refuses without justification reasonable choices of specifically identified comparable replacement dwellings which fully satisfy the 1'aovu�IsuCOSEIBY or OvIPLANO, PAC Inc & CUTLER, INC. ( www.OI'Cse;vices.com) Page 12 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OE NOVEMBER 1999 criteria set forth in the Guidelines. The offers shall be in writing, in a language understood by the displaced person. The number of offers determined to be reasonable should be not less than three. (d) Notice. No eligible person occupying property shall be required to move from a dwelling or to move a business of farm operation, without at least 90 days written notice from the public entity requiring the displacements. Public entities shall notify each individual tenant to be displaced as well as each owner -occupant. (These requirements are in addition to those contained in sections 6040 and 6046.) (e) Waiver. The requirement in subsection (a) above may be waived only when immediate possession of real property is of crucial importance and by one of the following circumstances: (1) When displacement is necessitated by a major disaster as defined in Section 102 (2) of the Hazard Mitigation and Relocation Assistance Act of 1993 (42 U.S.C. 5121) and/or the California Natural Disaster Assistance Act. (2) During periods of declared national or state emergency. 6044. Temporary Move. (a) General. (1) A public entity shall be required to minimize to the greatest extent feasible the use of temporary relocation resources (as defined in section 6042) but, when a project plan anticipates moves back into completed project accommodations, temporary relocation resources may be used, at the displaced person's election for a limited period of time. (2) Temporary relocation does not diminish the responsibility of the public entity to provide relocation assistance, services and benefits designed to achieve permanent relocation of displaced persons into comparable replacement dwellings. (b) Requirements. (1) Temporary replacement housing may not be relied upon if comparable replacement housing will not be available to the displaced person within 12 months of the date of the temporary move. (2) Prior to the move, the public entity shall have determined and have provided written assurance to each displaced person that: (A) Comparable replacement housing will be made available at the earliest possible time but in any event no later than 12 months from the date of the move to temporary housing. Temporarily housed persons may agree to extend the 12 month limitation but, if they do not, the public entity shall ensure that comparable replacement dwellings are available within the 12 month period. (B) Comparable replacement housing will be made available, on a priority basis, to the individual or family who has been temporarily rehoused. (C) The move to temporary housing will not affect a claimant's eligibility for a replacement housing payment nor deprive him of the same choice of replacement housing units that would have been made available had the temporary move not been made and the costs of a temporary move will not be considered as all or a part of the relocation payments to which a displaced person is entitled. (D) If a project plan anticipates moves back into replacement housing accommodations in the project or program area, the person who has been temporarily displaced will be given priority opportunity to obtain such housing accommodations. (E) The public entity will pay all costs in connection with the move to temporary housing, including increased housing costs. PROVIDED COtR1e,vOFOVI-RIAND, PACDIC&I'! IL.H.INc. (wuw.OPCServiees.CDI Page I3of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 6046. Information Program. (a) Basic Requirements. The displacing entity shall establish and maintain an information program that provides for the following: (1) Preparation and distribution of informational material as early as practicable, to each occupant of the property. This material shall be distributed within 60 days following the initiation of negotiations (see paragraph 6040(a)(1)) and not less than 90 days in advance of displacement except for those situations described in subsection 6042(e). Where appropriate, separate informational statements shall be prepared for residential and for non-residential occupants. (2) Conducting personal interviews and maintaining personal contacts with occupants of the property to the maximum extent practicable. (3) Utilizing meetings, newsletters, and other mechanisms, including local media available to all persons, for keeping occupants of the property informed on a continuing basis. The criterion for selecting among various alternatives shall be the likelihood of actually communicating information to such persons. Legal publications, legal ads in local newspapers of general circulations and similar means which may go unnoticed are deemed to be inadequate. (b) Language. Informational material should be prepared in the language(s) most easily understood by the recipients. In displacement areas where there are significant concentrations of persons who do not read, write, or understand English fluently, the native language of the people should be used and all information material should be provided in the native language(s) and English. (c) Method of Delivery. To assure receipt of the informational material, the local agency should arrange to have the material either hand -delivered to each occupant of the property with a request for a written receipt, or sent by certified mail, return receipt requested. (d) General and Specific Information. In addition to disseminating general information of the type described in this section, the displacing entity shall also provide each person with individual, written notification as soon as his eligibility status has been established. (e) Content of Informational Statement. Attachment A identifies the kinds of information required to be included in statements distributed to occupants of the property. The figure lists minimum requirements. The displacing entity should include any additional information that it believes would be helpful (See Attachment A) 6048. Survey and Analysis of Relocation Needs. (a) (1) Requirement. Immediately following the initiation of negotiations interview all eligible persons, business concerns, including nonprofit organizations, and farm operations to obtain information upon which to plan for housing and other accommodations, as well as counseling and assistance needs. (2) Coordination with Other Agencies. Other agencies may also be conducting surveys in the area at the same time. Coordination will be necessary to avoid duplication and to ensure that necessary information is available at the appropriate time. Surveys utilized to gather data for social service referrals should be planned in cooperation with social service agencies and a referral system should be established. (3) Information to Persons To Be Displaced. The local agency shall carefully explain and discuss fully with each person interviewed the purpose of the survey and the nature and extent of relocation payments and assistance that will be made available. All persons shall be advised and encouraged to visit the relocation office for information and assistance. PAOVIUGI) (O[RTFS OVI LLAND, P t(INC CI �� LLR, lve lwu-w.OPC servicePage 14 of46 CALIFORNIA RELOCATION ASSISTANCE AN➢ REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVENIDER 1999 (4) Relocation Records. Based on information obtained during the survey and other sources as applicable, the local agency shall prepare and maintain an accurate relocation record for each person to be displaced. The record shall contain a description of the pertinent characteristics of the persons to be displaced and the assistance deemed to be necessary. (b) The survey shall be by direct, personal interview, except where repeated efforts indicate that is not possible. When a person cannot be interviewed or the interview does not produce the information to be obtained reasonable efforts shall be made to obtain the information by other means. Eligible persons should be encouraged to bring any change in their needs to the attention of relocation officials. The survey shall be updated at least annually. (c) A public entity shall endeavor to obtain the following information: income; whether a person is elderly or handicapped; size of family; age of children; location of job and factors limiting accessibility; area of preferred relocation; type of unit preferred; ownership or tenant preference; need for social and public services, special schools and other services; eligibility for publicly assisted housing; and with reference to the present dwelling, the rent, the type and quality of construction, the number of rooms and bedrooms, the amount of habitable living space, and locational factors including among others public utilities, public and commercial facilities (including transportation and schools) and neighborhood conditions (including municipal services). Other matters that concern a household as its members contemplate relocation should also be included. (d) A written analysis of relocation housing needs shall be prepared. It shall be prepared in sufficient detail to enable determination of the availability for all potential displacees of housing which meets the standards set forth in the definition of comparable replacement housing. The information concerning homeownership and rental units shall be provided separately. The number of units needed shall be identified by cost for each size category. The needs of elderly and handicapped households shall be shown separately and shall include information on the number of such households requiring special facilities and the nature of such facilities. The statement of relocation housing needs shall include a description of the locational characteristics of the displacement area neighborhoods corresponding to the requirements of comparable replacement housing. Information shall be provided concerning proximity to present employment sources, medical and recreational facilities, parks, community centers, shopping, transportation and schools. Information concerning proximity to other relevant needs and amenities is essential to ensuring that no residents are incapacitated by the relocation and such information also should be provided. 6050. Failure to Conduct Timely and Effective Survey. When a survey is not conducted in a timely and effective manner, the public entity shall be obligated to make every effort to locate all eligible persons who have moved so that their needs can be included in the survey and the impact on the housing stock in the community can be more accurately determined. The public entity shall offer such persons all relocation assistance and benefits for which they otherwise qualify and, in addition, shall compensate such persons for all costs occasioned by the entity's failure to provide timely notice and offers of relocation assistance and benefits. 6052. Survey and Analysis of Available Relocation Resources. (a) (1) To enable a public entity reasonably to determine that the requisite comparable replacement dwellings will be available, the public entity, within 60 days following the initiation of negotiations, shall initiate a survey and analysis of available comparable relocation resources. P20VID UC oL.R E5Yvt OV Th AND, PA(91 IC& ('1.'R.EIt, INT IRM'N.OPC SErV ICC'$.com) Page 15 of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 If a recent survey that provides the information identified in this section is not available, the public entity shall conduct a survey and analysis of the housing market. If a recent survey is available, but it does not reflect more recent, significant changes in housing market conditions, the survey shall be updated or it shall not be relied upon. (2) When more than 15 households will be displaced, survey results shall be submitted for review to local housing, development and planning agencies and shall be compared to other existing information on housing availability. (3) The survey shall be updated at least annually. (b) The survey area shall be reasonably related to the displacement area and to the needs and preferences of the persons to be displaced, as indicated in the written analysis prepared pursuant to section 6048. The survey area shall have relevant characteristics (see subsection 6008(c)) which equal or exceed those of the neighborhood from which persons are to be displaced. (c) A written analysis of relocation housing resources shall be prepared in sufficient detail to enable determination of the availability for all potential displacees of housing which meets the standards set forth in the definition of comparable replacement housing. The information concerning homeownership and rental units shall be provided separately. The number of units available shall be identified by cost for each size category. Resources available to meet the needs of elderly and handicapped households shall be shown separately and shall include information on the number of units with special facilities and the nature of such facilities. The analysis of resources shall include a description of the locational characteristics of the survey area neighborhoods corresponding to the requirements of comparable replacement housing. Information shall be provided concerning proximity to present employment sources (with the consent of the displaced person a potential employer may be substituted), medical and recreational facilities, parks, community centers, shopping, transportation and schools. Information concerning proximity to other relevant needs and amenities is essential to ensuring that residents are not incapacitated by the relocation and such information should also be provided. (d) (1) Units which do not satisfy the standards of comparable replacement housing, including the locational criteria, shall not be counted as a relocation resource. (2) Uncompleted new construction or rehabilitation shall not be included in the gross figure unless there is a substantial likelihood that the units will be available when needed and at housing or rental costs within the financial means of the prospective occupants. (3) In addition to the other requirements of this section, the gross figure representing the number of units available shall be discounted to reflect both concurrent displacement and the extent to which turnover is represented. Concurrent displacement by the federal government and its agencies, including federally -assisted projects, as well as displacement by other public entities shall be taken into account. Turnover is the dynamic operation by which occupancy changes occur within a standing inventory over a period of time and theoretically could occur in the complete absence of vacancies on a person to person basis. The use of turnover for relocation is not permissible. The displacing entity shall assume that four percent of the rental and one percent of the ownership units which meet the standards of comparable replacement dwellings (see section 6008(c)) represents turnover. The displacing entity shall use a higher percentage figure if such figure is more accurate. The displacing entity may use a lower figure if it establishes that the lower figure is a more accurate assumption. (4) Publicly subsidized housing, including public housing, shall not be counted as a resource unless it reasonably can be established that: PR(JVII)H)(b1H1E_wOFOv9_IRLAND,PACll"IC&(11LLR,INe_ (www_OfCservlees.eom) Page 16of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMRER 1999 (A) The units will be available when needed; (B) The governmental body providing the subsidy has made, in writing, a reasonably binding commitment of assistance; and (C) The units have been inspected and determined to be decent, safe and sanitary and the income ceilings, rent ranges and age restrictions, if any, have been considered. (D) The number of units available in the community exceeds the number of households in need of the units. This requirement may be waived by the Department if the public entity can establish that such units will be replaced by last resort housing within two years. To establish that last resort housing will be developed as required the public entity must have site control with permissive zoning, preliminary plans and conditional commitments for subsidy and financing or the equivalent. The public entity also must identify ownership. (e) Uncompleted new construction or rehabilitation which is subsidized by public funds shall not be counted as a relocation resource unless the units are being subsidized to provide relocation resources. 6054. Last Resort Housing. (a) No eligible person shall be required to move from his dwelling because of the action of a public entity unless comparable replacement housing is available to him. (b) If on the basis of its survey and analysis of relocation needs and resources a public entity cannot determine that comparable replacement housing will be available as required, the public entity may not proceed with any phase of a project or other activity which will result in displacement unless it provides such housing. (See Article 4.) (c) If the action of a public entity has resulted or is resulting in displacement and comparable replacement housing is not available as needed, the public entity shall use its funds, or funds authorized for the project to provide such housing (see Article 4), or shall terminate or suspend further implementation of the project activity in accordance with the provisions of section 6018. (d) Temporary relocation resources may be relied upon in the interim only if the provisions of section 6004 are satisfied. 6056. Termination of Relocation Assistance. A public entity's relocation obligations cease under the following circumstances: (a) A displaced person moves to a comparable replacement dwelling and received all assistance and payments to which he is entitled. (b) The displaced person moves to substandard housing, refuses reasonable offers of additional assistance in moving to decent, safe and sanitary replacement dwelling and receives all payments to which he is entitled. (c) All reasonable efforts to trace a person have failed. To ensure that the action of a public entity does not reduce the housing supply in critical categories or locations, unsuccessful efforts to trace a particular displaced person shall not lessen the obligation to provide last resort housing (See Article 4.) (d) The business concern or farm operation has received all assistance and payments to which it is entitled and has been successfully relocated or has ceased operations. (e) A person displaced from his dwelling, business or farm refuses reasonable offers of assistance, payments and comparable replacement housing. 6058. Eviction. PRovir,f:❑Co1..RIawOIOVL`RLvND, l'Acunc&lt;i?rat,INC. hvww.01°Cseryices. com) Page 17of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMI3ER 1999 (a) Eviction is permissible only as a last resort. It in no way affects the eligibility of evicted displaced persons for relocation payments. Relocation records must be documented to reflect the specific circumstances surrounding the eviction. (b) Eviction shall be undertaken only for one or more of the following reasons: (1) Failure to pay rent, except in those cases where the failure to pay is due to the lessor's failure to keep the premises in habitable condition, is the result of harassment or retaliatory action or is the result of discontinuation or substantial interruption of services. (2) Performance of a dangerous, illegal act in the unit. (3) Material breach of the rental agreement and failure to correct breach within 30 days of notice. (4) Maintenance of a nuisance and failure to abate within a reasonable time following notice. (5) Refusal to accept one of a reasonable number of offers of replacement dwellings. (6) The eviction is required by State or local law and cannot be prevented by reasonable efforts on the part of the public entity. 6060. Evaluation of Relocation. (a) A public entity is encouraged to evaluate its relocation program, assessing the quality and quantity of services provided as well as displacee satisfaction, to determine the adequacy of program planning and to ascertain whether any persons have been denied the full benefits and services to which they are entitled. The evaluation should be based upon an annual or continual inspection of files and records, case interviews and inspection of replacement housing and business and farm replacement locations and discussions with local individuals or organizations familiar with relocation issues. A written evaluation should be prepared at least annually. (b) The files and records of displaced persons and property owners should be selected at random. The review should include any cases that were identified by previous monitoring as requiring corrective action and should assess the public entity's progress in taking corrective action. Both relocation and acquisition activities should be covered by the review. (1) The relocation sample should include cases in which all payments have been completed and cases in which the person has been displaced but all payments have not yet been made. The sample should provide a basis for the reviewer to determine not only whether payments were computed properly and made promptly, but also whether displaced persons received proper notice of the full range of relocation assistance and services to which they are entitled. Priority attention should be given to cases in which a grievance has been filed or the agency has determined that a person is ineligible for relocation benefits. (2) The acquisition sample should be based on cases in which settlement has been completed. However, if necessary to provide a representative sample of acquisition activities, the reviewer should include incomplete transactions in which negotiations have been initiated. (c) After the records and files have been reviewed, the reviewer should select cases for further evaluation through personal interviews with displaced persons and/or owners and the inspection of housing to which persons have moved. The interviews and housing inspections should serve both to spot check the accuracy of the information obtained in the examination of the records and files and give the reviewer a better perspective on the agency's performance. The number and type of cases for which interviews and housing inspections are to be carried out should reflect the reviewer's judgement based on the information he has just reviewed. PROVIDt D COltftlE 0raNI, f'AcU C& C1,1 LI:a, INC (tk=vw.OPeservicea-cony) Page 18 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OFNOVEMBER 1999 Generally, an interview and inspection should be carried out for at least one of every five cases for which the files and records have been reviewed. Only where the number of persons displaced is less than 25 should the number of interviews and inspections be less than 10. In no case should the number of interviews and inspections be lower than the lesser of five and the number of persons displaced. To the extent possible, the interviews should cover a representative cross section of the types of cases in the agency's workload: e.g., relocation cases involving families of various sizes as well as individuals and business concerns (including both owners and tenants), and acquisition transactions involving residential, commercial and industrial properties. (d) In addition to the above, the following factors are among those which should be considered: (1) The effectiveness of efforts to provide relocation services to displaced persons, including timeliness of notice and correctness of eligibility determinations. (2) The satisfaction of relocated families, individuals and business concerns in their new locations. (3) The extent to which self -moves to substandard housing have been minimized. (4) The effectiveness of efforts to provide relocation services to business concerns, including counseling services and SBA loans to aid in their reestablishment. (5) The promptness of processing claims and the making of payments, including the amounts, delivery, and use of relocation payments. (6) The number and magnitude of rent increases following acquisition and displacement. (7) The effectiveness of methods used to resolve difficulties experienced by site occupants. (8) The effectiveness of the public entity's grievance procedures. (9) The extent of resident involvement in planning the relocation program. (10) The effectiveness in assuring equal opportunity for displaced persons and in reducing patterns of minority -group concentration. (11) The effectiveness of relocation in upgrading the housing and overall environmental conditions of persons displaced. (12) The effectiveness of the social service program, including counseling services, in helping residents adjust to relocation and in helping solve individual and family problems. (13) The impact on those segments of the housing market serving the income groups displaced. PRcv mmC OUR. ENV 0I' OBI -RAND, PA( F(&(rn.tfl? IN[ IwwW,OICSCI"ViCe5.0010) Page 19 of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 ARTICLE 3. RELOCATION PAYMENTS 6080. Purpose. The purpose of this Article is to set forth the types of, and specific eligibility criteria for, relocation payments to displaced persons. Basic eligibility conditions are set forth in section 6084. Specific conditions relating to particular payments are described in later sections. 6082. Relocation Payment by Public Entity. A public entity shall make relocation payments to or on behalf of eligible displaced persons in accordance with and to the full extent permitted by this Article. The obligations described in this Article are in addition to those in Article 6. 6084. Basic Eligibility Conditions. A person establishes basic eligibility for relocation payments if he satisfies the conditions described in section 6034. A person who moves from real property or who moves his personal property from real property because he will be displaced from other real property on which he conducts a business or farm operation, establishes eligibility on the basis of the move from such other property only for payments made pursuant to section 6090. 6086. Notice of Intent to Displace. A public entity may issue a written Notice of Intent to Displace at any time after forming a reasonable expectation of acquiring real property. Such a notice, by establishing eligibility prior to acquisition, will enable a public entity to respond to hardship and other situations. 6088. Filing of Claims; Submission of Tax Returns. All claims filed with the public entity shall be submitted within eighteen months of the date on which the claimant receives final payment for the property or the date on which he moves, whichever is later. The displacing entity may extend this period upon a proper showing of good cause. Except where specifically provided otherwise a claimant shall not be required to submit a copy of his tax returns in support of a claim for relocation payments. 6090. Actual Reasonable Moving Expenses. (a) General. A public entity shall make a payment to a displaced person who satisfies the pertinent eligibility requirements of section 6084 and the requirements of this section, for actual reasonable expenses specified below and subject to the limitations set forth in subsection (c) of this section for moving himself, his family, business, farm operation or other personal property. In all cases the amount of a payment shall not exceed the reasonable cost of accomplishing the activity in connection with which a claim has been filed. The moving and related expenses for which claims may be filed shall include: (1) Transportation of persons and property not to exceed a distance of 50 miles from the site from which displaced, except where relocation beyond such distance of 50 miles is justified; (2) Packing, crating, unpacking and uncrating personal property; (3) Such storage of personal property, for a period generally not to exceed 12 months, as determined by the public entity to be necessary in connection with relocation; (4) Insurance of personal property while in storage or transit; and (5) The reasonable replacement value of property lost, stolen or damaged (not through the fault or negligence of the displaced person, his agent, or employee) in the process of moving, where insurance covering such loss, theft or damage is not reasonably available. PI IIDED COL.' SY OF 0arI I .Heine ( i ri.r_II, INC, nvwtiv. 'C.servlcesann) Page 20of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 (6) The cost of disconnecting, dismantling, removing, reassembling, reconnecting and reinstalling machinery, equipment or other personal property (including goods and inventory kept for sale) not acquired by the public entity, including connection charges imposed by public utilities for starting utility service, (b) Actual Reasonable Moving Expenses — Displaced Business Concerns and Farm Operations. In addition to those compensable expenses set forth in subsection (a) of this section, a displaced business concern or farm operation may file a claim for the following moving and related expenses: (1) The cost, directly related to displacement of modifying the machinery, equipment, or other personal property to adapt it to the replacement location or to utilities available at the replacement location or modifying the power supply. (2) Claims for payment under this subsection shall be subject to the following limitations: (A) Reimbursable costs shall be reasonable in amount. (B) The cost could not be avoided or substantially reduced at an alternate available and suitable site to which the business was referred. (3) The cost of any license, permit or certification required by a displaced business concern to the extent such cost is necessary to the reestablishment of its operation at a new location. (4) The reasonable cost of any professional services (including but not limited to, architects', attorneys', or engineers' fees, or consultants' charges) necessary for planning the move of personal property, moving the personal property, or installation of relocated personal property at the replacement site. (5) Where an item of personal property which is used in connection with any business or farm operation is not moved but is replaced with a comparable item, reimbursement in an amount not to exceed (1) the replacement cost, minus any net proceeds received from its sale, or (2) the estimated cost of moving, whichever is less. (c) Advance Payments. A displaced person may be paid for his anticipated moving expenses in advance of the actual move. A public entity shall provide advance payment whenever later payment would result in financial hardship. Particular consideration shall be given to the financial limitations and difficulties experienced by low and moderate income persons and small farm and business operations. (d) The specific provisions contained in this section are not intended to preclude a public entity's reliance upon other reasonable means of effecting a move, including contracting moves and arranging for assignment of moving expense payments by displaced persons. (e) Self -moves. Without documentation of moving expenses actually incurred, a displaced person electing a self -move may submit a claim for his moving expenses to the public entity in an amount not to exceed an acceptable low bid or an amount acceptable to the displacing entity. (f) Personal Property of Low Value and High Bulk — Business or Farm Operation. Where, in the judgement of the public entity, the cost of moving any item of personal property of low value and high bulk which is used in connection with any business or farm operation would be disproportionate in relation to its value, the allowable reimbursement for the expense of moving such property shall not exceed the difference between the cost of replacing the same with a comparable item available on the market and the amount which would have been received for such property on liquidation. This provision may in appropriate situations be applied to claims involving the moving of junkyards, stockpiles, sand, gravel, minerals, metals and similar property. (g) Documentation in Support of a Claim. Pit cD'ID D COUR-EnsY OF OVlttE.:ANI), PACIFIC & CCT ER,IN111w' w.OPCSrivices.cnm) Page 21 of46 CALIFORNIA. RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES As OF NOVEMBER 1999 (1) General. Except in the case of a displaced person conducting a self -move as provided in subsection (e) above, a claim for a payment under this section shall be supported by a bill or other evidence of expenses incurred. By prearrangement between the public entity, the site occupant, and the mover, evidenced in writing, the claimant or the mover may present an unpaid moving bill to the public entity, and the public entity may pay the mover directly (2) Business and Farm Operations. Each claim in excess of $1,000 for the costs incurred by a displaced person for moving his business or farm operation shall be supported by competitive bids in such number as are practical. If the public entity determines that compliance with the bid requirement is impractical or if estimates in an amount of less than $1,000 are obtained, a claim may be supported by estimates in lieu of bids. (h) Whenever a public entity must pay the actual cost of moving a displaced person the costs of such move shall be exempt from regulations by the Public Utilities Commission as provided by section 7262 (e) of the Act. The public entity may solicit competitive bids from qualified bidders for performance of the work. Bids submitted in response to such solicitations shall be exempt from regulation by the Public Utilities Commission. (i) (1) Reestablishment Expenses. In addition to moving expense payments, a farm, nonprofit organization or small business of not more than 500 employees, shall be entitled to actual and reasonable reestablishment expenses, not to exceed $10,000.00. Reestablishment expenses shall be only those expenses that are reasonable and necessary and include, but are not limited to: (A) Repairs or improvements to the replacement property as required by Federal, State or local law, code or ordinance. (B) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business. (C) Construction and installation costs for exterior signing to advertise the business. (D) Provision of utilities from right-of-way to improvements on the replacement site. (E) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling or carpeting. (F) Licenses, fees and permits when not paid as part of moving expenses. (G) Feasibility surveys, soil testing and marketing studies. (H) Advertisement of replacement location. (I) Professional services in connection with the purchase or lease of a replacement site. (J) Estimated increased costs of operation during the first 2 years at the replacement site for such items as: 1. Lease or rental charges, 2. Personal or real property taxes, 3. Insurance premiums. and 4. Utility charges, excluding impact fees. (K) Impact fees or one-time assessments for anticipated heavy usage. (L) Other items essential to the reestablishment of the business. (M) For purposes of this subsection the term "small business" shall mean a business having not more than 500 employees working at the site being acquired or displaced by a program or project, which site is the location of PICA, u)Eu ( L'R I F,SY r ()VI- Ri ANO, PACUIc&Cu[LER, IN('_ It. ww_OI' servIces.c ) Page 22 of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 economic activity. Sites occupied solely by outdoor advertising signs, displays, or devices do not qualify as a small business for purposes of this subsection. (2) Ineligible expenses. The following is a nonexclusive listing of reestablishment expenditures not considered to be reasonable, necessary, or otherwise eligible: (A) Purchase of capital assets, such as, office furniture, filing cabinets, machinery, or trade fixtures. (B) Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation. (C) Interior or exterior refurbishment at the replacement site which are for aesthetic purposes, except as provided in paragraph (i)(1)(E) of this section. (D) Interest on money borrowed to make the move or purchase the replacement property. (E) Payment to a part-time business in the home which does not contribute materially to the household income. 6092. Actual Direct Losses of Tangible Personal Property. (a) General. A public entity shall make a payment to a displaced person who satisfies the eligibility requirements of section 6090 and this section, for actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, in an amount determined by the public entity to be in accordance with the provisions of this section. (b) Determining Actual Direct Loss of Property. Actual direct loss of property shall be determined on the basis of the lesser of the following: (1) The fair market value of the property for continued use at its location prior to displacement. (2) The estimated reasonable costs of relocating the property. The public entity may require that the owner first make a bona fide effort to sell the property or it may permit the owner not to do so. The proceeds realized from any sale of all or part of the property shall be deducted from the determination of loss. In calculating payment under this section the reasonable cost of an effort to sell shall be added to the determination of loss. (c) Documentation to Support Claim. A claim for payment hereunder shall be supported by written evidence of loss which may include appraisals, certified prices, bills of sale, receipts, canceled checks, copies of advertisements, offers to sell, auction records, and other records appropriate to support the claim or the public entity may agree as to the value of the property left in place. 6094. Actual Reasonable Expenses in Searching for a Replacement Business or Farm. A displaced person who satisfies the pertinent eligibility requirements of section 6090 with respect to actual reasonable moving expenses, shall be eligible for a payment in an amount not to exceed $1,000.00, in searching for a replacement business or farm, including expenses incurred for: (a) Transportation; (b) Meals and lodging away from home; (c) Time spent in searching, based on the hourly wage rate of the salary or earnings of the displaced person or his representative; and (d) Fees paid to a real estate agent or broker to locate a replacement business or farm. 6096. Moving Expenses — Outdoor Advertising Businesses. A displaced person who conducts a lawful activity primarily for assisting in the purchase, sale, resale, manufacture, processing, PR }vine»(.( RnsvnrOVE LAND, PACIFIC &(Y7R.l: ,1 ( ww1v.01'Csenaces.com) Page 23 of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMRER 1999 or marketing of products, commodities, personal property, or services by the erection and maintenance of outdoor advertising displays is entitled to payment for the reasonable cost of moving such displays or their in -place value, whichever is lesser. 6098. Alternate Payments — Individuals and Families. A person or family, who is displaced from a dwelling and is eligible for a payment for actual reasonable moving expenses under section 6090, may elect to receive and shall be paid, in lieu of such payment a moving expense and dislocation allowance determined in accordance with established Federal Highway Administration schedules maintained by the California Department of Transportation. 6100. Alternate Payments — Businesses and Farm Operations. (a) General. (1) A person who is displaced from his place of business or farm operation and is eligible for payments under sections 6090, 6092, 6094 or 6096, and complies with the requirements of this section, may elect to receive and shall be paid, in lieu of such payments, a payment equal to the average annual net earnings of the business or farm operation (but not including a business as described in section 6096) as determined in accordance with subsection (b) below, except that such payment shall be not less than $1,000.00 nor more than $20,000.00. For purposes of this section, the dollar limitation specified in the preceding sentence shall apply to a single business, regardless of whether it is carried on under one or more legal entities. (2) Loss of Goodwill. When payment under this section will precede settlement of a claim for compensation for loss of good will under the Eminent Domain Law, the public entity before tendering payment shall state in writing what portion of the payment, if any, is considered to be compensation for loss of goodwill and shall explain in writing that any payment made pursuant to Code of Civil Procedure, Section 1263.510 et seq. (the Eminent Domain Law, Chapter 9, Article 6 - "Compensation for Loss of Goodwill') will be reduced in the same amount. The portion considered to be compensation for loss of goodwill shall not exceed the difference between the payment made under this section and an amount which reasonably approximates the payments for which the displaced person otherwise would be eligible underSection 6090, 6092, 6094 and 6096. Failure to provide such written statement and explanation shall constitute a conclusive indication that no portion of the payment is considered to be compensation for loss of goodwill for the purposes of that portion of the Code of Civil Procedure referenced above. (b) Requirements — Businesses. Payment shall not be made under this section unless the public entity determines that: (1) The business is not operated solely for rental purposes and cannot be relocated without a substantial loss of its existing patronage, based on a consideration of all pertinent circumstances including such factors as the type of business conducted, the nature of clientele, the relative importance to the displaced business of its present and proposed location, and the availability of a suitable relocation site; (2) The business is not part of a commercial enterprise having no more than three (3) other establishments which are not being acquired for a project and which is engaged in the same or similar business. Whenever the sole remaining facility of a business which has been displaced from its principal location: (A) Has been in operation for less than two years; PRO ED C (,, Y orOVGRLIND, PACIP1C & (O-n.r:R, OPCservices m1) Page 24 of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVErffiER 1999 (B) Has had average annual gross receipts of less than $2,000.00 during the two taxable years prior to displacement of the major component of the business; or (C) Has had average annual net earnings of less that $1,000.00 during the two taxable years prior to the displacement of the major component of the business, the remaining facilitywill not be considered another"establishment" for purposes of this section; and (3) The displaced business: (A) Had average annual gross receipts of at least $5,000.00 during the two taxable years prior to displacement; or (B) The displaced business had average annual net earnings of a least $1,000.00 during the two taxable years prior to displacement; or (C) The displaced business contributed at least 331/3 percent of the total gross income of the owner(s) during each of the two taxable years prior to displacement. If in any case the public entity determines that the two year period prior to displacement is not representative of average receipts, earnings or income, it may make use of a more representative period. (D) If the application of the above criteria creates an inequity or hardship, the displacing agency may use other criteria as permitted in 49 CFR 24.306. (c) Determination of Number of Businesses. In determining whether one or more legal entities, all of which have been acquired, constitute a single business, the following factors among others shall be considered: (1) The extent to which the same premises and equipment are shared. (2) The extent to which substantially identical or intimately interrelated business functions are pursued and business and financial affairs are commingled. (3) The extent to which such entities are held out to the public, and to those customarily dealing with such entities, as one business. (4) The extent to which the same person or closely related persons own, control or manage the affairs of the entities. (d) Requirements — Farms. In the case of a farm operation, no payment shall be made under this section unless the public entity determines that the farm met the definition of a farm operation prior to its acquisition. If the displacement is limited to only part of the farm operation, the operator will be considered to have been displaced from a farm operation if: the part taken met the definition of a farm operation prior to the taking and the taking caused such a substantial change in the nature of the existing farm operation as to constitute a displacement. (e) Requirements — Nonprofit Organizations. In the case of a nonprofit organization, no payment shall be made under this section unless the public entity determines that: (1) The nonprofit organization cannot be relocated without a substantial loss of its existing patronage (the term "existing patronage" as used in connection with a nonprofit organization includes the membership, persons, community, or clientele served or affected by the activities of the nonprofit organization); and (2) The nonprofit organization is not a part of an enterprise having more than three (3) other establishments not being acquired which is engaged in the same or similar activity. (f) Net Earnings. The term "average annual net earnings" as used in this section means one- half of any net earnings of the business or farm operation, before federal and state income taxes, during the two (2) taxable years immediately preceding the taxable year in which the business or farm operation moves from the real property acquired for such project, or during such other period as the head of the public entity determines to be more equitable for PROVIDED COUR] EtiY or Ovpiu, z D, PAC C :R,IN( (Ilww.OPCSereices.com) Page 25of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OE NOVEh1DER 1999 establishing such earnings, and includes any compensation paid by the business or farm operation to the owner, his spouse or his dependents during such period. The term `owner" as used in this section includes the sole proprietor in a sole proprietorship, the principal partners in a partnership, and the principal stockholders. of a corporation, as determined by the public entity. For purposes of determining a principal stockholder, stock held by a husband, his wife and their dependent children shall be treated as one unit. (g) If a displaced person who conducts a business or farm operation elects to receive a fixed payment under this section, he shall provide proof of his earnings from the business or farm operation to the Agency concerned. Proof of earnings may be established by income tax returns, financial statements and accounting records or similar evidence acceptable to the public entity. 6102. Replacement Housing Payments for Homeowners. (a) General. A public entity shall make to a person who is displaced from a dwelling and who satisfies the pertinent eligiblity requirements of section 6084 and the conditions of subsection (b) of this section, a payment not to exceed a combined total of $22,500.00 for: (1) The amount, if any, which when added to the acquisition cost of the dwelling acquired for the project equals the reasonable cost, as determined in accordance with subsection (c), of a comparable replacement dwelling. This amount shall not exceed the difference between the acquisition price of the acquired dwelling and the actual purchase price of the replacement dwelling, except where a displaced person, in the circumstance described in paragraph 6108(a)(1), is willing to use the extra money to improve the condition of the dwelling. (2) The amount, if any, to compensate the displaced person for any increased interest costs, as determined in accordance with subsection (c), he is required to pay for financing the acquisition of a replacement dwelling. The payment shall not be made unless the dwelling acquired by the public entity was encumbered by a bona fide mortgage which was a valid lien on the dwelling for not less than 180 days prior to the initiation of negotiations for acquisition of such dwelling. (This time requirement may be modified in accordance with the provisions of subsection (b) below.) (3) Reasonable expenses, determined in accordance with subsection (c) of this section, incurred by the displaced person incident to the purchase of the replacement dwelling. (4) In accordance with section 6108, the cost of rehabilitating a dwelling which does not satisfy the decent, safe and sanitary standard. (b) Eligibility Conditions. (1) A displaced person is eligible for payment under this section if such person: (A) Is displaced from a dwelling that is acquired; (B) Has actually owned and occupied such dwelling for not less than 180 days prior to the initiation of negotiations for its acquisition; and (C) Purchases and occupies a replacement dwelling within one year subsequent to the date on which he received final payment from the public entity of all costs of the acquired dwelling or the date on which he moves from the acquired dwelling, whichever is later. (2) If an owner satisifies all but the 180 day requirement and can establish to the satisfaction of the public entity that he bought the dwelling with the intention of making it his place of residence, that the move was not motivated by a desire to receive relocation assistance and benefits, and that he neither knew nor should have known that a public acquisition was intended the public entity may reduce the requirement as necessary. PROVIDED COL,F,YFISY OF OVEltl_AND Pm:116c&I u]LLJ, 1 4c. (w x0 PCsen=ices.conl) Page 26 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES As OF NOVEMBER 1999 (3) Where for reasons beyond the control of the displaced person completion of construction, rehabilitation, or relocation of a replacement dwelling is delayed beyond the date by which occupancy is required, the public entity shall determine the date of occupancy to be the date the displaced person enters into a contract for such construction, rehabilitation, or relocation or for the purchase, upon completion, of a dwelling to be constructed or rehabilitated, if, in fact, the displaced person occupies the replacement dwelling when the construction or rehabilitation is completed. (4) Where, for reasons of hardship or circumstances beyond the control of the displaced person, such person is unable to occupy the replacement dwelling by the required date, the public entity may extend the deadline as necessary. If by the deadline the displaced person has contracted to purchase a replacement dwelling, the public entity should extend the deadline. (5) No person otherwise eligible for a payment under this section or under section 6104 shall be denied such eligibility as a result of his being unable, because of a major state or national disaster, to meet the occupancy requirements. (c) Computation of Replacement Housing Payment. (1) Cost of Comparable Replacement Dwelling. (A) In determining the reasonable cost of a comparable replacement dwelling, the public entity concerned shall use one of the following methods: 1. Comparative Method. On a case -by -case basis by determining the listing price of dwellings which have been selected by the public entity and which are most representative of the acquired dwelling unit and meet the definition of comparable replacement dwelling set out in subsection 6008(c). Whenever possible the listing price of at least three dwellings shall be considered. 2. Schedule Method. Where the public entity determines that the comparative method is not feasible, it may establish a schedule of reasonable acquisition costs for the various types of comparable replacement dwellings. If more than one entity is administering a project causing displacement in the area, it shall cooperate with the other entities in establishing a uniform schedule for the area. The schedule shall be based on a current analysis of the market to determine a reasonable cost for each type of dwelling to be purchased. In large urban areas this analysis may be confined to the sub -area from which persons are displaced or may cover several different sub -areas, if they satisfy or exceed the criteria listed in subsection 6008(c). To assure the greatest comparability of dwellings in any analysis, the analysis shall be divided into classifications of the type of construction, number of bedrooms, and price ranges. 3. Altemative Method. Where the public entity determines that neither the schedule, nor comparative method is feasible in a given situation, by the use of another reasonable method. (B) Whichever method is selected the cost shall be updated to within three months of the date of purchase of the replacement dwelling. (2) Interest Payments. Interest payments shall be equal to the discounted present value of the difference between the aggregate interest applicable to the amount of the principal of the mortgage on the acquired dwelling over its remaining term at the time of acquisition, and other debt service costs, and the aggregate interest paid on the mortgage on the replacement dwelling, and other debt service costs. The term and PiC/I'll E) COCFTiSY ue OI:Tn.=,:vD PAC flw&Ci LUI, INC. l«&cw,0 P( :xervices.. corn) Page 27 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 amount of the mortgage on the replacement dwelling for purposes of this paragraph shall be the lesser of the remaining term and amount of the mortgage on the acquired dwelling, or the actual term and amount of the mortgage on the replacement dwelling. The amount of the debt service cost with respect to the replacement dwelling shall be the lesser of the debt service cost based on the cost required for a comparable dwelling, or the debt service cost based on the actual cost of the replacement dwelling. Prepaid interest or "points" shall be considered in the determination of aggregate interest. In calculating the amount of compensation, increased interest cost shall be reduced to discounted present value using the prevailing interest rate paid on savings deposits by commercial banks in the general area in which the replacement dwelling is located. (3) Expenses Incident to the Purchase of the Replacement Dwelling. Payment under this section shall include the amount necessary to reimburse the displaced person for actual costs incurred by him incident to the purchase of the replacement dwelling, including but not limited to the following: legal, closing, and related costs including title search. preparing conveyance contracts, notary fees, surveys, preparing drawings or plats, and charges paid incident to recordation; lender, FHA, VA or similar appraisal costs; FHA, VA or similar application fee; cost for certification of structural soundness; credit report charges; charge for owner's and mortgagee's evidence or assurance of title; escrow agent's fee; and sales or transfer taxes. Payment for any such expenses shall not exceed the amount attributable to the purchase of a replacement dwelling. Such expenses shall be reasonable and legally required or customary in the community. Reimbursement shall not be made under the provisions of this paragraph for any fee, cost, charge, or expense which is determined to be a part of the debt service or finance charge under Title I of the Truth in Lending Act (Pub. L. 90-321), and Regulation Z issued pursuant thereto by the Board of Governors of the Federal Reserve System. Any such sum should be considered in the determination of interest payments. (d) Multi -family Dwelling. In the case of a displaced homeowner who is required to move from a one -family unit of a multi -family building which he owns, the replacement housing payment shall be based on the cost of a comparable one -family unit in a multi -family building of approximately the same density or if that is not available in a building of the next less density, or, if a comparable one -family unit in such a multi -family building is not available, the cost of an otherwise comparable single-family structure. (e) Owner Retention. (1) If a displaced homeowner elects to retain, move, and occupy his dwelling, the amount payable under this section is the difference between the acquisition price of the acquired property and the sum of the moving and restoration expenses, the cost of correcting decent, safe, and sanitary deficiencies, if any, and the actual purchase price of a comparable relocation site. A public entity may limit the payment made under this subsection to the amount of the replacement housing payment for which the homeowner would otherwise be eligible. (2) The payment shall not exceed $22,500. (f) Provisional Payment Pending Condemnation. lithe exact amount ofareplacement housing payment cannot be determined because of a pending condemnation suit, the public entity concerned may make a provisional replacement housing payment to the displaced homeowner equal to the difference between the public entity's maximum offer for the property and the reasonable cost of a comparable replacement dwelling, but only if the homeowner enters into an agreement that upon final adjudication of the condemnation suit the replacement housing payment will be recomputed on the basis of the acquisition price determined by the court. lithe PROViuFo COf'r i'ewn OVFIii_4ND. 7'A( INC &i I Lea?, JWc OPCservices.coml Page 28 of46 CALIFORNIA RELOCATION ASSISTANCE .4ND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 acquisition price as determined by the court is greater than the maximum offer upon which the provisional replacement housing payment is based, the difference will be refunded by the homeowner to the public entity. If the acquisition price as determined by the court is less than the maximum offer upon which the provisional replacement housing payment is based, the difference will be paid to the homeowner. (g) Lease of Condominium. For the purposes of this section, the leasing of a condominium for a 99-year period, or for a term which exceeds the life expectancy of the displaced person as determined by the most recent life tables in Vital Statistics of the United States, as published by the Public Health Service of the Department of Health, Education and Welfare, shall be deemed a purchase of the condominium. 6104. Replacement Housing Payments for Tenants and Certain Others. (a) General. A public entity shall make to a displaced person who satisfies the eligibility requirements of section 6084 and the conditions of subsection (b) below, a payment not to exceed $5,250.00 for either: (1) An amount, computed in accordance with paragraph (d)(1) of this section, necessary to enable such person to lease or rent a replacement dwelling for a period not to exceed 42 months; or (2) An amount, computed in accordance with paragraph (d)(2) of this section, necessary to enable such person to make a downpayment on the purchase of a replacement dwelling (including incidental expenses described in section 6102). (b) Eligibility Conditions. A displaced person is eligible for the payments specified in subsection (a) if he satisfies the following conditions: (1) Has occupied the dwelling from which he is displaced for a period of not less than 90 days prior to the initiation of negotiation for acquisition of such dwelling. (2) Is not eligible to receive a replacement housing payment for homeowners under section 6102 or elects not to receive such payment. Where the displaced person is the owner -occupant of the dwelling, the payment made under paragraph 6104(a)(2) shall not exceed the amount of payment to which the person would be eligible under section 6102. (3) Whenever a payment under subsection (a)(2) is sought the displaced person shall within one year from the date of displacement purchase and occupy a replacement dwelling. (c) The provisions in subsection 6102(b) for modifying the conditions of eligibility also apply to this section. (d) Computation of Payment. (1) Rentals. Except for projects commenced prior to January 1, 1998 the amount of payment necessary to lease or rent a comparable replacement dwelling, under subsection (a)(1), shall be computed by subtracting 42 times the base monthly rental of the displaced person (as determined in accordance with this subsection), from 42 times the monthly rental for a comparable replacement dwelling (as determined in accordance with this subsection): Provided, that in no case may such amount exceed the difference between 42 times the base monthly rental as determined in accordance with this subsection and 42 times the monthly rental actually required for the replacement dwelling occupied by the displaced person. (A) Base Monthly Rental. The base monthly rental shall be the lesser of the average monthly rental paid by the displaced person forthe 3-month period prior to initiation of negotiations or 30 percent of the displaced person's average monthly income. (See subsection 6008(1).) Where the displaced person was PROVIDED CO YOF OVERLAND, PACIFIC&(Ant . INC. 1www.OPCserviCes.com) Page 29 of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 the owner of the dwelling from which he was displaced or was not required to pay rent for that dwelling, the economic rent (see subsection 6008(h)) shall be used in lieu of the average monthly rental to calculate base monthly rental. (B) Comparable Rental. The monthly rental for a comparable replacement dwelling shall be the amount of rent determined by the public entity by one of the methods described in paragraph 6102 (c)(1), considering rental charges instead of listing price or acquisition cost. (C) Whichever method is selected the cost shall be updated to within three months of the date of rental of the replacement dwelling. (2) Downpayment. The downpayment for which a payment specified under paragraph (a)(2) of this section may be made, shall not exceed the amount of a reasonable downpayment for the purchase of a comparable replacement dwelling where such purchase is financed, plus expenses incident to the purchase of a replacement dwelling computed in accordance with Section 6102. The full amount of a downpayment under this section shall be applied to the purchase of the replacement dwelling and shall be shown on the closing statement or other document acceptable to the public entity. (e) Rental Payments for Displaced Owners and Dependents. (1) Owners. A displaced owner who elects to rent rather than purchase a replacement dwelling and who meets the eligibility conditions specified in subsection (b) is eligible for the payment specified in paragraph (a)(1). (2) Dependents. A dependent who is residing separate and apart from the person or family providing support, whether such separate residence is permanent or temporary, shall be entitled to payment under this section, but such payment shall be limited to the period during which the displaced dependent resides in the replacement dwelling. At the time the displaced dependent vacates that dwelling, no further payment under this section shall be made to such person. For the purposes of this paragraph a "dependent" shall be a person who derives fifty-one percent or more of his income in the form of gifts from any private person or any academic scholarship or stipend. Full-time students shall be presumed to be dependents but may rebut this presumption by demonstrating that fifty percent or more of their income is derived from sources other than gifts from another private person or academic scholarships or stipends. Dependents residing with the family of which they are a part shall not be entitled to any payment except as a part of the family. (f) Disbursement. Except where specifically provided otherwise, the public entity shall have the authority to disburse payments under this section in a lump sum, monthly or at other intervals acceptable to the displaced person. 6106. Proration of Payments. For the purpose of calculating an alternate payment under section 6098 or a replacement housing payment under section 6102 or 6104, two or more individuals (whether they are members of one family or not) living together in and displaced from a single dwelling shall be regarded as one person. Where a tenant is sharing a single-family dwelling with an owner -occupant and paying the owner -occupant rent for the privilege, the tenant shall not be entitled to more than one-half of the rental supplement otherwise payable. The owner -occupant shall not be required to share the payment to which he is entitled or accept a prorated amount. 6108. Condition of Replacement Dwelling. (a) When a displaced person qualifies for a replacement housing payment (under section 6102 or 6104) by purchasing or renting a replacement dwelling, the unit, as a general rule, must be PROVIDED COLETesv or OVITLAN>, P. llC & rr]LER, lNc. ( vv:w.Ol'Cserv;ecs.cam) Page 30 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES As of NOVE BER 1999 decent, safe and sanitary. There are three exceptions. One is described in paragraph 6040(a)(6). The others are: (1) If the purchase of such a dwelling is the result of the public entity's failure to identify a reasonable number of comparable replacement dwellings as required or if the dwelling is one to which the person was referred by the public entity, the condition of the dwelling does not effect eligibility for a replacement housing payment. (2) If the purchase of such a dwelling is not the result of a public entity's referral or failure to refer, the otherwise eligible person qualifiesfor a replacement housing payment if the unit is brought into compliance with the decent, safe and sanitary standard. In this situation payment shall be limited to the amount that would be provided in connection with the purchase of a similar, comparable replacement dwelling or the sum of the actual costs of acquisition (including related expenses) and rehabilitation, whichever is less. (b) A public entity shall not induce or encourage a displaced person to acquire a dwelling which does not satisfy the comparable replacement housing standard. (See section 6008(c).) 6110. Certificate of Eligibility. Upon request by a displaced homeowner or tenant who has not yet purchased and occupied a replacement dwelling, but who is otherwise eligible for a replacement housing payment, the public entity concerned shall certify to any interested party, financial institution, or lending agency, that the displaced homeowner or tenant will be eligible for the payment of a specific sum if he purchases and occupies a dwelling within the time limits prescribed. 6112. Manufactured Homes and Mobilehomes. (a) General. A manufactured home or mobilehome is a dwellling. (See subsection 6008(g).) A person displaced from a manufactured home or mobilehome must satisfy the same eligibility requirements and must be provided the same assistance, assurance and payments as a person displaced from a conventional dwelling. (b) Moving Expenses. If a manufactured home or mobilehome is moved to another site, the. displaced person shall be compensated for moving expenses in accordance with sections 6090 and 6092. The provisions of these sections which generally apply only to businesses and farms shall also apply to displaced persons who move a manufactured home or mobilehome. (c) Replacement Housing Payments. (1) A person who owns a manufactured home or mobilehome and site and as a replacement purchases both a dwelling and site shall be provided a replacement housing payment in accordance with section 6102. A person who owns a manufactured home or mobilehome and site, and as a replacement rents both a dwelling and site, shall be provided a payment in accordance with section 6104. (2) A person who rents a manufactured home or mobilehome and site, and as a replacement rents or purchases a dwelling and site, shall be provided a payment in accordance with section 6104. (3) A person who owns a manufactured home or mobilehome and site, and as a replacement purchases a dwelling and rents a site, shall be provided a payment in accordance with sections 6102 and 6104. The payment shall be limited to the lesser of: (A) The amount necessary to purchase a conventional comparable replacement manufactured home or mobilehome; or PROVIDED COURTESY ESY OF 0'. YRLANI soar & Cia LF-R, 1NL. (www.Of C e vicce mi) Page 31 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOS EMBER 1999 (B) The amount necessary to purchase a replacement manufactured home or mobilehome (in accordance with section 6102) plus the amount necessary to rent a replacement site (in accordance with section 6104). In calculating this amount, the economic rent for the site shall be used in lieu of average monthly rental to determine the base monthly rental (as provided in paragraph 6104(d)(1)). (4) A person who owns a site from which he moves a manufactured home or mobilehome shall be provided a replacement housing payment under section 6102 if he purchases a replacement site and under section 6104 if he rents a replacement site. (5) A person who owns a manufactured home or mobilehome which is acquired and rents the site shall be provided payment as follows: (A) If a manufactured home or mobilehome, as appropriate, is not available the amount required to purchase a conventional replacement dwelling (in accordance with section 6102); (B) The amount necessary to purchase a replacement manufactured home or mobilehome (in accordance with section 6102) plus the amount necessary to lease, rent or make a downpayment on a replacement site (in accordance with section 6104); or (C) If he elects to rent a replacement manufactured home or mobile home and site, the amount required to do so in accordance with section 6104. In calculating this payment, the average monthly rental shall equal the economic rent for the manufactured home or mobilehome plus the actual rent for the site. (6) Similar principles shall be applied to other possible combinations of ownership and tenancy upon which a claim for payment might be based. 6114. Affected Property. (a) In addition to the payments required by Section 7262 of the Act (see sections 6090, 6092, 6094, 6096, 6098 and 6100), as a cost of acquisition, the public entity shall make a payment to any affected property owner meeting the requirements of this section. (b) Such affected property is immediately contiguous to property acquired for airport purposes and the owner shall have owned the property affected by the acquisition by the public entity not less than 180 days prior to the initiation of negotiation for acquisition of the acquired property. (c) Such payment, not to exceed twenty-two thousand five hundred dollars ($22,500.00), shall be the amount, if any, which equals the actual decline in the fair market value of the property of the affected property owner caused by the acquisition by the public entity for airport purposes of other real property and a change in the use of such property. (d) The amount, if any, of actual decline in fair market value of affected property shall be determined according to rules and regulations adopted by the public entity. Such rules and regulations shall limit payment under this section only to such circumstances in which the decline in fair market value of affected property is reasonably related to objective physical change in the use of acquired property. (e) "Affected Property" means any real property which actually declines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity. PR( VIDED COUR1 E$ Y of OVER ND, PACING & C rLer_ INe. (w•Aw..OPCservices comi Page 32 of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMRER 1999 ARTICLE 4. LAST RESORT HOUSING. 6120. Purpose. The purpose of this part is to set forth the criteria and procedures for assuring that if the action of a public entity results, orwill result in displacement, and comparable replacement housing will not be available as needed, the public entity shall use its funds or funds authorized for the project to provide such housing. 6122. Determination of Need for Last Resort Housing. If on the basis of data derived form surveys and analyses which satisfy the requirements of sections 6048 and 6052, the public entity is unable to demonstrate that comparable replacement housing will be available as required, the head of the public entity shall determine whether to use the public entity's funds or the funds authorized for the project to provide such necessary replacement housing or to modify, suspend or terminate the project or undertaking. 6124. Development of Replacement Housing Plan. (a) General. (1) Following the determination pursuant to section 6122, the head of the displacing public entity shall develop or cause to be developed a replacement housing plan to produce a sufficient number of comparable replacement dwellings. The plan shall specify how, when and where the housing will be provided, how it will be financed and the amount of funds to be diverted to such housing, the prices at which it will be rented or sold to the families and individuals to be displaced, the arrangements for housing management and social services as appropriate, the suitability of the location and environmental impact of the proposed housing, the arrangements for maintaining rent levels appropriate for the persons to be rehoused, and the disposition of proceeds from rental, sale, or resale of such housing. If a referendum requirement or zoning presents an obstacle, the issue shall be addressed. (2) All contracts and subcontracts for the construction, rehabilitation or management of last resort housing shall be let without discrimination as to race, sex, marital status, color, religion, national origin, ancestry or other arbitrary circumstance and pursuant to an affirmative action program. The public entity shall encourage participation by minority persons in all levels of construction, rehabilitation, planning, financing and management of last resort housing. When the housing will be located in an area of minority concentration, the public entity shall seek to secure significant participation of minorities in these activities. The public entity shall require that, to the greatest extent feasible, opportunities for training and employment arising in connection with the planning, construction, rehabilitation, and operation of last resort housing be given to persons of low income residing in the area of such housing and shall determine and implement means to secure the participation of small businesses in the performance of contracts for such work. (b) Citizen Participation. (1) If the need for last resort housing exceeds 25 units, the head of the displacing public entity shall establish a committee which will consult with and provide advice and assistance to the displacing public entity in the development of the plan. The committee should include appointed representatives of the displacing entity and state and local agencies knowledgeable regarding housing in the area, including but not limited to the local housing authority and the central relocation agency, if any. In addition, the committee should include representatives of other appropriate public groups (for PROVIDED ( ;OUR TLSY OF 0VFRI AND, PA(7FIC & (I 7 I'LER, IN(`. (ww°w.OlCsenriees.com) Page 33 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVENDIER 1999 example, local and area wide planning agencies) and private groups knowledgeable regarding housing and the problems of housing discrimination. (2) The committee shall include representatives of the residents to be displaced. These representatives may be appointed by the displacing entity or elected by the residents, as the residents wish. Resident representatives shall, at a minimum, constitute one- third of the committee membership. Votes shall be allocated so that the total votes of resident representatives shall equal one-half of the total votes of the committee membership. (3) The plan must be approved by the vote of a simple majority of the committee membership. In the event the committee fails to approve the plan, the local governing body or, where the displacing entity is a state agency, the head of the state agency may substitute its approval. (c) Consultation with Other Housing Agencies and Organizations. The head of the displacing public entity may consult or contract with the Department, a local housing authority, or other agency or organization having experience in the administration or conduct of housing programs to provide technical assistance and advice in the development of the replacement housing plan, 6126. Submission of Plan for Comment. The head of the displacing public entity shall submit the plan and all significant amendments to the local housing and planning agencies for comment and to assure that the plan accurately reflects housing conditions and needs in the relocation area. Reviewing agencies shall have 30 calender days following receipt of the plan to prepare their comments. Copies of all comments received shall be forwarded to the committee and available to all interested persons. General notice of the plan shall be provided. Notice shall be designed to reach the residents of the relocation area; it shall be in accordance with the provisions of paragraph 6046(a)(3) and subsection 6046(b); and it shall be provided 30 days prior to submission to the committee, or the local governing body or head of state agency for approval. 6128. Determination by Displacing Public Entity of Feasibility and Compliance. Upon receipt and consideration of the comments, the displacing public entity shall determine whether or not: (a) The plan is feasible. (b) The plan complies with applicable environmental standards and procedures. (c) The plan is compatible with the local general plan and housing element and the area wide housing plan or strategy If any of the above determinations by the displacing public entity is negative the displacing public entity shall revise the plan as necessary. Substantial modifications in the plan shall be submitted for review and comment as provided in section 6126. If necessary for timely implementation of the plan or execution of the project, the head of the displacing public entity may shorten the time allowed in section 6126 for review of modifications. 6130. Implementation of the Replacement Housing Plan. Upon making the determinations required by section 6128, the head of the displacing entity may expend funds and take such other actions as necessary to provide, rehabilitate, or construct replacement housing pursuant to the approved replacement housing plan through methods including but not limited to the following: (a) Transfer of funds to state and local housing agencies. (b) Contract with organizations experienced in the development of housing. (c) Direct construction by displacing public entity. PI )V lIDEL) Rrfl'Y OF()vrRl_a_rm), Pncnac&Cr ru}i. INC. w.OP( Se.vices.comi Page 34 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 Whenever practicable, the head of the displacing public entity should utilize the services of federal, state, or local housing agencies, or other agencies having experience in the administration or conduct of similar housing programs 6132. Housing Production. The head of the displacing public entity shall monitor the production of the last resort housing to ensure that it is in accordance with the plan. 6134. Jointly Sponsored Development. Where several agencies are administering programs resulting in residential displacement, opportunities shall be sought for joint development and financing to aggregate resources in order most efficiently to provide replacement housing in sufficient quantity to satisfy the aggregate needs of such programs. 6136. Last Resort Housing In Lieu of Payments. A public entity shall not require a displaced person to accept a dwelling provided pursuant to this Article in lieu of the displaced person's acquisition payment, if any, for the real property from which he is displaced or the relocation payments for which he may be eligible. 6138. Conformity with the Act and Other Statutes, Policies and Procedures. (a) Civil Rights and Other Acts. The administration of this Article shall be in accordance with the provisions of all applicable federal and state non-discrimination laws and regulations issued pursuant thereto. (b) Dwelling and Relocation Standards. Determinations made pursuant to section 6122 and any plan developed and implemented for providing replacement housing and all such housing provided thereunder shall be in conformity with the standards established in the Act and Guidelines. 6139. Last Resort Housing. (a) Whenever comparable replacement dwellings are not available, or are not available within the monetary limits of Government Code sections 7263 or 7264, as appropriate, the displacing agency shall provide additional or alternative assistance under the provisions of this part. (b) The methods of providing replacement housing of last resort include, but are not limited to: (1) A replacement housing payment calculated in accordance with the provisions of sections 6102 or 6104, as appropriate, even if the calculation is in excess of the monetary limits of Government Code sections 7263 and 7264. A rental assistance payment under this part shall be paid to the displaced person in a lump sum, or at the discretion of the displacing agency, $5,250.00 shall be paid to the displaced person in a lump sum upon displacement and the remainder of the payments shall be paid to the displacee in periodic payments over a period not to exceed 42 months unless otherwise specified by statute. (2) Major rehabilitation of and/or additions to an existing replacement dwelling in a sum equal to or greater than the payment to which the displaced person is entitled under subsection (b)(1). (3) The construction of a new replacement dwelling in a sum equal to or greater than the payment to which the displaced person is entitled under subsection (b)(1) of this section. (4) The relocation and, if necessary, rehabilitation of a dwelling. (5) The purchase of land and/or a replacement dwelling by the displacing agency and subsequent sale or lease to, or exchange with a displaced person. PROVIDED OAT, rEsti' OF Ovr.PI NI). PM i c&C n.er., IN( OI'(serv:ces.com) Page 35 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 (6) For purposes of accommodating the needs of handicapped persons, the removal of barriers to the handicapped. (c) Only at the discretion of displacing agencies are post -acquisition tenants entitled to last resort housing payments. PROVI.!EDCULRTY'SY orOvrm AND, PACIFIC &UTILER, INt', (vwwOPCservSces.conl) Page 36 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 ARTICLE 5. GRIEVANCE PROCEDURES 6150. Purpose. The purpose of this article is to set forth guidelines for processing appeals from public entity determinations as to eligibility, the amount of payment, and for processing appeals from persons aggrieved by a public entity's failure to refer them to comparable permanent or adequate temporary replacement housing. Public entities shall establish procedures to implement the provisions of this Article. 6152. Right of Review. (a) Any complainant, that is any person who believes himself aggrieved by a determination as to eligibility, the amount of payment, the failure of the public entity to provide comparable permanent or adequate temporary replacement housing or the public entity's property management practices may, at his election, have his claim reviewed and reconsidered by the head of the public entity or an authorized designee (other than the person who made the determination in question) in accordance with the procedures set forth in this article, as supplemented by the procedures the public entity shall establish for such review and reconsideration. (b) A person or organization directly affected by the relocation plan may petition the Department to review the final relocation plan of a public entity to determine if the plan is in compliance with state laws and guidelines or review the implementation of a relocation plan to determine if the public entity is acting in compliance with its relocation plan. Review undertaken by the Department under this section shall be in accordance with the provisions of sections 6158 and may be informal. Before conducting an investigation the Department should attempt to constrain disputes between parties. Failure to petition the Department shall not limit a complainant's right to seek judicial review. (c) If a relocation appeals board has been established pursuant to Section 33417.5 of the Health and Safety Code, a city by ordinance may designate the board to hear appeals from local public entities which do not have an appeal process. In the absence of such an ordinance, public entities shall establish procedures to implement the provisions of this Article. 6154. Notification to Complainant. If the public entity denies or refuses to consider a claim, the public entity's notification to the complainant of its determination shall inform the complainant of its reasons and the applicable procedures for obtaining review of the decision. If necessary, such notification shall be printed in a language other than English in accordance with section 6046. 6156. Stages of Review by a Public Entity. (a) Request for Further Written Information. A complainant may request the public entity to provide him with a full written explanation of its determination and the basis therefore, if he feels that the explanation accompanying the payment of the claim or notice of the entity's determination was incorrect or inadequate. The public entity shall provide such an explanation to the complainant within three weeks of its receipt of his request. (b) Informal Oral Presentation. A complainant may request an informal oral presentation before seeking formal review and reconsideration. A request for an informal oral presentation shall be filed within the period described in subsection (d) of this section, and within 15 days of the request the public entity shall afford the complainant the opportunity to make such presentation. The complainant may be represented by an attorney or other person of his choosing. This oral presentation shall enable the complainant to discuss the claim with the head of the public entity PROVIDED COURTESY OF OVERLSN0, PACII9C&(iD LER.INC. ( wu•w.O P(serv±ces.enn1) Page 37 of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 or a designee (other than the person who made the initial determination) having authority to revise the initial determination on the claim. The public entity shall make a summary of the matters discussed in the oral presentation to be included as part of its file. The right to formal review and reconsideration shall not be conditioned upon requesting an oral presentation. (c) Written Request for Review and Reconsideration. At any time within the period described in subsection (d) a complainant may file a written request for formal review and reconsideration. The complainant may include in the request for review any statement of fact within the complainant's knowledge or belief or other material which may have a bearing on the appeal. If the complainant requests more time to gather and prepare additional material for consideration or review and demonstrates a reasonable basis therefor, the complainant's request should be granted. (d) Time Limit for Requesting Review. A complainant desiring either an informal oral presentation or seeking a formal review and reconsideration shall make a request to the public entity within eighteen months following the date he moves from the property or the date he receives final compensation for the property, whichever is later. 6158. Formal Review and Reconsideration by the Public Entity. (a) General. The public entity shall consider the request for review and shall decide whether a modification of its initial determination is necessary. This review shall be conducted by the head of the public entity or an authorized, impartial designee. (The designee may be a committee). A designee shall have the authority to revise the initial determination or the determination of a previous oral presentation. The public entity shall consider every aggrieved person's complaint regardless of form, and shall, if necessary provide assistance to the claimant in preparing the written claim. When a claimant seeks review, the public entity shall inform him that he has the right to be represented by an attorney, to present his case by oral or documentary evidence, to submit rebuttal evidence, to conduct such cross-examination as may be required for a full and true disclosure of facts, and to seek judicial review once he has exhausted administrative appeal. (b) Scope of Review. The public entity shall review and reconsider its initial determination of the claimant's case in light of: (1) All material upon which the public agency based its original determination including all applicable rules and regulations, except that no evidence shall be relied upon where a claimant has been improperly denied an opportunity to controvert the evidence or cross-examine the witness. (2) The reasons given by the claimant for requesting review and reconsideration of the claim. (3) Any additional written or relevant documentary material submitted by the claimant. (4) Any further information which the public entity in its discretion, obtains by request, investigation, or research, to ensure fair and full review of the claim. (c) Determination on Review by Public Entity. (1) The determination on review by the public entity shall include, but is not limited to: (A) The public entity's decision on reconsideration of the claim. (B) The factual and legal basis upon which the decision rests, including any pertinent explanation or rationale. (C) A statement to the claimant of the right to further administrative appeal, if the public entity has such an appeal structure, or if not, a statement to the claimant that administrative remedies have been exhausted and judicial review may be sought. (2) The determination shall be in writing with a copy provided to the claimant. PROv i DE o COUR rESYof OVERLAND, P:un)C&('i;n,LR.INC. (Www.OPCsereices.com) Page 38 of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMIDER 1999 (d) Time Limits. (1) The public entity shall issue its determination of review as soon as possible but no later than 6 weeks from receipt of the last material submitted for consideration by the claimant or the date of the hearing, whichever is later. (2) In the case of complaints dismissed for untimeliness or for any other reason not based on the merits of the claim, the public entity shall furnish a written statement to the claimant stating the reason for the dismissal of the claim as soon as possible but not later than 2 weeks from receipt of the last material submitted by the claimant or the date of the hearing, whichever is later. 6160. Refusals to Waive Time Limitation. Whenever a public entity rejects a request by a claimant for a waiver of the time limits provided in section 6088, a claimant may file a written request for review of this decision in accordance with the procedures set forth in sections 6156 and 6158, except that such written request for review shall be filed within 90 days of the claimant's receipt of the public entity's determination. 6162. Extension of Time Limits. The time limits specified in section 6156 may be extended for good cause by the public entity. 6164. Recommendations by Third Party. Upon agreement between the claimant and the public entity, a mutually acceptable third party or parties may review the claim and make advisory recommendations thereon to the head of the public entity for its final determination. In reviewing the claim and making recommendations to the public entity, the third party or parties shall be guided by the provisions of this Article. 6166. Review of Files by Claimant. Except to the extent the confidentiality of material is protected by law or its disclosure is prohibited by law, a public entity shall permit the claimant to inspect all files and records bearing upon his claim or the prosecution of the claimant's grievance. If a claimant is improperly denied access to any relevant material bearing on the claim, such material may not be relied upon in reviewing the initial determination. 6168. Effect of Determination on Other Persons. The principles established in all determinations by a public entity shall be considered as precedent for all eligible persons in similar situations regardless of whether or not a person has filed a written request for review. All written determinations shall be kept on file and available for public review. 6170. Right to Counsel. Any aggrieved party has a right to representation by legal or other counsel at his expense at any and all stages of the proceedings set forth in these sections. 6172. Stay of Displacement Pending Review. If a complainant seeks to prevent displacement, the public entity shall not require the complainant to move until at least 20 days after it has made a determination and the complainant has had an opportunity to seek judicial review. In all cases the public entity shall notify the complainant in writing 20 days prior to the proposed new date of displacement. 6174. Joint Complainants. Where more than one person is aggrieved by the failure of the public entity to refer them to comparable permanent or adequate temporary replacement housing the complainants may join in filing a single written request for review. A determination shall be made by the public entity for each of the complainants. PROVIDED COURTESY OF ND, PACIFIC& w Of (sereices,com) Page 39 of 46 CALIFORVIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 6176. Judicial Review. Nothing in this Article shall in any way preclude or limit a claimant from seeking judicial review of a claim upon exhaustion of such administrative remedies as are available under this Article. PHUvIUHII C OUR TIS<Y OF OV3tln 4D, P�_cvae & Cu rLea, INC. Ilvti'w.OPC services.cont) Page 40 of 46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GL1DELU ES AS OF NOVEMIBER 1999 ARTICLE 6. ACQUISITION POLICIES 6180. Purpose. The purpose of the Article is to set forth the practices to be followed with respect to acquisition of real property by a public entity. Public entities shall, to the greatest extent practicable, be guided by these practices. 6182. Acquisition. (a) A public entity shall make every reasonable effort to acquire property by negotiation and to do so expeditiously. (b) Before negotiations are initiated (see subsection 6008(n)) a public entity shall: (1) Have the property appraised, giving the owner or his representative designated in writing an opportunity, by reasonable advance written notice, to accompany the appraiser during the inspection of the property; (2) If the owner of real property is also the owner of a business conducted on the real property to be acquired or on the remainder, inform him of his possible right to compensation for loss of goodwill. The public entity should include a copy of the pertinent provisions of the Eminent Domain Law (Code of Civil Procedure Sections 1230.010 et seq.) (3) Establish an amount it believes to be just compensation for the property, which amount shall, in no event, be less than the public entity's approved appraisal of the fair market value of the property as improved. (c) The determination of just compensation shall be based upon consideration of: (1) The real property being acquired; (2) Where the real property acquired is part of a larger parcel, the injury, if any, to the remainder; and (3) Loss of goodwill, where the owner of the real property is also the owner of a business conducted upon the property to be acquired or on the remainder and where the provisions of the Eminent Domain Law pertaining to compensation for loss of goodwill are satisfied. Goodwill consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstances resulting in probable retention of old or acquisition of new patronage. (d) As soon as possible after the amount of just compensation is established, the public entity shall offer to acquire the property for the full amount so established and shall provide the owner with a written statement of the basis for determination of just compensation. The statement shall include the following: (1) A general statement of the public use for which the property is to be acquired. (2) A description of the location and extent of the property to be taken, with sufficient detail for reasonable identification, and the interest to be acquired. (3) An inventory identifying the buildings, structures, fixtures, and other improvements. (4) A recital of the amount of the offer and a statement that such amount: (A) Is the full amount believed by the public entity to be just compensation for the property taken; (B) Is not less than the approved appraisal of the fair market value of the property as improved; (C) Disregards any decrease or increase in the fair market value of the real property to be acquired prior to the date of valuation caused by the public improvement for which the property is to be acquired for such public PROV I DE'D C (qft I}'(1T Ovi I A4), PACIFIC & Ca T1.12R, INC. (V,'vaV.O Cs IceS.coi ❑ ) Page 41 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVE]1BER 1999 improvement, other than that due to physical deterioration within the reasonable control of the owner or occupant; and (D) Does not reflect any consideration of or allowance for any relocation assistance and payments or other benefits which the owner is entitled to receive under an agreement with the public entity, except for an amount to compensate the ownerforthat portion of loss of goodwill provided in accordance with Section 6100. (5) If the real property is a portion of a larger parcel, the statement shall include an apportionment of the total estimated just compensation for the partial acquisition between the value of the property being taken and the amount of damage, if any, to the remainder of the larger parcel from which such property is taken. (6) If the owner of the real property to be acquired is also the owner of a business conducted upon the property orthe remainder, the statement shall include an indication of the amount of compensation for loss of goodwill. (e) At the initiation of negotiations (see subsection 6008(n)) a public entity shall provide written notification to the owner of a business conducted on the real property to be acquired or on the remainder, who is not also the owner of the real property, concerning his possible right to compensation for loss of goodwill. The public entity should include a copy of the pertinent provisions of the Eminent Domain Law (Code of Civil Procedure, Section 1230.010 et seq.). (f) (1) If after receiving the public entity's offer the owner requests additional information regarding the determination of just compensation, the public entity shall provide the following information to the extent that the determination of just compensation is based thereon: (A) The date of valuation used. (B) The highest and best use of the property. (C) The applicable zoning. (D) Identification of some of the sales, contracts to sell and purchase, and leases supporting the determination of value. (E) If the property is a portion of a larger parcel, a description of the larger parcel, with sufficient detail for reasonable identification. (2) With respect to each sale, contract, or lease provided in accordance with (1)(D) above, the following data should be provided: (A) The names and business or residence addresses, if known, of the parties to the transaction. (B) The location of the property subject to the transaction. (C) The date of transaction. (D) The price and other significant terms and circumstances of the transaction, if known. In lieu of stating the other terms and circumstances, the public entity may, if the document is available for inspection, state the place where and the times when it is available for inspection. (3) The requirements of this subsection do not apply to requests made after an eminent domain proceeding is commenced. (g) Whenever a part of a parcel of property is to be acquired by a public entity for public use and the remainder, or a portion of the remainder, will be left in such size, shape or condition as to constitute an uneconomic remnant the public entity shall offer to acquire the remnant if the owner so desires. For the purposes of these Guidelines an "uneconomic remnant" shall be a parcel of real property in which the owner retains an interest after partial acquisition of his property and which has little or no utility or value to such owner. (Nothing in this subsection is intended to limit a public entity's authority to acquire real property.) PRova;ED COURTESY OF OIPPLANII, PACIS"I('&(i=it,UR. fNC. (wten-.O C'Cse'.ic s.. om) Page 42 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 (h) Nothing in this section shall be construed to deprive a tenant of the right to obtain payment for his property interest as otherwise provided by law. (i) (1) Prior to commencement of an eminent domain proceeding the public entity shall make reasonable efforts to discuss with the owner its offer to purchase the owner's real property. The owner shall be given a reasonable opportunity to present material which he believes to be relevant as to the question of value and to suggest modification in the proposed terms and conditions of the purchase, and the public entity shall carefully consider the owner's presentation. (2) Prior to commencement of an eminent domain proceeding, if the evidence presented by an owner or a material change in the character or condition of the property indicates the need for a new appraisal or if a significant delay has occurred since the determination of just compensation, the public entity shall have its appraisal updated. If a modification in the public entity's determination of just compensation is warranted, an appropriate price adjustment shall be made and the new amount determined to be just compensation shall be promptly offered in writing to the owner. (j) (1) In no event shall the public entity either advance the time of condemnation, or defer negotiations or condemnation on the deposit of funds in court for the use of the owner, or take any other action coercive or misleading in nature, in order to compel or induce an agreement on the price to be paid for the property. (2) If any interest in property is to be acquired by exercise of the power of eminent domain, the public entity shall promptly institute formal condemnation proceedings. No public entity shall intentionally make it necessary for an owner to institute legal proceedings to prove the fact of the taking of this real property. 6184. Notice of Decision to Appraise. The public entity shall provide the owner with written notice of its decision to appraise the real property as soon as possible after the decision to appraise has been reached. The notice shall state, as a minimum, that: (a) A specific area is being considered for a particular public use; (b) The owner's property has been determined to be located within the area; and (c) The owner's property, which shall be generally described, may be acquired in connection with the public use. 6186. Time of Offer. The public entity shall make its first written offer as soon as practicable following service of the Notice of Decision to Appraise. (See section 6184.) 6188. Notice of Land Acquisition Procedures. (a) At the time the public entity notifies an owner of its decision to appraise real property it shall furnish the owner a written explanation of its land acquisition procedures, describing in non- technical, understandable terms the public entity's acquisition procedures and the principal rights and options available to the owner. (b) The notice shall include the following: (1) A description of the basic objective of the public entity's land acquisition program and a reference to the availability of the public entity's statement covering relocation benefits for which an owner -occupant may be eligible; (2) A statement that the owner or his representative designated in writing shall be given the opportunity to accompany each appraiser during his inspection of the property. ProDCO h] 11OVERLAN1),PACIFIC&(u LI.• R,IN:. (wa1v.OPCservlces.co 1) Page 43of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMDER 1999 (3) A statement that if the acquisition of any part of real property would leave the owner with an uneconomic remnant as defined in subsection 6182(g) the public entity will offer to acquire the uneconomic remnant; if the owner so desires; (4) A statement that if the owner is not satisfied with the public entity's offer of just compensation he will be given a reasonable opportunity to present relevant material, which the public entity will carefully consider, and that if a voluntary agreement cannot be reached the public entity, as soon as possible, will either institute a formal condemnation proceeding against the property or abandon its intention to acquire the property, giving notice of the latter as provided in section 6190. (5) A statement that construction or development of a project shall be so scheduled that no person lawfully occupying real property shall be required to move from a dwelling (assuming a replacement dwelling as required by these Guidelines will be available) or to move his business or farm operation without at least 90 days written notice from the public entity of the date by which the move is required; and (6) A statement that, if arrangements are made to rent the property to an owner or his tenant for a short term or for a period subject to termination by the public entity on short notice, the rental will not exceed the lesser of the fair rental value of the property to short term occupier or the pro rata portion of the fair rental value for a typical rental period. If the owner or tenant is an occupant of a dwelling, the rental for the dwelling shall be within his financial means. (See subsection 6008(c).) 6190. Notice of Public Entity's Decision Not to Acquire. Whenever a public entity which has forwarded a Notice of Decision to Appraise or has made a firm offer subsequently decides not to acquire the property, the public entity shall serve a notice in writing on the owner, all persons occupying the property and all other persons potentially eligible for relocation payments and assistance. This notice shall state that the public entity has decided not to acquire the property. It shall be served not later than 10 days following the date of the public entity decision not to acquire. 6192. Incidental Expenses. If the real property is acquired by purchase, the public entity shall pay all reasonable expenses incident to transfer. Among the expenses requiring payment are: recording fees, transfer fees and similar expenses incident to the conveyance of real property, and the pro rata portion of charges for public service such as water, sewage and trash collection which are allowable to a period subsequent to the date of transfer of title to the public entity, or the effective date of possession of such property by the public entity, whichever is earlier. The public entity shall inform the owner that he may apply for a rebate of the pro rata portion of any real property taxes paid. 6194. Short Term Rental. (a) If the public permits an owner or tenant to occupy the real property acquired on a rental basis for a short-term or for a period subject to termination by the public entity on short notice, the amount of rent required shall not exceed the lesser of the fair rental value to a short-term occupier or the pro rata portion of the fair rental value for a typical rental period. If the owner or tenant is an occupant of a dwelling, the rental for the dwelling shall be within his financial means. (See subsection 6008(c).) (b) A posed- acquisition tenant who occupies real property acquired on a rental basis for a short term and who is informed that the property has been acquired for a public use shall be given not less than 30 days notice of termination of the tenancy. PROVIDPD COURTESY OF C)A Ri.aND, PAC/FIC & CUTTS _i fwww.OPC services.com) Page 44 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMEER 1999 6195. Public Information. The purchase price and other consideration paid by the public entity is public information and shall be made available upon request. 6196. Service of Notice. Service of all notices required by this article shall be made either by first class mail or by personal service upon the person to be notified. 6198. Nonpossessory Interest Exception. The provisions of 6182(b), (c), (d)(4) and (f) and 6188 shall not apply to the acquisition of any easement, right-of-way, covenant or other nonpossessory interest in real property to be acquired for the construction, reconstruction, alteration, enlargement, maintenance, renewal, repair or replacement of sub -surface sewers, waterlines or appurtenance, drains, septic tanks, or storm water drains. PR(,vOH) C.UI=R 15SY Of C)v RLANil. PACIFIC b' (: rIl<Iil .OPCservices.com) Page 45 of46 CALIFORNIA RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION GUIDELINES AS OF NOVEMBER 1999 ATTACHMENT A Minimum Contents of Informational Statement(s) Item To Be Included For Distribution To Displaced Business Persons Concerns and Others General description of the nature and types of activities that will be undertaken, including an X X identification of areas which may involve displacement. A diagrammatic sketch of the project area should be attached 2. Statement that public action may result in displacement but that no one lawfully occupying X X property will be required to surrender possession without at least 90 days' written notice from the public entity and no one will be required to move until 90 days after the provision of information. 3. Assurance that families and individuals will not be required to move before reasonable offers of X decent, safe, and sanitary and otherwise comparable housing within their financial means have been made, except for the causes set forth in the local agency's eviction policy (which shall be in accordance with section 6058.) 4. General description of types of relocation payments available, including general eligibility criteria X X and a caution against premature moves that might result in loss of eligibility for a payment. 5. Identification of the agency's relocation program and a description of the relocation services and X X aids that will be available. 6. Encouragement to visit the agency's relocation office and cooperate with the staff. The address, X X telephone #, and hours of the relocation office should be specified. 7. Information on replacement housing, including: a. Brief description of what constitutes comparable replacement housing, including physical standards. b. Laymen's description of Federal fair housing law (Title VI II of Civil Rights Act of 1968), and applicable State and local fair housing laws, as well as rights under Title IV of the Civil Rights Act of 1964. c. Statement that the public entity (or its agent) will identify comparable replacement dwellings within the financial means of and otherwise available to displaced persons and will provide assistance to persons in obtaining housing of their choice, including assistance in the referral of complaints of discrimination to the appropriate Federal, State or local fair housing enforcement agency. d. Statement that persons may seek their own housing accommodations and urging them, if they do so, to notify the relocation office prior to making a commitment to purchase or occupy the property X 8. Statement that the public entity will provide maximum assistance in locating relocation accommodations, including consultation with the Small Business Administration and other governmental agencies which might be of assistance. X 9. Statement describing requirement for prior notification to the agency of the business concern's intention to move. X 10. Summary of the local agency's eviction policy, which shall be in accordance with the provisions X X of section 6058. 11. Statement describing the agency's grievance procedure, its purpose, and how it may be used, X X which procedure shall be in accordance with the provisions of Article 5. EXHIBIT C STATE RELOCATION LAW (SEE FOLLOWING PAGES) ROSENOW SPEVACEK GROUP INC. PAGE 6 CALIFORNIA GOVERNMENT CODE 1 SECTION 7260-7277 7260. As used in this chapter: (a) "Public entity" includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state or any entity acting on behalf of these agencies when acquiring real property, or any interest therein, in any city or county for public use, and any person who has the authority to acquire property by eminent domain under state law. (b) "Person" means any individual, partnership, corporation, limited liability company, or association. (c) (1) "Displaced person" means both of the following: (A) Any person who moves from real property, or who moves his or her personal property from real property, either: (i) As a direct result of a written notice of intent to acquire, or the acquisition of, the real property, in whole or in part, for a program or project undertaken by a public entity or by any person having an agreement with, or acting on behalf of, a public entity. (ii) As a direct result of the rehabilitation, demolition, or other displacing activity, as the public entity may prescribe under a program or project undertaken by a public entity, of real property on which the person is a residential tenant or conducts a business or farm operation, if the public entity determines that the displacement is permanent. For purposes of this subparagraph, "residential tenant" includes any occupant of a residential hotel unit, as defined in subdivision (b) of Section 50669 of the Health and Safety Code, and any occupant of employee housing, as defined in Section 17008 of the Health and Safety Code, but does not include any person who has been determined to be in unlawful occupancy of the displacement dwelling. (B) Solely for the purposes of Sections 7261 and 7262, any person who moves from real property, or moves his or her personal property from real property, either: (i) As a direct result of a written notice of intent to acquire, or the acquisition of, other real property, in whole or in part, on which the person conducts a business or farm operation for a program or project undertaken by a public entity. (ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of other real property on which the person conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent. (2) This subdivision shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for, or in connection with, a public use where the public entity is otherwise empowered to acquire the property to carry out the public use. Except for persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing that was made available to them, on a permanent basis by a public agency and who are required to move from the housing, a "displaced person" shall not include any of the following: Downloaded from State website August 19, 2009. http://www.l eginfo. ca. gov/cg i-bin/cal awq u ery?codes ection=gov&co d ebody=7260&hits=20 ROSENOW SPEVACEK GROUP INC. PAGE 7 (A) Any person who has been determined to be in unlawful occupancy of the displacement dwellings. (B) Any person whose right of possession at the time cf moving arose after the date of the public entity's acquisition of the real property. (C) Any person who has occupied the real property for the purpose of obtaining assistance under this chapter. (D) In any case in which the public entity acquires property for a program or project (other than a person whc was an occupant of the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project. (d) "Business" means any lawful activity, except a farm operation, conducted for any of the following: (1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property. (2) Primarily for the sale of services to the public. (3) Primarily by a nonprofit organization. (4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any cf the above activities are conducted. (e) "Farm operation" means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operator's support. (f) "Affected property" means any real property that actually declines in fair market value because cf acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity. (g) "Public use" means a use for which real property may be acquired by eminent domain. (h) "Mortgage" means classes of liens that are commonly given to secure advances cn, cr the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby. (i) "Comparable replacement dwelling" means any dwelling that is all of the following: (1) Decent, safe, and sanitary. (2) Adequate in size to accommodate the occupants. (3) In the case cf a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, does not exceed 30 percent cf the person's average monthly income, unless the displaced person meets one cr more of the following conditions, in which case the payment cf the monthly rental cost of the comparable replacement dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, shall not exceed 25 percent of the person's average monthly income: (A) Prior to January 1, 1998, the displaced person received a notice to vacate from a public entity, or from a person having an agreement with a public entity. (B) The displaced person resides cn property that was acquired by a public entity, or by a person having an agreement with a public ROSENOW SPEVACEK GROUP INC. PAGE 8 entity, prior to January 1, 1998. (C) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, initiated negotiations to acquire the property on which the displaced person resides. (D) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, entered into an agreement to acquire the property on which the displaced person resides. (F) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, gave written notice of intent to acquire the property on which the displaced person resides. (F) The displaced person is covered by, or resides in an area or project covered by, a final relocation plan that was adopted by the legislative body prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter. (G) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was required to have been submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was required to have been provided to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter. (H) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation conmiittee, or for which notice was provided to the public or to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter, and the person is eventually displaced by the project covered in the proposed relocation plan. (I) The displaced person resides on property for which a contract for acquisition, rehabilitation, demolition, construction, or other displacing activity was entered into by a public entity, or by a person having an agreement with a public entity, prior to January 1998. (J) The displaced person resides on property where an owner participation agreement, or other agreement between a public entity and a private party that will result in the acquisition, rehabilitation, demolition, or development of the property or other displacement, was entered into prior to January 1, 1998, and the displaced person resides in the property at the time of the agreement, provides information to the public entity, or person having an agreement with the public entity showing that he or she did reside in the property at the time of the agreement and is eventually displaced by the project covered in the agreement. (4) Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature -by -feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features shall be present. (5) In an area not subject to unreasonable adverse environmental conditions. (6) In a location generally not less desirable than the location of the displaced person's dwelling with respect to public utilities, facilities, services, and the displaced person's place of employment. (j) "Displacing agency" means any public entity or person carrying out a program or project which causes a person to be a displaced person for a public project. (k) "Appraisal" means a written statement independently and impartially prepared by a qualified appraiser setting forth an ROSENOW SPEVACEK GROUP INC. PAGE 9 opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information. (1) "Small business" means a business as defined in Part 24 of Title 49 of the Code of Federal Regulations. (m) "Lead agency" means the Department of Housing and Community Development. 7260.5. (a) The Legislature finds and declares the following: (1) Displacement as a direct result of programs or projects undertaken by a public entity is caused by a number of activities, including rehabilitation, demolition, code enforcement, and acquisition. (2) Relocation assistance policies must provide for fair, uniform, and equitable treatment of all affected persons. (3) The displacement of businesses often results in their closure. (4) Minimizing the adverse impact of displacement is essential to maintaining the economic and social well-being of communities. (5) Implementation of this chapter has resulted in burdensome, inefficient, and inconsistent compliance requirements and procedures which may be improved by establishing a lead agency. (b) This chapter establishes a uniform policy for the fair and equitable treatment of persons displaced as a direct result of programs or projects undertaken by a public entity. The primary purpose of this chapter is to ensure that these persons shall not suffer disproportionate injuries as a result of programs and projects designed for the benefit of the public as a whole and to minimize the hardship of displacement on these persons. (c) The Legislature intends all of the following: (1) Public entities shall carry out this chapter in a manner which minimizes waste, fraud, and mismanagement and reduces unnecessary administrative costs. (2) Uniform procedures for the administration of relocation assistance shall, to the maximum extent feasible, assure that the unique circumstances of any displaced person are taken into account and that persons in essentially similar circumstances are accorded equal treatment under this chapter. (3) The improvement of housing conditions of economically disadvantaged persons under this chapter shall be undertaken, to the maximum extent feasible, in coordination with existing federal, state, and local government programs for accomplishing these goals. (4) The policies and procedures of this chapter shall be administered in a manner which is consistent with fair housing requirements and which assures all persons their rights under Title VT:: of that act of April 11, 1968 (Public Law 90-284), commonly known as the Civil Rights Act of 1968 and Title VI of the Civil Rights Act of 1964. 7260.7. Notwithstanding any other provision of law, in furtherance of the goal set forth in paragraph (3) of subdivision (c) of Section 7260.5, nonprofit facilities subsidized pursuant to any federal or state program for the benefit of low-income tenants that restrict rent increases based on operating cost increases, and that also receive state funds for renovation and rehabilitation involving the temporary relocation of those tenants, shall be exempt from any restrictions on rents imposed pursuant to this chapter. 7261. (a) Programs or projects undertaken by a public entity shall be planned in a manner that (1) recognizes, at an early stage in the planning of the programs or projects and before the commencement of ROSENOW SPEVACEK GROUP INC. PAGE 10 any actions which will cause displacements, the problems associated with the displacement of individuals, families, businesses, and farm operations, and (2) provides for the resolution of these problems in order to minimize adverse impacts on displaced persons and to expedite program or project advancement and completion. The head of the displacing agency shall ensure the relocation assistance advisory services described in subdivision (c) are made available to all persons displaced by the public entity. If the agency determines that any person occupying property immediately adjacent to the property where the displacing activity occurs is caused substantial economic injury as a result thereof, the agency may make the advisory services available to the person. (b) In giving this assistance, the public entity may establish local relocation advisory assistance offices to assist in obtaining replacement facilities for persons, businesses, and farm operations which find that it is necessary to relocate because of the acquisition of real property by the public entity. (c) This advisory assistance shall include those measures, facilities, or services which are necessary or appropriate to do all of the following: (1) Determine and make timely recommendations on the needs and preferences, if any, of displaced persons for relocation assistance. (2) Provide current and continuing information on the availability, sales prices, and rentals of comparable replacement dwellings for displaced homeowners and tenants, and suitable locations for businesses and farm operations. (3) Assure that, within a reasonable time period prior to displacement, to the extent that it can be reasonably accomplished, there will be available in areas not generally less desirable in regard to public utilities and public and commercial facilities, and at rents or prices within the financial means of displaced families and 'individuals, decent, safe, and sanitary dwellings, sufficient in number to meet the needs of, and available to, those displaced persons requiring those dwellings and reasonably accessible to their places of employment, except that, in the case of a federally funded project, a waiver may be obtained from the federal government. (4) Assure that a person shall not be required to move from a dwelling unless the person has had a reasonable opportunity to relocate to a comparable replacement dwelling, except in the case of any of the following: (A) A major disaster as defined in Section 102(2) of the federal Disaster Relief Act of 1974. (B) A state of emergency declared by the President or Governor. (0) Any other emergency which requires the person to move immediately from the dwelling because continued occupancy of the dwelling by the person constitutes a substantial danger to the health or safety of the person. (5) Assist a person displaced from a business or farm operation in obtaining and becoming established in a suitable replacement location. (6) Supply information concerning other federal and state programs which may be of assistance to those persons in applying for assistance under the program. (7) Provide other advisory services to displaced persons in order to minimize hardships to those persons. (d) The head of the displacing agency shall coordinate its relocation assistance program with the project work necessitating the displacement and with other planned or proposed activities of other public entities in the community or nearby areas which may affect the implementation of its relocation assistance program. ROSENOW SPEVACEK GROUP INC. PAGE 11 (e) Notwithstanding subdivision (c) of Section 7260, in any case in which a displacing agency acquires property for a program or project, any person who occupies the property on a rental basis for a short term or a period subject to termination when the property is needed for the program or project, shall be eligible for advisory services to the extent determined by the displacing agency. 7261.5. In order to prevent unnecessary expenses and duplications of functions, and to promote uniform and effective administration of relocation assistance programs for displaced persons under this chapter, a public entity may enter into a contract with any individual, firm, association, or corporation for services in connection with such program, or may carry out its functions under this chapter through any federal, state, or local governmental agency having an established organization for conducting relocation assistance programs. Any public entity may, in carrying out its relocation assistance activities, utilize the services of state or local housing agencies or other agencies having experience in the administration or conduct of similar housing assistance activities. 7262. (a) Whenever a program or project to be undertaken by a public entity will result in the displacement of any person, the displaced person is entitled to payment for actual moving and related expenses as the public entity determines to be reasonable and necessary, including expenses for all of the following: (1) Actual and reasonable expenses in moving himself or herself, his or her family, business, or farm operation, or his or her, or his or her family's, personal property. (2) Actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, but not to exceed an amount equal to the reasonable expenses that would have been required to relocate the property, as determined by the public entity (3) Actual and reasonable expenses in searching for a replacement business or farm, not to exceed one thousand dollars ($1,000). (4) Actual and reasonable expenses necessary to reestablish a displaced farm, nonprofit organization, or small business at its new site, but not to exceed ten thousand dollars ($10,000). (b) Any displaced person eligible for payments under subdivision (a) who is displaced from a dwelling and who elects to accept the payments authorized by this subdivision in lieu of the payments authorized by subdivision (a) shall receive a moving expense and dislocation allowance which shall be determined according to a schedule established by the head of the lead agency. The schedule shall be consistent with the Residential Moving Expense and Dislocation Allowance Payment Schedule established by Part 24 of Title 49 of the Code of Federal Regulations. (c) Any displaced person who moves or discontinues his or her business or farm operation and elects to accept the payment authorized by this subdivision in lieu of the payment authorized by subdivision (a), shall receive a fixed relocation payment in an amount equal to the average annual net earnings of the business or farm operation, except that the payment shall not be less than one thousand dollars ($1,000) nor more than twenty thousand dollars ($20,000). In the case of a business, no payment shall be made under this subdivision, unless the public entity is satisfied that the business cannot be relocated without substantial loss of patronage and is not part of a commercial enterprise having at least one other establishment not being acquired, engaged in the same or similar business. For purposes of this subdivision, the term "average annual net earnings" means one-half of any net earnings of the business or ROSENOW SPEVACEK GROUP INC. PAGE 12 farm operation before federal, state, and local income taxes during the two taxable years immediately preceding the taxable year in which the business or farm operation moves from the real property being acquired, or during any other period as the public entity determines to be more equitable for establishing earnings, and includes any compensation paid by the business or farm operation to the owner, his or her spouse, or his or her dependents during the two-year or other period. To be eligible for the payment authorized by this subdivision, the business or farm operation shall make available its state income tax records, financial statements, and accounting records, for confidential use pursuant to an audit to determine the payment pursuant to this subdivision. In regard to an outdoor advertising display, payment pursuant to this subdivision shall be limited to the amount necessary to physically move, or replace that display. Any displaced person eligible for payments under subdivision (a) who is displaced from the person's place of business or farm operation and who is eligible under criteria established by the public entity, may elect to accept a fixed payment in lieu of the payment authorized by subdivision (a). The fixed payment shall not be less than one thousand dollars ($1,000) nor more than twenty thousand dollars ($20,000). A person whose sole business at the displacement dwelling is the rental of the property to others shall not qualify for a payment under this subdivision. (d) Whenever the acquisition of real property used for a business or farm operation causes the person conducting the business or farm operation to move from other real property, or to move his or her personal property from other real property, the person shall receive payments for moving and related expenses under subdivision (a) or (b) and relocation advisory assistance under Section 7261 for moving from the other property. (e) Whenever a public entity must pay the cost of moving a displaced person under paragraph (1) of subdivision (a), or subdivision (d): (1) The costs of the move shall be exempt from regulation by the Public Utilities Commission. (2) The public entity may solicit competitive bids from qualified bidders for performance of the work. Bids submitted in response to the solicitations shall be exempt from regulation by the public Utilities Commission. (f) No provision of this chapter shall be construed to require a public entity to provide any relocation assistance to a lessee if the property acquired for a program or project is subject to a lease for purposes of conducting farm operations and the public entity agrees to assume all of the terms of that lease. 7262.5. Notwithstanding Section 7265.3 or any other provision of law, tenants residing in any rental project who are displaced from the project for a period of one year or less as part of a rehabilitation of that project, that is funded in whole or in part by a public entity, shall not be eligible for permanent housing assistance benefits pursuant to Sections 7264 and 7264.5 if all of the following criteria are satisfied: (a) The project is a "qualified affordable housing preservation project," which means any complex of two or more units whose owners enter into a recorded regulatory agreement, having a term for the useful life of the project, with any entity for the provision of project rehabilitation financing. For this purpose, the regulatory agreement shall require of the owner and all successors and assigns of the owner, as long as the regulatory agreement is in effect, that at least 49 percent of the tenants in the project have, at the time of the recordation of the regulatory agreement, incomes not in excess ROSENOW SPEVACEK GROUP INC. PAGE 13 of 60 percent of the area median income, adjusted by household size, as determined by the appropriate agency of the state. In addition, a project is a qualified affordable housing preservation project only if the beneficiary of the regulatory agreement elects this designation by so indicating on the regulatory agreement. (b) The resident is offered the right to return to his or her original unit, or a comparable unit in the same complex if his or her original unit is not otherwise available due to the rehabilitation, with rent for the first 12 months subsequent to that return being the lower of the following: up to 5 percent higher than the rent at the time of displacement; or up to 30 percent of household income. (c) The estimated time of displacement is reasonable, and the temporary unit is not unreasonably impacted by the effects of the construction, taking into consideration the ages and physical conditions of the members of the displaced household. (d) All other financial benefits and services otherwise required under this chapter are provided to the residents temporarily displaced from their units, including relocation to a comparable replacement unit. Residents shall be temporarily relocated to a unit within the same complex, or to a unit located reasonably near the complex if that unit is in a location generally not less desirable than the location of the displaced person's dwelling with respect to public utilities, services, and the displaced person's place of employment. 7263. (a) In addition to the payments required by Section 7262, the public entity, as a part of the cost of acquisition, shall make a payment to the owner of real property acquired for public use which is improved with a dwelling actually owned and occupied by the owner as a permanent or customary and usual place of abode for not less than 180 days prior to the initiation of negotiation for the acquisition of that property. (b) The payment, not to exceed twenty-two thousand five hundred dollars ($22,500), shall be based on the following factors: (1) The amount, if any, which, when added to the acquisition cost of the dwelling acquired by the public entity equals the reasonable cost of a comparable replacement dwelling. (2) The amount, if any, which will compensate the displaced owner for any increased interest costs which the owner is required to pay for financing the acquisition of a comparable replacement dwelling. The amount shall be paid only if the dwelling acquired by the displacing agency was encumbered by a bona fide mortgage which was a valid lien on the dwelling for not less than 180 days immediately prior to the initiation of negotiations for the acquisition of the dwelling. All of the mortgages on the acquired dwelling shall be used to compute the payment. The amount shall be computed using the lesser of the principal balance of the mortgage on the replacement dwelling or the outstanding principal balance of the mortgage on the acquired dwelling and the lesser of the remaining term on the acquired dwelling or the actual term of the new mortgage. The present value of the increased interest costs shall be computed based on the lesser of the prevailing interest rate or the actual interest rate on the replacement property. The amount shall also include other reasonable debt service costs incurred by the displaced owner. For the purposes of this subdivision, if the replacement dwelling _s a mobilehome, the term "mortgage," as defined in subdivision (h) of Section 7260, shall include those liens as are commonly given to secure advances on, or the unpaid purchase price of, mob'_lehomes, together with the credit instruments, if any, secured thereby. (3) Reasonable expenses incurred by the displaced owner for ROSENOW SPEVACEK GROUP INC. PAGE 14 evidence of title, recording fees, and other closing costs incident to the purchase of the replacement dwelling, but not including prepaid expenses. (c) The additional payment authorized by this section shall be made only to a displaced owner who purchases and occupies a decent, safe, and sanitary replacement dwelling within one year from the later of the following: (1) The date the displaced person receives final payment for the displacement dwelling, or in the case of condemnation, the date the full amount of estimated just compensation is deposited in court. (2) The date the displacing agency fulfulls its obligation to make available at least one comparable replacement dwelling to the displaced person. However, the displacing agency may extend the period for good cause. Also, the displaced owner and the public entity may agree in writing that the displaced owner may remain in occupancy of the acquired dwelling as a tenant of the public entity on the conditions that the displaced owner shall only be entitled to the payment authorized by this section on the date on which the owner moves from the acquired dwelling and that the payment shall be in an amount equal to that to which the owner would have been entitled if the owner had purchased and occupied a replacement dwelling one year subsequent to the date on which final payment was received for the acquired dwelling from the public entity. (d) In implementing this chapter, it is the intent of the Legislature that special consideration be given to the financing and location of a comparable replacement dwelling for displaced persons 62 years of age or older. 7263.5. For purposes of Section 7263, the leasing of a condominium for a 99-year period, or for a term which exceeds the life expectancy of the displaced person as determined from the most recent life tables in Vital Statistics of the United States, as published by the Public Health Service of the Department of Health, Education, and Welfare, shall be deemed a purchase of the condominium. 7264. (a) In addition to the payments required by Section 7262, as a part of the cost of acquisition, the public entity shall make a payment to any displaced person displaced from any dwelling not eligible to receive a payment under Section 7263 which was actually and lawfully occupied by the person as a permanent or customary and usual place of abode for not less than 90 days prior to the initiation of negotiation by the public entity for the acquisition of the dwelling, or in any case in which displacement is not a direct result of acquisition, or any other event which the public entity shall prescribe. (b) The payment, not to exceed five thousand two hundred fifty dollars ($5,250), shall be the additional amount which is necessary to enable the person to lease or rent a comparable replacement dwelling for a period not to exceed 42 months, unless the displaced person meets one or more of the conditions set forth in paragraph (3) of subdivision (i) of Section 7260, in which case the payment, which shall not exceed five thousand two hundred fifty dollars ($5,250), shall be the additional amount which is necessary to enable the person to lease or rent a comparable replacement dwelling for a period not to exceed 48 months. However, publicly funded transportation projects shall make payments enabling the person to lease or rent a comparable replacement dwelling for a period not to exceed 42 months, including compensation for utilities, as provided in subdivision (b) of Section 24.402 of Part 24 of Title 49 of the Code of Federal Regulations. Payments up to the maximum of five ROSENOW SPEVACEK GROUP INC. PAGE 15 thousand two hundred fifty dollars ($5,250) shall be made in a lump sum. Should an agency pay pursuant to Section 7264.5 an amount exceeding the maximum amount, payment may be made periodically. Computation of a payment under this subdivision to a low-income displaced person for a comparable replacement dwelling shall take into account the person's income. (c) Any person eligible for a payment under subdivision (a) may elect to apply the payment to a downpayment on, and other incidental expenses pursuant to, the purchase of a decent, safe, and sanitary replacement dwelling. The person may, at the discretion of the public entity, be eligible under this subdivision for the maximum payment allowed under subdivision (b), except that, in the case of a displaced homeowner who has owned and occupied the displacement dwelling for at least 90 days but not more than 180 days immediately prior to the initiation of negotiations for the acquisition of the dwelling, the payment shall not exceed the payment which the person would otherwise have received under subdivision (b) of Section 7263 had the person owned and occupied the displacement dwelling 180 days immediately prior to the initiation of the negotiations. (d) In implementing this chapter, it is the :intent of the Legislature that special consideration shall be given to assisting any displaced person 62 years of age or older to locate or lease or rent a comparable replacement dwelling. 7264.5. (a) If a program or project undertaken by the public entity cannot proceed on a timely basis because comparable replacement housing is not available and the public entity determines that comparable replacement housing cannot otherwise be made available, the public entity shall take any action necessary or appropriate to provide the dwellings by use of funds authorized for the project. This section shall be construed to authorize the public entity to exceed the maximum amounts which may be paid under Sections 7263 and 7264 on a case -by -case basis for good cause as determined in accordance with rules and regulations adopted by the public entity. Where a displacing agency is undertaking a project with funds administered by a state agency or board, and where the displacing agency has adopted rules and regulations in accordance with Section 7267.6 for the implementation of this chapter, the determination of payments to be made pursuant to this subdivision shall be pursuant to those rules and regulations. (b) No person shall be required to move from his or her dwelling because of its acquisition by a public entity, unless comparable replacement housing is available to the person. (c) For purposes of determining the applicability of subdivision (a), the public entity is hereby designated as a duly authorized administrative body of the state for the purposes of subdivision (c) of Section 408 of the Revenue and Taxation Code. (d) Subdivision (b) shall not apply to a displaced owner who agrees in writing with the public entity to remain in occupancy of the acquired dwelling as provided in subdivision (c) of Section 7263. 7265. (a) In addition to the payments required by Section 7262, as a cost of acquisition, the public entity shall make a payment to any affected property owner meeting the requirements of this section. (b) The affected property shall be immediately contiguous to property acquired for airport purposes and the owner shall have owned the property affected by acquisition by the public entity not less than 180 days prior to the :initiation of negotiation for acquisition of the acquired property. (c) The payment, not to exceed twenty-two thousand five hundred dollars ($22,500), shall be the amount, if any, which equals the ROSENOW SPEVACEK GROUP INC. PAGE 16 actual decline in the fair market value of the property cf the affected property owner caused by the acquisition by the public entity for airport purposes of ether real property and a change in the use of the property. (d) The amount, if any, of actual decline in fair market value of affected property shall be determined according to rules and regulations adopted by the public entity pursuant to this chapter. The rules and regulations shall limit payment under this section only to those circumstances in which the decline in fair market value of affected property is reasonably related to objective physical change in the use of acquired property. 7265.3. (a) A public entity may make payments in the amounts it deems appropriate, and may provide advisory assistance under this chapter, to a person who moves from a dwelling, or who moves or discontinues his business, as a result of impending rehabilitation or demolition of a residential or commercial structure, or enforcement of building, housing, or health cedes by a public entity, or because cf systematic enforcement pursuant to Section 37924.5 cf the Health and Safety Code, cr who moves from a dwelling or who moves or discontinues a business as a result cf a rehabilitation or demolition program cr enforcement of building cedes by the public entity, or because of increased rents to result from such rehabilitation or code enforcement. Payments prescribed by subdivision (b) of Section 7264 may also be made to persons who remain in a dwelling during rehabilitation. Payments authorized by this section and made pursuant to subdivision (b) of Section 7264 may, at the option of the public entity, be computed and reviewed annually based on actual rental increases, and may be paid monthly or annually. A public entity may also give priority to a person who moves from a dwelling, or who remains in a dwelling during rehabilitation, in utilization of local, state, or federal rental assistance programs, either to enable the person to pay increased rents or to move to other suitable housing. A public entity assisting in the financing of rehabilitation may provide some or all of the payments authorized by this section as part of the loan for rehabilitation costs, provided that the public entity makes payments directly to the person who moves or who remains in the dwelling during rehabilitation. (b) A public entity shall make payments in the amounts prescribed by this chapter, and shall provide advisory assistance under this chapter, to persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, whose rent, within one year after the rehabilitation of their dwelling is completed, is increased to an amount exceeding 25 percent of their gross income, or who move from their dwelling, as the result of a rehabilitation program in which the rehabilitation work is wholly or partially financed or assisted with public funds provided by or through the public entity. (c) A public entity shall provide temporary housing for up to 90 days to persons displaced by rehabilitation work which is wholly or partially financed cr assisted with public funds provided by or through the public entity. (d) A person displaced by rehabilitation work which is wholly or partially financed or assisted with public funds provided by or through the public entity shall, as a condition cf the financing or assistance, be given the option cf relocating, after rehabilitation, in the dwelling from which the person was displaced. (e) A public entity may limit the amounts of payments made pursuant to subdivision (b), otherwise calculated pursuant to subdivision (b) of Section 7264, to the lesser cf: (i) the ROSENOW SPEVACEK GROUP INC. PAGE 17 difference between the increased rent and 25 percent of gross income; or (ii) the difference between the increased rent and the rent immediately before the rehabilitation which was greater than 25 percent of gross income. (f) The payments and advisory assistance as required in this section shall be mandatory only if federal or state funds are available. However, nothing shall preclude the public entity from using local funds. 7265.4. In addition to the payments required by Section 7262, as a cost of acquisition, the public entity, as soon as practicable after the date of payment of the purchase price or the date of deposit in court of funds to satisfy the award of compensation in a condemnation proceeding to acquire real property, whichever is the earlier, shall reimburse the owner, to the extent the public entity deems fair and reasonable, for expenses the owner necessarily incurred for recording fees, transfer taxes, and similar expenses incidental to conveying such real property to the public entity. 7266. (a) If a relocation appeals board has been established pursuant to Section 33417.5 of the Health and Safety Code, a city by ordinance may designate the board to hear appeals from all public entities, except those state agencies which have an appeal process, on the eligibility for, or the amount of, a payment authorized by this chapter. (b) Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by this chapter may have the application reviewed by the public entity or by the relocation appeals board if authorized under subdivision (a). The review of a determination by a community redevelopment agency may only be made by a relocation appeals board established pursuant to Section 33417.5 of the Health and Safety Code. 7267. In order to encourage and expedite the acquisition of real property by agreements with owners, to avoid litigation and relieve congestion in the courts, to assure consistent treatment for owners in the public programs, and to promote public confidence in public land acquisition practices, public entities shall, to the greatest extent practicable, be guided by the provisions of Sections 7267.1 to 7267.7, inclusive, except that the provisions of subdivision (b) of Section 7267.1 and Section 7267.2 shall not apply to the acquisition of any easement, right-of-way, covenant, or other nonpossessory interest in real property to be acquired for the construction, reconstruction, alteration, enlargement, maintenance, renewal, repair, or replacement of subsurface sewers, waterlines or appurtenances, drains, septic tanks, or storm water drains. 7267.1. (a) The public entity shall make every reasonable effort to acquire expeditiously real property by negotiation. (b) Real property shall be appraised before the initiation of negotiations, and the owner, or the owner's designated representative, shall be given an opportunity to accompany the appraiser during his or her inspection of the property. However, the public entity may prescribe a procedure to waive the appraisal in cases involving the acquisition by sale or donation of property with a low fair market value. 7267.2. (a) (1) Prior to adopting a resolution of necessity pursuant to Section 1245.230 of the Code of Civil Procedure and initiating negotiations for the acquisition of real property, the public entity shall establish an amount that it believes to be just ROSENOW SPEVACEK GROUP INC. PAGE 18 compensation therefor, and shall make an offer to the owner or owners of record to acquire the property for the full amount so established, unless the owner cannot be located with reasonable diligence. The offer may be conditioned upon the legislative body's ratification of the offer by execution of a contract of acquisition or adoption of a resolution of necessity or both. The amount shall not be less than the public entity's approved appraisal of the fair market value of the property. A decrease or increase in the fair market value of real property to be acquired prior to the date of valuation caused by the public improvement for which the property is acquired, or by the likelihood that the property would be acquired for the improvement, other than that due to physical deterioration within the reasonable control of the owner or occupant, shall be disregarded in determining the compensation for the property. (2) At the time of making the offer described in paragraph (1), the public entity shall provide the property owner with an informational pamphlet detailing the process of eminent domain and the property owner's rights under the Eminent Domain Law. (b) The public entity shall provide the owner of real property to be acquired with a written statement of, and summary of the basis for, the amount it established as just compensation. The written statement and summary shall contain detail sufficient to indicate clearly the basis for the offer, including, but not limited to, all of the following information: (1) The date of valuation, highest and best use, and applicable zoning of property. (2) The principal transactions, reproduction or replacement cost analysis, or capitalization analysis, supporting the determination of value. (3) If appropriate, the just compensation for the real property acquired and for damages to remaining real property shall be separately stated and shall include the calculations and narrative explanation supporting the compensation, including any offsetting benefits. (c) Where the property involved is owner -occupied residential property and contains no more than four residential units, the homeowner shall, upon request, be allowed to review a copy of the appraisal upon which the offer is based. The public entity may, but is not required to, satisfy the written statement, summary, and review requirements of this section by providing the owner a copy of the appraisal on which the offer is based. (d) Notwithstanding subdivision (a), a public entity may make an offer to the owner or owners of record to acquire real property for less than an amount that it believes to be just compensation therefor if (1) the real property is offered for sale by the owner at a specified price less than the amount the public entity believes to be just compensation therefor, (2) the public entity offers a price that is equal to the specified price for which the property is being offered by the landowner, and (3) no federal funds are involved in the acquisition, construction, or project development. (e) As used in subdivision (d), "offered for sale" means any of the following: (1) Directly offered by the landowner to the public entity for a specified price in advance of negotiations by the public entity. (2) Offered for sale to the general public at an advertised or published specified price, set no more than six months prior to, and still available at, the time the public entity initiates contact with the landowner regarding the public entity's possible acquisition of the property. 7267.3. The construction or development of a public improvement ROSENOW SPEVACEK GROUP INC. PAGE 19 shall be so scheduled that, to the greatest extent practicable, no person lawfully occupying real property shall be required to move from a dwelling, assuming a replacement dwelling will be available, or to move his business or farm operation, without at least 90 days' written notice from the public entity of the date by which such move is required. 7267.4. If the public entity permits an owner or tenant to occupy the real property acquired on a rental basis for a short term, or for a period subject to termination by the public entity on short notice, the amount of rent required shall not exceed the fair rental value of the property to a short-term occupier. 7267.5. In no event shall the public entity either advance the time of condemnation, or defer negotiations or condemnation and the deposit of funds in court for the use of the owner, or take any other action coercive in nature, in order to compel an agreement on the price to be paid for the property. 7267.6. If any interest in real property is to be acquired by exercise of the power of eminent domain, the public entity shall institute formal condemnation proceedings. No public entity shall intentionally make it necessary for an owner to institute legal proceedings to prove the fact of the taking of his real property. 7267.7. (a) If the acquisition of only a portion of a property would leave the remaining portion in such a shape or condition as to constitute an uneconomic remnant, the public entity shall offer to acquire the entire property if the owner so desires. (b) A person whose real property is being acquired in accordance with this chapter may, after the person has been fully informed of his or her right to receive just compensation for the property, donate the property, any part thereof, any interest therein, or any compensation paid therefor to a public entity determined by the person. 7267.6. (a) A11 public entities shall adopt rules and regulations to implement payments and to administer relocation assistance under this chapter. These rules and regulations shall be in accordance with the rules and regulations adopted by the Department of Housing and Community Development. (b) Notwithstanding subdivision (a), with respect to a federally funded project, a public entity shall make relocation assistance payments and provide relocation advisory assistance as required under federal law. 7267.9. (a) Prior to the initiation of negotiations for acquisition by a public entity or public utility of nonprofit, special use property, as defined by Section 1235.155 of the Code of Civil Procedure, the acquiring public entity or public utility shall make every reasonable effort to seek alternative property which is other than nonprofit, special use property. However, this requirement shall not apply to properties acquired by public entities for transportation purposes, including, but not limited to, the construction, expansion, or improvement of streets, highways, or railways. (b) This section does not apply to actions or proceedings commenced by a public entity or public utility to acquire real property or any interest in real property for the use of water, sewer, electricity, telephone, natural gas, or flood control facilities or rights -of -way where those acquisitions neither require ROSENOW SPEVACEK GROUP INC. PAGE 20 removal or destruction of existing improvements, nor render the property unfit for the owner's present or proposed use. 7269. (a) No payment received by any person under this chapter or as tenant relocation assistance required by any state statute or local ordinance shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax Law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. (b) No payment received by any person under this chapter shall be considered as income or resources to any recipient of public assistance and such payments shall not be deducted from the amount of aid to which the recipient would otherwise be entitled under any other provisions of law. 7269.1. Where a recipient of relocation benefits payments under federal or state law is also a general assistance recipient under Part 5 (commencing with Section 17000) of Division 9 of the Welfare and Institutions Code and two or more rent schedules apply to the recipient, the highest shall prevail and any excess amount over lower rent schedule shall not be counted as income or resources for general assistance purposes under Part 5 (commencing with Section 17000) of Division 9 of the Welfare and Institutions Code. 7270. Nothing contained in this chapter shall be construed as creating in any condemnation proceedings brought under the power of eminent domain any element of damages not in existence on the date of enactment of this chapter. 7271. If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. 7272. If under any other provision of law of this state the owner or occupant of real property acquired by a public entity for public use is given greater protection than is provided by Sections 7265.3 to 7267.8, inclusive, the public entity shall also comply with such other provision of law. 7272.3. It is the intent of the Legislature, by this chapter, to establish minimum requirements for relocation assistance payments by public entities. This chapter shall not be construed to limit any other authority which a public entity may have to make other relocation assistance payments, or to make any relocation assistance payment in an amount which exceeds the maximum amount for such payment authorized by this chapter. Any public entity may, also, make any other relocation assistance payment, or may make any relocation assistance payment in an amount which exceeds the maximum amount for such payment authorized by this chapter, if the making of such payment, or the payment in such amount, is required under federal law to secure federal funds. 7272.5. Nothing contained in this article shall be construed as creating in any condemnation proceeding brought under the power of eminent domain, any element of damages not in existence on the date the public entity commences to make payments under the provisions of this article as amended by the act which enacted this section at the 1971 Regular Session of the Legislature. ROSENOW SPEVACEK GROUP INC. PAGE 21 7273. Funds received pursuant to Sections 2106 and 2107 of the Streets and Highways Code may be expended by any city to provide relocation advisory assistance, and to make relocation assistance payments, to displaced persons displaced because of the construction of city highways or streets. 7274. Sections 7267 to 7267.7, inclusive, create no rights or liabilities and shall not affect the validity of any property acquisitions by purchase or condemnation. 7275. Whenever any public entity acquires real property by eminent domain, purchase, or exchange, the purchase price and other consideration paid by such entity is public information and shall be made available upon request from the entity concerned. 7276. (a) I2 a resolution is adopted under Section 1245.330 of the Code of Civil Procedure consenting to the acquisition of property by eminent domain and the person authorized by the resolution to acquire the property by eminent domain acquires the property by purchase, eminent domain, cr otherwise, that person shall provide relocation advisory assistance and shall make any of the payments required to be made by public entities pursuant to the provisions of this chapter in conformity with this chapter and the guidelines adopted by the Commission of Housing and Community Development pursuant to Section 7268. (b) This section does not apply to public utilities which are subject to the provisions of Article 6 (commencing with Section 600) of Chapter 3 of Part 1 of Division 1 of the Public Utilities Code or to public entities which are subject to this chapter. 7277. (a) The requirement to provide relocation assistance and benefits imposed by this chapter shall not apply to a purchase of property which is offered for sale by the owner, property being sold at execution cr foreclosure sale, or property being sold pursuant to court order or under court supervision if the property in any of the foregoing situations is either occupied by the owner or is unoccupied, and if the offer for sale is not induced by public entity disposition, planned condemnation, or redevelopment of surrounding lands, and if the sales price is fair market value or less, as determined by a qualified appraiser, and if no federal funds are involved in the acquisition, construction, cr project development. "Offered for sale" means either advertised for sale in a publication of general circulation published at least once a week or listed with a licensed real estate broker and published in a multiple listing, pursuant to Section 1087 of the Civil Code. (b) At the time of making an offer to acquire property under subdivision (a), public entities shall notify the property owner in writing, of the following: (1) The public entity's plans for developing the property to be acquired or the surrounding property. (2) Any relocation assistance and benefits provided pursuant to state law which the property owner may be forgoing. ROSENOW SPEVACEK GROUP INC. PAGE 22