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HomeMy WebLinkAbout440 RDA_CCv0001.pdf RESOLUTION NO. 440 A RESOLUTION OF THE GOVERNING BOARD OF THE REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS RECEIVING AND FILING THE MIDTERM REVIEW OF THE FIVE YEAR IMPLEMENTATION PLAN FOR THE REDLANDS PROJECT AREA WHEREAS, Section 33490 of the California Community Redevelopment Law, Health and Safety Code Section 33000 et seq. (the "Law"), requires that every five years the Redlands Redevelopment Agency ("Agency") must adopt a Five Year Implementation Plan for its redevelopment project; and WHEREAS, as required by the Law, the Agency prepared and adopted a Five Year Implementation Plan for 2004/05 to 2008/09 ("Implementation Plan") pertaining to the Redlands Redevelopment Project Area("Project Area"); and WHEREAS, pursuant to the Law, at least once within the five year term of the implementation plan(no earlier than two years and no later than three years after the adoption of the implementation plan), the Agency shall conduct a public hearing and hear testimony from all interested parties for the purpose of reviewing the redevelopment plans and the corresponding implementation plan for the redevelopment projects, and evaluating the progress of the redevelopment projects ("Midterm Review"); and WHEREAS,the Midterm Review should examine the specific goals and objectives of the Agency for the Project Area, the specific programs and potential projects, estimated expenditures proposed to be made during the five year term of the Implementation Plan for the Project Area, and an explanation of how the goals and objectives, programs and expenditures will eliminate blight within the Project Area; and WHEREAS, the Agency has reviewed the Implementation Plan, and as required by Section 33490 of the Law, a public hearing was held by the Agency on December 15, 2009, for the purpose of reviewing the Redevelopment Plan and the corresponding Implementation Plan for the Project Area and evaluating the progress of the Project Area and Implementation Plan, and the testimony of all persons interested in the matter was heard; and WHEREAS, notice of the public hearing was published in the Redlands Daily Facts for three consecutive weeks, and the notice was posted as required by Section 33490 (d) of the Law and Government Code Section 6063; and WHEREAS, the Agency has reviewed and considered the proposed Midterm Review of the Implementation Plan; NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the Redevelopment Agency of the City of Redlands as follows: I Section 1. The facts set forth above in this Resolution are true and correct. Section 2. The Agency hereby receives and files the Midterm Review of the Five Year Implementation Plan for the Redlands Project Area, in substantially the form currently on file with the Agency Secretary and presented to the Agency at the public hearing on December 15, 2009, subject to any further minor, technical or clarifying changes that may be approved by Agency counsel. Section 3. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original resolutions. Section 4. This Resolution shall take effect upon the date of its adoption. ADOPTED AND APPROVED this 15th day of December, 2009. Pat Gilbreath, Chairman ATTEST: Lorri oyzer, S4et 1, Lorrie Poyzer, Secretary to the Redevelopment Agency of the City of Redlands, do hereby certify that the foregoing Resolution No. 440 was duly adopted by the Governing Board of the Agency at a regular meeting thereof, held on the 15th day of December, 2009 by the following vote: AYES: Councilmembers Bean, Harrison, Gallagher, Aguilar; Mayor Gilbreath NOES: None ABSENT: None ABSTAIN: None Lorrie Poyzer, 2 j Exhibit A DRAFT RECEIVED Revised 12/3/09 DEC s zoos kED4NDS REDLANDS CITY CLERK S- R111 MIDTERM REVIEW OF THE FIVE YEAR IMPLEMENTATION PLAN FOR THE REDLANDS REDEVELOPMENT PROJECT AREA Adopted: Resolution No. ACKNOWLEDGMENTS Redevelopment A-gency Board of Directors JON HARRISON, Chairperson PAT GILBREATH, Vice Chairperson JERRY BEAN, Board Member MIKE GALLAGHER, Board Member PETE AGUILAR, Board Member Redevelopment Agency Staff ENRIQUE MARTINEZ, Executive Director DANIEL G. HOBBS, Redevelopment and Economic Development Director JOSEFINA AGUILAR, Redevelopment Project Manager TINA KUNDIG, Finance Director and City Treasurer � 0 Five Year Implementation Plan Midterm Review INTRODUCTION This document is the Midterm Review of the Five-Year Implementation Plan ("Midterm Review") for the Redlands Redevelopment Project Area ("Project Area") of the Redevelopment Agency of the City of Redlands ("Agency"). Pursuant to California Community Redevelopment Law ("CRU) Health and Safety Code Section §33490(c), the Midterm Review evaluates the Agency's previously stated goals and objectives, anticipated projects, programs, and estimated expenditures for the five-year planning period of 2005-2009. To monitor the progress of the Agency, in relation to its Implementation Plan, the Agency submits its annual reports to the California State Controller and the Department of Housing and Community Development. The City Council of the City of Redlands ("City') created its Redevelopment Agency on September 26, 1972 by Ordinance No. 1500 of the Redlands City Council. The Project Area has been amended on nine occasions and is undergoing an additional amendment which started in 2008 and should be completed in 2009. The Project Area consists of approximately 860 acres located in the central part of the City and includes the historic downtown district and surrounding housing, commercial, and industrial areas. The Project Area boundaries extend to Alabama Street on the west, to Pine and Vine Streets to the south, the SR30 and 1-10 interchange and Colton Avenue to the north, and Church Street to the east. The time limitations of the constituent areas of the Project Area, as codified in Ordinance 1500 and 1575 are as follows: Established SubareaAdoption Adoption Date Ordinance No. Termination Date Debt Repayment Date Original Project Area Sept.26, 1972 1500 Sept.26,2025 Sept. 26,2035 1976 Added Area Feb. 17, 1976 1575 Feb.17,2029 Feb. 17,2039 A map depicting the Project Area is presented in Exhibit A. The Agency, in June 17, 2008, adopted the North Redlands Revitalization Project Area. The Agency will include the newly adopted project area's goals, objectives, and activities in the Agency's 2009/10-2014/15 Five Year Implementation Plan. The Project Area Five-Year Implementation Plan 2005-09 ("Implementation Plan") presented the goals and objectives, anticipated projects and programs, and estimated expenditures for 2005 through 2009. The adoption of the Implementation Plan did not constitute an approval of any specific program or 3of15 Five Year Implementation Plan Midterm Review project, as these approvals are considered as the individual projects are implemented. The Implementation Plan provides a framework to guide the Agency to affirm its goals and evaluate its progress. The Implementation Plan also has implications for the disposition of Agency property and for the Agency's funding of public improvements. When the Agency conveys property acquired in whole or in part with tax increment, CRL Section 33433 requires that the Agency prepare a report containing an explanation of why the sale or lease of the property will assist in the alleviation of blighting conditions together with supporting evidence justifying the use of tax increment. Additionally, prior to the Agency paying for the cost of a public improvement or facility, the CRL Section 33445, requires the Agency to find that the payment of funds for the cost of the improvements will assist in the alleviation of blighting conditions, or provide affordable housing, and is consistent with this Implementation Plan. Midterm Review of Implementation Plan is Not a "Project" Under CEQA Pursuant to CRL Section 33490 (a)(1)(B), the Midterm Review of this Implementation Plan does not constitute a project within the meaning of Section 21000 of the Public Resources Code (the "California Environmental Quality Act' [CEQA]). Further, the Midterm Review does not constitute an approval of any specific program, project, or expenditure. Therefore, inclusion of a program, project or expenditure in the Implementation Plan does not eliminate the potential for CEQA review at the time of approval, to the extent that it would be otherwise required. 4 of 15 Five Year Implementation Plan Midterm Review Et fit• �S x 111 ffil! tWuj �. g. t £ n U. ui q r, k x Hi € �f 7( I 1 � L z a .. _. £ .x i , E 3 Q .0 K W 5 of 15 Five Year Implementation Plan Midterm Review PROJECT AREA BACKGROUND The Redlands Redevelopment Plan was first adopted by the City Council on September 26, 1972 by Ordinance No. 1500 and has been subsequently been amended nine (9) times: • February 17, 1976 by Ordinance No. 1525 to add territory to the Project Area. • December 16, 1986 by Ordinance No. 1974 established limitations applicable to the Redevelopment Plan including the tax increment to be collected by the Agency, the time limit to incur debt, and extended the eminent domain authority for twelve years. • November 5, 1996 by Ordinance No. 2336, in accordance with provisions of AB 1290, modified the time limit to incur debt and the time limit to collect tax increment funds. • December 19, 2000 by Ordinance No. 2464, reestablishing the time limit for the commencing of eminent domain proceedings for non-residential properties for a period of twelve years, and established the land use designations contained in the General Plan and subordinate land use regulations as the land uses for the Amended Project Area. • October 7, 2003 by Ordinance No. 2556 reestablished the Agency's authority to acquire residential property in the Project Area through inent domain. • November 4, 2003 by Ordinance No. 2560 extending the Project Area's effectiveness by one year • April 17, 2007 by Ordinance No. 2657 extending the Redevelopment Plan's effectiveness by two years. • June 19, 2007 by Ordinance No. 2666 adopting an eminent domain program for the Project Area. The Agency is currently in the process of amending the Redevelopment Plan to extend the Project Area effectiveness by ten years and increasing, by ten years, the terms during which the Agency may collect tax increment to repay debt. It is important to note that this amendment to the Project Area will trigger the Agency's inclusionary housing obligations in the Project Area as required by Health and Safety Code Section 33413(b) and Sections 33333.10 subsections (f) and (g). Section 33413(b) requires that 30% of all new and substantially rehabilitated dwelling units developed by the Agency should be affordable to families of low and moderate income and that no less than 50%of those units shall be made available to very low income families. In addition, 15% of all, privately developed and/or Agency assisted, new and substantially rehabilitated dwelling units developed within the Project Area are to be made available to families of low or moderate income at an affordable cost and not less than 40% of those units developed within the Project Area shall be made affordable to families of very-low income. 6 of 15 Five Year Implementation Plan Midterm Review Among other restrictions, Section 33333.10 subsections (f) and (g) will require the Agency to deposit no less than 30%of the tax increment into the Housing Fund commencing on the first fiscal year after the date of the amendment to be spent on increasing, improving and preserving affordable housing for low and moderate income families. The Agency, however, is limited to spending no more than 15%of the housing fund, in a five year period, on families of moderate income. The Project Area includes approximately 860 acres and is generally located in the central part of the City. The Project Area includes the historic downtown district and surrounding commercial and residential areas. The Civic Center, public library, the historic Santa Fe Depot and citrus packing house and other various historic buildings, along with retail shops on State Street within the historic downtown district, are located in the southeastern portion of the Project Area. The main objective of the adoption of the Project Area is to eliminate blighting conditions by encouraging new investment within the City's downtown area and surrounding neighborhoods. BLIGHT ELIMINATION The Agency documented blighting conditions in the Project Area at the time of the adoption and are currently outlined in the current Five Year Implementation Plan including: Old, deteriorating, and obsolete structures, defective design and character of physical construction, mixed character and shifting of uses, • Faulty exteriors spacing, • Depreciated values, impaired investment, and social and economic maladjustment, • Parcels of irregular size and/or shape, • Inadequate public improvements, and • Inadequate provision of open space and recreational facilities. The Five Year Implementation Plan identifies building deterioration, aging infrastructure, and lack of maintenance as contributing factors to the widespread presence of physical blight. These structures presented insufficient parking, outdated signage and facades, and were usually older and underdeveloped. The presence of these buildings has contributed to the decline of property values and investments in the Project Area. In addition, multiple incompatible uses have lead to circulation problems, land use incompatibility, traffic safety issues, noise pollution, and inadequate on-site parking, which further reduce the interest of private investors. Redevelopment opportunities are also impaired by the large percentage of irregular shaped and small parcels, along with land locked parcels and flag lots. Most of the blight present in the Project Area is confined to privately-owned properties. Public infrastructure improvements were also identified as being necessary for redevelopment of the Project Area. 7 of 15 Five Year Implementation Plan Midterm Review The Agency developed five (5) goals to address the blighting conditions. The Midterm Review assessment of each goal is addressed by the following bulleted accomplishments. The Agency has been extremely active in remedying blighting conditions within the Project Area during this Implementation Plan planning period. Goal #11: Provide a high-quality pedestrian oriented development character consistent with the Downtown area. The Agency detailed several significant projects in the Implementation Plan that are ongoing in the development process and intended to fulfill the desired goal of expanding and providing a pedestrian oriented development consistent with the Downtown Area. • Krikorian Theater Expansion Proiect- The project includes the expansion of the theater complex on Eureka Street including the addition of screens and mixed use retail and residential units and parking facilities to serve the project. The Agency entered into an Exclusive Negotiation Agreement ("ENA") with Showprop LLC, a subsidiary of Krikorian Premier Theaters, to carry out the expansion on June 21, 2005. The ENA was extended on several occasions to continue the negotiations; however, due to the slowing economy the Showprop group abandoned its expansion plan for the Krikorian Theater. • Village at Redlands Proiect- Redlands Mall revitalization includes the renovation of the current Redlands Mall into an open-air "life style" center with approximately 190,000 square feet of retail and live/work units and more than 200 dwelling units above ground floor retail. Negotiations with Redlands Mall, L.L.P., a subsidiary of General Growth Properties Inc., occurred during 2007 after the signing by the Agency of a Funding Agreement on January 17, 2006. General Growth Properties, Inc. has suspended the expansion due to the national economic slowdown. • Civic Center and Safety Hall Revitalization Proiect- On September 19, 2006 the Agency approved an Exclusive Negotiating Agreement with Galaxy Holdings, LLC for the development of a multi-story office complex at Redlands Boulevard and Kansas Street as part of a plan to replace the Safety Hall and the Civic Center. Galaxy Holdings privately acquired parcels within the project area; however, it was unable to acquire all parcels. During 2008, the Agency reviewed various alternatives and options for a new Civic Center and Safety Hall and is investigating possible alternatives to either construct a new Civic Center/Safety Hall or rehabilitate an existing office structure. • Shopper's Lane/Gas Lamp District Proiect (Downtown Specific Plan)- A Downtown Specific Plan is currently under review and is close to being completed and adopted. The Plan aims at providing a pedestrian oriented environment that focuses on the character and density of the old Redlands Town Center. The Plan includes a large number of underdeveloped properties that provide an opportunity 8 of 15 Five Year Implementation Plan Midterm Review to improve and increase the City's local economy by providing shopping, service and entertainment facilities within the downtown area. The Plan also incorporates a large number of historic buildings including the Santa Fe Depot, citrus packing house and turn of the century structures on Orange Street. • The Santa Fe Depot Prosect- The Santa Fe Depot building revitalization plans include two retail areas, a restaurant, construction of a parte cochere and parking lot improvements. The retail areas are 1,113 square feet and 2,238 square feet and are located within the colonnade and enclosed by glass features. In addition, it includes a 5,700 square feet restaurant that will occupy the existing facilities of the train depot building and include a dining area enclosed by glass within the colonnade. The porte cochere addition along the south elevation of the existing building will expand the parking lot area to include a total of 72 parking stalls with eight of these spaces located along Shoppers Lane. • RCIC Office Expansion Project- The project involves a proposed mixed-use development with retail, office, and entertainment components, and a parking structure located at the northeast intersection of 7th Street and Citrus Avenue. The project has been put on hold due to the current economic downturn. • Core Block Parking Structure and other Parking- The Agency commissioned several studies regarding the development of a multi-story parking structure and alternative locations. As of the fourth quarter of 2008, a large percentage of proposed downtown developments that the planned structure would have served were abandoned due to the declining economy. Preliminary studies evaluating traffic circulation, parking areas and parking structure locations for the downtown area have been completed. At this time, the City is pursuing efforts to perform a focused environmental and preliminary engineering design for the parking structure identified at Stuart Avenue and Third Street location. This parking structure location is adjacent to the future Redlands Downtown Rail Station and supports the business and residential downtown development objectives. This next step is subject to approval of funds under the Transportation Community and System Preservation Program. • Galaxy Commercial Properties- The project involves the rehabilitation of the Light House and the Mitten Building and development of a transit-oriented village surrounding these structures. The project has been put on hold due to the economic downturn. • Pacific West Coast Investments-The project is a transit oriented development in the downtown core which includes a Metro Link Station. Phases of the project include mixed-use retail, residential, office, entertainment components, parking structure, and auto dealerships. The Agency will continue to work with SANBAG to assure adequate City representation on the decision-making panel and review related impacts. 9 Of 15 Five Year Implementation Plan Midterm Review Goal #2: Provide opportunities for the expansion and development of small businesses that provide local services. The Agency detailed several significant projects in the Implementation Plan that are ongoing in the development process and intended to fulfill the desired goal of expanding the small business base and local services within the Project Area. • Gateway Project- Development of a retail commercial center located at the southeast intersection of Pearl Avenue and Eureka Street, which would include office and housing components. In 2006, the Agency worked with a developer to complete Phase I of the project consisting of approximately 10,000 square feet of retail/restaurant and 2,500 square feet of second floor office space and parking on an approximate 0.80 acres. Phase 11 of the project is projected to start in the fourth quarter of 2009, which includes approximately 8,500 square feet of retail/restaurant space and 8,500 square feet of second floor office space and parking along Pearl Avenue at Ruiz Street, adjacent to Phase I. In addition, the Agency extended the Exclusive Negotiation Agreement, originally approved on June 6, 2006, to continue working with Investwest in developing a strategy for Phase 11, which includes possible land assemblage along the east side of Eureka Street beginning at the corner of Pearl Avenue down to the northeast corner of Eureka Street and Stuart Avenue. The amended ENA also includes a Phase III which envisions a mixed-use development comprised of commercial and urban residential components. • Promenade Project- A commercial project consisting of approximately 160,000 square feet of retail at the southwest intersection of Pearl Avenue and Eureka Street. On August 7, 2007, the Agency Board approved an Owner Participation/Disposition and Development Agreement with Redlands Land Holding, LLC, a subsidiary of General Growth Properties. As of May 2008, General Growth privately acquired most of the parcels located within the Phase I site area, however; due to the nation's declining economy, the developer has suspended any further acquisition and development activities for the project for at least the next 18 to 24 months. • Tri-City Shopping Center Revitalization and Renovation- The project includes the renovation of the existing shopping center and the potential re-alignment of Redlands Boulevard, Colton Avenue, Alabama Street and the BNSF railroad crossing. The project has been put on hold due to the economic downturn. Goal #3: Provide public improvements for traffic circulation, flood control, utility services and aesthetic amenities that will attract new private investment and economic development. 100-Year Flood Plan- The Agency will continue efforts to conduct a study 10 of 15 Five Year Implementation Plan Midterm Review assessing the potential hazards associated with the flood plain, local flood control, and storm drainage with the Municipal Utilities and Engineering Department. • Promote Public Open Spaces and Public Plazas- Concept plans have been submitted for the renovation of Ed Hales Park located on the northeast corner of State and Fifth streets. The renovation will eliminate failing turf and landscaping areas and include the installation of decorative pavers and planter areas to create an urban plaza. The redesign of the park will stimulate activity in the park and provide additional dining opportunities for downtown restaurants. Park lighting is being increased to enhance security. Construction was estimated to commence in the summer of 2009. However due to prohibitive costs, the project has been suspended. • Improve and increase landscaping, street trees, street furniture, and lighting- New street furnishings including benches and trash receptacles were purchased and installed during the summer of 2007 on State Street between Orange Street and Redlands Boulevard, and on Orange Street between Citrus Avenue and Interstate 10. Replacement of decorative bollards and lampposts in the downtown were purchased and installed in the summer of 2009. Goal #4: Preserve historic buildings and sites. The Agency has encouraged the preservation of the City's historic buildings by implementing a number of programs that target historic buildings throughout the Project Area. • State Street and Orange Street Facade Improvements- In January 2008, storefront programs were approved for minor faqade improvements which include paint, awnings, signs, and anti-graffiti film. More substantial programs have been established for commercial rehabilitation and the purchase of fagade easements. Both programs have been initiated and have been utilized by several downtown merchants. • Shopper's Lane and Gas Lamp District (Downtown Specific Plan)- The project involves the rehabilitation of a number of historic buildings, including the Santa Fe Depot, citrus packing house, and turn of the century structures on Orange Street. The rehabilitation of these structures is outlined in the Downtown Specific Plan which is currently under review and is close to being completed and adopted. The Plan aims at providing a pedestrian oriented environment that focuses on the character and density of the old Redlands Town Center. The Plan includes a large number of underdeveloped properties that provide an opportunity to improve and increase the City's local economy by providing shopping, service and entertainment facilities within the downtown area. The Plan also incorporates a large number of historic buildings including the Santa Fe Depot, citrus packing house and turn of the century structures on Orange Street. 11 of 15 Five Year Implementation Plan Midterm Review • Historic Residence Rehabilitation Program- The program provides historically significant residential properties with up to $50,000 in the form of a deferred loan for structural repairs and to address code deficiencies. Eligible applicant properties within the Redevelopment Project Area may be owner or renter occupied. Homes located outside of the Redevelopment Project Area must be owner occupied. Goal #5: Improve the accessibility, traffic flow, and parking availability within commercial areas. • Core block parking structure and Citrus Street parking structures and/or parking lots- In 2006, the Agency retained International Parking Design to conduct a parking structure analysis for two potential parking 'structure sites in downtown: Citrus Avenue and Sixth Street, and Citrus Avenue and Eureka Street. In addition, the Agency has actively pursued the reconstruction and realignment of streets and roadways throughout the Project Area to improve traffic flow and accessibility to the commercial areas. HOUSING PRODUCTION PLAN California Redevelopment Law (CRL) requires that 20% of property tax increment revenue received by a redevelopment agency from a project area be set-aside for the development of affordable housing for very-low, low and moderate income households. In addition, CRL also states that any housing units available to very-low, low and moderate income households that have been removed or destroyed as a result of a redevelopment project, must be replaced. CRL requires the Five Year Implementation Plan to include a housing production program for five- and ten- year periods as well as for the entire life of the project. Specifically, the housing production plan must estimate the number of housing units to be developed, substantially rehabilitated, price restricted, or destroyed. In accordance with CRL Section 33413(d)(1), pre-1976 Project Areas are not subject to the inclusionary housing production requirements of Section 33413 as a result of Agency produced units, or the production or substantially rehabilitation of market-rate units by private developers. The Agency is, however, required to replace housing removed or destroyed from the Project Area on a one-for-one basis and is required to spend the Housing Funds in a timely manner. While the Agency added territory to the Project Area on February 17, 1976, by Ordinance No. 1525, the added area did not contain any housing and is currently the site of commercial business. Housing requirements would have applied only to the added Area. 12 of 15 Five Year Implementation Plan Midterm Review It is important to note that the amendment currently proposed to the Project Area will trigger the inclusionary housing obligations in the Project Area as required by Health and Safety Code Section 33413(b) and Sections 33333.10 subsections (f) and (g). Section 33413(b) require the Agency to provide a minimum of 30% of all new and substantially rehabilitated dwelling units developed by the Agency should be affordable to families of low and moderate income and no less than 50% of those units shall be made available to very low income households. In addition, 15% of all, privately and/or Agency assisted, new and substantially rehabilitated dwelling units developed within the Project Area shall be made affordable to families of low or moderate income and not less than 40% of those units shall be made affordable to families of very-low income. Among other restrictions, Section 33333.10 subsections (f) and (g) require the Agency to deposit no less than 30% of the tax increment into the Housing Fund commencing on the first fiscal year after the date of the amendment to be spend on increasing, improving and preserving affordable housing for low and moderate income families. The Agency, however, is limited to spending no more than 15% the housing fund, in a five year period, for families of moderate. The Implementation Plan Housing Production Plan projected an affordable housing need over the ten year planning period of 471 units. The Agency has assisted 16 units since the adoption of the Implementation plan in 2005. Based on funds availability, the Agency will continue to pursue its housing production goals through the following housing programs. • First Time Home Buyer Program • Emergency Grant Program • Neighborhood Revitalization Program Additionally, when funds are available, the Agency will assist developers in the creation of restricted affordable housing within the Project Areas. The Agency carried out the programs above using Housing Funds totaling $1,267,382 in fiscal year 2007-2008. AGENCY FINANCIAL STATUS REPORT The Agency presented a preliminary five-year budget for the Redevelopment (Nonhousing) Fund in the Implementation Plan, The Agency adopts its budget on an annual basis; as such, actual revenues and expenditures may differ from those forecasts presented in the Implementation Plan and are therefore subject to change. 13 of 15 Five Year Implementation Plan Midterm Review Projections of revenues and expenditures contained within the Implementation Plan were based upon the assumptions delineated below: • Revenue and expenditures for fiscal year 2005-06 were based on the Agency's approved budget at the time of document preparation. • Future tax increment revenues were projected based upon a 2.92% increase in the secured assessed value in the Project Area. • Tax increment revenue projections include projected revenues from new development occurring within the Project Area. • Interest earnings were estimated based on net revenues and beginning fund balances. • Taxing agency payments from the non-housing fund have been calculated pursuant to all existing agreements and Section 33607.5 of the CRL. • Personnel and Operations expenditures were based on the City budget and forecasts from the City Finance Department. • Capital project costs were obtained from staff estimates. The Agency reported $6,336,910 in gross tax increment in Fiscal Year 2007-08. After disbursements to taxing entities and the 20% housing set-aside deposit, the Agency is projected to retain $4,978,741 in net tax increment, which may be utilized to address the Agency's stated redevelopment goals through various projects and programs identified in the Implementation Plan and this Midterm Review. ADMINISTRATION OF THE IMPLEMENTATION PLAN As detailed in the Introduction of this Midterm Review, the Agency is required to produce an Implementation Plan every Five-Years. After adoption of the first Implementation Plan, a new plan is to be adopted every five years either in conjunction with the Housing Element cycle or the Implementation Plan cycle. Implementation Plan Adoption Process Each Implementation Plan must be presented and adopted at a duly noticed public hearing of the Agency. Notice of the public hearing must be conducted pursuant to Section 33490 of the CRL. The Notice must be published pursuant to Section 6063 of the Government Code, mailed at least three weeks in advance to all persons and agencies that have requested notice, and posted in at least four permanent places within the Project Area for a period of three weeks. Publication, mailing, and posting shall be completed not less than 10 days prior to the date set for hearing. The Agency may amend the Implementation Plan at any time after conducting a public hearing on the proposed amendment. Mid-Term Implementation Plan Review Process 14 of 15 Five Year Implementation Plan Midterm Review At least once within the five-year term of the Implementation Plan, the Agency must conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the redevelopment plan and the corresponding implementation for each redevelopment project. This hearing must take place no earlier than two years and no later than three years after the adoption of the Implementation Plan. The midterm review must be presented and adopted at a duly noticed public hearing of the Agency. Notice of the public hearing must be conducted pursuant to this Section 33490 of the CRIL. The Notice must be published pursuant to Section 6063 of the Government Code, mailed at least three weeks in advance to all persons and agencies that have requested notice, and posted in at least four permanent places within the Project Area for a period of three weeks. Publication, mailing, and posting shall be completed not less than 10 days prior to the date set for hearing. 15 of 15