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Home My WebLink AboutMINUTES - 05202008 - D.1 a` e , EE1_L__o� TO: BOARD OF SUPERVISORS/ -- - Contra REDEVELOPMENT AGE=NCY Costa FROM: JOHN CULLEN, EXECUTIVE DIRECTOR tea. DENNIS BARRY,AICP INTERIM DIRECTOR -0`.y 9 "� County CONSERVATION AND DEVELOPMENT; 3.�A COtlli'C� DEPARTMENT. DATE: May 20, 2008 SUBJECT: Joint Public Hearing Regarding the Sixth Amendment to the Redevelopment Plan for the North Richmond Project Area. SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION - RECOMMENDATION: If no written objections are received, as the Board of Supervisors ADOPT Resolution certifying the Negative.Declaration, and ADOPT an.Ordinance approving the Sixth Amendment to the North Richmond Redevelopment Plan If no written objections are received, as the Governing Board of the Redevelopment Agency, ADOPT Resolution certifying the Negative Declaration;and ADOPT Resolution approving the Amended Five-Year Implementation Plan If written objections are received, no action can be taken at this meeting. Consideration of the Board of Supervisors and Agency Resolutions and Ordinance will occur at a later scheduled meeting and the Board of Supervisors will also consider findings in response to the written objections. CONTINUED ON ATTACHMENT: �S SIGNATURE: / r=PPROVE MMENDATION OF COUNTY ADMINISTRATOR ❑RECO EN ATION O OARD COMMITTE ❑OTHER SIGNATURE(S): i ACTION OF BO R ON 2C/ APPROVED AS RECOMMENDE .❑ OTHER ❑ VOTE OF SUPF?.-��SARS- I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND i UNANIMOUS(ABSENT�i. ) ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS/AGENCY ON THE DATE SHOWN'. AYES: NOES: ABSENT: ABSTAIN: ATTESTED Contact: James Kennedy JOHN CULLEN Q,1ARK OF THE BOARD OF (925)335-7225 SUPERVISOR AGENCY SECRETARY orig: Redevelopment Agency cc: CAO By Deputy County Counsel Community Development Redevelopment Agency Via RDA: • Goldfarb&Lipman 0 RSG - —---- . FINANCIAL IMPACT: The Report on the Redevelopment Plan Amendment has identified the potential effects of revenue diversion to the County General Fund and to County controlled funds. Currently the County General Fund and County controlled agencies do not receive a pass thru payment. Staff has recommended that the Board of Supervisors elect to receive the statutory pass- through allowed by California Redevelopment Law for the County controlled agencies. The Sixth Amendment permits the Agency/County to continue to affirmatively address the significant economic and physical blight that act as a drain on County programs and resources. BACKGROUND: The North Richmond Redevelopment Project("Project Area")is located in the unincorporated area of west Contra Costa County, State of California. Neighboring cities include Richmond and San Pablo. The North'Richmond Redevelopment Project Area is comprised of an existing residential area of approximately 4,000 people, and a light/heavy industrial employment area that may partially transition to residential/mixed-use in the near future. Requirements for adopting, amending, and implementation redevelopment projects are established in the California Community Redevelopment Law("CRL"),which is part of the Health and Safety code. Report to Board of Supervisors Section 33352 of the CRL provides that when the Agency submits a Redevelopment Plan(the "Plan Amendment")to the Board of Supervisors for the joint public hearing required by the CRL,the Agency must also submit a report on the Plan.Amendment, entitled the Report to Board of Supervisors("Report"). The purpose of this Report is to provide in one report all information, documentation and evidence regarding the Plan Amendment to assist the Board of Supervisors in consideration of the proposed Plan Amendment and in making various findings and determinations that.are required to adopt the Plan Amendment.An Executive Summary of the report has also been prepared and is incorporated herein as Attachment A. This Report has been prepared in accordance with all the requirements of Section 33352 of the CRL and includes the reasons for the adoption of the Plan Amendment; a description of proposed projects and programs and how these projects and programs will improve or alleviate blighting conditions existing in the Project Area; an implementation plan describing specific projects and programs that will alleviate or improve blighting conditions; an explanation of why the elimination of blight cannot be;accomplished through private enterprise acting alone or through other financing alternative other than tax increment financing;the method of financing and economic feasibility of the Plan Amendment;"the statement of conformation to the County's General Plan; the Environmental Determination; and a summary of consultations with affected taxing agencies. Redevelopment Plan Amendment The Plan Amendment has been prepared pursuant to Section 33000, et. seq. of 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 the Project Area. Instead, it establishes a process and framework for implementation and the alleviation/elimination of blighting conditions in the Project Area over a long period of time. In general,the Plan Amendment is proposing the following amendments: (1)Increase the limit on the:amount of bonds secured by a pledge of tax increment from the Project Area that may be outstanding at one time from$30 million to$270 million; (2) Increase the limit on the total amount of tax increment that the Agency may receive over the term of the Redevelopment Plan'from $60 million to$712 million; Environmental Review A Negative Declaration was posted for the proposed Plan Amendment on February 14, 2008. The public review period ended on March 17, 2008. No comments were received. On April 22, 2008, the County Planning Commission voted to.recommend to,the Board of Supervisors that d: Jt: 5• moo-OJ 1) Find the Negative Declaration adequate for purposes of the California Environmental Quality Act(CEQA);and 2) Find that the proposed Plan Amendment conforms to the General Plan(CRL Section 33346, 33354.6(a), and 33453; and Government Code Section 65402). The Planning Commission Resolution 14-2008 is included As Attachment B. Joint Public Hearing The joint public hearing is intended to provide a forum for the receipt of public comment on the Plan Amendment. If written objections are not received prior to or during the joint public hearing,the public hearing may be closed, and the Board of Supervisors may approve the Resolution certifying the Negative Declaration, and adopt the ordinance approving the Sixth Amendment to the North Richmond Redevelopment Pian, and the Agency may adopt the Resolutions certifying the Negative Declaration and approve the Amended Five-Year Implementation Plan. If any written objections to the Redevelopment Plan are received, the public testimony portion of the joint public hearing may be closed. Section 33364 of the CRL requires that the Plan Amendment may only be adopted by the Board of Supervisors after consideration of written objections,and the adoption of written findings in.response to written objections. Written objections may be delivered at any time prior to the May 20,2008 joint public hearing of the Board of Supervisors and the Agency. The Agency staff must then prepare written responses to written objections as required by the CRL,which will be presented at a subsequent Board of Supervisors meeting,entered into the record and adopted by Board of Supervisors Resolution. Resolutions The attached Board of Supervisors Resolution would make findings and approvals required by the California Environmental Quality Act("CEQA")in connection with the Negative Declaration Prepared for the Adoption of the Sixth Amendment to the North Richmond Redevelopment Plan. The attached Agency Resolutions would make findings and approvals required by CEQA in connection with the Negative Declaration Prepared for the Adoption of the Sixth Amendment to the North Richmond Redevelopment Plan, and approve'an Amended Five-Year Implementation Plan. Ordinance The attached ordinance is a mechanism by which the Board of Supervisors would adopt the Sixth Amendment to the Redevelopment Plan. It makes certain findings regarding the conditions and needs for the Sixth Amendment to the North Richmond Redevelopment Plan. - - ..........._...-.. _ _ ._ - -- ---------- . -----..._ ---. .- -- — 1 EXHIBIT A DRAFT ,SIXTH AMENDMENT TO THE NORTH RICHMOND REDEVELOPMENT PLAN SIXTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE NORTH RICHMOND REDEVELOPMENT PROJECT AREA Adopted May 20, 2008 Ordinance No.2008-20 I. INTRODUCTION. The Board of Supervisors of the County of Contra Costa has adopted the Redevelopment Plan for the North Richmond Redevelopment Pfoject Area by Ordinance No. 87-50, adopted on July 14, 1987, as amended by Ordinance No. 94=63, adopted on December 6, 1994, as amended by Ordinance No. 99-06, adopted on February 23, 1999, as amended by Ordinance No. 99-31, adopted on June 8, 1999, as further amended by:Ordinance No. 2006-35, adopted on July 18,. 2006, and as further amended by Ordinance No.'2007-25, adopted on June 5, 2007 (the "Plan"). The Plan establishes a redevelopment project area (the "Project Area"). The Project Area is shown on the boundary map attached hereto as Exhibit A and described in the attached Exhibit B. The Plan contains limits on (1) the amount of bonds secured by a pledge of tax increment from the Project Area that may be outstanding at one time. and (2) the total amount of tax increment that the Redevelopment Agency of the County of Contra Costa (the "Agency") may receive over the tern of the Plana This Amendment will increase the amount of bonded indebtedness that may be outstanding at one time, and will increase the limit on the total amount of tax increment that the Agency may receive over the tern of the Plan. II. MODIFICATIONS TO PLAN Part VII.C, page 31, paragraphs numbered 2 and 3, of the Plan are deleted and replaced ' with the following language: "2) No more than $712 million of tax increments may be divided and allocated to the Agency without further amendment of this Plan. 3) No more than $270 million in bonded indebtedness to be repaid in whole or in part from tax increments may be outstanding at any one time without further amendment of this Plan." III. NON-SEVERABILITY If any provision, section, subsection, subdivision,.sentence, clause or phrase of this Amendment is for any reason held to be invalid"or unconstitutional, the remainder of the provisions shall continue in full force and effect: 320\2.4\50819(i.I1 IV. EFFECT OF AMENDTYI ENT All provisions of the Plan not specifically amended or repealed in this Amendment shall continue in full force and effect. 320\24\508196.1 2 EXHIBIT A BOUNDARY MAP 320\24\509196.1 A-1 M W X G a m LL LU , _I u Q -- I-- o �..L' W �,.. Im F z W v¢ J rn� W Q N , C O W d � T c W m o IY v v o Z aj s a , L a a a re U u u Z F a X a II Z U Z V� EXHIBIT B LEGAL DESCRIPTION 320\24\50819(i.1 B-1 S au-o8' ATTACHMENT A Executive Summary - North Richmond Redevelopment Plan Amendment T-/ Executive Summary North Richmond Redevelopment Plan Amendment The Contra Costa County Redevelopment Agency("Agency")has initiated a redevelopment plan amendment process to amend the North Richmond Redevelopment Plan ("Redevelopment Plan"). The proposed amendment to the Redevelopment Plan ("2008 North Richmond Amendment") would accomplish the following: 1. Increase the total amount of tax increment revenues the Agency may receive in North Richmond from$60 million to$712 million;and 2. Increase the amount of bonds that can be outstanding at any one time from $30 million to $270 million. The 2008 North Richmond Amendment will enable the Agency to more effectively implement redevelopment projects and activities eliminating blighting conditions within the Project Area. The proposed amendment does not increase the territory of the Project Area,.or alter the Redevelopment Plan's eminent domain and property acquisition provisions. By receiving additional tax increment revenue and increasing the bonding capacity the Agency will be able to substantially enhance its' ability to reinvest funds in North Richmond, enhance the job base by revitalizing commercial and industrial areas,and increasing, improving, and preserving the supply of affordable housing. All redevelopment activities will be subject to future review and approval by the Agency, and/or Board of Supervisors. The Agency works with the North Richmond Municipal Advisory:Council (NR MAC) in establishing priorities,and developing projects and programs Plan Amendment Process: A Report to the Board of Supervisors("Report")is one of several documents the Agency is required to prepare during the amendment process. The Report is intended to provide the decision makers with comprehensive information concerning the 2008 North Richmond Amendment. The Agency Report contains all of the elements required by law(Health and Safety Code Section 33000 et seq). Reasons for Amending the Redevelopment Plan: Since its 1987 adoption of the Redevelopment Plan the Agency has made progress in revitalizing North Richmond. The Agency has made progress in eliminating blight throughout the Project Area by actively pursuing revitalization opportunities and assisting in redevelopment activities. Since its inception the Agency has: • Constructing the 87-unit Parkway Estates subdivision; • Constructing the 187-unit Bella Flora subdivision; • Palecek Home Furnishing Manufacturing relocation; • Completing the North Richmond Town Center - 52 Unit Senior Heritage Apartments, Police Sub- Station,Service Integration Team, and North Richmond Mini Market; • Design and construction of the Richmond Parkway; • Implementation of the Third Street Urban Transportation Plan; • Facilitating FEMA removal from the 100 Year Flood Plain; • In-Fill Housing Development of 8 Ciaramita Properties; • Weed and Seed Program; • First Source Hiring Program; C:\Documents and settings\plam\Local Settings\Temporary Internet Files\OLK62\NR Board RDA Order 5 20 08 draftl.doc - - S-a-o od' • First Time Homebuyers Program; • Graffiti & beautification initiatives (COMET, NR Beautification, Illegal Dumping initiative, ABC liquor license enforcement.); • North Richmond Youthbuild Program;and • Phase 1 Truck-Route Planning Program Unfortunately, blighting conditions still remain within North Richmond and the proposed 2008 North Richmond Amendment is necessary to continue the Agency's efforts in eliminating physical and economic blight and attracting private investment to the community. • The benefits of the 2008 North Richmond Amendment would affect the immediate and long-range economic viability of the entire North Richmond community. If implemented,the 2008 North Richmond Amendment would provide the needed resources to the Agency to ensure that community revitalization and improvement goals are fully realized. Redevelopment activities are subject to future review and approval by the Board of Supervisors. The Agency uses an annual budgeting process that includes local community input to determine goals and priorities,as well as the projects and activities to be funded. Proposed Project and How Blight Will be Addressed: The Agency has identified a number of projects which would aid current revitalization efforts, and in particular, eliminate deficiencies in the existing infrastructure systems.Through these public investments the Agency hopes to further stimulate private sector investment in North Richmond. These projects include,but are not limited to,the following: Public Infrastructure and Facility Improvements • Partner with local property owners to finance an area-wide industrial drainage and infrastructure improvement plan • Complete Phase II(installation)of the North Richmond Truck Route Project • Provide neighborhood infrastructure improvements in the residential area • Complete the Re-Use.and Revitalization of the 224 unit Las Deltas Public Housing Development • Complete Phase II of the Third Street Streetscape Improvements • Implement the North Richmond Landscape and Greening Project • Implement the adopted North Richmond Specific Plan residential/mixed-use program; • Develop commercial and public amenities throughout the area,including parks,trails,and open space • Complete construction of.Signature Properties'NOVE subdivision • Complete Phase II of the North Richmond Town Center(GrovePoint) • Initiate Brownfield Remediation • Complete transition of 801 Chesley(MHS Development)from a light industrial use to a residential mix- use development • Complete community facility upgrades such as Shields/Reid Park, NR Ballfield, Project Pride,and the North Richmond Senior Center • Complete entitlements for the Ervin Development • Implement Rental and Home-Ownership Rehabilitation Program Community Improvement Programs Projects in the Community Improvement Program, such as, additional code enforcement support,a garbage remediation program, and a community group funding program for projects such as graffiti removal and vacant lot/yard cleanup,and the closure of unsafe trail gaps are all anticipated to indirectly reduce crime. Low-/Moderate-Affordable Housing Programs The Agency is required to set aside no less than twenty (20) percent of its annual revenue for the creation/preservation of affordable housing. These funds are to be used to increase, improve and preserve the supply of affordable housing in the community. Administration and Operations Revenues are needed to ensure that a sufficient level of staff support and equipment is available.to operate and maintain the North Richmond Program at an efficient level. C:\Documents and Settings\plam\Local settings\Temporary Internet Files\OLK62\NR Board RDA Order 5 20 08 draftl.doc ATTACHMENT B County Planning Commission Resolution #14-2008 RESOLUTION NO. 14-2008 A Resolution of the Planning Commission of the County of Contra Costa, State of California, recommending to the Board of Supervisors and the Redevelopment Agency of the County of Contra Cosh adoption of California Environmental Quality Act ("CEQA") Findings and adoption of the Sixth Amendment to the Redevelopment Plan for the North Richmond Redevelopment Project, and making various findings in connection with such recommendations. The Contra Costa County Planning Commission RESOLVES THAT: rhe Redevelopment Agency of the County of Contra Costa (the "Agency") has submitted to the Contra Costa County Planning Commission (the "Planning Commission") the proposed Sixth Aniendnrent to the Redevelopment .Plan for the North Richmond Redevelopment Project; and Part V of the Redevelopment Plan incorporates the General Plan land uses, land use. standards, development criteria, goals and objectives into the Redevelopment Plan; and The effects on the environment caused by implementation of the Plan Amendment are covered by the Negative Declaration; and Sections 33346, 33354.6(a), and 33453 of th.e Community Redevelopment Law (health and Safety Code, Section 33000 et sem.) provides,that the Planning Commission is to review the proposed Plan Amendment and make its report and recommendation thereon to the Agency and the Contra Costa County Board of Supervisors (the "Board"), including a determination whether the Plan Amendment conforms to the General Plan of the Contra Costa County. (the "General Plan"); and Section 65402 of the Government Code provides in part: "(a) I f a general plan or part thereof has been adopted, no real property shall be acquired by dedication,or otherwise for street, square, park or other public purposes, and no real property shall be disposed of, no street shall be vacated or abandoned, and no public building or stricture shall be constructed or authorized, if the adopted general plan or part thereof applies.thereto, until the location, purpose and extent of such acquisition or disposition, such street vacation 'or abandonment, or Such public building or structure have beensubmitted to and reported upon by the planning agency as to conformity.with said adopted general plan or part thereof...." "(c) A local agency shall not.acquire real property for any of the purposes specified in pararaph (a) nor dispose of any real property, nor construct or authorize a public building or structure, in any county or city, if such 120\24\S47584.1 1 county or city has adopted a general plan or part thereof and such general plan or part thereof is applicable. thereto, Until the location, purpose and extent of such acquisition, disposition, or such public huildinj or structure have been submitted to and reported upon by the planning agency having jurisdiction, as to conformity with said adopted general plan or part thereof...."; and The above required Planning Commission report and recommendation, including matters referred to in Health and Safety Code Sections 33346, 33354.6(x) and 33453 and Government Code Section 65402, are to be made to the Agency and the Board within thirty days of the . Planning- Commission's receipt of the Plan Amendment, for their consideration in acting on the adoption of the Plan Amendment; and The Planning Commission has reviewed the Contra Costa County General Plan, the proposed Plan Amendment, the Negative Declaration, and the staff report accompanying this Resolution pursuant to the California Environmental Quality Act, and the Report to the Board on the proposed Plan Amendment; and Part V. of the Redevelopment Plan incorporates the County's General Plan land uses and land use.standards into the Redevelopment Plan, and the Plan Amendment would facilitate redevelopment of the North Richmond Redevelopment Project in a manner consistent with the General Plan. NOW THEREFORE, THE PLANNING COMMISSION OF THE COUNTY OF CONTRA COSTA ;DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Findings. The Planning Commission hereby finds and determines that: (a) Ali required public notices have been given in connection with the acti.ons' set forth in this Resolution. (b) The proposed Negative Declaration is adequate for the purposes of compliance with the California Environmental Quality.Act and recommends that the Board of Supervisors adopt same. . (c) Pursuant to Sections 33346, 33354.6(a), and 33453 of the Community Redevelopment Law, the proposed Plan Amendment conforms to the General :Plan. (d) Pursuant to Section 65402 of the Government Code, with respect to public activities which may be undertaken pursuant to the Plan Amendment, and that are referred to in Section 65402, such activities and undertakings conform to the General .Plan. Section 2. Report and Recommendation. The Planning Commission recommends to the Board of Supervisors the approval and adoption of the Plan Amendment and in the event that prior to its adoption of the Plan Amendment, the.Board desires to:make any minor, technical, or 32K24`5475S4.1 �-a-o-off clarifying changes to the Plan Amendment, the Planning Commission hereby finds and determines that any such minor, technical, or clarifyinw chanes need not be referred to it for fUrther report and recommendation, and hereby waives Its report and recommendation undcr Section 33455 of the Cornnlunity lZedcvelopnlernt Craw concerning any such change; and Section Trarlsnlittal. The Planning Commission's Secretary shall transmit it copy of this Resolution to the Agency and the Board for consideration as part of the Agency's Report to the. Board pursuant to Section 333-52 of' the Community Redevelopment Law, and this Resolution shall be deemed the report and recommendation of the Planning Commission concerning the proposed Plan Amendment and contemplated public projects and activities thereunder; as required by applicable provisions or law. The instructions by the County Planning Co111mISSIon to prepare this resolution were given by motion of the County Planning Commission on Tuesday, April 22, 2005, by the following rote:. AYES: Commissioners Wong,Terrell, and Snyder NOES: Commissioner Murray ABSTAIN: None ABSENT: Commissioners Battalia. Clark and Gaddis BE IT FURTHER RESOLVED that the Secretary of the Countv.Planning Commission shall respectively sign and attest the certified copy of this resolution and deliver the same to the Board of Supervisors all in accordance with the Planning.Laws of the State of California. Michael Murray, Chair County Planning Commission County of Contra Costa State of California ATTEST: Dennis M. .Barry, Secretary .County Planning Commission County of Contra Costa State of California ,20',.24\547554 1 3 ATTACHMENT C Board and Agency Resolutions Certifying the Negative Declaration.. . THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY,CALIFORNIA Adopted this Order on May 20,2008,by the following vote: AYES: GIOIA,UILKEMA,P.IEPHO, I BONILLA&GLOVER NOES: NONE ABSENT: NONE ABSTAIN: NONE Resolution No.2008/340 SUBJECT: A Resolution of the Board of Supervisors,of Contra Costa County Making Findings and Approvals Required by the California Environmental Quality Actin Connection with the Negative Declaration Prepared for the Adoption of the Sixth Amendment to the Redevelopment Plan for the North.Richmond Redevelopment Project Area. The Contra Costa County Board of Supervisors RESOLVES THAT: The County of Contra Costa(the"Board"),serving as"lead agency"under the California Environmental Quality Act and the applicable state and local implementing guidelines ("CEQA"),has prepared a negative declaration('the"Negative Declaration")that has evaluated the proposed Sixth Amendment to the Redevelopment Plan for the North Richmond Redevelopment Project Area(the"Plan Amendment"); The Redevelopment.Agency of the Contra Costa,County(the"Agency")has served as a "responsible agency"under CEQA in connection with processing and consideration of the Negative Declaration. The Negative Declaration,a copy of which is oil file with the Clerk of the Board and Agency Secretary,has served as the CEQA documentation for consideration and approval of the Plan Amendment: The Board has reviewed the Negative Declaration and the proposed Plan Amendment; By staff report accompanying this Resolution and incorporated into this Resolution by this reference(the"Staff Report"),the Board has been provided with additional information upon which the findings and actions set firth in this Resolution are based,including any public comment received on the Negative Declaration. NOW THEREFORE BE IT RESOLVED that the Board certifies its review and consideration of the Negative Declaration,and any public comments received thereon,in accordance with CEQA,and states its intention that the Negative Declaration serve as the environmental documentation for the Board's consideration of the Plan Amendment in compliance with CEQA. BE IT FURTHER RESOLVED that the Board hereby finds and determines,based on the whole record before it(including the Negative Declaration,the initial study and any continents received)that there is no substantial evidence that the Plan Amendment will have a significant effect on the environment and that the Negative Declaration reflects the County's independent judgement and analysis. BE IT FURTHER RESOLVED that the Board approves and adopts the Negative Declaration. 321)',24\556408.1 1 BE IT FURTHER RESOLVED that the Clerk of the Board shall be the custodian of the record upon which the Board's findings and approvals herein are based; BE IT FURTHER RESOLVED that the Clerk of the Board is hereby authorized and directed to file a Notice of Determination in accordance with 14 Cal.Code of Regulations, Section 15075,evidencing the Board's use of the Negative Declaration in connection with its consideration of the Plan Amendment: BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon its adoption. Thereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: JOHN CULLEN, erk of the Board Of Sup isors and u dministrator By Deputy 320A24\556403.1 2. �da�/3 y0 '11-11'.RFIDEVL;LOPMENT AGENCY OF CONTRA COS'T'A COUNTY,CALIFORNIA Adopted this Order on May 20,2008,by the following vote: AYES: G101A.UILKEMA,I'IEPFIO, BONILLA&GLOVFR NOES: NONE ABSENT: NONE ABSTAIN: NONE Resolution No.2008/341 SUBJECT: Resolution of the Contra Costa County Redevelopment Agency Making Findings and Approvals required by the California Environmental Quality Act in Connection with tfie Negative Declaration Prepared (or the Adoption of the Sixth Amendment to the Redevelopment Plan for the North Richmond Redevelopment Project Area 'file Contra Costa County Redevelopment Agency RESOLVES TLIAT: 'Elie County of Contra Costa(the"County"),serving as"lead agency"under the California Environmental Quality Act("CEQA")and the applicable state and local implementing guidelines,has prepared a negative declaration(the"Negative Declaration")that has evaluated the Sixth Amendment to the Redevelopment flan for the North Richmond Redevelopment Project Area(the"Plan Amendment"): The Redevelopment Agency of the Contra Costa County(the"Agency")has served as a "responsible agency"under CEQA in connection with the processing and consideration of the Negative Declaration; The Negative Declaration,a copy of which is on file with the Clerk of the Board and Agency Secretary,has served as the CEQA documentation for consideration and approval of the Plan Amendment,and For the Agency's subsequent actions to implement the Plan Amendment; The Agency has reviewed the Negative Declaration and the Proposed Plan Amendment; By staff rcl,ort accompanying this Resolution and incorporated into this Resolution by this reference(the"Staff Report").the Agency has been provided with additional information upon which the findings and actions set forth in this Resolution are based; NOW TIiEREFORE BE IT RESOLVED that the Agency certifies its review and consideration of the Negative Declaration,and any public coninients received thereon,in accordance with CEQA. BE IT FURTIIER RESOLVED that the Agency hereby finds and determines that the Negative Declaration adequately addresses the environmental issues pertaining to the Plan Amendment and property concludes that the Plan Amendment will not have a significant effect on the environment.. BE IT FURTHER RESOLVED that the Agency approves and adopts the Negative Declaration. BE IT FURTHER RESOLVED that the Agency Executive Director is hereby authorized and directed to file a Notice of Determination in accordance with 14 Cal.Code of Regulations, Section 15075,evidencing the Agency's use of the Negative Declaration in connection with the Plan Amendment. BE IT FURTHER RESOLVED that this Resolution shall lake immediate effect upon its "option. I hereby ceriiiy that this i;a true and correct copy of an actiorn tZn and entered on the 320%2d,556420.1 I minutes of the BoarrjQj Supervisors on the date shown. ATTESTED JOHN UL L . lerk of the Boar of Su sors a nistrator B e ATTACHMENT D ,Agency Resolution Approving the Amended Five-Year Implmentation Plan C:\Documents and Settings\plam\Local Settings\Temporary Internet Files\OLK62\IVR Board RDA Order 5 20 08 dr.ftl.doc - V,/ -5-,?,1-C2 THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY,CALIFORNIA Adopted this Order on May 20,2008,by the following vote: AYES: GIOIA,UILKEMA,PIEPHO, !BONILLA&GLOVER NOES:•NO\TE ABSENT: NONE ABSTAIN: NONE Resolution No.2008/342 SUBJECT: A Resolution of the Redevelopment Agency of Contra Costa County Approving an Amended Five-Year Implementation Plan for the North Richmond. Redevelopment Project The.Contra Costa County Redevelopment Agency RESOLVES THAT: The Board of Supervisors(the"Board")of the County of Contra Costa has adopted a redevelopment plan for,and the Redevelopment Agency of the County of Contra Costa(the "Agency"),is implementing the redevelopment program for the North Richmond redevelopment project area(the"Project Area"),all in confornnan'ce with the requirements of the California Community Redevelopment Law(Health and Safety Code Section 33000 et seq.;the"CRL"); and On January 17,2006,the Agency adopted:the current fivC,year implementation plan for the Project Area covering the period from 2004/2005 through 2008%2009,in accordance with Health.and Safety Code Section 33490(the"Current Implementation Plan");and The Agency has now prepared and submitted for the Board's consideration an Amendment to the Redevelopment Plan for the Ngrth Richmond Redevelopment Project Area (the"Plan Amendment");and Health and Safety Code Section 33352(c)(as made applicable to the processing of the Plan Amendment by Health and Safety Code Sections 33354.6(a)and 33457.1)and Health and Safety Code 33451.5(c)(7)require that the Agency prepare an amendment to the Agency's implementation plan in connection with the processing and consideration of the Plan Amendment;and The Plan Amendment,if adopted by the Board,would provide additional financial resources to the Agency for the Project Area;and. To comply with the requirements of Health and Safcty Code Sections 33352(c),33451.5 and 33490,the Agency has prepared an amendment to the implementation plan for the Project Area(the"Amended Implementation Plan"),which amends the Current Implementation Plan, and is intended to take effect if and when the Board adopts the Plan Amendment and the Plan Amendment becomes effective;and A copy of the Amended Implementation Plan is set forth as Section C and Appendix A of the Report to the Board for the 2008 Amendment to the North Richmond Redevelopment Project Area,dated May 7,2008,and is incorporated in this Resolution bylhis reference;and On May 0,2008,the Agency conducted and concluded a duly noticed public hearing on the mid-tern review of the Current Implementation Plan and the Amended Implementation Plan in accordance with Health and Safety Code Section 33490;and The Agency finds that the Amended Implementation Plan,with any modifications as considered and approved in connection with the public hearing,constitutes a statement of the 3211124\556421.1 Agency's goals and objectives for the Project Area,a summary of the specific programs and estimated expenditures proposed to be made by the Agency during the applicable five-year planning period,including programs contemplated as part of the Plan Amendment,and all explanation of how the goals and objectives,projects,and expenditures will eliminate blight within the Project Area and implement the affordable housing requirements of the CRL;and Pursuant to Health and Safety Code Section 33490,.approval of the Amended Implementation Plan does not constitute a project for purposes of tfie California Environmental Quality Act("CEQA"),and therefore no environmental documentation is required pursuant to CEQA. NOW,THEREFORE,BE IT RESOLVED,that the Agency hereby approves and adopts the Amended implementation Plan for.the Project Area,and directs the Agency Secretary to maintain on the a copy of the Amended Implementation Plan in the form hereby approved by the Agency. The Amended Implementation Plan shall be come effective if and when the Board adopts the Plan Amendment and the Plan Amendment becomes effective in accordance with the CR.L. BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon its adoption. hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: JOHN CULLEN,Clerk of the Board Of Supervisors and County Administrator By", Deputy 320\24'\.556421.1 .2 .7J / ATTACHMENT E Ordinance C:\Documpnts and Settings\plam\Local Settings\Temporary Internet Files\OLY.62\NR Board ADA order 5 20 os draftl.doc Recording Requested by and When Recorded Return to: Contra Costa County Redevelopment Agency 2530 Arnold Drive, Suite 190 Martinez, CA 94553 Attn: Redevelopment Director NO RECORDING FEE PURSUANT TO GOVERNMENT CODE SECTION 27383 ORDINANCE NO. 2008-20 AN ORDINANCE OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA APPROVING AND ADOPTING THE SIXTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE NORTH RICHMOND REDEVELOPMENT PROJECT AREA, AND MAKING CERTAIN FINDINGS PURSUANT TO THE COMMUNITY REDEVELOPMENT LAW OF THE STATE OF CALIFORNIA The Board of Supervisors of the County of Contra Costa, State of California (the "Board"), ordains as follows: SECTION I. Recitals and Background Information. Pursuant to the California Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) (the "Redevelopment Law"), the Board adopted the Redevelopment Plan for the North Richmond Redevelopment Project Area by Ordinance No. 87-50, adopted on July 14, 1987, as>amendcd by Ordinance No. 94-63, adopted on December 6, 1994, as amended by Ordinance No. 99-06, adopted on February 23, 1999, as amended by Ordinance No. 99-31, adopted on June 8, 1999, as further amended by Ordinance No. 2006-35, adopted on July 18, 2006, and as further amended by Ordinance No. 2007-25, adopted on June 5, 2007 (the "Plan"). The Plan established the North Richmond Project Area(the "Project Area"), within the County of Contra Costa(the "County") Pursuant to the Community Redevelopment Law of the State of California (the "Redevelopment Law"), the Redevelopment Agency of the County of Contra Costa (the "Agency"), has prepared and submitted to the Board for review and consideration of adoption a sixth amendment to the Plan (the "Plan Amendment") ihat would (1) increase the limit on the amount of bonds secured by a pledge of tax increment from the Project Area that may be outstanding at one time; and (2) increase the limit on the total amount of tax increment that the Agency may receive over the term of the Plan. A copy of the Plan Amendment is on file with the Clerk of the Board and is incorporated in this Ordinance by this reference. 320\24\556999.1 l The Plan Amendment is necessary to provide the County, the Agency, and the community with additional financial resources to complete the program of redevelopment initiated under the Plan in order to remove remaining blighting conditions in the Project Area. The additional financial capacity will enable the Agency to promote the revitalization of the Project Area through stimulation of economic development activities; support the overall revitalization and improvement of the Project Area through a wide-range of redevelopment activities, including blight removal,building rehabilitation,public infrastructure improvement, economic development; and promote the development,rehabilitation, and preservation of affordable housing in and of benefit to the Project Area and its residents. The Project Area is situated in the County, and is more particularly described in Exhibit A and Exhibit B of the Plan Amendment. The boundaries of the.Project Area are not modified by the Plan Amendment and remain the same as those established by the Plan. The Agency has made studies of the impact of the Plan Amendment on the physical condition of structures, environmental influences, land use, and social, economic, and cultural conditions in the Project Area, and has determined that the program of redevelopment to be continued and completed pursuant to the Plan Amendment will promote the proper redevelopment of the Project Area in accordance with the goals,objectives and policies of the County of Contra Costa's General Plan (the "General Plan"), the Plan, and the Redevelopment Law. By resolution of April 22, 2008, the Planning Commission of the County(the "Planning Commission"), which is the duly designated and acting'official planning body of the County,has submitted to the Board and the Agency its report and recommendation (the "Planning Commission Report")regarding the Plan Amendment in which, among other matters, it recommends adoption of the Plan Amendment, and finds that the Plan Amendment conforms to the General Plan. The North Richmond Municipal Advisory Council conducted a community meeting on the Plan Amendment on May 13, 2008, and has submitted its report and recommendation in favor of adoption of the Plan Amendment. The Agency has prepared and submitted and the Board has reviewed and considered a Report to the Board on the Plan Amendment dated May 7, 2008 (the "Report"), as may be supplemented by a Supplement to the Report to the Board on the Plan Amendment (the "Report Supplement" and, together with the Report, the "Plan Amendment Report")pursuant to Section 33352 of the Redevelopment Law, a copy of which is on file with'the Clerk of the Board. The Plan Amendment Report is hereby incorporated in this Ordinance by this reference. On May 20, 2008; the:Board and the Agency conducted a joint public hearing on the Plan Amendment and related documents, which was duly noticed in accordance with the requirements of the Redevelopment Law. The County and Agency staff have prepared and submitted to the Planning Commission and the Board for review a Negative Declaration which has served as the documentation for review of the environmental impacts of the proposed Plan Amendment.. The Negative 320\24\556999.1 2 Declaration was prepared pursuant to the California Environmental Quality Act of 1970, as amended ("CEQA"), and the Official State Guidelines as amended for the implementation of CEQA. A copy of the Negative Declaration is on file with the Clerk of the Board. The Negative Declaration is hereby incorporated in this Ordinance by this reference. The Planning Commission by Resolution-on April 22, 2008 found the Negative Declaration adequate for the purposes of CEQA, and recommended adoption. Prior to introduction of this Ordinance, by resolution dated May 20, 2008, the Board and the Agency approved and adopted the Negative Declaration for use in consideration of adoption of the Plan . Amendment. Prior to introduction of this Ordinance,by resolution dated May 20, 2008 (the "Amended Implementation Plan Resolution"), the Agency adopted an amended five-year implementation plan for the Project Area (the "Amended Implementation Plan") in accordance with Sections 33451.5(c)(7) and 33490 of the.Redevelopment Law. SECTION 11. Findings and Determinations. In accordance with Sections 33354.6(b),. 33367 and 33457.1 of the Redevelopment Law, and based upon the evidence contained in the Plan Amendment, the Planning, Commission Report, the Plan Amendment Report, the Negative Declaration, the Amended Implementation Plan,.and other documents prepared in the Plan Amendment adoption process and on evidence presented at the public hearings•of the Board, the Agency, and the Planning Commission on the Plan Amendment and related documents (collectively, the "Record"), it is hereby found and detennined that: a. The above recitals and background information are true and correct. b. In connection with the initial adoption of the Plan in 1987 and based on information and analysis contained in the Report originally submitted with the Plan, the Board found and determined pursuant to Ordinance No. 87-50 that the Project Area was a blighted area, the redevelopment of which was necessary to effectuate the public purposes declared in, and the Project Area therefore qualified as an eligible area under, the Redevelopment Law. Significant blight remains in the'Project Area at the time of adoption of the Plan Amendment, and such blight cannot be eliminated without the establishment of additional debt and the increase in the limitation on the number of dollars to be allocated to the Agency pursuant to the Plan Amendment. This finding is based on information and analysis set forth in the Record, with particular reference to Sections A, B, D, and E of the Plan Amendment Report, and as briefly summarized below. The Project Area continues to exhibit conditions of physical blight and economic blight recognized under current Redevelopment Law standards, as detailed in Section B of the Plan Amendment Report. The effects of the identified remaining blighting conditions are pervasive throughout the Project Area. As shown throughout Section B of the Plan Amendment Report,the Project Area suffers from buildings in which it is unsafe or unhealthy to persons to live or work such as deteriorated and dilapidated buildings and buildings with serious code violations. In addition, factors that prevent the viable use of buildings or lots are evident, such as defective and obsolete design. Economic blighting conditions such as depreciated or stagnant property values, a high business vacancy rate, and high crime rate, are equally prevalent in the Project Area. These 320\24\556999.1 3 characteristics inhibit the viability of individual affected lots and structures, as well as the economic vitality of the entire Project Area. The remaining significant blighting conditions found in the Project Area are not new, but the product of decades of social and economic struggle: The private sector has had ample opportunity to improve tile area through parcel assembly or structural rehabilitation, but has not. The physical and economic conditions continue to deter private investment. Correspondingly, the projects identified in-the-Plan Amendment Report to eliminate remaining blighting conditions require millions of dollars of investment, and the County.would not be able to apportion these resources to the Project Area without redevelopment. Section D of the Plan Amendment Report offers additional information and analysis about the historic and anticipated future inability of the private sector and government to eliminate the documented remaining blighting conditions without the continuing availability of redevelopment resources that can only be made possible through adoption and implementation of the proposed Plan Amendment. C. The time,limitations and the limitations on the number of tax increment dollars to be allocated to the Agency that are contained in the Plan Amendment are reasonably related to the proposed projects to.'be implemented in the Project Area and to the ability of the Agency to elin.iinate blight within the Project Area. This finding is based on information and analysis set forth in the Record, with particular reference to Sections A, B, D, and E of the Plan Amendment . Report. Section A of the.Plan Amendment Report sets forth a series of additional redevelopment projects and activities (the "Redevelopment Projects") that are directly linked to the elimination of the identified remaining blighting conditions in the Project Area(as documented in Section B of the Plan Amendment Report). Because the Agency is about to reach the cap on receipt of tax . increment revenue.under the Plan, the proposed blight-eliminating Redevelopment Projects can not be undertaken without the proposed increase.in the limits (or "caps") on tax increment receipts and outstanding bonded indebtedness under the Plan Amendment. As further detailed in Sections D and E of the.Plan Amendment Report, the increased caps on receipt of tax increment and issuance of bonded indebtedness will generate sufficient additional revenue to enable the Agency to undertake a significant portion of the Redevelopment Projects. d. The Plan Amendment would redevelop the Project Area in conformity with the Redevelopment Law and would be in the interest of the public peace, health, safety, and welfare; and the implementation of the Plan Amendment,would promote the public peace, health, safety and welfare of the County and would effectuate the purposes and policy of the Redevelopment Law. This finding is based on information and analysis set forth in the Record, with particular reference to Sections A, B,.C, D, E, and M of the Plan Amendment Report. e. The Plan Amendment conforms to the General Plan including,but not limited to, the Housing Element of the General Plan. This finding is based on findings, information and analysis set forth in the.Record, with particular reference to Sections H, and J of the Plan Amendment Report; and the Planning Agency Report. 320\24\556999.1 4 f. The adoption and implementation of the Plan Amendment is economically sound and feasible. This finding is based on information and analysis set forth in the Record, with particular reference to Section E of the Plan Amendment Report. g. The Agency has a feasible method or plan for the relocation of families and persons which may be displaced from the Project Area if the Plan Amendment may result in the temporary or penrnanent'displacement of any occupants of housing facilities in the Project Area. This finding is based on information and analysis set forth in the Record, with particular reference to Sections F and M and Appendix B of the Plan Amendment Report. h. There are, or shall be provided, in the Project Arca or in other 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 the families and persons who may be displaced from the Project Area, decent., safe and sanitary dwellingsequal in number to the number of, and available to, such displaced families and persons and reasonably accessible to their places of employment. . Families and persons shall not be displaced prior to the adoption of a relocation plan pursuant to Sections 33411 and 33411.1 the Redevelopment Law. Dwelling units housing persons and families of low or moderate income shall not be removed or destroyed prior to the adoption of a replacement housing plan pursuant to Sections 33334.5; 33413, and 33413.5 of the Redevelopment Law. These findings are based on information and analysis set forth in the Record, with particular reference to Sections F, M and Appendix B of the Plan Amendment Report. i. Pursuant.to Section 33367(e) of the Redevelopment Law, the Board is satisfied that permanent housing'facilities will be available within three years from the time occupants of the Project Area, if any, are displaced and that pending the development of such facilities, there wil I be available to such displaced occupants adequate temporary housing facilities at rents comparable to those in the community at the time of their displacement. This finding is based on. information and analysis set forth in the Record,.with particular reference to Sections F, M and Appendix B of the Plan'Amendment Report. j. The Project Area contains approximately 1,550 acres and 2,914 contiguous parcels. The Project Area does not contain any noncontiguous areas; therefore,the finding that all noncontiguous areas of the Project Area are blighted or necessary for effective redevelopment, and are:not included in the Project Area for the purpose of obtaining tax increment revenues from the area pursuant to Health and Safety Section 33670, is not relevant. This finding is based on information.and analysis set forth in the Record, with particular reference to Sections A.and B of the Plan Amendment Report. k. The 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 Project Area of which they are a part;and these lands, buildings or improvements are not included for the purpose of obtaining the allocation of tax increment revenues from such area pursuant to Health and Safety Code Section 33670 without other substantial justification for their inclusion. This finding is based on information and analysis more fully set forth in Sections A and B of the Plan Amendment Report. 321\24\556999.1 5 1. In order to implement and facilitate the effectuation of the Plan Amendment hereby approved and adopted, certain official action must be taken by this Board with reference to, among other things, the establishment of new street patterns,the location of sewer and water mains, lighting and utility lines and other public facilities and other public action, and accordingly,this Board hereby: I. pledges its cooperation in helping to implement the Plan Amendment; 2. requests the various officials, departments; boards, and agencies of the County having administrative responsibilities in the Project Area likewise to cooperate to such end and to exercise their respective functions and powers in a manner consistent with the Plan Amendment: 3. stands ready to consider and take appropriate action upon proposals and measures designed to effectuate'the Plan Amendment; and 4. intends to undertake and complete any proceedings necessary to be implemented by the community under the provisions of the Plan Amendment. m. The elimination of blight and the redevelopment of the Project Area could not reasonably be expected to be accomplished by private enterprise acting alone without the aid and assistance of the Agency. This finding is based on information and analysis set forth.in the Record, with particular reference to Sections A, B, D, and E of the Plan Amendment Report. As detailed in Sections B and D of the Plan Amendment Report, private sector activity and investment in the Project Area has seriously lagged activity and'investment elsewhere in the vicinity of the Project Area, and the documented needs for elimination of blight far surpass the reasonably foreseeable levels of private investment, leaving redevelopment as the only viable alternative to help fill the investment shortfall to overcome the documented remaining adverse physical and economic conditions.in the Project Area. n. The Plan Amendment does not alter the Agency's power of eminent domain (condemnation) set forth in the Plan. On ,Tune 5,2007 the Agency adopted Ordinance No. 2007- 25 which contained a description of the Agency's program for the acquisition of real property using eminent domain. : The Agency at that time also recorded on all properties within the Project Area a new statement of institution containing a general description of the Plan's eminent domain provisions. o. The development of the public improvements set forth in the Plan Amendment are of benefit to the Project Area and to the immediate neighborhood in which the Project is located;. no. other reasonable means of financing such improvements are available to the community; and the payment of funds for the acquisition of land for and the cost of such improvements will assist in eliminating one or more blighting conditions in the Project Area or provide housing for low- or moderate-income persons, and is consistent with the Agency's Amended Implementation Plan. adopted pursuant to the Amended Implementation Plan Resolution and Sections 33352(c), 33451.5(c)(7) and 33490 of the Redevelopment Law. Based on these findings, the Agency is 320Q4\556999.1 6 authorized to pay all or a part of the value of the land for and the cost of the installation and construction of the public improvements set forth in the Plan Amendment, as permitted by Section 33445 of the Redevelopment Law. These findings are based on information and analysis more fully.set forth in Sections A, B, C,.D, and E'of the Plan Amendment Report. p. The Project Area is predominantly urbanized as defined by subdivision (b) of Section 33320.1 of the Redevelopment Law. This finding was initially made in connection with adoption of Ordinance No. 87-50 adopting the Plan, based on information and analysis fully set forth in original Report that the Project Area was predominantly urbanized at the time of initial adoption of the Plan in 1987. This finding is further supported by the information and analysis fully set forth in Section B of the Plan Amendment Report documenting that the Project Area remains predominantly urbanized within the current Redevelopment Law definition. q. The implementation of the Plan Amendment will improve or alleviate the physical and economic conditions of blight in the Project Area, as described in the Plan Amendment Report. This finding is based on information and analysis set forth in the Record, with particular reference to Sections'A, B, D and E of the Plan Amendment Report, and briefly summarized as follows. As detailed in Sections A and B of the Plan Amendment Report significant blight remains in the Project Area that cannot be addressed without the additional financial and legal tools.made possible by the Plan Amendment. For instance, as explained in Section E of the Plan Amendment Report, the increased cap on tax increment revenue made possible by the Plan Amendment will enable the funding of a significant portion of the Redevelopment Projects. In turn, the Redevelopment Projects are expressly designed to improve or alleviate the identified remaining physical and economic blight conditions in the manner described in Sections A, B, D and E. SECTION III. ; Overrulin 7 ok. f Objections. All written and oral objections to the Plan Amendment are hereby overruled. . SECTION IV. Approval of Plan Amendment. It is hereby found that the amendments to the Plan embodied in the Plan Amendment are necessary and desirable. The Plan, all amendments and restatements and all ordinances adopting or previously amending the Plan are hereby amended in accordance with the Plan Amendment. The Plan Amendment is hereby adopted and approved and the Plan, as amended by the Plan Amendment, is designated as the official redevelopment plan for the Project Area. The Plan Amendment, consisting of two pages and two exhibits, is incorporated in this Ordinance by reference and made a part of the Ordinance as if set out in full in the Ordinance. The Clerk of the Board of the County is hereby directed to file a copy of the Plan Amendment with the minutes of this meeting. The Agency is vested with the continuing responsibility to implement the Redevelopment Plan, as arnended by the Plan Amendment. SECTION V. Severability. if any provision, section, subsection, subdivision, sentence, clause or phrase of this Ordinance or the Plan Amendment is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portion or portions of the Ordinance or the Plan Amendment. 320\24\556999.1 7 SECTION VI. Recordation. The Executive Director of the Agency is hereby directed to record the Plan Amendment and related documents incompliance with the provisions of Sections 33373 and 33456 of the Redevelopment Law and Government Code Section 27295. SECTION V11. Publication, Effectiveness. This Ordinance or a summary thereof shall be published once in the Contra Costa Times, a newspaper of general circulation printed and published in Contra Costa County and circulated.in Contra Costa County, within fifteen (15) days from and after its adoption. This Ordinance shall take effect and be enforced thirty(30) days after its adoption. PASSED on May 2011', 2008, by the following vote: AYES: GIOIA,UILhEMA,PIEPHO, BONILLA&GLOVER NOES: NONE ABSENT: NONE ABSTAIN: NONE Board Chair ATTEST: John Cullen:Clerk of the Board of Supervisors and County Administrator B yt,, eputy 320'\24\550999.1 8 1 .,:, .. 7 CONTRA COSTA COUNTY RE=DEVELOPMENT AGENCY 2530 Arnold Drive, Martinez, CA 94553 Report to the Board of Supervisors for the Amended Redevelopment Plan for the North Richmond Redevelopment Project May 7, 2008 Report is voluminous. For a copy contact Clerk of the Board at(925) 335-1900. o RSG INTELLIGENT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC. T 714 541 4585 309 WESI 41H STREET. F 714 5411175 SANTA.ANA,CALIFORNIA E INFOZ WEBRSG.COM 92701.4502 W E BRSG.COM i / Jr- as -OR, CONTRA COSTA COUNTY REDEVELOPMENT AGENCY ,xl 2530 Arnold Drive, Martinez, CA 94553 s. r: .',�A I Report to the Board of Supervisors for the Amended Redevelopment Plan for the Forth Richmond. Redevelopment Project -- - May 7, 2008 Report is voluminous. For a copy contact ._Clerk.of the,Board at (925) 335-1900. O FSG INTELLIGENT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC. T 714 541 4585 309 WEST 4TH STREET F 714 541 1175 SANTA ANA.CALIFORNIA E INFO@WEBRSG.COM 92701.4502 WEBRSG.COM Table of Contents INTRODUCTION Background....m...................................................................................................... The Plan A ........ ........................................................... .i.i.i Plan Amendment Process .......................................................................:.................v Contentsof this Report ...................................................................................................vi SECTION A Reasons for the Amendment............................................................................................1 Reasons for Amending the Redevelopment Plan .......................................................1 ProjectArea Location .................................................................................................2 Proposed Projects and How Blight Will Be Addressed................................................5 Summary..................................................................................................................13 SECTION B Description of the Physical and Economic Conditions Existing in the Project Area.........14 Study Approach and Methodology.................................................................................14 BlightingConditions ..................:....................................................................................15 Urbanization ....................................................................:........................................15 PhysicalBlight..........................................................................................................15 EconomicBlight........:...............................................................................................16 Physical Blighting Conditions in the Project Area......................................................17 Economic Blighting Conditions in the Project Area.........................................................57 Summary of Physical and Economic Blighting Conditions..............................................69 SECTION C Five-Year Implementation Plan......................................................................................72 SECTION D Explanation of Why the Elimination of Blight In the Project Area Cannot Be Accomplished by Private Enterprise Acting Alone or Through Other Financing Alternatives Other Than Tax Increment Financing ...............................73 Reasons for Continuing To Include Tax Increment Financing...................................73 Relationship Between the Need to Amend the Financial Limits and the Cost of the Continuing Program of Redevelopment............................................75 Why Other Governmental Funding Sources are Inadequate to Eliminate Blight .......76 Why Private Enterprise Alone Cannot Eliminate Blight .............................................76 Reasons for Continued Use of Tax Increment....................................................:.....78 SECTION E Proposed Method of Financing, including the Economic Feasibility of the Amendment.........................................................................79 ProgramCosts .........................................................................................................79 SECTION F Methodof Relocation.....................................................................................................88 SECTION G Analysis of the Preliminary Plan.....................................................................................89 RSG Table of Contents SECTION H Report of the Planning Commission...............................................................................90 SECTION I Report and Recommendation of the Project Area Committee .......................................91 SECTION J Statement of Conformance with the General Plan..........................................................92 SECTION K Environmental Documentation .......................................................................................93 SECTION L Report of the County Fiscal Officer.................................................................................94 SECTION M Neighborhood Impact Report.........................................................................................95 SECTION N Summary of Agency's Consultations with Affected Taxing Entities and Response to Said Entities'-Concerns Regarding the Plan .....................................102 APPENDIX -A Amended Five-Year Implementation Plan..........................................................:..........103 APPENDIX B Adopted Relocation Policies.........................................................................................104 APPENDIX C 1987 Analysis of Preliminary Plan & Original Preliminary Plan.....................................105 APPENDIX D NegativeDeclaration....................................................................................................106 APPENDIX E 1987 Neighborhood Impact Report..............................................................................107 Q RSG ■ INTRODUCTION � BACKGROUND The Contra Costa County Board of Supervisors ("Board"), as the governing body of the Contra Costa County Redevelopment Agency ("Agency"), is responsible for implementing the Redevelopment Plan for the North Richmond Redevelopment Project ("Redevelopment Plan") The Redevelopment Plan was adopted for the purpose of establishing the legal and financial authority for the Board to undertake a program of redevelopment (the "Redevelopment Program") in accordance with California Community Redevelopment Law ("CRL") for the elimination of physical and economic blighting conditions within the boundaries of the North Richmond Redevelopment Project Area ("Project Area") within the area of the County of Contra Costa ("County")', as further described below. On July 14, 1987, the Board .approved the Redevelopment Plan by the adoption of Ordinance No. 87-50. The Redevelopment Plan was subsequently amended on December 6, 1994, by Ordinance No. 94-63, to set time:periods consistent with the AB 1290 changes to the CRL. On February 23, 1999, the Board.adopted Ordinance No. 99-06, pursuant to AB 1342, which allowed the Agency to extend the time period to receive tax increment by an additional ten years, to keep consistent with changes made_in the adoption of AB 1290 in 1993. The Redevelopment Plan was further amended by Ordinance No. 99-31, which was adopted by the Board on June 8, 1999 in order to extend the time period that the Agency may commence eminent domain proceedings. Subsequently,.the Board adopted Ordinance No. 2006-35 on July 18, 2006, pursuant to SB 211 and SB 1045 for the purpose of extending the Redevelopment Plan effectiveness, the receipt and collection of tax increment and time limits for an additional year and to remove the debt establishment time limit. On June 5, 2007, the Board adopted Ordinance 2007-25 which, pursuant to Section 33342.7 of the CRL, stated the Agency's program to acquire real property by eminent domain. The Plan Amendment The proposed 2008 North Richmond Amendment will enable the Agency to more effectively implement redevelopment projects and activities eliminating blighting conditions within the Project Area. The Redevelopment Plan's current cumulative tax increment cap is $60 million and the bonded indebtedness limit 'is $30 million. The 2008 North Richmond Amendment proposes to increase these capsto $712 and $270 million, respectively. Table i-1 summarizes the existing time and financial limitations of the Redevelopment Plan and Table i-2 summarizes the Redevelopment Plan limitations as proposed by the 2008 North Richmond Amendment. The proposed amendment to the Redevelopment Plan ("2008 North Richmond Amendment") will, if adopted, accomplish the following: 1) Increase the total dollar limit on the amount of cumulative tax increment revenues the Project Area may receive; and 2) Increase the dollar limit on bonded indebtedness that can be outstanding at any one time. (P RSG REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area The proposed 2008 North Richmond Amendment will enable the Agency to effectively implement redevelopment projects and activities to eliminate blighting conditions in the Project Area, including the implementation of proposed projects pursued by the Agency. As identified in the Redevelopment Plan, the current cumulative tax increment cap is $60 million and the bonded indebtedness limit is $30 million. The 2008 North Richmond Amendment proposes to increase those limits to$712 million and $270 million, respectively. Table i-1 summarizes the existing time and financial limitations of the Redevelopment Plan. and Table i-2 summarizes the Redevelopment Plan limitations as proposed by the 2008 North Richmond Amendment. NORTH RICHMOND REDEVELOPMENT PROJECT AREA TABLE i-1 EXISTING PLAN LIMITS Time Limits Indebtedness Limit Eliminated Plan Effectiveness 7/14/2028 Debt Repayment 7/14/2038 Financial Limits Bond Debt Limit $30,000,000 Cummulative Tax Inc. $60,000,000 Source:Contra Costa County Redevelopment Agency NORTH RICHMOND REDEVELOPMENT PROJECT AREA TABLE i-2 PROPOSED PLAN LIMITS Time Limits Indebtedness Limit Eliminated Plan Effectiveness 7/14/2028 Debt Repayment 7/14/2038 Financial Limits Bond Debt Limit $270,000,000 Cummulative Tax Inc. $712,000,000 Source:Contra Costa County Redevelopment Agency Receipt of additional tax increment revenue and increased bonding capacity is needed to provide additional .capital to implement blight eliminating projects. These improvement projects include the upgrading and improving of public infrastructure, revitalization of commercial and industrial enterprises, and increasing, improving, and preserving the Project Area's supply of affordable housing. All redevelopment activities will be subject to future review and approval by the Agency, Board, and/or other agencies, committees, and interested parties as appropriate or required by the CRL. O RSG iv REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Plan Amendment Process This Report to the Board of Supervisors ("Report") is one of several documents the CRL requires the Agency to prepare during the amendment process, and is intended to provide the decision makers with comprehensive information concerning the proposed 2008 North Richmond Amendment. Section 33354.6 (a) of the CRL sets forth that a redevelopment plan amendment which increases financing limits or adds significant additional capital.improvement projects must be conducted under the "plan adoption process Section 33354.6 (b) clarifies that increasing the limitation -on the number of dollars allocated to an agency requires that amendment documents (e.g., the Preliminary Report, and this Report must contain a description and identification of remaining blight in the project area. Furthermore, CRL Sections 33450 through 33458 permit the.Agency to recommend amendments to existing redevelopment plans, subject to: 1) the preparation of documents by the Agency to substantiate the need for the amendment(s); 2) the convening of a joint public hearing of the Board of Supervisors and the Agency on the proposed amendmept(s); and 3) consideration and adoption of an ordinance by the Board of Supervisors approving such amendment(s). This Agency Report to the Board of Supervisors contains all of the elements required by Section 33352 of the CRL, to the extent required.by Section 33457.1 of the CRL. Other Key Documents The Agency has also prepared other key documents in connection with preparation of the 2008 North Richmond Amendment. On February 14, 2008 the Agency forwarded to all taxing entities the following: 1) Statement of Preparation of the 2008 North Richmond Amendment, 2) the 2008 North Richmond Plan Amendment, 3) the Preliminary Report (on CD), 4) the Notice of Public Review and Intent to adopt a proposed Negative Declaration, and 5)the Initial Study/Negative Declaration for the 2008 North Richmond Amendment for review and consultation. The results of taxing agencies consultations are described in Section N of this Report. On March 24, 2008 the Agency sent to the Department of Finance and the Department of Housing and Community Development notice of a public hearing and a Report on Blight detailing the requirements,set forth in CRL Section 33451.5. An associated Negative Declaration for the Amended Plan was circulated for public comment on February 14, 2008 in accordance with the requirements of the California Environmental Quality Act. The comment period on the Negative Declaration closed on March 19, 2008. A Final Negative Declaration, including responses to all comments received, will be considered at the joint publiclhearing. Joint Public Hearing This Report, which has been prepared by the Agency pursuant to Section 33352 of the CRL, the Final Negative Declaration (incorporating responses to comments), and the final Amended Plan will be presented to the Agency and the Board of Supervisors at the joint public hearing, scheduled for May 20, 2008'. All North Richmond Project Area property owners, residents, business owners, and affected taxing agencies will be sent notices of the RSG. v REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area public hearing by mail on or before April 15, 2008. In addition, public notices were published in local newspapers, all consistent with the requirements of the CRL. CONTENTS OF THIS REPORT The contents of this Report are presented in fourteen sections, which generally correspond to the subdivisions presented in Section 33352 of the CRL. The sections are as follows: Section A. Reasons for the Amendment Section B. Description of the Physical and Economic Conditions Existing in the Project Area Section C. Five-Year Implementation Plan Section D. Explanation of Why the Elimination of Blight in the Project Area Cannot be Accomplished by Private Enterprise Acting Alone or Through Other Financing Alternatives Other Than Tax Increment Financing Section E. Proposed Method of Financing Including the Economic Feasibility of the Amendment Section F. Method of Relocation Section G. Analysis of the Preliminary Plan Section H. Report of the Planning Commission Section I. Report and Recommendation of the Project Area Committee Section J. Statement of Conformance to the General Plan Section K. Environmental Documentation Section L. Report of the County Fiscal Officer Section M. Neighborhood Impact Report Section N. Summary of the Agency's Consultations with Affected Taxing Entities and a Response to Said Entities' Concerns Regarding the Plan RSG vi SECTION A Reasons for the Amendment ' REASONS FOR AMENDING THE REDEVELOPMENT PLAN Since its 1987 adoption, progress has been made in revitalizing the Project Area pursuant to Redevelopment Plan. The Agency has made progress in eliminating blight throughout the Project Area by actively pursuing revitalization opportunities and assisting in redevelopment activities as allowed by the CRL. Unfortunately, blighting conditions still remain within the Project Area and the proposed 2008 North Richmond Amendment is necessary to continue the Agency's efforts in eliminating physical and economic blight and attracting private investment to the Project Area. Section B of this Report presents the remaining blighting conditions prevalent within the Project Area. The proposed 2008 North Richmond Amendment will enable the Agency to more effectively implement programs, capital improvements, planning activities, commercial and residential rehabilitation, and to increase the overall commercial viability of the properties within the Project Area. The purposes of the 2008 North Richmond Amendment are to: 1. Increase the total dollar limit on the amount of tax increment revenues the Project Area may receive; and 2. Increase the limit on bonded indebtedness that can be outstanding at any one time. Adoption of the 2008 North Richmond Amendment will enable the Agency to more comprehensively fulfill the goals and objectives of the existing Redevelopment Plan. More specifically, with additional financial capacity, through increasing the Agency's amount of total bonded indebtedness that can be outstanding at any one time, and the amount of tax increment revenues that the Agency can collect, 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 Project Area and surrounding community. The benefits of the 2008 North Richmond Amendment would affect the immediate and long- range economic viability of the entire North Richmond community. If implemented, the proposed 2008 North Richmond Amendment would provide the needed resources to the Agency to ensure that blight removal activities are fully realized within the Project Area. Redevelopment activities will be subject to future review and approval by the Board, and/or other appropriate agencies, committees, and/or other interested parties as appropriate or required by CRL. . Since its inception, the Redevelopment Program has included plans to pay for needed improvements within the entire Project Area. The critical element of this analysis revolves around the amount of dollars needed to fund the projects that will eliminate blighting conditions currently existing in the Project Area'. The Agency has predicted a revenue FRASER&ASSOCIATES PROVIDED COST ESTIMATES FOR PROJECT AREA PROGRAMS AND PROJECTS O RSG A / 1 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area shortfall of approximately $261.5 million to complete the needed projects to eliminate blight in the Project Area. Of this $261.5 million, $177.1 million would be funded by capital backed by tax increment revenue, primarily through the issuance of tax allocation bonds. This document describes the current bonded debt,limit and the additional bond capacity needed to fund the necessary projects: To determine the needed .increase in the tax increment revenue limitation a detailed analysis was conducted by the:.Agency's fiscal consultant. In general, arriving at a limitation figure requires taking the $177.1 million in capital costs needed for projects and recognizing that this principal amount needs to be increased at least three fold to account for principal and interest payments overtime. To this amount, additional revenue must be added to cover the following: housing set aside requirements (20% of the total gross increment received by the Project Area), existing bonded debt service, County Auditor-Controller administrative charges and tax sharing payments to the Project Area's taxing entities. By amending the Redevelopment Plan to increase the Bond Debt Limit and Tax Increment Revenue Limit, the Agency will continue redevelopment efforts in the Project Area. This newly available revenue and capital will fund programs and projects that will enhance the value of the area, bring much needed private investment into the community, and eliminate blighting conditions. Through.public and private investment, the Agency plans to address physical and economic blight in'the Project Area, which in turn brings investment, development, affordable housing and jobs into the area PROJECT AREA LOCATION The Project Area is located in the western portion of Contra Costa County, California ("County"). The Project Area consists of an unincorporated contiguous area bordered on the south, east and north by the City of Richmond and on the west by the San Francisco Bay. The Project Area, totaling 900 acres, stretches along Richmond Parkway, which connects the 1-80 to the 1-580 at the San Rafael Bridge. Approximately 45% of the 900-acre Project Area is developed with residential uses, 5% is commercial, 31% is industrial, and 11% is vacant. Exhibit A-1 illustrates the Project Area's boundaries and Exhibit A-2 (page 3 and 4') illustrates the geographical location of the Project Area. Project Area demographics illustrate characteristics of the Project Area that reflect the Area's ongoing cycle of blight and poverty. The need for increasing the tax increment and bonded indebtedness limitations of the Redevelopment Plan are a direct result of the continued impairment of the Project Area. ,Demographics derived from ESRI Business Analysts indicate that the 2007 median household 'income within the Project Area is $27,648. The Project Area's median household income is 66% lower than the County's 2007 median income of$81,812. Furthermore, only 27.5% of the residents in the Project Area are homeowners. The significantly lower household income indicates that the financial capacity of Project Area residents and property owners to maintain their properties is limited. This claim is supported by the fact that 404 parcels, or 34%, suffer from deterioration and dilapidation caused by long-term neglect which reflects the lack of reinvestment by property owners. 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''$..�' ti:•.:.,�.,tic- .. :.� ti` '1,L�1^.-.1 c. tak'Q._ W moo_ , U;:a C L- u z REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area According to the Wall Street Journal - Real Estate.Journa12, home repair costs can easily exceed a home's purchase price. A study commissioned by the Wall Street Journal found that the cost of keeping a typical house up:to current standards for a 30 year period is almost four times the purchase price. Nearly 37% of the Project Area households,fall below the poverty line. As a comparison, only 7% of the households countywide fall below the poverty level. Therefore, the Project Area has a significantly higher poverty rate than the County overall. Ninety-three percent (93%), or 794 households, in the Project Area are designated as having income within the very low, low and moderate income category. Of the 93% low and moderate income families, 63%, 20%, and 10% are very low, low, and moderate income households, respectively, which is consistent with the Project Area's household size.3 Furthermore, 48.2% of Project Area residents over the age of 24 have not attained a high school diploma. Of the 48.2%, 24.4% have less than a 9th grade education. The countywide percentage of residents without a high school.diploma is only 13%. PROPOSED PROJECTS AND HOW BLIGHT WILL BE ADDRESSED As required by CRL Section 33352, this Report must include a list of projects proposed by the Agency and how they will alleviate blighting conditions. Section 33354.6 also states that when an Agency proposes to increase the limitation on the number of dollars to be allocated to the redevelopment agency, it shall describe and identify the remaining blight within the 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 has identified a number of projects which would aid current revitalization efforts, and in particular, eliminate deficiencies in the existing infrastructure systems. The following exhibits identify projects necessary for redevelopment. The projects include a range of redevelopment activities, from infrastructure improvements to general economic development programs that will serve to improve he Project Area's ability to compete with other areas. The following narrative identifies and discusses potential public improvement and economic development projects the Agency may consider over time in its efforts to address blight and complete revitalization of the Project Area. Development Assistance Programs The Agency must engage in a wide variety of economic development initiatives ranging from site assembly and acquisition to construction and site development. Environmental contamination and remediation can often times pose a financial challenge in the successful development of properties and may not be financially feasible for the private sector alone. 'June Fletcher. Repair Costs Exceed a Home's Purchase Price.Wall Street Journal—Real Estate Journal. ' Very low-, low-, and moderate- income categories for 2007 are based on $41,900, $66,250, and $100,600, respectively, for an average household size of 4 persons. Very low-, low-, and moderate- income limits are defined by the California Department of Housing and Community Development as up to 50%, 80% and 120% of the area median income, respectively.(9RS)G Aly REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area The Agency intends to utilize redevelopment funds to offset the cost of mitigating environmental impacts and helping identify which sites need further environmental studies. Table A-1 on page A / 7 summarizes the economic development programs that the Agency wishes to pursue to further address blight in tlie Project Area. The following is a summary of the Projects in this category: Town Center "Grove Point" Funds are needed for predevelopment, environmental review, and land acquisition of seven contiguous sites along the eastern side of Third Street: North Richmond Town Center. This project is located on the opposite side of the street from the.Senior Heritage Apartments, CHDC and the NR Center for Health,..between Chesley and Grove Avenues. This is the Main Street of North Richmond and the focal point for retail and commercial development. With adequate funding and acquisition of these sites, the Agency will be better equipped•to address and remove existing blighting conditions, such as deteriorated and dilapidated structures. Agency investment will address stagnant property values, adding value to the area and encouraging general economic development.. In-Fill Development & Acquisitions Funds are needed for various site acquisitions to facilitate new affordable housing projects, mixed use developments, and retail/commercial projects. There are numerous scattered sites (single family and duplexes), vacant land, and abandoned buildings throughout the community that are in need of substantial rehabilitation and upgrades. These projects would help eliminate blight by improving severely deteriorated and dilapidated buildings, eliminating factors that hinder the viable use of properties, and the remediation of hazardous waste sites in the Project Area. North Richmond Retail Initiative The North Richmond Retail Initiative is an ongoing project that involves the design and construction of a storefront retail space for the NorthShore Cafe. Establishing this market fulfills one of the final components of the Project Area goals and provides much needed retail services that have been requested by community residents. The NorthShore Cafe will offer basic amenities, sundry items, deli products, and fresh fruits & vegetables. The initiative will help eliminate blighting conditions such as substandard structures, a lack of commercial facilities, and stagnant property values. Providing these improvements stimulates property values in the neighborhood and encourages private and economic redevelopment in the Project Area. Light Industrial Developments The Agency will use business development funds to assist with a variety of financing obstacles like relocation costs and predevelopment, which will ultimately help induce private investment dollars within the Project Area. These activities will help attract employers and jobs into the Project Area. These funds will also help eliminate blighting conditions such as a lack of commercial facilities. Providing these improvements stimulates property values in the neighborhood and encourages private and economic redevelopment in the Project Area. Toxic Remediation Funds are needed to assess the impact of hazardous waste on various Project Area properties that have historically used or handled hazardous materials. It is anticipated that (qRSG A / 6 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area "Hot" locations are located in the residential and Specific Plan.areas (847 Brookside Drive & Meyers Drum near Brookside and Soto Street). However, other locations are within the Industrial area north of Parr Boulevard and along West Gertrude, and also along the western side of the Richmond Parkway. With proper funding, the Agency will be able to address existing economic blighting conditions such as the presence of hazardous waste and high vacancies/low lease rates. Such investment will improve the overall economic development opportunities in the Project Area: Other Economic Development Programs Funds will be used for feature site assistance and job development to help interested businesses relocate into North Richmond. The intent is to use these funds to lure new businesses and jobs into commercial and industrial employment generating areas. New jobs will.assist in reducing crime by providing the economic means to support those at the lowest income levels. Furthermore, most of these new businesses will be permitted in the Industrial area north of Parr and along West Gertrude.,These funds will also help eliminate blighting . conditions such as infrastructure deficiencies, substandard structures, a lack of commercial facilities, and stagnant property values. Providing these improvements stimulates property values in the neighborhood and encourages. private and economic redevelopment in the Project Area. Table A-1 Development Assistance Programs How Pro•ect Will Address Blight Physical Blight Economic Blight Funding 4) Project Name a,c q n w m Needed :R LD y 0 a of ftp C "00 10 .V N N E a 3 p w N U O 'O m O_ N ti y L Y d 0 L N C N C Ian U C N O f0 f0 O,3 N EO K O Of Z)0 0 2 3 g W a S 2 O � u W a T m Town Center"Grove Point" Mix-use development of contiguous sites along Third $10.150.000 X X X X x Street Infill Development&Acquisitions Facilitation of various site acquisitions,mix-use& $2.150.000 X X X X retail/commercial developments North Richmond Retail Initiative Involves the design and construction of a storefront retail Unknown X X X space for the Northshore Cafe. Light Industrial Developments The Agency will use business development funds,which Unknown X X will help attract employers and jobs into the employment qeneratinq areas. Toxic Remediation $2.500,000 X X Communitv Hazmat Assessment Other Economic Development Programs $3,500.000 X X X X X X X X X Site location assistance Total $18.300,000 RSG All REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Public Improvement Programs 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 Project Area. Paving, reconstruction, rehabilitation and widening of streets, widening of intersections, grade separations, and utility realignment are needed in the Project Area to improve traffic flow, provide better access for emergency vehicles, and enhance accessibility. Much of this effort is focused on the recently completed Truck Route Planning program. Additionally, utilities such as. phone lines, sewer lines, and storm drains that run along streets and required utility and street improvements are all necessary components of successful redevelopment program. The Agency intends to maximize its investment by improving streets and utilities simultaneously wherever feasible. The Agency has identified street segments for these improvements. Table A-2 on page 10 presents these identified public improvement projects. Through public investment in infrastructure system improvements and public capital projects, the Agency hopes to further stimulate private sector investment in the Project Area. The following is a summary of Projects in this category: North Richmond Truck Route Fundsare needed for the next phase of preliminary design, predevelopment, and acquisition of select parcels for the North Richmond Truck Route's Preferred Alternative Route. The acquisition process involves coordination with the Cities of San Pablo, Richmond, and the Union Pacific Railroad. Construction of this new route entails extending a short dead-end street named Soto northward across Wildcat and San Pablo Creeks to connect with Parr Boulevard. The construction of an alternative truck route will address the health and safety of Project Area residents and workers. It will specifically address pedestrian safety and improve air quality by minimizing truck access to neighborhood.streets. By re-routing trucks away from neighborhood streets, it will enable the Agency to address existing blighting conditions such as high vacancy/low lease rates and remove factors that substantially hinder the economically viable use of nearby buildings or lots. ° Industrial Area Drainage/Infrastructure. Funds are needed to initiate a comprehensive infrastructure improvement plan for the entire industrial area north of Wildcat Creek. Agency money will be leveraged, and/or combined with funds from property/business owners; other federal agencies, and the City of Richmond. These improvements will remove infrastructure deficiencies, which currently hinder the viable use of all industrial zoned property located north of Wildcat Creek. Infrastructure improvements will also help stimulate stagnant property values and create economic development opportunities in the area. Neighborhood Infrastructure Funds are needed for various infrastructure improvements in the residential neighborhood. There are no specific locations identified at this time. Other Infrastructure Funds are needed for future miscellaneous and other unforeseen infrastructure improvements throughout the area, including, but not limited to: improvements north of Parr Boulevard, roadway overlays, drainage, widening and reconstruction improvements, market RSG A ( 8 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area avenue pedestrian over crossing, 7'h Street extension, and the Goodrick realignment. These infrastructure improvements will help improve the health and safety of Project Area residents and workers by eliminating existing blighting conditions. The improvements will specifically address vehicle and pedestrian safety and circulation, and inadequate drainage. Improvements will stimulate property values in the Project Area and provide incentives for general economic development activities. Community Facilities Funds are needed to upgrade various community facilities including: Shields Reid Park (1410 Kelsey); North Richmond baseball field (along 3`d Street, adjacent to Verde School); Project Pride Community Center (Las Deltas); and the North Richmond Senior Center (515 Silver Avenue). An aspect of the NR Specific Plan will identify additional community facility needs such as daycares, libraries, and conference centers. These upgrades will help eliminate blight by stimulating the property values of surrounding properties in the area. Further, these upgrades will improve the Project Area's high crime rate by providing a safe and healthy outlet for local youth, other than drugs and crime, so that they can participate in educational and recreational activities outside of school. Third Street Streetscape Funds are needed for road, pedestrian and streetscape improvements along 3rd Street from Grove Avenue to Wildcat Creek. The goal is to simultaneously create traffic calming . measures, roadway improvements, and public amenities. These improvements will help remove infrastructure deficiencies, which hinder the public safety of residents in existing neighborhoods. Providing these improvements adds value to the neighborhood and provides incentives for private redevelopment and overall economic development activities. North Richmond Specific Plan Infrastructure Funds are needed for major infrastructure improvements within the North Richmond Specific Plan Area, including the Nove Subdivision at Richmond Parkway and Pittsburg Avenue. The Nove infrastructure improvements will be coordinated with the larger specific plan program to create a comprehensive plan that includes road widening, drainage, sewer, storm water, and circulation improvements. Improvements, in the Specific Plan Area will result in better vehicle and pedestrian circulation and safety, increased property values, which encourages. private redevelopment and community-wide economic development. RSG A / 9 REPORT TO THE BOARD OF. SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Table A-2 _ Public Improvement Programs How Project Will Address Blight Physical Blight Economic Blight N d N N Funding y �e v , Project Name Cc Needed rn 0 O n y � m m a s _ = . y O d N E cu41 > y 0 U C l0 C y U C M O N N O3 W EO X m 0 2 6, a 2 3 2 U W 2 North Richmond Truck Route Roadway improvements including preliminary design, $13,530,000 X X X CEQAINEPA,right-of-way acquisition and construction Industrial Area Drainage/Infrastructure $10,642.000 X X Comprehensive infrastructure improvement plan for industrial area Neighborhood Infrastruture Infrastructure improvements in the residential $25,727,000 x neighborhood Other Infrastructure $5.400.000 x Upgrades to various public facilities Community Facilities S2,500.000 x x Upgrades to various community facilities Third Street Streetscapes $1,657,000 x Road.pedestrian and streetsca a improvements North Richmond Specific Plan/Nove Subdivision Infrastructure Improvements for residential development for 210 acres, $32,500.000 x x 1500 homes and 225 BMR units.Improvements for subdivision consisting of 355 townhomes,single family cluster homes and condos Total $91.956,000 Community Improvement Program As depicted in Table A-3 on the following page, projects in the Community Improvement Program all directly address the appearance of the.neighborhood, and indirectly the overall value of the properties located in the Project Area. This increased property value impacts not only the specific property, but has significant impact on surrounding properties as well. The Agency has established beautification programs to assist residents and businesses upgrade and maintain the appearance of buildings and property, a garbage remediation program that helps address illegal dumping, code enforcement support that adds valuable human.power to the strenuous task of dailycode review in the Project Area, and other invaluable programs that address the improved appearance of the entire community. The Agency .will also initiate neighborhood safety and,crime prevention activities, which are directly tied to the collaborative effort of County officials to improve the health, safety, and welfare of Project Area residents and workers. O RS)G A / 10 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Table A-3 Community Improvement Programs How Project Will Address Blight Physical Blight Economic Blight Nd 4 Project Name Funding w o N Needed a o y ; = „ d E -22 m � N N C c0niv a o>a M2 m m m 3 m o X m m u LU 2 m Community Improvement Program Projects and activities within this category.include beautification programs.garbage remediation programs, code enforcement support and other initiatives that enhance the appearance of the Project Area.The Agency will also provide required funding for on site or site specific services,equipment and facilities aimed at addressing S1,885.000 X X X X problems that address criminal activity effecting the health,welfare and safety of the North Richmond Project Area. Such activities include targeted code enforcement. graffiti removal.Abatement Attorney.Resident Deputy, and equipment such as security cameras. Total $1,885.000 Low- / Moderate- Income Affordable Housing Programs The Agency is required to set aside no less than twenty (20) percent of tax increment revenue generated by the Project Area for the creation of affordable housing. These funds are to be used to increase, improve and preserve the supply of affordable low and moderate income housing in the community. The Agency also funds a Youth Build program. The young participants work year round with licensed contractors to apply their newly acquired skills to rehabilitating blighted properties in the North Richmond area. The program provides local youth with an outlet, other than drugs and crime, to learn the necessary job skills, which they, as a result, can use for future employment opportunities. Once homes are rehabilitated, they are sold to qualified, low-income, first-time homebuyers. The Agency, in collaboration with the Housing Authority of Contra Costa County ("Housing Authority"), also funds the Las Deltas Reuse program, which aims to replace and/or revitalize 224 units of Public Housing that are in clusters and scattered throughout the Project Area. The program will enable the Agency to remediate a number of physical and economic blighting conditions, thereby, improving the health, safety and welfare of Project Area residents. More specifically, the Agency will be better suited to address blighting conditions such as the age, obsolescence, deterioration and dilapidation, and absentee ownership that these housing units exhibit as well as surrounding properties in the neighborhood. By rehabbing dilapidated structures, 'the Agency is effectively addressing building code deficiencies, eliminating safety hazards by removing abandoned structures that could impact the health and safety of area residents, and improving the value of properties that surround these dilapidated structures. Table A-4 on the following page summarizes .the Agency's ongoing efforts to provide affordable housing, in the Project Area, with the help of the Las Deltas Reuse Program as well as the Youth Build Program. RSG 0 A / TT REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Table A-4 Low-Mod Housing Program How Project Will Address Blight Physical Blight Economic Blight Funding ,� v i REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area SUMMARY Approval of the proposed 2008 North Richmond Amendment, increasing the limit on bonded. indebtedness and the tax increment collection limit would: provide the Agency with the necessary funds to implement the aforementioned programs and projects designed to address the remaining physical and economic blighting conditions in the Project Area. Without this additional revenue, the Agency's ability to work towards the removal of remaining blight would be seriously hindered. The Project Area continues to suffer from significant blight, and exhibits numerous signs of infrastructure deficiencies. The lack of infrastructure causes a reduction in utilization: of the Project Area to such an extent that it constitutes a serious physical and economic burden to the community. The projects enumerated previously in this section would significantly improve conditions within the Project Area by addressing physical and economic blight. These projects address blight by providing adequate infrastructure such as streets and public facilities, as well as fund other critical economic development initiatives and affordable housing. The blighting conditions indentified in Section B cannot reasonably be expected to be reversed or alleviated by private enterprise, governmental action, or both, without redevelopment action and proper funding. Implementing the identified projects will allow the Agency to abate the blighting conditions affecting the .Project Area. This.investment by the Agency will signal to the private development community and the public at large the Agency's confidence in the area and provide a catalyst for private investment and reinvestment. RSG • A / 13 SECTION B Description of Physical & Economic Conditions EXisting in the Project Area STUDY APPROACH AND METHODOLOGY Field investigation as well as several other data sources were utilized to quantify the physical and economic conditions present in the Project Area. An important evidentiary source for evaluating the existence and prevalence of blighting conditions in the Project Area was the field survey conducted by Rosenow Spevacek Group, Inc. ("RSG")4. RSG's approach to the field survey involved an initial site visit to the Project Area from August 6-8, 2007. At that time, the RSG survey team identified locations within the Project Area where blighting conditions appeared to remain substantial and prevalent. Subsequently, on September 18-20, 2007, RSG conducted a parcel-by-parcel survey from the public right-of- way ("2007 Field Survey"). Based on initial reconnaissance, RSG prepared and refined the survey instrument so that each parcel within the Project Area 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 CRL Section 33031(a), and economic blighting conditions listed in CRL Section 330.31(b), which are amenable to a visual survey. The survey forms contain consistent, educated assessments regarding the building/property conditions of parcels in the Project Area 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 2007 Field Survey, both •physical and economic indicators of blight were observed in the Project Area including, deterioration and dilapidation, structural obsolescence, buildings of substandard anddefective design, incompatible adjacent land uses, lack of parking, inadequate lot sizes, possibly abandoned buildings, and a lack of necessary commercial facilities. Representative photographs were taken throughout the Project Area to depict the conditions identified.during the survey. 4 The 2007 Field Survey was completed by Matt McCleary, Brian Moncrief, Zachary Mikelson, Tara Howard, and Felise Acosta. Felise Acosta, Principal at RSG, and Tara Howard, Associate, were the lead surveyor's and supervised Mr. McCleary, Mr. Moncrief, and Mr. Mikelson. Ms.Acosta is a principal in the firm and has served as the Project Manager for clients, throughout the State, requiring services in redevelopment, housing, economic development, finance activities and developer/public sector,coordination. Ms. Acosta specializes in redevelopment project area formation and implementation and has over 30 years of experience in this field. She has directed the creation or amendment of over 30 project areas including the cities of Buena Park, Burbank, Carson, Firebaugh, Fontana, Palm Desert, Port Hueneme, San Bernardino, and the unincorporated Montalvin Manor neighborhood of Contra Costa County. Ms. Howard has worked on project area adoption or amendment projects as well as feasibility studies in communities such as Camarillo, Fallbrook,.Laguna Niguel, National City,and the Victor Valley. RSG B / 14 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area BLIGHTING CONDITIONS Sections 33030 through 33039 of CRL 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. Section 33030 of CRL defines a blighted area as one that contains the following: 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 which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. Urbanization To qualify for inclusion in a Project Area, the land must be "predominantly urbanized," as defined by CRL Section 33320.1(b) i.e., that 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 The 2008 North Richmond Amendment does not propose to add new territory to the Project Area and the Project Area was found to be predominantly urbanized at the time of its adoption in 1987. The 1987 definition of a predominantly urbanized area required that no less than 80 percent of the privately owned property in the project area had been or was developed for urban uses, was characterized,by the subdividing and sale of lots of irregular form and shape and inadequate size for proper development or the laying out of lots in disregard of the contours and other topography or physical characteristics of the ground and surrounding conditions, or was an integral part of an area developed for urban uses. Current CRL requires that 80 percent or more of the land in a project area be either developed or previously developed for an urban use, or an integral part .of one or more areas developed for urban uses that are surrounded or substantially surrounded by parcels that have been or are developed for urban uses. Current analysis indicates that 821 acres, or 91%, of the total 900 Project Area acres have been or are developed for urban uses. The Project Area met the "predominantly urbanized" requirement when the Project Area was adopted and continues to meet it under the current definition. Physical Blight Section 33031(a) of the CRL currently describes physical conditions that cause blight as follows: O RSG B / 15 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area 1. Buildings in which it 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 design b. Lots/buildings of inadequate size given present standards and market conditions 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 held in multiple ownerships 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 CRL describes the following economic conditions that cause blight: 1. Depreciated or stagnant property values or impaired investments. 2. Impaired property values due to hazardous wastes on property where the agency may be eligible to use its authority as specified in Section 33459. 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, and 4. A lack of necessary commercial facilities such as those normally found in neighborhoods including grocery stores, drug stores, and banks and other lending institutions. 5. Serious residential overcrowding that has resulted in significant public health or safety problems. As used here, overcrowding means exceeding the standard referenced in Article '5 (commencing with Section 32).of Chapter 1 of Title 25 of the California Code of Regulations. O RSG B / 16 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area 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. The Project Area was adopted to address the blighting conditions present in the area as defined by CRL at that time. Conditions included, but were not limited to: ■ Dilapidation and deterioration of buildings, ■ Defective design or physical construction of buildings, ■ Presence of hazardous materials, ■ Functional obsolescence hindering economically viable use of buildings and lots, ■ Deferred maintenance and site condition, ■ Incompatible land uses, ■ Irregular parcels in multiple ownership, ■ Irregular subdivisions of inadequate size to meet current development standards, ■ Laying out of lots with disregard to topography, physical characteristics of the ground and surrounding conditions, ■ Existence of inadequate public improvements, facilities, open spaces, and utilities, and ■ Prevalence of depreciated values, impaired investments, and social and economic maladjustment. Physical Blighting Conditions In The Project Area CRL Section 33031(a) describes the physical conditions that cause blight. These physical conditions are 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 Project Area data from 2007 Field Survey, MetroScan parcel data, code enforcement data, and other resources were collected and analyzed to determine what conditions may be adversely affecting the health and safety of persons in the 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 investment in physical upkeep of properties, further perpetuating physical blight. The Project Area is comprised of 1,202 parcels, of which 550, or 46%, exhibit one or more physically .blighting characteristics such as deterioration and dilapidation, structural obsolescence, defective design and incompatible adjacent use. Table B-1, on the following page, summarizes the aforementioned conditions along with the number of parcels that exhibit each condition. o R`'G B / 17 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area NORTH RICHMOND REDEVELOPMENT PROJECT AREA Table B-1 BLIGHTED PARCEL SUMMARY Blighting Condition Total#of Parcels %of Total Project Area Parcels Deterioration& Dilapidation 404 34% Structural Obsolescence 23 2% Defective Design 279 23% Incompatible Adjacent Use 11 0.92% Total Blighted Parcles/1 550 46% /1 Parcels may exhibit more than one blighting condition.and as a result, Total Blighted Parcels will not equal the sum of all conditions or percent of total. Source:Rosenow Spevacek Group, Inc. field survey of September 18-20, 2007 The presence of these conditions reflect a lack of investment by property owners in maintaining their properties; in good condition to assure the safety of persons who live and work in the Project.Area. Poor physical conditions place a burden on the community by reducing its ability to meet its goal of Jostering.vibrant neighborhoods. Exhibit B-1 on the following page illustrates the portions of the Project Area where physically blighting conditions remain. RSG B / 18 O � m W m � x Q U) w ;, -A� •• __ _fie �__�® - o rn LU M NOW�- _ 31 W 0 ;et.:rlce ;�!`� I. c� J J Q u_ N 2 a Q w , Ix T � N Q u U p7+� N � OCL L T O L7 > a Z mr7 �cL r L 1 (L) O 0 '-' U > T"O V U G' Q U ro' C v Q�' LC)CO n� V U J y U C O a a, oc`>ooi = N ��I a o ��, J 1 Z U � Z �o m � C C U Z O REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Unsafe and Unhealthy Buildings for People to Live or Work Pursuant to CRL, buildings in which it is unsafe or unhealthy for persons to live or work are represented by structures that exhibit serious dilapidation and deterioration caused by long- term neglect, serious building code violations, construction that is vulnerable to damage from seismic or geologic hazards, and faulty and/or inadequate water and sewer utilities. The following discussion substantiates the presence of these serious conditions which cause nearly 34% of the physical.blighting conditions identified in the Project Area. Deterioration and Dilapidation Deterioration and Dilapidation is a phenomenon that occurs when aging structures do not receive routine maintenance and , repairs, 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 standards. 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 abandonrnent 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. According to county assessor's data obtained through the MetroScan database, there are 894 structures located within the Project Area that reported the year built, and 41% of those permitted structures were built prior to 1960 and 57% were built before 1980, or more than 25 years ago. Table B-2 on the following page presents a summary of the structures within the Project Area by decade built. It should be noted that unpermitted•structures and illegal additions are not accounted for by the county assessor's office and therefore, are not included among the table results. RSG B 2 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project,Area NORTH RICHMOND REDEVELOPMENT PROJECT AREA Table B-2 STRUCTURES BY AGE Decade No. of Structures % of Total Structures <1899' 1 0.11% 1900 7 0.78% 1910 3 0.34% 1920. 12 1.34% 1930 39 4.36% 1940 -145 16.22% 1950 159 17.79% 1960 101 11.30% 1970 39 4.36% 1980 26 2.91% 1990 79 8.84% 2000 285 31.88% Total 894 100% Source:Metroscan,a product of First American Real Estate Solutions, L.P. In addition to nearly 57% of structures located within the Project Area having been built prior to 1980, a prevalence of seriously dilapidated and deteriorated. buildings exists. Despite Agency efforts to curtail blight in the Project Area, 34% of the Project Area parcels show signs of serious dilapidation and deterioration resulting from long-term neglect. Among some of the more prevalent building conditions noted during the field survey which characterize a parcel as dilapidated and deteriorated include: deteriorated or damaged external building materials such as roofing, siding, rafters/framing, doors, windows, window frames and overhangs; exposed wiring; and faulty weather protection. R:SG B / 21 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area The following photographs depict typical conditions noted during the 2007 Field Survey and throughout the Project Area. 'i � 5 i bn:3 ,i n Photo 1 The property in photo 1, located along Market Avenue, illustrates a property that is deteriorated and dilapidated. Properties of this nature are seen consistently throughout the Project Area. As depicted above, this structure suffers from serious deterioration of roofing materials, eaves, and overhangs which pose a significant risk to the health and safety of the inhabitants. The structure also suffers from a lack of paint and plaster, which makes it vulnerable to the outside elements and unsafe for inhabitants. These types of blighting conditions exhibit a serious lack of investment by the property owner. O RSG B 2 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area i - b•.C +MI! :'I 1.•t t 1 I '� lv Photo 2 The property in photo 2, located along Second Street, also illustrates a property that is deteriorated and dilapidated. As depicted above, this structure suffers from serious deterioration of roofing materials, eaves, and overhangs which pose a significant risk to the health and safety of the inhabitants. These types of blighting conditions show a serious lack of investment by the property owner. R.SG B / 23 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area r ifi� �,\'hl'.; P M; � ►.Mss Photo 3 The commercial property in photo 3, located along Market Avenue, illustrates a structure that is deteriorated and dilapidated. This structure suffers from serious deterioration of roofing materials and a severely sagging roof, which both pose a significant risk to the health and safety of the inhabitants. This property is also a well-known liquor store and has been cited numerous times by the Contra Costa County Building Inspection Department ("Building Inspection Department") for violating conditions of use. According to County staff, the property serves as a haven for criminal activity and violence. As of December 2007, the Board decided to condemn and demolish this structure to protect the general welfare of the community. O RSG B / 24 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area 'a r c • T.�' ��+"'�': L.S. . ..,,...,,�q.. . > / �fwti .: .. ?jyiy .� •.ti',::`ni 1..i'Fy �•-fi"n'.. %:Y ;. :}AE:°i.'�tl.> ri Photo 4 In photo 4, the roofing materials of this First Street property are so severely damaged that it presents serious health risks to inhabitants and negatively impacts the economic progress of surrounding properties. The blue tarp that is draped over the roof is further evidence that the roofing materials are vulnerable to the outside elements. Further, there is a suspected illegal garage conversion on.the property, covered by the blue tarp, which also presents a serious health and safety issue for inhabitants. O RSG B / 25 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment.Agency North Richmond Redevelopment Project Area ----------... '"tet: :....:.......• � .. t. Photo 5 This boarded. up house in photo 5, along .Market Avenue, suffers from damaged exterior building materials, deteriorated roofing materials, deteriorated eaves and overhangs as well as broken and boarded up windows. The building elements also show a lack of paint and plaster and faulty wiring, which leaves the structure vulnerable to the outside elements and can cause a significant safety concern for inhabitants. Not only does this structure pose healthy and safety concerns but it also detracts from the community's aesthetics which may impair surrounding property values. RSG B / 26 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Fe j�,Y Photo 6 This property in photo 6, located along Second Street, contains a vacant structure with broken and boarded up windows. According to County staff, properties that have boarded up windows are typically broken into by squatters and eventually become a haven for criminal activity. This property is a prime example of a lack of investment by the property owner, which can be a hindrance to the economic viability of surrounding properties. O RSG B 27 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Yr W. Sri• i-- _ti`� A. '�`{$sl' 'i":..t �:.. � -.- '•�.. <- 3� .. ° - Y — .,..3: ;�.: y*..:. �:•:�, _.Ww,�:':....3u`•<�:'.•.F.'�:.: . S.. .. at €3 ys Photo 7 Photo 7, located along Second Street, is another example of a structure that has broken and boarded up windows as well as trash and debris in the yard. The aforementioned conditions are a cause for concern because they are typical of the kinds of problems that exist throughout the Project Area. Furthermore, the broken and boarded up windows can attract residential squatting, which County staff indicates is a serious problem in the Project Area. According to County staff, unoccupied structures, such as this one, are oftentimes used for illegal activities such as drug use. RSG B / 28 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area ,, i= r., Photo 8 Photo 8 depicts a structure, along Second Street, which displays a serious lack of investment by the property owner. This property has deteriorated eaves and overhangs coupled with a lack of paint and plaster. 'In addition, the property displays broken and boarded up windows, which is vulnerable to outside elements and unsafe and unhealthy to the inhabitants. O R:SG B / 29 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond.Redevelopment Project Area . {• Photo 9 This property, located on First Street, in photo 9 illustrates a persistent problem throughout the Project Area, namely a display of exposed wiring. Properties that have a problem with exposed wiring are vulnerable to outside elements such as wind and rain, and can pose a severe risk to the health and safety of the inhabitants, if not remediated immediately. This structure would not meet current building code standards and can be considered a potential fire hazard. O RSG B / 30 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Photo 10 This property, located on Willard Avenue, is suspected as vacant/abandoned and displays a number of common blighting characteristics in the Project Area. Vacant/abandoned properties that have boarded up windows can sometimes, as confirmed. by County staff, attract squatters to a dwelling. The structure also shows visible signs of lack;of paint and plaster and exposed wiring. All of these blighting characteristics can pose safety and health issues to inhabitants. According the Contra Costa County .Building Department code violation data, which covers code violations from October 2006 to September 2007, the property owner has been cited numerous times to abate the substandard structure depicted above. O RSG B / 31 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area 4' ... of y Photo 11 This property, located on First Street, in photo 11 displays another example of exposed wiring. Properties that have a problem with exposed wiring are vulnerable to outside elements such as wind and rain, and can pose a severe risk to the health and safety of the inhabitants, if not remediated immediately. This structure can be considered a 'potential fire hazard and can put inhabitants and other community residents at risk of coming into contact with faulty electrical lines. The Building Inspection Department indicates, in their August 2007 code violation data, that this structure contains an illegal garage conversion, which can also pose a serious health and safety risk to inhabitants a O RSG B / 32 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area AL i 17•. �tTj..�::' : I 1 t I I r ' Nc-• �r %.3C.ia».r..., •F f I I � ' .d•, •�" �.•.•.,, .��` air•::»:+• ''.:r�is � '• •'` _... �r,.r.- 'y.;Y:f•:,r ,�!;' -�';:1� ,.S :J f'r'd"'• =��. :.r.Ly '�.•v'"_j<:'. «.;:.;.,'•'�• .J:+?;.;,. + �.4..• h: ,•f;'.:= -(:. �i{'• ;- ;.i'f.7iT�7.'{y `X! :'lc.'-*Jr� r _ r.j•f:. ;, C;�::j. is%'•"fie- -.tai" 'R. .41 •'=.J+Y�'�•r •.�. ,1 .7F:�," . fAly.:. �1' rf::� .=I `V�dJ;;v;�.._ Y�:v.c. �:{H;re.N•,' '-:r.•/((,)�/J _ lir;;.: ::C'1: � JJ....ly- f1�.i�7�'::i:, �%y:ter•. < _ •}+rye - ...:...... L:,'r,�:' �,).'s •• rr,•r iJ.. 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F� �i�Ydc.T 1�+ R:A � Photo 12 This structure, located along York Street, suffers from dilapidation and deterioration as evidenced by the damaged exterior building materials. This structure presents an unstable blighting condition that could pose serious health and safety risks to persons of the Project Area and may potentially devalue surrounding property values. If allowed to continue, the structure will be vulnerable to outside elements such as rain, which can allow the presence of moisture and can eventually lead to mold and dry rot. RSG B / 33 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area ., :zR+.-+IF.. -,r�A"`^� .�.^-�i`'x°i�T�'.r� l,."��, a�" 3�r.`-'�• •;,-yf•� r 4e. } F. �. *•�,e_.r�. .a:'7`�.:�pwi+.=?;.=3:.L+. r�'s'. _y,'.a'�t` ;:,�! .c �, t «^t'$• •i _frF .ti �'^,'.'-�'�„Y'.fi£!°:.':••. 7i::... ... ..s _,�•?,,,.,`.�-+ .. ca 3 �; yy�y- W• �;......�: mili�i.^`.—; a 4"S..:': y /.'Y� � .Y�•i� 'a1�:1t,"'.�^-: ,�l�`r e:,.,�y;L:'`� _ .,..._y`rt.fn. __ _ ." ) `!•.,4i.-� �£.f4. ..F:•.:t:=�:�a'i.kl.::L21_.:._..`...utswi'......_i..un,..>.�_rsY..:iu.r.......--_.�.�..._..__._a_.=.__.-.._.:.y's-..c:�.:_�3_�1�-.:�.�....r Photo 13 This property, located on Alamo Avenue, in. photo 13 exhibits a common problem that plagues the entire Project Area, namely illegal dumping. The front of the property contains garbage, weeds, and foliage, which can create a perfect environment for rats, rodents, diseases, and negatively affect the health and safety of the inhabitants. Further, excessive garbage and debris can also create a fire hazard, which poses a significant risk to the inhabitants as well as surrounding properties. In addition, the Building Inspection Department cited the property owner, in August 2007, and; indicated that the structure was substandard. RSG B / 34 REPORT TO THE BOARD 'OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area — :'°S(t .:f: ':44. � .L'iill '��-1:. .'��',u�':.j,'..:;::'.1.:_,F"a. _..:1,_. _;/�•.`i , - s_vtl:• ,(J i �'� 14 JL.�,' .:..Ci!..-�,.w•`��.!•^...••�.r••d`-_y.. �.1.r?w..�„A?.a Photo 14 The property in photo 14, located along Chesley Avenue, is another example of illegal dumping and lack of investment on the part of the property owner. The broken and boarded up windows indicate that the property may be abandoned or neglected by the property owner. According, to County staff, structures that contain boarded up windows are typically broken into by squatters and used for illegal purposes. The property also contains garbage and debris, which can negatively affect surrounding properties. O RSG B / 35 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Building Code Violations Pursuant to CRL Section 33031(a).(1), buildings in which it is unsafe or unhealthy for persons to live or work are conditions that may be caused by serious building code violations. Buildings and structures that do not meet basic uniform building requirements, or have conditions that endanger occupants, or do not meet other local codes mandated to ensure human health and safety, pose a threat to the workers, patrons, and residents of an area. The following list exemplifies some of the types of serious code violations observed by County staff in the Project Area since October.2006: ■ Buildings containing structural damage due to fire. Fire damaged structures may be cited if the property is not properly secured within 30 days or if the structure is not properly rehabilitated or demolished• after a reasonable period of time. Structures left unrepaired after fire damage, present serious health and safety risks. Two properties, located at 1345 Battery Street and 1623 Truman Street, were cited over the last year for having a fire damaged structure, which were not secured or demolished. ■ Unpermitted industrial business operating from an unpermitted building. Unpermitted buildings that are not properly inspected for safety could cause personal injury to occupants and unapproved commercial/industrial operations may not be compatible with surrounding uses. An industrial business, located at 115-181 Brookside Drive, has been cited numerous times for operating a landscape contractor yard without.a land use permit. 255 Parr is another known location that has been cited for operating an illegal recycling center. County staff indicates that revocation proceedings are currently underway for 255 Parr. ■ Illegal dumping in the Project Area is a widespread problem, creates unsanitary conditions, and can be a potential fire hazard. Illegal dumping sites such as 508 Verde Avenue and 1855 3rd Street were cited numerous times by the Building Inspection Department from October 2006 to September 2007. ■ Unscreened junkyard conditions located on residential and commercial properties. This is a violation of Section D of the North Richmond Redevelopment Area Planned-Unit Zoning District Program ("Planned-Unit Zoning District Program"), which states that outdoor storage and maintenance areas should be screened from view from public streets. Such properties are an eyesore to the community and can have significant impacts on surrounding real estate values as well as present serious health risks due to potential fire hazards and unsanitary/toxic conditions. Further hazardous conditions or materials located in a residential setting is dangerous to neighborhood residents and poses an attractive nuisance to young persons. Examples of such violations were found at 1520 6th Street and 349 Silver Avenue, for not being properly screened from the public view. ■ Illegal residential garage and carport conversions used as additional living space. Garages and carports are not suitable living spaces and when converted without a permit or proper inspection it is not possible to determine if structural integrity has been jeopardized by the nature of the quality of work. A December 2007 fire that took the lives of three young girls who were occupying a converted garage RSG B / 36 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency Norah Richmond Redevelopment (project Area for living space in Long Beach, California underscores the serious health and safety concerns associated with illegal garage conversions. The Chief of Long Beach Fire Department called the living conditions of the converted garage (there was no smoke detector) a recipe for tragedy. Two.examples of illegal residential garage conversions were identified by the Building Inspection Department at 1825 1 st Street and 1834 4th Street. ■ Unpermitted building additions and improvements. Unpermitted improvements potentially lack structural integrity, creating a dangerous environment in which to live or work. Without examining the actual improvement, it is not possible to determine the true effects of the unpermitted construction on the integrity of the structure. A couple of confirmed unpermitted building additions were found at 1721 5th Street and 29 Sanford Avenue. A July 2007 fire in the unincorporated community of Montalvin Manor, west of Pinole, claimed the lives of two residents and two Contra Costa firefighters. According to County staff, the residential structure contained an illegal roof pitch conversion, which collapsed while firefighters were attempting to fight the blaze. The Building Inspection Department identified a couple of illegal roof pitch conversions and unpermitted roof improvements at 28 Alamo Avenue, 217 Chesley Avenue, and 1534 3rd Street in the Project Area. ■ Car repair and other types of businesses being run out of residential properties pose a potential threat to the health and safety of. Project Area residents and workers. Without proper permitting/inspections residential structures cannot be properly evaluated for suitability for industrial/commercial conversion nor for the .business's compatibility with, adjacent uses. In the example of a car repair business being operated from home, there are serious risks due to waste disposal and chemical runoff. An example of this type of code violation was identified by the Building Inspection Department at 1341 Battery Street, which has been cited numerous times for junkyard conditions and operation of a tow/scrap yard. ■ Residential lots with raw sewage discharge. This is an unsanitary condition that is a threat to human health and safety. An example of this type of violation was identified by the Building Inspection Department at 281 Vernon Avenue. Conditions above not only create an unsafe and unhealthy environment for persons to live and work but they also cause a drain on County resources as most code enforcement cases require at least one, if not more additional follow up visits to make sure the violation is not reoccurring. Table B-3 on the following page presents a summary of code violation data for the Project Area from October 2006 to September 2007. During the same time period the Building Inspection Department issued close to 500 building and zoning code violations of which 52% are considered to be serious in nature, which are defined by the aforementioned conditions. Within the. Project Area, the Building Inspection Department is not only citing a significant number of properties for code violations every month but a high percentage of those code violations are for serious conditions that pose a threat to the health and safety of workers, patrons, and residents in the Project.Area. RSG B / 37 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area NORTH RICHMOND REDEVELOPMENT PROJECT AREA Table B-3 2007 CODE VIOLATIONS/1 Code Violation Oct Nov Dec Jan Feb March May June JU/y AugSept Total Building 17 14 13 14 15 19 16 14 18 15 15 170 Zoning 13 14 15 10 14 16 18 15 13 12 12 152 Other Departments/2 3 2 2 2 1 1 3 3 2 3 4 26 Posted/3 17 15 15 15 14 13 11 10 11 11 9 141 TOTAL 50 45 45 41 44 49 48' 42 44 41. 40 489 Serious Violations/4 23 27 28 25 23 27 21 21 19 19 19 252 /1 Due to a lack of action by property owners to bring their property into code compliance or because of reoccuring violations,a property may be recorded for the same violation in multiple months.Only data through September 2007 was available at the time of this report. /2 Cases that require other departments to review and approve(i.e.Public Works,Environmental Health,Community Development)or in probate 13 Comprised of building.zoning,and other department violations that have received final notice to comply. /4 Reflects the number of building,zoning,and other department code violations considered to be serious in nature. Note:Code violation data for April 2007 was not available Source:Conlra Costa County Building Inspection Department According to the Chief of the Property Conservation Division of the Building Inspection Department, who is responsible for overseeing code enforcement services, the types and quantity of building code violations cited in the Project Area during 2006 and 2007 are consistent with violation numbers of previous years and should not be viewed as abnormally high for the Area. This statement documents that ongoing blight is present within the Project Area and additional financial resources are needed to address these blighting conditions. The following photographs represent a few examples of the blighting conditions observed, such as structures damaged by fire, junkyard conditions, deteriorated external building materials and poorly constructed additions during the 2007 Field Survey: RSG B / 38 REPORT TO THE BOARD OF SUPERVISORS Contra-Costa County Redevelopment Agency North Richmond Redevelopment Project Area ;` :A,• 'r.is'•i .�,::," ,•L'r4ir:;31• 1• :'' - Y~ *2`~! t $ '�,�,��a� ��-.^".�,�j,+ y!�, •<� *a;�. �.Aye• Al { , Vit. Photo 15 Photo 15, located on Battery Street, shows another example of a structure damaged by fire. This structure displays serious signs of dilapidation, deterioration, and neglect as evidenced by the condition of the dwelling unit. This vacant/abandoned structure was damaged by a fire and was deemed a substandard structure by the Building Inspection Department back in October 2006. As of September 2007, the structure has not been secured or demolished. Even though the windows and doors appear to be boarded up, there is a significant cause for concern that squatters will inhabit the property and face injury or worse. RSG B / 39 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency. North Richmond Redevelopment Project Area 0-5 Y e k• ' ..fav t , ! ••fi 'r i k 4�'S .-�„ �. r" i�: �•t 4. .a�,Fi.:•'i . ��. w• 9:„ti',",..r''.!.i;B;•...iT� .�T✓.7.'?''•. .. 'tY '�`:..',:R..a � E'er' ,.r-• E. ,(� x':.15;�.,•..d• '`L,;^ r'r., r.,.�. ,'r 'F_• n'�i: 5 .,:'SF_r. `w?: •J'fsYVAr.Y.. •.'v - .�'F( y`rk:�'•.'+1 4"f',. Y 1 1" r•�"I. Photo 16 Photo 16 depicts a hollowed out car, which is located at the end of 5th Street and on the border of Wildcat Creek. This photo is a perfect illustration of the illegal dumping problems that the community of North Richmond currently faces. County staff also indicates that there are significant amount of abandoned/stolen cars located throughout the Project Area. The vehicle depicted in. Photo 16 poses a significant health and safety risk to residents, especially children, who may be injured or come in contact with vehicle contaminants. Further, the vehicle is an eyesore, deters from private investment in the Project Area, and hinders the economically viable use of surrounding properties. RSG B / 40 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area :f . .w-"..r..i .4 , Yi Photo 17 The structure depicted in photo 17, located on 1St Street, is an example of deterioration and dilapidation. The photo provides an example of damaged and deteriorated building materials, as evidenced by the large black circles of mold on the wall. If allowed to persist, the property will get progressively worse and put the health and safety of inhabitants at serous risk. This type of condition shows a .serious lack of investment on the part of the property owner and must be remediated.. The structure also has exposed wiring, which leaves wires vulnerable to outside elements and can cause a number of health and safety concerns for inhabitants as well as other residents. . RSG B / 41 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area 1 F fl J ' Photo 18 The structure, which is located off of Willard Avenue, exhibits serious deterioration and dilapidation of external building materials. The property shows visible signs of rot throughout the building components which has affected the exterior walls, siding, and windows. These types of blighting conditions are vulnerable to the outside elements, especially during rain, which can eventually bring mold and put the.health and safety of inhabitants at risk. The characteristics of the structure are a prime' .example of what can occur from a lack of investment on the part of the property owner. O RSG B / 42 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area . 'Y !•Y I ..-.t_.. -._7J... .. . - . - Photo 19 This structure in photo 19 is located on First Street and shows serious signs of impaired investment by the owner, as evidenced by the 'dilapidation and deterioration of the residential dwelling .unit. The property also exhibits a common problem that plagues the Project Area, namely illegal dumping and junkyard conditions. The trash and debris left on the front lawn of the property is a haven for rodents and insects, which can carry infectious diseases. These types of conditions can breed health and safety issues for inhabitants of the residence as well as neighboring properties. The condition of this property can also negatively affect the econornic progress of surrounding properties. RSG B / 43 {a� =• j�rr -�:!'"- ' '�/� � �_ � ��` ��Y.� i- cam.-'`��'' , , o - REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area ` ,.:.,. ., `.°_'' 'f",.'i;tr•. ti�;',;'la,5ZiC1;'..3,itr`•i.:'; - kk f�t , ,� ,Ei .`"-•'} + w-+Y=iti f. ±'�¢"ra •H,�'` 1. r..t y;? .Ty`•3'r .�.. <,r✓r, Imo.. •`j:( r Photo 21 The property shown above in photo 21 is located on Duboce Avenue and shows serious signs of dilapidation, deterioration, and neglect as evidenced by the condition of the dwelling unit. This potentially vacant/abandoned structure was damaged by a fire and has been deemed a substandard structure by the Building Inspection Department. Even though the windows and doors are boarded up, there is a significant cause for concern that squatters will inhabit the property and face injury or worse. This structure should be removed immediately, to eliminate any health and safety risks to residents of the community. RSG B / 45 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area ------- —--- ...--- ------------ — 4. I� 4 K •'�..s,.: -. .. .: is ... - Photo 22 This Truman Street property is in very poor condition and displays a complete lack of reinvestment by its owner which has resulted in serious dilapidation and deterioration. The residential unit suffers from exposed wiring, lack of paint, and damaged exterior building materials. Furthermore, the broken windows and doors indicate forced entry and possibly signal residential squatting which County staff indicates is a serious problem in the Project Area. According to County staff, unoccupied structures, such as this one, are oftentimes used for illegal activities such as drug use. RSG B / 46 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Construction Vulnerable to Serious Damage from Seismic or Geologic Hazards Pursuant to CRL Section 33031(a) (1), construction that is vulnerable to serious damage from seismic or geologic hazards is a condition that causes buildings, which are unsafe or unhealthy for persons to live or work in. In 1986, California adopted Senate Bill 547 requiring every jurisdiction in Seismic Zone 4 (includes all of Contra Costa County) to inventory its buildings constructed of unreinforced masonry by 1990, to adopt a loss reduction program, and to report progress.to the Seismic Safety Commission. According to the Northern California Chapter of the Earthquake Engineering Research Institute ("EERI"), with unreinforced masonry, walls tend to disconnect from buildings and fall outward, sometimes causing the building to collapse during earthquakes. EERI further claims that, "URM [unreinforced masonry] failures have been responsible for deaths in California Earthquakes since at least 1868, and as recently as Loma Prieta in 1989 and San Simeon in 2003." The construction of buildings and/or structures that do not meet current uniform building standards pose a serious threat to residents; workers, and patrons that live or work.in the Project Area. Buildings and/or structures that are not in compliance or retrofitted with current uniform building standards can, in the event of a seismic or geologic hazard, have devastating results. Section 10.6 of the 2005-2020 Contra Costa County General Plan ("General Plan") indicates that structures that are built in the County will, based onn-a fifty year forecast, likely be subjected to a severely damaging Earthquake. The General Plan also dictates that the County is located in an area of high seismicity, which poses a credible threat to.Project Area residents, workers, and patrons. California State law mandates that a jurisdiction must prepare an inventory of unreinforced masonry structures and adopt local ordinances to improve or replace these types of structures. The Project Area does not currently contain any unreinforced masonry structures but may need to address structures in need of proper retrofitting. Within the Project Area, the County has designated two major areas that have a high to moderate susceptibility to liquefaction. These areas are located in the northern portion of the Project Area, along'Parr Boulevard, and to the eastern portion of the Project Area, along Richmond Parkway. The Project Area's high to moderate susceptibility to liquefaction as well as its close proximity to the Hayward Fault causes a.legitimate concern regarding the health and safety of its' residents, workers, and patrons. In addition, the entire Project Area is located within the 100 year flood zone, which is an equally important cause of concern. The Agency's current projected Five Year Non-Housing projects and activities, as detailed in the Five-Year. Implementation Plan ("Implementation.Plan"), call for the implementation of a drainage plan for industrial lands north of Parr Boulevard, the remediation of FEMA designated flood zones, and improving Wildcat and San Pablo creeks to meet 100 year flood standards. These redevelopment non-housing projects and activities are necessary to address flooding and other physical problems. Funding for these projects require an increase in the Redevelopment Plan's tax increment limitation and bonded debt limit. Exhibit B-2 presents North Richmond Planned;Unit District Map, which illustrates the Project Area's susceptibility to seismic and geologic hazards, such as liquefaction and flooding. The map indicates that there is a high to moderate susceptibility to liquefaction in the Project Area between Parr Boulevard and Brookside-Drive; and along Richmond Parkway, which stretches from the Project Area's eastern boundary to Central Street to the west. RSG B / 47 00 � v O m w CC Z a. -30 0 Ln ;0 Jz LL ON O. N y fn; "Cal o p. } 0 w W Z = J u z �: � b w J ¢ 0 w ma 0 a O O a c�P�� w LL N Z m W O u t r.s z F m � uo oy D _ a °' '-' �+ LL a LL C a;ym oIS �o wV a: ¢3at_ Nir ?'t" r�.?'na-V rgc�' w m.0�.m c Tm Y .Soc c� actio O 'EEEE- c�O cn�p m°L m'v � N3 d LLLLiLL�`eg ¢al Edo n'i v y m u`�Ey�$ YaF LU iY ��iiJJ ll��JJ ao� zc `x�f x>O .mfs��U3mxv:n'ao ir-T.-�. I._ " ! • Y fS7 i i `+� _ .� i 4y4_ lam_:_•__!I:. - c `. ..: � In Cc � V = ...._4"-tt)-� a: ;:::.:....:......:. •.'.ji��vy.'-j.-.V1�j•- n�e�. I'...1� ;=�� .. N _ - it CL 1A, 41 • �s J O > j 7 0 p C: z' d� .o_ oN _._..__.........._..........._ a� m \• o. V u Uz W 0 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Faulty or Inadequate Water or Sewer Utilities Pursuant to CRL Section 33031(a)(1), the existence of faulty or inadequate water or sewer utilities are defined as conditions, which can cause a building or structure to be deemed unsafe or unhealthy for persons to live or work. Within the Project Area, there are many instances where the existence of faulty or inadequate water or sewer utilities hinders the viable use of properties. While these conditions are not visible, their existence is substantiated by County sponsored studies and reports evaluating infrastructure needs. According to the North Richmond Shoreline Specific Plan ("Shoreline Specific Plan"), there are a number of capital improvement projects needed to improve water and sewer infrastructure as evidence of soil, groundwater and surface water contamination in the Project Area.-The Shoreline Specific Plan Area`overlaps the boundaries of the Project Area just north of Parr Boulevard, as far east as Goodrick Avenue, and as far west as San Pablo Bay. In order to effectively redevelop the Shoreline Specific Plan Area ("Shoreline Plan Area"), the Agency would need to remediate any and all infrastructure deficiencies as well as contaminated water sources before moving forward with the .implementation of Agency project plans. Increasing the proposed financial limits, as described in the 2008 North Richmond Amendment, would provide the Agency with the necessary capital to successfully redevelop the Shoreline Plan Area. The Shoreline Plan Area identifies the need for expansion of a sewer main along Parr Boulevard and an installation of a storm drain system to drain areas into the City of Richmond system or into detention ponds for use in the wetlands. Furthermore, the Shoreline Specific Plan reveals that there is evidence of varying degrees of soil, groundwater and surface water contamination in the Project Area due to historical heavy industrial manufacturing. If these problems are not remediated, the health and safety of residents, workers, and patrons in the North.Richmond community is at risk. Economic Planning Systems Inc. and Berryman & Henigar5 collectively prepared a report for the Project Area in 2006 ("[:-:PS Study"), which is hereby included by reference in this report. The EPS Study further substantiates the existence of faulty or inadequate water or sewer utilities. The study details and evaluates the infrastructure needs, costs, and financing options for the industrial portion of the Project Area. Some of the key findings of the EPS Study relate to the infrastructure challenges that exist in the Project Area, such as a lack of adequate backbone infrastructure to support new development, inadequate water transmission and wastewater facilities, and inadequate drainage facilities. According to the EPS Study, Area C, which is the industrial area bounded by San Pablo Creek and Wildcat Creek to the north and south, suffers from a lack of adequate storm drain facilities and requires improvement in sewer collection and water facilities to support an increased level of development in the . area. Some of the other specific infrastructure needs are the improvement of water distribution along Parr Boulevard, Pittsburg Avenue, Central Avenue, and Goodrick Avenue as well as wastewater improvements along Goodrick Avenue and Pittsburg Avenue. It is important to note that the aforementioned deficiencies, if not corrected, can lead to increased development costs..and curb price competitiveness, which is key to the success of the Project Area. s Economic Planning Systems Inc. is a land economics consulting firm and Berryman and Henigar provide building inspection services. RSG B / 49 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Additionally, the Environmental Protection Agency ("EPA") Assessment Data for the San Pablo Bay Watershed, which was compiled in 2002, provided a detailed description of the water quality of Wildcat Creek and San Pablo Creek, two bodies of water that are located within the Project Area. According to the data, both bodies of water are described as impaired and exhibit a yellow color, which signifies that water quality conditions currently support all uses, but appear to be threatened and declining. Furthermore, the EPA's Total Maximum Daily Loads ("TMDL") list gives a description of the contamination that exists in the impaired water bodies. The list indicates that the Wildcat Creek and San Pablo Creek contain high levels of diazinon and other toxicity levels. If the levels of contaminants continue to increase or reach unsafe levels, the health and safety of the residents, workers, and patrons will be significantly affected. Conditions Hindering the Viable Use of Buildings/Lots Pursuant to CRL 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: 1. excessive lot coverage/inadequate setbacks 2. a lack of parking 3. inadequate vehicular access 4. inadequate loading areas 5. buildings being used for purposes for which they were not originally constructed or intended 6. poor building or site layout 7. poorly constructed additions 8. substandard exterior building materials 9. outdoor storage or production 10. when substantial garbage/debris/stagnant water exist Many of these characteristics of substandard or defective design exist throughout the Project Area. Of the 1,202 parcels in the Project Area, 279, or 23%, exhibit one or more characteristic of parcels or buildings suffering from substandard or defective design as determined by the 2007 Field Survey. The most prevalent conditions preventing or hindering the viable use or capacity of buildings or lots in the Project Area include; a lack of parking, outdoor storage or production, and parcels containing significant garbage and debris. The following photographs are a sample of the Project Area properties whose viable use is hindered based upon the aforementioned conditions. The pictures are a compilation of photographs taken by RSG during the 2007 Field Survey and by local youth in the North Richmond community, which were supplied by the Redevelopment Project Manager, D'Andre Wells. RSG B / 50 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area �® ML.1 Photo 23 This property in photo 23, which is located along First Street, is a prime example of inadequate on-site parking. Additionally, there was evidence of an illegal garage conversion, may potentially affect the structural integrity of the building, creating a dangerous living environment. During the 2007 Survey, there' were a number of instances where property owners and residents were unable to find adequate parking space and were forced to park on the street or on their own lawns. The placement of the vehicle on this property may present a safety hazard in the event of a serious emergency. Furthermore, the property suffers from an obsolete design that affects the viable use of the structure. Given the development standards detailed in the North Richmond Redevelopment Area Planned-Unit District Program, this property could not be redeveloped under current standards, which require that single-family residences with three bedrooms or less include a minimum of a one-car garage and one car parking in the driveway per unit. RSG B / 51 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area xy, Photo 24 The property in photo 24, located on Giaramita Street, illustrates an example of a property that exhibits a defective design. This photo .illustrates inadequate pedestrian access as evidenced by the chain link fence that extends into the public right of way and covers the sidewalk. Further, the use of chain link or other metal fencing violates the design guidelines identified in the Planned-Unit Zoning District Program. O RSG ' B / 52 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area - - MN d R.•' 1.-�. .F .ice X Photo 25 may., ,sx;•v;•"W:;:.a.::'�• Photo 26 The properties located along Pittsburg Avenue, as shown by photo 25 and 26, show signs of excessive outdoor storage and production and vehicle storage. These properties are also not properly screened, which violates the non-residential development standards set for the Planned-Unit Zoning District Program. The program states that any outdoor storage and maintenance area should be screened from view from public streets. o RSG B / 53 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project.Area . :�` ;z: Qs. iw. vim;. N;-' r • �• � •�.,, ' `1.+ Vic;-<�v'T'' -.f _`�; .:�s�' ts3"-A� .•,k�i?'y T�Ji;��, }�i,•ll�.�;;�:.Xs r ��'s: i - `s 'x- Photo x.. , Photo 27 This parcel of property in photo 27, located by the back side of the railroad tracks between 7th street and Rumrill Road, depicts a common problem that has plagued the Project Area for a number of years, namely illegal dumping. This type of blighting condition creates a number of problems such as rodent, mosquito, and insect infestation, contamination of the water supply from chemicals contained in the garbage that can play host to infectious bacteria. If allowed to continue, the safety and health of the residents, workers, and patrons of the North Richmond community are at a serious risk. Furthermore, the presence of illegal dumping helps perpetuate the negative perception of the North Richmond community and severely hinders its economic progress. According to a Contra Costa Times Article dated October 10, 2007 and entitled, East Bay Roundup North Richmond, illegal dumping is still a serious problem and takes a "concerted effort by police, the sheriff, and the Contra Costa District Attorney's office" to. prosecute those who partake in illegal dumping in the Project Area. O RSG B / 54 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Incompatible Adjacent or Nearby Land Uses Land uses are found to be incompatible when certain properties are not congruent with adjacent or nearby uses, which prevent the economic development of those parcels or other portions of the project area and/or present potential health and safety hazards to neighboring parcels. The results of incompatible uses can include noise pollution, unsafe/ unhealthy conditions for neighboring residents, commercial/ industrial traffic through residential neighborhoods, and hindrance of the economically viable use of buildings and lots. Such properties may also exhibit signs of economic blight as various incompatible uses can also result in stagnant property values or impaired investment for adjacent properties. The Project Area contains 11 incidents where properties contain land uses which are incompatible with nearby or adjacent uses. These results are derived from the 2007 Field Survey and county assessor's parcel data research. Accurately assessing the compatibility of adjacent or nearby land uses requires more than visual observation from the public right- of-way. Under certain circumstances, for example, you may have adjacent properties being used for single family residential and industrial uses. Further review of those properties zoning records, however, may reveal that the zoning is industrial therefore making the residential property nonconforming and incompatible. If the residential unit on the commercial/industrial zoned property were to be recycled the property could not be redeveloped for its current land use. Therefore, this is an incompatible use that can substantially hinder or prevent the viable use or capacity of buildings and lots. The following discussion details a sample of the incompatible adjacent or nearby land uses in the Project Area. RSG B / 55 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency Noah Richmond Redevelopment Project Area Ok ,.(:':t':�... ..�. •is .: k:�.. a.,�i;=:r ..�xs:. `•ii�` w;Siwe::{`:c',^':::'::', 4 "s�C3v,: '>r -`s: .:L •�,� "-"':5'{,r..1=dz+ "�:?�';''f�`:.:a,:: _ "i�.,_ i':r,�.:.ii::c;d.:<.:xt'r_y�;:.� ..: _ .. s K. Photo 28 Photograph 28, taken during the 2007 Field Survey, depicts a property that is located along Brookside Drive and exemplifies an adjacent incompatible land use. According to County Assessor's parcel data, the single-family residence, depicted to the right, was built on a single parcel that is zoned -for heavy industrial.use. This current use of the property violates the land use designations identified in the North Richmond General Plan Land Use Map, which is contained in the North Richmond Planned-Unit Zoning Program. Properties of this nature may also exhibit signs of economic blight as various incompatible uses can create stagnant property values or impaired investments for adjacent properties. O R,SG B / 56 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency Norah Richmond Redevelopment Project Area Economic Blighting Conditions In The Project Area The previous discussion outlined the sphysical conditions, of blight remaining within the Project Area. CRL Section 33031(b) describes the economic conditions that cause blight. In order to show that the Project Area remains blighted, it must also contain one or more economic conditions described in CRL Section 33031(b). These economic conditions are generally assessedin terms of depreciated :property values, low lease rates, a lack of commercial facilities, residential overcrowding., an excess of bars and other adult-oriented businesses, and high crime rates. In order to assess economic blight in the Project Area, data from brokers, market studies, DataQuick, MetroScan parcel data, EnviroStor, the Sheriff, and other resources were collected and analyzed. The purpose of the analysis was to determine what conditions may be adversely affecting the health and safety of persons in the Project Area, as well as the economic viability of the North Richmond community. The following discussion-substantiates the seriousness of several indicators of economic blight within the Project Area. Exhibit B-3 on the following page illustrates the portions of Project Area affected by economically blighting conditions. RSG B / 57 00 OC Lf') D m ce a W m Y aEE ILL. \ ce - `Rt - LLI CL LU LU \\ T \ Q : w \ \ OLU lx \\ �y U G!.. (U Q ~ \ L u 0)u , V Q v W �� o m 4, O o lo > C O \ c N c^ n . O 0 Q. \ s_ C CLZ 'o CU O QI n7 y Z L - U N U _ L C.' ID .� 6_1 = E cri L O O C� a5 W N n� m Ja �. al v N N = a y u 'U Q Q d 41 V i-C co n �� F O :n �. 1 . 0 o al m o ru C Z n u � u0 F- Q ;may 0 rid n u � E W. C- a_ .os3LN (Dd O� O v � �J�TTV. Or LJ Z U m C i U Z O REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency . North Richmond Redevelopment Project Area Depreciated or Stagnant Property Values According to CRL, depreciated or stagnant!.property values are! a condition that causes economic blight. Property values depreciate,or stagnant when blighting factors that exist within an area impede economic progress. In general,. residential property values are significantly lower in the Project Area when compared to surrounding communities and the County. As evidenced by Table B-4, home sales in 2006 averaged $299 per square foot for the Project Area which is 22% lower than the City of Richmond, 24% lower than Pinole, 26% lower than San Pablo, 40% lower than EI Cerrito, and 29% lower.than Contra Costa County as a whole. NORTH RICHMOND REDEVELOPMENT PROJECT AREA Table B-4 HOME PRICE PER SQUARE FOOT COMPARISON Location 2006 Price/Sq. Ft. North Richmond Project Area $299 Richmond/1 $381 Pinole $395 San Pablo/1 $406 EI Cerrito $499 Contra Costa Count $419 /1 This value includes the North Richmond Project Area. Source:Data Quick Information Systems, MetroScan-a product of First American Real Estate Solutions, L.P. Further evidence of the Project Area's depreciating property values comes from property sales data obtained from MetroScan. It is important to first highlight that traditionally, a property sale will cause that property's assessed value to be reset to the new sales price then considered market value. According to property sales data obtained for the time period between January 2002 and December 2006 there were 650 property sales transactions that occurred within the Project Area of which 112 properties sold at a price per square foot higher than their current 2007-08 per square foot assessed value. In other words, over the last five years, 17% of the 650 properties sold within the Project Area have a lower assessed value today than what their market value was at the time of last sale. This fact indicates that nearly 1 of every 6 properties sold within the last five years in the Project Area has had a reduction in assessed value due to the Project Area's declining real estate market. Examples of a property that can cause depreciating values are shown in photos 29 and 30. RSG B / 59 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area S 041.d... F Y a: Photo 29 -c f � � .i, �t Photo 30 The following summary describes the blighting conditions that are depicted in photos 29 and 30: The property located along Silver Avenue, as shown by photo 29 and 30, displays a vacant/abandoned structure, which lacks proper investment by the owner as evidenced by the serious deterioration and dilapidation that has occurred. over time. The property is covered with trash and debris, which can create a haven for rodents and insects and breed infectious diseases. Furthermore, the property contains a structurally unsound roof, which lacks sufficient support over the front door and poses a significant health and safety issues. The structure also suffers from broken doors and windows, which may invite squatters and encourage illegal activities. Photos 29 and 30 depict a property to the left of the.blighted RSG B / 60 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area structure, and are meant to show the contrast of blighted versus non-blighted properties in the Project Area. In addition, Photos 29 and 30 show how a severely blighted property may contribute to the depreciating and stagnant property values within the Project Area. Impaired Property Values Due to Hazardous Wastes Pursuant to CRL Section 33031(b)(2), impaired property values, due in significant part to hazardous wastes,' is an economic blighting condition. According to J.C. Norby & Associates, a professional real estate appraisal company, case histories document devastating consequences for many who have purchased, invested in, or loaned real estate impaired by chemicals and toxic compounds, and that in many cases, the cost of remediation has exceeded the property's market value. In order to assess ongoing environmental contamination within the Project Area, research was conducted using the Department of Toxic Substances Control ("DTSC") EnviroStor database. EnviroStor is an online research and Geographic Information System tool that allows you to search for information on investigation, cleanup, permitting, and/or corrective actions that are planned, being conducted or have been completed under DTSC's oversight. Thirteen Project Area properties are listed in the EnviroStor database as containing contamination, which qualifies it as a hazardous waste site. The existence of such an overwhelming number of hazardous waste sites can be deemed a contributing factor to the disuse of the Project Area. The remediation of these hazardous waste sites would be necessary to effectively redevelopment in the:Project Area. It is generally accepted that hazardous waste contamination and even the perception of contamination, whether real or not, can have. drastic affects on property values, however, measuring hazardous waste's impairment on property values requires specialized methodology. Short of a full property appraisal, it is somewhat difficult to fully assess how hazardous wastes may impair these sites' property values or the property values of nearby properties. It is generally accepted that hazardous waste contamination and even the perception of contamination, whether real or not, can have drastic affects on property values, however, measuring hazardous waste's impairment on property values requires specialized methodology. According to William Kinnard, author of, "Measuring the Effects of Contamination and Pollution on Property Values: The Focus of the 1991 Symposium.in the Context of the Current State of Knowledge," the following criteria are used for measuring the decreased market value of contaminated properties: 1. Cost to Correct 2. Reduced Marketability 3. Inability to Obtain Mortgage Financing 4. Reduced Net Operating Income 5. Higher Capitalization Rate Table B-5 presents a summary of the location of these hazardous waste sites as well as the type of contamination that each site contains, which may impair its value. According to William Kin nard's'measurement criteria, if these parcels were to be placed on the market, it is feasible that they would experience reduced marketability as well as high. remediation RSG B / 61 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area costs consequently impairing their value. It is generally accepted that environmental contamination, or even the perception of contamination, diminishes a property's value. According to Table B-5, one of the common causes of contamination in the Project Area is related to the everyday use and activities of automobile commercial businesses. Within the Project Area, there are auto dismantling sites, auto junkyards, and auto wrecking yards, which have produced contaminants from lead, gas, motor.oil, acid solution as well as organic compounds and metals. In addition, the California Department of Toxic Substances ("Department of Toxic Substances") has documented an instance of hazardous waste run- off that has contaminated water within the Project Area. Furthermore, there are storage yards used for construction purposes and metal recycling facilities that have contributed to the contamination of Project Area parcels with arsenic, lead, antimony, cadmium, nickel, diesel, oil, naphthalene, and PCB's. The aforementioned contaminants, located within the Project Area, increase the costs of redeveloping properties containing these contaminants as well as decrease the valuation of surrounding properties. More importantly, these contaminants pose a serious threat to the health, safety, and welfare of those that live and work in the Project Area. RSG B / 62 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area NORTH RICHMOND REDEVELOPMENT PROJECT AREA Table B-5 HAZARDOUS WASTE SITES Location Notes Contaminated with Lead, Copper, Ziric. 521 W Gertrude Ave Former auto dismantling site Former junkyard. Severe dark soil stains, 560 W Gertrude Ave evidence of tire fires. Site needs evaluation Former junkyard and auto dismantling site. Contaminated with Diesel,Gas, Motor Oil, and Naphthalene. RWQCB also 716 W Gertrude Ave investigating. Former auto junkyard. Potential contamination from dismantling of 816 W Gertrude Ave . automobiles. Site needs evaluation. Metal.recycling facility. Confirmed contamination from PCBS and Oil. Groundwater affected. Land Use 818 W Gertrude Ave restrictions in place. Contaminated with PCBS, multiple organic compounds, and metals. RWQCB 820 W Gertrude Ave investigating. Auto wrecking yard. Potential contaminates;acid solution,organic Garden Tract Rd,west of Parr Blvd compounds, and metals. Sanitary Service. Hazardous runoff flowing Parr Blvd and Garden Tract Rd into water. Auto wrecking yard. Contaminated with Lead, Gas, Motor Oil, PARS, Benzene. 11 Parr Blvd Open burning on site. 21 Parr Blvd Needs Evaluation Storage yard for construction materials and equipment. Contaminated with Arsenic, Lead,Antimony, Cadmium, Nickel, Diesel, Oil, Naphthalene, MTBE. Groundwater 155 Parr Blvd affected. 255 Parr Blvd Historical Contamination Site handles large quantities of hazardous substances. Potential contaminants include 2800 Radiant Ave Benzene, Xylenes, and Acetone. Source: California Department of Toxic Substances EnviroStor Database RSG B / 63 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area High Business Vacancies .& Low Lease Rates Pursuant to CRL Section 33031(b)(3), abnormally high business vacancies or abnormally low lease rates are an economic condition causing blight. Although there is not a wealth of published market data detailing business vacancy and lease rates for the North Richmond community, real estate professionals from Cushman & Wakefield were able to provide a limited amount of published data as it relates to industrial and office property. A universal problem with obtaining market data, as explained by various real estate professionals, is that it is common practice to gather and compile data for cities but data for unincorporated communities is not readily available. According to published market data, provided by Cushman & Wakefield, the North Richmond community exhibits higher business vacancy rates and lower lease rates than other areas of the County. Real estate professionals interviewed at Cushman & Wakefield confirmed that the area defined as Richmond, which includes the City of Richmond and the unincorporated community of North Richmond, suffers from high business vacancy rates and low lease rates when compared to the market average. High vacancy and low lease rates are often the consequence of other blighting conditions, such as dilapidated and deteriorated buildings, buildings of substandard and obsolete design, incompatible land uses, and high crime rates. Real estate professionals interviewed at Grubb & Ellis and CB Richard Ellis did not have data for the unincorporated community of North Richmond but did confirm that the aforementioned blighting conditions can contribute to high vacancy and low lease rates, as shown by the data provided by Cushman & Wakefield. Table B-6 illustrates the Industrial and Office vacancy and lease rates for the Richmond/North Richmond area. The vacancy rates include the space vacant and available both directly and through sublease, divided by the inventory. In addition, lease rates are based on square foot value. The Table compares these rates to the market average, which consists of the Bay Area and Contra Costa markets. NORTH RICHMOND REDEVELOPMENT PROJECT AREA TABLE B-6 LEASE AND VACANCY RATES Industrial Office Industrial Location Vacancy Rate Vacancy Rate Lease Rate Lease Rate (Warehouse (Manufact.) Distrib.) Richmond/North 9.26/o 19.1% $0.45 $0.49 Richmond Market Average 4.9% 14% $0.53 $0.57 Source: Cushman& Wakefield of California, Oakland Office, Mid-Year 2007 Report RSG B / 64 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Lack of Necessary Commercial Facilities Pursuant to CRL, a serious lack of necessary commercial facilities that are normally found in neighborhoods constitutes economic blight. CRL Section 33031(b)(4) lists grocery stores, drug stores, banks, and other lending institutions as necessary commercial facilities. There is currently a serious lack of grocery stores, pharmaceutical, bank, and financial institutions inside or even adjacent to the Project Area. The Project Area currently contains two convenience/liquor stores off of Market Avenue and .3rd Street and a number of other small convenience stores, which are concentrated south of Chesley Avenue and out of the Project Area. The closest grocery store, Raley's, is located in the unincorporated community of EI Sobrante, which is approximately 5 miles away from the geographic center of the Project Area. Currently, banks, drug stores, and lending institutions do not exist in the Project Area. The closest bank and drug store, located in the City of Richmond, are approximately 2.3 miles away from the geographic center of the Project Area. Excess of Bars, Liquor Stores, and Adult Oriented Businesses An excess of bars, liquor stores, or adult-oriented businesses that has resulted in a significant public health, safety, or welfare problem is a condition of economic blight pursuant to CRL Section 33031(b)(6). Located within the Project Area are two liquor stores and a market that, out of the few businesses operating in the Project Area, feature alcohol sales prominently. According to County staff, many of the liquor stores and markets located in the Project Area are havens for criminal activity and pose significant risks to the public safety and welfare of residents and workers of the Project Area. County staff indicates that one of the problem liquor stores located at 521 Market Avenue was, as of December 2007, a well-known hot spot for criminal activity and posed a significant threat to the health and safety of Project Area residents and workers. During the 2007 Field Survey, RSG documented that the aforementioned liquor store also contained a number of blighting conditions of such as deteriorated roofing materials, exterior building materials, and a sagging roof. On September 18, 2007, the Board held a hearing to consider the liquor store owner's appeal of the notice and order to abate the property. The Board ordered the property owner to either abate the property within 30 days or it would be demolished. Since the 2007 Field Survey, County staff indicates that the liquor store, located at 521 Market Avenue, has been demolished. A September 19, 2007 Contra Costa Times Article, Supervisors ensure liquor store closes, by Karl Fischer and Tanya Rose describes that the removal of the liquor store is a sign of relief for residents and County elected officials. According to the article, County Supervisor John Gioia states that the demolition of the liquor store, located at 521 Market Avenue, ,"empowers the community" and "removes a hot spot of criminal activity" in the neighborhood. Community activist Lee Jones echoes the sentiments of County Supervisor John Gioia when he says that, "Kids are shooting each other like Wyatt Earp. The store is causing problems." According to County staff, the removal of the aforementioned liquor store is a step in the right direction, but there are a number of remaining liquor stores in the Project Area that continue to exhibit comparable threats to the health and safety of community residents and workers. Another Project Area liquor store, located at 1546 3rd Street, faces some similar problems as the liquor store on 521 Market Avenue. County staff explains that it is not uncommon for liquor stores and markets in the Project Area to serve as a home for criminal activity. RSG B / 65 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area According to a Code Enforcement Officer for the Building Inspection Department, the liquor store at 1546 Td Street was cited on December 26, 2007 for violating its conditions of use by selling adult-oriented videos as well as illegally renting out units located above the liquor store. The Code Enforcement Officer also states that the illegal rental units were deemed substandard and contained blighting conditions such as broken windows, broken doors, and exposed wiring. In a December, 2007 San Francisco Chronicle article 'entitled, "Proposed Bill Would Help Cities Shut Down Nuisance Liquor Stores," Assemblywoman Loni Hancock is quoted as saying that liquor stores can become an "epicenter of drug dealing, vandalism, prostitution and shootings." Hancock goes on to say that, "liquor stores can be a tipping point for neighborhood deterioration." According to the article, Hancock is championing Assembly Bill 960, which would make it easier for cities such as San Francisco, Oakland, Berkeley and Richmond to shut down problem liquor stores. Within the Project Area, there is a higher concentration of liquor stores then all other types, of commercial businesses. These existing liquor stores and markets, while few in number, present serious risks to the health and safety of residents, workers, and patrons of the Project Area. Generally, they contribute to a lower quality of life and degrade the economic viability of surrounding properties and businesses, Which further perpetuate blighting conditions within the Project Area. Crime Rate A high crime rate that constitutes a serious threat to public safety and welfare is an economic condition that causes blight. The reality of a high crime neighborhood is that businesses and other investors are often unwilling to locate their businesses or invest private dollars into high risk neighborhoods, which further exacerbate other blighting conditions. Therefore, as structures age and begin to deteriorate and dilapidate the dollars needed to make necessary repairs are not reinvested by property owners, businesses, and other investors which often results in a downward spiral of blighting conditions. In order to document the impact of crime on the North Richmond community, information regarding the incidence of violent and other serious property crimes was collected from the Contra Costa County Office of the Sheriff and the Office of the Attorney General of the State of California. The California Attorney General has the duty to collect, analyze, and report statistical data, which provide valid measures of crime and the criminal justice process to government and the citizens of California. The Contra Costa County Sheriff's Patrol Division provides uniformed law enforcement services to the unincorporated areas of Contra Costa County and the contract cities of Danville, Lafayette, Orinda, Oakley, and San Ramon. In order to provide effective law enforcement services to the aforementioned territories, the Sheriff's Department operates a network of four Station Houses, each of which is commanded by a Lieutenant. Bay Station, whose jurisdiction spans from the Port Costa west on Highway 4 to Crockett on 1-80 and west to Richmond, provides law enforcement services to North Richmond. In addition to North Richmond, Bay Station also services the following unincorporated west-end communities: Tara Hills, Bay View, Montalvin-Manor, Crockett, EI Sobrante, Port Costa, Rollingwood, East Richmond Heights, and Rodeo. RSG B / 66 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Table B-7 includes a representative sample of comparable communities and territories for comparing North Richmond crime rates. The table includes crime rate data for each of the Bay Station jurisdictions (Bayo Vista crime rates are not included due to a lack of 2000 U.S. Census population data), all of Contra Costa County Sheriff Department territory, and countywide Contra Costa County. Crime rates for Bay Station jurisdictions were calculated based on calls-for-service data provided by the Contra Costa County Office of the Sheriff and the U.S. Census Bureau, 2000 Census data. An annual growth adjustment equal to that used on a countywide basis by the Demographic Research Unit . of the California Department.of Finance was applied to the 2000 Census data to account for population growth. It should be:further noted that countywide crime rate data is based upon information provided by the Office of the Attorney General of the State of California. Due to a difference in reporting sources countywide data may not'be consistent with other statistics represented in Table B-7. The crime rates represented in Table B-7 represent the number of calls-for-service on a per capita basis that result in the generation of a Sheriff's incident report for the following four violent offenses; homicide, forcible rape, robbery, and aggravated assault, and for the following three types of property crimes; burglary, larceny, and motor vehicle theft. Also included in the data are incidents of arson. The abovementioned crime categories are the same categories included among the Federal Bureau of Investigation ("FBI") Crime Index. The offenses included in the FBI Crime Index were selected due to their serious nature and potential drain on law enforcement resources. In each of the preceding four years, spanning from 2003 to 2006, crimes rates in North Richmond far exceeded those of all other Bay Station jurisdictions, Contra Costa County Sheriff Department areas, and countywide Contra Costa County. The North Richmond crime rates for 2003 through 2006 are 92.7, 70.4, 96.2, and 91.4 per 1,000 total population, respectively, or 106%, 56%, and 125%, higher than countywide Contra Costa County who had the second leading crime rate. Countywide crime rate data is not available for 2006, and East Richmond Heights had the second leading crime rate at 28.3 per 1,000 total population or 230% lower than North Richmond in 2006. For additional details please refer to Table B-7 below. In each of the preceding four years, spanning from 2003 to 2006, calls for services in North Richmond far exceeded those of all other Bay Station jurisdictions, Contra Costa County Sheriff Department areas, and countywide Contra Costa County. North Richmond calls for services for 2003 through 2006 were 92.7, 70.4, 96.2, and 91.4 per 1,000 total population, respectively, or 1,06%, 56%, and 125% higher than Contra Costa County as a whole. In 2006, Countywide crime rate data was not available but East Richmond Heights had the second leading crime rate at 28.3 per 1,000 total population, which was still 230% lower than North Richmond. For additional details please refer to Table B-7 below. RSG B / 67 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area NORTH RICHMOND REDEVELOPMENT PROJECT AREA Table B-7 CALLS FOR LAW-ENFORCEMENT SERVICES PER 1,000 POPULATION/1 Jurisdiction 2003 2004 2005 2006 North Richmond . 92.7 70.4 96.2 91.4 Tara Hills 19.9 23.5 21.9 16.8 Bayview 8.9 13.2 6.7 13.7 Crockett 22.1 22.7 20.8 24.5 East Richmond Heights 19.1 26.4 21.4 28.3 Rollingwood 7.6 7.5 9.3 20.0 Port Costa 4.1 28.5 24.2 8.0 El Sobrante 26.7 27.6 25.3 25.7 Montalvin Manor 7.8 5.7 5.0 5.5 Rodeo 19.8 20.9 40.5 23.4 Sheriff's Department/2 28.0 27.7 27.0 27.7 Contra Costa Count /3 45.0 45.0 42.8 - /1 Crime rates reflect the number of calls-for-service resulting in the generation of a sheriffs incident report per 1.000 total population. /2 Includes all Contra Costa County unincorporated territories plus the following contract cities:Danville. Lafayette,Orinda.Oakley,and San Ramon. /3 Crime rates for Contra Costa County are based on countywide crime data provided by the Office of the Attorney General of the State of California and population estimates provided by the Demographic Research Unit,California Department of Finance. 2006 crime data is not available at this time. Source:Office of the Sheriff Contra Costa County RSG B / 68 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Summary Of Physical And Economic Blighting Conditions The Agency's continued efforts have worked toward the physical and economic rehabilitation of the Project Area. However, 46% of Project Area parcels continue to exhibit signs of physical blight, such as deterioration and dilapidation caused by long-term neglect, defective and obsolete design, and incompatible adjacent land uses. Furthermore, between October 2006 and September 2007 there were close to 500 building and zoning code violations of which 52% of those were serious violations, creating unsafe and unhealthy conditions for persons to live or work. In addition, the lack of sufficient water and sewer infrastructure is a serious physical blighting condition in the Project Area. There are a number of County sponsored studies that document water and sewer infrastructure deficiencies throughout the Project Area, which if not remediated can create unhealthy and unsafe conditions for residents and workers as well as hinder the successful redevelopment of the Project Area. Additionally, economic blighting conditions are both substantial and prevalent throughout the Project Area. Residential home prices are 29% lower in the Project Area than countywide and 17% of the properties sold within the Project Area in the last five years have a lower assessed value today than they did at the time of their last sale- an indication of depreciating/stagnant property values. Furthermore, the high volume of hazardous waste sites identified within the Project Area represents another economic blighting condition that can severely impair property values. When combined with the Project Area's high business vacancies and low lease rates, lack of necessary commercial facilities, and very high crime rates, it is apparent that the economic conditions present in the Project Area are causing a reduction in, or lack of, optimal utilization of the Project Area to such an extent that it. constitutes a serious burden on the community. Throughout the Project Area there are, as previously described in this Section, a considerable number of blighting conditions which impose a serious physical and economic burden on the community. Based on the overwhelming number and pattern of both physical and economic blighting conditions identified,:there is no portion of the Project Area that is free from blight. This conclusion is based on the fact that while there are individual parcels that show no evidence of physical blight, they are frequently in close proximity to those in disrepair, as evidenced in Exhibit B-4. This checkerboard pattern of blighted and non- .blighted parcels, as shown in Exhibit B-4, illustrates that blighted parcels are not concentrated in any particular neighborhood and are widespread, which negatively impacts the Project Area as a whole. While some upgraded or non-blighted properties may positively impact neighboring properties, they do not outweigh the negative "spillovers" from blighted properties. Based on the observations and research in this section, it is evident that the Project Area continues to suffer from various physical and economic blighting conditions. Although progress has been made by the Agency, there has been limited private investment in the Project Area and further improvements are needed to alleviate current conditions. The 2008 North Richmond Amendment proposes to increase current financial limitations, effectively increasing the Agency's ability to continue to eliminate blight from the 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 RSG B / 69 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Project Area. These projects include upgrading and improving public infrastructure, improving educational opportunities, repositioning in the marketplace to take advantage of proximity and available land, working toward the continued enhancement of property values, enabling economic revitalization of commercial and industrial enterprises, and increasing, improving, and preserving the Project Area's supply of affordable housing. Section E provides additional detail of the proposed public projects that may be undertaken by the Agency in the Project Area and identifies the blighting conditions addressed by those public projects. In accordance with CRL Section 33451.5(c)(1), Exhibit B-4 illustrates the portion of the project area that is no longer blighted, the portion of the project area that is blighted, and the portion of the project area that contains necessary and essential parcels for the elimination of the remaining blight. Parcels necessary and essential for the elimination of the remaining blight include parcels already owned by the Agency that are slated for redevelopment and vacant parcels within the Project Area. Inclusion of these vacant parcels is necessary and appropriate because they are negatively impacted by the economic blighting conditions previously described in this section and are located adjacent to or in the vicinity of other blighted parcels. These vacant parcels are underutilized and,because of their proximity to other blighted parcels, are unlikely to be developed to their highest and best-use without redevelopment assistance. Furthermore, the elimination of blight on adjacent parcels may require the development or use of these vacant lots making the both necessary and essential for the elimination of remaining blight. RSG B / 70 r- m v � 01 > Q y N @ 0• CD W Q Q W 2 U 'R L J �y i+ Tfr: 4 t U. to o 1' c) cv C Vr L y C 0 r :J A :y Q W 0 o win N° � > � n ° Q (}1•(� L U N 4' @+U.q, coN Cj N.y �., 0 am urs, » ro �i 4 4 {1 po d � o �O L c 3r O. p V u U q O U. --I T'Z,u t.Y � NCG _ a o • @ � Q o u Z y 00 U2 SECTION Five-Year Implementation Plan CRL Section 33352(c) requires that the Agency prepare an Implementation Plan for the North Richmond Project Area pursuant to Section 33490. The Agency is not required to hold a separate public hearing on the amendment to the Implementation Plan and the 2008 North Richmond Amendment. The Agency has elected to hold the public hearings separately. The public hearing for the amendment to the Implementation Plan is scheduled for May 13, 2008. The Agency will ensure that a public hearing on the amendment to the Implementation Plan will be completed at or prior to the public hearing for the 2008 North Richmond Amendment. The 2004/05 to 2008/09 Implementation Plan adopted on January 17, 2006 ("Existing Implementation Plan") identified the Agency's. goals and objectives during the 2004/05 to 2008/09 planning period, and documented the accomplishments for North Richmond. The. Existing Implementation Plan also identified available resources and anticipated expenditures on identified proposed projects during. the planning period. The Existing Implementation Plan also described how the Agency would expand the supply of housing, spend its low and moderate income housing set-aside funds ("Housing Funds") and meet its affordable housing obligations. Section 33490 (c) of the CRL requires that at least once within the five-year term of an implementation plan, a redevelopment agency shall conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the redevelopment plan and the corresponding implementation plan for each redevelopment project in the jurisdiction and evaluating the progress of the redevelopment project. The mid-term review must occur no earlier than two years and no later than three years following the adoption of the implementation plan. The Agency's Implementation Plan for North Richmond has been modified to satisfy both the requirements of CRL Section 33451.5 (c) (7) and 33490 (c). The Agency's Draft Amendment and Mid-term Review of the Implementation Plan for North Richmond has been attached as Appendix A at the end of the Report. R'sG C7 SECTION Explanation of Why the Elimination of Blight in the Project Area Cannot be Accomplished by Private Enterprise Acting Alone or. Through Other Financing Alternatives Other Than Tax Increment Financing Section 33352(d) of the CRL requires an explanation of why the elimination of blight in the North Richmond Project Area cannot be accomplished by private enterprise alone, or by the use of governmental financing alternatives other than tax increment financing (with particular reference to the increase in the amount of tax increment revenue that would become available to the Agency as a result of the proposed 2.008 North Richmond Amendment). This section was prepared in part by the Agency's fiscal consultant Fraser& Associates. REASONS FOR CONTINUING TO INCLUDE TAX INCREMENT FINANCING The Agency intends to complete its program of redevelopment in order to alleviate blight and create and improve affordable housing in the Project Area. The cost of that program, as described in this part of the Report, will total over$277.million in 2007 dollars, of which $177 million will be funded through tax increment revenues. When all costs are included and the impact of inflation has been added in, as shown on Table D-1, the costs for redevelopment will reach over $744 million. Given the remaining needs of the Project Area, and the lack of other ongoing funding sources, the Agency will need to look to tax increment financing as a major source of funding. Neither the County nor the private sector has historically been able to finance a redevelopment effort of this type. As required by CRL, the Agency will continue to look to other funding sources to assist in the redevelopment effort. However, tax increment is needed to fill funding gaps between the costs identified and these other funding sources. In addition, most of the elements of the program of redevelopment have little or no alternative funding sources. Other funding"sources also have serious limitations. Grants from other levels of government are sporadic and difficult to obtain. Assessment districts have. been used to fund certain activities, but they can only be set at a level: where private development can economically absorb them. Development impact fees are also being used by the Agency. Even with each of these other sources of revenue, the funding gaps still remain. Tax increment revenues will also be generated by the activities proposed by the Agency. Tax increment provides a stable source of.revenue that will continue to grow as the Agency's redevelopment efforts spur private investment. In addition, such revenues can be leveraged in the form of tax allocation bonds and provide a large source of capital financing. For each of these reasons, tax increment financing continues to be included in the Amended Redevelopment Plan. P RSG FA FR4SER&ASSOCIATES D / 73 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Table D-1 Contra Costa County Redevelopment Agency North.Richmond Project Area FINANCIAL FEASIBILITY ANALYSIS (000's Omitted) Future Value Resources Beginning Balance 10,568 Total Tax Increment Revenues 711,528 TA Bond Proceeds 96,862 Investment Earnings 6,826 Other Revenue Sources 8,993 Total Resources $834,777 Expenditures Section 33676 Allocations 15,163 Property Tax Admin Fees 6,404 AB 1290-Tax Sharing 182,882 Debt Service- 1999 Bonds 2,548 Debt Service-2007 Bonds 32,019 Debt Service- New Bonds 178,800 Development Assistance Program 22,523 Public Improvements 137,875 Community Improvement Program 2,288 Youthbuild Program 1,500 Housing.Progarris 139,273 Administrative Expenses 23,584 Total Expenditures $744,860 Ending Discretionary Balance 89,918 Source:Fraser&Associates RSG FA FR4SER&ASSOCIATES D / 74 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area RELATIONSHIP BETWEEN THE NEED TO AMEND THE FINANCIAL LIMITS AND THE COST OF THE CONTINUING PROGRAM OF REDEVELOPMENT The provisions of the CRL require that when-an agency proposes to increase the financial limitations of an existing redevelopment plan, it must identify the remaining blight within the project area, identify the portion, if any, that is no longer blighted, and identify the projects that are needed to eradicate the remaining blight. In addition, the relationship between the costs of those projects, the amount of increase in the limitation on the number of dollars proposed to be allocated to the agency and the agency's ability to eliminate remaining blight must be identified. Both the Agency and the Board of Supervisors must also make a finding that (1) significant blight remains within the project area and (2) the blight cannot be eliminated without the establishment of additional debt and the increase in the limitations on the number of dollars to be allocated to the agency. The Agency's proposed amendment includes'an increase in the number of dollars to be allocated to the Agency (tax increment limit). This amendment is needed in order to complete redevelopment program activities and eliminate remaining blight. Without the amendment, the Agency will have insufficient financial capacity to fund additional redevelopment activities. As provided for in the existing Redevelopment Plan, the total amount of tax increment the Agency is eligible to receive is $60 million. The Agency has received cumulative tax increment of approximately $13.1 million through fiscal year 2006- 07, leaving $46.9 million in funds that can be received under the current tax increment limit. Approximately $36 million of this is committed to existing obligations, leaving only $11 million for new project costs. The Agency also has $24.2 million in principal outstanding on bonds. Thus, the Agency has almost reached the $30 million total bond limit. Given the current tax increment limit, the Agency will need to repay the outstanding bonds before they fully mature in 2036-37, since the current tax increment limit is projected to be reached in 2015-16. As part of the bonds that were issued in 2007, the Agency also placed $7.6 million into a bond escrow account in order to avoid exceeding its bond and tax increment limits. Those funds can only be released if the Redevelopment Plan is amended to increase the tax increment and bond limit. The escrow. funds are needed, along with the future growth in tax increment, to complete Project Area activities. The total estimated cost of the Agency's program of redevelopment, including all obligations and interest costs, is $744.9 million, as shown on Table D-1. A portion of these costs are projected to be funded with sources other than tax increment (interest earnings and other revenues). A portion of the expenditures (the Section,33676 Allocations) are also not subject to the tax increment limit. Overall, the Agency is projected to need approximately $704 million in tax increment. Without an amendment to the financial limits, the Agency will be unable to complete its program of redevelopment and alleviate blight. In summary, the current financial limits restrict the Agency's ability to issue new debt to finance remaining redevelopment activities. By increasing the tax increment and bond debt limits, the Agency will have the financial resources to complete an effective redevelopment program aimed at eliminating remaining blight and constraints to development in the Project Area. The Agency will not have the ability to assist in the elimination of remaining blight unless the existing financial limits are increased by adoption of the proposed amendments. O RSG Fz FRi4SER$ASSOCIATES a 75 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area WHY OTHER GOVERNMENTAL FUNDING SOURCES ARE INADEQUATE TO ELIMINATE BLIGHT The County of Contra Costa receives Community Development Block Grant funds. The purpose of these funds is to develop viable communities and expand economic opportunities primarily to low and moderate income people. These Federal funds are very limited and there are many competing communities, programs, and projects seeking funding. Other Federal Grant programs are very limited in scope and frequently require matching funds from the local jurisdiction. Given the restrictions placed on these funding sources, redevelopment of the Project Area would not be feasible if the Board relied to any significant ,extent on such funding. Although the Board will apply for such funding if it should become available, this funding source cannot be counted on to achieve the Board's funding needs to address blighting conditions. Funds from the State of California are also very limited. The State is currently experiencing an estimated $8-16 billion deficit for 2008-09 and the governor is currently seeking a 10 percent across-the-board cut to help close the budget shortfall. In addition, the State has a structural deficit so future budgetary issues will continue for a period of time. In 2006 voters in California passed Proposition 1C, 1E and 84 to help fund capital infrastructure improvements throughout the State, but these funds are largely earmarked for certain State programs and are focused on disaster preparedness, storm water, water and park improvements. State Housing and Community Development bond and grant programs are largely focused on affordable housing needs and communities throughout the State must compete for a limited pool of funds. In the. past, the County has sought State funding however, the State has indicated that there are no funds available to fund the level of the improvements needed. The County and Agency will continue to seek and apply for any funding that becomes available; however, these sources cannot be relied upon to complete the projects needed to address blighting conditions in the Project Area. WHY PRIVATE ENTERPRISE ALONE CANNOT ELIMINATE BLIGHT The Board has historically encouraged property owners to invest in improving their property. In fact, the Board has provided matching funds to help leverage private investment in rehabilitation and new development. Although the County and the Agency will continue to leverage private financing sources to fund projects, these have not and likely never will be sufficient for the type and amount of improvements required. Financial assistance from the County, state.and federal government may be used by the Agency to fund redevelopment program expenses. The County general fund is currently constrained and is not a source for the potential funding of redevelopment. During the period from 2002-03 through 2004-05, the:. County's expenditures grew faster than its revenues, resulting in deficit spending. In 2006-07, 'the County was able to balance its budget through the cutting of services and by supplementing revenues. For 2007-08, proposed expenditures exceeded revenues, and so departmental budget requests were once again paired down. It is unlikely that the County general fund will be in any position to assist with the redevelopment effort needed in North Richmond. P RSG FA RZ4SER$ASSOCIATES D i 76 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Assessment districts and Mello-Roos Community Facilities Districts are examples of public/private partnership financing mechanisms where the actual cost of financing is borne by private interests, however, the mechanism must be facilitated by a governmental entity. 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 North Richmond 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 County Board of Supervisors cannot form a district over a property if the owner disapproves, making creation of new districts very challenging. Assessment districts impose a financial burden that area businesses and potential developers may be unable to bear. As indicated by the continued presence of blighting conditions, which can be found throughout the Project Area, some property owners do not have the resources to maintain their properties, much less rehabilitate them or pay for area-wide improvements such as those that may be funded through assessment districts. Similar to Assessment Districts, the 1982 Mello-Roos Community Facilities Act authorized the formation of a Community Facilities District (CFD) to finance capital improvement projects and to pay for ongoing operations and maintenance of certain facilities. Formation of a CFD requires extensive front-end investment and the affirmative vote of two-thirds of the affected property owners where the vote is weighted based on the quantity of acres owned. For this reason CFDs are typically most successful where only one or a very limited number of property owners are involved — usually in vast undeveloped areas under a single ownership. These features make successful CFDs very difficult to accomplish with the inclusion of existing occupied properties within redevelopment project areas, are proposed within Project Areas. The County has already established a CFD for public works facility maintenance and storm wafer management that will only apply to new development. Similarly Public Utility Districts provide a mechanism for issuing bonds secured by the revenues of a utility district to pay for capital improvements, but these too require approval by a majority vote of residents of the district. This constraint makes their use in redevelopment project areas rather uncommon. Business Improvement Districts (BID) and Property and Business Improvement Districts (PBID) allow business districts to establish an assessment that generates revenue to support enhanced services to a designated area. BIDs are financed through an additional fee paid by businesses within the designated area, and the fee is typically added to the annual business licensing ,charges. PBIDs provide for an assessment on commercial property and typically result in substantially more revenue generation. PBIDs are therefore more apt to have a greater positive impact on the local commercial district, however, their creation requires petition support from businesses that would pay more than. 50 percent of the annual fee to be collected from the proposed area. They also have a cap on assessments and a five-year maximum life requiring a new petition process to renew the fee. Some community stakeholders in The North Richmond have indicated their interest in pursuing a BID or PBID. 'The Board could provide an important source of seed capital to help bring such a funding source to fruition. However, the amount of capital that could be raised from the limited number of commercial enterprises in. The North Richmond area RSG FA FR4SER&ASSOCIATES D i 77 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area would be very limited. The revenue may helpful in funding promotion and management activities, but would not be adequate to fund the level of infrastructure and capital investment needed to address blighting conditions throughout the area as identified elsewhere in this Report. Finally, the prevalence of dilapidated and deteriorated buildings, depreciated or stagnant property values, and other adverse physical and economic conditions affecting individual private properties, particularly along the Highway 12 commercial corridor, as detailed in Section B above, is itself a direct indicator that the private sector alone has been unable to marshal the private debt and equity resources to overcome such problems, and needs a catalyst, in the form of strategic redevelopment investment by the Agency, to overcome these adverse private property conditions. For these reasons, it cannot be reasonably expected that private enterprise acting alone would-have the means to accomplish redevelopment of the Project Area. Without the provision of tax increment revenue financing, sufficient revenue would not be available to . fund the needed programs and improvements. REASONS FOR CONTINUED USE OF TAXINCREMENT The provision of continuing tax increment revenue,.through the proposed increases in the caps on receipt of tax increment and bonded indebtedness, must be included in the Amended Plan because other sources are not available or are insufficient to finance the remaining costs of redeveloping the Project Area. Continued utilization of tax increment financing, as made possible through the proposed 2008 North Richmond Amendment, 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 Project Area's economic base. 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 Project Area and its surrounds. Please refer to Section E, for a further discussion of the reasons for the proposed dollar amount of increase in the caps for receipt of tax increment,revenue and the issuance of bonded indebtedness. O RSG FA FR4SER&ASSCUATES D i 78 SECTION Proposed Method of Financing, Including the Economic Feasibility of the Amendment CRL Sections 33352 and 33451.5(c)(5) and (6) require that this Report include information on the proposed method of financing, including information on the economic feasibility of the Redevelopment Program under the proposed Amended Plan, and the reasons why the Redevelopment Program cannot be completed without the proposed 2008 North Richmond Amendment (including the proposed increase in the caps on the receipt of tax increment revenue and issuance of bonded indebtedness). This Section was completed by the Agency's fiscal consultant Fraser& Associates. The Agency has previously used tax increment funds to pursue redevelopment opportunities in the Project Area, and intends to continue improvements to ameliorate blighting conditions. To the extent possible, the Agency will use State and Federal funds to implement improvements and programs, 'but these funds are not adequate to address the level of infrastructure improvements, economic development and public facility construction and improvements that are needed in the Project,Area. The following narrative elaborates on the proposed method of financing, and the economic feasibility of the amendment. All tables referenced in•this Section can be found at the end of this Section. PROGRAM COSTS The costs to implement the redevelopment program are summarized on Table E-1 in current (2007) dollars. The programs include the Development Assistance Program, the Public Improvement Program, the Community Improvement Program, the Youth Build Program and the Low and Moderate Income Housing Program. In addition to the program costs shown on Table E-1, the Agency will need to incur expenses for administration of the Project Area. Such costs will include staff time, legal and technical assistance, and the preparation of planning studies and reports. The total cost for the program of redevelopment is estimated at $277.6 million. Table E--1 also shows the amount of funds that the Agency has on hand. This amount is estimated at $16 million. The additional costs for the Agency's program are estimated at $261.5 million, of which $177.1 million is estimated to be funded through tax increment financing. The costs shown-on Table E-1 do not include the impacts of inflation or the interest costs associated with the borrowing of funds to' continue to implement the redevelopment program. They also.do not include negotiated or mandatory payments to the taxing entities. The mandatory payments will be required by CRL due to the removal of the debt limit and the increase in the tax increment limit that will occur due to amendments to the Redevelopment Plan. Finally, Table E-1 does not include costs related to outstanding obligations, including repayment of bonds. Each of these items has been included on Table E-5, which reflects the overall analysis of the Project Area's economic feasibility. Tax Increment Revenues Table E-2 provides an estimate of the tax increment revenues that could be generated over the remaining period to receive tax increment through 2037-38. The tax increment revenue projection is based on the following assumptions: (lie RSG FA ERASER&ASSOCIATES E i 79 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area ■ The Proposition 13 allowable inflationary adjustment of up to 2 percent annually. ■ A 3 percent increase to reflect changes of ownership. ■ New development activity shown on Table E-3. Total gross tax increment shown on Table E-2 is estimated at $711.5 million. Total tax increment has been reduced by the following liens and adjustments discussed below. Section 33676 Adjustment For project areas adopted prior to January 1994, taxing entities could elect to receive additional property taxes above the base year revenue amount. Such amounts are calculated by increasing the real property portion of base year values by an inflation factor of up to 2 percent annually. Taxing entities can receive a proportionate share of such revenues if they elected to do so prior to adoption of the redevelopment plan. Those taxing entities that are eligible to receive such payments have been included on Table E-2. It should be noted that payments pursuant to Section 33676 are.not a part of the allocated. tax increment of the Project Area and are not counted towards the tax increment limit. Property Tax Administrative Fees State law allows counties to charge taxing entities, including redevelopment agencies, for the cost of administering the property tax collection system. The fees have been estimated and shown on Table E-2. Housing Set-Aside Reflect 20 percent of total tax increment (less the Section 33676 Adjustment) that must be used for affordable housing. AB 1290 Tax Sharing Pursuant to 1994 legislation (AB 1290), the Agency is required to make payments to the affected taxing entities from the Project Area since the last date to.incur debt was deleted from the Redevelopment Plan. All payments are based on a three tier formula that is shown below. TIER PAYMENT REQUIRED 20% of the gross tax increment attributable to increases above the Tier 1 2007-08 assessed values during the remaining term the Agency receives tax increment. Tier 2 Beginning in 2018-19, an additional payment.equal to 16.8% of the gross tax increment attributable to growth above value in 2017-18. Tier 3 No Tier 3 payments are due since the Project Areas will no longer be receiving tax increment in the year in which this tier is triggered. RSG FA FRASERASSOCIATES E i 80 REPORT TO THE. BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area New Bond and New Tax Increment Limits The new limit on the principal amount of.bonds that can be outstanding at one time has been calculated on Table E-4. The limitation is based on the program costs shown on Table E-1 of$177.1 million. To this amount, we have added a 20 percent factor for contingencies. The Agency will also incur various costs when issuing bonds. Therefore, a 15 percent factor has been applied for finance costs. The Agency also has approximately $24.2 million in principal outstanding on tax allocation bonds previously issued. Based on these factors, the new bonded indebtedness limit for the Project Area has been established at $270 million. The additional program costs, inclusive of contingencies and finance costs, have been assumed to be financed as a single borrowing (a total of $245.8 million of the $270 million bond limit). For purposes of estimating interest costs; we have used an interest rate of 6 percent and a term of 25 years, which results.in total interest of $222.9 million for the new bonds. We have also included interest on outstanding bonds, which totals $16.2 million. The Agency has also received approximately $13.1 million in tax increment through 2006- 07. Approximately $182.9 million in tax increment revenues is estimated to be used for pass through payments to the taxing entities, and property tax administrative costs are estimated to add $6.4 million. The total of these items, when rounded, equals $712 million, which is the new tax increment limitation included in the Amended Redevelopment.Plan. Proposed Financing Method And Economic Feasibility The proposed method of financing redevelopment and the economic feasibility of the Project Area have been demonstrated on Table E-5. The table compares the future projected tax increment revenues of the Project Area, plus other resources, to the existing obligations and program expenditures on a future dollar basis. It should be noted that the analysis shown on Table E-5 is based on one set of assumptions for continued implementation of redevelopment. It should not be considered the only means to continue to finance redevelopment of the Project Area. The analysis does indicate that the Project Area will continue to be financially feasible given the set of assumptions that underlie the projections. The primary assumptions in this regard are that the costs for redevelopment activities are as projected; that growth will occur in the Project Area as the Agency continues to remove impediments to development; and that the tax increment and bond limits will be increased. The financial analysis on Table E-5 begins with Agency resources on hand of approximately $10.6 million, as provided by Agency staff. Most of this balance reflects unspent bond proceeds from the Agency's prior bond issues. The total tax increment shown on Table E-5 has been derived from the amounts shown on.Table E-2. The tax allocation bond proceeds amount shown on Table E-5 include both the release of certain monies held in an escrow account from the 2007 bond issue and the sale of new bonds. The financial analysis on Table E-5 includes the following expenditures: ■ Section 33676 Allocations- These are pass through payments to the taxing entities based on the allowable inflation increase of 2 percent per year. P RSG FA FRASER&ASSOCaATES E i 81 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area ■ Property Tax Administrative Fees- These fees are paid to the County for the collection of tax increment. ■ AB 1290 Pass Through.Payments-These payments will be owed to those taxing entities that have not entered into negotiated pass through arrangements. ■ Debt Service- Includes debt service on currently outstanding bonds and the new bonds. ■ Program Costs- The program costs (Development Assistance; Public Improvements; Community Improvement Program; Youth Build Program; and Housing) have been included on Table E-5 and have been increased by a 3 percent inflation factor. ■ Administrative Costs- The costs for administration of the Project Area are based on the current Agency budget increased at 3 percent per year. The financial analysis shows that the Project.Area may generate a surplus of $89.9 million by the end of the term when tax increment can be received. The surplus arises in large part because the Project Area will only be able to repay debt in the final 10 years of tax increment collection. This balance is the Project Area's hedge against higher than expected costs or revenues that fall short of projections. If these funds are not needed, they will flow back to the taxing entities. Given this, the Project Area will continue to be economically feasible after the amendment. Q RSG . FA FRASER&ASSOCIATES E / 82 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Table E-1 Contra Costa County Redevelopment Agency North Richmond Project Area ESTIMATED PROGRAM COSTS (000's Omitted) Total Funds Additional Amount Percent Estimated Cost Available(1) Program Costs(2) Funded Funded Development Assistance Program Town Center"Grove Point" 20.300 0 20.300 10,150 50% Infill Development&Acquisitions 5,000 700 4.300 2,150 50% Toxic Remediation 5,000 0 5,000 2,500 50% Other E=conomic Development Programs 7,165 165 7,000 3,500 50% Subtotal 37.465 865 36,600 18,300 50% Public Improvement Program North Richmond Truck Route 30,000 3,000 27,000 13,530 50% Industrial Area Drainage/Infrastructure 26,100 5,000 21,100 10,642 50% Neighborhood Infrastructure 35,000 698 34,302 25,727 75% Other Infrastructure 12,000 0 12,000 5,400 45% Coniminity Facilities 5,000 0 5,000 2.500 50% Third Street Streetscape 3,000 260 2,740 1,657 60% Nove Subdivision Infrastructure 11,000 0 11,000 5,500 50% North Richmond Specific Plan Infrastructure 45,000 0 45,000 27,000 60% Subtotal 167,100 8.958 158,142 91,956 58% Community Improvement Program 2,253 368 1,885 1,885 100% Youthbuild Program 1,400 365 1,035 1,035 100% Low-Mod Housing Program(3) 54,714 5,475 49,239 49,239 100% Administration And Operations(4) 14,636 0 14,636 14,636 100% GRAND TOTAL-ADDITIONAL PROGRAM COSTS $277,568 $16,031 $261,537 $177,051 68% (1) Reflects Agency fund balances and available bond proceeds. 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NSU F'� NNN NNNNN NNNNN N'N NNNNNNNNNNNNNNNN > Y�a� dUMd� W _ C L N23 of '" (0•� nm rn O NMv U)m r mrn0 N M v10mr m rn0 N M V U)mr E LLm smQQ m 0 , c 0- U O O O N N N N N N N N N N M M M M M M M M O O' M O `O m o m a� 0 0 0 0 0 0 0 0 0 0 0 0 0 0'0 o O o O o o O O O O O O O o o O � V z F U Z a 0 } N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N U v N M------ LL coD O) O REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Table E-3 Contra Costa County Redevelopment Agency North Richmond Project Area POTENTIAL NEW DEVELOPMENT ACTIVITY Net(1) Square Residential Estimated Value Development Footage Units (000's Omitted) Bella Flora/ KB Homes 152 51,712 Nove -Townhomes 355 124,250 Specific Plan - Residential 1,500 600,000 Town Center/Grove Point Condo Units 20 6,400 Retail 8,000 1,640 Light Industrial Dev. 1,000,000 180,000 $912,290 RSG FA FR4SER&ASSOCIATES E i 85 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Table E-4 Contra Costa County Redevelopment Agency North Richmond Project Area ESTIMATED BONDED INDEBTEDNESS AND TAX INCREMENT LIMITS (000's Omitted) Additional Program Costs $177,051 PI us:Contingencies @ 20% 35,410 Total Estimated Project Costs $212,461 Plus: Finance Costs(1) 31,869 Principal Outstanding on Tax Allocation Bonds(2) 24,155 Bonded Indebtedness Limit(Rounded) 12p 000 Plus: Debt Service on New Bond Issue(Interest Only)(3) 222,901 Debt Service on Existing Bonds(Interest Only) 16,245 Estimated Tax Increment Received thru 2006-07 13,073 Estimated Tax Sharing Payments 182,882 Estimated Property Tax Administrative Fees 6,404 Amended Project Area Costs 711,505 "fax Increment Limit(Rounded) $712,000 (1) Financing costs are the costs of issuance included as 15%of Additional Program Costs assuming deposits to reserve fund, underwriters discount and miscellaneous costs associated with the issuance of bonds. (2) Includes$7.9 million in escrow bond proceeds that can not be released until the plan amendment is completed. (3) Based on financing programs through bonds. Includes interest on outstanding bonds For new bonds, assumes a 6% interest rate and a 25 year term. Assumes that debt service in the 25th year will be paid from reserve fund. RSG FA FRASER&ASSOCIATES E / 86 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Table E-5 Contra Costa County Redevelopment Agency North.Richmond Project Area FINANCIAL FEASIBILITY ANALYSIS (000's Omitted) Future Value Resources Beginning Balance 10,568 Total Tax Increment Revenues 711,528 TA Bond.Proceeds 96,862 Investment Earnings 6,826 Other Revenue Sources 8,993 Total Resources $834,777 Expenditures Section 33676 Allocations 15,163 Property Tax Admin Fees 6,404 AB 1290 Tax Sharing 182,882 Debt Service- 1999 Bonds 2,548 Debt Service-2007 Bonds 32,019 Debt Service- New Bonds 178,800 Development Assistance Program 22,523 Public Improvements 137,875 Community Improvement Program 2,288 Youthbuild Program 1,500 Housing Progams 139,273 Administrative Expenses 23,584 Total Expenditures $744,860 Ending Discretionary Balance. 89,918 RSG FA FR4SER&ASSMATO E 87 SECTION Method of Relocation Section 33352(f) of the CRL requires that this Report includes a plan and method of relocation for the Project Area. Additionally, Section 33411 of the CRL requires that the Agency prepare a feasible plan for the relocation of families or persons to be temporarily or permanently displaced from housing facilities in its Project Area, and for nonprofit local community institutions to be temporarily or permanently displaced from facilities actually used for institutional purposes in the Project Area. Pursuant to the CRI., the Agency previously prepared Methods of Relocation for the North Richmond Project Area (Relocation Methods) and incorporated the Relocation Methods in the Original Report at the time of initial Redevelopment Plan adoption in 1987. The Relocation Methods document is provided as Attachment B remains applicable to any required relocation activity Under the Redevelopment Plan, as proposed to be amended by the 2008 North Richmond Amendment. However, if the Amended Plan is adopted and implemented, should any actions be undertaken which include the relocation of residents or businesses, such actions will adhere to the State Relocation Law (Government Code 7260 et seq.), the State Relocation Guidelines, as those regulations may be amended by the State from time to time, and the Relocation Methods; as previously prepared and in effect and as set forth below. Any amendments to the State Guidelines of State Relocation Law shall automatically be incorporated without the need for further action by the Agency. 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. Further, such relocation housing shall be decent, safe, sanitary and suitable to their individual needs; located in areas not less desirable than, the 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 (all of the foregoing as defined in State laws and regulations). (qRSG F / 88 SECTIONG . Analysis of the Preliminary Plan Section 33352(g) of the CRL requires the inclusion of an analysis of the Preliminary Plan for the Project Area. An analysis of the Preliminary Plan was provided in the. supporting documentation prepared at the time the Project Area was adopted: Pursuant to Section 33457.1 of the CRL, an analysis of the Preliminary Plan is not required for the 2008 North Richmond Amendment because it does not propose to add new territory nor amend Project Area boundaries that necessitate the need for a preliminary plan. The Original Preliminary Plan sets forth the boundaries of the Project Area and certain land use criteria. The Analysis of the Preliminary Plan from the Original Report and the Original Preliminary Plan are included as Appendix C. G ( 89 SECTION H Report of the Planning Commission Section 33352(h) of the CRL requires inclusion of a report of the Planning Commission of the County of Contra Costa ("Planning Commission"). The Planning Commission is required to review the proposed Amended Plan and determine conformance with the County's . General Plan. On Aprill 22, 2008, the Planning Commission took such action pursuant to Section 33346 of the CRL. Planning Commission Resolution No. 14-2008 addressing the conformance of the Amended Plan with the County's General Plan is provided on the following pages. RSG H / 90 RESOLUTION NO. 14-2008 A Resolution of the Planning Commission of the County of Contra Costa, State of California, recommending to the Board of Supervisors and the Redevelopment Agency of the County of Contra Costa adoption of California Environmental Quality Act ("C1E:QA") Findings and adoption of the Sixth Amendment to the Redevelopment Plan for the North Richmond Redevelopment Project, and making various findings in connection with such recommendations. The Contra Costa County Planning Commission RESOLVES THAT: The Redevelopment Agency of the County of Contra Costa(the "Agency") has submitted to the Contra Costa County Planning Commission (the "Planning Commission") the proposed Sixth Amendment to the Redevelopment Plan for the North.Richmond Redevelopment Project; and Part V of the Redevelopment Plan incorporates the General.Plan land uses, land use standards, development criteria, goals and objectives into the Redevelopment Plan; and The effects on the environment caused by implernentation of the Plan Amendment are covered by the Negative Declaration, and Sections 33346; 33354.6(a), and 33453 of the Community Redevelopment Law (Health and Safety Code, Section 33000 et seg.) provides that the Planning Commission is to review the proposed Plan Amendment and make its report and recommendation thereon to the Agency and the Contra Costa County Board of Supervisors (the "Board"), including a determination whether the Plan Amendment conforms to the General Plan of the Contra Costa County (the "General Plan"); and Section 65402 of the Government Code provides in past: "(a) 1f a general plan or part thereof has been adopted, no real property shall be acquired by dedication or otherwise for street, square,park or other public purposes, and no real property shall be disposed of, no street shall be vacated or abandoned, and no public building or structure shall be constructed or authorized, if the adopted general plan or part thereof applies thereto, until the location, purpose and extent of such acquisition or disposition, such street vacation or abandonment, or such public building or structure have been submitted to and reported upon by the planning agency as to conformity with said adopted general plan or part thereof...." "(c) A local agency shall not acquire real property for any of the purposes specified in paragraph (a) nor dispose of any real property, nor construct or authorize a public building or structure, in any county or city, if such 20\,24`647554.1 I county or city has adopted a general plan or part thereof and such general plan or part thereof is applicable thereto, until the location, purpose and extent of such acquisition, disposition, or s6ch public building or structure have been submitted to and reported upon by the planning agency having jurisdiction, as to conformity with said. adopted general plan or part thereof...."; and The above required Planning Commission report and recommendation, including matters referred to in Health and Safety Code Sections 33346,. 33354.6(a) and 33453 and Government Code; Section 65402, are to be made to the Agency and the .Board within thirty days of the Planning Commission's receipt of the Plan Amendment, for their consideration in acting on the adoption of the Plan Amendment; and The Platuiing Commission has reviewed the Contra Costa County General Plan, the propos ed Plan Amendment, the Negative Declaration, and the staff report accompanying this Resolution pursuant to the. California Environmental Quality Act, and the Report to the Board on the proposed Plan Amendment; and Part V. of the Redevelopment Plan incorporates the County's General Plan land uses and land use standards into the Redevelopment Plan, and the Plan Amendment would facilitate redevelopment of the Notth Richmond :Redevelopment Project in a manner consistent with the General Plan. NOW THEREFORE, THE PLANNING COMMISSION OF THE COUNTY OF CONTRA COSTA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Findings. The Planning Commission hereby finds and determines that: (a) All required public notices have been given in connection with the actions set forth in this Resolution. (b) The proposed Negative Declaration is adequate for the purposes of compliance with the California Environmental Quality Act and recommends that the Board of Supervisors adopt same. (c) Pursuant to Sections 33346,, 33354.6(a), and 33453 of the Community Redevelopment Law, the proposed Plan.Amendment conforms to the General Plan. (d) Pursuant to Section 65402 of the Government Code, with respect to public activities which maybe undertaken pursuant to the Plan Amendment, and that are referred to in Section 65402, such activities and undertakings conform to the General Plan. Section 2. Report and Recommendation. The Planning Commission recommends to the Board of Supervisors the approval and adoption of the Plan Amendment and in the CN7ent that prior to its adoption of the Plan Amendment, the Board desires to make any minor, technical, or 320\24%.547584.1 2 clarifying' changes to the Plan Amendment, the Planning Commission hereby finds and determines that any such minor, technical, or clarifying changes need not be referred to it for further report and recommendation, and hereby waives its report and recommendation under Section 33455 of the Community Redevelopment Law concerning any such change; and Section 3. Transmittal. The Planning Commission's Secretary shall transmit a copy of this Resolution to the Agency and the Board for consideration as part of the Agency's Report to the Board pursuant to Section 33352 of the Community Redevelopment Law, and this Resolution shall be deemed the report and recommendation of the Planning Commission concerning the proposed Plan Amendment and contemplated public projects and activities thereunder, as required by applicable provisions of law. The instructions by the County Planning Commission to.prepare this resolution were given by motion of the Country Planning Commission on Tuesday, April 22, 2008,.by the following vote: AY1;S: Commissioners Mlong, Terrell, and Snyder. NOFS: Commissioner Murray ABSTAIN: None ABSENT: Commissioners Battaglia, Clark and Gaddis BE IT FURTHER RESOLVED that the Secretary.of the County Planning Commission shall respectively sign and attest the certified copy of this resolution and deliver the same to the Board of Supervisors all in accordance with the Planning Laws of the State of California. Michael Murray, Chair County Planning Commission County of Contra Costa State of California ATTEST: Dennis M. Barry, Secretary County Planning Commission County of Contra Costa State of California 320\-)41,5475S4.1 3 SECTION Report and Recommendation of the Project Area Committee Pursuant to Section 33385.3 of the CRL, a Project Area Committee ("PAC") is required if the Agency proposes to amend a redevelopment plan to: (1) grant the authority to the Agency to acquire by eminent domain property on which persons reside in a project area in which a substantial number of low-. and moderate-income persons reside; or (2) add territory in which a substantial number of low-and moderate-income persons reside and grant the authority to the Agency to acquire, by eminent.domain, propeity on which persons reside in the added territory. The proposed Amendment to The North Richmond Project Area does not involve any of these activities. Therefore, there is no requirement to form a PAC. However, while there is no requirement for a PAC, as defined by the CRL, the Agency has taken steps to ensure that the North Richmond Municipal Advisory Council, local residents, business owners and other interested parties are aware of, and involved in, the proposed 2008 North Richmond Amendment, and will take the Amended Plan to the MAC for its consideration and recommendation at a meeting scheduled for May 13, 2008. Any recommendations received from the MAC will be incorporated into a supplement to this Report prior to the joint public hearing on the Amended.Plan. Notices of this joint public hearing were mailed to all Project Area property owners, residents, business owners, and affected taxing agencies. Additionally, notices are being duly published in the West County Times (a local newspaper of general circulation) in accordance with the CRL. Collectively, these measures ensure that the views of local residents and business owners as well as those of other interested parties can be made known. The following bullet points provide a summary of phone conversations held between the Agency and local residents, business owners, and any other interested parties that were made aware of, and involved in, the proposed 2008 North Richmond Amendment. • On May 5, 2008, the Agency had a phone conversation with Tim Johnson, who owns' a local commercial business at 1900 7`" St, regarding the proposed 2008 North Richmond Amendment. Mr. Johnson expressed general interest in the Agency's proposed 2008 North Richmond Amendment and a concern for the negative effect of crime on the marketability of his property. Agency staff directed Mr. Johnson to the website for more information on the Report on the Plan. Agency staff indicates.that there is no need for a follow up or required response. • On May 7,2008, the Agency had a phone conversation with another local business owner, who runs .an auto dismantling business, which is located at 400 West Gertrude. The owner asked Agency staff to keep him informed about the status of the proposed 2008 North Richmond Plan Amendment and for a clearer boundary map of the North Richmond Project Area. Agency staff has provided the business owner with the requested information and indicates that there is no need for a follow up or required response. RSG 1 / 91 SECTION J Statement of Conformance with the General Plan Section 33352(j) of the CRL requires a report of General Plan conformance per Section 65402 of the Government Code. The 2008 North Richmond Amendment does not contain provisions which would alter -land use designations, nor does the proposed 2008 North Richmond Amendment affect the land use provisions of the Redevelopment Plan. A Report of the Planning Commission determining that the Redevelopment Plan was in conformance with the General Plan was provided in the Original Report to the Board prepared at the time the Project Area was adopted. The Planning.Commission took action pursuant to Section 33346 regarding General Plan conformance on April 22, 2008. Pursuant to Section 33346 of the CRL, the Planning Commission adopted Resolution No. 14-2008 (provided under Section H of this Report) finding that the proposed 2008 North Richmond Amendment is in conformance with the General Plan. O RSG J / 92 SECTION K Environmental Documentation Section 33352(k) of the CRL requires environmental documentation to be prepared pursuant to Section 21151 of the Public Resources Code. Concurrent with the adoption of the Redevelopment Plan, the Agency undertook appropriate environmental documentation as necessary. For the 2008 North Richmond Amendment, a Negative Declaration (Initial Study) was prepared pursuant to California Environmental Quality Act guidelines, which found that the proposed 2008 North Richmond Amendment .would not have a significant adverse impact on the environment.'A copy of the Negative Declaration follows as Appendix D. O RSG K / 93 SECTION L Report of the County Fiscal Officer The proposed 2008 North Richmond Amendment does not add territory to the Project Area. Therefore, preparation of a base year report, as described in the CRL Section 33328, is not required for the 2008 North Richmond Amendment. O R.SG L / 94 SECTION M. Neighborhood Impact Report Section 33352(m) of the CRL requires that a new Neighborhood Impact Report be included in the report. The Original Report contained all of the required information provided for in Section 33352(m) of the CRL. As stated in the Original Report, the overall purpose and impact of the redevelopment activities within the Project Area was to stimulate construction of new affordable housing, upgrade existing residential neighborhoods through rehabilitation of housing units as well as facilitation on infill housing construction. Another aspect of the Redevelopment Plan discussed in the Original Report was the intent to provide major infrastructure improvements in order to better serve the existing residents and businesses of the Project Area as well as provide for new development... The 2008 North Richmond Amendment, as.authorized by the CRL, would increase the limit on the amount of tax increment that may be received by the Agency from $60 million to approximately $712 million and to increase the limit on the amount of outstanding bonded indebtedness from $30 million to approximately $270 million, to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan. Pursuant to CRL Section 33352(m), the following discussion presents an overview of redevelopment impacts on Project Area neighborhoods and then discusses in greater detail the impacts of redevelopment on the following: relocation; traffic circulation; environmental quality; availability of community facilities and services; school population and the quality of education; property assessments and taxes; and housing (with emphasis on housing production for low-and moderate-income households). More specifically, this discussion summarizes the Neighborhood Impact Report contained in the Original Report ("Original Neighborhood Impact Report") (shown in italicized lettering) followed by updated information and analysis that describes in detail the impact that the 2008 North Richmond Amendment would have upon Project Area residents. In addition to the italicized excerpts below, the Original Neighborhood Impact Report is attached in its entirety as Appendix E of this Report. Overview of Redevelopment Impacts Redevelopment activities will have a direct impact on the Project Area through the alleviation of blighting conditions and such activities will reduce impediments to private investment and development. Indirect impacts of redevelopment activities will be to (1) generate and accommodate an increased level of. industrial and employment related development in the northern portion of the Project Area; (2) stabilize and improve the quality of the existing residential neighborhood; (3) expand the supply of affordable housing in the Project Area; and (4) create a more attractive and efficient environment for persons living and working in the Project Area. The 2008 North Richmond Amendment will not change the boundaries of the Project Area.. Redevelopment activities and programs are expected to continue to impact the Project Area positively through the alleviation of blighting conditions and the reduction of impediments to private investment and development. Redevelopment activities and programs are also expected to stabilize and improve residential neighborhoods, expand the Project Area's Q RSG M / 95 REPORT TO THE. BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area supply of affordable housing, and create a more attractive and efficient environment for residents, workers, and patrons. The 2008 North Richmond Amendment proposes, however, to increase the tax increment limit from $60 million to $712 million and the bonded indebtedness limit from $30 million to $270 million. This increased financial capacity will enable the Agency to more comprehensively fulfill its goals under the Redevelopment Plan and to effectively implement blight reducing redevelopment projects and activities, leading to increased growth of the Project Area. The impact caused by construction as a result of redevelopment activity and program implementation on area residents, in general, will be minimal as redevelopment projects are intendedto be phased with a limited scope of direct activity at any give time. Furthermore, redevelopment projects will be subject to future review and approval by the Board, Agency Board, Planning Commission, and other appropriate bodies after input has been solicited from affected taxing agencies, Project Area property owners, and/or interested parties as appropriate or required by law. Relocation It is not expected that more than six households would be displaced over the forty year life of the Plan. The Agency will conduct its activities to minimize the relocation of households and businesses. The Redevelopment Plan and the relocation plan (which is set forth in Part IV of the Original Report) contain policies, procedures and safeguards to minimize inconvenience and hardship and to ensure timely, satisfactory relocation of any households that must move as a result of redevelopment activities. At this time the Agency does not have plans to relocate residents or businesses in the Project Area and the Agency will continue to conduct its activities in a fashion that minimizes the need to relocate households and businesses. However, the implementation of certain redevelopment agency activities and programs identified in Section A may result in the future displacement of Project Area residents and/or businesses over the remaining life of the Redevelopment Plan. Specific economic development programs such as Town Center "Grove Point", In-fill Development and Acquisitions, and public improvement programs such as the North Richmond Truck Route, if realized, could result in lot assemblage and the need to relocate Project Area residents and/or businesses. It is important to note that no persons or families of low- and moderate-income shall be displaced unless and until there is suitable housing available and ready for occupancy by such persons and families. The Agency will continue to conduct its activities in a fashion that minimizes the need to relocate households and businesses. If relocation activities are undertaken as a result of actions taken by the.Agency, the Agency will handle those activities on a case-by-case basis, in accordance with its General Relocation Plan as set forth in Part IV of the Original Report. The General Relocation Plan adheres to the State Relocation Law, as it now exists or is further amended (Government Code Sections 7260 through 7277), and follows the California Relocation Assistance Act and Real Property Acquisition Guidelines issued by the. State of California, Department of Housing and Community Development, pursuant to Government Code Section 7268 and Health and Safety Code Section 50460, as it now exists or is further amended. O RSG 0 M / 96 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Traffic Circulation The redevelopment program is designated both to encourage new development by providing an adequate traffic circulation system and to mitigate the effects of increased traffic generated by such new development. Specifically, planned improvement of Project Area primary and secondary arterials will upgrade these routes to urban collector standards, encouraging the development or redevelopment of vacant or underutilized parcels. Further, the North Richmond Bypass will draw off through-traffic now using Project Area streets, which will more than offset the adverse effect of Project-related local traffic generation. In particular, heavy truck traffic which now utilizes the local street system, disrupting the residential neighborhood, will be diverted to the Bypass. It is anticipated that traffic volumes on local collector streets will be substantially less at full Project Area build-out than they are today. The 2008 North Richmond Amendment will not alter the Project Area boundaries nor does the Redevelopment Plan provide for the direct development of any private or public development projects that would generate traffic and impact existing roadways. The implementation of redevelopment activities and programs will, however, stimulate growth in the Project Area and encourage new development and investment from the private sector which will result in increases' in local traffic volumes. The Agency has identified a number of public improvement projects that would improve access to the Project Area and reduce existing safety hazards for motorists and pedestrians. Specifically, projects planned for the Project Area will include paving, reconstruction, rehabilitation and widening of streets, construction of curb, gutter and sidewalks, widening of intersections, and grade separations. Refer to Section A for a more comprehensive and detailed list of neighborhood infrastructure upgrades that will mitigate the effects of increased traffic generated by new development. It should be noted that all new development and redevelopment within the Project Area will be consistent with the Contra Costa County General Plan ("General Plan") which controls the land use designations and intensities within the Project Area. Furthermore, the 2008 North.Richmond Amendment will not alter or intensify the General Plan's land uses, traffic generation, levels of service, or intersection capacities. As a result, no traffic or circulation impacts are anticipated that have not already been considered by the General Plan Environmental Impact Report. Environmental Quality The environmental quality of the Project Area will generally be enhanced by the Plan activities, including:. 1) rehabilitation of dilapidated homes; 2) removal of unsightly non- conforming uses from the residential and industrial areas; 3) development of parks and landscaped open spaces; 4) reduction of heavy traffic utilizing Project Area streets; 5) improvement of unsightly street dead-ends in the residential area; and 6) elimination of flooding conditions. The Redevelopment Plan will create two additional impacts which include: 1) new development, which tends to increase density and create a more concentrated urbanized environment; 2) increases in traffic resulting in greater noise and air emissions. However, redevelopment activities related to improvement of traffic circulation patterns in the Project O RSG M / 97 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redeveloprrient Agency North Richmond Redevelopment Project Area Area are designed to help mitigate these adverse environmental effects of the Redevelopment Plan. The 2008 North Richmond Amendment will not alter the Project Area boundaries nor does the Redevelopment Plan provide for the direct development of any private or public development projects. During implementation of the Redevelopment Plan, specific redevelopment proposals may warrant specific environmental analysis as required by the California Environmental Quality Act, Public Resources Code Sections 21000, et. seq. Community Facilities And Services The Redevelopment Plan will improve the availability of public facilities in the Project Area and infrastructure improvements such as street widening and road repair, design and construction, and intersection upgrades will lead to improvements in the provision of various public services as a result of traffic circulation improvements. These improvements will enhance response times for fire, police, and other emergency services. On the other hand, development as a result of redevelopment activities will generate increased demands in the Project Area for police, fire, schools, and other public services. Service-providing agencies that rely on property tax revenue will continue to receive the same level of tax revenue from the Project Area as they obtained prior to Redevelopment Plan adoption (assuming no change in tax rate). The 2008 North Richmond Amendment will not alter the Project Area boundaries nor does the Redevelopment Plan provide for the direct development of any private or public development projects. The 2008 North Richmond Amendment will increase the Agency's financial capacity to more comprehensively fulfill its goals under the Redevelopment Plan and to effectively implement blight reducing redevelopment projects and activities, leading to increased growth of the Project Area. The analysis on redevelopment's impacts on community facilities and services as described in the Original Report remains applicable under the 2008 North Richmond Amendment. School Population and Quality of Education To assist in increasing the supply of affordable housing in the Project Area and the County, the Plan will encourage the construction of housing in the Project Area. It is estimated that over the life of the Plan 900-950 units of housing may be added to the Project Area housing stock. As described in the EIR, this may add as many as 665 school children to the pupil numbers in the Richmond Unified School District. However, this increase is expected to be very gradual given the extended buildout period of twenty-five years or more. Because of this extended build-out period, it is difficult to predict the impact Project generated enrollment increases would have on area schools. Enrollment patterns could change significantly over this period, as could District facilities. The rate at which the residential expansion takes place will be a major factor in determining the impact on school enrollment (i.e., gradual development would have less significant effects than building new units all at once or in large segments). In any event, Project-related increases in the residential population would probably require some expansion of school district facilities over the long term. RSG M / 98 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Senate Bill 2926, which became law on January 2, 1987, provides for the imposition of school impact fees for new development prior to the issuance of building permits. It is anticipated that Project-assisted housing construction will be subject to such impact fees; mitigating the impact of increased school enrollment due to redevelopment activities. The potential effects of the Redevelopment Plan on local schools were evaluated by the Environmental Impact Report certified at the time of the Project Area's adoption. The 2008 North Richmond Amendment will not alter the Project Area boundaries nor does the Redevelopment Plan provide for the direct development of any private or public development projects. Therefore, it is anticipated that the 2008 North Richmond Amendment would have no effect on school populations or the quality of education that have not already been evaluated by the aforementioned Environmental Impact Report. None the less, the 2008 North Richmond Amendment does .propose increasing the tax increment cap and bonded indebtedness limit which will provide the Agency with additional capital to_implement blight eliminating projects, including increasing the Project Area's supply of affordable housing. As a result of project implementation it is reasonable to expect gradual growth and an increase in the number of school age children within the Project Area. It should be noted however, that all new development and redevelopment projects within the Project Area, whether implemented by the Agency or the private sector, are required to be consistent with the General Plan which controls the land use designations and intensities within the Project Area. Accordingly, the General Plan contains relevant policies and implementation measures pertaining to schools in order to mitigate the effects of new development on schools and ensure the provision of adequate school facilities. Furthermore, during implernentation of the Redevelopment Plan, specific redevelopment proposals may warrant project specific environmental analysis as required by the California Environmental Quality Act, Public Resources Code Sections 21000, et. seq. and an analysis of the project's impact on schools. Property Assessments and Taxes The establishment of a redevelopment project and use of tax increment financing will have no effect on the ad valorem property tax rate or total ad valorem property tax bill levied against properties inside or outside the Project Area. Tax increment financing does not affect the tax rate, but instead alters the distribution of property tax revenue that would be collected in any event, so that a portion (the tax increments generated by increased assessed value of Project Area property over the frozen base) is allocated to the Agency to contribute to the elimination of blight in the Project Area. The establishment of a redevelopment project and the use of tax increment financing has been established as a last resort financing mechanism to provide blight-alleviating public improvements that cannot feasibly be financed by tax assessment districts alone. The 2008 North Richmond Amendment will not change the boundaries of the Project Area; however, it will increase the tax increment limit from $60 million to $712 million and the bonded indebtedness limit from $30 million to $270 million. The amendment of these financial limits does not affect the tax rate nor does it extend the time period that the Agency may collect tax increment, but instead allows the Agency to increase its financial capacity to issue bonded indebtedness and to receive tax increments generated by increased value of O RSG M / 99 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area Project Area property over the frozen base to pay for blight eliminating projects and to repay Agency debts. Housing As previously noted, up to six dwelling units may be removed from the Project Area housing stock to accommodate redevelopment activities. It is not known at this time exactly how many of these residential units house persons or families of low- or moderate-income, nor how many persons of low- or moderate-income will be displaced by redevelopment. However, to the extent feasible, the Agency will require developers of projects that necessitate removal of units from the low- and moderate-income housing stock to contribute to the replacement of such units. Further, a portion of the tax increment monies allocated to the Agency's low and moderate income housing fund could be used to finance the costs of any replacement housing obligation, as necessary. It is projected that all of the Plan's relocation'and replacement housing obligations will be accomplished within forty years. As required by state law, dwelling units housing low- and moderate-income persons and families which are removed from the housing market because of redevelopment will be replaced within four years of removal. No persons or families of low- and moderate- income shall be displaced unless and until there is suitable housing available and ready for occupancy by such persons or families. The total number of dwelling units housing persons and families of low- or moderate-income that will be constructed or rehabilitated will depend on the following factors: 1. Health and Safety Code Section 33413(b) requires that 30% of all units constructed or rehabilitated by the. Agency be available at affordable housing costs to low- and moderate-income.households, and that at least 15% of all units constructed or rehabilitated by private developers or other governmental entities be available at affordable housing cost to such households. Of all units that are constructed in the Project Area, at least the percentages described in aforementioned section shall be available at affordable cost to low- and moderate-income households. 2. The Agency intends to use the tax increment housing fund for rehabilitation and new construction of low- and moderate-income housing within the Project Area. Given the. limit of $60 million on tax increment revenue that the Agency may claim, up, to $34 million will be available for this purpose. While the number of units to be constructed or rehabilitated with this housing fund will depend on the mix of new construction and rehabilitation that is undertaken and on the financial terms of the new construction and rehabilitation programs that are employed, the Agency projects that it will, at a minimum, assist in the rehabilitation of approximately 50 housing units and in the new construction of approximately 240 units. In the later years of the Redevelopment Plan when the major infrastructure improvements have been constructed, it is anticipated that the Agency will use more than the 20 percent set aside mandated by state law for housing related activities. Methods for financing construction of housing for low and moderate—income persons and families may include.- RSG nclude.RSSG M / 100 REPORT TO THE BOARD OF SUPERVISORS Contra Costa County Redevelopment Agency North Richmond Redevelopment Project Area 1. The housing fund comprising 20 percent of tax increment revenues and additional tax increment revenue available in the later years of the Plan term; 2. Mortgage revenue bonds; 3. Community Development Block Grant funds (if the program exists) ; 4. Other Federal and State housing assistance programs; and 5. Developer contributions. The precise method for financing any specific project that will include low- and moderate- income housing will depend on market conditions and financing availability at the time of development. The 2008 North Richmond Amendment will not alter the Project Area boundaries nor does the Redevelopment Plan provide for the direct development, rehabilitation, or demolition of any private or public development projects. Information provided under the subsection Housing of the Neighborhood Impact Report and 'contained in the Original Report (summarized above) remains pertinent and applicable. It is important to update and identify any changes and point out the effects of the 2008 North Richmond Amendment on the low- and moderate-income housing stock. As previously identified in Section A, the Agency may undertake programs and projects that may require lot assemblage and the need to relocate Project Area residents and/or businesses over the life of i-he Redevelopment Plan. If the Agency plans to implement these future programs and projects, it shall adopt a relocation plan that is in compliance with applicable State laws in order to assure the lawful relocation of those residents and/or businesses. It is important to note that the Agency's ability to make more units available to households of very-low-, low-, and moderate-income will be enhanced by the 2008 North Richmond Amendment, which proposes to increase the cumulative tax increment cap from $60 million to $712 million. The CRL requires that, at a minimum, 20% of the gross tax increment collected by the Agency be set-aside for the purpose of rehabilitating and constructing low- and moderate-income housing within the.Project Area, which means that up to $142.4 million will be available for said purpose. The number of housing units to be constructed and rehabilitated, however, will depend on the mix. of new construction and rehabilitation that is undertaken. O RSG M / 101 SECTION N Summary of Agency's Consultations with Affected Taxing Entities and Response to Said Entities Concerns Regarding the Plan On, February 14, 2008, the Agency forwarded to all taxing entities the following: 1) Statement of Preparation of the 2008 North Richmond Amendment, 2) the 2008 North Richmond Plan Amendment, 3) the Preliminary Report (on CD), 4) the Notice of Public Review and Intent to adopt a proposed Negative Declaration, and 5) the Initial Study/Negative Declaration for the 2008 North Richmond Amendment for •review and. consultation. As a part of each of these mailings, the Agency offered to consult with the affected taxing agencies pursuant to Section 33328 of the CRL. Notice of the joint public hearing on the proposed 2008 North Richmond Amendment was sent to each affected taxing entity in accordance with the requirements of the CRL. The Agency contacted all affected taxing entities on or around April 15, 2008, to propose additional consultation on the Amended Plan if desired by the taxing entities. Agency staff indicates that no comments were received from the affected taxing entities to report. RSG N / 102 APPENDIX A AMENDED FIVE-YEAR IMPLEMENTATION PLAN O RSG APPENDIX A / 103 11. 2004/05 to 2008/09 Implementation Plan Amendment and Mid-term Review Prepared to Support the 2008 Amendment to the North, Richmond Redevelopment Plan The North Richmond Project Area consists of approximately 900 acres-in western Contra Costa County, adjacent to the City of Richmond. North Richmond was historically an isolated community, but this changed dramatically when the Richmond Parkway opened to traffic in 1993. The Parkway connects Interstate 80 with Interstate 580 at the Richmond San Rafael Bridge and has placed the North Richmond Project Area in the path of a regional thoroughfare. (See Figure iI-1.) Redevelopment of the,Project Area is intended to remove blight by revitalizing the neighborhood and by attracting jobs to the industrially zoned properties that are in need of morc intensive development and redevelopment. The 2004/05 to 2008/09 Implementation Plan adopted on .January 17, 2006' ("Existing Implementation Plan") identified the Contra Costa County Redevelopment Agency's ("Agency") goals and objectives during the 2004/05 to 2008/09 planningPeriod, and documented the accomplishments for North Richmond during the 1999/00 to 2003/04 planning period. The Existing Implementation Plan also identified available resources and anticipated expenditures on identified proposed projects during the planning period. The Existing Implementation Plan also . described how the Agency would expand the supply of housing, spend its low and moderate income housing set-aside funds ("Housing Funds").and meet its affordable housing obligations. MIDTERM RE,VIEW REQUIREMENTS Section 33490(c) of the Community Redevelopment Law (CRL)requires that at least once within the live-year term of an implementation plan, a redevelopment agency shall conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the redevelopment plan and the corresponding implementation plan for each redevelopment prgject in the jurisdiction and evaluating the progress of the redevelopment project. The mid-teen review must occur no earlier than two years and no later than three years following the adoption of the implementation plan. PURPOSE FOR AMENDING 2004/05-2008/09 NORTH RICHMOND IMPLEMENTATION PLAT' The Agency has initiated the redevelopment plan amendment process to amend the North Richmond Redevelopment Plan. The proposed amendment to the Redevelopment Plan ("2008 North Richmond Amendment") will,if adopted,accomplish the following: 1. increase the total dollar limit on the amount of tax increment revenues the Project Area may receive, and 2. Increase the limit on bonded indebtedness-that can be outstanding at any one time. Contra Costa County Redevelopment Agency II-1 Amended Five Year Implementation Plan The proposed 2004 North Richmond Amendment will enable the Agency to more effectively implement redevelopment projects and activities eliminating blighting conditions within the Project Area. The Redevelopment Plan's current cumulative tax increment cap is $60 million and the bonded indebtedness limit is $30 million. The 2008 North Richmond Amendment proposes to increase these caps to$712 and $270 million,respectively. Section 33451.5 of the CRL, sets forth the required elements of the report on blight that must be presented by the Agency at the public hearing to consider the proposed 2004 North Richmond Amendment increasing the tax increment and outstanding indebtedness limits. Under item (7) of this code section, the Agency is required to amend the Implementation Plan to address any clianges that the 2004 North Richmond Plan Amendment may have on the Agency's implementation activities. Such amendments to an implementation plan must comply with the rcquirements of'Section 33490 of the CRL. SUBJECT OF THIS DOCUMENT This document summarizes the actions and activities of' the Agency in revitalizing North Richmond that have taken place since the Existing Implementation,Plan was adopted in 2006 in compliance with the requirements to conduct a midterm review of the Existing implementation Plan. Serving as the 2004/05-2008/09 Amended Implementation Plan ("Amended Implementation Plan"), it identifies programs and projects listed in the Existing Implementation Plan as well as presents new proposedurograms and projects that Agency staff recommends be added as a result of the proposed 2004 North Richmond Amendment. Contra Costa County Redevelopment Agency 11-2 Amended Five Year Implementation Plan Figure 11-1 North Richmond Project Arca i �_ Montalvin Manor` Redevelopment Project-Area Hercules Pinole Richmond Parkway North Richmond i Redevelopment I Interstate 80 Project-Area San Pablo —t m� �a Richmond Interstate 580 EI Cerrito _J � o 0.25 05W.3 Contra Costa County Redevelopment Agency 11-3 Amended rive Year Implementation Plan A. Legislative Changes to Implementation Plans Among the changes to the CRL to be addressed in this Midterm Review is the requirement that implementation plans must include a detailed description of the Redevelopment Plan's regulatory limits, as well as changes to limitations on proportional expenditures (Section 33334.4(b)). The Exisitn_, Implementation Plan currently reflects the detailed.description of the Redevelopment Plan's regulatory limits in Table 11-1. Chanues to.Section 33334.4(b) serve to modify the previous limitation that each agency expend over the dration of each implementation plan, the monies in its Lowy and Moderate income Housing Fund "iii at least the same proportion as the low-income population under age 65 bears to the total low-income population of the community as reflected in the most recent census". The new language provides a higher level of specificity as follows: "in at least the same proportion as the number of lows-income households with a member under age 65 years bears to the total number of low-income households of the community as reported in the most recent census". The potential impact of the change is difficult to assess in that the census bureau does not provide a data set that reflects the new requirement leaving the burden on local jurisdictions to determine. As a practical matter, the prior language may continue to be.used since the available data set for seniors age 65 and over could arguably reflect only households comprised of such seniors. In addition, AB 987 expanded the monitoring and notification requirements in CRL Section 33 418(c) to require that the agencies compile and maintain annually a database of all existing new and substantially rehabilitated units assisted by the Agency or otherwise counted toward fulfilling the Agency's affordable housing production obligations. Accordingly, the Agency will ensure compliance with the provisions of AB 987 no later than December 31,2008. B. Agency Accomplishments, FY 1999/00 — FY 2003/04 The Agency has undertaken numerous housing,public safety,health, infrastructure, urban design, and economic and community development projects as part of its efforts to attract jobs, remove blight and improve access to affordable housing. The Agency's accomplishments since FY 1999/2000 are listed below: Funded road and streetscape improvements to 3"1 Street and connector roads. initiated a planning process with the Contra Costa Community Development Department's Transportation Division to identify alternative truck routes around the North Richmond neighborhood and site a pedestrian railroad crossing. . _I Initiated a First-Source Hiring Program with the Workforce Investment Board that works with local and potential businesses to encoura(rc the hiring of local residents. Developed a Machining and Tooling Incubator that will work with adults and youth to provide the skills and training necessary to work in the Machining and Tooling trades. Established a youth build program in conjunction with the Housing Authority to train high school dropouts between the ages of 16 and- 22 in the construction industry and work towards completion of the GED. Participants work with qualified contractors to rehabilitate substandard units in the North Richmond area. Once homes are rehabilitated,they are sold to a qualified low income First-Time Homebuyers. Financially sponsored a commercial retail center on 3"i Street developed by a non-profit developer, which has achieved good occupancy rates: Contra Costa County Redevelopment Agency 11-4 Amended Five Year Implementation Plan Promoted economic development in North Richmond through a website with site selection assistance for those interested in locating either residential or commercial developments in the project area. Created marketing materials for business attraction and retention. E Created a Comprehensive Economic Development Strategy in conjunction with other County departments and community members. _J Applied to the Economic Development Administration to fund the construction of a Machining/Tooling Business Incubator. I Established the Community Preservation-Abatement and Revolving Loan Fund. - Initiated a comprehensive infrastructure planning program for the industrial area north of Wildcat Creek. To date, the redevelopment of the Project Area has been constrained by the lack ol'basic infrastructure. Formed a partnership with the City of Richmond and Contra Costa County to address crossJurisdictional issues 'such as code enforcement, junk vehicle abatement, trash collection, and other community clean-up activities. Facilitated the development of two new affordable and/or mixed-income housing projects known as the Parkway Estates and the North Richmond Senior I leritage Apartments; which were awarded as the best HOME project by the National Association of Local Housing Funding Agencies. J Initiated First-Time Ilomebuyer and Individual Deposit Account Programs with Agency and Federal funds to assist first time homebuyers. rating F anner's Market for the area. Established an ope C. Project Area Goals and Objectives The Project Area's goals and objectives are intended to guide Agency actions toward eliminating the Project Area's physical and economic blight. The communiiv and Agency First established goals in the Redevelopment :Plan, and together with zoning regulations, they will continue to direct future actions within the Project Area for the life of the Redevelopment Plan. Since the adoption of the Redevelopment Plan, other long term goals have become important to the Agency, as expressed in documents like the 2000 Implementation Plan and Midterm Review. Those goals are synthesized below as Capital/Public Improvement and Community improvement/Economic Development goals. in addition to these two sets of goals, the Agency has established particular goals and objectives for the Implementation Plan planning period, as required by lire CRL. The Redevelopment Plan goals, Capital/Public Improvement and Community Improvement/Economic Development goals, and Implementation Plan goals and objectives are listed below. The Existing Implementation Plan was adopted by the Agency in order to actively pursue the goals listed below. 1. Redevelopment :Plan Goals . In accordance with the CRL, the North Richmond Redevelopment Plan was designed to achieve three major goals: Revitalize the northern portion of the Project Area through light industrial infrastructure improvements and land use policy changes. Strengthen the existing residential neighborhood in the southern portion of the project area through development of a neighborhood commercial district, park and open space Contra Costa County Redevelopment Agency 11-5 Amended Five Year Implementation Plan development, street improvement and landscaping, and expansion of community facilities, and infill residential. Upgrade the deteriorated housing stock in the project area and stimulate the construction of new affordable housing. 2. Capital/Public Improvement and Community Improvement/Economic Development Goals I Improve road, drainage, and sewer infrastructure and construct public utility facilities in the industrial section of the Project Area. ("these improvements are required to provide full and safe access to industrial land made developable by the completion of the Richmond Parkway.) Fncourage and support public-private partnerships that address community needs. i Encourage and support citizen participation through the North Richmond Municipal Advisory Council. LI Capitalize on existing and future financing resources and opportunities. I.: Provide the framework to restore the economic and social health through public and private actions. 3. Five Year Implementation Plan Goals and Objectives Li Continue to facilitate employment programs for.North Richmond residents, industries and businesses. Implement marketing program to attract new businesses and generate revenue. Use this marketing program to promote infrastructure improvements in industrial lands and improve the Project Area's image. Initiate a reuse development planning process for specific sites in the Project Area. initiate a commercial/retail development program for specific sites in the Project Area. D. Projected Five Year Non-Housing Projects and Activities The Agency will undertake projects and activities in the North Richmond Project Area through FY 2004/09 in order to reduce blight and achieve the Project Area's goals and objectives. The projects and activities supported by the Agency will continue to expand the job base and improve the quality of life for Projcct Area residents. The Agency.will also partner with property owners and potential investors to implement land development'projects that help achieve the Project Area's goals and objectives. The Agency will otter land development assistance through business incentives, loans and land write down cost reductions. iii addition, it will apply for grants when doing so furthers the Redevelopment Plan. Projects and activities that the Agency may help fund during the Implementation Plan planning period are listed below. Project and activity implementation depend on available financial resources. The anticipated expenditures listed under each project reflect expenditures through FY 2004/09. Some projects listed may not incur expenditures until after the 2004/05-2008/09 planning period; however they are included in this Amended Implementation Plan to account for administrative planning. Contra Costa County Redevelopment Agency II-6 Amended Five Year implementation Plan Capital/Public Improvement Projects The Agency has identified a number of public improvement projects which would aid current revitalization efforts and eliminate deficiencies in existing infrastructure systems in the Project Area. Paving, reconstruction, rehabilitation and widening of streets, widening of intersections, grade separations, and utility realignment are needed in the Project Area to improve traffic,flow, provide better access for emergency vehicles, enhance accessibility, increase safety for .pedestrians and motorists, and brine overall aesthetic improvements to the North Richmond•community, which may help improve surrounding property values and attract further investment from the private sector. Additionally, utilities such as phone lines, sewer lines, and storm drains that run along streets and required utility and street improvements are all necessary components of successful redevelopment. Furthermore, these infrastructure and utility : improvements 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 Project Area by removing conditions that otherwise hinder the viable use of buildings or lots and improving property values. In some cases, infrastructure and utility improvements are expected to stimulate private sector investment, lower vacancy rates, increase lease rates, cause an increase in the availability of necessary commercial facilities, and reduce conditions of dilapidation and deterioration. The Agency intends to maximize its investment by improving streets and utilities simultaneously wherevcr feasible. The Agency has identified street segments for these improvements. The Agency also plans to continue to monitor the progress of rcmoving areas in the Project Area from FEMA designated flood zones and improving creeks within in the Project Area to 100 year flood standards. The following is a summary of Capital and Public Improvement projects that the Agency wishes to pursue to further address blight in the Project Area: Contra Costa County Redevelopment Agency 11-7 Amended Five Year Implementation Plan Prosect/Program Description Expenditures Anticipated Completion Third Street Strectscape This project was identified at the time the Existing Expenditures to Date: Implementation Plan was adopted. The Agency $453,313. 2012 has continued to implement road, pedestrian and strcctsrlpe improvements a]on,, Third Street from Grove Avenue to Wildcat Creek. The goal is to Anticipated Expenditures: simultaneously create traffic: calming measures, $0 roadway improvements, and public amenities. These improvements will help remove infi-astructure deficiencies, which hinder the public safety of residents in existing neighborhoods. Providing these improvements adds value.. to the neighborhood and provides incentives for private redevelopment and overall economic development activities. North Richmond Truck Route This prgject includes the next phase of Expenditures to Date: preliminary design, predevelopment, and S105,212 2020 acquisition of select parcels for the North Richmond Truck Route's Preferred Alternative Route. The acquisition process, which is Anticipated Expenditures: scheduled to begin in 2004, involves coordination $400,000 with the Cities of San Pablo, Richmond, and the Union Pacific Railroad. Construction of this new route entails extending* a short dead-end street named Soto northward across Wildcat and San Pablo Creeks to connect with Parr Boulevard. The construction of an alternative truck route will address the health and safety of Project Area residents and workers. It will specifically address pedestrian safety and improve air quality by minimizing truck access to neighborhood streets. By re-routing trucks away from neigliborhood streets, it will enable the Agency to address existing blighting conditions such as high vacancy/low lease rates and remove factors that substantially hinder the economically viable use of nearby buildings or lots. Contra Costa County Redevelopment Agency 11-8 Amended Five Year Implementation Plan Residential Neighborhood Infrastructure Programs Expenditures to Date: The Agency plans to implement a number of SO 2020 infrastructure improvements in the residential neighborhood. The Agency will focus on the improvement of street lights/poles, underground Anticipated Expenditures: utilities and cables, curb/gutters, road pavements Unknown at this time and street repairs but there are no specific locations identified at this time. These infrastructure improvements will improve the health and safety of Project Area residents by eliminating infrastructure deficiencies, which currently hinder the viable: use of residential zoned property. Residential Community Facilities Program This prom-ani includes the implementation of Expenditures to Date: improvements and , upgrades to various SO 2020 community facilities, which are located at Shields Reid Park 0410 Kelsey); North Richmond baseball field (alone ;"i Street, adjacent to Verde Anticipated Expenditures: School); Project Pride Community Center (Las Unknown at this time Deltas); and the North Richmond Senior Center 515 Silver Avenue). An aspect of the North Richmond Specific Plan will identify additional community facility needs such as daycares, libraries, and conference centers.. These upgrades will .help eliminate blight by stimulating the property values of surrounding properties in the area. Furthennore, . these upgrades will improve the Project Area's high crimc rate by providing a safe and healthy outlet for local youth,other than drugs and crime, so that they can participate in educational and recreational activities outside of school. Contra Costa County Redevelopment Agency Ii-9 Amended Five Year Implementation Plan Industrial Area Drainage/infrastructure The Agency plans to initiate a comprehensive Expenditures to Date: infrastructure improvement plan for the entire $0 2027 industrial area north of Wildcat Creek. The Agency is also planning to fund future miscellaneous and other unforeseen infrastructure Anticipated Expenditures: improvements throughout the area, including,but Unknown at this time not limited to: improvements north of Parr Boulevard, roadway overlays, drainage, widening and reconstruction improvements, market avenue pedestrian over crossing, 71" Street extension, and the Goodrick realignment. Agency funds will be leveraged, and/or combined with funds from property/business owners, other federal agencies, and the City of Richmond. These improvements will remove infrastructure deficiencies, which currently hinder the viable use of., all industrial zoned property located north of Wildcat Creek. Infrastructure improvements will also help stimulate stagnant property values and create economic development opportunities in the area. The improvements will also specifically address vehicle and pedestrian safety and circulation,and inadequate drainage. Contra Costa County Redevelopment Agency 11-10 Amended Five Year Implementation Plan North Riclimond Specific Plan/ Nove Subdivision Infrastructure This project will address major infrastructure Expenditures to Date: improvements within the North Richmond SO 2027 Specific Plan Area. Nove Subdivision infrastructure improvements will be coordinated with the larger specific plan program to create a Anticipated Expenditures: comprehensive plan that includes road widening, Unknown at this time drainage, sewer, stonn water, curb and gutters, and circulation improvements. Improvements in the Specific Plan Area will result in better vehicle and pedestrian circulation and safety, increased property . values, which encourages private redevelopment and community-wide .economic development. These improvements will also address inti•astrueture deficiencies that currently hinder the safety and welfare of Project Area residents. Expenditures to Date: $554,425 TOTAL Anticipated Expenditures: $400,000 Some prglects listed may incur additional expenditures whose funding is scheduled for FY 2005/09 but exact cost scheduling is not complete at this time. Contra Costa County Redevelopment Agency iI-11 Amended Five Year Implementation Plan Community Improvement/Economic Development Programs The Community improvement Program directly. addresses the appearance of the neighborhood, the health and safety aspects of community life, and indirectly the overall value of the properties located in the Project Area. This increased property value impacts not only the specific property, but has significant impact on surrounding properties as well. The Agency has established beautification programs to assist residents and businesses upgrade and maintain the appearance of buildings and property, a garbage remediation program that helps address illegal dumping, code enforcement support that adds valuable human power to the strenuous task of daily code review in the Project Area, marketing pieces to assist with business attraction thus lowering vacancy rates and increasing lease rates. and other invaluable programs that address (lie improved appearance of the entire community. The Agency also intends to implement neighborhood safety and crime prevention activities, which include targeted code enforcement, graffiti removal, Abatement Attorney, Resident Deputy, and equipment such as security cameras. Neiahborhood safety and crime prevention activities are directly tied to the collaborative effort of County officials to improve the health, safety,and welfare of Project Area residents and workers. The Agency also plans to engage in a wide variety of economic development initiatives ranging from site assembly and. acquisition to construction and site development. Environmental contamination and remediation can often times pose a financial challenge in the successful development of properties and may not be financially feasible for the private sector alone. The Agency intends to utilize redevelopment funds to offset the cost of mitigating environmental impacts and helping identify which sites need further environmental studies. The following is a summary of the Community Improvement and Economic Development programs, the Agency wishes to pursue to further address blight in the Project Area. Contra Costa County Redevelopment Agency I1-12 Amended Five Year Implementation Plan North Richmond Retail Initiative The North Richmond Retail Initiative is an Expenditures to Date: ongoing project that involves the design and 516,202 2010 construction of a storefi-ont retail space for the Northshore Cafe. Establishing this market fulfills one of' the final components of the Pro iect Area Anticipated Expenditures: goals and provides much needed retail that has S82,500 been requested by community residents. The Northshore Cate will ober basic amenities, sundry items, deli products, and Fresh fruits & vegetables. The Agency will help eliminate blighting conditions such as substandard structures, a lack of commercial facilities, and stagnant property values. Providing these improvements stimulates property values in the neighborhood and encourages private and economic redevelopment in the Project Area. Contra Costa County Redevelopment Agency '11-13 Amended Five Year Implementation Plan i Community Improvement Program The projects in the Community Improvement Expenditures to Date: Pro�(yram all directly address the appearance of the $194,535 2020 neighborhood, and indirectly the overall value of the properties located in the Project Area. The Anticipated Expenditures: Agency has established beautification programs to $607,012 assist residents and businesses upgrade and maintain the appearance of buildings and property, a garbage remediation program that helps address illegal dumping, code enforcement support that adds valuable human power to the strenuous task of daily code review in the Project Area, and other invaluable programs that address the improved appearance of the entire community. Component Proffram: Neighborhood Safety Amount currently Prouram unknown or included in Anticipated Expenditures Provides required Funding for on site or site: listed above specific services, equipment and facilities aimed at addressing problems that address criminal activity effecting the health, welfare and safety of the North Richmond Project Area. Such activities include tameted code enforcement, graffiti removal, Abatement Attorney, Resident Deputy, and equipment such as security cameras. The Community. Improvement Program will eliminate existing blighting conditions by improving severely deteriorated and.dilapidated buildings and stagnant property values, which can have an adverse affect on surrounding property values as well. The Program will increase the safety of the area and reduce both property and crimes against persons. The elimination of these existing blighting conditions and safety issues will encourage private and economic development in the Project Area. Contra Costa County Redevelopment Agency 11-14 Amended Five Year Implementation Plan Town Center"Grove Point" The Agency is facilitating* the predevelopment, Expenditures to Date: environmental review, and land acquisition of $0 2017 seven contiguous sites along the eastern side of "Third Street in the North Richmond Town Center. This project is scheduled to begin in 2008 and is Anticipated Expenditures: located.on the opposite side of the street from the $1,810,100 Senior Heritage Apartments, Community Housing Development Corporation and the North Richmond Center for Health, between Chesley and Grove Avenues. With the acquisition of these seven sites, the A��ency will help facilitate retail and commercial development in the Project Area. This project will also address and remove existing blighting conditions, such as deteriorated and dilapidated structures. Agency investment will also help improve ..stagnant property values, adding value to the area and encouraging general economic development. In-Fill Development& Acquisition The Agency has planned to initiate various site Expenditures to Date: 2020 acquisitions to facilitate new affordable housing S0 projects, mixed use developments, and retail/conunercial projects. The project, which will begin in Fiscal Year 2008/09, involves Anticipated Expenditures: numerous scattered sites (single fimily and $450,224 duplexes), vacant land, and abandoned buildings throughout the cominunity that are in need of substantial rehabilitation and upgrades. These projects would help eliminate blight by improving severely deteriorated and dilapidated buildings, eliminating factors that hinder the viable use of properties, and the remediation of hazardous waste sites in the Project Area. Contra Costa County Redevelopment Agency 11-15 Amended Five Year Implementation Plan FEconomic Development Program program involves Agency participation in Expenditures to Date: i'uture site assistance and job development to help $0 2027 interested businesses relocate into North Richmond. The intent is to use these funds, beginning in 2009, to lure new businesses and Anticipated Expenditures: jobs into the employment generating areas. Most $500,000 of- these firms will be permitted in the Industrial area north of Parr and along Nest Gertrude. The Agency will help eliminate bli'ahting conditions such as infrastructure deficiencies, substandard structures, a lack of commercial facilities, and stagnant property values. Providing these improvements stimulates property values in the neighborhood and encourages private and economic redevelopment in the Project Area. Light Industrial Developments. The Agency will use business development funds Expenditures to Date: to assist with a variety of business related $0 2027 obstacles like relocation costs, predevelopment, and ultimately to induce private investment dollars within the Project .Area, which will help Anticipated Expenditures: attract employers and jobs into the employment 5250,000 generating areas.. These funds will also help eliminate blighting conditions such as a lack of commercial facilities, and stagnant property values. Providing these improvements stimulates property values in the nei�(yhborhood and encourages private and economic redevelopment in the Project Area. Contra Costa County Redevelopment Agency 11-16 Amended Five Year Implementation flan Toxic Remediation The Agency's Toric Remediation Prog*►am is Expenditures to Date: intended to assess community liazmat of various $0 Ongoing properties that have historically used or handled hazardous materials. It is anticipated that "Hot" locations are .located in the residential and Anticipated Expenditures: Specific Plan areas. (847 Brookside Drive & Unknown at this time Meyers Drum near Brookside and Soto Street). However, other locations are within the Industrial area north of Parr Boulevard and along West Gertrude, and also along the western side of the Richmond Parkway. The Agency plans to initiate this program in Fiscal Year 2008/09. The Agency s Toxic Remediation Program will help address existing economic blighting conditions such as the presence of hazardous waste and high vacancies/low lease rates. Such investment will improve the overall economic development opportunities in the Prgject Area. Expenditures to Date: 5210,737 Anticipated Expenditures: $3,699,836 TOTAL Some projects listed may incur additional expenditures whose funding is scheduled for FY 2008/09 but exact cost scheduling-is not complete at this time. Contra Costa County Redevelopment Agency II-17 Amended Five:Year Implementation Plan E. Revenues Available to Implement Non-Housing Improvements . The primary source of revenue available to the Agency for improvement projects and programs has been and will continue to be property tax increment,as it is used both to directly fund projects and to secure bond revenues and pay debt service. As shown in Table 11-1, the Redevelopment Plan was adopted in 1987, and the Agency will be able to undertake project activities through 2027. The Agency can collect a maximum of.$60 million in tax increment revenue over the life of the Redevelopment Plan and has the legal authority to have up to $30 million in outstanding debt at any one time. The Agency is undergoing a Redevelopment Plan amendment to increase the amount of tax increment(lie Agency can collect and the amount of outstanding debt. Table 11-1 Summary of Project Areas Time and Fiscal Limit North Richmond Project Area Acres 900 Adopted July 14, 1987 Eminent Domain July 14,201 1 "Dime Limit for Incurring Debt July 14, 2026 Time Limit for Project Activities July 14, 2027 Time Limit for Tax Increment Receipt July 14,2027 Fiscal Limit for Tax Increment Collection* $60,000,000 Outstanding Indebtedness* $30,000,000 * The Agency is undergoing an amendment to increase the tax increment collection limit to 5712 million and the outstanding indebtedness limit to $270 million. Source:Contra Costa County Rede�,elopment Agency. Since FY 2004/05 the Agency has expended $769,262 on non housing redevelopment projects and programs eliminating blighting conditions within the Project Area. The Agency received more revenue than projected since the Implementation Plan was adopted on January 17, 2006. The increased revenue is prin-tarily due to assessed values in the Project Area increasing at a rate (Treater than projected. The Agency is projected to collect 510.8 million in total revenue that can be used to fund non-housing projects through FY 2008/09. The four sources of revenues that the Agency can spend and reinvest in the Project Area'are net tax increment proceeds from the sale of bonds secured by tax increment, interest earned on non-housing funds and other revenue sources, each of which is displayed in Table I1-2. Projections in Table 11-2 have been updated to reflect future fiscal years remaining in the Implementation Plan planning period. More inlbrination about each source of revenue is provided below. Contra Costa County Redevelopment Agency II-18 Amended Five Year Implementation Plan I ^ 7 rn R. Ys r• t Vi - h . Ln Ln In ri h ^ hl .. JI��I..:I.rV .C'..'>::^ ',cf.. 'In M. OI'.h 'bf V; _j'�;i 7:+. 'M, - �i N 'G' - :G ..x• N ,N'�'Y i.� ,�'!,�� 1+'S<: t'i n:::.P•,'�:r7:ri, rl M - .L _ r _ G r^- .:` el..v ..�,} x .Vl :.".b':�,'.� a - ^�I.:_O>�n. .I'.('J;�rl i:! C•� 'h ? -t - - _ Zn 'r i 'n •r — - .� "O C. r2 N �L�x.::/1 .G :,'O:i0�:+ •„ ' ^ _ - rl = - _ V 'n c 'V•. .,o �a:.c :.�y:.,'j: :�' ;'•r:'rri:��a;,'a0.....` ri - _ - 0 v, rte'O rn :C:��C 'r:1 •'.U'r �[�I 1 ^I;rr,•'x ��'P:�V..! L•.1" r�'-'.Y. ? C f� - - - ~ C. 7 ^ .O...J, �� r.`I::. ��'Vl':.` 1 N Vl::fV • V^ C = - _ _ .I, ID rl y. . . - C Ci I°i F� a�.i V, .p :C .G "' ;4', :O_I'. ''C..O,::.O.. '.`O'I.o01:.-'i•C P.' P .�`. - _ - _ J..' :'O O . . .C. 'ITj"' C.:C,.:C'i.•o::..r.: Vl'..Y'.r:l,:'G• 7' 7 _ - im `+ C fir, N ::o �c c ''r�;:z? r., _.;;:..� ,: ��`I;•oc:P �.�1 oc'�oc — _ — 'V -r C - .L•:7' .��7::. %I::;_ I-f'-':00�:'.��:Q•�, f1..�' .�1�' �D11G - � L• - �• 'L CL tit CU Ci � � � cL Wit• 4 - '� ` o e .: - _ _ = - ! _ _ _O C r CG CLu cz cl G U � 1. Tax Increment Revenues The Agency is projected to have a balance of$4.2 million in capital funds in fiscal year 2007/08. The Agency is also projected to earn $964,463 of net tax'increment revenues over the next two Fiscal years (2007/08-2008/091 in the North Richmond Project Area. Property tax increment is that portion of the total amount of property tax revenues collected annually from all the properties in the Project Area above the amount collected at the time the Project Area was adopted. Pei- Proposition erProposition 13,increases in property taxes can result only from increases in assessed value,which in turn can only come from reassessment upon property sale or improvement or the maximum annual inflationary increase of 2 percent. Net tax increment revenue is the amount of' tax increment remaining to the Agency for non- housing projects and activities after it has suet its other financial obligations. These financial obligations typically include housing Fund deposits, debt services payments,County property tax administration fees,Administration costs,and pass-through payments to other taxing entities. The Agency must reinvest a portion of property tax increment revenues back into non-housing projects that will help reduce and eliminate blight. By encouraging and expanding local commercial, retail, industrial and residential opportunities, the Agency shall achieve the greatest return on its investment while creatine local jobs, enhancing sales tax generation and increasing property values. Increased property values translate to increased tax increment revenues to the Agency,which can then be reinvested in the Project Area. 2. Proceeds from the Sale of Bonds The Agency is able to issue bonds and invest the proceeds of those bond sales in Project Area improvements. The bond sale proceeds are forms of borrowing against projected tax increment revenues. The Agency meets annually to discuss and prioritize projects and activities to be funded each year from bond sales, as well as to coordinate expenditures of' bond proceeds with the County's Capital Improvement Program. The Agency has a maximum bonded indebtedness of'$30 million I'm- the 11'ro1ect Area, this limit will be increased to $270 million dollars it'the 2008 North Richmond Amendment is adopted. Approximately 55.2 million of a bond sale was reserved as a capital fund for the Agency to reinvest in the Prcjcct Area through FY 2005/09. According to the official statement for the 2007 Tax Allocation Revenue Bonds, a portion of the proceeds from the 2007 Tax Allocation Revenue Bonds were initially deposited into the North Richmond Escrow Fund; $7.6 million will become available for use in fiscal year 2007/08 after the 2009 .North Richmond Amendment is adopted. Eighty percent of the escrowed bond proceeds, or $6.1 million, is allocated to the non-housing fund, The Agency projects to expend $8.6 million of the bond sale proceeds before the completion of the implementation Plan planning period.. 3. Other Agency and Non-Agency Financial Resources Wherever possible, the Agency will continue to leverage other sources of funding to achieve the Project Area's goals and obiectives. The Agency has already demonstrated an ability to acquire Contra Costa County Redevelopment Agency 11-20 Amended Five Year Implementation Plan additional funding in the forni of grants and loans from Contra Costa County and other government entities. The Agency also earns interest and revenue from the lease of Agency owned property, and it can collect fees from developers. Accordingly, the Agency projects to collect $1.1 million in additional funding over the next two fiscal years(2007/08-2008/09) from grants, loans, impact fees,the sale or lease of Agcncy-owned property and other sources of revenues. 'Ile other revenue sources will be supplemented by $86,109 of interest earned on the Non-Housing Fund. F. Projected Five Year Non-Housing Expenditures The Agency will implement projects Nvithin its financial capabilities and will look for opportunities to create additional capital such as grants or bonds. As shown in Table Ii-3, The Agency is projected to spend $4.1 million on improvement projects through FY 200,8/09. The projects will focus on the following: Capital/Public improvement Pr(jects—Projects and activities within this category include utility. road and other infrastructure improvement projects, urban design and streetscape improvements, property acquisition and site improvements particularly related to public/private real estate development partnerships, transit and mixed-use facilities, and tither physical development projects. Community. Improvement Activities/Economle Development Promotion—Projects and activities within this category include beautification programs, hazardous waste and other ,garbage remediation programs, code enforcement support, and other initiatives that enhance the appearance of the Project Area as well as the quality of life for residents. Projects and activities within tills category include job creation and retention initiatives, policies or programs that enhance t:ile competitiveness of local residents including job training, and skills development, marketing programs, and other promotional projects, events, or activities. Table 11-3 Projected Five Year Non-Housing Expenditures North Richmond Project Area FY 2004/05 to FY 2008/09 Projects and Activities 2004/05 to Projected Current Expenditures Expenditures Capital/Public Improvement S558,525 $400,000 Projects Community Improvenlent/ S210,737 $3,699,83(; Economic Development Activities Total Expenditures $769,262 S4,099,83)6 Source:Contra Costa County Redevelopment Agency, The Agency will also continue to meet its Housing Fund obligations, make debt service payments, pay pass-through payments to other agencies, and cover administration and technical assistance costs. Contra Costa County Redevelopment Agency 11-21 Amended Five Year Implementation Plan G. Linkage Between Project Area Improvements and Elimination of Remaining Blight The Agency's actions since the adoption of the North Richmond Project Area have eliminated a significant amount of blight. However, the lack of public infrastructure, an economic base and community improvements continues to thwart the eradication of remaining blight. Remaining economic blight in North Richmond includes a lack of necessary commercial facilities (grocery stores, banks and other lenders, etc.), a high crime rate, and abnormally high business vacancies and turnover rates. Persistent physical blight includes unsafe and unhealthy buildings, incompatible adjacent and/or nearby land uses, and inadequate public improvements, namely the lack of sufficient flood and drainage infrastructure. The Agency's proposed programs and expenditures will help eliminate this remaining blight in the Project Area. Community improvement activities, such as support for neighborhood-serving businesses, the efforts to reduce illegal dumping, cooperation with the CDBG program, and work with non-profit and other developers, will help attract and retain necessary commercial facilities, as well as lower business vacancies and turnover rates. Streamlining the permitting process and the Community Preservation-Abatement and Revolving Loan Program will address unsafe and unhealthy buildings by encouraging new construction and rehabilitation. Neighborhood safety and crime prevention activities, such as targeted code enforcement, graffiti removal, Abatement Attorney, Resident Deputy, and equipment such as security cameras will help improve the health, safety, and general welfare of Project Area residents and workers. ECOiIQI]]lc development promotion programs that encourage job creation and increase local economic activity will provide alternatives to crime for the unemployed and more generally strengthen the local economy. Finally, the myriad of capital projects underway in the North Richmond Project Arca will help eliminate blight caused by incompatible land uses, deteriorated buildings, poor circulation and access, inadequate drainage,and poor design. H. Affordable Housing Obligations The Agency is required by the CRL to meet certain obligations with respect to the provision of affordable housing and the expenditure of tax increment funds on affordable housing. In summary, there are three basic: legal requirements that the Agency must meet: Housine Production — For certain project areas, the Agency must make available specified minimum percentages of new or substantially rehabilitated housing units available to very low, low and moderate income households at a legally defined affordable housing cost.' -] Replacement Housing — The Agency must replace housing units removed from the housing stock in a project arca as.a result of redevelopment activities within four years at a legally defined affordable housing cost. Housing Fund Expenditures - The Agency must set-aside and spend at least 20 percent of tax increment revenue (Housing Fund) to improve, preserve, and/or produce affordable housing for targeted segments of the project area residents, Nvith various conditions on Ihcir use. The housing production obligation applies to redevelopment plans adopted on or atter January I. 1976.and territory added to proiect areas by amendment adopted on or atter January I. 1976.The Agency must include a plan fur how it intends to meet its housin_production obligations in its implementation plan. Contra Costa County Redevelopment Agency 11-22 Amended Five Year Implementation flan The following* sections of this implementation plan describe.the Agency's Affordable I lousing Program and specifically outline how the Agency will meet its legal obligations. The Agency's Affordable Housing Program is guided by the most recent adopted and certified ,Housing Element, as well as the County's regional fair share housing needs allocation and various County policies and programs to promote affordable housing. I. Overview of Agency's Affordable Housing Program During the five year implementation plan period, the Agency will concentrate on affordable housing activities that are most applicable to the Agency's goals and objectives. The Agency recognizes the important role of the Affordable Housing Program and its activities in its overall Redevelopment Program. Consequently, the proposed /\ii'ordable Housing Program should be viewed not simply as the Illeans of implementing= the Agency's stated goals and objectives related to affordable housing, but as a key element in its overall blight alleviation and revitalization efforts. The Agency's Affordable Housing Program is focused on working with appropriate organizations to facilitate development of a variety of affordable housing activities in the North Richmond Project Area. in developing its Affordable Housing Program, the Agency has been guided by the goals and obiectives of the County's Housing Elcinent of the General Plan, incorporated into this . Implementation Plan by this reference. Through its affordable housing activities, the Agency will support and advance the overall Housing Element programs as well as contribute to the implementation of the policies and strategies identified in the County's General Plan. The Agency is committed to assisting the County in achieving the goals presented in the Housing Element, includin 1 ; Improve housing affordability for both renters and homeowners. _. Preserve the existing affordable llousina stock in Contra Costa County. Increase the supply of housing with a priority on the development of affordable housing. !_ increase the supply of'appropriate and supportive housing for special needs populations. Mitigate potential governmental constraints to housing development and affordability.. i Promote equal opportuniiy for all residents to.reside in the housing of their choice. Promote infill development. The Agency will slake every effort to encourage the preservation, rehabilitation and development of housing affordable to a variety of income levels combining various funding sources. Leveraging other funding sources devoted to the provision of affordable housing will 111aXII171Le the number of affordable units that can be developed or substantially rehabilitated. By partnering and collaborating with other entities dedicated to the preservation and development of affordable housing, the Agency is confident that it will be able to sleet its affordable housing production obligations and Housing Fund expenditure requirements within the compliance period ending in 2014, as well as over the life of the Itedevelopnlent Plan. 'file Affordable Housing Program promotes residential and mixed-use development on vacant and underutilized sites in the North Richmond Project Area. The Agency's Housing Fund revenues will be used in a flexible manner to respond to favorable development, substantial rehabilitation and grant opportunities. In carrying out its purpose to preserve, improve and increase the affordable housing supply, the Agency may use the following*methods: Contra Costa County Redevelopment Agency II-23 Amended Five Year Implementation Plan The Housing Authority and the Agency are continuing to work towards improving Housing Authority sites, including the 224-unit Las Deltas Housing Development and numerous scattered sites and vacant public housing units. F. The Housing Authority and Agency hope to receive a HOPE VI type allocation in the near future to do major rehabilitation. The goals for HOPE VI are physical improvements, management improvements, and social and community services to address the needs of Housing Authority residents. :J The Agency will continue to work with appropriate private, public and non-profit organizations and, when feasible, actively participate in the development of affordable housing. This participation includes, but is not limited to, pursuing lease-to-own or mutual housing projects and the implementation of the Agency's inclusionary housing requirement for new home subdivisions. E Facilitation of affordable homeownership opportunities through the resale of the Parkway Estates, rehabilitated hollies completed by Youth Build homes; the Bella Flora homes (KB Home), the County's First-Time Homebuyer Program and the newly created Individual Deposit Account. (IDA) Program. Additional new home development is also under consideration. 1_1 The Agency will support the ongoing development of the Community Housing Development Corporation of North Richmond by providing prgject based capacity building financial assistance. I Implementation of a multi-year Memorandum of Understanding with Community Housing Development Corporation of North Richmond, Local Initiative Support Corporation, the City of Richmond and the Contra Costa County Housing Authority. The Agency expects to take advantage of various opportunities as they are presented and to initiate actions as necessary, consistent with the CRL: and the County's Housing Element, to preserve and facilitate the development of housing affordable to households whose basic needs are not met by the private housing market. The Agency expects to meet its le�(ral housing production obligations under CRL. The Agency will use the Housing Fund in a strategic approach to assist residential developments and preserve affordable housing within the community and meet the Agency's housing production requirement. It should be noted, however, that several factors may result in estimated expenditures and unit production being either less than or greater than what is projected for any given year. These factors include the timing of the development process, the levels of Housing Fund revenue and other public assistance, the need to amass sufficient funds for an efficiently sized development,and development opportunities. J. Housing Fund Revenues The primary funding source for the Agency's affordable housing activities is 20 percent of the annual tax increment revenue, which is set-aside into the Agency's Housing Fund. The Housing Fund resources are then used by the Agency to facilitate the expansion, improvement and preservation of the affordable housing supply within the Project Area. The Housing Fund balance for the Proiect Area was $421,016 at the beginning of the Implementation Plan period. The Housing Fund balance at the end of Fiscal Year 2006/07 was approximately.$1.3 million dollars. Contra Costa County Redevelopment Agency II-24 Amended Five Year Implementation Plan The Agency is also projected to have accumulated approximately $4.4 million of net tax increment revenues available to fund affordable housing through FY 2013/14. The tax increment revenues will be supplemented by approximately $4.1 million of bond proceeds, $156,725 of interest earned on the Housing Fund,and$866.000 from other and non-agency sources(see"fable II-4). 'Thus, there xvill be approximately $9.6 million of total revenue available to fund affordable housing projects and programs through FY 2013/14. The Agency intends to use the I lousing Fund revenue to leverage other federal and state funds to develop, rehabilitate or preserve more affordable housing. The available funding sources that can be levera<,ed include the Conununity Development Block Grants (CDBG), HOMF. Investment Partnership funds, U.S. Department of Housing and Urban Development funds (HUD), Callf'ornia Housing Finance Agency (CaiHFA), and Department of Housing and Community Development (HCD) low income housing tax credit equity funds. Contra Costa County Redevelopment Agency II-25 Amended Five Year implementation Plan :C4, C !n 'n f^I r 1 O _ 'n . '1., - ' I !n iA ✓ _ � ..� '.C. I n t r1.� 'S) Y OC ^ n' In C Y ^ f< _ - r rl r.1 rl rl rl C. ✓. l �• - J1 Y il.. In a. fd rlIn r"' ^ ':f:j��.. ::'F. 'n :,%>D'.��0. w:::.�1:i.GG. Vl:.",. .'.J - C i 1 -� _�- .� - ^ r•. _ . "O, �'✓..,�rb�"x' •��':.:,'i,�N.O�l�o�y,..�::;:`r'S.Go:Nn^G^`!;'4f,t:''3,::.'.�P.:':.t1';`..KwM_';.'::Pt�'p•1•:.��„�.N:.�!.r'•'�°':�iI�!7'JR,.;•'f•.•rl�Icam�•�''''i:i:t.'`..str^'p.`n�4.:;,�,:_:':_:rMrvr<Y.�:l:'':;S.GCrM!CC4':�.t:':wfPc``;�"::I,,:y'.rxtn`. ry_C r-'O! r r= ^. •`rx n 'Yr;n�a: v, xv7n^4 .fN : Mrl y i y� rJ -• �- i/; 4'] _ At•'•,•7.T,a.'.<. ::.3+ `'i �w? {ffa�.z .:;T;iy �."(ff.::� �r� f �U FVI )' � `.:�I'i�:(`l:: ..'(�1 'f!1.:'.�_ r x f.l f.l ✓. 1� C- til°:.e N'i:P:-%�C•c'@.':'k YJ'j�C x� .y. �.f l f�l 7 .-mac •/•. , .r(.�"J:.l �.;:•. I;,...eo xn lid if. ^'! `� Q •Ci N .7: ".t:•' sn.:(;.T:,yr:'''..N h:l;•.,'::fes:,�,!`r r., P. L '',o.mow• �,n, ,_.�•h,�5:'x:i .v;'!„`z:;:�p t-: :ry o �, - L :,3's'4+C 3••I%fi- a°4 p:'+'°,a lol tin - vi i.y ;xfi.;,ry.F;V ap�•v':::!:. :-:�9�::-".,:4:' .'iY:::r�r.:.: r"1 x., zu r - ca = F C CL• '� p .`. ^ `. C C C •� - _ ._ _ z > ✓ C. C G K .�. `'C, '1' v: CL p � � V� •,� r Y � 04 CL F �• - _ - _ - �' V N co 41 co t .L. C i .fir.• - r., �I S ^ r - _ ii � C n •i. tai "jJr ^ �.' � :L �. v _ _ - G .= t 75 9 i i n p• - _ _ ._ U U • lY/J :1. C U ami rs � L - ^x � U � K. Housing Production Plan The Project Area is subject to the CRL affordable housing production requirements since the Project Area was established atter 1975. In simple,terms, the CRL requires that 15 percent of all non-Agency developed housing units in the Pmjcct Area be affordable to moderate, low,and very low income households of which 40 percent must be restricted to very low income households. The legislation requires the Agency to comply with the production requirements throughout a series often year periods,and through the life of the Plan. If the Agency has fallen behind in its legal requirements to produce affordable housing, then the Agency must assure that all new non-Agency housing developments built in the project area individually meet the production requirement until the-Agency has fully met its production requirement. Conversely, if the Agency has produced more housing than is legally required, then the future number of affordable housing units that are required to be developed within the Project Area will be less. Accordingly, the information below describes the Agency's housing production requirements and presents a plan for how the Agency will meet its affordable housing production obligations. 1. Historical Housing Production and Affordable Housing Obligations The Agency reported that 309 housing units were either developed or substantially rehabilitated within the Project Area between 1976 and FY 2003/04.' The Agency ,also reports that 97 affordable units were produced since Project Area inception to FY 2003/04, of which 54 units were produced for very low-income households.' Since the adoption of the Implementation Plan, an additional 145 units have been produced in the Project Area. No units have been substantially rehabilitated in the Project Arca since the Implementation Plan was adopted. (See Table 1}-5.) The Agency is currently exceeding its legal requirements to produce affordable housing in the North Richmond Project Area. Given the historical production of housing in the Project Area through FY 2003/04, the CRL obligates the Agency to produce only 46 affordable units,of which 19 units must be for very low income households. Due to its excellent past performance, the Agency has produced a surplus of 51 affordable housing units including a surplus of 35 units with occupancy restricted to the very low income households. Since the Implementation Plan was adopted, the Ag=ency has incurred an additional inclusionary obligation of-28 affordable housing units of w-hich I 1 units must be affordable to very.Iow income households. Due to the Agency's surplus in Units, the affordable unit requirement has been.satisfied and a 24 unit very low and 23 unit low and moderate income surplus remains. if the Agency incurs any additional inclusionary The 20011 Implementation Plan identified 55 new housing units and 17 substantially rehabilitated units were developed in the Proicet Area.The Midterm Review identified an additional 169 nexv units and 6 substantially rehabilitated units were developed.Since that time.there were 51 new units constructed and 1 I units substantially rehabilitated in(he Project Area.The CRL currently defines substantialiv rehabilitated unity as all units substantially rehabilitated with Agencv assistance.Substantial rehabilitation means rehabilitation.the value of which constitutes al least 25 percent of the atter rehabilitation value(if the dwelling.inclusive of land value.(33416(b)(2)(A)(iii)). Prier to January I.2002,also included nuiltifaniily units without„Agency assistance. Occupancy of atfbrdable housing for very low income residents is restricted occupancy to households with incomes up to 50 percent ofarea median.Aftordable housing for moderate income.residents is restricted to occupancy by households with incomes up to 110 percent of the area median. Contra Costa County Redevelopment Agency 11-27 Amended Five Year Implementation Plan obligation in the Future, then it will work toward satisfying that obligation prior to the end of the planning period in FY 201 V14. 2. Future Housing Production and Affordable Housing Obligations The Agency has evaluated the potential for future housing production in the North Richmond Project Area through the end of the Redevelopment Plan. Based on tite Agency's analysis of the potential for new development on existing vacant residential parcels, the opportunity for substantial rehabilitation with Agency assistance, the possibility for federal and state funding and the anticipated date of development, the Agency has developed a projection for the number of units likely to be produced in the Ptoject Arra over the next ten years and through the life of the Redevelopment Plan. A total of 580 units are estimated to be produced over the course of the ten year compliance period.4 It is also projected that 95 units of affordable housing will be produced,of which 35 units will be affordable to very low income households. Taking into consideration the surplus from the previous Implementation Plan period as described above, the Agency has currently met its legal requirements to produce affordable housing during the ten year compliance period. Based upon the ten year forecast of housing production in the Project Area, the CRL obligates the Agency to produce 88 affordable units, of which 35 units must be for very low income households. Based on the Agency's past performance and anticipated production of affordable units, the Agency will produce a surplus of 7 units, which will fulfill its affordable unit requirement and offset any projected shortfall for the ten year period. Based on historical production and an analysis of remaining developable residential land, the potential for substantial rehabilitation with Agency assistance, and other opportunities, the Agency projects that a total.of 959 units could potentially be produced in the Project Area prior to the end of the Redevelopment Plan activities. The Agency also anticipates that over the life of the Redevelopment Plan, 222. housing units affordable to very low, low and moderate income households will be produced, and 104 units will.be affordable to very low income, households. The CRL obligates the Agency to produce 145 affordable units, of which 59 units must be for very low income households thus, the Agency expects that it will exceed its affordable housing production obligations over the life of the Redevelopment Plan. During the first five years of the Implementation plan period.the Agency produced 185 housing units in the Project Area. During the following five year period.the Agency estimates 395 housing units will be produced in the Project Area. Contra Costa County Redevelopment Agency II-28 Amended Five Year Implementation Plan o e C u u 0. L go r y kr O N `tro r L C C N V 00 R r o u :f O — u { _ ir, 00 tri v, o r u V: tr, tr, u .. R M u v j M N _ J •CA 7r; cf) U u O C N T M ^ L t — N C O U y tf) r p C r. O G7. Z O O F-WM O :d s" 00 p '7 C O as V tp V C C O _ \ , V lin _ 7 O i r y a+ v �i 71 'J J _ J JJ C i p ,' cc In In E CN y w L O 72 G.. m L L C N c L c y — %— u, U 0. w Z — c >_ U c o u u y u w « Z — < Z cz -p Cc: E U Q L. L. Replacement Housing Requirements The Agency is required to replace any Project Area housing that has been removed within four years alter the removal has occurred. Previous redevelopment activities.resulted in the removal of 9 housing units (seven low income and two moderate income units), totaling* 29 low income bedrooms in 1995. . The surplus affordable units produced by the Parkway Estates and the North Richmond Senior Housing are more than sufficient to fulfill the replacement-housing obligation. This means that the Agency does not have a replacement housing obligation, as all housing units that were removed from the Project Area have been replaced as required by law(See Table 11-6). The Agency may undertake additional projects that could result in the displacement of households in the next ten years. In the event that the removal of housing occurs,the Agency will plan for and undertake replacement of' any units and will follow all state requirements for replacement housing and relocation.' Table 11-6 Replacement Housing Obligation North Richmond-Project Area Units Units Years Removed —Replaced Historical through FY 2003/04(Actual) 9 9 FY 2004/05-FY 2008/09(Estimated) None planned N/A Total 9 9 Source:Contra Costa County Redevelopment Agency. M. Income and Age Targeting Requirements for Housing Fund Expenditures The Implementation Plan must provide annual estimates of the units to be assisted and the expenditures anticipated to be made during the next five years" Accordingly, the Agency plans to spend $3.1 million to support the development of more affordable housing over the next five year period. (See Table 11-7.)The Agency also plans to-allocate Housing Fund expendiuu•cs un at least 35 percent very low income and 20 percent on low income households, and no more than 45 percent on moderate income households in accordance with Section.65584 of the Government Code in addition, the Agency is required to target its Housing Fund expenditures based on housing need by income level and age. Thus, the Housing Fund should be expended to assist households in the same proportion to the-housing need by income, as indicated by the regional fair share allocation, and by age level in the colnnlunity, as indicated by the most recent U.S. Census. Table 11-7 Estimated Affordable Housing to be Produced with Agency Assistance/ As ot'January I.2002,AB 637 requires an agency to maintain a list of displaced households%0lo are to be given priority.The agency may establish rules to determine priority on this list. Compliance with targeting requirements is measured haled on dollars expended over the current compliance period. which ends in 2014. Assembly Bill 637 became effective on January I.2002. Contra Costa County Redevelopment Agency I1-30 Amended Five Year Implementation Plan Housing Fund Expenditures North Richmond-Project Area FY 2004/05 to FY 2008/09 Agency FY 2004/05 dousing Assisted Program" Housing through F1' F1'2007/08 F1'2008/09 Total '%,'Total Units 2006/07 Youtlibuild 10 $938.937 $873,570 $402.700 $2,215,207 Program 72% 117till -)U S0 $700,000 $121.900 S821.900 Program 17", Las Deltas Public N/A $20.000 $30,000 $5,300 $55300 Housing Total 30 $958,937 $103,570 $529,900 $1092,407 Housing . FY FY FY FY FY Total %Total Program' 2009/10 2010/11 201.1/12 2012/13 2013/14 Youtlibuild $300.000 5300.000 5300,000 $300.000 5300,000 $1.500,000 79%, Prouram Infill Pro- $100.000 S100.000 S100.000 $100.000 S 100.000 $400,000 21% Las Deltas Public $0 SO $0 $0 $0 $0 U'.•., Housing Total $400,000 $400,000 $400,000 5400,000 $400,000 $1,900,000 The CRL requires the Agency to allocate its Housing Fund in a manner that is consistent with the housing need allocation by household income distribution in the Contra Costa County's Fair Share Allocation.` Based on the Association of Bay Area Governments (ABAG) determination (or the 1999-2006 County's Pair Share Allocation, the Agency should target at least 35 percent of' its housing funds to very low income households, 20 percent on low income households, and not more than 45 percent to moderate income households. The remainder of the housing I'und should be spent on projects and activities for very low, low or moderate income households.° The Agency met its household income targeting requirements rrom January 1, 2002 through ,lune 30, 2004 and should be able to meet )inure income targeting obligations. Total dousing Fund expenditures during through FY 2003/04 amounted to approximately $35,600. Approximately 86 percent of the Housing Fund was expended on very low income households and 14 percent The Agency Mans to meet its income targeting reiluirements basal on it,fair chart of regional housing needs as determined by ABAG.from,lanuary 1,2002 through the end of the ten year compliance period in 2014. The A¢cncy has the option of spending a disproportionate amoU111 of its housing Funds fbr very lo%v income 170xlscholds and to subtract a coin mensu rate amount from the low and%or moderate income threshold,.The Agency can also provide a disproportionate amount of funding ti,r low income housing by reducing the amount of funds allocated to housing affordable to moderate income households. In no event can the expenditures targeted to housing aflordable to moderate income households exceed the threshold amount W percent). Contra Costa County Redevelopment Agency 11-11 Amended five Year Implementation Plan was expended on low income households. The perccntage of Housing Fund monies spent on each of the targeted income levels was more than adequate to satisfy the requirements of AB 637."' Based on input from Agency staff and review of its housing fund expenditures from Fiscal Year 2004/05 through 2006/07, the Agency is currently satisfying targeting requirements and will continue to do so throughout the duration of the Implementation Plan period. ABAG has determined the County's Fair Share Allocation for 2007-2014 adjustingthe Agency's targeting requirements during the nest Implementation Plan covering FY2009/10 through 2013/14. The Agency's new targeting requirements require that housing fund expenditures are spent on at least 39 percent very low income and 28 perccnt on low income households, and no more. than 33 percent on moderate income households. The Agency will focus on continuing to meet targeting requirements determined by ABAG for 1999-2006 until the nest implementation plan period. Table 11-8 shows the Agency's expenditures by income level to date and prgiccted expenditures for each year from 2007/08 to 2013%14. Table 11-8 Projected Housing Fund Targeting Expenditures North Richmond Project Area FY 2004/05 to FY 2013/14 Minimum Maximum Affordable Targeted to Minimum 'Targeted to Housing Projects Very Lois Targeted to Low Moderate Total and Programs income Income Families Income Families Families County's Fair Share Allocation 351.•,i, 20'io 45% 10t1'!SI 2006-2014 FY 2004/05- 2006/07 $335,628 $191,757 $431,522 $958,937 FY 2007-08 $561.250 $320.714 $721,607 $1.6113,570 FY 2008-09 $1.85,465 5105,980 $238,455 $529,9110 FY 2009-10 $140.0Oo S811,t100 $180,000 5400.000 FY 2010-11 $140.000 $sl),utio $180.00u . $400.000 FY 2011-12 $140,0110 S8U.000 $18x1,000 5400.000 FY 2012-13 $140.000 $80,000 $180.000 $400,000 FY 2013-14 $140.000 $80.001) $180,0110 $400,000 Total $1,782.342 $1,018,481 $2,291,583 $5,092,407 %Total 35 (()n 45c; 1(10 SOUI-CC Contra Costa Ci Unty Redevelopment Agency . a. Housing Program costs do not include Agency administration costs. b.The Agency must not exceed spending this percentage on moderate income housing, unlike very loNv and loNv that are minimum percentage requirements. Source:Contra Costa County Redevelopment Agency and Association of Bay Area Governments. The CRL also requires the Agency to allocate its housing funds in a way that is consistent with the population by age distribution present in the community. In 2006, the CRL's formula for determining the amount of expenditures for households with a member under age 65 changed to lousellold income targeting expenditure data%vas provided by the Agency. Contra Costa County Redevelopment Agency 11-32 Amended Five Year Implementation Plan "low income households with a member under age 65". :The Census Bureau does not provide data in this format; the Agency does not need to address this until the next Implementation Plan is completed and will continue to work with the preexisting age targeting goals. That is, the Agency should spend no more than 1 I percent of its Housing Fund to support age restricted affordable housing." The Agency has not expended funds on age restricted housing.' Thus, the percentage of Housing Funds spent on non-age restricted housing is more than adequate to satisfv the CRL requirement of'a minimum expenditure of funds on tion-ague restricted housing for the first two years of the current compliance period. The Agency will continue to monitor I lousing Fund expenditures in order to comply with the requirement for minimum expenditures on non-age restricted housing. N. Projected.10 Year Non-Housing Projects and Activities The Agency will undertake affordable housing projects and programs in the North Richmond Project Area during a ten-year planning period from 2004/05 to 2013/14 in order to comply with affordable housing production requirements mandated by the CRL,. The Agency will work to expand the Project Area's supply housing affordable.to very low, low and moderate income persons. A nummuni portion of housing will be non-age restricted and a maximum portion housing will be restricted to seniors age 65 and over. The anticipated expenditures listed under each proiect reflect expenditures through FY 2013/14. Proiect/Program Description Expenditures Anticipated Completion Yourhbuild Program Expenditures to Date: Anticipated Completion: The Agency will fund the Youth Build program, which $93£,937 Ongoing helps young participants work year round with licensed contractors to apply their newly acquired Anticipated skills to rehabilitating blighted properties in the North Expenditures: Richmond area. $2,776,270 The program provides local youth with an outlet,other than drugs and crime, to learn the necessary job skills, which they, as a result, can use for future employment opportunities. Once homes are rehabilitated, they are sold to qualified,low-income, first-time homebuyers. The determination of the targeting by age is based on 2000 Census data.which indicates that 89 percent of the County's population is under 65 years ofage.This requirement mist be achieved over the period between.laniary I. 2002 and the current compliance period ending in 2014. Data on agc restricted affordable housing expenditure was provided by the Agency. Contra Costa County Redevelopment Agency I1-33 Amended Five Year Implementation.Plan In-Fill Acquisition/Predevelopment Expenditures to Date: The Agency has planned to initiate various site SO 2020 acquisitions and form various partnerships to facilitate new affordable housing projects, mixed use Anticipated developments, and retail/commercial projects. The Expenditures: project, which will burin in Fiscal Year 2008/09, 51,221,900 involves numerous scattered sites (single family and duplexes), vacant land, and abandoned buildings throughout the community that are in need of substantial rehabilitation and upgrades. 'these projects would help eliminate blight by improving severely deteriorated and dilapidated buildings, eliminating factors that hinder the viable use of properties, and the remediation of hazardous waste sites in the Project Area. Las Deltas Public-Housing Reuse Program Expenditures to Date: The Agency, in collaboration with the Housing $20,000 2015 Authority of Contra Costa County ("Housing Authority"), funds the Las Deltas Reuse program, Anticipated which aims to revitalize 224 units of' Public Housing Expenditures: that are in clusters and scattered throughout the $55,300 Project Area. The program will enable the Agency to remediate a number of physical and economic blighting conditions, thereby, improving the health, safety and welfare of Project Area residents. More specifically, the Agency will be better suited to address blighting conditions such as the age, obsolescence,deterioration and dilapidation, and absentee ownership that these housing units exhibit as well as surrounding properties in the neighborhood. Expenditures to Date: $958;937 TOTAL Anticipated Expenditures: $4,053,470 Contra Costa County Redevelopment Agency 11-34 Amended Five Year Implementation Plan O. Completion of Housing Obligations The Agency is required to comply with and fulfill its affordable housing responsibilities, including housing fund, replacement housing, and of )rdable housing production responsibilities, prior to the expiration of the time limit on redevelopment plan effectiveness." The laws further requires that for a Redevelopment Project that is within six years of reaching its limit on plan effectiveness, an implementation plan needs to address the ability of the agency to comply with its housing responsibilities. The Project Area will not reach its time limit on plan.effectiveness prior to the expiration of this implementation plan and is not within six years of reaching this time limit, thus this implementation plan does not need to address how the Agency will complete its housing obligations. CRL.Section 33333.3.as amended by SB 211. Contra Costa County Redevelopment Agency '11-35 Amended Five Year Implementation Plan APPENDIX NORTH RICHMOND ADOPTED RELOCATION POLICIES- Excerpt from the June 1987 Report on the Redevelopment Plan for the North Richmond Redevelopment Project. RSG APPENDIX B / 104 increment support. Assume that these improvements are deemed crucial to the development plans of the property owners. The new developments planned by the owners could support part, but not a]_1 of the annual debt service costs of an assessment district established to finance the public improvements. Once completed, the proposed developments would,. of course, generate tax. increment revenue. This scenario describes the classic redevelopment "chicken-and-egg" financing problem. An innovative solution would be for the Agency- to pledge all or a portion of the tax increment generated by the proposed developments to pay a portion of the annual assessment district obligation, thus bringing down the cost of the assessment district to .a level that the new developments can support. These aretwo illustrations of the ways in which an innovative, aggressive Agency can turn its future flow of tax increment revenue into front-end capital to undertake needed redevelopment activities on an accelerated schedule. Yet another approach that merits careful evaluation is the HUD Section 108 loan program. To overcome the classic chicken-and-egg financing problem, HUD has established a program to provide front-end capital loans to be :repaid over time with a portion of a local government's future flow of CDBG revenues. HUD has recently expressed. a willingness to secure such Section 108 loans with the future flow of tax increment revenue from a .redevelopment C project., thus increasing the amount of front-end capital that may be borrowed. This Report has established the basic financial feasibility of the Plan. The real test for the future will be to use the combined initiative and ingenuity of the Agency and the private :sector to actually implement the Plan in a manner that is * cost-efficient, timely and responsive to evolving market conditions andcommunity needs. . PART IV. GENERAL RELOCATION PLAN A. 'INTRODUCTION This plan sets forth the general policies for the administration of the relocation program and the provision of services and benefits to displaced families, individuals, businesses, and community institutions. This document should be consideredas only it general plan. As recommended in an October, 1982 State Department of Housing and Community Development study entitled "A Study of Relocation and Housing Development in California Redevelopment Agencies," a comprehensive and detailed plan will not be developed until relocation is imminent. At that -44- -time, a more specific analysis will be prepared, pursuant to 'Title 25, Section 6038 of the California Administrative Code. It should be noted at the outset that the Plan contemplates relocation of only a very limited number of households and businesses, and that relocation will most probably occur only in the small portion of the Project Area in which the General Plan . contemplates development of a neighborhood commercial district. Further, the Agency does not intend to commence any necessary relocation in this area until it has firm commitments from competent developers that the desired redevelopment of the area will take place in a timely manner. B. RELOCATION POLICIES AND PROCEDURES in order to implement the California Relocation Assistance Act in the North Richmond Project Area, the Contra Costa County Redevelopment Agency has adopted for local use the relocation guidelines issued by the State of California, Department of Housing and Community Development, pursuant to Government Code Section .7268 and Health and Safety Code Section 50460. These relocation guidelines are set forth in the California Administrative Code, Title 25, Chapter 6, Subchapter I (Section 6000 et ses. ) and are incorporated fully herein by this reference. Relocation of displaced persons, families, and businesses within the North Richmond Redevelopment Project Area Cwill be accomplished in full compliance with the State guidelines. It is the policy of the Contra Costa County Board of Supervisors and the Contra Costa County Redevelopment Agency that: 1) Redevelopment activities Oill be carried out in a manner which minimizes relocation and hardship; 2) No persons or families of low--and moderate-income shall be. displaced unless: and until there is a suitable housing unit available and ready for .occupancy by -such persons which is safe, decent and sanitary and available at comparable rents; 3) . All displaced families and individuals will be afforded the opportunity to live in a decent, safe and sanitary dwelling without overcrowding; 4) The cost of such housing shall be reasonable relative to family income; 5) There will be no discrimination based upon race, color, creed, religion, se:x, . sexual orientation, marital status, national origin or ancestry. in relocation activities; -45- C.. 6) Displaced households will be offered the opportunity to occupy housing that is reasonably accessible to their places of employment, public transportation, shopping and public facilities; 7) Business concerns and nonprofit or.ganizations. to be displaced will be provided maximum assistance to aid in their satisfactory re-establishment with a minimum of delay and loss of earnings; 8) Eligible persons will be made aware of the availability of relocation benefits and assistance within 15 days following -the initiation of negotiations for a parcel of property; 9) Each eligible person and business will be provided :information on availability and prices of comparable sales and .rental. housing and commercial properties. When necessary, counseling and referral service will be provided; 10) Persons and families of low or moderate income displaced by the redevelopment project will be given priority in renting or buying any low- or moderate-income housing units developed in the North Richmond Redevelopment Project Area. Rules and regulations detailing procedures for providing services and making payments will be made in accordance with the above-mentioned .guidelines and applicable state law. C. RELOCATION STANDARDS 1. Physical' Standards a. Decent, .Safe, and Sanitary . All replacement units must be structurally sound, in 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 . b. Comparable to the Existing Dwelling All replacement dwellings must be comparable to the existing dwelling with respect to number of rooms, habitable living space,. and type and quality of construction, but not lesser in rooms or living space than necessary to accommodate the displaced person. 2. - Financial Means C -46- All replacement dwellings must be within the financial means of the displaced person. A replacement dwelling will be considered within the financial means of a displaced person if the monthly housing cost (including payments for mortgage, insurance, fees, if any, and property taxes) or rental cost (including utilities and other reasonable recurring expenses) minus relocation payments available to the person (as provided in Section F. below) does not exceed 25% of the family or individual gross monthly income. A replacement dwelling is also within the financial means of a displaced person if the purchase price of the dwelling, including increased interest costs and other reasonable expenses, does not exceed the total amount of just compensation provided for the acquired dwelling and the replacement housing payment available to the person. 3. Environmental Standards Replacement dwellings shall be in areas not subject to unreasonable adverse environmental conditions from either natural or man.-made sources, and not generally less desirable than the acquired dwelling with respect to public utilities, public and commercial- facilities and public services, and reasonably accessible to the displaced person's place of employment. 4. Equal Opportunity. Standard Replacement housing shall be available to all persons - regardless of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry or any other characteristic protected by state or federal law. D. METHODS FOR ASSURING AVAILABILITY OF RELOCATION HOUSING The Redevelopment Agency will work with the Housing Authority of Contra Costa County and nonprofit sponsors of other subsidized housing within the County so that those persons who may be eligible and wish to apply for subsidized housing within the County can be assisted in obtaining priority for placement in those units. It is recognized, however, that waiting lists are quite extensive, federal subsidies are limited, and it will be difficult to obtain placement in subsidized units. Information on the. private housing sector will be compiled and updated to ensure availability of necessary units. Sections H and I below provide an assessment of relocation needs and resources at the time of Plan adoption which provides the Agency and the Board of Supervisors with a basis for determiningthat it is feasible to relocate the limited numbers of households that may be required to be relocated as a result of Plan implementation. If, during the. course of program implementation, it is determined that adequate replacement housing is not available and -47- cannot otherwise be made available, the Agency may take action to develop such housing in accordance with state guidelines. E. RELOCATION NEEDS AND SERVICES 1 . Determination of Need Prior to the preparation of the detailed Relocation Plan, the Agency will interview all eligible persons, business concerns and nonprofit organizations to obtain information to plan for housing and business accommodations, as well as counseling and other assistance needs. The Agency will cooperate with any other organization which might be conducting surveys in the area at the same time to avoid duplication. A referral system for social service needs will. be established.. Survey results will be updated as appropriate. The purpose of the survey and nature and .extent of relocation payments and assistance that may become available will be discussed with each individual during the interview. On the basis of information obtained during the interview, the Agency will prepare and maintain a relocation record for each person to be displaced. The record will contain a description of the pertinent characteristics and the assistance which will be required. 2. . Information Programs Written informational materials will be prepared and distributed to all potential displacees. Public meetings with the relocation staff' will also be held. The address, telephone number and business hours of the Agency and the name of the Agency staff person supervising relocation will be made available, as well as a written description of the procedure for filing grievances. 3 ., Assistance in Obtaining Housing Displacees will be provided full access to relocation resources and assistance will be provided in obtaining and moving to suitable locations. Information on sizes, rental and sales prices of units will be recorded and made available at the Agency office to those seeking housing referrals. Contacts will be maintained .with real estate agents, brokers, landlords and others for the purpose of obtaining listings of standard relocation housing. Units will be inspected prior to referral to determine whether they are decent, safe and sanitary. 4. Social Services -48- Displacees who require assistance will be referred to the appropriate social service resource. Counseling will be available prior to, during and after relocation. Employment, financial, educational, health and other services will be offered, and relocation staff will follow up on all referrals to determine whether appropriate assistance has been provided. . 5. Assistance to Business Concerns and Non Profit Organizations It is anticipated that only approximately two businesses will be displaced by the Redevelopment Project. Agency staff assistance will be provided to aid in nearby relocation of the businesses. Information will be maintained on the availability, . costs and square footage of commercial and industrial locations and listings will be requested from real estate brokers who may be able to provide information on suitable accommodations for businesses. Efforts will be made to keep the businesses within the redevelopment area, if possible. 6 . Eviction Policy To . the extent possible, the Agency will attempt to acquire property only where there is a willingness to sell on. the part of the property owner. Occupants of .acquired properties will be evicted only as a last resort_ Eviction will not affect the eligibility of displacees to receive relocation payments. F. RELOCATION PAYMENTS Relocation payments will be made to all eligible displaced persons, businesses and nonprofit organizations pursuant to Section 7260 of the Government Code. Assistance in completing applications will be provided. G. GRIEVANCE PROCEDURE Any person who disagrees with a determination regarding eligibility for, or amount of, a relocation payment, or who believes the Agency has failed to refer him or her to comparable replacement housing, may have his or her claim reviewed. As a first step, a grievance should be brought to the Executive Director of the Redevelopment Agency. If a displaced person believes that his or her complaint has not been satisfactorily answered, he or she may appeal to the Relocation Appeals Board. This Board will promptly hear all complaints relating to relocation and will determine if the Redevelopment Agency has complied with applicable laws. After the public hearing the Relocation Appeals Board will present its findings and recommendations to the Redevelopment Agency. -49- H. POTENTIAL RELOCATION WORKLOAD . 1. General The plan envisions that relocation of households and businesses will probably be limited to the two to three block area designated as a neighborhood commercial district in the General Plan. The programs slated for the remaining portions of the Project Area - housing rehabilitation, infill housing development, infrastructure improvements, the facilitation of industrial development, and the provision of community facilities will not require any residential or commercial relocation. 2 . Residential Relocation While the exact number of persons to be displaced due to Agency land acquisition or owner. participation agreements will not be known until specific project activities are approved, it :is estimated that approximately six households will be eligible for the Agency's relocation program. 3. Commercial Relocation It is anticipated that approximately two businesses may be displaced. I. HOUSING RESOURCES �- 1. Conventional Public Housing, Section 8 and Other Subsidized Units. There are 226 units of conventional public housing in the North Richmond Redevelopment Project Area which are administered by the .Housing Authority of Contra County County. At this time, there are 75 households on the waiting list for these units and the Housing Authority has not accepted applications for public units in North Richmond since October, 1986. The County Housing Authority also processes Section 8 certificates. Currently 5,000 households in Contra Costa County are receiving rental subsidies through the Section 8 program. 682 of these households reside in North Richmond and the City of San Pablo. Additionally, there are a number of subsidized housing projects sponsored by private non-profit agencies in Contra Costa. County. They will be utilized as a housing resource wherever possible. While the waiting lists for existing publicly-subsidized housing units are lengthy, such housing remains a viable option C_ -50- for the relocation of at least a portion of any households displaced by redevelopment activities since, as redevelopment displacees, such households are eligible for automatic preference on the waiting lists. 2. Private Market Resources Even given preferential treatment on waiting lists for public housing and the limited number of prospective displacees, it may not be possible to find suitable housing for all such displacees in publicly-assisted units. However, the private housing market in the Western portion of Contra Costa County should provide adequate resources to meet the maximum possible relocation requirements. The best snapshot of housing availability in the vicinity of the Project is provided by the following housing vacancy rates established by the .1980 census, as updated by the County demographer on the basis of new housing units completed: Location . Total Units Vacant Units Vacancy Rate Ric�onn 31, 157 111314.21 San Pablo 9, 119 444 4.87 Pinole 5,655 203 3.59 Hercules 3 , 588 25 .7 El Cerrito 10,171 120 1.18 C (Source: State Department of Finance, Population Research Unit) These housing availability numbers far exceed the maximum relocation requirement of six households anticipated during the entire 40 year life of the Plan, and could readily accommodate the outstanding relocation workload at a given time. Further, the quality of the housing stock in these communities is comparable or superior to the housing in the Project Area. The Agency anticipates assisting in the rehabilitation of approximately 50 existing housing units in the Project Area and in the new construction of approximately 240 units. Pursuant to the General Plan, it is projected that another -approximately 700 housing units will be constructed in the Project Area without Agency assistance. Finally, the Redevelopment Plan itself provides for the allocation of a minimum of $34 million of tax increment revenue for the improvement and expansion of the Project Area housing stock. These resources can readily be applied to produce additional housing for relocation purposes to the extent that public and private market units may prove inadequate to meet needs. C_ -51- j Given the small number of prospective displacees and the level of available and projected publicly-subsidized and private market housing units in the immediate vicinity of the Project Area, together with the "last resort" resources available to the Agency to meet any unanticipated shortfall, it is reasonable to " conclude that the Agency can provide suitable dwelling units in :numbers equal to or greater than the maximum foreseeable .relocation workload. Pursuant to State law requirements and Agency goals, a substantial number of the newly constructed units will be affordable to low and moderate income households, including households earning less than 50% of the area median income. Subsidies will be made available to assist any displacees who are relocating into housing which is not within their "financial means" (as defined in Section C of this General Relocation Plan) . As noted in subsection 3 below, developer assistance to meet relocation costs will be sought wherever feasible and will be required as a condition for land assembly assistance when other sources for paying any necessary ,subsidy are unavailable. In addition, to minimize the impact of relocation costs on worthwhile, but economically marginal, private developments, the Agency anticipates the use of tax increment revenue in selected instances to write-down land assembly costs and thus, effectively . pay any necessary subsidy. Part III, Section C describes in detail the land write-down technique. The required amount of subsidy should not put a major strain on developer or Agency resources, even if. a few households are well below the median Project Area income or need large units, since the maximum relocation workload for the entire Project is only ten households. In summary, it is reasonable to conclude at the time of adoption of the Redevelopment Plan that the Agency has a feasible method, .and that sufficient suitable housing units are or can be made available at affordable cost, to meet the maximum. foreseeable relocation workload to be generated by the Plan. As emphasized in Section A above, specific relocation plans, containing detailed household and housing availability surveys, will be prepared at the initiation of each particular land assembly project to ensure that such conditions prevail at that gime as well. Land assembly involving relocation will be authorized by the Agency only if the specific relocation plan can ensure the availability of sufficient suitable and affordable housing to meet the specific relocation needs created by the land assembly project. 3. Developer Assistance t` -52- In those cases where a developer seeks Redevelopment Agency assistance for a project in the redevelopment area which requires relocation, the developer may be required to. assume all or a part of the cost of relocation as a condition of receipt of Redevelopment Agency assistance. J. RELOCATION OF BUSINESSES It is anticipated that only two businesses will be displaced by the Redevelopment. Project. Staff assistance will be provided to aid in nearby relocation of the businesses, and efforts will be made to keep the businesses within the redevelopment area, if possible. The Agency will give preference to businesses currently within the Project Area to continue or to re-enter the business in the manner set forth in the Agency's adopted Rules for Business Preference and Owner Participation. The proposed new neighborhood commercial district in the Project Area represents a major potential location for the relocation of displaced businesses. K. PROJECTED DATES' OF DISPLACEMENT Development of a neighborhood commercial district in the Project Area is projected to be completed between 1993 and 1998. In order to permit these facilities to be constructed according to this schedule, relocation of businesses and households is C likely to take place over a five year period between 1993 and 1998. -53- APPENDIX C 19137 ANALYSIS OF THE PRELIMINARY PLAN & ORIGINAL PRELIMINARY PLAN- Excerpt from the June 1987 Report on the Redevelopment Plan for the North Richmond Redevelopment Project. Q RSG APPENDIX C / 105 PART V. ANALYSIS OF PRELIMINARY PLAN A. Preliminary Plan for the North Richmond Redevelopment Project Area was adopted 'by the Planning Commission on November 18, 1986. The Pr.e'liminary Plan set forth the boundaries of the Project Area, the. existing and proposed land uses, the principal streets, population densities and building intensities, proposed standards for redevelopment, as well as the anticipated impact of the Project upon the surrounding neighborhood. Agency staff -has developed a final Redevelopment Plan which conforms exactly to the boundaries of, the Preliminary Plan and adopts the same standards, uses and programs set forth in the Preliminary Plan. As there are no changes from the Preliminary Plan, the analysis of the Preliminary Plan is in fact an analysis of the final Redevelopment Plan which is addressed in the body of this Report. The Redevelopment Plan reaffirms provisions in the Preliminary Plan which established standards for development, ensured enforceability of Plan objectives, and required that . development activities conform to the. Contra Costa County General' Plan. Such additions as have been :made in the final Plan have been designed to clarify and provide requisite detail as contemplated by the Community Redevelopment Law. Such additions are fully consistent with the adopted goals and objectives of the Preliminary Plan. \.._ - 4- 5 PRELIMINARY PLAN FOR THE NORTH RICHMOND AREA REDEVELOPMENT PROJECT PREPARED FOR THE CONTRA COSTA COUNTY PLANNING COMMISSION AND THE CONTRA COSTA COUNTY REDEVELOPMENT AGENCY November 1986. CONTENTS I . INTRODUCTION II . DESCRIPTION OF BOUNDARIES OF THE PROJECT AREA. III. STATEMENT OF LAND USE. I'd. STATEMENT OF PROPOSED LAYOUT OF PRINCIPAL STREETS. V. STATEMENT OF PROPOSED POPULATION DENSITIES. VI . STATEMENT OF PROPOSED BUILDING INTENSITIES. VII . STATEMENT OF PROPOSED BUILDING STANDARDS. VIII. ' ATTAINMENT OF THE PURPOSES OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW. IX. CONFORMANCE TO THE GENERAL PLAN. X. GENERAL IMPACT OF THE PROJECT. EXHIBIT 1: PROJECT AREA BOUNDARY MAP EXHIBIT 2: LAND USE MAP PRELIMINARY PLAN FOR THE NORTH RICHMOND AREA - REDEVELOPMENT PROJECT I. INTRODUCTION The North Richmond Area Redevelopment Project Preliminary Plan has been prepared pursuant to the Constitution of the State of California, the Community Redevelopment Law of the State of California, and all applicable laws and local ordinances. The California Community Redevelopment Law requires the Planning Commission of the local jurisdiction to formulate a preliminary plan for each project area. The preliminary plan is the basis for the development of the ulti- mate redevelopment plan. In general terms, the preliminary plan must describe the boundaries of the project area, provide a general statement of. land uses, layout of principal streets, population densities, building intensities and standards proposed as a basis for the redevelopment of the project area. The Preliminary Plan should show how the project goals would be attained by redevelopment, show conformance of the preliminary- plan to the General Plan, and describe the impact of the project upon residents thereof, and upon the surrounding neighborhood. II . Description of Boundaries of the Project Area: The North Richmond Redevelopment Project Area, as proposed, is as shown on the "Project Area Map" attached hereto as Exhibit 1. The area is commonly known as the "unincorporated" area of North Richmond, and is bounded .entirely 'by the City of Richmond. III. Statement of Land Use. As a basis for the redevelopment of the Project Area, it is proposed that, in general , the land uses in the Project Area shall be Residential , Retail and Commercial , Industrial , Service and Recreation as illustrated on the "Land Use Map" attached hereto as Exhibit 2. IU.. Statement of Proposed Layout of Principal Streets. As a basis for the redevelopment of the Project Area, it is proposed that, in general , the principal streets be as shown on the Project Area Map, to include: A. North-South Streets: 1. State Route 93 (proposed North Richmond Bypass) 2. 3rd Street B. East West Streets: 1.. 'Chesley Avenue 2. Market Avenue 3. Parr Boulevard Existing streets within the Project Area may be closed, widened or otherwise improved, and additional streets may be created as necessary for proper vehicular and pedestrian circulation.. V. Statement of Proposed Population Densities. As a basis for the redevelopment of the Project Area, it is proposed that, in general , population densities shall be consistent with the densities established in the Land Use Element-Residential of the North Richmond San Pablo Bay General Plan. This element estab- lishes a housing unit density of 5 to 7 units per net acre. This is consistent with both existing and proposed residential development. VI . Statement of.Proposed Building Intensities: As a basis for the redevelopment of the Project Area, it is proposed that, in general , building intensities be controlled by limits on: (a) the percentage of ground area covered by buildings (lot coverage) ; (b) the ratio of total floor area for all stories of the buildings to areas of the building sites (floor area ratio) ; (c) the size and location of the buildable areas on building sites; and (d) the heights of buildings. The land coverage, size and location of buildable areas should be limited as feasible to provide adequate open space. VII . Statement of Proposed Building Standards As a basis for the redevelopment of the Project Area, it is proposed that building standards should generally conform to the building requirements of applicable state statutes and local codes. VIII . Attainment of the Purposes of the California Community Redevelopment Law. The purposes of the California Community Redevelopment Law would be attained by the proposed redevelopment through: (a) the elimination of environmental deficiencies, including but not .limited to, aging, deteriorating and poorly maintained structures; inadequate and obsolete utilities, drainage, sewers and streets; conflicting, incompatible and inappropriate land uses; and small and irregular lots. (b) the assemblage of land into parcels suitable for modern integrated development with improved pedestrian and vehicular circulation. (c) the replanning, redesign and development of undeveloped areas which are stagnant or improperly utilized. (d) construction and/or reconstruction of public facilities and infrastructure necessary to support new development. IX. Conformance to the General Plan of the County of Contra Costa This Preliminary Plan conforms to the- North Richmond Area General Plan of Contra Costa County. This Preliminary Plan proposes a similar pattern of land uses and includes all rights of way and public facili- ties indicated by the General Plan. X. General Impact of the Project upon the Residents thereof and upon the Surrounding Neighborhood. The goals of the Plan should have a positive impact both on the residents of the Project Area and upon the surrounding neighborhood. The area is marked by a high percentage of substandard housing, mixed land uses and uses within buildings, large number of parcels of irregular form and shape and inadequate size for proper usefulness and development, land uses no longer appropriate to the area, and inade- quate and/or deteriorated public improvements and facilities. As such, the proposed Project Area does meet the definition of blight- physical , social and economic as stated in Article 3, Chapter 1, of Community Redevelopment Law. The conditions present are of such a nature and degree that they cannot reasonably be expected to be alleviated by private enterprise acting alone without public partici- pation and assistance. The project proposes to repair or replace deteriorated infrastructure, and stimulate commercial and industrial development through public improvements. JR:krc ra6:nrpp.rpt APPENDIX NEGATIVE DECLARATION O RSG APPENDIX D / 106 CommunityContra Dennis M.Barry,AICP Community Development Director Development Costa Department County 2530 Arnold Drive E. �• o Suite 190 ...:.. Martinez, California 94553-8611 f j . Phone:(925)335-7236 February 14,2008 s�CbI1R NOTICE OF PUBLIC REVIEW AND INTENT TO ADOPT A PROPOSED NEGATIVE DECLARATION NORTH RICHMOND REDEVELOPMENT AREA PLAN AMENDMENT Pursuant to the State of California Public Resources Code and the"Guidelines for Implementation of the California Environmental Quality Act of 1970"as amended to date,this is to advise you that the Community Development Department of Contra Costa County has prepared an initial study on the following project: NORTH RICHMOND REDEVELOPMENT AREA PLAN AMENDMENT PROJECT DESCRIPTION: The proposed project involves amending the Redevelopment Plan for the North Richmond Redevelopment Project Area (Project Area) as authorized by the California Community Redevelopment Law(Health and Safety Code Section 33000 et .), to increase the limit on the amount of tax increment that may be received by the Agency from$60 million to$712 million and to increase the limit on the amount of outstanding bonded indebtedness from$30 million to $270 million (subject to further refinement and adjustment by the Agency as appropriate), to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan. The North Richmond Redevelopment Plan was adopted by the Contra Costa County Board of Supervisors on July 14, 1987 by Ordinance No. 87-50,as amended by Ordinance No. 94-63,adopted on December 6, 1994,and as. farther amended by Ordinance No. 99-06, adopted on February 23, 1999. PROJECT LOCATION: The Project Area is located on the west edge of Contra Costa County between the Cities of San Pablo and Richmond and San Pablo Bay. The primary access to this unincorporated area is via the Richmond Parkway,which connects Interstate 80 with interstate 580. Secondary access routes to the area include Parr Boulevard, Brookside Drive, Market Avenue, Chesley Avenue, Hensley Street, and Filbert Street (Third Street). The Project Area consists of approximately 900 acres of flat,bayside land. The lower reaches of two drainages,San Pablo Creek and Wildcat Creek,traverse the area. Lands to the west are predominately San Pablo Bay wetlands. The south portion of the Project Area is primarily residential, with some light-industrial and commercial uses south of Wildcat Creek and heavy industrial and agricultural (green house) uses north of Wildcat Creek. No significant impacts have been identified in the initial study. A copy of the Negative Declaration and all documents referenced in the Negative Declaration may be reviewed in the offices of the Community Development Department, 2530 Arnold Drive, Suite 190, Martinez, during normal business hours. PUBLIC COMMENT PERIOD The period for accepting comments on the adequacy of the environmental documents extends to 5:00 P.M., Wednesday, March 19, 2008 Any comments should be in writing and submitted to the following address: D'Andre Wells,Redevelopment Project Manager Contra Costa County Redevelopment Department 2350 Arnold Drive, Suite 190 Martinez, CA 94553 It is anticipated that the proposed Negative Declaration will be considered for adoption at a meeting of the Contra Costa County Planning Commission on April 22,2008.Interested parties may contact D'Andre Wells at(925) 335-7236 to confirm meeting date/time. The meeting is anticipated to be held at 7:00 pm at the Board Chambers at 651 Pine Street, Martinez, CA. It is expected that the Board of Supervisors will also conduct a hearing on the amendment to the Redevelopment Plan at the same meeting. n Maureen Toms, AICP Principal Planner cc:County Clerk's Office(2 copies) Public Works-Steve Wright C:\DATA\WP601ADA NRN01. —2— 1 California Environmental Quality Act Environmental Checklist Form 1. Project Title: North Richmond Redevelopment Area Plan Amendment 2. Lead Agency Name and.Address: Contra Costa County Community Development Dept. 2530 Arnold Drive, Suite 190 Martinez,CA 94553 3. Contact Person and Phone Number: D'Andre Wells(925)335-7236 4. Project Location: The North Richmond Redevelopment Area 5. Project Sponsor's Name and Address: Contra Costa County Redevelopment Agency 2530 Arnold Drive, Suite 190 Martinez,CA 94553 6. General Plan Land Use Desination: Various: (Single-Family Residential, Multiple-Family Residential, Commercial, Light-Industrial, Heavy-Industrial, Special-Heavy Industrial, Public/Semi- Public,Parks and Recreation, and Open Space). 7. Zoning: Planned-Unit(P-I J District 8. Project Descri tion: The proposed project involves amending the Redevelopment Plan for the North Richmond Redevelopment Project Area (Project Area) as authorized by the California Community Redevelopment Law (Health and Safety Code Section 33000 et M.), to increase the limit on the amount of tax increment that may be received by the Agency from $60 million to $712 million and to increase the limit on the amount of outstanding bonded indebtedness from $30 million to $270 million (subject to further refinement and adjustment by the Agency as appropriate), to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan. The North Richmond Redevelopment Plan was adopted by the Contra Costa County Board of Supervisors on July 14, 1987 by Ordinance No. 87-50, as amended by Ordinance No. 94-63, adopted on December 6, 1994, and as further amended by Ordinance No.99-06, adopted on February 23, 1999. 9. Setting, Site Description and Surrounding Land Uses: The Project Area is located on the west edge of Contra Costa County between the Cities of San Pablo and Richmond and San Pablo Bay. The primary access to this unincorporated area is via the Richmond Parkway, which connects Interstate 80 with Interstate 50. Secondary access routes to the area include Parr Boulevard, Brookside Drive, Market Avenue, Chesley Avenue, Hensley Street, and Filbert Street(Third Street). The Project Area consists of approximately 900 acres of flat, bayside land. The lower reaches of two drainages, San Pablo Creek and Wildcat Creek, traverse the area. Lands to the west area predominantly San Pablo Bay wetlands. The Project Area includes the primarily residential area, with some light-industrial uses south of Wildcat Creek and heavy industrial and agricultural (green houses) uses north of Wildcat Creek. 10. Other Public Agencies Whose Approval is Required (e.g. permits, financing, approval or participation agreement): Contra Costa County Redevelopment Department 2 ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a"Potentially Significant Impact"as indicated by the checklist on the following pages. Aesthetics Agricultural Resources Air Quality _ Biological Resources _ Cultural Resources _ Geology& Soils Hazards& Hydrology& Land Use& Hazardous Materials Water Quality Planning Mineral Resources Noise Population& Housing Public Services _ Recreation _ Transportation/Circulation Utilities&Service Systems Mandatory Findings of Significance DETERMINATION On.the basis of this Initial Study: I find that the proposed project COULD NOT have a significant effect on the environment, and a ✓ NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a significant effect(s) on the environment, but at least one effect (1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and (2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the effect is a "potentially significant impact" or "potentially significant unless mitigated." An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that.although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects (a) have been analyzed adequately in an earlier EIR pursuant to applicable standards and (b) have been avoided or mitigated pursuant to that earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project. Prepared y: Tali&W0azariavn Date j Approved by: Maureen Toms,Principal Planner Date Contra Costa County Community Development Department SOURCES In theprocess of preparing the Checklist and conducting the evaluation, the following references (which are available for review at the Contra Costa County Community Development Department, 651 Pine Street 5th Floor-North Wing,Martinez)were consulted: 1. Contra Costa County Resource Mapping System—Quad Sheet Panel—Richmond,CA 2. Contra Costa County General Plan,January 2005 3. General Plan and Zoning Maps 4. Project Description 5. North Richmond Redevelopment Plan and Environmental impact Report,July 1987. 6. North Richmond Planned District and Negative Declaration, December 1994. 7. Contra Costa County Code—Title 8(Zoning) 8. Contra Costa County Geographic Information System Data Layers 9. Contra Costa County Important Farmland Map,2002 10. Bay Area Air Quality Management 2.005 Ozone Strategy,January 2006 IL Planning&Zoning Laws 2007 12. California Environmental Quality Act 2007 4 EVALUATION OF ENVIRONMENTAL IMPACTS: Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact I. AESTHETICS—Would the project: a. Have a substantial adverse effect on a scenic vista?(Sources: 4,5,6) X b. Substantially damage scenic resources, including but not limited to, trees, rock outcroppings; and historic buildings within a state scenic highway?(Source:4,5,6) X C. Substantially degrade the existing visual character or quality of the site and its surroundings?(Source: 4,5, 6) X d. Create a new source of substantial light or glare that would adversely affect day or nighttime views in the area?(Source: 4,5,6) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to aesthetics. The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the aesthetic quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. IL AGRICULTURAL RESOURCES— In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to.use in assessing impacts on agricultural and farmland. Would the project: 5 Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact a. Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? (Source: 1,2,3,5,6,8,9) X b. Conflict with existing zoning for agricultural use, or a Williamson Act Contract?(Sources: 1.2,3,5,6.8,9) X C. Involve other changes in the existing environment, which due to their location or nature, could result in conversion of farmland, to. non- agricultural use? (Sources: 1,2,3,5,6,8,9) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to agricultural resources.The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Pian by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. 6 III. AIR QUALITY — Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No lmnaet Incorporated Impact Impact a. Conflict with or obstruct implementation of the applicable air quality plan'? (Sources: 4,5,10) X b. Violate any air quality standard or contribute to an existing or projected air quality violation? (Sources: 4, 5,10) X C. Result in a . cumulatively considerable net increase of any criteria pollutant for which the project region is a non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)?(Sources: 4, 5,10) X d. Expose sensitive receptors to substantial pollutant concentrations? (Sources: 4, 5,10) X e. Create objectionable odors affecting a substantial number of people? (Sources: 4, 5,10) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to air quality. The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and.construction of projects to implement the Redevelopment Plan would be undertaken pursuant to. CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. 7 TV. BIOLOGICAL RESOURCES—Would the project: Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incomoratcd Impact Impact a. Have a substantial adverse effect, either directly. or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? (Sources: 2,5,8) X . b. Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? (Sources: 2,5,8) X C. Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means?(Sources: 2,5,8) X d. Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? (Sources: 2,5,8) X C. Conflict with any local policies or ordinances protecting biological resources, such as tree preservation policy or ordinance?(Sources:2,5,8) X 8 f. Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional or state habitat conservation plan?(Source:2,5,8) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to biological resources. The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. V. CULTURAL RESOURCES—Would the project: Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporatcd Impact Impact a. Cause a substantial adverse change in the significance of a historical resource as defined in Section 15064.5 (Source: 2,4,5) X b. Cause a substantial adverse change in the significance of an archaeological resource pursuant to 15064.5?(Source: 2,4,5) X C. Directly or indirectly destroy a unique paleontological resource or site or unique geological feature? (Sources: 2,4,5) X d. Disturb any human remains, including those interred outside of formal cemeteries?(Sources: 5) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the.limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to cultural resources. The proposed Plan Amendment is necessary to provide sufficient financial resources 9 for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. VI. GEOLOGY AND SOILS—Would the project: Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Imnact Incorporated Impact impact a. Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: X 1. Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. (Source: 5,6,8) X 2. Strong seismic ground shaking? (Source: 5,6.8} X 3. Seismic-related ground failure, including liquefaction? (Source: 5,6,8) X 4. Landslides?(Sources:5,6,8 ) X b. Result in substantial soil erosion or the loss of topsoil?(Source: 5,6,8) X C. Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse?(Sources: 5,6,8) _ X d. Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1998), creating substantial risks to life or property?(Source: 5,6,8) X 10 e. Have soils incapable of adequately supporting the use of septic tanks or alternative waste disposal systems where sewers are not available for the disposal-of wastewater? (Source: 5,6,8 ) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received.by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to geology and soils. The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on• earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. V11. HAZARDS AND HAZARDOUS MATERIALS—Would the project: Potentially Significant Potentially Unless Less Thad Significant Mitigation Significant No Impact Incorporated Impact Impact a. Create a significant hazard to the public or the environment through the routine transport, use or disposal of hazardous materials?(Source: 4,5) X b. Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment?(Source: 4,5) X C. Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances or waste within one-quarter mile of an existing or proposed school? (Source: 4,5) X d. Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65862.5 and, as a result, would it create a significant hazard to the public or the environment?(Source: 4,5) X ]I e. For a project .located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area. (Source: 4,5) X f. For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area?(Source:4,5 ) X g. Impair implementation of or physically interfere with an adopted cmergency response plan or emergency evacuation plan? (Sources:4,5) X h. Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands?(Source: 4,5) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness.is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to hazards and hazardous materials. The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area.Actual development and construction of projects to implement the .Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. 12 VIII. HYDROLOGY AND WATER QUALITY—Would the project: Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated Im act Impact a. Violate any water quality standards or waste discharge requirements? (Source: 4,5) X b. Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table (e.g., the production rage of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? (Sources: 4,5) X c. Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner that would result in substantial erosion or siltation on- or off-site?(Sources:4,5) X d. Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate. or amount of surface run-off in a manner that would result in flooding on-or off-site? (Sources: 4,5) X e. Create or contribute runoff water that .would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff? (Sources:4,5 ) X f. Otherwise substantially degrade water quality?(Sources:4,5 ) X 13 g. Place housing within a 100-year flood hazard area as mapped on a Federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood. hazard delineation map? (Sources: 4,5) X h. Place within a 100-year flood hazard area structures that would impede or redirect flood flows?(Sources:4.5) X i. Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam?(Sources:4,5) X j. Inundation by seiche, tsunami, or mudflow?(Sources: 4,5) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be :received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to hydrology and water quality. The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and,objectives of the Redevelopment Plan by helping to eliminate blight and increase the aesthetic quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. LAND USE AND PLANNING—Would the project: Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No impact Incomorated JWp ct ln:i2= a. Physically divide an established community? (Sources: 2,3.,4,5) X 14 b. Conflict with any applicable land use plan, policy, or the regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? (Sources: 2,3,4,5) X C. Conflict with any applicable habitat conservation plan or natural community conservation plan? (Source:2,3,4,5 ) X SUMMARY: Amending the Redevelopment.Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to land use and planning. The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. X. MINERAL RESOURCES—Would the project: Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact incorporated impact impact a. Result in the loss of availability of,a known mineral resource that would be of value to the region and the residents of the state?(Source: 5) X b. Result in the loss or availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan, or other land use plan? (Source: 5) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to mineral 15 resources. The proposed Plan Amendment is.necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. Xl. NOISE—Would the project result in: Potentially Significant Potentially Unless less Than Significant Mitigation Significant No impact Incorporated Impact Impact a. Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? (Source:4,5 ) _ X b. Exposure of persons to, or generation of, excessive ground borne vibration or ground borne noise levels? (Source: 4,5) X C. A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? (Source: 4,5) X d. A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? (Source:4,5) X C. For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels?(Source:4,5) X f. For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels?(Source: 4,5 ) X 16 SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to noise. The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. XII. POPULATION AND HOUSING—Would the project: Potentially Significant Potentially Unless Less Than ' Significant Mitigation Significant No Impact Ine_pr orated Impact Impact a. Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? (Source: 2,3,4,5) X b. Displace substantial numbers of existing. housing, necessitating the construction of replacement housing elsewhere?(Source:2,3,4.5 ) X C. Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere?(Source: 2,3,4,5) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to population and housing.The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. 17 X111. PUBLIC SERVICES Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No lm act IncoMorated 1M= Impact a. Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services?(Sources:4,5 ) 1. Fire Protection? X 2. Police Protection? X 3. Schools? X 4. Parks? X 5. Other public facilities? X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to public services. The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. 18 XIV. RECREATION Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact lnco!porated lmoact Impact a. Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? (Source: 4,5) X b. Does the project include recreational facilities or require the construction or expansion of recreational facilities that might have an adverse physical effect on the environment? (Source:4,5 ) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to recreation. The proposed Plan. Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. XV. TRANSPORTATION/TRAFFIC—Would the project: Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated lmoact Impact a. Cause an increase in traffic that is substantial in relation to the existing traffic load and capacity of the street system (i.e. result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections?(Source:4,5) X 19 b. Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? (Source: 4,5) X C. Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks?(Source:4,5 ) X d. Substantially increase hazards due to a design feature (e.g. sharp curves or dangerous intersections) or incompatible uses (e.g. farm equipment)?(Source: 4,5) X e. Result in inadequate emergency access?(Sourees:4,5 ) X f. Result in inadequate parking capacity?(Sources: 4,5) X g. Conflict with adopted policies, plans or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)?(Sources: 4,5) X SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by -the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction, and therefore would not result in any negative impacts to transportation/traffic. The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA, which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. XVI. UTILITIES AND SERVICE SYSTEMS—Would the project: Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Im aci a. Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? (Source: 4,5) X 20 b. Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities,the construction of which could cause significant environmental effects? (Sources: 4,5) X C. Require or result in the construction of new storm water drainage facilities, the construction of which could cause significant environmental effects? (Sources: 4,5 X d. Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed?(Source:4,5 ) X e. Result in a determination by the wastewater treatment provider that serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the. provider's existing commitments?(Source: 4,5) X f. Be served by a landfill with sufficient permitted capacity to accommodate the project's waste . disposal needs?(Source:4,5) X g. Comply with federal, state and local statutes and regulations related to solid waste?(Source: 4,5) X 21 SUMMARY: Amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness is an administrative activity which does not involve physical development or construction,and therefore would not result in any negative impacts to utility and services.The proposed Plan Amendment is necessary to provide sufficient financial resources for the Agency to complete the redevelopment of the Project Area consistent with the goals and objectives of the Redevelopment Plan by helping to eliminate blight and increase the quality of the area. Actual development and construction of projects to implement the Redevelopment Plan would be undertaken pursuant to CEQA; which may rely on earlier environmental impact analysis or require additional environmental review when project specific applications are submitted to the County. . XVII. MANDATORY FINDINGS OF SIGNIFICANCE Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact IncoMorated Impact Impact a. Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish and wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? X b. Does the project have impacts that are individually limited, but cumulatively considerable? (Cumulatively considerable means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? X c. Does the project have environmental effects that will cause substantial adverse effects on human beings, either directly or indirectly? X SUMMARY: Amending the Redevelopment Plan does not involve physical development or construction,therefore would not result in any negative impacts to degrade the quality of the environments(see III-Air Quality, IV-Biological Resources,VI-Geologic Problems, as VIII-Hydrology and Water Quality).The Plan Amendment is proposing to help eliminate blight and increase the aesthetic quality of the area. Actual development and construction of projects to implement the Redevelopment Plan will be subject to further CEQA review when project specific applications are submitted to the County. The incremental effects of the proposed project were reviewed in connection with the effect of past projects, current projects and future projects. 'These projects included the North Richmond Redevelopment Plan,the City of Richmond Redevelopment Program,the City of San Pablo Redevelopment Program, the Richmond Bypass project,the I-580/Hoffrrian Corridor highway construction program, development in the Richmond Marina area, and development in the Hilltop commercial and residential area which area all analyzed in the Environmental Impact Report prepared for the North Richmond Redevelopment Plan in 1987. Additional projects reviewed included the West County Integrated Resource Recovery Facility,the City of Richmond General Plan and the Richmond Redevelopment Areas and Amendments, and the acquiring of property within the Project Area to implement the plan. Based on a review of these projects,the cumulative impacts associated with amending the Redevelopment Plan to increase the limit on the amount of tax increment that may be received by the Agency and to increase the limit on the amount of outstanding bonded indebtedness, are less than significant. APPENDIX E NORTH RICHMOND 1987 NEIGHBORHOOD IMPACT REPORT- Excerpt from the June 1987 Report on the Redevelopment Plan for the North Richmond Redevelopment Project. O FSG APPENDIX E / 107 redevelopment activities set forth in the EIR and the Plan. Further, redevelopment activities will produce a positive impact on several entities by assisting . in the financing of facilities and by enabling services to be provided more efficiently. The cumulative financial impact of tax increment financing on taxing entities collectively and on most entities individually should be negligible. A few entities will experience a greater level of impact, but one which can be mitigated effectively through special financial assistance agreements as necessary. The limitations and guidelines set forth in the Plan for expenditure of tax increment revenue have been carefully designed to minimize such impacts while still providing the Agency with :sufficient revenue to accomplish the Plan's ,goals and objectives. The Agency possesses the authority to provide f=inancial assistance to a taxing entity in the future should :significantly changed circumstances result in a serious financial burden or detriment that cannot currently be anticipated. Upon completion of the Plan, the affected taxing agencies will benefit directly from the increased property tax base resulting from the redevelopment program. Based on this evaluation, it is reasonable to make the determination that the Project and the Plan will not cause a ;severe financial burden or detriment to any taxing entity. PART XI.I . NEIGHBORHOOD IMPACT REPORT C A. INTRODUCTION The Project Area contains approximately 900 acres and is located on the iaest edge of Contra Costa County between the City of San Pablo and San Pablo Bay. . The Project Area south of wildcat Creek is occupied for the most part by the North Richmond residential community of 720 mostly single-family low income :homes with scattered commercial uses and churches. The residential area is characterized by a high percentage of vacant, deteriorating and substandard housing. Scattered throughout southern, central, andnorthern portions of the Project Area are numerous wholesale nursery operations containing large, land-extensive greenhouse complexes. Scattered industrial uses also occupy a large portion of the Project Area, primarily along the edges .and in the northern subareas. The Project Area also includes a 10-acre undeveloped park site, a public elementary school (Verde Elementary) and a horse stable. Finally, a portion of the West Contra Costa County Sanitary District Landfill occupies a site onthe northwestern edge of the Project Area. C -74- The Project Area is characterized by a wide-range of blighting conditions, including: deteriorated, obsolete and abandoned structures; shifting of land uses; underutilization of a significant number of properties; inadequate public improvements, facilities and open spaces; and flooding. Please refer to Part II of this Report for a comprehensive description of the Project Area and the blighting conditions affecting the Area. The overall purpose and impact of redevelopment activities will be to provide infrastructure financing, facilitate industrial development, improve community facilities, and upgrade and increase the supply of area housing, in order to eliminate the blighting conditions and to .promote sound development of the Project Area in accordance with the Contra Costa County General Plan. Pursuant to Section 33352 (1) , this Part presents an overview of redevelopment impacts on Project Area neighborhoods and then discusses in greater detail the impacts of redevelopment on the following: traffic circulation; environmental quality; community facilities and services; school population and the quality of education; property taxes; relocation needs and housing (with emphasis on housing production for low- and moderate-income households) . In many instances, the information set forth C in this Part XII is a synopsis of the more detailed information and impact evaluation contained in the Draft and Final Environmental Impact Report for the Plan (Part VII of this Report) . Please refer to the Draft and Final E.IR for such additional information and evaluation. B. OVERVIEW OF REDEVELOPMENT IMPACTS Specific redevelopment-assisted activities include: (1) construction of infrastructure improvements, including street reconstruction, .storm drain and utility improvements and lighting; (2) facilitation of industrial development through land assembly and write-down of land costs; (3) development of . community facilities, including a neighborhood commercial district in the residential area, park and open space improvements, And improvement of street dead-ends in the residential neighborhood; and (4) housing rehabilitation and infill development of affordable. housing. For a more detailed description of potential redevelopment activities, please refer to Part IV of the Plan and Part III of this Report. The direct impact of the redevelopment activities will be to alleviate the blighting conditions in the Project Area. Indeed, the Plan activities have been expressly structured to eliminate -75- the impediments to private development that have been identified in the .Area. The secondary impact of the redevelopment activities will be to (1) generate and accommodate an increased level of industrial and employment related development in the northern portion of the Project Area; (2) stabilize and improve the quality of the existing residential neighborhood; (3) expand the supply of affordable housing in the Project.. Area; and (4) create a more attractive and efficient environment for persons living and working in the Project Area. This growth and stabilization will, in turn, produce several impacts, which are discussed in the . following sections. While it is impossible to define the precise level of development. that will be stimulated by redevelopment, Part V of the Plan suggests that in the range of 900 - 950 new housing units and approximately one million square feet of industrial space will be developed in the Project Area over the life of the Plan. C. TRAFFIC CIRCULATION The redevelopment program is designated both to encourage new development by providing an adequate traffic circulation system and to mitigate the effects of increased traffic generated by such new development. Specifically, planned improvement of Project Area primary and secondary arterials will upgrade these routes to urban collector standards, encouraging the development �.. or redevelopment' of vacant or underutilized parcels. Further, the North Richmond Bypass will draw off through-traffic now using Project Area streets, which will more than offset the adverse effect of Project-related local traffic generation. In particular, heavy truck traffic which now utilizes the local :street system, disrupting the residential neighborhood, will be diverted to the. Bypass. It is anticipated that traffic volumes on local collector streets will be substantially less at full Project Area buildout than they are today. D. ENVIRONMENTAL QUALITY The environmental quality of the Project Area will generally be enhanced by the Plan activities, including: 1) rehabilitation of dilapidated homes; 2) removal of unsightly non-conforming uses from the residential and industrial areas; 3) development of parks and landscaped open spaces; 4) reduction of heavy traffic utilizing Project Area .streets; 5) improvement of .unsightly :street dead-ends in the residential area; and 6) elimination of flooding conditions . These activities are aimed at eliminating the blighting conditions in the Project Area. In general, the public perceives -76- { blighting conditions to be negative environmental factors and the :removal of blight to be an improvement in environmental quality. The Plan will create two additional impacts which have both positive and negative aspects. First, the Plan is intended to stimulate new development, which will tend to increase the density of structures and to create a more concentrated urbanized environment. Depending on the perspective of the individual observer, a more concentrated urbanized environment may be viewed as a positive or negative impact. The activities called for in -the Plan and the mitigation measures set forth in the Draft EIR are designed to permit urbanization to proceed in a more coordinated and beneficial manner to residents and businesses -than might otherwise be the case. Second, the development that is stimulated by the Plan will cause overall increases in traffic and attendant increases .in noise and air emissions. Redevelopment activities related to .improvement of primary and secondary arterials in the Project Area and construction of the North Richmond Bypass are designed -to help mitigate these adverse environmental effects of the ;Plan. Following construction of the Bypass, traffic levels within the Project Area itself are expected to be less than current levels. 19. COMMUNITY FACILITIES AND SERVICES (` The Plan will improve. the availability and quality of public :facilities in the Project Area, including: 1) road and storm drain improvements; 2) open space and parks; 3) development of a :neighborhood commercial district; and (4) improvement of unsightly street dead ends. These improvements will, in turn, lead to improvements in -the provisions of various public services. For example, road circulation improvements should improve traffic circulation, ipermitting improvement in -the response times for fire, police and other emergency services. On the other hand, development induced by the Plan will generate increased demands in the Project Area for police, fire, ,school, and other public services. During the life of the Plan, service-providing agencies that rely on property tax revenue will continue to receive the same level of tax revenue from the :Project Area as they obtained prior to Plan adoption (assuming no change .in tax rate) ,. Increases in tax revenue due to new development will be allocated to the Agency to pay for various :redevelopment activities. Thus, at least during the first approximately ten years of the Plan period, service-providing agencies will have to rely exclusively on increased property tax :revenues from those portions of their jurisdictions outside the C_ -77- Project Area to meet the demand for increased services. As diescribed in Part XI of this Report, the impact on service-providing agencies of "freezing" or holding constant the ProjectArea tax base should not be significant in most instances. In the long run, after the Plan is implemented, all increases in tax revenue from the Project Area will be allocated to service-providing entities to defray the costs of providing expanded services. After the Plan is implemented, the Agency intends to pass-through to service providing agencies tax revenue not needed to pay for redevelopment activities. Further, during the life of the Plan, prior to complete implementation, 'redevelopment activities within the Project Area may produce a "spillover" stimulus to investment in nearby properties outside the Project Area, the tax benefits from which will accrue directly to the service-providing entities. F.. SCHOOL IMPACTS To assist in increasing the supply of affordable housing in the Project Area and the County, the Plan will encourage the construction of housing in the Project Area. It is estimated that over the life of the Plan 900-950 units of housing may be added to the Project Area housing stock. As described in the EIR, this may add as many as 665 school children to the pupil numbers in the Richmond Unified School District. However, this �... increase is expected to be very gradual given the extended buildout period of twenty-five years or more. Because of this extended build-out period, it is difficult to predict the impact Project generated enrollment increases would have -on area schools. Enrollment patterns could change significantly over this period, as could District facilities. The rate at which the residential expansion takes place will be a major factor in determining the impact on school enrollment (i.e. , gradual development would have less significant effects than building new units all at once or in large segments) . In any event, Project-related increases in the residential population would probably require some expansion of school district facilities over the long term. Senate Bill 2926, which became law on January 2, 1987, .provides for the imposition of school impact fees for new development prior to the issuance of building permits. It is anticipated that Project-assisted housing construction will be subject to such impact fees, mitigating the impact of increased school enrollment .due to redevelopment activities. In addition to these growth-related impacts of redevelopment, redevelopment activities will provide direct benefits to the school district and its students by increasing -78- Elementary School as well as open space and recreational improvements to the school site itself. G. - IMPACT ON TAX LEVELS The establishment of a redevelopment project and use of tax increment financing will have no effect on the ad valorem property tax rate or total ad valorem property tax bill levied against properties inside or outside the Project Area. Tax increment financing does not affect the tax rate, but instead alters the distribution of property tax revenue that would be collected in any event, so that a portion (the tax increments. generated by increased assessed value of Project Area .property over the frozen base) is allocated to the Agency to contribute to the elimination of blight in the Project Area. Please refer to Part III for a further discussion of the tax increment financing technique. Some redevelopment activities may be financed in part through the creation of assessment districts. that would levy. taxes against Project Area property. According to State enabling legislation, such assessment districts may be established only with the approval of property owners who together own property representing a majority (or in some instances, a supermajority) of the assessed value of the proposed district. In recognition of the limited resources available to residential and business property owners in the Project Area, the Method of Financing the Plan (Part III of this Report) acknowledges that this use of C assessment districts will not be a feasible financing method in most instances. For this very reason, the establishment of. a redevelopment project and the use of tax increment financing has been established as a last resort financing mechanism to provide blight-alleviating public improvements that cannot feasibly be financed by property owners acting alone. H. RELOCATION It is not expected that more than six households would be displaced over the forty year life of the Plan. As noted in Part VI of the Pian, the Agency will conduct its activities to minimize the relocation of households and businesses. While household relocation involves a certain inconvenience and hardship, the Plan and the accompanying relocation plan (which is set forth in Part IV of this Report) contain policies, procedures and safeguards to minimize such inconvenience and hardship and to ensure timely, satisfactory relocation of any households that must move as a result of redevelopment activities. I. HOUSING -79- As noted above, up to six dwelling. units may be removed from the Project Area housing stock to accommodate redevelopment activities. It is not known at this time exactly how many of these residential units house persons or families of low- or moderate-income, nor how many persons of low- or moderate--income will be displaced by. redevelopment. Until more specific information is available, the Agency is utilizing the number six as an outside estimate of the number of low- or moderate-income units that will be lost and the number of low- and moderate-income households that will be displaced as a result of redevelopment activities. The total number of dwelling units housing persons and families of low- or moderate-income that will be constructed or rehabilitated will depend on the following factors: 1 . The Agency will work with housing developers to ensure that at least the percentage of low- 'and moderate- income housing required by Health and Safety Code Section 33413 (b) is constructed within the Project Area. That Section requires that at least 30% of all units constructed or rehabilitated by the Agency be available at affordable housing costs to low- and moderate- income households, and that at least 15% of all units constructed or rehabilitated by private developers or other governmental entities be available at affordable housing cost to such households. The Section contains further requirements regarding availability of housing to very low-income households. C Of all units that are constructed in the Project Area, at least the percentages described in Section 33413 (b) shall be available at affordable cost to low- and moderate-income households. 2. The Agency intends to use the tax increment housing fund for rehabilitation and new construction of low- and moderate-income housing within the Project Area. Given the limit of $60 million on tax increment revenue that the Agency may claim (please refer to the discussion in Part XI of this Report) , up to $34 million will be available for this purpose. While the number . of units to be constructed or rehabilitated with this housing fund will depend on the mix of new construction and rehabilitation that is undertaken and on the financial terms of the new construction and rehabilitation programs that are employed, the Agency projects that it will, at a minimum, assist in the rehabilitation of approximately 50 housing units and in :the new construction of approximately 240 units. In the later years of the Redevelopment Plan when the major infrastructure improvements have been constructed, it is anticipated that the Agency will use more than the 20 percent set aside mandated by state law for housing related activities. Please refer to the extensive discussion of Agency housing activities contained in Part III', Section C4 of this Report. -80-. 1 Methods for financing construction of housing for low and moderate-income persons and families may include: 1. The housing fund comprising 20 percent of tax increment revenues and additional tax increment revenue available in the later years of the Plan term; 2. Mortgage revenue bonds; 3. Community Development Block Grant funds (if the program exists) ; 4. Other Federal and State housing assistance programs; and 5. Developer contributions. The precise method for financing any specific project that will include low- and moderate-income housing will depend on market conditions and financing availability at the time of development. To the extent feasible, the Agency will .require developers of projects that necessitate removal of units from the low- and moderate-income housing stock to contribute to the replacement of such units. Further, as noted above, the Agency can expect to receive in the range of $34 million of tax increment revenue for housing purposes, a portion of which could be used to finance the costs of any replacement housing obligation, as necessary. It is projected that all of the Plan's relocation and replacement housing obligations will be accomplished within forty years. As required by state law, dwelling units housing low- and moderate-income persons and. families which are removed from the housing market because of redevelopment will be replaced within four years of removal. No persons or families of low- and moderate-income shall be displaced unless and until there is suitable housing available and ready for occupancy by such persons or families. rte' #030/A32006 05/22/87 -81-