BACKGROUND

The City Council and the Redevelopment Agency Board have been implementing the Redevelopment Plans for all four (4) of the City�s Redevelopment Project Areas: Golden State (adopted in 1970), City Centre (adopted 1971), West Olive (adopted 1976), and South San Fernando (adopted 1997).  However, the implementation of the City Centre and South San Fernando Redevelopment Project Areas (�Project Areas�) has been hindered by a shortage of tax increment funds.  In the City Centre Redevelopment Project Area, the tax increment generated is sufficient to cover the Project Area�s debt obligations; however, funds are limited for new projects.  The South San Fernando Redevelopment Project Area, in its sixth year since adoption, is not expected to generate greater amounts of tax increment funds for new projects until later in the life of the plan.  On the other hand, the Golden State Redevelopment Project Area, due to its lengthy existence, has had a greater capacity to generate tax increment funds. 

Therefore, to provide balance, and give the Agency enhanced ability to use tax increment funds in the areas of greatest need, it is proposed that three of the four Project Areas be merged with one another.  West Olive is not part of the proposed merger as the only projects in that area that the Agency foresees is public infrastructure improvements.   The merger would allow the �pooling� of tax increment funds, thereby giving the Agency greater flexibility in the use of funds within the boundaries of the three merged redevelopment project areas.  This flexibility will allow the Agency to concentrate on projects in areas of greatest need and highest priority, such as Downtown (the City Centre Redevelopment Project Area), and the South San Fernando Redevelopment Project Area.  Future projects may include items such as:

�        Downtown Public Parking Improvements;

�        Downtown Traffic and Transportation Improvements;

�        Streetscape programs along major corridors;

�        Utility undergrounding along major corridors; and

�        Infrastructure Improvements.

PROJECT AREA MERGER AND REDEVELOPMENT PLAN AMENDMENT PROCESS

As directed by the City Council and Redevelopment Agency Board, staff has been taking steps leading to the adoption of the proposed project area merger/amendments (�Amendments�) to the redevelopment plans for the Golden State, City Centre, and South San Fernando Redevelopment Project Areas.  The primary purpose of these Amendments is to allow the financial merger of the Project Areas and create the Burbank Merged and Amended Project Area (�Merged Project Area�).  This merger will allow redevelopment funds received in one project area to be used in any of the three (3) project areas.  Requirements for the merger of redevelopment project areas for financial purposes are established in Health and Safety Code, Section 33000 et. seq. (Community Redevelopment Law or �CRL�).  The proposed Amendments to financially merge the three (3) project areas will:

• Not alter the boundaries of the project areas;

• Not extend the Agency�s ability in the three (3) project areas to establish additional project area debt;

• Not raise the cap on the amount of tax increment the Agency may receive;

• Not change any time limits; and

• Not reestablish lapsed Agency eminent domain authority.

On February 24, 2004 the Redevelopment Agency Board approved the Preliminary Plan (on the recommendation of the Planning Board) which outlined the basic concept for redevelopment of the merged area.  The Preliminary Plan described the boundaries of the Merged Project Area, and contained a statement on land uses, layout of principal streets, population and building intensities.  The Preliminary Plan also explored how the purpose of redevelopment will be attained; how the proposed redevelopment conforms to the General Plan; and briefly described the impact of the Project Areas on area residents and adjacent neighborhoods.  Finally, the Plan stated that the land uses, building intensities and building standards contained in the Preliminary Plan are in conformance with the General Plan.

On August 31, 2004, the Agency Board adopted Resolution No. R-2115 approving the circulation and public review of the:  1) Draft Preliminary Report for the Burbank Merged and Amended Project Area; 2) Draft Amendment No. 5 to the Golden State Redevelopment Plan (Amended and Restated Redevelopment Plan); 3) Draft Amendment No. 2 to the South San Fernando Redevelopment Plan; 4) Draft Amendment No. 6 to the City Centre Redevelopment Plan; 5) Draft Agency Owner Participation and Business Reentry Preference Rules; and 6) authorized certain actions and transmittals in connection with the proposed merger.

Additionally, the City Council and Agency Board consented to a Joint Public Hearing of the City Council and the Agency Board on the proposed amendments to the Golden State, City Centre, and South San Fernando Redevelopment Plans to financially merge the project areas.  The Joint Public Hearing was scheduled for October 19, 2004.  The Preliminary Report, Draft Amended and Restated Plan for the Golden State Redevelopment Project and text of the amendments to the City Centre and South San Fernando Redevelopment Plans were transmitted to the affected taxing agencies on September 1, 2004, in compliance with the CRL and draft documents have been available for public review since September 27, 2004.

COMMUNITY OUTREACH

The Preliminary Plan was transmitted to the auditor, assessor, tax collector, and all affected taxing agencies for the proposed Merged Project Area.  Subsequent to the transmittal of the Preliminary Plan, staff held two community meetings to inform the public of the proposed project area merger.  The meetings were held in May and June of this year and about 10-15 people attended each meeting.  There were no concerns expressed with the proposed project area merger, however, staff spent several hours answering questions on the different projects and programs being undertaken by the Redevelopment Agency.  In addition, the public was informed that there will be a joint public hearing with the City Council and the Burbank Redevelopment Agency to consider the proposed project area merger before final action is taken on the proposed merger.  Mailed notices of the joint public hearing were sent to all attendees on September 17, 2004.

Redevelopment Law stipulates that the notice of the joint public hearing be published in a newspaper of general circulation not less than once a week for three (3) successive weeks prior to the hearing; that the notice be mailed to all affected taxing agencies via certified mail, return receipt requested; and that the notice be mailed to all affected property owners, businesses, and residents at least 30 days prior to the hearing via first-class mail.  Notice of the joint public hearing was provided by the following:

1. Publication of a public notice in the Burbank Leader on the following dates - September 25, September 29 and October 6, 2004;

2. A mailed notice to all affected taxing agencies was sent via certified mail, return receipt requested on September 2, 2004;

3. A mailed notice to all affected property owners, businesses, and residents on September 17, 2004, more than 30 days prior to the hearing, via first-class mail;

4. Notice to attendees of the two community meetings; and

5. Notice to interested groups and organizations in the City including the Burbank Unified School District, Bob Hope Airport, Chamber of Commerce, the Downtown  Burbank Partnership, Inc. (PBID Board) and several City Boards and Commissions; and

6. Posting of the joint public hearing notice at the City Hall.

Staff received several phone calls from property owners, tenants and community organizations that had received the public notice.  Staff answered questions and informed the public that a binder with the Draft Report to Council, Draft Amended and Restated Golden State Plan, and the Draft Amendments to the South San Fernando and City Centre Redevelopment Plans is available for review at the City Clerk�s office and the Housing and Redevelopment Division offices.  As of the writing of this report, staff has not received any objections to the proposed project area merger from members of the public.

PLANNING BOARD

On September 27, 2004, the Planning Board adopted Resolution No. 2953 determining that the proposed amendments to the Project Areas were in conformity with the General Plan of the City of Burbank and recommended the approval of the three plan amendments � the Amended and Restated Golden State Redevelopment Plan, Amendment No. 2 to the South San Fernando Redevelopment Plan and Amendment No. 6 to the City Centre Redevelopment Plan.  The Golden State Redevelopment Plan Amendment proposes to authorize the merger of the Golden State Redevelopment Project with the South San Fernando and City Centre Redevelopment Project Areas for financial purposes and proposes to update land use language contained in the original 1970 plan text.  The amendment will delete references to land uses in the Golden State Amended and Restated Redevelopment Plan and will instead state that land uses in the Golden State Redevelopment Project Area will be in conformity to the City�s General Plan.

In addition, the Planning Board asked staff to highlight in the staff report to the City Council/Agency Board that the time limits for each of the three redevelopment project areas will not be amended.  These time limits are also included in the Report to Council.  The chart on the following page summarizes the time limits for the Golden State, City Centre and South San Fernando Redevelopment Project areas.

DISCUSSION

Prior to City Council consideration of the ordinance adopting the Redevelopment Plan Amendments, a public hearing must be held to hear all testimony for and against the proposed project area merger.  Section 33458 of the CRL provides that when a city council serves as the governing board of the redevelopment agency, both bodies may hold a joint public hearing to receive testimony on the redevelopment plan amendments.

The joint public hearing is intended to provide a forum for the receipt of public comment on the Redevelopment Plan Amendments.  If no written objections to the Redevelopment Plan Amendments are received prior to or during the October 19, 2004 joint public hearing, the City Council and the Agency Board may consider the adoption and approval of all related actions including the adoption of the Redevelopment Plan Amendments, and the City Council may introduce and conduct the first reading, by title only, of the ordinance adopting the Redevelopment Plan Amendments.

If written objections to the Redevelopment Plan Amendments are received prior to or during the October 19, 2004 joint public hearing, the written objections are to be made a part of the public record, then the public testimony portion of the joint public hearing may be closed.  Section 33364 of the CRL requires that the Redevelopment Plan Amendments may only be adopted by the City Council after consideration of written objections, and the adoption of written findings in response to written objections.  These written findings, if any, would be prepared by staff and would be presented at the City Council at a later meeting date, entered into the record, and adopted by City Council resolution.

The following sections provide a description and summary of the related redevelopment plan amendment documents to be considered by the City Council and Agency Board.

OWNER PARTICIPATION RULES

California Redevelopment Law (CRL) requires that property owners be extended a reasonable opportunity to participate in the redevelopment of project area properties. This opportunity is usually stated in a set of owner participation rules.  The Owner Participation Rules provide guidelines for the participation of property owners, operators of businesses and business tenants located in the Project Area.  More specifically, in the event the Agency wishes to rehabilitate, redevelop, or develop a property in the Project Area or a property owner, business operator or business tenant wishes to participate in the redevelopment process, the Owner Participation Rules outline the procedures to be followed to ensure that both the rights of the participant in the redevelopment process are preserved and the goals stated in the Plan are achieved.  The CRL also requires that the Agency adopt rules to extend reasonable preferences to persons engaged in business in its Project Areas to reenter business within the individual Project Area.

The Owner Participation Rules provide guidelines for the participation of property owners, operators of business, and business tenants in any of the Agency�s four (4) Redevelopment Project Areas; including the West Olive Redevelopment Project Area (for Agency-wide consistency) that is not a part of the proposed merger.

METHOD OF RELOCATION

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 Areas, and for nonprofit local community institutions to be temporarily or permanently displaced from facilities actually used for institutional purposes in the Project Area.  In conformance with Sections 33352(f) and 33411.1 of the CRL, the Redevelopment Agency adopted Resolution No. R-1874 in June 1997 that amended the Agency�s Rules and Regulations for Relocation Assistance, Grievance Procedures and Real Property Acquisition Policies to be in compliance with State Law and corresponding State Guidelines.  These Rules and Regulations shall automatically incorporate any amendments to the State Law or to the State Guidelines that may be made from time to time without any further Agency action.  A copy of the currently applicable version of the State Guidelines and the State Relocation Law are on file with the City Clerk and Agency Secretary. 

Staff has developed a Draft Relocation Grievance Procedure to attempt to resolve disputes between the claimant and the Redevelopment Agency at the lowest possible administrative level while affording the claimant an opportunity to have a full and fair review of his or her case.  In summary, the procedure states any displaced person who is not satisfied with a determination may at his or her election have his or her claim reviewed and considered in accordance with the Draft Relocation Grievance Procedure.  These issues may pertain but are not limited to:  1) eligibility; 2) amount of payment; 3) failure by the Redevelopment Agency to provide comparable, permanent or adequate temporary replacement housing; 4) Agency property management practices; 5) not properly applying appropriate regulations, etc.  The draft procedure states that all relevant evidence should be presented at the lowest level of these proceedings.  In any case where such evidence could have been presented at a lower level and the claimant failed to do so, the Relocation Appeals Board, who for the City of Burbank is the Planning Board, may refer the matter back to the lower level for consideration and determination prior to their considering such evidence.

Amendment No. 5 to the Golden State Redevelopment Plan

Amendment No. 5 proposes to authorize the merger of the Golden State Redevelopment Project with the South San Fernando and City Centre Redevelopment Project Areas for financial purposes and proposes to update several sections in the Plan including language on land uses contained in the original 1970 Golden State Plan text and Amended Plan of 1973, and reformats it as the Draft Amended and Restated Redevelopment Plan (�Amended Plan�) for the Golden State Redevelopment Project.  No other changes have been made.  The Draft Amended Plan is based on the Amended Preliminary Plan approved by the Agency on February 24, 2004, applicable to the three (3) project areas.

The Draft Amended Plan is essentially a legal document (rather than a �plan�) that sets forth the Agency�s goals, powers, duties, and obligations to implement the redevelopment program within the Golden State Redevelopment Project Area. This presents a process and framework within which development plans will be presented, priorities for projects will be established, and solutions will be proposed, and by which tools are provided to the Agency to fashion, develop, and proceed with such plans, projects and solutions as authorized by the CRL.

The Amended Plan provides general guidelines which allow the Agency to:  (1) fund property rehabilitation programs; (2) provide affordable housing opportunities; (3) construct public infrastructure improvements; (4) acquire property for sale or lease within the Project Area; (5) collect tax increment revenue to fund rehabilitation programs, public improvements and other Agency activities; and (6) sell bonds to fund, in whole or in part, rehabilitation programs, public improvements and other Agency activities, all as previously authorized by the original 1970 Golden State Redevelopment Plan, as amended. 

Again, as previously stated, the adoption of the Amended Plan will not:

• Extend the Agency�s ability to incur debt;

• Raise the cap on the amount of tax increment the Agency may receive;

• Increase the time frame in which the Agency may collect tax increment or change any other time limit;

• Reinstate the Agency�s eminent domain authority for this Project Area;

• Reestablish lapsed Agency eminent domain authority; and

• Alter the Project Area boundaries.

The adoption of the Amended Plan, however, will allow the Agency to update the land uses to be in conformity to the City�s General Plan; and allow the Agency to generally update the public improvements project list for the Project Area.

Amendment No. 2 to the South San Fernando Redevelopment Plan

Amendment No. 2 proposes to authorize the merger of the South San Fernando Redevelopment Project with the Golden State and City Centre Redevelopment Project Areas for financial purposes.  Adoption of Amendment No. 2 will not extend the Agency�s ability to incur debt, will not raise the cap on the amount of tax increment the Agency may receive, will not increase the time frame in which the Agency may collect tax increment, and will not alter the Project Area boundaries.  The power of Eminent Domain in the South San Fernando Redevelopment Project Area will remain in effect until 2009.  The proposed amendment will not extend this timeframe.

Amendment No. 6 to the City Centre Redevelopment Plan

Amendment No. 6 proposes to authorize the merger of the City Centre Redevelopment Project with the Golden State and South San Fernando Redevelopment Project Areas for financial purposes.  Adoption of Amendment No. 6 will not extend the Agency�s ability to incur debt, will not raise the cap on the amount of tax increment the Agency may receive, will not increase the time frame in which the Agency may collect tax increment, and will not alter the Project Area boundaries.  The power of Eminent Domain in the City Centre Redevelopment Project Area will remain in effect until 2011.  The proposed amendment will not extend this timeframe.

REPORT TO CITY COUNCIL

Section 33352 of the CRL provides that when the Agency submits the Amended and Restated Redevelopment Plan and Amendments to the City Council for the joint public hearing required by the CRL, the Agency Board must also submit a report on the Plan, entitled the Report to City Council (�Report to Council�).  The purpose of this Report is to provide in one report all information, documentation, and evidence regarding the formation of the Burbank Merged and Amended Project Area (the merging of the Golden State, City Centre and South San Fernando Project Areas).  The Report to Council will assist the City Council in considering the proposed Amendments and making various findings and determinations that are required to adopt the Amended and Restated Plan and Amendments.  This Report has been prepared in accordance with all requirements of Section 33352 of the CRL.

ENVIRONMENTAL REVIEW

The Agency has followed the appropriate environmental review process, pursuant to the California Environmental Quality Act (�CEQA�) with respect to the financial merger of the Golden State, City Centre and South San Fernando Redevelopment Plans, thereby creating the Burbank Merged and Amended Project Area.  A Negative Declaration has been prepared for the financial merger of the Golden State, City Centre and South San Fernando Redevelopment Plans.

SUMMARY

The purpose, scope, and objectives of the Amendments are to merge the project areas for financial reasons.  This merger will allow the Agency the flexibility to direct redevelopment funds to the areas, projects and programs most in need.  The Amendments will not: extend or reinstate the eminent domain authority or any other provisions of the original redevelopment plans; initiate any statutory pass-through payments to affected taxing agencies; extend the Agency�s ability to establish project area debt; raise the cap on the amount of tax increment the Agency may receive; and will not alter the original project area boundaries. 

RECOMMENDATION

Staff recommends that the City Council and Agency Board adopt the resolutions prepared in connection with the proposed project area merger and introduce for first reading an Ordinance of the City Council of the City Of Burbank approving and adopting the related actions for the proposed project area merger.

EXHIBITS

Staff Reports

Map of the Project Areas

Report to Council

Negative Declaration

Amended and Restated Golden State Redevelopment Plan

Amendment No. 2 to the South San Fernando Redevelopment Plan

Amendment No. 6 to the City Centre Redevelopment Plan

Owner Participation Rules

Relocation Grievance Procedure

Preliminary Report

Preliminary Plan

Resolutions

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