PURPOSE

The purpose of this report is to present to the City Council the Annual Report of Financial Transactions of the Burbank Redevelopment Agency (Annual Report) and to request authorization to submit the Annual Report to the State Controller.

BACKGROUND

As required by California Redevelopment Law (Health and Safety Code Section 33080), a redevelopment agency must annually prepare for its legislative body's approval an Annual Report and then submit a copy to the State Controller�s Office within six months of the end of the agency's fiscal year.  The Annual Report contains the following essential elements:

• Fiscal Statement of Previous Year's Achievements

The Annual Report includes information about the amount of tax increment generated by each project area, the amount of indebtedness and other fiscal information.

• Independent Financial Audit Report

The Annual Report will have attached the Comprehensive Annual Financial Report that includes the auditor's opinion of the Agency's operation, conformance with laws and administrative standards of the Agency, as well as the Agency's financial position.

• Activities Affecting Housing and Displacement 

The Annual Report identifies agency activities during the reporting period that affect housing affordable to elderly and non-elderly households, who are very low, lower or moderate-income.  Information about these target populations includes, for example, the number of units removed from the market place (replacement housing requirements), the number of new or substantially rehabilitated units produced (inclusionary housing requirements), the number of agency-assisted units constructed, rehabilitated, acquired or subsidized during the prior year, a statement that the Agency accumulated no excess surplus, an estimate of the affordable housing projects to be developed, target populations to be displaced over the next two program years, and Low and Moderate-Income Housing Fund balances.

PROJECT AREA HIGHLIGHTS

During the last calendar year, the Redevelopment Agency merged the Golden State, City Centre and South San Fernando Redevelopment Project Areas.  The merger became effective on December 4, 2004.  The process for a project area merger is the plan amendment process pursuant to Redevelopment State Law.  The merger is a financial tool that will allow the �pooling� of tax increment funds for the three merged areas.  This will allow the Agency more flexibility in using funds in areas of greatest need.  Each Project Area, however, still maintains its own Redevelopment Plan, therefore, highlights of Redevelopment Agency activities during Fiscal Year 2003-2004 will still be identified separately for each of the four Project Areas.

CITY CENTRE REDEVELOPMENT PROJECT AREA

In the City Centre Redevelopment Project Area, several projects and programs were initiated and in some cases completed. 

• Leasing activity for the retail portion of the Burbank Entertainment Village Project (AMC) continued.  Phase I includes a 16-screen, a 4,200 seat, state-of-the-art-movie-theater with stadium seating and approximately 35,000 square feet in stores and restaurants. 

• The development of AMC Phase II was successfully negotiated and approved on November 23, 2004.  It is a mixed-use project that includes 118 for-sale condominium units over approximately 50,000 square feet of first floor retail/restaurant uses.

• The redevelopment of Opportunity Site No. 2 (the Old Police Block site) is underway.  Two projects are being simultaneously constructed on the site.  The first project is the Burbank Civic Plaza, a 4-story, 83,000 sq. ft. office and ground floor retail development.  The project is scheduled to be complete in April 2005.  The other portion of the project is the Burbank Village Walk project - a 140-unit, for-sale, luxury residential development with approximately 14,000 sq. ft. of commercial space.  The commercial space will include a destination restaurant, and retail uses.  The retail portion of the project is scheduled to be complete in the Spring of 2005 and the residential portion in late 2005/early 2006.

• Staff continued to work with Crown Development, the mall owner, on several leasing and renovation ideas in order to enhance the performance of the mall.  As part of the renovation effort, the mall was recently renamed the Burbank Town Center, the building fa�ade along Magnolia Boulevard was changed and several new tenants have been secured such as P.F. Chang�s and Pomodoro restaurants.  In addition, Bed Bath and Beyond will begin tenant improvement work on the ground floor early next year.  The store is expected to be complete in June of 2005.

• The Agency continued to work with the new Property-based Business Improvement District (PBID) on the revitalization efforts in Downtown Burbank.  Several marketing efforts and special events � such as Swing Band Nights, Beach Party Nights, Taste of Downtown Burbank and the Fine Arts Festival � have been held in downtown to attract people and revitalize the area. 

• A wayfinding signage program has been developed that will help guide visitors off the Interstate 5 Freeway, help shoppers navigate to the major destinations in Downtown, and direct traffic toward the public parking structures.  The signs are expected to be ready for installation in January 2005.

GOLDEN STATE REDEVELOPMENT PROJECT AREA

In the Golden State Redevelopment Project Area staff continues to monitor and coordinate projects and programs including:

• Reviewing and monitoring the recycling of the old Costco site to a Vallarta Supermarket and shopping center;

• Monitoring landscaping and public infrastructure improvements to the Empire Avenue corridor and initiated a signage program to complement the corridor improvements;

• Monitoring construction activity for Phase II of the Howard Business Park;

• Continued implementation of the Media Studios North project to complete the final 180,000 sq. ft. of the office development, and the off-site improvements pursuant to the DDA; and

• Continued working with the broker for the lease-up of the Airport Plaza Office building.

SOUTH SAN FERNANDO REDEVELOPMENT PROJECT AREA

Staff continues to coordinate several projects and programs in the South San Fernando Redevelopment Project Area including:

• Monitoring and working toward the recycling of the ITT site, an 11-acre, contaminated, former aerospace facility with a Home Depot store;

• Working towards a utility undergrounding plan;

• Continued coordination with the City toward site assembly and the development of Robert Ovrom Park; and

• Continued with the design of the South San Fernando Boulevard Streetscape Project.

WEST OLIVE REDEVELOPMENT PROJECT AREA

In the West Olive Redevelopment Project Area staff continues to monitor and coordinate projects and programs including:

• Monitoring the development of the South Triangle project.  During the reporting period, additional tenants signed leases for Phase I of the Pinnacle project that was completed last year.  Phase II is under construction; 

• Monitoring the development of the North Triangle site; and

• Coordinated the funding for the SR 134 Freeway and Substation project.

HOUSING ACTIVITIES

During the reporting year, several housing projects received final approval, commenced construction, and in some cases were completed.  In addition, staff continues to implement several housing programs that continue to increase the number of housing units available to very low, low and moderate-income households.  The following is a summary of the Agency�s housing activity.

• Continued extending financial assistance to the Burbank Housing Corporation (BHC) to acquire and rehabilitate rental housing projects in the Elmwood, Lake-Verdugo, Golden State and Peyton-Grismer focus neighborhoods.  BHC now owns 17 properties and 201 units.  In addition, they operate activity centers for Elmwood and the Lake-Verdugo neighborhoods, and have received approvals for two more activity centers for the Golden State and Peyton-Grimser neighborhoods to enhance services to tenants.

• During the past fiscal year under the Agency�s Residential Rehabilitation Program, ten owner-occupied single-family dwellings were rehabilitated totaling $231,000 and eight renter units were improved with $81,607 in Agency loans.  A significant number of the assisted single-family homeowners met one or more special needs categories: eight were elderly households and six of the eight units were owned by a female head of household.  Of the eight assisted rental units, two had a female head of household.

The following table summarizes by income the assisted units by owner and renter household or tenure.

�          Only 25% of the 8 units assisted required to be restricted. 

• Under the Home Secure Program (grants for security and safety devices), the Agency assisted 152 households, 105 very low-income and 47 low-income households, of whom 134 were senior heads of household.

• The Burbank Senior Artists Colony broke ground in July 2003.  The 141-unit senior housing project is under construction, and is scheduled to be complete in January 2005.

• The Independent Living Facility to be developed by United Cerebral Palsy at 600 South San Fernando Blvd. received final project approvals.  The project is an 18-unit independent living facility for very low-income disabled persons.  UCP broke ground in November 2004.  The project is expected to be complete late next year.

• During the reporting period, the Cottages residential project was completed and 10 of the 20 units were made available to moderate-income households.  In addition, the childcare component opened in March 2004.  The Burbank Housing Corporation is the owner of the center and administers its operation.  Since its opening in March 2004, the center is at 82% enrollment rate. 

• The Agency approved a residential project with The Olson Company for the development of 33 for-sale units at the former Lance site to be known as San Fernando Walk.  Ten of the 33 units will be made available to moderate-income households.  The project is expected to break ground next year and be completed in Fall 2006. 

• During the reporting period, the Agency worked on the Peyton-Grismer Housing Rehabilitation project. The Agency acquired and cleared three rental units at 1819 Grismer Avenue as the site for the future Peyton-Grismer Activity Center and has leased the property at 1801-1819 Grismer Avenue and 12 units at 1729-1735 Elliott Drive to the Burbank Housing Corporation.  (�BHC�) will oversee the transformation of a substandard 96-unit area into a substantially rehabilitated 70-unit, mixed-income residential project with a portion of the units affordable to very low-income and lower income households.  BHC is also to construct and operate the Peyton-Grismer Activity Center for project and neighborhood residents.  The activity center is expected to begin construction by the end of the year and is expected to be complete early next summer.

Finally, the Agency has been working on several other projects and programs including:

• Implementing the objectives and programs of the Blue Ribbon Task Force on Affordable Housing;

• Working on the design phase for the re-use of the Old Buena Vista Library site proposed as a Childcare facility and Family Resource Center;

• Working on economic development activities such as: city-wide marketing efforts; the Mayor�s Business Outreach program; the development of a business assistance center; continuing further parking improvements, marketing efforts, programs and special events for Magnolia Park; working with the Burbank Boulevard Merchants Association to work on issues such as traffic, safety, parking and �district identity�;  and

• During the last reporting period a new position has been added � a Community Outreach Coordinator � to help connect the residents of our focus neighborhoods to the services and programs offered in the community.

A copy of the Annual Report was available for review beginning December 6, 2004 at the Burbank Redevelopment Agency's public counter at 141 North Glenoaks Boulevard, and the City Clerk�s office located at 275 E. Olive Ave.

FISCAL IMPACT

There is no fiscal impact associated with this report.

RECOMMENDATION

Staff recommends that the City Council adopt the proposed resolution accepting the Fiscal Year 2003-04 Annual Report of Financial Transactions of the Burbank Redevelopment Agency and authorize staff to file the Annual Report with the State Controller's Office.

EXHIBITS

Exhibit A         Annual Report for Fiscal Year 2003-2004

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