PURPOSE

The purpose of this report is to present to the City Council and Redevelopment Agency Board 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 review 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

On December 4, 2004, the Redevelopment Agency merged the Golden State, City Centre and South San Fernando Redevelopment Project Areas.  The merger was approved as a financial tool that will allow the �pooling� of tax increment funds for the three merged project areas.  The merger allows more flexibility in using funds in the areas of greatest need.  Each Project Area, however, still maintains its own Redevelopment Plan, therefore, highlights of Redevelopment Agency activities during Fiscal Year 2005-2006 will be identified separately for each of the four Project Areas; including the West Olive Project Area.

CITY CENTRE REDEVELOPMENT PROJECT AREA

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

v     Burbank Village Walk located at 152 South San Fernando, a mixed-use residential and retail project, was completed in December 2005.  The residential component consists of 140-units, with 14 units affordable to moderate-income families.  Unit sizes average 1,500 square feet.  The 14,000 square feet of retail and restaurant space includes the following tenants; Wokcano Japanese Restaurant; NYPD Pizza & Deli; Romancing the Bean Coffee shop; and Jasmine�s Salon & Spa.

v     In March 2006, construction began at The Collection, a mixed-use residential and retail project.  Upon completion, estimated in June 2008, this mixed-use development will provide 40,000 square feet of retail and restaurant space on the ground floor, 118 residential units, and a new parking structure providing 723 parking spaces.  Residential units range from 630 to 2,200 square feet with a mixture of studios, 1-, 2-, and 3- bedrooms and lofts.  Fifteen (12.5%) of the units will be made available at an affordable rate to moderate-income households. 

v     The Agency continued to work with the Downtown Partners (Property-based Business Improvement District-PBID) on revitalization efforts in Downtown Burbank.  Several marketing efforts and special events � such as the Summer Concert Series, Taste of Downtown Burbank, Boo-tiful Downtown Burbank, Fine Arts Festival, and the award winning 12 days of Holiday Cheer � have been held in Downtown Burbank to attract people and revitalize the area.  In addition, a conceptual design for a landscape program has been prepared to improve the appearance of Downtown. 

v     Through the use of the Downtown Tenant Assistance Program, EQ3, a contemporary furniture store located at 308 North San Fernando Boulevard, opened its doors on December 5, 2005.

GOLDEN STATE REDEVELOPMENT PROJECT AREA

The Golden State Project Area continues to evolve from industrial land uses to more office and media related uses.  Projects include:

v     Construction of Phase V began at the Media Studios North project during the 2005-2006 Fiscal Year.  The 180,000 square foot office building, now occupied by Yahoo!, Search Marketing division, was completed in the 2006-2007 Fiscal Year.   A grand opening was held by Yahoo! on November 1, 2006.      

v     The Agency continues to monitor the final phase of the Empire Avenue Transportation, Utility and Landscape project (from Victory Place west to Buena Vista Street).  The project includes landscaped medians, enhanced crosswalks, reconstructed sidewalks, planters, and new street trees.  The next phase of improvements will take place along Empire Ave west of Buena Vista Street to the Metrolink Station and the alternate entrance to the Bob Hope Airport west of Hollywood Way.  This project is estimated to be completed in January 2007.                                                             

SOUTH SAN FERNANDO REDEVELOPMENT PROJECT AREA

Staff coordinated the construction of several residential developments (all with affordable housing components) and public infrastructure improvements within the South San Fernando Redevelopment Project Area that includes:

v     The Burbank Accessible Apartments located at 600 South San Fernando Boulevard was completed in April 2006.  In conjunction with United Cerebral Palsy, this development provides 18 affordable rental units dedicated to individuals with developmental disabilities. In addition to providing units at subsidized rates, United Cerebral Palsy will provide support services needed by the disabled residents of the complex.  The facility features a design concept called, �Universal Design.�  This concept goes beyond ADA requirements and focuses on making all homes accessable. 

v     Construction at the San Fernando Walk residential development began in early July 2005 and is scheduled to be completed by December 2006.  Located at the corner of South San Fernando Boulevard between Elmwood Avenue and Cedar Street, this 33-unit townhome development has 2 bedrooms ranging from 1,300 square feet to 1,400 square feet. Ten of these units will be made available to moderate-income households. 

v     Staff continued to work on finalizing the South San Fernando Streetscape Project bid process and obtained City Council award approval during the 2005-2006 Fiscal Year.  Construction commenced on September 5, 2006 and is expected to take seven months with completion by March 2007.  The improvements will take place along South San Fernando Boulevard from Verdugo Avenue south to the Glendale border.  Streetscape improvements include: landscaped medians, new sidewalks, curbs, gutters, street trees, street furniture, new pedestrian-oriented street lighting and repaving of South San Fernando Boulevard.  The streetscape improvements will set the design standards for the area and will help ensure aesthetic compatibility for current and future projects. 

WEST OLIVE REDEVELOPMENT PROJECT AREA

Within the West Olive Project Area, the Media District Specific Plan has established the framework for development and infrastructure improvements.  The focus of this area has been to assist in implementing transportation improvements, such as the State Route 134 Ramp Project, scheduled for completion by December 2007.

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. 

As mentioned above in the Project Area Highlights section, several affordable housing projects were completed during the reporting year or are currently under construction.  In addition, the Agency continues to work with the Burbank Housing Corporation in   rehabilitating existing housing stock within the Focus Neighborhoods: Golden State; Lake Alameda; Peyton Grismer; Verdugo Lake; and Elmwood.  The following table summarizes, by income category, the number of affordable housing units that will be available to very low-, low- and moderate-income households once all the projects are complete.

ACQUISTION/REHABILITATION PROGRAM

During the 2005-2006 Fiscal Year, the City Council and Agency Board implemented a Housing Acquisition Strategy, which established a goal to purchase a minimum of 20 units within the five focus neighborhoods.  The Agency achieved its 2005-2006 Fiscal Year goal by acquiring 21 units to rehabilitate for the purpose of providing affordable housing for low- to moderate-income households. 

Rehabilitation of the units will begin during the 2006-2007 Fiscal Year.  Below is the status of programs, activities, and efforts within the neighborhoods:

Golden State Focus Neighborhood

v     Rehabilitation of two properties within the Golden State Focus Neighborhood has been completed.  The completion of these properties created 14 affordable rental units available to low-, very low- and moderate-income households.  The 14 units are located at 2323 North Catalina (8 units) and 2321 North Fairview (6 units).    

Lake Alameda Focus Neighborhood

v     The Agency, Burbank Housing Corporation and Habitat for Humanity have been working diligently to launch an affordable home ownership development in the Peyton Grismer Focus Neighborhood.  A site has been identified and the Burbank Housing Corporation is proposed to acquire an additional two properties with financial assistance from the Agency.  During the 2005-2006 Fiscal Year, two of the four properties were acquired. 

v     The Peyton Grismer Housing Rehabilitation development, located at 1801-1819 Grismer Avenue and 1729-1735 Elliott Drive, continues to move toward an anticipated completion date of June 2008.  Once rehabilitation is completed on the entire site, the development will consist of 70 rehabilitated units, and a Family Resource Center which includes the administrative offices of the Burbank Housing Corporation.  The Family Resource Center and administrative offices were completed in April 2006.

Service Enriching Programs and Activities

v     A significant component of the Burbank Housing Corporation�s mission is to develop Family Resource Centers that provide service enriching programs for residents living within the Focus Neighborhoods.  The Golden State and Peyton Grismer Family Centers were completed in January and April 2006, respectively.  Except for the Lake Alameda Focus Neighborhood all the Neighborhoods now have their own Family Resource Center.  The goal of all of the Family Resource Centers is to provide programs and activities that will have an emphasis on building healthier families, and to connect residents to the larger community.

v     In addition to the programming at the Family Resource Centers, staff continues to hold annual events at the Focus Neighborhoods, such as the Verdugo-Lake Street Fair, Peyton-Grismer Back to School Picnic, and Lake-Alameda Fall Fun Fest.  The goal of these events is to engage the residents and provide them with information about community programs and services that are available in the community.

HOUSING PROGRAMS

v     During the reporting year, under the Agency�s Single Family Residential Rehabilitation Program, 21 owner-occupied dwellings were rehabilitated totaling $436,759 in Agency loans.  The families that were assisted fall into the following income categories: one was extremely low-income, ten were very low-income, seven were low-income, and three were moderate-income. 

v     A loan in the amount of $100,066 was executed under the Rental Residential Rehabilitation Loan Program providing rehabilitation to four units.  As part of the program, 25% of the rehabilitated units are to be occupied by low- and moderate-income households.  Therefore, one of the four units has been designated as affordable.

v     In conjunction with the Jewish Family Services, the Agency�s Home Secure Program assisted 112 households by providing $69,840 in grants to install security and safety devices. Of the 112 households; 46 were extremely low-income, 36 were very low-income and 30 were low-income households.

v     In March 2006, the City Council approved an Inclusionary Housing Ordinance.  Staff assisted the Planning Division in the completion of the ordinance.  The ordinance requires that 15% of all newly constructed ownership units must be available for low- or moderate- income households.  For rental projects, five percent of the units must have rents which are affordable to very-low income households and 10% of the units must have rents which are affordable to low-income households.

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

v     Facilitating the opening of Porto�s Bakery, located in the heart of the Magnolia Park District on the corner of Magnolia Boulevard and Hollywood Way.  Porto�s celebrated its grand opening event and a ribbon cutting ceremony with the Mayor on January 23, 2006.  This is the bakery�s second location and it has been extremely successful since its opening, far exceeding all expectations.

v      Monitoring the completion of the Mary Alice O�Connor Family Center.  This center will consist of two components; a childcare facility  that will provide care for up to 88 children ranging from newborn to pre-kindergarten (5 years); and a Family Resource Center that will provide programs and workshops geared toward building healthier families.    The center is scheduled to be open by January 2007.

v     The banner program and street light painting components of the Burbank Boulevard Streetscape project were completed in December 2005.   On May 2, 2006, City Council approved the Design Development Plan for the project.  Staff has been working on the final stage of the project which will include 2.2 miles of improvements along Burbank Boulevard from Clybourn Avenue ending at the Golden State Project Area at Victory Boulevard.  The improvements will include new parkway trees, landscape medians, traffic improvements and an art-in-public places component. 

v     Implementation of economic development activities, marketing, and attentiveness to City-wide issues such as business retention, expansion and attraction.  A new City-wide leasing packet became available during the 2005-2006 Fiscal Year.  The leasing packet is full of exciting information about the City, its various shopping districts, statistical information, and other pertinent Burbank news.   Team Business continues its success in providing workshops, seminars and consulting geared toward the entrepreneur.   In addition, staff continues to work with the Burbank Boulevard Merchants Association in marketing and events.  These efforts have presented the City as one of the five �Most Business Friendly City� by the Los Angeles County Economic Development Corporation (LAEDC).

v     The Agency assisted in the formation of the Magnolia Park Property-Based Business Improvement District (PBID).  The Magnolia Park PBID was approved during the 2006-2007 fiscal year and is working toward Magnolia Park Action Plan to enhance economic development of the commercial area.  The Action Plan goals include; parking improvements, maintenance, tree replacement program, events and business recruitment.

A copy of the Annual Report was available for public review beginning December 11, 2006 at the Burbank Redevelopment Agency's public counter at 141 North Glenoaks Boulevard, and the City Clerk�s office located at 275 E. Olive Avenue.

FISCAL IMPACT

There is no fiscal impact associated with this report or the transmittal of the Agency�s Annual Report.

RECOMMENDATION

Staff recommends that the City Council and Redevelopment Agency Board adopt the proposed resolution accepting the Fiscal Year 2005-06 Annual Report of Financial Transactions of the Burbank Redevelopment Agency, and authorizing staff to file the Annual Report with the State Controller's Office.

EXHIBITS

Exhibit A -      Annual Report for Fiscal Year 2005-2006

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