BURBANK REDEVELOPMENT AGENCY

Tuesday, May 27, 2003

AGENDA

CITY COUNCIL CHAMBER - 275 EAST OLIVE AVENUE

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                                                                      6:30 P.M.

INVOCATION:           Pastor Paul Clairville, Westminster Presbyterian Church.

                                   The Courts have concluded that sectarian prayer as part of City Council meetings is not permitted under the

                                   Constitution.

FLAG SALUTE:

ROLL CALL:

CONSENT CALENDAR:  (Items 1 through 3)

The following items may be enacted by one motion.  There will be no separate discussion on these items unless a Member so requests, in which event the item will be removed from the consent calendar and considered in its normal sequence on the agenda.  A roll call vote is required for the consent calendar.

1.         MINUTES:

            Approval of minutes for the regular meetings of February 11, February 18, March 4 and March 11, 2003.

            Recommendation:

            Approve as submitted.

2.      Consideration of an Affordable Housing Agreement for 3030 Thornton Avenue between the Burbank Redevelopment Agency and the Burbank Housing Corporation:

The purpose of this report is to provide information for the Burbank Redevelopment Agency (Agency) to consider an Affordable Housing Agreement (AHA) with the Burbank Housing Corporation (BHC) that will fund the BHC�s acquisition and rehabilitation of 3030 Thornton Avenue (Project) in the Golden State Beautification Area.

On April 28, 2003, the BHC submitted a proposal requesting the Agency finance the acquisition and rehabilitation of the Project, the latest in a series of affordable housing projects within focus neighborhoods undertaken by the BHC with Agency assistance. The BHC in partnership with the Agency is acquiring, rehabilitating, and providing strong property management to deteriorated properties in order to stabilize and ultimately revitalize these neighborhoods.

Located on Thornton Avenue between Fairview Street and Ontario Street, the Project is within an R-4 medium density residential neighborhood.  The Project is comprised of an undersized lot (2,860 square foot) with a 575 square foot one-bedroom single-family dwelling built in 1928 and in need of substantial repairs.

The Project is contiguous to another BHC project at 3000-3006 Thornton Avenue.  The BHC proposes to consolidate the two lots at 3000-3006 and 3030 Thornton Avenue and enlarge the Project's existing unit into a three bedroom/two bath 945 square foot rental unit that will have an exterior treatment and site work compatible with work earlier completed at 3000-3006 Thornton Avenue.

The Agency will provide BHC with two loans: a $57,200 thirty-year, three percent interest rate loan repaid annually and a $232,800 loan deferred and forgiven if BHC complies with the income and affordability covenants over the 55-year loan term.

Recommendation:

Adoption of proposed resolution entitled:

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING AN AFFORDABLE HOUSING AGREEMENT BETWEEN THE AGENCY AND THE BURBANK HOUSING CORPORATION (3030 THORNTON AVENUE).

3.       Amended Replacement Plan for the Peyton-Grismer Revitalization Project:

The purpose of this memorandum is to convey for the Burbank Redevelopment Agency�s (Agency) consideration the Amended Replacement Housing Plan or Amended Plan for the Peyton�Grismer Revitalization Project (Project).

California Redevelopment Law under Section 33413.5 (Healthy and Safety Code, Section 33000 et seq.) stipulates that a redevelopment agency is to adopt a replacement housing plan at least 30 days in advance of entering into an agreement that would lead to the destruction or removal of residential units from the low and moderate income housing market.  A replacement plan identifies the effects a redevelopment project will have on the local jurisdiction�s low and moderate-income housing supply and measures an agency will undertake to provide comparable replacement housing.

Redevelopment Law [Section 33413(a)] also mandates that, whenever housing units for low or moderate-income households are destroyed, an agency is to replace the removed units with comparable housing units within four years of demolition.  

On November 19, 2002, the Agency adopted the Replacement Plan for the Peyton-Grismer Revitalization Project (Replacement Plan) affecting properties at 1801-1815 and 1819 Grismer Avenue in anticipation that there would be loss of low and moderate-income units.  The Agency retained Pacific Relocation Consultants (PRC) to prepare the initial Replacement Plan to describe the Project, the location of very low, low and moderate-income units to be removed, the general location of replacement units, the financing of the Project and a schedule for the development of replacement housing and the period of affordability. 

Recently, PRC was asked to prepare an amendment (Amended Plan) for the purpose of incorporating an adjoining site comprised of 12 units at 1729-1735 Elliott Drive (Elliot Site).  The Burbank Housing Authority has initiated condemnation action against the owner of the Elliott Site and the Agency has prepared an Amended Plan as a prerequisite step before any demolition can occur subsequent to the Authority taking site control.

The Project entails the acquisition and rehabilitation of certain blighted buildings located in an R-4 medium density residential neighborhood within the Peyton-Grismer focus area. The original Plan included 87 residential units at 1801-1815 and 1819 Grismer Avenue.  The Elliott Site, which triggered the Plan Amendment, is comprised of 10 two-bedroom and two three-bedroom units and includes five residential structures contained on a 19,100 square foot site. 

The Burbank Housing Authority and Agency acquired 1819 Grismer Avenue (3 units), reached a stipulated judgment with the owner of 1801-1815 Grismer Avenue (84 units) and are pursuing acquisition of the Elliott Site (12 units), using Low Moderate-Income Housing funds.  Upon acquisition, these properties will be sold to the local nonprofit housing developer, the Burbank Housing Corporation (BHC), via a Disposition and Development Agreement (DDA) as a mixed income, affordable housing project.

Recommendation:

Adoption of proposed resolution entitled:

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING AN AMENDED REPLACEMENT HOUSING PLAN IN CONJUNCTION WITH THE PROPOSED PEYTON-GRISMER STABILIzATION PROJECT.

END OF CONSENT CALENDAR

RECESS to conclude the City Council meeting.

ADJOURNMENT.