PURPOSE

The purpose of this report is to provide information on the proposed merger of the Golden State, City Centre and South San Fernando Redevelopment Plans, and to request approval of the Preliminary Plan for said proposed merger from the Burbank Redevelopment Agency Board (�Agency�).  The proposed merged redevelopment project area will be known as the �Burbank Merged and Amended Redevelopment Project.�

BACKGROUND

In July of 2003, staff held a Redevelopment Study Session.  At that time staff suggested to the Agency Board the possible merger of the Golden State, City Centre and South San Fernando Redevelopment Project Areas as a financial tool to allow flexibility in the use of funds within the merged area.  The Agency Board authorized staff to proceed with the proposed merger.

The merging of one or more redevelopment project areas requires a redevelopment plan amendment; a prescribed legal process governed by California Community Redevelopment Law (Health and Safety Code, Section 33000 et. seq.) (�Redevelopment Law�).  Part of the prescribed process calls for the Agency Board to approve the Preliminary Plan for the proposed merged area.  This plan was formulated and subsequently transmitted by the Planning Board, on February 9, 2004.  The Preliminary Plan is a brief, general document that outlines the basic concept for redevelopment within the merged project areas.  The Preliminary Plan (�Plan�) describes the boundaries of the merged project areas, and contains a general statement of the land uses, the layout of the principal streets, population densities and building intensities and standards within the merged redevelopment project areas.  If approved by the Agency Board, the Preliminary Plan will then be transmitted to the affected taxing agencies, including the County auditor, assessor, and tax collector, for their information and comment as a part of the redevelopment plan amendment process.

During the next several months, staff will be submitting various documents to the Agency Board for its review and approval.  A series of community meetings will also be held to solicit public input.  Ultimately, at the end of the process, the Agency Board and the City Council will then meet at a joint public hearing to consider the merger of the Plans and the related environmental documentation, which is one of the last steps in the process.

DISCUSSION

The City/Agency 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) (Exhibit A).  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 balance this situation out, and to give the Agency enhanced ability to use tax increment funds in the areas of greatest need, it is proposed that these three Project Areas be merged with one another.  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.  A more definitive and detailed list of projects will be developed during this process; however, 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 previously described, �Redevelopment Law� requires that the redevelopment plan amendment process be followed in order to complete a project area merger.  The first step of the redevelopment plan amendment process is to prepare a Preliminary Plan in accordance with Section 33354.6 and 33322 of Redevelopment Law.  To emphasize again, the selection of the boundaries and the development of a Preliminary Plan in accordance with the requirements of Redevelopment Law is a cooperative effort between the Planning Board and the Redevelopment Agency.  Adoption and transmittal of the Preliminary Plan by the Planning Board was the first step in the project area merger and plan amendment process. 

This Plan will not replace the Preliminary Plans that were prepared and adopted (and subsequently amended) for the creation of each one of these Redevelopment Project Areas; rather, this Plan will serve in concert with each of the Preliminary Plans.  The preparation of the �new� Preliminary Plan for the proposed merger of the Redevelopment Project Areas is to satisfy the requirements of Redevelopment Law, only.

To summarize, the Preliminary Plan outlines the basic concept for redevelopment of the merged area.  The Preliminary Plan describes the boundaries of the merged area, and contains a statement on land uses, layout of principal streets, and population and building intensities.  The Preliminary Plan also explores how the purpose of redevelopment will be attained; how the proposed redevelopment conforms to the General Plan; and briefly describes the impact of the Project Areas on area residents and adjacent neighborhoods.  Finally, the Plan states that the land uses, building intensities and building standards contained in the Preliminary Plan are in conformance with the General Plan.

The boundary of the new Preliminary Plan encompasses the Golden State, City Centre and South San Fernando Redevelopment Project Areas.  No new territory will be added or deleted from the Project Areas and this action � the formulation and approval of the Preliminary Plan - will not trigger any negotiations with taxing agencies or require any CEQA environmental review or documentation.  Environmental review, however, will be completed for the adoption of the amended redevelopment plan(s).  In addition, the amendment to each plan will not change any of the time limits for any of the three Project Areas nor change the eminent domain powers that currently exist.  The following is a summary of the time limits for each of the three Project Areas and other important dates and information, to remain unchanged:

In this step of the process, the Agency Board is to:  1) receive the Preliminary Plan as formulated and submitted by the Planning Board; 2) if so desired, approve the Preliminary Plan; and 3) direct staff to transmit the Plan to the auditor, assessor, tax collector, and all affected taxing agencies as required by Section 33327 of Redevelopment Law.  With the approval of the Preliminary Plan, staff will then prepare an amendment to each of the redevelopment plans. 

The following is a tentative schedule for the plan amendment process as required for the proposed project area merger:

Draft Preliminary Plan considered by the Planning Board                                   COMPLETED

Transmit Draft Preliminary Plan to Agency Board                                                IN PROCESS

First Community Meeting                                                                                         MAY 2004

Second Community Meeting[1]                                                                                  MAY 2004

Agency Board to consider Preliminary Report, Draft

            Amendment Text, Draft Owner Participation Rules, Draft

            Method of Relocation and Draft Negative Declaration                             JUNE 2004

Planning Board to consider Draft Amendment Text and Draft

            Negative Declaration                                                                                    JUNE 2004

City Council and Agency Board to set Public Hearing date                                JUNE 2004

Joint Public Hearing of the City Council and Agency Board

            (First Reading of Ordinances)                                                                     SEPT. 2004

If no written objections are submitted at the joint public hearing, and the City Council/Agency Board approve the proposed amendments, project area merger and Negative Declaration, the second reading of the ordinances will be scheduled.  The ordinances will be effective 30 days after the second reading.  If written objections are presented at the joint public hearing, staff will prepare written responses to the objections, and schedule the City Council meeting for the review and consideration of the written responses to the written objections.  If the City Council approves the written responses, the second reading of the ordinances will follow.

RECOMMENDATION

Staff recommends that the Redevelopment Agency Board adopt the proposed resolution approving the Preliminary Plan and authorizing staff to transmit the Plan to the auditor, assessor, tax collector, and all affected taxing agencies for the proposed Burbank Merged and Amended Redevelopment Project Area.

EXHIBITS

Exhibit A � Map of the Burbank Redevelopment Project Areas

Exhibit B � Draft Preliminary Plan