PURPOSE

The purpose of this report is to request authorization to circulate the Draft Preliminary Report for the Burbank Merged and Amended Project Area, Draft Amended and Restated Golden State Redevelopment Plan (Amendment No. 5), Draft Text of the Amendment for South San Fernando Redevelopment Plan (Amendment No. 2) and City Centre Redevelopment Plan (Amendment No. 6), and Draft Agency Owner Participation and Business Reentry Preference Rules.  Finally, staff is recommending the City Council and Redevelopment Agency Board consent to setting a joint public hearing on the proposed amendments to the Golden State, City Centre and South San Fernando Redevelopment Plans to financially merge the project areas.

BACKGROUND

The Agency has taken steps to merge the Golden State, City Centre and South San Fernando Redevelopment Plans to alleviate financial constraints within the City Centre and South San Fernando Redevelopment Project Areas.  Section 33485 � 33489 of the Community Redevelopment Law (the �CRL�) requires the Agency to process an amendment to each of the redevelopment plans (�Amendments�).  The proposed Amendments to financially merge the three (3) project areas, collectively to be known as the �Burbank Merged and Amended Project Area� (�Merged Project Area�) 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; and

• Not reestablish lapsed Agency eminent domain authority.

On February 24, 2004 the Redevelopment Agency Board approved the Preliminary Plan that outlined the basic concept for redevelopment of the merged area.  The Preliminary Plan described the boundaries of the merged area, and contained a statement on land uses, layout of principal streets, and 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.

The Preliminary Plan was transmitted to the auditor, assessor, tax collector, and all affected taxing agencies for the proposed Burbank Merged and Amended Redevelopment 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 on May and June of this year and about 15-20 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 Housing and Redevelopment staff.  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.

The next step in the process is for the Redevelopment Agency Board to approve for circulation the Draft Preliminary Report, the Draft amendment text to the Golden State, City Centre and South San Fernando Redevelopment Plan and the Draft Owner Participation Rules.

DISCUSSION

Draft Preliminary Report for the Burbank Merged and Amended Project Area

The Draft Preliminary Report (�Report�) for the Merged Project Area has been prepared in accordance with the prescribed requirements of the California Community Redevelopment Law (�CRL�), and includes the following sections:  (1) the reasons for the selection of the Merged Project Area; (2) a description of the physical, economic or social conditions which remain in the Merged Project Area; (3) a determination as to whether the Merged Project Area is predominantly urbanized; (4) a preliminary assessment of the proposed method of financing the redevelopment of the Merged Project Area, including an assessment of the economic feasibility of the project and the reasons for the provision of tax increment; and (5) a description of specific projects proposed by the Agency and how the projects pursued by the Agency will alleviate physical, economic or social blighting conditions remaining in the Merged Project Area (Exhibit A).

The purpose of the Report is to provide information to taxing agencies regarding why the Agency proposes to merge the three (3) redevelopment project areas (Golden State, City Centre, and South San Fernando Redevelopment Project Areas) for financial purposes, thus, giving the affected taxing agencies the opportunity to review the proposed action, raise questions and make comments.  The Report covers the Merged Project Area [all three (3) redevelopment project areas] and will be transmitted to each affected taxing agency, the State Board of Equalization, and a notice will be sent out the Department of Housing and Community Development, all in accordance with the requirements of the CRL.

Amendments

In order to merge the Golden State, City Centre and South San Fernando Redevelopment Project Areas, each redevelopment plan must be amended.

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 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 (Exhibit B).  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; not raise the cap on the amount of tax increment the Agency may receive; not increase the time frame in which the Agency may collect tax increment; not reinstate the Agency�s eminent domain authority for this Project Area; not alter the Project Area boundaries; 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 (Exhibit C).  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 (Exhibit D).  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.

Owner Participation Rules

The approval of the Draft Rules Governing Participation and Reentry Preferences for Property Owners, Operators of Businesses, and Business Tenants (�Owner Participation Rules�) is a requirement of the CRL which states that, within a reasonable time before the approval of a redevelopment plan or amendment, the Agency shall make available for public inspection rules to implement owner participation in connection with the action (Exhibit E).  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.  These rules are also to be made available for public inspection prior to their adoption.

The Draft Owner Participation Rules provides 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 State Law and corresponding State Guidelines.  These Rules and Regulations shall automatically incorporate any amendments to the State Law or to the State Guidelines which 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 is attached to Exhibit F for reference.

Subsequent to public comment and review by the affected taxing agencies, the Preliminary Report, Draft Redevelopment Plan Amendments, and Draft Rules Governing Participation and Reentry Preferences for Property Owners, Operators of Businesses, and Business Tenants will be included as part of the Agency�s Report to City Council (a document which will be presented at the joint public hearing for the Amendments for the Golden State, City Centre, South San Fernando Redevelopment Project Areas) for final approval.

CONCLUSION

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 program 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. 

Prior to the City Council�s consideration of the ordinance approving the Amendments, a public hearing must be held to hear all testimony for and against the proposed Amendments and related Negative Declaration.  Redevelopment Law provides that when a City Council serves as the governing board of the Agency, both bodies may hold a joint public hearing to receive testimony on a redevelopment plan amendment.  Further, 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.  It is proposed that the joint public hearing on the proposed Amendments and related Negative Declaration be scheduled for Tuesday, October 19, 2004, at 6:30 p.m. at the Council Chambers, Burbank City Hall.

Before the joint public hearing in October, staff will go before the Planning Board in September to present the Draft Negative Declaration and Draft Amendment No. 5 to the Golden State Redevelopment Plan (Amended and Restated Redevelopment Plan).  As stated earlier, 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 (this will provide consistency with both the General Plan as well as the other three Redevelopment Plans).

RECOMMENDATION

Staff recommends that the Redevelopment Agency adopt the resolution 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) authorize certain actions and transmittals in connection with the proposed merger.

Finally, staff recommends that the City Council and Redevelopment Agency approve the resolutions consenting to a Joint Public Hearing of the City Council and the Redevelopment Agency on the proposed amendments to the Golden State, City Centre, and South San Fernando Redevelopment Plans to financially merge the project areas, to be held on October 19, 2004.

EXHIBITS

Exhibit A � Draft Preliminary Report for the Burbank Merged and Amended Project Area

Exhibit B � Draft Amendment No. 5 to the Golden State Redevelopment Plan (Amended and Restated Plan)

Exhibit C � Draft Amendment No. 2 to the South San Fernando Redevelopment Plan

Exhibit D � Draft Amendment No. 6 to the City Centre Redevelopment Plan

Exhibit E � Draft Agency Owner Participation and Business Reentry Preference Rules Exhibit F � State Relocation Law and Guidelines