CITY CENTER REDEVELOPMENT PROJECT PROPOSED FIVE-YEAR IMPLEMENTATION PLAN FY2002 FY2007 [Health & Safety Code Section 33490]

Transcription

1 CITY CENTER REDEVELOPMENT PROJECT PROPOSED FIVE-YEAR IMPLEMENTATION PLAN FY2002 FY2007 [Health & Safety Code Section 33490] ADOPTED May 15, 2002 A. INTRODUCTION AND BACKGROUND The City Council and the Agency Board of Commissioners established the City Center Redevelopment Project on May 8, The 879 acre project is generally bounded by Second and Third Streets on the north; San Pedro Street, Stanford Avenue and Griffith Avenue to the east; 1-10 Freeway to the south; and Figueroa Street and the I-110 Freeway to the west. The project area incorporates three major sub-areas within the downtown Los Angeles area. These include: the Historic Downtown Sub-area; South Park Sub-area; and the City Markets Sub-area. The project area is comprised of portions of the former Central Business District (CBD) Redevelopment Project area, which was amended on May 1, 2002 allowing these areas to become part of the City Center Project Area. A number of the objectives listed here are objectives that were initiated under the CBD Project and have been carried over into City Center. Section (c) of the Community Redevelopment Law of the State of California ("CRL") requires that every redevelopment plan submitted by the Agency to the City Council be accompanied by an implementation plan which describes the specific goals and objectives of the Agency for the proposed Project Area, the specific projects proposed by the Agency, including a program of actions and expenditures proposed to be made within the first five years of the plan, and a description of how these projects will improve or alleviate the physical and economic conditions causing blight found within the Project Area ("Implementation Plan") A five-year work program was established by the Project Area Committee to address the wide variety of blight in the project area. Several new objectives are being initiated in FY03 to address issues of importance. A number of the work objectives listed here were initiated in the CBD Redevelopment Project and are being funded with a Finding of Benefit for that Project Area. The City Center Redevelopment Project area is not expected to generate tax increment resources until FY The recently adopted project is comprised of portions of the former CBD Redevelopment Project, which was adopted in 1975, and adjacent areas, which were not part of the original CBD Project area. In 1977 following a legal challenge, the Agency entered into a stipulated judgment, which capped the tax increment that could be received from the CBD Project. While the CBD Plan does not expire until 2010, the tax increment cap has been reached and, as a result, the Agency s ability to address remaining blight in the CBD has been severely limited. The Agency Five-Year Implementation Plan (FY ) Page 1

2 explored various avenues to seek relief from the tax increment cap, and ultimately determined that the most effective approach was to adopt two new redevelopment project areas, the City Center Redevelopment Project and the proposed Central Industrial Redevelopment Project, scheduled for adoption in Fall Although progress has been made toward eliminating blight in the former CBD Project Area, recent surveys indicate significant blight remained in the areas incorporated into the new redevelopment project areas. Numerous old and obsolete structures, a lack of sites for business expansion and major new development, substandard and overcrowded housing, a shortage of affordable housing, small and oddly shaped parcels, complex and sometimes absent ownership entities that complicate or stifle revitalization and redevelopment of the area, and other conditions of blight prevail. CONDITIONS AT TIME OF ADOPTION Historic Downtown Sub-area The Historic Downtown Sub-area includes major portions of Main Street, Spring Street and Broadway. The portions of these streets between First Street and Eighth Street were developed as the City s original downtown. Many of the buildings along these streets were constructed between 1900 and 1930, when Spring Street housed many of the banking and financial institutions in Los Angeles and Broadway was a main shopping destination. However, by the 1970 s, retail activity had declined in the area, as major retailers had followed area residents to the suburbs. Similarly, the financial core of the City began to migrate to the west with the development of modern high-rise office buildings. Business activity has also become more dispersed throughout the greater Los Angeles Area. As a result, business activity in the area declined and vacancies soared, especially in the older office buildings, including ground floor space previously devoted to banking or to retail uses. Due to the high cost of retrofitting the buildings to comply with modern building standards, along with a low demand for the space, many of the upper floors of buildings stood (and continue to stand) vacant for many years. Broadway evolved into a major Latino discount, shopping district, with a relatively low vacancy rate for the ground floor retail space along the street. However, Broadway has been negatively impacted by the problems associated with crime and the presence of a large of homeless population. As a result, many former patrons are now shopping in suburban communities with strong Latino shopping districts such as Huntington Park, Whittier and Montebello. South Park Sub-area The South Park Sub-area has a mix of multi-family residential, commercial, industrial and semi-public uses. Major landmark buildings and uses include the California Hospital Medical Center, and the multi-story Transamerica office complex. There are also a large number of low-density commercial and industrial properties and parking lots. The South Park area is generally considered an inferior location in Downtown and less desirable locations for businesses associated with the Fashion District located to the east. As a result, the area exhibits high building vacancies and low levels of business activity relative Five-Year Implementation Plan (FY ) Page 2

3 to other parts of Downtown. Property sales prices in the area are also generally lower than those for the City as a whole. The South Park Sub-area is planned for high-density market rate and affordable housing to serve the downtown workforce. Neighborhood serving amenities are planned including parks, childcare facilities and educational facilities. The South Park Sub-area is also the location of a proposed sports and entertainment district to be developed in connection with Staples Center. This contemplated development is to be located on 23 acres of property acquired by the Agency, which is currently being used for surface parking to serve Staples Center. The 23-acre master planned development is a mixed-use project that, subject to financing, will include a major convention hotel, ballroom and banquet facilities and meeting rooms; affordable and market rate housing; a major cultural facility; a live performance theater; and retail, entertainment, restaurant and office uses. Independent studies have demonstrated that the master planned development is not feasible without financial assistance from the Agency. The critical components of the project requiring public assistance include the convention hotel, the cultural facility and the performance theater. The City Markets Sub-area At the turn of the century, the area east of what later would become the Historic Downtown Sub-area included a mix of residential, commercial and industrial uses. A portion of this area gradually became a major industrial and manufacturing core, with convenient access to the major rail lines. The area also included a large number of residential hotels, which were ideal for the large number of single and transient workers employed by the railroads and other businesses. Over time, as the demand for industrial space grew, large manufacturers moved out of the area; smaller businesses that were less dependent upon railroad access moved to adjacent and competing cities. The City Markets Sub-area now houses a manufacturing and warehouse sector serving the garment, toy and flower industries. These businesses suffer from an adequate circulation system that can accommodate trucks; lack of available land for expansion; insufficient parking for employees and customers; and a negative image from the large transient and homeless population. B. SPECIFIC GOALS AND OBJECTIVES OF THE AGENCY FOR THE PROJECT AREA The goals and objectives for the City Center Redevelopment Project are set forth in the Redevelopment Plan as follows: 1. To assist in the development of Downtown as a major center in the Los Angeles metropolitan region, within the context of the Los Angeles General Plan as envisioned by the General Plan Framework, Concept Plan, Citywide Plan portions and the Central City Community Plan. Five-Year Implementation Plan (FY ) Page 3

4 2. To create a climate, which will prepare and allow the Central City to accept that share of regional growth and development which is appropriate, and which is economically and functionally attracted to it. 3. To organize growth and development, reinforce viable functions, and facilitate the redevelopment, revitalization or rehabilitation of deteriorated or underutilized areas. 4. To create a modern, efficient and balanced urban environment for people, including a full range of around-the-clock activities and uses such as recreation and housing. 5. To create a symbol of pride and identity which gives Central City a strong image as a major center of the Los Angeles region. 6. To facilitate the development of an integrated transportation system which will allow for efficient movement of people and goods into, through and out of the Central City. 7. To achieve excellence in design, based on how the Central City is to be used by people, giving emphasis to parks, green spaces, street trees, and places designed for walking and sitting. 8. To preserve key landmarks, which highlight the history and unique character of the City, blending old and new in an aesthetic realization of change or growth with distinction, and facilitating the adaptive reuse of structures of architectural, historic or cultural merit. 9. To provide a full range of employment opportunities for persons of all income levels. 10. To provide high and medium density housing close to employment and available to all ethnic, social and economic groups, and to make an appropriate share of the City s low- and moderate-income housing available to residents of the area. 11. To provide the public services and facilities necessary to the solution of the various social, medical and economic problems of Central City residents, especially the Skid Row population 12. To establish an atmosphere of cooperation among business, special interest groups and public agencies in the implementation of this Plan. 13. To support an encourage the development of social services with special consideration given to participating in projects involving community-based organizations that serve runaways, the homeless Five-Year Implementation Plan (FY ) Page 4

5 and senior citizens, and provide child care services and other social services. C. SPECIFIC PROJECTS AND PROGRAMS PROPOSED BY THE AGENCY, INCLUDING A PROGRAM OF ACTIONS AND EXPENDITURES PROPOSED TO BE MADE WITHIN THE FIRST FIVE YEARS OF THE REDEVELOMENT PLAN The Agency has put forth a plan of redevelopment that includes programs and specific projects as examples of expenditures currently anticipated by the community and the Agency to meet the articulated goals and objectives of the Redevelopment Plan. The specific details of the Implementation Plan are subject to update and/or change as the Redevelopment Plan is implemented. All of the projects are subject to available financing and other resources, and adjustments may be required in response to changing market conditions. The Agency's estimated costs to implement these programs derived from projected tax increment financing total $111,205,400, which includes the issuance of tax allocation bonds in FY05 and FY06. In addition, the Housing Development Program reflects the Agency's intent to carry out the Mayor's Directive to voluntarily set aside not less than 25% of the gross lax increment for low- and moderate-income housing rather than just the 20% mandated by State law. 1. HOUSING PRODUCTION A. Projects and Expenditures The housing production program for the City Center Redevelopment Project will provide housing for low- and moderate-income households as well as additional market rate housing. Several projects initiated under the FY Five-Year Implementation Plan for the CBD Redevelopment Plan that are now located in the City Center Redevelopment Project will be completed and several new projects will be initiated. The primary focus of this housing effort will be in South Park Sub-area and the Historic Downtown Sub-area. In the Historic Downtown Sub-area, the Agency will continue to provide technical assistance to the owners of historic buildings with adaptive reuse plans for live/work or artist housing. Funding for this effort will be provided under CT2080, Historic Core Revitalization. Under this work objective, the Agency will assist the owners of several buildings, such as the Rowan, Security, Bartlett, Arcade, Irvine, Byrne, in converting the buildings to loft-style housing with the ground floors converted to neighborhood-serving retails uses. The success of these building conversions will depend on the Agency assisting with the provision of adequate off-street parking for the residents. Total Agency funding for this work objective during the term of the Five-Year Plan is $4,440,200. Five-Year Implementation Plan (FY ) Page 5

6 In the South Park Sub-area, the Agency will continue to assist with the development of the Grand Avenue Apartments (CT1020), a 62-unit affordable family housing project with childcare. The project will be located at the northeast corner of Venice Boulevard and Grand Avenue. The project will be funded from multiple sources including tax credits and the City of Industry Affordable Housing Project; the Agency will provide a total of $4.3 million in gap financing. A second phase of development is anticipated requiring additional Agency financing for site assemblage and construction financing for a total expenditure, including staffing, for the next five years in the amount of $8,046,800. The development of new housing developments will be pursued and is funded under Downtown Housing Opportunities (CT1090). The Agency has historically acquired property for the development of housing with related neighborhood services and amenities such as childcare. In keeping a goal of the City Center Redevelopment Plan to create a balanced urban environment, the continued acquisition of sites for the construction of housing projects will be pursued as well as providing financing assistance to developers that have secured sites for housing. The Agency anticipates providing a full range of housing including mixed-income market rate housing (20% affordable; 80% market rate), affordable family, special needs and senior housing, and adaptive reuse of vacant or underutilized building into live/work or loft-style housing. Total funding for this effort for the next five years is $28,981,300. Other work objectives with planned housing components include 11 th Street Lofts (CT2190), Mixed Use Opportunities (CT2490) and South Park Elementary School (CT3000), with a combined total funding for the next five years in the amount of $18,828,700, which includes funding for the housing planned to be built in conjunction with the school. B. Elimination of Blight A housing construction and rehabilitation program will help to eliminate blight by providing much needed housing for low- and moderate-income households, much of it by furthering the adaptive reuse of vacant, underutilized and blighted buildings. By providing a full range of housing types, the Agency furthers a number of revitalization goals for the Redevelopment Project including the provision of housing for downtown employees, increasing the support for retail and entertainment uses, and creating a vibrant, 24-hour downtown community. The production of a full range of housing for all income groups is a priority of the Redevelopment Plan. During the first five years of the Redevelopment Plan, it is anticipated that Agency activities will include providing high and medium density housing Five-Year Implementation Plan (FY ) Page 6

7 close to centers of employment and available to all ethnic, social and economic groups, and making an appropriate share of the City's low- and moderate-income housing available to residents of the area. 2. ECONOMIC DEVELOPMENT A. Projects and Expenditures Commercial development projects approved or initiated under the CBD Redevelopment Project and now located in the City Center Redevelopment Project will be continued in Five-Year Plan for City Center. These projects include Broadway Spring Center (CT2030) and Grand Central Square (CT2070) with total funding provide over the next five years in the amount of $203,500 and $100,600 respectively. Agency activities will include monitoring compliance with executed agreements, funding the Agency's annual parking obligation and monitoring the tax-exempt bonds issued for Grand Central Square. The Historic Core Entertainment District (CT2020), a new economic development work objective, will be initiated in FY2003 for the Historic Downtown Sub-area. Under this work objective, the Agency will seek new uses for Broadway's historic theaters. The goal of the "Entertainment District Project", a program initiated in cooperation by the Mayor's Office, Council Office and Los Angeles Conservancy, is to renovate and convert former cinema theaters into entertainment venues including live performance theaters and the presentation of art and vintage films. The Agency will assist this effort by identifying potential developers and operators, sources of funding and spearheading the construction of public parking. Total funding for this program for the next five years is $2,649,600. In the South Park Sub-area, the Agency will continue to monitor the Disposition and Development Agreement (DDA) with the LA Arena Company (Developer) for the construction of Staples Center. The Agency's primary role involved the acquisition and clearance of 23 acres of property surrounding Staples Center for parking. In accordance with the DDA, the Developer of Staples Center prepared a master plan for the future development of these properties. The DDA required the Developer to include in the master plan a major convention center hotel and address the future expansion needs of the Los Angeles Convention Center. In September 2001, the master plan was officially approved by City Council and included the following major components: a 1200-room convention hotel; a 600-room luxury hotel; a cultural facility, up to 800 units of housing; up to one million square feet of entertainment, retail, restaurants and a 7,000-seat live performance theater, an expansion of the West Hall of the Convention Center, and structured parking for the project and Staples Center. During the FY Five- Year Implementation, the Agency will complete acquisition activities initiated Five-Year Implementation Plan (FY ) Page 7

8 in prior years, monitor the development of projects in accordance with the approved master plan, and identify sources of funds for the development of the convention hotel and the cultural facility (CT3080). Total funding available over the next five years is $1,787,000. Additional financing for the convention hotel may be available under New Economic Development Opportunities (CT2110) with a total funding allocation for the next five years in the amount of $7,500,000. The New Economic Development Opportunities (CT2110) work objective may also fund other planned economic development activities including facade improvements for commercial storefronts and adaptive reuse projects, the development of parking facilities for commercial districts such as the Toy and Fashion Districts, and land assemblage for the expansion of industrial and commercial businesses and the creation of new employment opportunities. B. Elimination of Blight Mixed-use, hotel and commercial projects are fundamental to reversing both physical and economic conditions of blight. The planned economic development projects for the City Center Redevelopment Project will reverse negative economic conditions such as stagnant property values and high office vacancies, reverse business flight out of the downtown area, and provide the economic incentive to rehabilitate vacant and deteriorated historic buildings. Commercial projects carry out many of the goals of the Redevelopment Plan including providing a full range of employment opportunities for persons of all income levels; creating a modern, efficient and balance urban center including a full range of around-the-clock activities; preserving key landmarks that highlight the history and unique character of the City by blending old and new in an aesthetic realization of change or growth with distinction; and facilitating the adaptive reuse of structures or architectural, historic and cultural merit. A strong industrial base manufacturing, wholesale and distribution offers economic vitality and job growth in such industries as cold storage, apparel, produce, fish, toys, and flowers. An objective of the Plan is to recognize Downtown's importance as a regional employment opportunity through the retention and expansion of existing industries while developing new industries that solidify the City's position as the hub of the Pacific Rim and the center of U.S.-Mexico Trade. Five-Year Implementation Plan (FY ) Page 8

9 3. PUBLIC INFRASTRUCTURE AND IMPROVEMENTS A. Projects and Expenditures A number of projects initiated in the previous Five-Year Plan will be continued and completed under the new Plan and several new projects and programs will be initiated. Continued projects carried forward from the CBD Redevelopment Project include Broadway Sidewalk Reconstruction (CT4100) and Grand Hope Park (CT3020). New Projects include the realignment of Venice Boulevard (CT3060) and City Market Traffic Circulation (CT3010) In FY1998, the City initiated the reconstruction of Broadway with federal, State, MTA and Agency funds. The project involves the reconstruction of the roadway to better accommodate buses, to provide improved lighting and pedestrian crosswalks, and the reconstruction of the sidewalks from Temple to Ninth Streets. The reconstruction of the roadway was completed in FY2001. The first phase of the reconstruction of the sidewalks between 2 nd and 5 th Streets will be completed in FY2003. Funding for subsequent phases of the sidewalk reconstruction involving 5 th to 9 th and 2 nd to Temple Streets will depend on additional State and federal funding commitments. Total Agency funding over the next five years for all phases not including matching State or federal grants for future phases of the sidewalk reconstruction is $5,317,000. The Agency will continue to provide gap funding for the maintenance of Grand Hope Park (CT3020) for a total $1,191,900 (this includes the funds setaside in the Grand Hope Park Maintenance Trust Fund). Located adjacent to Fashion Institute of Design and Merchandising (FIDM), the 2.5-acre Grand Hope Park, designed by Lawrence Halprin, was completed in An association of property owners currently maintains the Park under a ground lease with the Agency and with funding provided by a special assessment and the Agency. In FY2003, the Agency will begin to address the significant jog in the alignment of Venice Boulevard at Hope Street, which causes significant traffic congestion during major events at the Los Angeles Convention Center and Staples Center. A realignment of the street would greatly improve the flow of traffic through the intersection and improve pedestrian safety. The immediate neighborhood has benefited from a number of Agency financed improvements including Venice Hope Park, Villa del Pueblo, an 81-unit affordable family housing development, and Villa Esperanza, a 90-unit senior housing project. The realignment of the street will require the removal of 60 units of substandard housing. The Grand Avenue Apartments Project (CT1020) will provide the requirement replacement units; additional replacement units may also be provided as required to accommodate the families displaced by the project. The project is expected to done in Five-Year Implementation Plan (FY ) Page 9

10 conjunction with the construction of the Venice Hope Community Center located at the southeast corner of the intersection. Total Agency funding for this project for the next five years is $5,161,100. Under the City Market Traffic Circulation work objective (CT3010) the Agency will initiate the preparation of studies to identify traffic and parking conflicts and needs within the City Markets and Historic Downtown Sub-areas of the City Center Redevelopment Project Area. A high priority project identified as a catalytic project in the Downtown Strategic Plan is the realignment of Olympic Boulevard. This catalytic project includes linking the disconnected east and west segments of Olympic Boulevard and the refurbishment of the old produce market into an indoor/outdoor market selling specialty foods, produce, fish, meat and flowers to downtown residents and tourists. Total Agency funding over the next five years for the realignment of Olympic Boulevard and other needed traffic and parking improvements is $18,191,700. Additional Agency activities will include identifying opportunities for the development of parks and open space, the feasibility of constructing a fixedrail "Heritage Trolley" reminiscent of the former "Red Car" transit system, and a feasibility study for placing the segment of the MTA Blue Line between the Santa Monica Freeway and 11 th Street below grade. The Agency will also pursue opportunities to provide additional open space in the South Park and the Historic Downtown Sub-areas in connection with new housing and mixeduse developments. Funding for these activities will be carried under Response to Development Opportunities (CT6990); total funding available for the next five years is $5,294,900. B. Elimination of Blight Public improvements eliminate blight by providing much needed improvements to the vehicular and pedestrian infrastructure. These projects further a number of the goals for the City Center Redevelopment Project such as facilitating the development of an integrated transportation system and providing much need public parking in underserved areas. A goal of the Plan is make improvements that allow for the efficient movement of people and goods into, through, and out of the Central City, and achieving excellence of design based on how the Central City is to be used by residents and employees, giving emphasis to parks, green spaces, street trees and districts designed for walking and sitting. Upgrading the public infrastructure improves pedestrian and vehicular linkages between the various districts throughout the City Center and reinforces economic revitalization efforts of the Agency. Five-Year Implementation Plan (FY ) Page 10

11 4. COMMUNITY AND PUBLIC FACILITIES A. Projects and Expenditures A several projects initiated in the previous Five-Year Plan for the CBD Redevelopment Project will be continued and completed under the new City Center Plan and several new projects and programs will be initiated in FY2003. Projects carried forward from the CBD Redevelopment Project include the Venice and Hope Community Center (CT3030), the Museum of Neon Art (CT2100), and St. Vibiana's (CT3040). New initiatives include South Park Elementary School (CT3000), Childcare (CT3040) and projects developed under Response to Development Opportunities (CT6990). The Venice and Hope Community Center (CT3030) will be constructed on property acquired by the Agency at the southeast corner of Venice Boulevard and Hope Street. During FY2003, the Agency will initiate the preparation of plans and identify other sources of matching funds for the project. Total Agency funding for the project over the next five years is $1,012,900. The Agency will continue to assist the Museum of Neon Art (MONA) (CT2100) with its effort to locate a permanent home in the downtown area. The Downtown Cultural Trust Fund may be used to assist with the cost of securing a permanent home for MONA. While engaged in its search, the Agency will provide funding to assist with the annual operating cost of the Museum in its temporary home located in the ground floor of the Renaissance Tower Apartments located at Hope Street and Olympic Boulevard. Agency financial assistance is being provided in exchange for services provide by MONA to the community. Total Agency funding over the next five years for CT2100 is $303,900. St. Vibiana's (CT3040) involves providing technical assistance for the adaptive reuse of the historic Cathedral into a performing arts center and school. The project has received a $4 million commitment from the State and the developer continues with efforts to identify additional sources of financing. Total Agency funding for the next five years is $139,800. The South Park Elementary School (CT3000) will be developed in cooperation with the Los Angeles Unified School District (LAUSD). The project will include a new elementary school, open space and 50 to 60 units of affordable housing with childcare. During FY2003, the Agency and LAUSD will identify alternative sites for the development of the project and formulate an intergovernmental cooperation agreement that outlines the responsibilities of the Agency and LAUSD for the financing and construction of the project. Total Agency funding for the project inclusive of the financing requirements for the housing and childcare center is $10,157,500. Five-Year Implementation Plan (FY ) Page 11

12 Childcare initiatives will include providing funding for the construction of childcare facilities in conjunction with family housing projects. Total funding for the next five years is $507,300. Finally, the Agency may assist with the improvement and expansion of pediatric and medical facilities in response to increased demands for services resulting from the anticipated growth in the downtown residential population. The Agency may also explore the feasibility of establishing a community court to address many of the minor violations committed by transients and juveniles that are more effectively addressed through rehabilitation and community service. These activities will be funded under Response to Development Opportunities (CT6990). B. Elimination of Blight The development of community and public facilities furthers a number of the goals for the City Center Redevelopment Project including providing important services and facilities necessary for the creation of a healthy downtown community. The development of cultural and educational facilities and open space will eliminate blight by bringing into productive use underutilized or vacant parcels and buildings, and by providing amenities currently lacking in the Project Area. The goals for the Project call for the creation of additional "parks, green spaces, and street trees, and places designed for walking and sitting" and the preservation of "key landmarks that highlight the history and unique character of the City". The development of cultural centers, childcare facilities and open space will make Downtown a more attractive and inviting environment for both businesses and residents, reinforcing efforts to attract tenants to existing office buildings and retail space, and new private investment in housing and commercial developments. 5. HOMELESSNESS REDUCTION AND SERVICES A. Projects and Expenditures In FY2003, the Agency will initiate an assessment of programs that provide services and housing for the homeless population in the City Center Redevelopment Project. This effort will be done in cooperation with the Los Angeles Homeless Services Authority and the non-profit service providers in the downtown. The assessment will attempt to address the unmet needs of the homeless community and provide recommendations that would address these needs and attempt to reduce the negative impact homelessness has on efforts to revitalize the Project Area. This effort may involve the relocation, modernization and expansion of existing homeless service providers. Total funding for this work objective (CT2000, Homeless Reduction Program) over the next five years is $8,175,800. Five-Year Implementation Plan (FY ) Page 12

13 B. Elimination of Blight The provision of much needed services and facilities to assist the homeless population will help improve the social and physical environment of the Redevelopment Project Area. In addition, expanded facilities and services will also make it possible for some of the homeless to re-enter the job market and find suitable housing opportunities. 6. RESPONSE TO DEVELOPER OPPORTUNITES A. Projects and Expenditures The operation of a Redevelopment Project entails expenditures not linked to specific projects enumerated in this Implementation Plan including administration costs, permit and CEQA processing costs, statutory or other legal obligations of the Agency, and programs and projects necessary to implement the Redevelopment goals and objectives for property acquisition and disposition, and assistance in the development and construction of industrial, commercial, residential, and public facilities and public improvements. Also included are project operations and technical staff costs, site office facility costs, supplies, equipment, materials, insurance and maintenance of Agency-owned properties, community meeting costs and general legal costs. Staff will continue to review permit applications for CEQA clearance and conformance with the Redevelopment Plan and provide technical assistance to property owners or developers proposing market rate housing, commercial or mixed-use developments. These proposals will sometimes require entering into an Owner Participation Agreement with the Agency. Nevertheless, they will be reviewed to ensure conformance with appropriate municipal building and planning code requirements, and where appropriate, to ensure that the development will carry out Redevelopment Plan objectives. Agency labor is needed to respond to developer requests, review permit applications, conduct analyses of planning, financial, real estate and environmental issues related to such proposals, and monitor projects which may or may not require Agency agreements. The total funding for this work objective over the next five years is $5,294,900. B. Elimination of Blight The Agency staff activities outlined above will help to eliminate blight by ensuring that development in the Project Area meets the goals and objectives of the Redevelopment Plan and is being carried out in conformance with the Redevelopment Plan. The staff functions will also further efforts to reverse the physical and economic decline of downtown. Five-Year Implementation Plan (FY ) Page 13

14 7. PROJECT GENERAL A. Projects and Expenditures Administering a Redevelopment Project necessarily entails costs that are not directly related to a specific work objective, but rather are related to the administration of the project including technical, legal, and administrative services and other community related services. Agency staff will administer the Project's ongoing activities, including complying with public notification requirements, providing public information, monitoring compliance with the Agency's Public Art Program and expenditures from the Downtown Cultural Trust Fund, and responding to inquiries from developers, property owners and others. These services are funded under Project General (CT9990); total funding available for the next five years is $1,438,500 B. Elimination of Blight Administering a Redevelopment Project necessarily entails the Agency staff activities and other administrative costs enumerated above. Administration of the Project ensures that redevelopment activities are carried out in compliance with the Community Redevelopment Law and in furtherance of the physical, economic and social revitalization of the Project Area. 8. PROJECT FINANCING A. Projects and Expenditures Tax Allocation Bonds are projected to be issued in FY2005 and FY2006, with the total net proceeds of $93,280,000 of which not less than 25% will be allocated to low- and moderate-income housing development in conformance with the Mayor's Policy on affordable housing. Estimated debt service payment on these bonds in FY2006 and FY2007 total $2,936,600 of which a proportionate share will be paid from the low- and moderate-income housing trust fund account. B. Elimination of Blight Administering a Redevelopment Project necessarily entails the Agency staff activities enumerated above. Administration of the Project's financial resources ensures that such resources are used in compliance with the Community Redevelopment Law and in furtherance of the physical and economic revitalization of the Project Area. Five-Year Implementation Plan (FY ) Page 14

15 9. AFFORDABLE HOUSING COMPLIANCE PLAN Section 33413(b)(4) of the Community Redevelopment Law (CRL) addresses the Agency's adoption and periodic update of a plan to ensure compliance with certain criteria regarding the mix of affordable new or rehabilitated housing units with the Project Area ("Housing Compliance Plan"). This Housing Compliance Plan should be consistent with the City's housing element and must also be reviewed and, if necessary, amended at least every five years wit either the housing element cycle or the Implementation Plan cycle. The following narrative addresses the following provisions of 33490(a)(2)(A) and (B) of the CRL. A. The estimated amount of tax increment revenue that will be deposited in the Low and Moderate Income Housing Fund during each of the next five years. The estimated amount of tax increment that will be deposited in the Low and Moderate Income Housing Fund during the each of the next five years is provided in Table I and Table II. Additionally, Table III, attached thereto, provides the project overall housing program of the Agency from all sources including the Low and Moderate Income Housing funds and other nonhousing trust fund sources. B. The following are projects and expenditures planned by the Agency for the City Center Redevelopment Project Area over the five-year period covered by this plan that will implement the affordable housing requirements: 1. The Agency will assist the adaptive reuse of vacant, historic building in the Historic Downtown Sub-area. Projects receiving financial assistance from the Agency will include at least 20% of the units reserved for low- and moderate-income households. This effort will be carried out under CT2080, Historic Core Revitalization, with a total funding allocation of $4,440,200 for the next five years. 2. The Agency will finalize negotiations on the 11 th Street Loft project (CT2190), a 240-unit, mixed-income housing project with 20% of the units reserved for low- and moderate-income households. Total funding allocated for this project is $1,171, The Agency will continue to assist the Grand Avenue Apartments (CT1020) project. This affordable family housing project with a childcare facility on the ground level will be located at the northeast corner of Venice Boulevard and Grand Avenue in the South Park Sub-area. A second phase of the project is planned for an adjacent parcel located at the northwest Five-Year Implementation Plan (FY ) Page 15

16 corner of Venice Boulevard and Olive Street. Total funding for this project over the next five years is $8,046, The Agency will proceed with the acquisition of land for the development of new affordable housing projects in the South Park Sub-area. The projected expenditure to complete the acquisition of new sites in South Park under CT1090 (Downtown Housing Opportunities) during the term of the Five-Year Plan is $28,981, The Agency will continue to work with LAUSD on the development of a new elementary school for the downtown area. The project will include an affordable housing component with 50 to 60 units of family housing and a childcare facility to serve the residents. Total funding for this project for the next five years is $10,157, The Agency will pursue opportunities for the development of mixed-use projects with affordable housing. Both new construction and adaptive reuse of vacant historic buildings will be considered. Agency activities are funded under CT2490, Mixed Use Opportunities, with a total allocation of $7,500,000 over the next five years. C. Estimates of the number of new, rehabilitated, or income restricted units to be assisted during each of the five years and estimates of the housing expenditures form the Low and Moderate Income Housing Fund during each of the five years. The estimates of the number of new, rehabilitated, or income restricted units to be assisted during each of the five years in provided in Table I and Table II. D. An estimate of the number of units of very low, low-, and moderateincome households required to be developed within the Project Area in order to meet the requirements of Section 33413(b)(2) of the CRL, both over the life of the Redevelopment Plan and during the next ten years. At the time housing units are developed, the Agency will comply with Section 33413(b)(2) of the CRL, which states that a least fifteen percent (15%) of all new and substantially rehabilitated dwelling units developed with the Project Area shall be available at affordable housing cost to low and moderate income households; and not less than forty percent (40%) of these dwelling units shall be available to very low income households. E. The number of units of very low, low- and moderate-income household which have been developed within the Project Area which meet the requirements of Section 33413(b)(2) of the CRL. Five-Year Implementation Plan (FY ) Page 16

17 Since the proposed Redevelopment Plan is in the process of being adopted and the Project Area is not yet been officially created, this requirement does not apply. F. An estimate of the number of Agency-developed residential units which will be developed during the next five years, if any, which will be governed by Section 33413(b)(1). The Agency does not anticipate developing or substantially rehabilitating any residential units itself during the next five years. G. An estimate of the Agency-developed units for very low, low- and moderate-income households which will be developed by the Agency during the next five years to meet the requirements of Section 33413(b)(1) of the CRL. The Agency does not anticipate developing any residential units itself during the next five years. H. The following discussion contains the components described in Section 33490(a)(3) of the CRL. Pursuant to Section 33490(a)(3) of the CRL, if the Implementation Plan contains a project that will result in the destruction or removal of dwelling units that will have to be replaced pursuant to Section 33414(a) of the CRL, the Implementation Plan shall identify proposed locations suitable for those replacement dwelling units. The Agency anticipates the removal of 60 dwelling units that will have to be replaced pursuant to Section 33414(a) of the CRL. The Agency proposes replacing these units within the Project Area at a site located at the northeast corner of Venice Boulevard and Grand Avenue, or at an alternative site appropriate for housing within the Project Area. The proposed replacement housing project is the Grand Avenue Apartments (CT1020). A Replacement Housing Plan will be approved by the Agency prior to the removal of the units as required by the CRL. Five-Year Implementation Plan (FY ) Page 17

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