The Community Redevelopment Agency of the City of Los Angeles

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1 The Community Redevelopment Agency of the City of Los Angeles

2 Welcome Steering Committee Members Introduction Purpose of Steering Committee

3 Wilmington & Redevelopment Encourage new investment in neighborhoods, businesses, and downtown Create more affordable housing Rehabilitate existing housing and businesses Build or improve roads, utilities and public facilities Clean up toxic sites Preserve and restore historic buildings and landmarks Preserve open space and build new recreational facilities

4 Encourage New Investment Before Fontana, CA After San Diego, CA Before After

5 Create More Affordable Housing Before After

6 Rehabilitate Existing Homes and Businesses Before Before After Sacramento, California After Riverside, California

7 Build or Improve Roads, Utilities and Public Facilities Before After

8 Attract New Jobs and Businesses In 2007, CRA/LA generated 21,000 full-time jobs Before Before After After

9 Clean Up Toxic Sites Before: Declining industrial site with acres of contaminated land Before: A contaminated vacant lot Stockton, CA Emeryville, CA After: An attractive urban village After: A waterfront gathering place and landmark

10 Preserve and Restore Historic Landmarks

11 Preserve Open Space and Build New Recreational Facilities Before Bell Gardens, CA After: Bell Gardens Sports Complex

12 Questions?

13 Overview of Redevelopment Review of Redevelopment Tools

14 Receive and Spend Revenue Once a redevelopment project area is formed, the property taxes paid establish the baseline within the area. As property values increase over time, property taxes paid over the base are called tax increment. Under California law tax increment generated within a defined redevelopment project must be spent within a project area

15 Install Public Improvements CRA/LA can use tax increment to improve public facilities & streets: Roads, Curbs, Gutters, and Sidewalks Sewers and Water Drainage Systems Parks, Plazas, and Recreational Facilities Community Facilities: Police/Fire Stations, Libraries, and Public Parking

16 Prepare Sites for Development CRA/LA can assist private property owners and developers to prepare sites for improvement This could include: Ground Clean-up Public Utility Improvement Relocation Assistance

17 Assemble Parcels CRA/LA can combine small parcels of land into a larger property to enable public improvements or new development CRA/LA will negotiate with an individual owner to buy land at market value

18 Sell or Lease Property CRA/LA may work with a property owner or developer to sell or improve a property CRA/LA will generally enter into one of three types of agreements: 1. Exclusive Negotiation Agreement 2. Owner Participation Agreement 3. Disposition and Development Agreement

19 Assist Private Development CRA/LA can encourage development or rehabilitation by providing: Payment for up-front costs, such as architectural/engineering work, appraisals, or market studies Loans for commercial upgrades Assistance with manufacturing facilities Construction upgrades to conform with earthquake standards Cleanup of toxic materials Removal of graffiti Sale of land at a low price ( land write down ) Financing public facilities, roads, and utilities

20 Regulate Land Use The Plan will also dictate how land uses will be controlled within the project area

21 Preserve, Upgrade, and Produce Housing CRA/LA must invest 20% of the total tax increment it receives into the production of affordable housing units for low or moderate income individuals and families

22 Questions?

23 Plan Amendment Process

24 CRA/LA Initiation In order to start the Plan Amendment process, CRA/LA has to seek approval from the CRA/LA Board and the LA City Council

25 Survey Area Los Angeles City Council approves survey area in 1969

26 CRA/LA Initiation (continued) March City Council approves Various Actions Memos May 2009 Board approves expenditure of $485,000 for various consulting services August 2009 Contract for consulting services executed January 2010 Physical blight survey commences March 2010 EIR RFP transmitted to environmental consultants March 2010 First Steering Committee Meeting

27 Preliminary Plan Planning Commission must prepare a preliminary plan for the proposed redevelopment project area Includes: Boundaries of project area General statement about land uses in the area, streets, population densities, and building intensities Explain how redevelopment plan will conform to general plan Describe potential impacts of project on residents living in the project area

28 Report to Taxing Entities CRA/LA must notify all taxing agencies within the project area of its intent to form a redevelopment project area The report notifies the State Board of Equalization to begin preparation of a report identifying the total assessed valuation of taxable property in the proposed project area

29 EIR Notice of Preparation EIR: Environmental Impact Report A report that provides an assessment of the possible impact that a proposed project may have on its surrounding environment Includes natural, social, and economic impacts Environmental Consultant drafts Notice of Preparation to submit to the State Clearinghouse and all related public agencies

30 Preliminary Report CRA/LA must prepare preliminary report for all taxing agencies currently receiving property tax revenue from the project area This report is critical because it requires CRA/LA to identify types of blighting conditions in the project area as well as the scope and purpose of the redevelopment plan

31 Demonstrating Blight According to CA Redevelopment Law, a redevelopment agency must provide evidence that demonstrates the existence of physical blight and economic blight in the proposed project area Physical Blight Economic Blight Unsafe or unhealthy buildings Depreciated or stagnant property values Factors that limit hindering the economic viability of property Adjacent or nearby incompatible land uses (open storage, liquor stores, adult cabarets) Irregular lots in multiple ownership Impaired property values due to hazardous waste Poor business conditions Serious lack of commercial facilities Serious residential overcrowding Problem businesses and high crime rates

32 Redevelopment Plan Draft The Redevelopment Plan acts like a charter that authorizes and limits the CRA/LA s abilities to implement projects The Plan includes goals and policies of the CRA/LA for the proposed project area Some Plan Elements: Description of project area Amount of open space Limitation on size, height, and use of buildings Properties devoted to public purposes Proposed methods of financing Limits on the amount of bonded indebtedness 20% of TIF to be used for affordable housing

33 Circulation of Draft EIR Environmental Consultant prepares traffic study and EIR

34 Planning Commission Review LA City Planning Commission reviews drafts of the EIR & Redevelopment Plan

35 Prepare final EIR & Report to City Council Final EIR and Report is submitted to the LA City Council for approval The report contains comprehensive analysis of the scope of, basis for, and impacts of the redevelopment plan

36 Joint Public Hearing Joint Public Hearing with CRA/LA Board of Commissioners and Los Angele City Council

37 Required Public Actions Planning Commission CRA/LA Board Approval of the Preliminary Plan and project area boundary Report and recommendation on the proposed Plan Amendment Authorization and circulation of the proposed Plan Amendment, Preliminary Report, Report to City Council, and the Draft EIR Joint public hearing w/city Council on the Plan Amendment Certification of the Final EIR Adoption of the Owner Participation and Business Reentry Rules City Council Designation of the Survey Area PAC formation procedures and certification Joint public hearing w/agency on the Plan Amendment Certification of the Final EIR, findings and approval of the Plan Amendment

38 Questions?

39 Break

40 Steering Committee Roles & Responsibilities

41 Steering Committee Role Represent broad segment of the community Help inform other community stakeholders about the plan amendment effort; share community input Participate in community meetings, workshops, and public hearings Advise CRA/LA staff on important documents that set the framework for the Project Area over the next 30 years Environmental Impact Report (EIR) Redevelopment Plan Five Year Implementation Plan

42 What is CEQA? The California Environmental Quality Act (CEQA): (1) Inform governmental decision-makers and the public about the potential, significant environmental effects of proposed activities. (2) Identify the ways that environmental damage can be avoided or significantly reduced. (3) Prevent significant, avoidable damage to the environment by requiring changes in projects through the use of alternatives or mitigation measures when the governmental agency finds the changes to be feasible. (4) Disclose to the public the reasons why a governmental agency approved the project in the manner the agency chose if significant environmental effects are involved.

43 Environmental Impact Report (EIR) Definition: A public document used by the governmental agency to analyze the significant environmental effects of a proposed project, to identify alternatives, and to disclose possible ways to reduce or avoid the possible environmental damage. When is an EIR Required? An EIR is prepared when the public agency finds substantial evidence that the project may have a significant effect on the environment.

44 Components of the EIR Process Notice of Preparation: A document stating that an EIR will be prepared for a particular project and the first step in the EIR process. The Notice of Preparation provides: Description of the project. Location of the project indicated on an attached map. Probable environmental affects of the project. Draft EIR: The circulated version of an EIR before comments are incorporated. Basic sections include project description, type of EIR, setting, and impacts to the environment. Final EIR: The entire components of the draft EIR and public comments and the lead agency responses.

45 Redevelopment Plan Components of Redevelopment Plan Project Area Boundaries Goals and Objectives Proposed Redevelopment Actions Property Acquisition Owner Participation Rules for Relocation Permitted Uses Development Controls Methods of Financing

46 Project Area Boundaries

47 Goals & Objectives Redevelopment Purpose: Elimination of blight Plan Objectives: Establish the framework for future redevelopment activities Sample Plan Objective: Maintain the Downtown and surrounding area as an aesthetically pleasing community reflecting its past and reinforcing its status as an international port city, with waterfront access Pacific Corridor

48 Proposed Redevelopment Actions Establishes the redevelopment powers Property Acquisition Eminent Domain Property owned/managed by CRA/LA Owner Participation Rules Relocation/Displacement

49 Permitted Land Uses Must be consistent with the General Plan, but can be more restrictive and prohibit certain uses For example: The following uses are prohibited within the Project Area: liquor store, penny arcade, pawnshop, and massage parlor.

50 General Development Controls Must be consistent with the General Plan, but can be more restrictive and prohibit certain uses For example, The total amount of land which may be covered by buildings shall not exceed fifty percent (50%) of the site

51 Method of Financing Establishes how improvements will be financed Tax Increment Distribution to Taxing Entities Bonds, Advance and Indebtedness Other Loans and Grants

52 Five Year Implementation Plan Establishes the Work Program for the next 5 years Contents of the Implementation Plan include: Goals and Objectives Specific Programs and Related Expenditures How blight will be eliminated Plan to implement the low and moderate housing requirement

53 Participation in Public Meetings Community Meetings & Workshops Planning Commission Meeting for Preliminary Plan CRA/LA Board of Commissioners Meeting for Preliminary Report Planning Commission Meeting for proposed Redevelopment Plan and Draft EIR Joint City Council - CRA/LA Public Hearing

54 Steering Committee Logistics Regular Meeting Day & Time Upcoming Calendar Code of Conduct Meeting Coordination/Facilitation

55 Next Steps Upcoming Agenda Overview of Redevelopment Project Area Requirements Overview of the Redevelopment Plan and Preliminary Plan Discussion of Redevelopment Plan Goals and Objectives Complete physical blight field survey Select an Environmental Consultant Present the Preliminary Plan to Planning Commission

56 Wrap-Up Questions?