Lompoc Redevelopment Agency Agenda Item

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1 Lompoc Redevelopment Agency Agenda Item Meeting Date: December 21, 2003 TO: FROM: SUBJECT: Gary P. Keefe, Executive Director Linda R. Wertman, Redevelopment Program Coordinator REDEVELOPMENT AGENCY ANNUAL REPORT TO THE STATE CONTROLLER, ANNUAL AUDIT, AND ANNUAL REPORT OF HOUSING ACTIVITY RECOMMENDATION: Staff recommends the Redevelopment Agency Board accept the attached Annual Report of Financial Transactions, Annual Audit, and Annual Report of Housing Activity, and authorize Staff to submit said documents to the State Controller and the Department of Housing and Community Development. BACKGROUND: The California Redevelopment Law requires all redevelopment agencies to file, within six months following the close of the previous fiscal year, an annual report and financial audit with the State Controller, and an annual report with the Department of Housing and Community Development. Fiscal Year closed June 30, 2004; therefore, our annual report and audit must be filed before December 31, The annual report documents the activities and transactions of the Redevelopment Agency, especially those related to the production and rehabilitation of affordable housing. The annual financial audit documents the Agency s financial transactions. Fiscal Year focused on fine-tuning previously designed programs and the continuation of formalizing existing programs with written administrative, implementation, and monitoring procedures. Agency staff s primary focus this year was the Old Town, which is located primarily in the original project area. Activities in this area included: a design contract awarded for the Negus Pocket Park, the purchase of three rotations of downtown banners, funding contribution for the hire of a planning consultant for a feasibility study for the creation of a Historic District, and a feasibility loan to a local non-profit to determine the possibility of a project on the corner of H and Ocean Avenue.

2 ANNUAL REPORT FY Page 2 of 6 The Agency also completed the design component of the R.E.S.P.E.C.T. Program, which the Agency was to develop for the Building Division to implement using CDBG funding. The program outline delivery to the Building Division is pending administrative review by the Community Development Director. Upon review the program will be delivered to the Building Division for the integration of their requirements and implementation needs. The Agency experienced another year of staff changes, with the departure of Kim Hight, the Agency s half-time Grant Records Technician, who left the City s and Agency s employ in late April. The Grant Records position, which was previously a job share position funded as 50% RDA and 50% CDBG has shifted to a full time CDBG position in FY The Agency s part time Grant Records position will remain vacant until such time as the Agency workload warrants the position be filled. The Agency was able to hire a Housing Programs Technician, Christie Alarcon, in July 2003, who has focused on training up for her position. Christie has greatly increased the capacity of staff to develop administrative guidelines, procedures, and forms that assist in monitoring and tracking our upcoming and existing projects. The Agency s tax increment greatly increased this year due to record increases in residential and commercial property values, as well as reassessment due to the sale of properties. The Sue Dalton Dance Studio new construction project was completed in December of 2003, which is the first new development in Old Town for many years. In addition to the completed projects, several commercial construction projects currently in the pipeline or completed since July 2004 within the Redevelopment Area are: The Home Depot, Fast Pass Car Wash, Yanez Electric, Schuyler Mini-Storage, a Mixed-Use project in Old Town, and an Extended Stay Hotel/SRO. There have been 47 new residential units completed this year within the project area. The Agency received Inclusionary Covenants on six affordable single-family units (3 units completed in this FY year), within the 39-unit Walnut Village project (21 units were completed this FY). Six substantially rehabilitated units were also completed with Agency assistance during FY Additionally a nine unit multifamily residential project located at College and F Street was completed in the Old Town Lompoc Redevelopment Project Area. Residential units in the construction phase or in the pipeline within the Redevelopment Area are: 35 unit multifamily project at College and G Street, The Donati Apartment project on North L Street, 4 unit multifamily project on North K Street, and a 308 unit residential project is in the pipeline on the northeastern area of amendment two of the project area. Most of these projects will provide new tax increment to the Project Area as well as inclusionary covenants for affordable units. The second amendment area expansion will bring several high profile projects to the project area when they are completed over the next couple of years.

3 ANNUAL REPORT FY Page 3 of 6 DISCUSSION: During the past fiscal year, the Agency made the following contributions to the community: CalHFA HELP Loan During the fiscal year the Agency funded a $105,000 predevelopment loan for a 5 unit for sale Condo project located on North T Street. This funding was the first draw from the Agency s second California Housing Finance Agency (CalHFA) 10-year loan of $750,000. These funds enabled the Agency to assist the Lompoc Housing Assistance Corporation (LHAC) now known as Lompoc Housing and Community Development Corporation (LHCDC), in the predevelopment stage of a 5 unit for sale condo project which will restrict three units at low income and two units at moderate. This new construction in-fill project proposes additional funding with CalHFA funds for the construction as well as Low Mod Income Housing Funds (LMIHF) over the next two years, to complete this project. T Street Condos New Units in process and under covenant FY units 5 units Previous housing projects under rehabilitation: N. K Street (includes Child Care Center) 4 units T and College Avenue 35 units Portabello Apartments 14 units Casa Con Tres Apartments: N. L Street 12 units Total Units in process for completion 65 units The CalHFA funds have assisted 104 units in the first four years of the loan. This money is available to be loaned on a short-term basis (3-4 years) to LHAC and other affordable housing developers. We anticipate being able to loan this money at least two more times during the ten-year term of the CalHFA Loan. It is possible that over this time, the Agency will be able to triple the set goal of 72 total units assisted and under covenant through use of the CalHFA money (a total of 216 units). SET ASIDE LOANS: Set Aside funds were reallocated this year to the buyers of the Habitat for Humanity homes completed this fiscal year. The original loan for $20,000 to Habitat for Humanity was split between the new very low-income families who

4 ANNUAL REPORT FY Page 4 of 6 purchased these homes; each owner assumed a $10,000 lien against their home and a 45-year covenant was recorded on each unit. The Agency expended many hours of staff time and resources to accomplish this transfer with the assistance of the Agency s attorney. The Agency now has the tools to streamline any future projects with Habitat for Humanity as well as transfers of ownership on Inclusionary units. No additional funds were expended in FY COVENANTS: Walnut Village: The Agency was able to secure covenants on six single-family for sale units to satisfy the affordability requirements of a new 39-unit single-family development known as Walnut Village located on the 900 block of East Walnut Avenue. The six restricted units must be sold at a price affordable to Very Low, Low and Moderateincome households. The affordability covenant restricts the sale of these units to one unit at Low Income, two units at Moderate; and three units at Very Low Income households. BUSINESS LOAN: Façade Program: The Agency approved a Façade Loan for La Chiquita Center located at West Laurel Avenue in the amount of $75,000; the project has been approved by the Planning Commission and is awaiting receipt of contractor information to execute documents. The accomplishment data for this loan will be reported in FY H & Ocean: A loan in the amount of $70,000 was made in November 2003 to the Lompoc Housing and Community Development Corporation (LHCDC), a local non-profit for the purpose of performing feasibility activities on a property located in the center of the old town. DOWNTOWN POCKET PARK The Agency assisted in reviewing and interviewing potential firms for the design portion of this park. The contract was awarded to CPS, a landscape architecture, urban design and town-planning firm from Ventura. The proposals that were received were all over and above the $50,000 of Agency funds allocated in FY03-04 for the park design. Additional funding in FY04-05 will pay for the balance of the contract for design and consultation of the Negus Downtown Park. ADOPT-A-BLOCK PROGRAM Three rotations of banners were purchased for the Old Town in this fiscal year. The banner themes were a patriotic choice, an Old Town Market banner, and the

5 ANNUAL REPORT FY Page 5 of 6 Welcome to Lompoc banner identified in the Old Town Specific Plan. The Agency expended $9,071 in the banner rotation and will budget additional funds for the balance needed to purchase of a Holiday Banner in FY OLD TOWN HISTORIC DISTRICT The Agency assisted in funding 75% of the cost associated with the hire of a contract Planner and a Historic Resources Consultant who will perform the survey necessary for the establishment of a Historic District in the Old Town Lompoc Project Area. The Historic District will assist in attracting additional financing opportunities to area residents and property owners interested in investing in their properties and in the elimination of blighted properties in the project area. PROPERTY OWNED BY AGENCY: This annual report is required to identify properties the Redevelopment Agency holds, and the purpose for its ownership of these properties. As of the date of this report, the Redevelopment Agency owns the following properties: APN Location Purpose Bl. W. Ocean Public Parking Bl. W. Ocean Public Parking Bl. W. Ocean Public Parking Bl. W. Ocean Public Parking Bl. S. I Street Public Parking Bl. W. Cypress Public Parking Bl. W. Cypress Public Parking Bl. S. J Street Public Parking Bl. S. J Street Public Parking Bl. W. Ocean Public Parking CONCLUSION: Fiscal Year was primarily focused on program development, administrative procedure development, inclusionary process development, and monitoring procedures for affordability covenants. In the past few years the Agency has focused primarily on assisting housing projects with acquisition and rehabilitation funds. In this fiscal year we have developed tools and procedures to track and monitor the existing covenants and loan agreements. We have developed systems and reports that assist staff in tracking the varied projects currently in process as well as those that have been completed previously. Many of the Agency s housing projects are in the construction and rehabilitation stage this year. The completion of these projects have been slow, due to the commitment of non-displacement of the Low and Very Low income households

6 ANNUAL REPORT FY Page 6 of 6 who occupy the apartment complexes currently under rehabilitation. While this practice extends project completion timeframes on these projects and slows the Agency annual accomplishment data, staff recognizes the efforts not to displace these tenants is an admirable practice, which must be tolerated as part of the process. Lompoc Housing and Community Development Corporation (LHCDC), the local non-profit who is rehabilitating the properties in question have expanded from primarily a housing organization into the development of community projects. These projects include the feasibility study for the development of a vacant lot in the center of Old Town ( H & Ocean), and the renovation of a historic theatre, all of which have shifted staff time away from housing rehabilitation projects currently in process. Agency staff is hopeful that the capacity of LHCDC to complete the housing projects currently in process will be aided by additional staffing in FY The Agency continues to benefit from working with this non-profit on housing projects and has secured more covenants on more affordable housing units with this non-profit than in all the years the Agency has had a Project Area. The Agency currently holds one hundred and twenty nine (129) units under covenant on property owned by LHCDC. Staff wishes to thank the Board for their guidance and support throughout the year. We look forward to making a significant impact in our community and downtown areas in the upcoming years with programs on line to encourage business and property owners to invest in their properties as well as programs to encourage new development and job creation opportunities for area residents. We look forward to future opportunities for housing to our area residents along with the continued quest to improve physical and economically blighted conditions in the Project Area. Linda R. Wertman Redevelopment Programs Coordinator APPROVED FOR SUBMITTAL TO THE EXECUTIVE DIRECTOR: Arleen T. Pelster, AICP Deputy Director APPROVED FOR SUBMITTAL TO THE REDEVELOPMENT AGENCY BOARD: Gary P. Keefe, Executive Director Attch: 1) Financial Transaction Report 2) Housing Activities Report 3) Annual Financial Audit

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