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HomeMy WebLinkAboutAgenda Report - May 15, 2002 C-01 SMCITY OF LODI REDEVELOPMENT AGENCY AGENDA TITLE: Resolution of the Redevelopment Agency of the City of Lodi Approving and Adopting the Report to the City Council on the Proposed Redevelopment Plan for the Lodi Redevelopment Project No. 1, Submitting said Report and Proposed Redevelopment Plan to the City Council, and Consenting to a Joint Public Hearing on said Redevelopment Plan MEETING DATE: May 15, 2002 PREPARED BY: Community Development Director RECOMMENDED ACTION: That the Redevelopment Agency adopt the Resolution of the Redevelopment Agency of the City of Lodi Approving and Adopting the Report to the City Council on the Proposed Redevelopment Plan for the Lodi Redevelopment Project No. 1, Submitting said Report and Proposed Redevelopment Plan to the City Council, and Consenting to a Joint Public Hearing on said Redevelopment Plan. BACKGROUND INFORMATION: At the Agency's last meeting, you referred the proposed Redevelopment Plan to the Planning Commission and the Project Area Committee (PAC) for review and comment. That Plan contains all of the required legal verbage pursuant to State Law. The Report on the Plan before you with this action contains the required analysis of the project area. The Report includes the basis and impacts of the Plan. The majority of this document was previously approved in its preliminary form by the Agency on February 6, 2002. This Report is now in its final form having been reviewed by the PAC, taxing entities and the public at large. Specifically, the Report must include the following: Reasons for selecting the project area, a description of the specific projects proposed by the agency, and an explanation of why redevelopment of the project area cannot be accomplished by private enterprise acting alone. • Description of the physical and economic conditions existing in the area, including specific blighting conditions and a map showing where those conditions exist. • An implementation plan describing agency goals and objectives, specific programs, including potential projects, and estimated expenditures to be made within the first five years of the plan, and a description of how these projects will improve or alleviate blighting conditions. APPROVED: 25 �-Zd)SE,� Dixon Flynn -- 416 Manager 0211.doc 05/07/02 Council Communication Meeting Date: May 15, 2002 Page 2 • An explanation of why the elimination of blight and the redevelopment of the project area cannot reasonably be expected to be accomplished by private enterprise acting alone or by the legislative body's use of financing alternatives other than tax increment financing. • Proposed method of financing the project. • Method for relocating persons and families. • An analysis of the preliminary plan. • The report and recommendation of the planning agency. • Summary of the project area committee meetings. • Report of the planning agency regarding acquisition of real property. • The EIR. • Report of the county fiscal officer. • Neighborhood impact report if the project area contains low -or moderate -income housing. • Analysis of the county fiscal officer's report, including a summary of the agency's consultations with affected taxing agencies. If any taxing entities have expressed written objections or concerns with the proposed project area as part of the agency's consultations with the taxing entities, the agency must include a response to those concerns. With this action, the Agency is also requesting that the City Council hold a joint public hearing on the Redevelopment Plan along with the Final Environmental Impact Report on June 19, 2002. The actions related to this public hearing will be the final actions on the adoption process. FUNDING: None required Konradt Bartlam Community Development Director Prepared by: Community Development Director KB/lw AGENCY RESOLUTION NO. RDA2002-03 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LODI APPROVING AND ADOPTING THE REPORT TO THE CITY COUNCIL ON THE PROPOSED REDEVELOPMENT PLAN FOR THE LODI REDEVELOPMENT PROJECT NO. 1, SUBMITTING SAID REPORT AND PROPOSED REDEVELOPMENT PLAN TO THE CITY COUNCIL, AND CONSENTING TO A JOINT PUBLIC HEARING ON SAID REDEVELOPMENT PLAN WHEREAS, the Redevelopment Agency of the City of Lodi (the "Agency") has prepared a proposed Redevelopment Plan (the "Redevelopment Plan") for the Lodi Redevelopment Project No. 1 (the `Project'); and WHEREAS, the Agency has submitted the proposed Redevelopment Plan to the Planning Commission of the City of Lodi for its report and recommendations, and the Planning Commission, by Resolution No. 02-17, adopted on May 8, 2002, reviewed the proposed Redevelopment Plan and recommended the approval and adoption of the proposed Redevelopment Plan; and WHEREAS, pursuant to Section 33352 of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the Agency has prepared a Report to the City Council on the proposed Redevelopment Plan; and WHEREAS, Section 33355 of the Community Redevelopment Law authorizes a joint public hearing on the proposed Redevelopment Plan with the consent of the Agency and the City Council of the City of Lodi. NOW, THEREFORE, the Redevelopment Agency of the City of Lodi does hereby resolve as follows: Section 1. The Agency hereby approves and adopts the Report to the City Council on the Redevelopment Plan for the Lodi Redevelopment Project No. 1 and hereby submits said Report, together with the proposed Redevelopment Plan for the Project, to the City Council. Section 2. The Agency hereby consents to a joint public hearing on the proposed Redevelopment Plan for the Project, and requests the City Council to call a joint public hearing of the Agency and the City Council on June 19, 2002, at 7:00 p.m. in the Carnegie Forum, 305 West Pine Street, Lodi, California, to consider and act upon the proposed Redevelopment Plan and all documents and evidence pertaining thereto. Section 3. The Secretary of the Agency shall, in cooperation with the Cleric of the City of Lodi, prepare, publish, and mail such notices and documents and do all other acts as may be necessary to carry out the purposes of this resolution. Dated: May 15, 2002 ------------------------------------------------------------------------ ------------------------------------------------------------------------ I hereby certify that Resolution No. RDA2002-03 was passed and adopted by the Members of the Redevelopment Agency in a regular meeting held May 15, 2002 by the following vote: AYES: MEMBERS — Howard, Land, and Chairperson Pennino NOES: MEMBERS — Nakanishi ABSENT: MEMBERS — Hitchcock ABSTAIN: MEMBERS — None Attest: SUSAN J. BLACKSTON Secretary 0 `� IMALAAMP I eFM 1—I& PHILLIP A.TNNINO Chairperson At - RDA2002-03 2 REPORT ON THE PLAN April 2002 for the Lodi Redevelopment Project Report on the Plan Lodi Redevelopment Project r Report Prepared By Lodi Redevelopment Agency 221 West Pine Street Lodi, CA 95240 (209) 333-6711 Seifel Consulting Inc. 1388 Sutter Street, Suite 520 San Francisco, CA 94109 (415) 931-9600 John B. Dykstra & Associates 6644 Ascot Drive Oakland, CA 94611 (510) 530-7229 April 2002 Table of Contents Report on the Plan Lodi Redevelopment Project I. Introduction............................................................................................. I-1 A. Project Area Description..................................................................................................................................... I-1 B. Reasons for Selecting the Project Area............................................................................................................... I-4 C. Attainment of the Purposes of the California Community Redevelopment Law and Redevelopment Plan Goals.................................................................................................................................................................... I-5 D. Redevelopment Project Actions.......................................................................................................................... I-6 E. Conformity with the City's General Plan........................................................................................................... I-7 F. Overview of the Redevelopment Plan Adoption Process..................................................................................1-7 G. Report on the Plan Requirements........................................................................................................................ I-8 H. Public Agency Actions to Date and Scheduled................................................................................................ I-11 II. Existing Conditions................................................................................ II -1 A. Introduction.........................................................................................................................................................II-1 B. Character of the Area as Predominantly Urbanized..........................................................................................II-1 C. Characteristics of a Blighted Area.....................................................................................................................II-6 D. Assessment of Existing Conditions....................................................................................................................II-7 E. Adverse Physical Conditions...........................................................................................................................II-10 F. Economic Conditions that Cause a Reduction of, or Lack of, Proper Use of the Proposed ProjectArea......................................................................................................................................................II-28 G. Necessity for Redevelopment...........................................................................................................................II-53 III. Redevelopment Program Description ................................................. III -1 A. Introduction........................................................................................................................................................III-1 B. Relationship between Redevelopment Program and Alleviation of Blighting Conditions ............................III -2 C. Description of Non -Housing Redevelopment Program...................................................................................1114 IV. Proposed Methods of Financing and Feasibility..................................IV-1 A. Introduction....................................................................................................................................................... IV -1 i Lodi Redevelopment Agency i Report on the Plan Lodi Redevelopment Project April 2002 B. Stimulation of Private Investment.................................................................................................................... IV4 C. Potential Funding Sources Other than Tax Increment Financing................................................................... IV -2 D. Other Funding Sources Considered to Be Infeasible....................................................................................IV-12 Land Uses, Streets, Population and Building Standards................................................................................VII-1 E. Tax Increment Financing: the Primary Source of Funding........................................................................... IV -12 F. Assumptions Used in Tax Increment Projections......................................................................................... IV -15 G. Tax Increment Projections.............................................................................................................................. IV -20 H. Financial Feasibility of the Proposed Redevelopment Project..................................................................... IV -23 1. Reasons Why Tax Increment Financing Is Necessary .................................................................................. IV -24 V. Implementation Plan (July 2003 to June 2008) ..................................... V-1 A. Background.........................................................................................................................................................V-1 B. Objectives of the Redevelopment Plan..............................................................................................................V-2 C. Adverse Physical and Economic Conditions and Elimination of Blight..........................................................V-2 D. Five Year Action Program for Non -Housing Redevelopment Activities.........................................................V-4 E. Housing Activities..............................................................................................................................................V-7 F. Statutory Requirements for Housing.................................................................................................................V-8 G. Housing Production Plan...................................................................................................................V-13 H. Housing Goals and Programs...........................................................................................................................V-15 VI. Method or Plan for Relocation of Families, Persons or Businesses Who MayBe Displaced..................................................................................VI-1 A. Statutory Requirements.................................................................................................................................... VI -1 B. Analysis............................................................................................................................................................. VI -1 VII. Analysis of Preliminary Plan.............................................................. VII -1 A. Statutory Requirements................................................................................................................................... VII -1 B. Boundaries of the Project Area....................................................................................................................... VII -1 C. Land Uses, Streets, Population and Building Standards................................................................................VII-1 D. Attainment of Purposes of State Law............................................................................................................. VII -2 E. Conformity with the General Plan .................................................................................................................. VII -3 F. Consistency of Redevelopment Plan with Preliminary Plan ......................................................................... VII -3 G. General Impacts upon Surrounding Neighborhoods......................................................................................VII-3 i FJ a t Lodi Redevelopment Agency ii Report on the Plan , Lodi Redevelopment Project April 2002 VIII. Planning Commission Actions...........................................................VIII-1 A. Statutory Requirements..................................................................................................................................VIII-1 B. Analysis...........................................................................................................................................................VIII-1 IX. Summary of Public Review of the Proposed Plan................................IX-1 A. Statutory Requirements.................................................................................................................................... IX -1 B. Analysis................................................................................................................................................. ...IX -1 JX. Environmental Review........................................................................... X-1 A. Statutory Requirements............................................................................................................................... ...X-1 B. Analysis ...................................... ... XI. Report of the County Fiscal Officer XI -1 A. Statutory Requirements.................................................................................................................................... XI -1 B. Total Assessed Valuation of all Taxable Property within the Project Area as Shown on the Base Year AssessmentRoll................................................................................................................................................ XI -2 C. Identification of Each Taxing Entity Levying Property Taxes in the Project Area ....................................... XI -2 D. Ad Valorem Tax Revenues Derived by Each Taxing Entity from the Base Year Assessment Roll of the fProject Area...................................................................................................................................................... XI -2 II E. Estimated First Year Taxes Available to the Redevelopment Agency........................................................... XI -3 XII. Summary of Consultations with Taxing Entities ............................... XII -1 A. Statutory Requirements...................................................................................................................................XII-1 B. Agency Contacts with Affected Taxing Entities............................................................................................ XII -1 C. Responses to Written Objections or Concerns of the Affected Taxing Entities ...........................................XII -2 XIII. Neighborhood Impact Report............................................................XIII-1 IA. Statutory Requirements..................................................................................................................................XIII-1 ` B. Analysis...........................................................................................................................................................XIII-2 1 C. Impact of Plan on Housing...........................................................................................................................XIII-13 Lodi Redevelopment Agency iii Report on the Plan Lodi Redevelopment Project April 2002 I� Table of Contents (continued) Tables Lists of Figures, Tables and Graphs Table H-1 Calculation of the l;,xtent of Urbanization Lodi Redevelopment Project......................................................11-4 Table 11-2 Building Conditions Assessment...................................................................................................................0-16 Fieures Figure I-1 Project Area Boundary Map............................................................................................................................. I-3 ' FigureII-1 Urbanization Map...........................................................................................................................................II-5 Table U-5 Historical Sales Tax Revenue to City by Subarea Lodi Redevelopment Project........................................1I-31 Table U-6 Sales Prices for Single Family Homes City of Lodi and Surrounding Area...............................................II-33 Figure 11-2 Building Condition Survey Areas..................................................................................................................11-9 Table 11-8 Annual Transient Occupancy Tax Per Room Lodi Redevelopment Project (in Constant 2000 Dollars) ... 11-37 Figure H-3 Location of Unreinforced Masonry Buildings, Downtown Lodi................................................................11-13 Table U-9 Summary of Commercial Lease Rates Lodi Market Area, January 2002 ...................................................11-41 Figure Ii-4 Average Building Conditions by Survey Area....................... II-19 Table II -11 Prototypical Purchase and Rehabilitation Project Downtown - Mixed Use Office and Retail.................0-45 Figure II-5 Code Compliance Problems.........................................................................................................................II-20 Table II -12 Prototypical Purchase and Rehabilitation Project East Side Industrial Project.........................................B-46 Table II -13 Underutilized Properties by Subarea Central Railroad Commercial/IndustrW Corridor .........................II -47 Figure 11-6 Limits of Identified Soils and Groundwater Contamination Plumes............................... ........................... Figure II-7 Limits of Major Soils and Groundwater Contamination Plumes................................................................II-23 R-22 Table II -15 Residential Overcrowding Redevelopment Project Area City of Lodi......................................................II-51 Figure II-8 Incompatible Uses, Adverse Impact of Traffic on Residences...................................................................1I-25 Table 11-16 Residential Overcrowding East Side Neighborhood City of Lodi.............................................................0-52 Figure II-9 Incompatible Uses, Adverse Impact of Industrial Uses on Residences......................................................II-26 Table 111-1 How Redevelopment Program Will Eliminate Adverse Conditions...........................................................III-3 Figure II-10 Location of Major Underutilized Properties Central Railroad Commercial/Industrial Corridor ............II-48 Table III -2 Projected Total Costs of Proposed Lodi Redevelopment Program Non -Housing and Housing Activities................................................................................................111-9 Figure I1-11 Location of Major Underutilized Properties Cherokee Lane Commercial Corridor...............................0-50 Table IV -1 Estimated Net Cost to Agency of Redevelopment Program in Constant 2002 dollars ............................. IV -3 Graphs I Graph IV -1 Projected Growth in Assessed Value Lodi Redevelopment Project Area ............................................... IV -17 Graph IV -2 Tax Increment Projections Lodi Redevelopment Project........................................................................ IV -21 Graph IV -3 Distribution of Tax Increment Revenues Proposed Lodi Redevelopment Project (Constant 2002 Dollars).................................................................. IV -22 Graph II -1 Median Sale Price of Single Family Homes................................................................................................ H-34 Graph II -2 Median Sale Price of Multifamily Homes....................................................................................................0-35 Graph II -3 Annual Transient Occupancy Tax per Room Inside and Outside of Project Area.....................................II-38 Tables Table H-1 Calculation of the l;,xtent of Urbanization Lodi Redevelopment Project......................................................11-4 Table 11-2 Building Conditions Assessment...................................................................................................................0-16 Table 11-3 Building Conditions Survey Results, Total Area..........................................................................................II-18 Table II -4 Sales Tax Receipts Comparison of Lodi Commercial Areas 6 -Year Trend (Adjusted for Inflation) ........0-30 Table U-5 Historical Sales Tax Revenue to City by Subarea Lodi Redevelopment Project........................................1I-31 Table U-6 Sales Prices for Single Family Homes City of Lodi and Surrounding Area...............................................II-33 Table lI-7 Lodging Establishments Lodi Redevelopment Project (in Constant 2000 Dollars)....................................11-37 Table 11-8 Annual Transient Occupancy Tax Per Room Lodi Redevelopment Project (in Constant 2000 Dollars) ... 11-37 Table U-9 Summary of Commercial Lease Rates Lodi Market Area, January 2002 ...................................................11-41 Table II -10 Size of Available Commercial Space in Lodi January 2002......................................................................11-42 Table II -11 Prototypical Purchase and Rehabilitation Project Downtown - Mixed Use Office and Retail.................0-45 Table II -12 Prototypical Purchase and Rehabilitation Project East Side Industrial Project.........................................B-46 Table II -13 Underutilized Properties by Subarea Central Railroad Commercial/IndustrW Corridor .........................II -47 Table II -14 Underutilized Properties by Subarea Cherokee Lane Commercial Corridor.............................................II-49 Table II -15 Residential Overcrowding Redevelopment Project Area City of Lodi......................................................II-51 Table 11-16 Residential Overcrowding East Side Neighborhood City of Lodi.............................................................0-52 Table 11-17 Part 1 Crime Incidence in 2000 Project Area Compared to Citywide Lodi Redevelopment Project....... 1I-53 Table 111-1 How Redevelopment Program Will Eliminate Adverse Conditions...........................................................III-3 Table III -2 Projected Total Costs of Proposed Lodi Redevelopment Program Non -Housing and Housing Activities................................................................................................111-9 Table 111-3 Projected Costs of Proposed Redevelopment Program............................................................................. III -11 Table IV -1 Estimated Net Cost to Agency of Redevelopment Program in Constant 2002 dollars ............................. IV -3 Table IV -2 Property Tax Distribution Lodi Redevelopment Project Area.................................................................IV-14 Lodi Redevelopment Agency iv Report on the Plan Lodi Redevelopment Project April 2002 Table IV -3 Summary of Tax Increment Projections Lodi Redevelopment Project .................................................... IV -20 Table IV -4 Comparison of Estimated Tax Increment Revenues and Funding Requirements .................................... IV -24 Table V-1 How Redevelopment Program Will Eliminate Adverse Conditions.............................................................V-3 Table V-2 Projected Tax Increment Revenues.................................................................................................................V-5 Table V-3 Projected Non -Housing Program Expenditures..............................................................................................V-6 TableV-4 Affordable Housing Cost...............................................................................................................................V-10 Table V-5 SJCG Regional Fair Share Allocations.........................................................................................................V-11 TableV-6 Population by Age Category .........................................................................................................................V-11 Table V-7 Affordable Housing Production Obligation..................................................................................................V-14 Table V-8 Annual Deposits to Housing Set -Aside Fund...............................................................................................V-16 Table V-9 Estimate of Agency -Assisted Housing Units................................................................................................V-18 Table V-10 Housing Set -Aside Fund Distribution by Income Category ......................................................................V-18 Table V-11 Housing Set -Aside Fund Distribution by Age Category ............................................................................V-19 Table XI -1 Ad Valorem Tax Revenues Derived from Base Year FY 2001/02............................................................ XI -3 Table XI -2 Basic Property Tax Revenues Generated in Project Area and Totals for Taxing Entities Derived from BaseYear FY 2001/02...................................................................................................................... XI -3 Appendices Appendix A. Sources Appendix B. Legal Description of the Project Area Appendix C. List of Unreinforced Masonry Buildings Appendix D. Building Conditions by Survey Areas and Subareas Appendix E. List of Code Compliance Problems Appendix F. Photographic Documentation of Existing Conditions Appendix G. County Fiscal Officer's Report San Joaquin County Auditor Appendix H. Tax Increment Projections Appendix I. Project Area Committee (PAC) Minutes and Public Notices Lodi Redevelopment Agency v Report on the Plan Lodi Redevelopment Project April 2002 I. Introduction The Redevelopment Agency of the City of Lodi (Agency) is preparing a Redevelopment Plan for the Lodi Redevelopment Project Area (Project Area). The Lodi City Council will consider approval of the Plan during 2002. The proposed Project Area is comprised of approximately 1,184 acres of commercial, industrial and residential land uses in the City of Lodi (City) and is primarily located north of Kettleman Lane, south of Turner Road, east of Ham Lane and west of Commerce Street. This document is the Report on the Plan for the proposed Lodi Redevelopment Plan, which is required by Section 33352 of the California Community Redevelopment Law (CRL), a subsection of the California Health and Safety Code.' The Report on the Plan is the final major background document in the process leading to consideration of the approval of the Lodi Redevelopment Plan (Redevelopment Plan). It is a public document designed to provide background information on the Redevelopment Project to the Agency, the Lodi Project Area Committee (PAC), and affected taxing entities. The Report on the Plan is of value to all participants in the plan adoption process as a final statement of program needs, goals, activities and costs. The adoption of the Redevelopment Plan will put into place a redevelopment program designed to alleviate the Project Area's blighting conditions, which are documented in this Report on the Pian. The Report on the Plan describes the projects and activities proposed to alleviate blight and promote economic development, residential neighborhood conservation and areawide public improvements. Finally, the Report on the Plan sets forth financing methods proposed to implement the Redevelopment Program. This chapter is organized as follows: A. Project Area Description B. Reasons for Selecting the Project Area C. Attainment of the Purposes of the California Community Redevelopment Law and Redevelopment Plan Goals , D. Redevelopment Project Actions E. Conformity with the City's General Plan F. Overview of the Redevelopment Plan Adoption Process G. Report on the Plan Requirements H. Public Agency Actions to Date and Scheduled A. Project Area Description 1. Project Area Boundaries The proposed Project Area consists of approximately 1,184 acres located entirely within the City of Lodi, California. The proposed Project Area boundary was developed based on a review of background information, discussions with City staff, and an examination of available maps and aerial photographs. Special consideration was given to the California Community Redevelopment Law (CRL) eligibility 1 The California Community Redevelopment Law is contained in Part I of Division 24, Community Development and Housing, of the Health and Safety Code beginning at Section 33000. All further statutory references are to the Health and Safety Code unless otherwise noted. Lodi Redevelopment Agency I-1 Report on the Plan Lodi Redevelopment Project April 2002 requirements. (For more information on these requirements, refer to Section G of this chapter and Chapter II). The proposed Project Area is comprised of a variety of residential, commercial and industrial land uses. The proposed Project Area boundaries are shown in Figure I-1 (See Appendix B for the legal description and map of the Project Area boundaries.) proposed The proposed Project Area is adjacent to Highways 12 and 99. Cherokee Lane, the location of the original Highway 99 before it was upgraded and relocated to the east, traverses the proposed Project Area, Highway 12, Kettleman Lane, runs near the southern border and the current Highway 99 runs near the eastern border. The western border of the proposed Project Area is adjacent to Ham Lane. The Project Area contains several commercial areas, including the Downtown. Downtown Lodi is generally regarded as the area bounded by Lockeford Street to the north, Lodi Avenue to the south, Church Street on the west, and Sacramento Street and the Union Pacific Railroad on the east. It has a land area of approximately 40 acres, and includes approximately 400,000 square feet of first floor commercial space. Historic buildings and storefront commercial development are concentrated along School Street. A smaller mixed commercial and industrial area extends along the frontages of Main and Pine Streets, east of the railroad. It is approximately 15 acres in area and contains approximately 110,000 square feet of first floor commercial space .2 Another smaller commercial area extends west along Lodi Avenue to Ham Lane. ' Cherokee Lane is the gateway to Lodi from Highway 99, which is an important north -south route in the Central Valley. Cherokee Lane stretches for approximately two miles between the northern and southern Highway 99 off -ramps. Its frontage consists of a mixture of large and small-scale commercial businesses, public facilities such as the fairgrounds and the vacant Lincoln School, as well as light industrial development.' Kettleman Lane, which forms the southern boundary of the proposed Project Area, is an important commercial corridor in Lodi. Highway 12 provides the principal east -west access to the area and coincides with Kettleman tane west of Highway 99. It then follows Highway 99 for about one mile north before branching east as Victor Road. As discussed in Chapter II, the location, scale and quality of the transportation improvements and resulting land use patterns have negatively affected properties in the proposed Project Area. The negative conditions exist particularly within the oldest areas of the City, which are located primarily within the proposed Project Area. These negative conditions include impaired access and circulation; deteriorating properties, buildings and infrastructure; incompatible land uses; outmoded and/or deficient buildings; deficient and substandard public improvements; substandard lots; economic stagnation and depreciated values; and residential overcrowding. 1 2 Freedman Tung and Bottomley, Central City Revitalization Program; Concept Development Phase, 1994, p. 6. ' ' Ibid. p. 19. Lodi Redevelopment Agency I-2 Report on the Plan , Lodi Redevelopment Project April 2002 Lodi was first subdivided in 1869 by the Oakland -Sacramento Central Pacific Railroad Company, when the town of Mokelumne was founded. The City was incorporated on December 6, 1906. Lodi's early growth was attributed to an extensive network of passenger train services that once served the City. Industries built warehouses and manufacturing plants to maximize railroad access and frontage. Commercial districts were developed in close proximity to the railroad depot to capitalize on passenger ' patronage, and residential development occurred in areas beyond the commercial and industrial uses.' Rail service has steadily declined since the 1950s and 1960s as the expanding freeway system replaced rail transport with automobiles and trucks.' I B. Reasons for Selecting the Project Area The City Council recommended establishing a redevelopment project to accomplish the following goals:' • Revitalize areas in Lodi that exhibit both physical and economic blight; • Stimulate private investment in Lodi's commercial areas; • Improve housing conditions and infrastructure in residential neighborhoods; and • Provide tax increment funds for the redevelopment activities that are needed to alleviate blighting conditions. I. Substantial and Prevalent Blighting Conditions ' Both physical and economic conditions prevent the proposed Project Area from achieving its full potential. Chapter II of this Report on the Plan documents the proposed Project Area's physical and economic blighting conditions in accordance with the CRL. Existing conditions found in the proposed Project Area include eight of the nine statutorily defined categories of physical and economic blight. The blight documentation is based on field surveys, building condition ratings of 3,382 structures, photographic evidence, independent environmental analyses, and economic data and analyses. I 4 Information taken from the Lodi Conference & Visitors Bureau website, located at www.visitlodi.com/history.html ' Environmental Science Associates, Lodi Multi -Modal Station: Initial Study/Negative Declaration, May 1999, p. 11. 6 Ibid., p. 3. ' Preliminary Plan for the Lodi Redevelopment Project, July 11, 2001. Lodi Redevelopment Agency I-4 Report on the Plan ' Lodi Redevelopment Project April 2002 2. History of the Project Area The historical growth of the City of Lodi has greatly influenced the existing physical and economic conditions in the proposed Project Area, which encompasses the oldest commercial and industrial areas and residential neighborhoods in Lodi. , Lodi's initial growth was primarily related to agriculture and the prime farming land that surrounds the City. Lodi is located on the edge of the Sacramento Delta, an area of productive agricultural land. The Miwok Indians, the area's earliest inhabitants, enjoyed a life of abundant plant life nurtured by the black peat soil of the Delta. Lodi was once known as the watermelon capital, when trains would transport watermelons from Lodi to cities all across the nation. Today, Lodi's cash crop is the wine grape. The Lodi area produces more Zinfandel, Merlot, Cabernet Sauvignon, Chardonnay and Sauvignon Blanc grapes than any other wine region in the state. The Lodi area also produces, processes and exports a wide variety of vegetables, fruits and nuts. It has one of the largest cherry export operations in the country, shipping primarily to Japan and other Pacific Rim countries' Lodi was first subdivided in 1869 by the Oakland -Sacramento Central Pacific Railroad Company, when the town of Mokelumne was founded. The City was incorporated on December 6, 1906. Lodi's early growth was attributed to an extensive network of passenger train services that once served the City. Industries built warehouses and manufacturing plants to maximize railroad access and frontage. Commercial districts were developed in close proximity to the railroad depot to capitalize on passenger ' patronage, and residential development occurred in areas beyond the commercial and industrial uses.' Rail service has steadily declined since the 1950s and 1960s as the expanding freeway system replaced rail transport with automobiles and trucks.' I B. Reasons for Selecting the Project Area The City Council recommended establishing a redevelopment project to accomplish the following goals:' • Revitalize areas in Lodi that exhibit both physical and economic blight; • Stimulate private investment in Lodi's commercial areas; • Improve housing conditions and infrastructure in residential neighborhoods; and • Provide tax increment funds for the redevelopment activities that are needed to alleviate blighting conditions. I. Substantial and Prevalent Blighting Conditions ' Both physical and economic conditions prevent the proposed Project Area from achieving its full potential. Chapter II of this Report on the Plan documents the proposed Project Area's physical and economic blighting conditions in accordance with the CRL. Existing conditions found in the proposed Project Area include eight of the nine statutorily defined categories of physical and economic blight. The blight documentation is based on field surveys, building condition ratings of 3,382 structures, photographic evidence, independent environmental analyses, and economic data and analyses. I 4 Information taken from the Lodi Conference & Visitors Bureau website, located at www.visitlodi.com/history.html ' Environmental Science Associates, Lodi Multi -Modal Station: Initial Study/Negative Declaration, May 1999, p. 11. 6 Ibid., p. 3. ' Preliminary Plan for the Lodi Redevelopment Project, July 11, 2001. Lodi Redevelopment Agency I-4 Report on the Plan ' Lodi Redevelopment Project April 2002 The proposed Project Area suffers from physical and economic blighting conditions that need to be alleviated to improve commercial and industrial areas and revitalize and conserve the residential areas. The conditions of blight in the proposed Project Area include, but are not limited to: • Deficient or deteriorated buildings • Factors that inhibit proper use of buildings or lots • Incompatible uses • Substandard lots in multiple ownership • Depreciated or stagnant values or impaired investments • Economic indicators of distressed buildings or lots • Residential overcrowding • High crime rate The blighting conditions within the proposed Project Area are substantial and prevalent, and have resulted in deterioration and poor utilization of the area. C. Attainment of the Purposes of the California Community Redevelopment Law and Redevelopment Plan Goals The proposed Plan Adoption will be undertaken to achieve the purposes of the CRL and the City's General Plan, and to attain the following goals. The proposed Redevelopment Plan will be consistent with the City's General Plan, and will adopt and incorporate the land use policies and standards of the General Plan. 1. Goals The primary goal of the Redevelopment Plan is to alleviate physical and economic blighting conditions in the Project Area by improving the area's economic base while preserving and enhancing residential areas. An important purpose of the proposed Redevelopment Project in Lodi is to protect and improve residential areas, primarily the East Side neighborhood. Redevelopment activities would be designed to preserve the residential character of the neighborhood and encourage renovation of single family and multifamily housing. Redevelopment would promote the economic revitalization of commercial areas, such as Downtown Lodi and Cherokee Lane. The proposed Redevelopment Project would provide funding to promote investment in commercial areas and capitalize on the changes resulting from the new multimodal Lodi Station. Improving the economic vitality of these commercial and industrial areas will also enhance the appeal of the East Side neighborhood as a place to live. The following goals are based upon observed needs in the area, recommendations from previous studies and the City's General Plan. The listing of the proposed goals does not indicate a hierarchy of relative priority: • The elimination of blighting influences and the correction of environmental deficiencies in the Project Area, including, among others, buildings in which it is unsafe or unhealthy for persons to live or work, small and irregular lots, faulty exterior spacing, obsolete and aged building types, mixed character or shifting uses or vacancies, incompatible and uneconomic land uses, substandard alleys, and inadequate or deteriorated public improvements, facilities, and utilities. Lodi Redevelopment Agency I-5 Report on the Plan Lodi Redevelopment Project April 2002 B These purposes were excerpted from the draft Redevelopment Plan for the Lodi Redevelopment Project, April 2002. 1 Lodi Redevelopment Agency I-6 Report on the Plan , Lodi Redevelopment Project April 2002 • The assembly of land into parcels suitable for modem, integrated development with improved pedestrian and vehicular circulation in the Project Area. • The replanning, redesign, and development of portions of the Project Area which are stagnant or improperly utilized. • The provision of opportunities for participation by owners and tenants in the revitalization of their properties. • The strengthening of retail and other commercial functions in the Project Area. • The strengthening of the economic base of the Project Area by stimulating new investment. , • The expansion of employment opportunities. • The provision of an environment for social and economic growth. • The expansion, improvement, and preservation of the community's supply of housing available to low and moderate income persons and families. • The installation of new or replacement of existing public improvements, facilities, and utilities in , areas that are currently inadequately served! 2. Achieving City Goals and Objectives The Lodi Redevelopment Project will further several City goals and objectives, through alleviation of physical and economic blighting conditions in the Project Area by improving the area's economic base and preserving and enhancing residential areas. The Redevelopment Project will address these goals by t assisting in improving older areas and preparing for the future. D. Redevelopment Project Actions The Agency proposes to eliminate adverse physical and economic conditions and implement the goals of the Redevelopment Plan through the following actions (excerpted from the draft Redevelopment Plan): Site Assembly and Preparation • Acquisition of real property and the assembly of adequate sites for the development and construction , of residential, commercial, and industrial facilities. • Demolition or removal of buildings and improvements. • Provision of relocation assistance to displaced Project occupants. Conservation and Improvement of Residential Areas • Conservation of residential properties through the establishment of a Residential Conservation Area in the East Side neighborhood, as more particularly described in the Redevelopment Program description in Chapter III of this Report. , Public Improvements • Installation, construction, or reconstruction of streets, utilities, and other public improvements. Agency Assistance for Redevelopment Purposes • Management of any property acquired by and under the ownership and control of the Agency. , B These purposes were excerpted from the draft Redevelopment Plan for the Lodi Redevelopment Project, April 2002. 1 Lodi Redevelopment Agency I-6 Report on the Plan , Lodi Redevelopment Project April 2002 • Provision for participation by owners and tenants presently located in the Project Area and the extension of preferences to business occupants and other tenants desiring to remain or relocate within the redeveloped Project Area. • Disposition of property for uses in accordance with the Redevelopment Plan. • Redevelopment of land by private enterprise or public agencies for uses in accordance with the Redevelopment Plan. • Rehabilitation of structures and improvements by present owners, their successors, and the Agency. 1. Providing Tax Increment Funds for Redevelopment Projects The primary funding source for most redevelopment projects is tax increment revenue generated by increased property values in a project area. Tax increment revenues would be used to leverage private funds to undertake improvement projects and stimulate private investment in the proposed Project Area. Preliminary analysis indicates that the proposed Project Area could generate substantial tax increment revenues through the revitalization of the commercial and residential areas. This report provides initial projections of potential tax increment in Chapter IV and Appendix H. E. Conformity with the City's General Plan As detailed in the July 2001 Preliminary Plan for the Lodi Redevelopment Project, the proposed development and redevelopment will be in conformance with the adopted General Plan of the City of Lodi, the City of Lodi Zoning Ordinance, and all other applicable state and local building codes and guidelines. It will also be subject to all review and procedural requirements in effect as development and redevelopment take place within the proposed Project Area boundaries. The Preliminary Plan proposed a similar pattern of land uses to the General Plan, and included all highways and public facilities indicated by the General Plan. The Redevelopment Plan will include provisions that it will remain consistent with the General Plan as the General Plan is amended from time to time. In concept, the proposed Redevelopment Program has received initial support from the City Council and Planning Commission. F. Overview of the Redevelopment Plan Adoption Process Adopting a redevelopment pian involves complex, statutorily mandated procedures and documentation designed to provide a community's legislative body with the necessary analysis and input to make informed decisions about the purpose, scope and content of the proposed Redevelopment Plan and ultimately, about whether to adopt the plan. The following briefly describes the reports and steps in the Lodi Redevelopment Plan adoption process: • Project Area Designation. The City Council designates the Survey Area, and the Planning Commission selects boundaries for the proposed Project Area. • Preliminary Plan. In cooperation with the Redevelopment Agency, the Planning Commission adopts the Preliminary Plan, which provides a general description of land uses, redevelopment goals and objectives, and a map and legal description of the proposed Project Area boundaries. • Project Area Committee. The City Council authorizes and establishes procedures for the formation of a project area committee (PAC) if the Agency contemplates actions that may potentially result in the relocation or displacement of low and moderate income households. The PAC reviews and advises on the proposed Redevelopment Plan. The PAC submits its report and recommendations on the Plan to the Agency and City Council. Lodi Redevelopment Agency 1-7 Report on the Plan Lodi Redevelopment Project April 2002 G. Report on the Plan Requirements This Report on the Plan is designed to comply with the requirements of CRL Section 33352. A listing of the Report on the Plan requirements and a description of how this Report on the Plan is organized to meet ' these requirements follows. (Excerpts from the CRL are italicized and referenced.) 1. Reasons for Selecting the Project Area The reasons for the selection of the project area. Section 33352(a) The reasons for selecting the proposed Project Area and the reasons for adopting a Redevelopment Plan are presented in Chapter II, and summarized in Section B above. 2. Physical and Economic Conditions in the Project Area A description of the physical and economic conditions specified in Section 33031 that exists in the area that cause the project area to be blighted. The description shall include a list of the conditions described in Section 33031 that exist within the project area and a map showing where in the project the conditions exist. Section 33352(b) The evidence provided in Chapter II of this Report and summarized in Section B above demonstrates that ' the proposed Project Area has adverse physical and economic conditions sufficient to support a finding that the area is blighted in accordance with CRL Sections 3303l(a) and (b). The documentation on the extent of urbanization in the Project Area is also provided in Chapter Il. The , documentation demonstrates that the Project Area meets the urbanization requirements specified in Section 33320.1. The proposed Project Area contains no lands in agricultural use. Lodi Redevelopment Agency I-8 Report on the Plan , Lodi Redevelopment Project April 2002 i • Preliminary Report. The Preliminary Report describes the purpose and projected impact of the proposed Redevelopment Plan. It is the first major background document in the process to the approval of the Redevelopment Plan. The Preliminary Report is reviewed as a draft by staff and Agency Board. The final version, as updated, is incorporated into the Report on the Plan. • Environmental Impact Report. The adoption of the Redevelopment Plan requires the preparation of an Environmental Impact Report (EIR) in accordance with the California Environmental Quality Act (CEQA). • Redevelopment Plan. The Agency prepares a final Redevelopment Plan, which will be the legal document setting forth the basic goals, powers and limitations within which the Agency must conduct ' its activities over the life of the Project. The Agency submits the final Redevelopment Plan to the Planning Commission and the City Council in preparation for the public hearing and City Council consideration of adoption of the Plan. • Report on the Plan. The Report on the Plan is the report that accompanies the Redevelopment Plan, designed to help the City Council make an informed decision on whether to adopt the Plan. It is further described in the next section. 1 G. Report on the Plan Requirements This Report on the Plan is designed to comply with the requirements of CRL Section 33352. A listing of the Report on the Plan requirements and a description of how this Report on the Plan is organized to meet ' these requirements follows. (Excerpts from the CRL are italicized and referenced.) 1. Reasons for Selecting the Project Area The reasons for the selection of the project area. Section 33352(a) The reasons for selecting the proposed Project Area and the reasons for adopting a Redevelopment Plan are presented in Chapter II, and summarized in Section B above. 2. Physical and Economic Conditions in the Project Area A description of the physical and economic conditions specified in Section 33031 that exists in the area that cause the project area to be blighted. The description shall include a list of the conditions described in Section 33031 that exist within the project area and a map showing where in the project the conditions exist. Section 33352(b) The evidence provided in Chapter II of this Report and summarized in Section B above demonstrates that ' the proposed Project Area has adverse physical and economic conditions sufficient to support a finding that the area is blighted in accordance with CRL Sections 3303l(a) and (b). The documentation on the extent of urbanization in the Project Area is also provided in Chapter Il. The , documentation demonstrates that the Project Area meets the urbanization requirements specified in Section 33320.1. The proposed Project Area contains no lands in agricultural use. Lodi Redevelopment Agency I-8 Report on the Plan , Lodi Redevelopment Project April 2002 3. Proposed Projects and Blight Alleviation A description of the specific projects then proposed by the agency, a description of how these projects will improve or alleviate the conditions described in subdivision (b). Section 33352(a). Chapter III of this Report on the Plan provides descriptions of the projects and activities proposed by the Agency as a means to alleviate adverse conditions within the proposed Project Area. Preliminary cost estimates covering these projects and activities are also provided. In addition, Chapter III links proposed projects and activities with identified adverse conditions and demonstrates how the Agency can use redevelopment to alleviate blighting conditions in the proposed Project Area. 4. Proposed Method of Financing An explanation of why the elimination of blight and the redevelopment of the project area cannot reasonably be expected to be accomplished by private enterprise acting alone or by the legislative body's use of financing alternatives other than tax increment financing. Section 33352(d). The proposed method offinancing the redevelopment of the project area. Section 33352(e) Chapter IV of this Report on the Plan describes the proposed methods for financing the Redevelopment Project. Estimated Redevelopment Program costs are presented with available funding sources. The analysis demonstrates the economic feasibility of the Project and the reasons for including a provision for the division of taxes (tax increment financing). 5. Implementation Plan An implementation plan that describes specific goals and objectives of the agency, specific projects then 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 conditions described in Section 33031. Section 33352(c) ' A five year Implementation Plan for the Lodi Redevelopment Plan is provided in Chapter V of this Report on the Plan. The Plan outlines statutory requirements for non -housing, as well as affordable housing activities, and sets forth the Agency's primary goals, objectives, programs, and possible expenditures during the first five years of the Plan. 6. Method or Plan for Relocation A method or plan for the relocation offamilies and persons to be temporarily or permanently displaced from housing facilities in the project area, which method or plan shall include the provision required by Section 33411.1 that no persons or families of low and moderate income shall be displaced unless and until there is a suitable housing unit available and ready for occupancy by the displaced person or family at rents comparable to those at the time of their displacement. ' Section 333520 The Agency will propose a detailed method and plan for relocation of families and persons to be displaced in connection with any Lodi Redevelopment Agency project prior to undertaking any actions that would result in such displacement. The Agency relocation policy will comply with Lodi Redevelopment Agency I-9 Report on the Plan ' Lodi Redevelopment Project April 2002 CRL Section 33367(d)(7), which requires a redevelopment agency to have a feasible relocation method or plan if the agency's redevelopment plans are to result in the displacement of any households or businesses in a project area. The relocation requirement is described in Chapter VI. The chapter sets forth the general policies for the administration of the relocation program with respect to the Redevelopment Plan for the Lodi Project Area and the provision of services and benefits to displaced families, individuals, businesses, and community institutions. It should be noted at the outset that the relocation of any households or businesses would only be used if it were reasonably necessary to redevelop a property. Should relocation be necessary to implement the Redevelopment Project, then all state guidelines will be followed. The Agency anticipates that a minimal number of dwellings would be displaced over the life of the Redevelopment Plan, although the Agency has no plans to relocate residents or businesses at this time. In the off -chance that it should become necessary to use eminent domain in the future, the City and Agency will follow all state guidelines and relocation requirements, and make every effort to relocate persons as close as possible to their current place of residence or business. Furthermore, the Agency would not commence any reasonably necessary relocation until it has firm commitments from public funding sources or competent developers that the desired redevelopment of the areas will take place in a timely manner and with the least disruption to existing homes and businesses. 7. Analysis of the Preliminary Plan An analysis of the preliminary plan. Section 333520 ' Chapter VII of this report provides an analysis of the Preliminary Plan adopted by the Lodi Planning Commission on July 11, 2001. 8. Planning Commission Actions The Section 33352(h) report and recommendations of the planning commission. The report required by'Section 65402 * of the Government Code. Section 333520) Chapter VIII of this report discusses the Planning Commission actions. The Planning Commission is scheduled to consider the adoption of a resolution finding the Lodi Redevelopment Plan in conformance with the Lodi General Plan at its regularly scheduled meeting on May 8, 2002. 9. Summary of Public Review of the Proposed Redevelopment Plan The Section Section 33352(1) summary referred to in 33387. A summary of the meetings of the Lodi Project Area Committee (PAC) and other public meetings is contained in Chapter IX of this report. 10. Environmental Review * The report required by Section 21151 of the Public Resources Code. Section 33352(k) On March 12, 2002, the Redevelopment Agency released for public review, the Draft Environmental Impact Report (Draft EIR). The document was distributed to all affected taxing entities, the PAC, the ' Planning Commission and other entities as required by law. The public review period of the Draft EIR was March 12, 2002 to April 25, 2002. A public hearing on the document was held on April 24, 2002 at the regular Lodi Planning Commission Meeting. All written comments received during the public review ' Lodi Redevelopment Agency I-10 Report on the Plan Lodi Redevelopment Project April 2002 period and comments received at the public hearing will be addressed in the Response to Comments Document, which will also show relevant changes to the text of the Draft EIR. The Final EIR is scheduled to be transmitted on May 31, 2002 to the City Council, the Planning Commission and the PAC pursuant to Section 21151 of the Public Resources Code. At the joint public hearing on the Redevelopment Plan Adoption scheduled for June 19, 2002, comments will be received on the Final EIR. Chapter X of this report summarizes the EIR process. A summary of the impacts of redevelopment activities associated with the Plan adoption that are addressed in the EIR appears in the neighborhood impact report, Chapter XIII of this report. 11. Report of the County Fiscal Officer and Analysis of the Report The report of the countyfiscal officer as required by Section 33328. Section 33352(1) An analysis by the agency of the report submitted by the county as required by Section 33328... Section 33352(n) The January 14, 2002 Report of the San Joaquin County Fiscal Officer on Assessed Valuation in the Lodi Redevelopment Project (33328 Report) is provided as Appendix G. The analysis of the Report of the County Fiscal Officer is included in Chapter XI of this report. 12. Summary of Consultations with Taxing Entities An analysis by the agency of the report submitted by the county as required by Section 33328, which shall include a summary of the consultation of the agency, or attempts to consult by the agency, with each of the affected taxing entities as required by Section 33328. If any of the affected taxing entities have expressed written objections or concerns with the proposed project area as part of these consultations, the agency shall include a response to these concerns, additional information if any, and, at the discretion df the agency, proposed or adopted mitigation measures. Section 33352(n) A summary of consultations with affected taxing entities is contained in Chapter XII of this report. 13. Neighborhood Impact Report If the project area contains low or moderate income housing, a neighborhood impact report which describes in detail the impact of the project upon the residents of the project area and the surrounding areas, in terms of relocation, traffic circulation, environmental quality, availability of communityfacilities and services, effect on school population and quality of education, property assessments and taxes, and other matters affecting the physical and social quality of the neighborhood. Section 33352(m) The neighborhood impact report is contained in Chapter XIII of this report. H. Public Agency Actions to Date and Scheduled The following major public agency actions related to the proposed Redevelopment Project have occurred to date: • On February 16, 2000, the City Council designated the Survey Area for the proposed Lodi Redevelopment Project (Resolution 2000-23). Lodi Redevelopment Agency I-11 Report on the Plan Lodi Redevelopment Project April 2002 0 On June 7, 2000, the Agency Board accepted the findings of the Feasibility Report for the proposed Lodi Redevelopment Project Area (Resolution 2000-01). • On March 28, 2001, the Planning Commission considered the Preliminary Plan for the Lodi Redevelopment Project and the Project's preliminary boundaries. The Planning Commission recommended expanding the Survey Area and Project Area Boundaries. • On April 18, 2001, the City Council designated the revised Survey Area for the proposed Lodi Redevelopment Project (Resolution 2001-93). • On July 11, 2001 the Planning Commission adopted the Preliminary Plan for the Lodi ' Redevelopment Project, designated the Project's preliminary boundaries, and forwarded the Preliminary Plan to the Redevelopment Agency. The Commission found the Preliminary Plan in conformity with the City of Lodi General Plan (General Plan), and found that the Preliminary Plan met the criteria of Section 33324 by setting forth the boundaries of the proposed Project Area, proposed general land uses, population density, and building intensity and standards. • On September 5, 2001, the Agency accepted the Preliminary Plan and authorized forwarding the Preliminary Plan to taxing entities. • On September 5, 2001, the City Council adopted the Project Area Committee (PAC) Election and Formation Procedures, and called for formation of the Lodi Redevelopment PAC. • On September 15, 2001, the Agency mailed a written notice to all businesses, property owners, residential tenants, and community organizations within the proposed Project Area announcing the selection of the Project Area and the intention to form the PAC. The notice also invited businesses, , property owners, residential tenants, and community organizations within the proposed Project Area to participate in the PAC and attend a September 25, 2001 Informational Meeting. • On September 18, 2001, the Agency submitted documents required by CRL Section 33327 to affected taxing entities and the county auditor, assessor, and tax collector. These documents contained a statement that the Redevelopment Plan was being prepared, a description of the proposed Project Area boundaries, and a map indicating the boundaries of the Project Area. • On September 25, 2001, a public informational meeting was held to provide information on the redevelopment process, formation of the Project Area Committee, and EIR scoping meeting. • On October 1, 2001, the Agency mailed the Notice of Preparation of a Draft Environmental Impact Report (EIR) to the County Clerk and the distribution list, which included affected or responsible taxing agencies, local, regional, state, and federal government entities, and various other interested individuals and organizations. • On October 19, 2001, the PAC election was held. A list of PAC members is contained in Appendix I. • On November 7, 2001, the City Council adopted a resolution certifying the PAC election. , • On November 27, 2001, the PAC held its first meeting. • On February 6, 2002, the Agency approved the Preliminary Report and authorized it to be sent to affected taxing entities. • On March 12, 2002, the Notice of Completion (NOC) for the EIR was completed, authorizing the Draft EIR to be sent to affected taxing entities and initiating the 45 -day public review period, beginning March 12, 2002 and closing April 25, 2002. • The Planning Commission held a public hearing on the Draft EIR on April 24, 2002. • On May 8, 2002 the Planning Commission is scheduled to review the Redevelopment Plan and ' Draft EIR. • On May 15, 2002 the Agency and the City Council are expected to schedule a June 19, 2002 joint public hearing on the Redevelopment Plan. ' Lodi Redevelopment Agency I-12 Report on the Plan Lodi Redevelopment Project April 2002 , • On May 22, May 29, June 5 and June 12, 2002 the notice of the June 19, 2002 joint public hearing will be published in the Lodi News Sentinel. • On June 19, 2002, the Agency and the City Council are scheduled to hold a joint public hearing on the Redevelopment Plan and Final EIR. Lodi Redevelopment Agency I-13 Report on the Plan Lodi Redevelopment Project April 2002 II. Existing Conditions A. Introduction This chapter of the Report on the Plan describes existing conditions in the Lodi Redevelopment Project Area, including existing land uses, extent of urbanization and conditions of blight. Section B of this chapter presents evidence that the Project Area is predominantly urbanized, in accordance with Sections 33320.1 and 33344.5 of the California Community Redevelopment Law (CRL). Sections D and E present adverse physical and economic conditions in the Project Area in accordance with Sections 33030 and 33031. These physical and economic conditions have caused a reduction in the proper use of the area and cannot be reversed or alleviated without the assistance of the Agency through the authority of the CRL. The CRL requires that a combination of adverse physical and economic conditions be prevalent and substantial for an area to be designated as eligible for redevelopment. The adverse conditions found in the Project Area are summarized in various exhibits throughout Chapter II and Appendices C through F, which together constitute the adverse conditions description and map required by CRL Section 33352(b). The map has been broken into submaps for ease of reading and reference since so much information is provided about the geographic spread of adverse conditions throughout the Project Area. The submaps, taken together, demonstrate that adverse conditions are substantial and prevalent, and adversely affect all of the properties in the Project Area. A survey of the Project Area, its land, building conditions, historical uses and economic conditions indicate that the Project Area contains seven of the nine statutorily defined categories of blight. The prevalence of adverse physical conditions is discussed primarily in terms of deficient or deteriorating buildings, factors inhibiting the use of land and buildings, incompatible uses, substandard lots in multiple ownership, and inadequate public improvements. The prevalence of adverse economic conditions is discussed primarily in terms of depreciated property values, high vacancy rates, declining retail sales, low commercial lease rates, hazardous materials sites, impaired investments, residential overcrowding and a high crime rate. B. Character of the Area as Predominantly Urbanized 1. Introduction Under the CRL, a proposed project area must be both urbanized and blighted. This section provides information on the extent of urbanization in the proposed Project Area. 2. Methodology Conclusions regarding the extent of urbanization in the proposed Project Area are supported by; • Extensive field reconnaissance surveys. • Analysis of legal description maps covering the Project Area. • Review of aerial photographs. • Discussions with City staff. Lodi Redevelopment Agency II -1 Report on the Plan Lodi Redevelopment Project April 2002 Following completion of field reconnaissance surveys and the assembly and analysis of available ' background information, areas fitting into the various urbanization categories were outlined on maps and a planimeter was used to calculate the total land area within each category. 3. Urbanization Requirements of the CRL ' a. Reporting Requirements Section 33344.5(c) of the CRL requires a description of the Project Area that is sufficiently detailed to ' permit a determination that a proposed redevelopment project area is predominantly urbanized. This section fulfills this requirement. b. Definition of a Predominantly Urbanized Area - CRL Section 33320.1(b) and (c) , Relevant current provisions of the CRL pertaining to a definition of "predominantly urbanized" are as follows: , (b) As used in this section, 'predominantly urbanized" means that not less than 80 percent of the land in the project area: (1) Has been or is developed for urban uses; or (2) Is characterized by the condition described in paragraph (4) of subdivision (a) of ' Section 330311; or (3) Is an integral part of one or more areas developed for urban uses which are surrounded or substantially surrounded by parcels which have been or are developed for urban uses. ' Parcels separated by only an improved right-of-way shall be deemed adjacent for the purpose of this subdivision. (c) For the purposes of this section, a parcel ofproperty as shown on the official maps of the county assessor is developed if that parcel is developed in a manner which is either consistent with zoning or is otherwise permitted under law. 4. Extent of Urbanization in the Proposed Project Area The analysis of the extent of urbanization presented on the following page clearly demonstrates that the , Project Area meets the urbanization requirements of the California Community Redevelopment Law. The analysis supporting this conclusion is based upon the three categories used in the definition of ' "predominantly urbanized" contained in Section 33320.1(b) of the CRL (see above). This analysis, presented in Table II -1, Calculation of the Extent of Urbanization, indicates that 100 percent of the ' Project Area is predominantly urbanized, thus meeting the requirement that at least 80 percent of the area be urbanized. The map presented as Figure II -1, Urbanization Map, shows the location of the various land use ' categories used in the urbanization analysis. Paragraph (4) of subdivision (a) of Section 33031 states "The existence of subdivided lots of irregular form and shape and ' inadequate size for proper usefulness and development that are in multiple ownership." Lodi Redevelopment Agency II -2 Report on the Plan Lodi Redevelopment Project April 2002 5. Area that Has Been or Is Developed for Urban Uses Nearly all the proposed Project Area has been or is developed for urban uses. This category includes approximately 1,181 acres (or 99.7 percent) of the total land within the Project Area (1,184 acres). The location of this area is shown on Figure 11-1, Urbanization Map. 6. Inclusion of Areas Characterized by the Conditions Described in Subdivision (a)(4) of Section 33031 No area that meets this description has been included for the purpose of this urbanization analysis. 7. Inclusion of Areas that Are Integral Parts of Developed Areas The proposed Project Area includes one area of approximately 3 acres (or 0.3 percent of the Project Area) that has been designated as an integral part of an area developed for urban uses. Although this area is currently undeveloped, it is surrounded by urbanized land and is an integral part of a fully urbanized industrial area. The location of this area is shown on Figure II -1, Urbanization Map. 8. Inclusion of Unurbanized Land for Planning Purposes No area that meets this description has been included for the purpose of this urbanization analysis. 9. Inclusion of Agricultural Land The Report on the Plan must discuss the extent of agricultural land in the Project Area. Section 33344.5(c)(3) of the CRL requires identification of lands in agricultural use.' There are no lands in agricultural use, as defined in Section 51201(a) and (b) of the Government Code, within the boundaries of the proposed Lodi Redevelopment Project. 2 As provided in the above cited section, "agricultural use" has the same meaning as defined in Section 51201(a) and (b) of the Government Code which states: (a) "Agricultural commodity" means any and all plant and animal products produced in this state for commercial purposes, and (b) "Agricultural use" means use of land for the purpose of producing an agricultural commodity for commercial purposes. Lodi Redevelopment Agency II -3 Report on the Plan Lodi Redevelopment Project April 2002 Table II -1 Calculation of the Extent of Urbanization Lodi Redevelopment Project Urbanization Categories Acres Percent 1. Area that has been or is developed for urban uses 1,181 99.7% 2. Area that is characterized by the conditions described in subdivision (a)(4) 0 0.0% of Section 33031 3. Area that is an integral part of an area developed for urban uses 3 0.3% Total Predominantly Urbanized Area 1,184 100% 4. Unurbanized areas included for planning purposes 0 0.0% Total Urbanized and Unurbanized 1,184 100% Urbanized and Unurbanized Acres Percent 1. Predominantly urbanized land in agricultural use 0 0% 2. Unurbanized land in agricultural use 0 0% Total Land in Agricultural Use 0 0% Lodi Redevelopment Agency I1-4 Report on the Plan Lodi Redevelopment Project April 2002 i C. Characteristics of a Blighted Area ' Relevant provisions of the California Community Redevelopment Law (CRL) describing the characteristics of a blighted area are as follows: ' Section 33030 (a) It is found and declared that there exist in many communities blighted areas which constitute , physical and economic liabilities, requiring redevelopment in the interest of the health, safety, and general welfare of the people of these communities and of the state. (b) A blighted area is one that contains both of the following: ' (1) An area that is predominately urbanized, as that term is defined in Section 33320. 1, and is an area in which the combination of conditions set forth in Section 33031 is so prevalent and so , substantial that it causes a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. (2) An area that is characterized by either of the following: (A) One or more conditions set forth in any paragraph of subdivision (a) of Section 33031 and one or more conditions set forth in any paragraph of subdivision (b) of Section ' 33031. (B) The condition described in paragraph (4) ofsubdivision (a) of Section 33031. ' (c) A blighted area also may be one that contains the conditions described in subdivision (b) and is, in addition, characterized by the existence of inadequate public improvements, parking facilities, or utilities. , Section 33031 of the CRL describes both physical and economic conditions that can be used to determine if an area is blighted and in need of redevelopment. These factors are summarized as follows: a. Adverse Physical Conditions, Section 33031(a) ' The CRL definition for physical blight is as follows: Deficient or Deteriorated Buildings , Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building code violations, dilapidation and deterioration, defective design or physical I construction, faulty or inadequate utilities, or other similar factors. 33031(a)(1) Factors that Inhibit Proper Use of Buildings or Lots ' Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. 33031(a)(2) ' Lodi Redevelopment Agency 11-6 Report on the Plan ' Lodi Redevelopment Project April 2002 Incompatible Uses Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the project area. 33031(a)(3) Substandard Lots in Multiple Ownership The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. 3303l (a)(4) b. Adverse Economic Conditions, Section 33031 (b) The CRL definition for economic blight is as follows: Depreciated Values or Impaired Investments Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of agency authority as specified in Article 12.5 (commencing with Section 33459). 33031(b)(1) Economic Indicators of Distressed Buildings or Lots Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. 33031(b)(2) Lack of Neighiborhood Commercial Facilities A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. 33031(b)(3) Residential Overcrowding or Problem Businesses Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults, that has led to problems of public safety and welfare. 33031(b)(4) A High Crime Rate A high crime rate that constitutes a serious threat to the public safety and welfare. 33031(b)(5) The analysis in Sections D and E below demonstrates that adverse physical and economic conditions exist throughout the Project Area. D. Assessment of Existing Conditions 1. Standard for Assessment The standard for the general assessment of physical and economic conditions are the provisions of the CRL pertaining to the definition of a redevelopment project area and its characteristics as cited above. 2. Definition of Survey Areas A total of eight survey areas have been defined as a means of facilitating the assembly and analysis of data and the presentation of findings. The boundaries of the survey areas are shown on Figure II -2, Building Conditions Survey Areas. Lodi Redevelopment Agency II -7 Report on the Plan Lodi Redevelopment Project April 2002 3. Field Reconnaissance Surveys and Photography Several major steps were taken to assess existing conditions in the proposed Project Area. These steps include, but are not limited to the following: a. Field Reconnaissance Surveys Leading to the Designation of Project Area Early in the year 2000, a number of field reconnaissance surveys were conducted by the consultants as a means of assessing existing conditions and the need for redevelopment in the community. Preliminary Project Area boundaries were defined and extensive discussions with city staff were held. At the end of this process, City staff recommended boundaries to the City Council for approval. In February 2000, the City Council approved the Project Area. b. Field Reconnaissance Surveys Supporting the Feasibility Report Following approval of the Project Area, additional field reconnaissance surveys were conducted to further assess the extent of adverse physical and economic conditions in the area. These conditions were then described in the Feasibility Report, Proposed Lodi Redevelopment Project, approved by the Lodi City Council on June 7, 2000. The report also provided preliminary recommendations on redevelopment project boundaries. C. Building Conditions Survey A comprehensive Building Conditions Survey was conducted in March and April 2000. The Building Conditions Survey was later updated in September 2001. Approximately eleven working days were required to complete the survey and update. More detail on the Building Conditions Survey is provided below. d. Photographic Documentation Several more days of field survey work were required to complete the photographic documentation of existing conditions in the Project Area. These photographs are presented in Appendix F: Photographic Documentation of Existing Conditions. e. Economic Analysis Since early 2000, information on observed adverse economic conditions including vacancies, indicators of disinvestment and residential overcrowding, and underutilization of properties has been gathered and analyzed to document adverse economic conditions in the Project Area. The results of this analysis are presented below. 11 1 t Lodi Redevelopment Agency II -8 Report on the Plan ' Lodi Redevelopment Project April 2002 7 E. Adverse Physical Conditions I 1. Introduction ' This section describes adverse physical conditions within the boundaries of the proposed Lodi Redevelopment Project Area. It describes'deficient or deteriorated buildings, factors that inhibit proper use of buildings or lots, the presence of incompatible uses and substandard lots, and public improvement I deficiencies. The information contained in this subsection responds directly to the characteristics of adverse physical conditions described in Section 33031(a) of the CRL (as previously described in Section C, Characteristics of a Blighted Area). Adverse physical conditions found in the proposed Project Area fall within the four categories of physical ' blight as specified in the CRL: • Deficient or deteriorated buildings resulting in unsafe and unhealthy condition. , • Factors that inhibit proper use of buildings. • Incompatible uses. • Substandard lots. ' 2. Earthquake Hazards a. Introduction No active earthquake faults are known to cross the proposed Project Area. However, ground shaking from an earthquake outside the Project Area may cause damage to structures inside the Project Area. ' Earthquake damage may be more severe due to liquefaction! As discussed below, the entire Project Area is susceptible to liquefaction. b. Soils Conditions ' The Project Area is underlain by thick alluvium and includes unconsolidated and semi -consolidated material. The Project Area could experience strong seismic groundshaking and related effects (e.g., ' liquefaction) in the event of an earthquake on other faults in the region. i 3 Draft EIR for the City of Lodi General Plan, Jones & Stokes Associates, Inc. I Lodi Redevelopment Agency II -10 Report on the Plan ' Lodi Redevelopment Project April 2002 C. Potentially Hazardous Buildings Unreinforced Masonry Buildings Unreinforced masonry buildings have proved to be particularly hazardous during an earthquake. Such buildings are typically constructed of brick, hollow tile, or concrete block and often lack the structural strength to resist a moderate to strong earthquake. A post earthquake assessment of buildings after the 1989 Loma Prieta Earthquake confirmed the poor performance of Unreinforced masonry buildings: Unreinforced masonry (URDU buildings have once again proven -to be one of the most hazardous forms of building construction. Many of these structures collapsed, either partially or completely. Collapse of exterior walls also led to damage of neighboring structures. Seismically upgraded URM buildings performed substantially better than non -retrofitted buildings.' Identification and Strengthening of Unreinforced Masonry Buildings The State of California now requires the identification of unreinforced masonry buildings. Counties, cities and towns are also required to take steps to ensure the reinforcement of such buildings to a condition that provides a reasonable level of safety during a seismic event. The City of Lodi is actively pursuing such a program and is using a standard that is based upon the State Historical Building Code and the retrofitting standards adopted by the City of Los Angeles. To date the Lodi City Hall and the Hotel Lodi have been retrofitted in accordance with these standards. Unreinforced Masonry Buildings in the Proposed Project Area A recent field reconnaissance survey has identified approximately 66 unreinforced masonry brick buildings in the downtown area. Many of these buildings are likely to be unsafe in the event of a major earthquake. The locations of these buildings are shown on the map presented as Figure H-3, Location of Unreinforced Masonry Buildings, Downtown Lodi. A list of these buildings is presented as Appendix C. Specific Examples of Potentially Hazardous Unreinforced Masonry Buildings The photographs presented in Appendix F, Photographic Documentation, show a number of unreinforced masonry brick buildings that are described as potentially hazardous, unsafe or unhealthy.s These include the photographs presented on pages S (lower photograph), 6 (upper and lower photographs), 7 (upper and lower photographs), 8 (upper photograph), 26 (upper photograph), and 28 (upper photograph). 3. Deficient or Deteriorated Buildings a. Age of Buildings The proposed Project Area has, within it boundaries, a wide range of building types and ages. Within downtown, for example, there are several large commercial and hotel buildings that date back to the late 19th Century. These buildings, located mainly on the blocks facing Main and Sacramento Streets, were oriented to the railroad and are more than 100 years old. Most of these buildings are of unreinforced 4 The October 17, 1989 Loma Prieta Earthquake, Dames & Moore, 1989 5 Note: the descriptions contained in the captions for the photographs have been reviewed and approved for accuracy by the City Community Development Department. Lodi Redevelopment Agency II -11 Report on the Plan Lodi Redevelopment Project April 2002 masonry brick construction and are considered to be potentially hazardous in the event of a major earthquake. Many suffer from deferred maintenance and neglect. Badly eroded mortar and cracks in brick walls raise concerns about the structural stability of these old, often historically interesting buildings. Later development in downtown began to focus on School Street where most of the remaining large buildings were built in the first part of the 20th Century during the years 1900 through 1930. A number of these building are also of unreinforced masonry brick construction and, because of this, are potentially hazardous in the event of a major earthquake. Most of these buildings are more than 75 years old. Many of these buildings also suffer from deferred maintenance and neglect. Although building in downtown slowed during the depression that followed the economic collapse of 1929, a small number of buildings were added during the 1930s. These additions were followed by larger commercial and bank buildings, mainly of one-story construction, in the period following World War H. Some of the buildings built during this period are now more than 50 years old. Most of these buildings are in relatively good condition. Many of oldest residential buildings are located in the eastern part of the Project Area. These include a scattering of architecturally and historically interesting Victorians, many homes built during the 1920s and 1930s, and some homes built in the post World War lI era. Thus, residential buildings in the proposed Project Area typically range in age from 40 years to more than 100 years old. A large number of these residences suffer from deferred maintenance and neglect. 11 Lodi Redevelopment Agency 1I-12 Report on the Plan ' Lodi Redevelopment Project April 2002 • • - .=-=-�ffffrrr.������ =m LOCUST ST. u f [ rn Oi C1 V H ELM ST. CITY HALL PINE ST, 1 OAK ST. ui a Z W W J fl WALNUT ST. LODI AVE. �--, Historic maos. Sanborn Man Comoanv. 1926.1960 Locations verified in field, April 2002, John S. Dykstra & Associates �=j LOCUST ST. N QZ g N 0 t- rn ELM ST. N�EIE ff L PINE ST. t0 E ic [fl Legend - APPROXIMATE LOCATION, UNREINFORCED MASONRY BUILDINGS OTOTAL NUMBER OF BUILDINGS IN BLOCK N 0 500 l FEET CITY OF LODI REDEVELOPMENT PLAN ADOP'T'ION FIGURE II -3: LOCATION OF UNREINFORCED MASONRY BUILDINGS, DOWNTOWN LODI 1 • Small Deteriorated Residential Units Located on Narrow Alleys. These units are to be found i b. Field Observations Several field reconnaissance surveys conducted in 2000, 2001 and 2002 identified a wide range of ' adverse physical conditions in the proposed Project Area. These conditions, which are described below, ' provide substantial evidence of physical blight in terms of the redevelopment project eligibility requirements of the California Community Redevelopment Law. These conditions include: ' • Deteriorated Residential Structures. Such conditions include deteriorated roofing, siding, , foundations, stairs and decks, peeling paint, etc. Many of these residences are in a generally run-down condition. These conditions are to be found at various locations in the proposed Project Area. • Unoccupied, Dilapidated, and Abandoned Residential Structures. A number of these residences are located in the proposed Project Area. In many cases deterioration is so extensive that it is likely that the cost of repairs and code compliance would exceed the value of the building. • Residential Structures with Informal and Potentially Substandard Construction. Parts of , structures affected by such conditions include foundations, cripple walls, walls, decks, stairs, roofs, electrical wiring, plumbing, etc. These conditions are found in a very large number of residences in the area. • Small Deteriorated Residential Units Located on Narrow Alleys. These units are to be found generally in the oldest residential neighborhoods bounded by Lockeford Street, Cherokee Lane, Vine Street and Stockton Street. • Structurally Unsound Residential Structures. These include residences with inadequate ' foundations or other structural problems. Some may be unsafe to occupy. • Deteriorated Commercial Structures. Such structures are concentrated mainly in downtown on Sacramento Street or along the Cherokee Lane commercial corridor. , • Old, Badly Deteriorated Hotel Buildings in Downtown on Main and Sacramento Streets. • An Abandoned Theater Building on Lodi Avenue. • A Large, Dilapidated and Abandoned School on Cherokee Lane. This building, the old Lincoln School, is potentially of architectural and historic interest. • Unreinforced Masonry Brick Buildings of Questionable Structural Stability. Sixty-six of these , buildings have been identified in the downtown area. Conditions observed in these buildings include serious mortar and brick erosion and cracking in bearing wails. Many are unoccupied or underutilized. Several of these are of architectural and historical importance and should be, if at all possible, retrofitted, rehabilitated, and put to economic use. ' • Commercial Structures with Informal and Possibly Substandard Construction. These conditions include informal additions and repairs. Many structures provide evidence of such conditions. • Unoccupied and Apparently Abandoned Commercial Structures. Further evidence of these observed conditions will be found in Appendix F, Photographic Documentation. C. Building Conditions Survey A comprehensive Building Conditions Survey was conducted to evaluate building conditions in the proposed Project Area. , Methodology The Building Conditions Survey was conducted primarily from an automobile. However, in some ' locations, such as in downtown Lodi, the survey was conducted on foot. Interior inspections were generally not conducted. However, in some cases where access to the interior was appropriate, informal interior inspections were conducted. Lodi Redevelopment Agency II -14 Report on the Plan Lodi Redevelopment Project April 2002 Every major building was rated by the consultant on a scale of 1 (worst condition) to 5 (best condition). Some buildings required a second examination. Appropriate changes were made to ratings when warranted. Professional Opinion The building condition ratings represent the professional opinion of the consultant (John Dykstra). Qualifications of the Consultant The qualifications of the consultant include 4 years as a real estate appraiser and negotiator (commercial and residential properties), 12 years as a redevelopment planner and administrator (San Francisco Redevelopment Agency), 22 years in private practice (redevelopment planning, implementation, and existing conditions assessment), and testimony in court and before public bodies as an expert witness (on redevelopment plan adoption matters and existing conditions). Standards and Criteria The general standards and criteria used in assessing the physical condition of buildings are summarized in Table II -2, Building Conditions Assessment, presented on the following page. Building Condition Survey Results Building condition ratings for individual buildings are tabulated, summarized, and presented for both the proposed Redevelopment Project Area as a whole and for the eight survey areas. To protect the privacy of property owners and building occupants, ratings for individual buildings are not reported. Building conditions in the proposed Project Area range all the way from excellent to dilapidated. Some buildings are new, and many other buildings have been rehabilitated to a very high standard. However, many buildings in the area were built years ago, without benefit of building inspection, and a large number of these suffer from age and neglect. As a result, a relatively high proportion of substandard and deteriorated buildings can be found in the area. A total of 3,382 buildings were evaluated. Of this total, 850 (or 25 percent) were found to be in the top three building condition categories (which range from category 3, generally good condition to category 5, generally excellent condition). The likely cost of correcting deficiencies in these buildings ranges from "significant" (category 3) to "minor to low" (category 5). Nevertheless, 2,532 buildings (or 75 percent) were found to be in the lower two rating categories, where extensive physical deficiencies are present. The cost of correcting these deficiencies is likely to be high, and economic rehabilitation of many of these buildings could be both difficult and expensive. The results of the Building Condition Survey for the proposed Project Area are summarized in Table II -3, Building Conditions Survey Results, Total Area. A map summarizing the average building condition ratings for each of the eight survey areas is presented as Figure II4, Average Building Conditions by Survey Area. These results clearly indicate that there is a prevalence of serious building deficiencies in each of the eight survey areas. Lodi Redevelopment Agency 11-15 Report on the Plan Lodi Redevelopment Project April 2002 Table 11-2 Building Conditions Assessment Specific Standard: The provisions of the California Community Redevelopment Law pertaining to blight General Standard: The relative cost of correcting building deficiencies, code compliance problems, and seismic safety problems to a degree sufficient to ensure a relatively long- term Dhvsical and economic life (i.e.. 20-40 vears) I 2 I Extensive physical/structuralI High I Difficult I deficienciesz 3 General good condition, some Significant Possible deficiencies present3 4 Relatively few deficiencies present" Low to moderate Relatively easy 5 General excellent condition' Minor to low None required 1. Typical conditions present include Major Adverse Physical Conditions or a significant combination of Other Adverse Physical Conditions. Nearly all of these buildings have conditions that make them unsafe or unhealthy for occupancy 2. Typical conditions present include a number of Other Adverse Physical Conditions or significant cumulative deferred maintenance. Many of these buildings have conditions that make them unsafe or unhealthy for occupancy. 3. Typically some Other Adverse Physical Conditions are present. 4. Typically few Other Adverse Physical Conditions are present. 5. Typically no Other Adverse Physical Conditions are present. 6. To the "General Standard" set forth above. 7. Without redevelopment assistance. Copyright: John B. Dykstra & Associates 2002 Major Adverse Physical Conditions ■ General dilapidation (very serious deterioration of entire structure or major parts thereof) ■ Apparent abandonment (vandalized or boarded up buildings) ■ Structural failure (tracking or subsided foundations, sagging walls or roofs, etc.) ■ Structural weakness (buildings without adequate foundations, substandard construction, unreinforced masonry walls, etc.) Other Adverse Physical Conditions ■ Potential seismic weakness ■ Deferred maintenance and neglect ■ Broken windows ■ Peeling or faded paint ■ Sagging porches ■ Dry rot in walls, window frames, door frames, doors, roof rafters, and trim ■ Deteriorated, damaged, poorly repaired, or excessive layers of roofing materials ■ Cracks or loose bricks in chimneys ■ Deteriorated, broken, or loose siding materials ■ Deteriorated or broken stucco walls ■ Rusted, deteriorated, or missing roof drainage gutters or down spouts ■ Faulty wiring or plumbing ■ Old and possibly substandard and hazardous electrical service ■ Eroded mortar or loose bricks in masonry walls ■ Informal or substandard construction Relationship between Building Conditions and Health and Safety Problems There is a strong relationship between the condition of buildings documented in the Building Conditions Survey and health and safety problems in these same buildings. Buildings rated in category 1 (worst condition) are buildings characterized by adverse conditions such as abandonment, dilapidation, very bad deterioration, potentially hazardous structural problems (deteriorated, sagging, or failing wood, concrete, or brick walls, for example), very extensive deferred maintenance, or a combination of problems, which, taken in their totality, provide strong evidence of physical blight and the presence of health and safety hazards. Buildings rated in category 2 are characterized by many of these same conditions, but to a lesser degree. These conditions are depicted and described extensively in the 87 photographs presented as Appendix F, Photographic Documentation. Based upon the exterior Building Conditions Survey described above and in the professional judgement of the consultant, it is possible to conclude that nearly all of the buildings rated as building conditions category 1 and most of buildings rated as building conditions category 2 have conditions that render them, to one degree or another, unsafe or unhealthy as places to live or work. Specific Examples of Buildings with Potential Safety or Health Problems The presence of potential safety and health problems in buildings within the proposed Project Area is documented extensively in Appendix F, Photographic Documentation. These problems are shown in the photographs presented on pages 4 (lower photograph), 5 (upper and lower photographs), 6 (upper and lower photographs), 7 (upper and lower photographs), 8 (upper photograph), 11 (lower photograph), 12 (lower photograph), 14 (upper and lower photographs), 16 (lower photograph), 20 (upper photograph), 21 (upper and lower photographs), 23 (upper and lower photographs), 24 (upper photograph), 26 (upper photograph), 28 (upper photograph), 29 (lower photograph), 30 (upper photograph), 31 (upper photograph), 32 (upper and lower photographs), 33 (lower photograph), 34 (upper and lower photographs), 35 (lower photograph), 37 (lower photograph), 39 (lower photograph), 40 (lower photograph), 42 (upper photograph), and 43 (upper and lower photographs). Evidence of Code Compliance Problems Further evidence of health and safety problems is provided in the summary of Community Improvement Case Activity presented as Appendix E, List of Code Compliance Problems. This summary identifies these enforcement actions by the following categories: (1) dangerous buildings, (2) housing problems, (3) nuisances, (4) zoning violations, and (5) miscellaneous. The locations of these enforcement actions are shown on Figure U-5, Code Compliance Problems. Lodi Redevelopment Agency 11- 17 Report on the Plan Lodi Redevelopment Project April 2002 Table II -3 , Lodi Redevelopment Project ' BUILDING CONDITIONS SURVEY RESULTS I TOTAL AREA Average Building Conditions Ratings: 2.01 I 2.02 2. 1.94 1 . 9 8 �: �!1RPRI ugm"'!,:; • 2. 4. Factors that Inhibit the Proper Use of Land and Buildings A review of available maps and extensive field reconnaissance surveys has permitted the identification of several factors that inhibit the proper use of land and buildings. These factors, which are generally prevalent throughout the area, include: • Properties that Suffer from Soils and Groundwater Contamination. The extent of this contamination is shown on Figure II -6, Limits of Identified Soils and Groundwater Contamination Plumes and Figure II -7, Limits of Major Soils and Groundwater Contamination Plumes presented on the following pages. As is commonly known, the presence of subsurface contamination raises concerns about health and safety, makes properties less desirable, and ultimately, adversely affects property values. In the case of Lodi, it has also led to the shutdown of one city owned water well. • Properties that Are Adjacent to Deteriorated, Vacant, or Abandoned Buildings. Deteriorated, vacant, or abandoned buildings are present at various locations in the proposed Project Area. These conditions adversely affect adjoining properties and when vacancies are present, vandalism and illegal occupancy frequently occur. For specific examples of deteriorated, vacant, or abandoned buildings reference should be made to the following photographs presented in Appendix F, Photographic Documentation, on pages 8 (upper photograph), 12 (lower photograph), 14 (upper and lower photographs), 16 (lower photograph), 20 (upper and lower photographs), 21 (upper photograph), 22 (upper and lower photographs), 23 (upper and lower photographs), 27 (lower photograph), 28 (upper photograph), 29 (lower photograph), 30 (upper and lower photograph), 31 (upper and lower photograph), 32 (upper and lower photographs), 33 (lower photograph), 39 (lower photograph) and 43 (upper and lower photographs). • Lots of Small Size or Irregular Shape that Are Difficult to Develop. Such lots are scattered throughout the proposed Project Area. • Properties that Are Adversely Affected by a Location Next to the Railroad. • Commercial and Residential Lots Lacking Adequate Off -Street Parking. • Commercial Uses along Lodi Avenue, Cherokee Lane, and Kettleman Lane that Are Adversely Impacted by Fast Moving Traffic. Lodi Redevelopment Agency II -21 Report on the Plan Lodi Redevelopment Project April 2002 r 5. Incompatible Uses A number of incompatible uses have been identified in the proposed Project Area: • Residential Uses in Proximity to the Railroad. Such uses are to be found along Sacramento and Main Streets. They may be adversely affected by noise and vibration. • Residential Uses Adversely Impacted by Heavy, Fast Moving Traffic. Although adverse traffic impacts may be found at various locations in the proposed Project Area, the area of greatest impact is Lodi Avenue between Stockton Street on the west and Cherokee Lane on the east (see Figure II -8, Incompatible Uses, Adverse Impact of Traffic on Residences). Here the traffic is both heavy and fast moving. Residences on both sides of the street are adversely affected. Many of these homes are poorly maintained and several are dilapidated. In general the condition of homes along this street is much worse than the condition of homes on quiet streets in surrounding neighborhoods. • Residential Uses in Close Proximity to Active Industrial Uses. Such uses as these are located on Sacramento Street between Lodi Avenue and Kettleman Lane (see Figure II -9, Incompatible Uses, Adverse Impact of Industrial Uses on Residences). Adjacent residential uses are frequently affected by industrial fork lift and truck movements which produce noise and safety hazards. In general, the condition of occupied homes along Sacramento Street in proximity to active industrial uses is much worse than the condition of homes one block to the west along School Street. • Commercial and Residential Uses Located Adjacent to Dilapidated, Vacant, or Abandoned Properties. (see discussion above in Subsection 4, Factors that Inhibit the Proper Use of Land and Buildings) Lodi Redevelopment Agency 11-24 Report on the Plan Lodi Redevelopment Project April 2002 Nis MINNIE gill ■:�I�000 .. , ---�. „,_�.� ��■n �■� ►�■■��i^11� !ice W 3 W Y Y O w v SOURCE: Field Reconnaissance Survey, John B. Dykstra d Associates, April Z(Iu2 Legend -RESIDENTIAL PROPERTIES ADVERSELY IMPACTED BY TRAFFIC ON LODI AVENUE N o T 500 I FEET CITY OF LODI REDEVELOPMENT PLAN ADOPTION FIGURE II -8: INCOMPATIBLE USES, ADVERSE IMPACT OF TRAFFIC ON RESIDENCES ■ SOURCE: Field Reconnaissance Survey, John B. Dykstra d Associates, April Z(Iu2 Legend -RESIDENTIAL PROPERTIES ADVERSELY IMPACTED BY TRAFFIC ON LODI AVENUE N o T 500 I FEET CITY OF LODI REDEVELOPMENT PLAN ADOPTION FIGURE II -8: INCOMPATIBLE USES, ADVERSE IMPACT OF TRAFFIC ON RESIDENCES LODI AVE Ei® 1 I _ a I O ST. N I J m O N � U zi IV 41 CI ® "I a N � I F a Z 4 R >3 oZ d Gj 3 QI I �I o I . I NI i ,I a' I Legend _ RESIDENTIAL PROPERTIES ADVERSELY I IMPACTED BY ACTIVE INDUSTRIAL USES N KETTLEMAN LN. 0 8D0 S I � FEET SOURCE: Field Reconnaissance Survey, John B. Dykstra & Associates, April 2002 CITY OF LODI REDEVELOPMENT PLAN ADOPTION FIGURE II -9: INCOMPATIBLE USES, ADVERSE IMPACT OF INDUSTRIAL USES ON RESIDENCES 11 6. Substandard Lots in Multiple Ownership The economic use and proper and timely development of property in the proposed Project Area is affected by formal and informal subdivision practices that have, over the years, produced a large number of lots that are, or are likely to be, substandard to economic development. Areas adversely impacted by the presence of such lots include, but are not limited to: • Small and Substandard Residential Lots. In many cases these lots front on alleys in the eastern part . of the Project Area in the blocks bounded by Lockeford Street, Cherokee Lane, Vine Street and Stockton Street. • Small Commercial Lots in Downtown along Sacramento and School Streets. • Small, Difficult to Develop Commercial Lots along Cherokee Lane. These parcels are shown on the map presented as Figure 1-1, Redevelopment Project Area. 7. Public Improvement Deficiencies Although the California Community Redevelopment Law no longer permits the use of deficient public improvements as a determining, or "stand alone" blighting factor, such deficiencies can still be considered when it can be demonstrated that they contribute to physical and economic blight in a project area. The Project Area, and the East Side neighborhood in particular, contains aging, obsolete and inadequate wastewater utilities. The City's wastewater collection system is reaching an age in which older lines (primarily in the East Side) need to be replaced. Many of these lines are concrete pipes, which suffer from chemical corrosion and do not have capacity for the present demand.b Extensive field reconnaissance surveys have permitted the identification of a number of public improvement deficiencies that contribute to blight in certain areas of the proposed Project Area. These deficiencies include: • Deteriorated Pavement Surfaces. These conditions were found at various locations in the proposed Project Area. • Unpaved or Poorly Paved Alleys. • Narrow Alleys that Provide Substandard Access for Small, "Back Lot" Houses or Cottages. • Aging and Frequently Inadequate Storm Drainage Systems. • Lack of Public Community Facilities, such as Libraries and Community Centers in Residential Areas. • Parking Inadequacies Due to the Poor Location of Parking Resources in Relationship to Parking Demand. For further evidence of these conditions, reference should be made to the photographs contained in Appendix F: Photographic Documentation of Existing Conditions: e City of Lodi Financial Plan and Budget, 1999-2001. Lodi Redevelopment Agency II -27 Report on the Plan Lodi Redevelopment Project April 2002 F. Economic Conditions that Cause a Reduction of, or Lack of, Proper Use of the Proposed Project Area 1. Introduction Economic blight is evidenced in the downtown by store frontages with "for rent" signs or paper in the , windows, despite considerable public and private investment in the streetscape. In the railroad oriented ' industrial corridor, economic blight is evidenced by abandoned buildings and "property for rent" signs on , warehouses. commercial areas in Lodi. Shopping centers along Kettleman Lane to the west of the Project Area ' Adverse economic conditions found in the proposed Project Area fall within four categories of economic , blight as specified in the CRL and are generally described as: • Depreciated values or impaired investments. , • Economic indicators of distressed buildings or lots. • Residential overcrowding. • A high crime rate. , a. Methodology Economic blighting conditions were evaluated under the blight definitions contained in the CRL through , the following methods: • Field surveys of physical and economic conditions in the Project Area. • Review and analysis of technical documents and data from public and private agencies. ' • Discussions with government staff and persons knowledgeable about the area. , Refer to Appendix A for a complete list of documents and data sources used in the economic blight documentation. b. Summary of Observed Economic Blight Deteriorated residences, boarded -up commercial and residential buildings, vacancies, and other observed physical and economic conditions provide substantial evidence of depreciated values and impaired investments. Depreciated property values and impaired investments are evident in the four commercial areas within the proposed Project Area: Downtown Lodi, Cherokee Lane, Lodi Avenue and Kettleman Lane. Economic conditions in these commercial areas were historically linked to the railroad when it was the focus of economic activity. The rail corridor has become almost devoid of commercial ' activity since new modes of transportation have replaced trains. Downtown Lodi is not as strong as other commercial areas of the City outside the Project Area. The , deteriorated appearance of a number of the Downtown's buildings and the lower level of retail activity indicate that shoppers prefer to shop in other commercial areas (see retail sales tax analysis). , Commercial lease rates are tow in the Downtown and along Cherokee Lane compared to other commercial areas in Lodi. Shopping centers along Kettleman Lane to the west of the Project Area command significantly higher rents than the Downtown. Commercial rents are significantly lower in the , area east of the Union Pacific railroad tracks, where properties are more deteriorated, than they are west of the railroad tracks. Lodi Redevelopment Agency I1-28 Report on the Plan Lodi Redevelopment Project April 2002 , Disinvestment has been a problem along Cherokee Lane since the 1980s, when Highway 12 (Kettleman Lane) became the preferred location for commercial development, especially in the southwest portion of the City. Cherokee Lane was Lodi's first highway commercial corridor, when commercial businesses moved there from the Downtown in the 1960s to serve highway traffic. Highway 99 now bypasses Cherokee Lane, channeling highway traffic away from commercial uses on Cherokee Lane. The Cherokee Lane corridor reflects this past, with a mix of auto sales and services, motels, drive-in restaurants, liquor stores, and the K-Mart/Orchard Supply shopping center. Auto sales, services and lodging, oriented to highway traffic, remain the most prominent forms of development along the street. Adverse economic -conditions observed during field reconnaissance surveys include, but are not limited to, the following: • Deteriorated or poorly maintained commercial properties that provide evidence of impaired investments and depreciated property values. Such buildings are found at various locations in the Downtown on Sacramento Street, and along Cherokee Lane. • Vacant ground floor commercial spaces that are common in buildings located on the west side of North and South Sacramento Street between West Elm and West Oak Streets and on the north side of West Pine Street between North Sacramento and School Streets. • Vacant second floor spaces in the Downtown in buildings that lack elevators and are poorly served by substandard stairways. • Underutilized properties. • Large number of lots that are likely to be substandard to economic development. • Outmoded, obsolescent buildings, such as the abandoned theater building on Lodi Avenue. • Commercial buildings with marginal occupancy. These buildings, which are found throughout the downtown and industrial areas, may not be delivering reasonable economic return to their owners or investors. • Deteriorated, dilapidated and abandoned residences. Such buildings, many of which are located in the older residential area, often provide evidence of impaired investments. For further evidence, refer to Appendix D: Building Conditions by Survey Areas and Subareas, and Appendix F: Photographic Documentation of Existing Conditions. 2. Depreciated Values or Impaired Investments This section documents the presence in the proposed Project Area of blighting conditions described in CRL Section 33031(b)(1), including depreciated or stagnant property values, impaired investments and properties containing hazardous materials. This section documents the presence of depreciated or stagnant property values or impaired investments in the Project Area by reporting on the: • Poor economic performance of retail businesses. • Residential sale prices below comparable city properties. • Lodging establishments with lower revenues per room as compared to establishments outside the Project Area. • Presence of hazardous materials. a. Poor Economic Performance of Retail Businesses Stagnant sales tax receipts in the Project Area, including the commercial subareas of Downtown, East Kettleman Lane (the north side between Sacramento Street and Central Avenue), West Lodi Avenue (to Ham Lane) and Cherokee Lane (divided between north and south subareas), are an indicator of Lodi Redevelopment Agency 1I-29 Report on the Plan Lodi Redevelopment Project April 2002 depreciated values and impaired investments within the Project Area. Many retail businesses in the Project Area experienced declining retail sales between 1994 and 2001. The retail sales analysis is based on retail sales tax receipts data for retail businesses in the Project Area, the City of Lodi and San Joaquin County for the six year period from FY 1994/95 to FY 2000/01.' During the past six years, sales tax receipts have grown by 0.6 percent when adjusted for inflation in the Project Area, while they have grown 2.5 percent in the City of Lodi and 4.4 percent in San Joaquin County. Sales tax receipts in'the Project Area represented about 41 percent of total sales tax revenues collected in Lodi.' Table II -4 Sales Tax Receipts Comparison of Lodi Commercial Areas 6 -Year Trend (Adjusted for Inflation) Fiscal Year Ending Sales Tax Receipts Average Annual Percent Change 1994/95 2000/01 Project Area Total $2,796,953 $2,893,426 0.6% City of Lodi Total $51943,039 $6,992,051 2.5% San Joaquin County $45,412,243 $60,737,389 4.4% Source: Historical sales tax revenue for all outlets based on data provided by HdL Coren and Cone, November 2001. The proposed Project Area generated retail sales tax receipts of about $2.8 million in 2001.9 Most of the retail sales outside the Project Area are generated by businesses along West Kettleman Lane in Sunwest Plaza, Target Center, and Vineyard Shopping Center, and on Ham Lane in Lakewood Mall. Most of the retail sales in the Project Area are generated by businesses in Downtown, and along East Kettleman Lane, North and South Cherokee Lane and West Lodi Avenue. The five commercial subareas generated about $1.8 million in sales tax revenues, while all commercial establishments in the Project Area generated approximately $2.8 million according to sales tax data provided by HdL Coren and Cone (HdL). All five retail areas had retail sales trends below the City and County between 1992 and 2001. Table 11-5 shows trends in retail sales growth for all six retail areas in the Project Area. During the past nine years, Cherokee Lane is the only commercial subarea where sales tax receipts grew in the Project Area. Sales tax receipts in North Cherokee Lane grew by only 0.6 percent, and receipts in South Cherokee Lane grew by only 0.2 percent, less than one-quarter the City rate. As noted above in Section E.3.b Field Observations, Cherokee Lane and the Downtown, especially Sacramento Street, also contain a significant number of commercial structures that exhibit physical deterioration and possibly substandard construction, or are unoccupied or abandoned. Cherokee Lane is also adversely affected by small lots in multiple ownership that are difficult to develop. ' Based on analysis of sales tax data for 1994 to 2001 provided by HdL Coren & Cone for all businesses in Lodi ' The sales tax trend analysis was calculated using constant 2001 dollars to adjust for inflation. The CPI for all urban consumers for the San Francisco/Oakland MSA for the seven-year period between 1994 and 2001 was used to adjust the sales tax to 2001 constant dollars. 9 Based on the number of businesses that paid sales tax during the first quarter of 2001. .1 Ci 11 11 -1 LJ F U Lodi Redevelopment Agency 11-30 Report on the Plan ' Lodi Redevelopment Project April 2002 Table II -5 Historical Sales Tax Revenue to City by Subarea Lodi Redevelopment Project Location 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 Average Annual % Change East Kettleman Lane $37,179 $35,854 $35,338 $34,377 $32,132 $31,858 $32,565 $32,855 $36,969 -0.1% Downtown $413,130 $405,220 $374,322 $371,815 $367,415 $365,136 $367,607 $371,974 $364,195 -1.6% $247,381 West Lodi Avenue $265,878 $224,357 $224,825 $231,582 $217,540 $209,324 $207,728 $186,197 -4.4% South Cherokee Lane $684,031 $694,762 $646,605 $676,699 $6331124 $643,994 $654,959 $681,295 $719,563 0.6% North Cherokee Lane $532,317 $472,665. $398,016 $436,690 $439,052 $422,610 $384,275 $466,258 $540,277 0.2% Source: Historical sales tax revenue for all outlets based on data provided by HdL Coren and Cone Retail Sales Tax Data, November 2001, Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project April 2002 b. Housing Values real estate service, housing values in the East Side are substantially lower than other parts of the City. , Single Family Home Sales The majority of the sales in the proposed Project Area occurred in the oldest and largest residential area, the East Side neighborhood, which contains housing built from the late 19th century onward. The , East Side neighborhood was a modest, yet stable, single-family neighborhood. Starting in the 1970s and ' continuing through the mid-1980s, however, the area experienced a significant increase in the conversion of single family homes to multifamily housing. The quality of this multifamily development was , generally poor, reducing the value of nearby owner -occupied, single family properties. This trend started a process of disinvestment and instability, with single family houses converted into rental properties as the number of apartments increased. In addition, the increase in occupancy has stressed the I neighborhood's aging public utility and services systems. According to local residential real estate brokers and information obtained from DataQuick, an internet real estate service, housing values in the East Side are substantially lower than other parts of the City. , Homes in East Side are averaging between $49,350 and $132,000 compared to $140,928 and $220,545 for similar homes in the Lodi vicinity. The price differential is the result of a variety of factors including deteriorated housing conditions, the poor quality of existing multifamily development, overcrowding, ' decreased property maintenance, as well as constrained street capacity and City sewer and water facilities. Housing values in the proposed Project Area are substantially lower than in the rest of Lodi and the , surrounding area. The average listing price for one to four bedroom homes in the Project Area is about $98,860 which is about 40 percent less than the $165,947 average price for homes in the remainder of Lodi and the surrounding area. , As shown below in Table II -6, the median sale price of homes in the Project Area was 35 percent less than comparable homes in the rest of the City.10 This analysis is based on 473 single family home sales in Lodi in 2001, of which 93 were in the Project Area. The gap between median home values generally increases with the size of homes, with the exception of two bedroom homes. There were no comparable sales of one bedroom homds outside the Project Area. Two bedroom homes sold for 27 percent less in the Project Area compared to other areas of the City, three bedroom homes sold for 24 percent less, and four bedroom homes sold for 32 percent less. n 10 DataQuick residential sales data included all homes. These sections analyzed only 1 to 4 bedroom homes, because no larger ' homes were sold in the Project Area in 2001. Lodi Redevelopment Agency I1-32 Report on the Plan , Lodi Redevelopment Project April 2002 Table II -6 Sales Prices for Single Family Homes City of Lodi and Surrounding Area Source: DataQuick Online Real Estate Data, 2001. Single family homes sold in the Lodi vicinity in 2001. Graph II -1 compares the median sales price of single family homes in 2001 for the Project Area with the rest of the City outside the Project Area. Multifamily Unit Sales As previously noted, the Project Area contains poor -quality multifamily housing, in addition to higher density housing. Values for multifamily housing are substantially lower in the Project Area than in the rest of the City. This analysis is based on 79 sales of multifamily properties in the Lodi vicinity during 2001. As shown in Graph II -2, the median sales price of duplexes in the Project Area was $105,000, which is about 35 percent less than the $160,794 median price in the remainder of Lodi. For triplexes, the median sales price was $141,500, which is about 20 percent less than the $177,500 median in the Lodi vicinity. Lodi Redevelopment Agency II -33 Report on the Plan Lodi Redevelopment Project April 2002 Pro'ect Area Lodi Vicinity No. Median Sales Price No. Median Sales Price One Bedroom 10 $47,500 0 N/A Two Bedroom 55 $99,500 105 $136,0 0 Three Bedroom 26 $123,000 236 $162,750 Four Bedroom 2 $132,000 39 $195,000 Total 93 $101,000 380 $156,000 Source: DataQuick Online Real Estate Data, 2001. Single family homes sold in the Lodi vicinity in 2001. Graph II -1 compares the median sales price of single family homes in 2001 for the Project Area with the rest of the City outside the Project Area. Multifamily Unit Sales As previously noted, the Project Area contains poor -quality multifamily housing, in addition to higher density housing. Values for multifamily housing are substantially lower in the Project Area than in the rest of the City. This analysis is based on 79 sales of multifamily properties in the Lodi vicinity during 2001. As shown in Graph II -2, the median sales price of duplexes in the Project Area was $105,000, which is about 35 percent less than the $160,794 median price in the remainder of Lodi. For triplexes, the median sales price was $141,500, which is about 20 percent less than the $177,500 median in the Lodi vicinity. Lodi Redevelopment Agency II -33 Report on the Plan Lodi Redevelopment Project April 2002 $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Graph II -1. Median Sale Price of Single Family Homes in 2001 by Number of Bedrooms City of Lodi One Bedroom Two Bedroom Three Bedroom Four Bedroom E3 Project Area ■ City Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project April 2002 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Lodi Redevelopment Agency Lodi Redevelopment Project Graph II -2 Median Sale Price of Multifamily Units in 2001 City of Lodi Duplex Triplex ........... . 09 Project Area, ■ City Report on the Plan April 2002 C. Lodging Establishments Motels were located along Cherokee Lane when it was the main north—south artery of the old .Highway 99 ' through Lodi. Since the new Highway 99 bypass, many motels have been converted to multifamily dwellings, although their rooms were not designed for permanent residence. The former motels provide essential affordable housing for low-income and migrant residents. However, the cost to maintain or ' upgrade these structures to comply with health code requirements for permanent dwelling units makes ' their use as affordable housing challenging over the long term. As a result, many of these properties suffer from deterioration and contribute to unsafe and unhealthy conditions for their occupants. , Based on data obtained from the City of Lodi Finance Department, sixteen of the eighteen lodging establishments in the City of Lodi are located in the proposed Project Area. Of these sixteen, one has been closed since early 1998 due to fire damage, and seven have been converted to permanent residences. In ' addition, four of the sixteen establishments have both permanent and transient occupancy within the same motel. (The City defines hotel transient occupancy as occupancy for 30 days or less.) ' Facilities outside the Project Area tend to offer a greater variety of services than the smaller motels in the Project Area. One is a 95 -room Holiday Inn Express, which has a pool, sauna, whirlpool, exercise room, and a coin laundry facility for guests. The other facility, Wine & Roses, is a bed and breakfast inn located on a five -acre estate, which is in the process of constructing additional rooms. Originally opened with ten rooms, the Wine & Roses added 13 guest rooms during the Fall of 2001, and will open an additional 15 rooms (bringing the total to 38 rooms) in Spring 2002. ' The lodging establishments in the Project Area tend to be very small, budget -class motels, most of which offer limited to no guest services. Eleven of the motels have less than 30 rooms (including the motel that , was closed due to fire damage), three motels have between 30 and 45 rooms and two have between 45 and 55 rooms. The two largest motels in the Project Area, the Best Western Royal Host Inn and the Comfort Inn, are the most comparable to the Holiday Inn and offer some of the guest services that are available at the Holiday Inn, such as an outdoor pool and whirlpool. These three motels could be ' considered comparable highway -oriented lodgings serving the traveler. However the published room rates for the two motels in the Pfoject Area are not as high as for the Holiday Inn. The lodging establishments outside the Project Area have published room rates between $85 and $165 per night (double occupancy), compared to average "asking" room rates of $45 to $65 per night for most motels in the Project Area." Comparing the Project Area's lodging facilities to establishments outside the ' Project Area reveals a significant weakness in the Project Area's lodging market. The motels in the Project Area total 415 rooms, or 80 percent of the City's total overnight lodging rooms. However, transient occupancy tax (TOT) generated by the Project Area's motels represents only 50 percent of the , City's total TOT revenues. The annual transient occupancy tax per room for lodging rooms in the Project Area is shown in Graph II -3. The average annual transient occupancy tax per room is significantly lower inside the Project Area compared to outside the Project Area. This indicates both lower rates and lower I transient occupancy levels in the Project Area than outside, as discussed below. Table II -7 shows the average nightly revenue per room in the Project for motels with less than 50 rooms ' that had transient lodging guests in 2000. This table shows that the average nightly revenue per room ranged from $3 to $35, with an average of $16, based on analysis of transient occupancy tax receipts. Only four of the sixteen motels in the Project Area publish their room rates with sources such as the Automobile Association of America (AAA). Room rates for the remaining motels in the Project Area were obtained through a telephone survey conducted ' by Seifel Consulting [nc. Lodi Redevelopment Agency II -36 Report on the Plan ' Lodi Redevelopment Project April 2002 Table II -7 Lodging Establishments Lodi Redevelopment Project (in Constant 2000 Dollars) Source: City of Lodi Finance Department. As discussed above, the "asking" daily room rates ranged from $45 to $65 per night, with an average of $53 for Project Area motels with transient occupancy. The average revenue as a percentage of room revenue for these motels is just over 30 percent, as compared to approximately 58 percent for motels outside the Project Area. This suggests that Project Area motels have very low transient occupancy rates (in combination with lower room rates) and are not able to capitalize on market demand captured by motels outside the Project Area. Moreover TOT receipts for motels have actually been decreasing over time, after adjusting for inflation (average decrease of 2.9 percent per year between 1996 and 2000), while motels outside the Project Area have increased significantly faster than inflation, as shown in Table 11-8 below. 12 Table II -8 Annual Transient Occupancy Tax Per Room Lodi Redevelopment Project (in Constant 2000 Dollars) Average Annual Growth Average Daily Revenue in 2000 Published/ "Asking" Room Rate in 2000 Avg. Daily Revenue as Percent of Room Rate Motel A $16 $50 33% Motel B $12 $55 22% Motel C $15 $50 31% Motel D $3 $45 7% Motel E $15 $45 33% Motel F $3 $55 5% Motel G $5 $55 9% Motel H $35 $60 59% Motel $11 $50 22% Total $16 $53 t 31% Source: City of Lodi Finance Department. As discussed above, the "asking" daily room rates ranged from $45 to $65 per night, with an average of $53 for Project Area motels with transient occupancy. The average revenue as a percentage of room revenue for these motels is just over 30 percent, as compared to approximately 58 percent for motels outside the Project Area. This suggests that Project Area motels have very low transient occupancy rates (in combination with lower room rates) and are not able to capitalize on market demand captured by motels outside the Project Area. Moreover TOT receipts for motels have actually been decreasing over time, after adjusting for inflation (average decrease of 2.9 percent per year between 1996 and 2000), while motels outside the Project Area have increased significantly faster than inflation, as shown in Table 11-8 below. 12 Table II -8 Annual Transient Occupancy Tax Per Room Lodi Redevelopment Project (in Constant 2000 Dollars) Average Annual Growth Source: City of Lodi Finance Department. 12 For confidentiality reasons, the average annual transient occupancy tax per room for facilities outside the Project Area cannot be published. Lodi Redevelopment Agency II -37 Report on the Plan Lodi Redevelopment Project April 2002 1996 1997 1998 1999 2000 1996-2000 Project Area Motels $514 1 $447 $455 $399 $458 -2.9% Source: City of Lodi Finance Department. 12 For confidentiality reasons, the average annual transient occupancy tax per room for facilities outside the Project Area cannot be published. Lodi Redevelopment Agency II -37 Report on the Plan Lodi Redevelopment Project April 2002 00 d. Hazardous Materials Sites The remediation of toxic or hazardous waste is frequently costly and a major financial disincentive to reinvestment or development. Sites that are abandoned or underutilized because of known or potential environmental contamination are commonly referred to as brownfields. Often, in order for the development of a brownfield to be feasible, public agency assistance is necessary. The fear of environmental liability, in particular, uncertainty over changing response standards and costs, and the high price of conducting environmental investigations are some of the leading reasons deterring the beneficial development and use of urban sites. Developers fear that they will face liability under environmental laws and that the cost of evaluating and remediating brownfields is both so uncertain and so high that it could easily outweigh the market value of the property. Figures II -6 and II -7 indicate portions of the Project Area with soils and groundwater contamination. Under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), the Resource Conservation and Recovery Act (RCRA), and other laws, developers may be held liable for past chemical releases, even though they were not directly responsible for the conditions that gave rise to the liability. Therefore, prior to purchasing or entering into contract to develop a site, a developer must undertake extensive environmental investigations to determine whether hazardous materials are present. In addition, predicting the cost to conduct any potential remediation prior to development is uncertain. Finally, there are often delays associated with obtaining governmental approvals before development may begin. Hazardous materials or waste have been used in the Project Area in commercial, industrial, and in a more limited extent, residential areas. Three areas either partially or completely within the Project Area have been identified as contamination hot spots. in 1989, the City of Lodi detected tetrachloroethylene (PCE) and trichloroethylene (TCE) contamination in water samples, at concentrations above California's Maximum Contaminant Levels (MCLS) for drinking water. The California Department of Toxic Substance Control (DTSC) is the lead regulatory agency providing technical review of the groundwater investigation being conducted by the City of Lodi. The Project Area falls within the DTSC-designated Lodi Groundwater Area of Contamination. In the 1990s, DTSC funded a remedial investigation and a Potentially Responsible Pahy (PRP) search to determine the exact sources of this contamination. Contamination is generally thought to be associated with past dry cleaning operations. Additional hazardous materials investigations have also been completed since that time. According to the most recent studies conducted in 2001, the hot spots are: • The area bounded by Walnut Street and Lodi Avenue on the north and south, and Pleasant Avenue and Hutchins Street to the west and east; • The area bounded by Lockeford and Locust Streets to the north and south, and Church and Sacramento Streets to the west and east; and • The area bounded by Locust and Elm Streets to the north and south, and Stockton and Sacramento Streets to the west and east. The City of Lodi anticipates that the federal court will exercise jurisdiction over the claims of the state and the City concerning investigation and remediation of the Lodi Area of Contamination and will execute a final, non -appealable order compelling a Responsible Party to perform all actions necessary to develop and implement a Remedial Investigation/Feasibility Study and any Interim Remedial Actions necessary to protect human health and the environment. If the federal court fails to enforce a final order, the City of Lodi will take action. The City is required by state hazardous materials regulatory agencies, under the purview of the Regional Water Quality Control Board, to clean up the groundwater contamination. The City is currently involved in litigation with insurance companies representing prior site occupants suspected of earlier contamination. Cleanup of suspected groundwater contamination Lodi Redevelopment Agency I1-39 Report on the Plan Lodi Redevelopment Project April 2002 3. Economic Indicators of Distressed Buildings or Lots This section documents the presence in the proposed Project Area of blighting conditions described in ' CRL Section 33031(b)(2), including abnormally high business vacancies, abnormally low lease rates, high turnover rates, and excessive amounts of abandoned buildings and vacant lots. This section documents the presence of these economic indicators in the Project Area by reporting on the: • Low commercial and industrial lease rates. • Abnormally high vacancies. • Inability of commercial space to meet current user demands. • Infeasibility of private sector to rehabilitate properties. • Underutilized property. a. Low Commercial and Industrial Lease Rates Most lease rates for commercial and industrial space in the Project Area are lower than in other parts of , Lodi and the surrounding area. These relatively lower lease rates occur in areas with adverse physical conditions as described in the previous sections. , Retail Lease Rates According to local brokers, commercial lease rates in the Downtown are 30 to 50 percent below those in ' sources will be undertaken pending a final decision in this litigation. However, new development could ' disturb contaminated groundwater and cause migration of the contamination.13 in the Project Area also suffers from lower lease rates. Table 11-9 presents a summary of typical , The existence of this contamination, the possibility that development could disturb contaminated soils and , groundwater, and the uncertainty of the timing and the outcome of the litigation all serve as potential impediments to development. , 3. Economic Indicators of Distressed Buildings or Lots This section documents the presence in the proposed Project Area of blighting conditions described in ' CRL Section 33031(b)(2), including abnormally high business vacancies, abnormally low lease rates, high turnover rates, and excessive amounts of abandoned buildings and vacant lots. This section documents the presence of these economic indicators in the Project Area by reporting on the: • Low commercial and industrial lease rates. • Abnormally high vacancies. • Inability of commercial space to meet current user demands. • Infeasibility of private sector to rehabilitate properties. • Underutilized property. a. Low Commercial and Industrial Lease Rates Most lease rates for commercial and industrial space in the Project Area are lower than in other parts of , Lodi and the surrounding area. These relatively lower lease rates occur in areas with adverse physical conditions as described in the previous sections. , Retail Lease Rates According to local brokers, commercial lease rates in the Downtown are 30 to 50 percent below those in other retail centers in Lodi and 50 to 70 percent lower than lease rates in retail centers in the southwestern ' part of the City (closer to the newer residential neighborhoods). Commercial space along Cherokee Lane in the Project Area also suffers from lower lease rates. Table 11-9 presents a summary of typical commercial lease rates in the Lodi area. In the Downtown, retail space typically leases for $0.35 to $0.85 , per square foot per month on a gross basis, which translates into triple net (NNN) rents of approximately $0.22 to $0.60 per square foot. At the Cherokee Retail Center in the Project Area, commercial space is currently on the market at $0.85 to $1.00 per square foot per month (NNN). , In contrast, lease rates at the Lakewood Mall at Elm and Ham Lane (considered by brokers to be most comparable to downtown retail uses) average between $1.25 to $1.30 per square foot per month (NNN). Retail development on West Kettleman Lane from Fairmont to Hutchins ranges from $1.40 to $1.60 per , square foot per month (NNN). Newer retail space along lower Sacramento Road and West Kettleman Lane at the southwest end of town can command rents ranging from $1.90 to $2.00 per square foot. Office Lease Rates Office lease rates are from 60 to 75 percent lower in the Downtown than in other parts of Lodi. Typical ' ground floor office space in the Downtown leases for between $0.45 and $0.50 per square foot per month (full service). Upper floor office space in the Downtown is largely unleaseable, due to lack of elevator service and outdated electrical and/plumbing space, and is therefore vacant. I " Draft Environmental Impact Report for the Lodi Redevelopment Plan, Wagstaff & Associates. March 2002. 1 Lodi Redevelopment Agency 11-40 Report on the Plan ' Lodi Redevelopment Project April 2002 In contrast, office space in competitive buildings on Ham Lane or West Kettleman Lane command lease rates in the range of $1.50 to $2.00 per square foot per month (full service). Industrial Lease Rates While the northern portion of the Project Area does have some older industrial space served by the railroad tracks, the majority of the more competitive industrial space is on the east side of the City along Industrial Way and Thurman Streets, Many of the larger industrial users own and/or build their own facilities. For example, General Mills owns its facility at West Turner Road, the Robert Mondavi Winery owns its distribution facility on North Guild Avenue and Pacific Coast Producers recently constructed a 900,000 square foot canning facility on North Guild Avenue. Table II -9 Summary of Commercial Lease Rates Lodi Market Area, January 2002 [11 Retail rents in Downtown are typically quoted on a full-seryice basis, but have been converted to a triple net basis for comparative purposes with other areas in the City. Source: Broker interviews, Winter, 2002. b. Abnormally High Vacancies Commercial vacancies in the Downtown, including Sacramento Street, are abnormally high, particularly as compared to other commercial areas in the City. The vacancy rate of ground floor commercial space in the downtown is estimated between 20 and 25 percent, while upper floor space is estimated to be over 80 percent vacant, yielding an overall vacancy rate in excess of 30 percent. By comparison, there are currently no vacancies at Lakewood Mall, while vacancies on West Kettleman Lane are minimal — currently estimated at less than five percent. C. Inability of Commercial Space to Meet Current User Demands As previously noted in Section F.I .b, much of the commercial space in the Project Area is comprised of older buildings that are constrained by their inability to meet modern design requirements for retail and office space, as well as the limited size of commercial spaces. However, higher volume retailers, such as Barnes and Noble, Crate -n -Barrel, Pottery Barn and Restoration Hardware, could help to catalyze the retail district by serving as anchors. Lodi Redevelopment Agency 1I-41 Report on the Plan Lodi Redevelopment Project April 2002 Inside Outside RETAIL (NNN) Project Project Area Area DowntownIll$0.2240.60Ra�t'i Cherokee Retail Center $.85-$1.00 Lakewood Mall "$� �,� � � W.,g.:.:. `.,•.,_:. $1.25-$130 W. Kettleman -Hutchins to Fairmont $1.40-$1.60 W. Kettleman Lower Sacramento Road $1.90-$2.00 Inside Outside OFFICE (Gross Full Service) Project Project Area Area Downtown Office Space $0.45-$0.50 N/A Ham Lane Office Space ff ° a t(p$1.50-$2.00 $1.50-$2.00 West Kettleman Lane Office [11 Retail rents in Downtown are typically quoted on a full-seryice basis, but have been converted to a triple net basis for comparative purposes with other areas in the City. Source: Broker interviews, Winter, 2002. b. Abnormally High Vacancies Commercial vacancies in the Downtown, including Sacramento Street, are abnormally high, particularly as compared to other commercial areas in the City. The vacancy rate of ground floor commercial space in the downtown is estimated between 20 and 25 percent, while upper floor space is estimated to be over 80 percent vacant, yielding an overall vacancy rate in excess of 30 percent. By comparison, there are currently no vacancies at Lakewood Mall, while vacancies on West Kettleman Lane are minimal — currently estimated at less than five percent. C. Inability of Commercial Space to Meet Current User Demands As previously noted in Section F.I .b, much of the commercial space in the Project Area is comprised of older buildings that are constrained by their inability to meet modern design requirements for retail and office space, as well as the limited size of commercial spaces. However, higher volume retailers, such as Barnes and Noble, Crate -n -Barrel, Pottery Barn and Restoration Hardware, could help to catalyze the retail district by serving as anchors. Lodi Redevelopment Agency 1I-41 Report on the Plan Lodi Redevelopment Project April 2002 As shown in Table 11-10 below, the maximum amount of a single retail space available in the Downtown is generally 2,000 square feet. In other parts of Lodi, the range of available retail space is much greater, from 1,500 to 50,000 square feet. Any of the retailers that might act as a catalyst anchor for the downtown would require between 5,000 and 20,000 square feet of space. The same is true for office space. In the downtown, office space ranges from 300 to a maximum of 21000 square feet. In other parts of Lodi, office renters can find a wider range of office sizes, up to 5,000 square feet. Older buildings also cannot provide flexibility in terms of space and the amenities found in newer buildings. Modern shopping centers and malls can offer a variety of spaces, so that potential renters are more likely to find a space that meets their size requirements. In addition, they have the option to expand or reduce the amount of space they lease. New office space is generally designed to provide flexibility. Table II -10 Size of Available Commercial Space in Lodi January 2002 Source: Broker interviews. d. Infeasibility of Private Sector to Rehabilitate Properties This section evaluates impaired investment in terns of a private investor's ability to rehabilitate deteriorated, older buildings while achieving a reasonable return on investment. It examines the feasibility of two prototypical rehabilitation projects: a mixed-use building in the Downtown and industrial space on the East Side. The rehabilitation assumes extensive improvements such as those listed above, which are often necessary in older buildings. The assumptions for this analysis were obtained from discussions with local real estate owners and brokers, as well as comparable sales information on recent transactions. The costs of preserving and upgrading historic and other older buildings are difficult to determine precisely but, based on field surveys and discussions with business owners and brokers, would involve some or all of the following: • Structural preservation including building repairs and facade preservation; • Installation of an elevator for second floor space; • Electrical and plumbing and other code upgrades; • Improvement to heating and ventilation systems; • Interior remodeling for adaptive reuse. This analysis begins with estimated project costs for the purchase and rehabilitation of older buildings in poor condition based on comparable sales and the cost of undertaking substantial rehabilitation. This i i i t Lodi Redevelopment Agency II -42 Report on the Plan ' Lodi Redevelopment Project April 2002 Proposed Project Area Other Areas in Lodi Office Minimum Square Footage 300 1,000 Maximum Square Footage 2,000 5,000 Retail Minimum Square Footage 300 1,500 Maximum Square Foota e 2,000 50,000 Source: Broker interviews. d. Infeasibility of Private Sector to Rehabilitate Properties This section evaluates impaired investment in terns of a private investor's ability to rehabilitate deteriorated, older buildings while achieving a reasonable return on investment. It examines the feasibility of two prototypical rehabilitation projects: a mixed-use building in the Downtown and industrial space on the East Side. The rehabilitation assumes extensive improvements such as those listed above, which are often necessary in older buildings. The assumptions for this analysis were obtained from discussions with local real estate owners and brokers, as well as comparable sales information on recent transactions. The costs of preserving and upgrading historic and other older buildings are difficult to determine precisely but, based on field surveys and discussions with business owners and brokers, would involve some or all of the following: • Structural preservation including building repairs and facade preservation; • Installation of an elevator for second floor space; • Electrical and plumbing and other code upgrades; • Improvement to heating and ventilation systems; • Interior remodeling for adaptive reuse. This analysis begins with estimated project costs for the purchase and rehabilitation of older buildings in poor condition based on comparable sales and the cost of undertaking substantial rehabilitation. This i i i t Lodi Redevelopment Agency II -42 Report on the Plan ' Lodi Redevelopment Project April 2002 project cost is then compared with the loan and equity amounts that could be supported by projected rents generated by each completed project. These prototypes are used for illustrative purposes to demonstrate the impact of rental rates and property values on the economic value of the investment. Private financing techniques alone will not likely be sufficient to undertake substantial rehabilitation of typical buildings in certain areas still needing redevelopment attention. Below are two prototypical purchase and rehabilitation projects in the area still needing redevelopment attention. The first project, a two story freestanding historic building in the downtown, would likely need a subsidy of about $526,000 to be financially feasible for a developer. The second representative project, an industrial project on the East Side, would need a subsidy of about $264,000. The ability of private developers to invest in rehabilitation of substandard buildings is a measure of economic health within the Project Area. When new rehabilitation is not feasible, needed building capital improvements are deferred and properties are not upgraded and are poorly maintained. Prototypical Rehabilitation Project I: Downtown Mixed Use Building The prototypical project is a 10,000 square foot mixed-use building with about 4,250 square feet of commercial space on the ground floor and 4,250 square feet of office space on the upper floor (common area is assumed to be 1,500 square feet or about 15 percent). The project assumes installation of an elevator, electrical and plumbing upgrades, fagade restoration, and interior remodeling. Table 11-11 summarizes the estimated costs and projected revenues of this prototypical rehabilitation project. The site acquisition cost would be approximately $350,000, assuming a cost of about $35 per square foot, per recent building sales prices for comparable buildings. Rehabilitation construction costs are estimated at $550,000, or approximately $55 per square foot. The total cost of the project, including soft costs and contingency costs, would be about $1,065,000. A typical commercial building of this size is projected to generate a gross income of $76,500 annually given current market conditions, assuming rent for the second floor office at $0.50 per square foot and $1.00 per square foot for the ground floor retail (full service).14 Subtracting a five percent vacancy loss and operating expenses yields a net operating income of approximately $55,000 per year, before tax." Lending institutions typically require that net operating incotne exceed debt service payment by 15 to 20 percent for mixed-use projects (a debt coverage ratio of 1.2 to 1.5). A 1.2 debt coverage ratio yields about $45,500 available to cover debt service and an annual cash flow of about $9,100 (used to provide the return to equity investors). The annual debt service amount could support a mortgage loan of about $447,500. The annual cash flow would support about $91,000 in equity investment yielding a 10 percent interest rate. Thus, the total amount that developers could reasonably expect to raise from private sources is about $538,700 resulting in a financing gap of approximately $526,000, or approximately 49 percent of the total development cost. Prototypical Rehabilitation Project II: East Side Industrial Project The second prototypical project is an older industrial building on the East Side. Many of these buildings suffer from physical deficiencies due to deferred maintenance, as well as outdated design, lack of improved office space, and decayed parking areas. The prototypical project assumes 20,000 square feet of industrial building. Rehabilitation requires potential code upgrades, interior office buildout (for a portion of the space) and parking improvements. 14 Typical commercial rents range from $0.35 to $0.85 full service; this analysis assumes the highest market rent. is An annual vacancy rate for a small project such as this is expected to vary. Accordingly, the five percent vacancy rate should be viewed as an average over several years. Lodi Redevelopment Agency 11-43 Report on the Plan Lodi Redevelopment Project April 2002 7 The private sector does not have sufficient financial incentive to undertake substantial rehabilitation ' projects in the Project Area. Prototypical purchase and rehabilitation projects in the Project Area would require large subsidies to be financially feasible for a typical developer. With financial investment by the Agency, however, the risk to the private sector is reduced and a positive incentive for new development is created. J i 16 Modified gross rents assume the tenant pays utilities and janitorial, while the landlord covers property taxes, insurance and I maintenance of the roof and outer walls. Lodi Redevelopment Agency 11-44 Report on the Plan ' Lodi Redevelopment Project April 2002 ' Table 11-12 summarizes the estimated costs and projected revenues of this prototypical rehabilitation project. The acquisition cost is estimated at $560,000 assuming a cost of about $28 per building square foot, based on conversations with the brokerage community. Construction costs are primarily assumed to cover the cost of potential code upgrades, improving a portion of the interior space for office use and parking improvements, and are estimated at approximately $10 per square foot. The total cost of the project, including soft costs and contingency costs, is estimated at $820,000. , Industrial space in the East Side of the Project Area is projected to generate a gross income of $72,000 annually given current market conditions, assuming industrial rents of $0.30 per square foot (modified ' gross). 16 Subtracting a five percent vacancy loss and operating expenses yields a net operating income of approximately $56,000 per year, before tax. ' As discussed above, lending institutions typically require a debt coverage ratio of 1.2, which yields about $47,000 available to cover debt service and an annual cash flow of about $9,400 (used to provide the return to equity investors). The annual debt service amount could support a mortgage loan of about $462,000. The annual cash flow would support about $100,000 in equity investment yielding a 10 percent ' return on equity. Thus, the total amount that developers could reasonably expect to raise from private sources is about $556,000 resulting in a financing gap of approximately $264,000, or 32 percent of estimated development costs. , The private sector does not have sufficient financial incentive to undertake substantial rehabilitation ' projects in the Project Area. Prototypical purchase and rehabilitation projects in the Project Area would require large subsidies to be financially feasible for a typical developer. With financial investment by the Agency, however, the risk to the private sector is reduced and a positive incentive for new development is created. J i 16 Modified gross rents assume the tenant pays utilities and janitorial, while the landlord covers property taxes, insurance and I maintenance of the roof and outer walls. Lodi Redevelopment Agency 11-44 Report on the Plan ' Lodi Redevelopment Project April 2002 Table II -11 Prototypical Purchase & Rehabilitation Project Downtown - Mixed Use Office and Retail Estimated_Proiect Costs Building Acquisition Cost $350,000 Rehabilitation Cost $550,000 Soft Costs @ 20% $110,000 Contingency @ 10% $55,000 Total Development Cost $1,065,000 Estimated Income & Expenses 10.0% Rental Income $91,125 Ground Floor Retail $51,000 Second Floor Office $25,500 Gross Possible Income $76,500 Vacancy Loss 5% Total Vacancy Loss $3,825 Operating Expenses $18,000 Net Operating Income (NOI) $54,675 Maximum Supportable Loan Debt Coverage Ratio 1.20 NOI Available for Debt $45,563 Maximum Loan $447,541 Annual Cash Flow $9,113 Return on Equity 10.0% " Supportable Value of Equity $91,125 Total Available for Project $538,666 Proiected Financing Ga Total Available for Project $538,666 Less Estimated Development Cost $1.065.000 Financing Gap ($526,334) Percent of Development Cost 49% Assumptions: Income & Expenses Building Square Feet 10,000 Leaseable SF (85%) 8,500 Ground Floor Retail Rent per SF (Gross) $1.00 Second Floor Rent per SF (Gross) $0.50 Landlord Operating Expenses per SF $0.15 Loan Terms Mortgage Interest Rate 9.0% Term (years) 25 Estimated Project Costs Site Acquisition Cost per SF $35 Rehabilitation Hard Cost per SF $55 Soft Cost % of Hard Cost 20% Contingency % of Hard Cost 10% Source: Broker Interviews Winter 2002 Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project April 2002 Source: Broker Interviews Winter 2002 Lodi Redevelopment Agency Report on the Plan ' Lodi Redevelopment Project April 2002 Table II-12 Prototypical Purchase & Rehabilitation Project ' East Side Industrial Project Estimated Project Costs Building Acquisition Cost $560,000 Rehabilitation Cost $200,000 Soft Costs @ 20% $40,000 t Contingency @ 10% $20,000 Total Development Cost $820,000 , Estimated Income & Expenses Rental Income Industrial Rent $72,000 Gross Possible Income $72,000 Vacancy Loss 5% Total Vacancy Loss $3,600 Operating Expenses $12,000 Net Operating Income (NOI) $56,400 ' Maximum Supportable Loan Debt Coverage Ratio 1.20 NOI Available for Debt $47,000 ' Maximum Loan $461,661 Annual Cash Flow $9,400 Return on Equity 10.0% ' Supportable Value of Equity $94,000 Total Available for Project $555,661 Projected Financing Gap Total Available for Project $555,661 Less Estimated Development Cost $820,000 Financing Gap ($264,339) Percent of Development Cost 32% Assumptions• Income & Expenses Building Square Feet 20,000 Net Rentable SF (100%) 20,000 Industrial Rent per SF (Modified Gross) $0.30 Landlord Operating Expenses per SF $0.05 Loan Terms ' Mortgage Interest Rate 9.0% Term (years) 25 Estimated Project Costs , Site Acquisition Cost per Bdg SF $28 Rehabilitation Hard Cost per SF $l0 Soft Cost % of Hard Cost 20% Contingency % of Hard Cost 10% , Source: Broker Interviews Winter 2002 Lodi Redevelopment Agency Report on the Plan ' Lodi Redevelopment Project April 2002 e. Underutilized Property During field reconnaissance surveys several areas of underutilized properties were identified. Figures II -6 and II -7 show the location of underutilized properties in the Central Railroad Commercial and Industrial Corridor and the Cherokee Lane Commercial Corridor. Tables I1-13 and 11-14 describe the underutilized properties. Table II -13 Underutilized Properties by Subarea Central Railroad Commercial/Industrial Corridor Project Area Description Area 1 Relatively small vacant parcel, prominent corner location, currently used for informal truck parking. Unpaved, rainwater ponding. Area 2 Large corner parcel partially occupied by a church. Abandoned automobiles, portable buildings and debris are located on this property. Area 3 Large parcel occupied by a dilapidated multi -story industrial building with broken windows and a vintage automobile salvage yard. Area 4 Large, underutilized storage yard, paved and fenced, serves an adjoining building. Area 5 Underutilized parcel occupied by a dilapidated metal building and old automobiles. Area 6 Large, vacant parcel, unpaved, rainwater ponding. Area 7 Underutilized property, possible auto service use. Area 8 Underutilized corner parcel, partially occupied by used car sales and auto dismantler. Area 9 Underutilized parcel occupied by dilapidated steel tower, dilapidated buildings and debris accumulation. Area 10 Large underutilized property, partially occupied by an abandoned and dilapidated corrugated metal building and a deteriorated concrete garage building. Area 1 1 Lar e, vacant site, abandoned railroadspur tracks, rainwater ponding. Area 12 Targe, underutilized parcel with small deteriorated building, corner location. Area 13 Vacant used car lot. Area 14 Vacant corner parcel, unpaved, informal parking, rainwater ponding. Area 15 Large parcel, currently occupied by contractor's yard. Area 16 Large, underutilized industrial parcel, partially occupied by a modern industrial building. Approximately 80 percent of the parcel is vacant. Area 17 Underutilized parcel with deteriorated and dilapidated commercial and residential buildings. Area 18 Large, vacant parcel, unpaved. Area 19 An underutilized parcel occupied by deteriorated industrial -service buildings and small cottages. Area 20 Large, vacant parcel, prominent corner location, abandoned vineyard. Lodi Redevelopment Agency 11-47 Report on the Plan Lodi Redevelopment Project April 2002 TU ER RD. LODI AVE 1, ® 114 12 II I LOUIE AVE 15zi ¢ 1 3 61 4 � 1 1 I SOFTBALL �® 1 COMPLEX IJ 1 N 0 Z i5 In 619 i HE � 1 U I 1 INE ST. LOCK I r _ — ter, F I Q R I 10 a I o N o � I _® 1 P0 INE ST, 1 2 ❑ ® c 1 OAK ST® I ®� I 20 12 1 wALrour sr. ® I 13 I I KF TTLEMAN LN. UP. .R. LODI AVE. See adjacent map for continuation of See adjacent map for continuation of area above Lodi Avenue. area below Lodi Avenue. Legend 18 LOCATION OF UNDERUTILIZED PROPERTIES I N o ( 0 q) a00 c 1 I FEET SOURCE: John B. Dykstra & Associates CITY OF LODI REDEVELOPMENT PLAN ADOPTION FIGURE II -10: LOCATION OF MAJOR UNDERUTILIZED PROPERTIES, CENTRAL RAILROAD COMMERCIAUINDUSTRIAL CORRIDOR J Table II -14 Underutilized Properties by Subarea Cherokee Lane Commercial Corridor Project Area Description Area I Former gasoline station used for auto repair. Dilapidated buildings and signage. Potential source of soils and groundwater contamination. Area 2 Large triangular-shaped, underutilized property. Currently occupied by a skating rink. Cherokee Lane location. Visible from freeway. Area 3 Small commercial property at prominent corner, occupied by deteriorated warehouse buildings. Area 4 Underutilized corner property, vacant except for boarded -up building. Area 5 Underutilized site of a dilapidated elementary school Lincoln School). Area 6 Large underutilized commercial property occupied in part by a deteriorated but architecturally and historically interesting cream e /restaurant building. Area 7 Large vacant site in developed industrial park. Area 8 Underutilized corner parcel with badly deteriorated buildings. Area 9 Large vacant commercial parcel. Area 10 Very large underutilized property (former bowling alley). Site partially occupied by truck and equipment sales. Main building used as banquet hall and church. Area 11 Underutilized corner lot and adjacent abandoned residence. Lodi Redevelopment Agency I1-49 Report on the Plan Lodi Redevelopment Project April 2002 See adjacent map for continuation of area above Lodi Avenue. See adjacent map for continuation of area above Lodi Avenue. CITY OF LODI REDEVELOPMENT PLAN ADOPTION FIGURE II -11: LOCATION OF MAJOR UNDERUTILIZED PROPERTIES, CHEROKEE LANE COMMERCIAL CORRIDOR t 4. Residential Overcrowding This section documents the presence in the proposed Project Area of blighting conditions described.in CRL Section 33031(b)(4), including residential overcrowding and a high incidence of bars, liquor stores and other establishments that cater exclusively to adults. This section documents the presence of residential overcrowding in the Project Area. Table II -15 shows that residential overcrowding is a significant problem among both renter and owner households in the Project Area, compared to the rest of Lodi. The U.S. Department of Housing and Urban Development defines residential overcrowding as households with over one person per room, and severe overcrowding is defined as households with over 1.5 persons per room. The most recent data on overcrowding is contained in the 1990 US Census. The Project Area lies within four census tracts." Based on an analysis of US Census data of block groups, the total population of the Project Area in 1990 was about 13,200 living in 4,483 households. Renter households made up about 68 percent of total households in the Project Area compared to about 46 percent in the City as a whole. Table II -15 Residential Overcrowding Redevelopment Project Area City of Lodi Project Area Total Outside Households Total Owner Renter Total Project Area Owner Renter Overcrowded 380 Severely Overcrowded 474 56 73 324 460 401 328 148 69 312 259 Total Overcrowded 854 129 725 788 217 571 Total Households 4,483 1,455 3,028 14,518 8,862 5,656 3U C Percent of Total Households Overcrowded Severely Overcrowded 8.5% 10.6% 3.9% 5.0% 10.7% 13.2% 3.2% 2.3% 1.7% 0.8% 5.5% 4.6% Total Overcrowded 19.0% 8.8% 23.9% 5.4% 2.5% 10.1% Source: US Census, 1990, Census Block Groups 42.02-7, 44.01-2, 44.01-3, 44.01-4, 44.01-5, 45-3, 45-4 and portions of42.02-4, 42.02-3, 44.01-6, 45-1, 45-2, 43.02-1, 43.02-4, 42.02-6 and 43.02-2. According to the US Census, approximately 19.0 percent of households in the Project Area were overcrowded, compared to 5.4 percent in the remainder of the City of Lodi. Overcrowding in the Project Area is significantly more serious for renter households than owner households. Approximately 23.9 percent of renter households are overcrowded, compared to 8.8 percent of owner households. The Census also indicates that about 10.6 percent of households in the Project Area are severely overcrowded compared to 2.3 percent in the remainder of the City. Overcrowding typically occurs in older structures that have not been renovated to keep pace with changing lifestyles or demand. Overcrowded housing generally provides poor quality, and often unsafe 17 Census Tracts 42.02, 43.02, 44.01 and 45, including Block Groups 42.02-7, 44.01-2, 44.01-3, 44.01-4, 44.01-5, 45-3, 45-4 and portions of 42.02-4, 42.02-3, 44.01-6, 45-1, 45-2, 43.02-1, 43.02-4, 42.02-6 and 43.02-2. Lodi Redevelopment Agency 1I-51 Report on the Plan Lodi Redevelopment Project April 2002 and unhealthy housing for its residents. It can also lead to the deterioration of buildings by putting additional wear and use on the structures. In some instances, in an attempt to accommodate additional occupancy, make -shift modifications have been made to the structures that may be illegal, unsafe or unhealthy, and a violation of building codes. In the predominantly residential census tracts within the Project Area, overcrowding conditions are more serious. The East Side Neighborhood is comprised of census block groups 44.01-2 through 44.01-6 and 45.00-1 through 45.00-4. Table II -16 indicates that in 1990, over 20 percent of the units in the East Side neighborhood were overcrowded or severely overcrowded, more than 3 times the rate of 5.5 percent outside the East Side neighborhood. Over 11.4 percent were severely overcrowded, almost 5 times the rate of 2.3 percent outside. As described earlier, many garages and other structures have been converted into living units. This has contributed to the overcrowded conditions. Table II -16 Residential Overcrowding East Side Neighborhood City of Lodi Households East Side Nei hborhood Outside East Side Neighborhood Total Owner Renter Total Owner Renter Overcrowded Severely Overcrowded 355 446 53 71 302 485 375 356 151 71 334 285 Total Overcrowded 802 125 677 840 221 619 Total Households 3,840 1,266 2,574 15,161 9,051 6,111 - ,Y . 77 Percent of Total Households Overcrowded Severely Overcrowded 9.2% 11.6% 4.2% 5.6% 11.7% 14.6% 3.2% 2.3% 1.7% 0.8% 5.5% 4.7% Total Overcrowded , 20.9% 9.8% 26.3% 5.5% 2.4% 10.1% Source: 1990 US Census. 5. A High Crime Rate This section demonstrates the presence in the proposed Project Area of blighting conditions described in CRL Section 33031(b)(5) as a high crime'rate that creates a threat to the safety and welfare of the community. This section documents the presence of a high crime rate in the Project Area. High crime rates significantly affect the image of an area and can be a disincentive to commercial or residential investment. Within commercial areas, crimes against persons and property discourage businesses from locating in an area and add to the cost of doing business. In residential areas, crimes have the effect of devaluing property, and discouraging sales and reinvestment. According to the Lodi Police Department, the Project Area has a higher crime rate than the City as a whole. In 2000, there were 1,073 Part 1 crimes18 in the Project Area as compared to 2,841 citywide, as shown in Table 1I-17. The estimated citywide population in 2000 (per the US Census) was 56,999. The most recent population data for the Project Area is the 1990 US Census. (The 2000 US Census data is not yet available at the census tract level.) Because the Project Area is largely built out, its population has probably not increased 18 Part 1 crimes include homicide, rape, robbery, aggravated assault, burglary, larceny and vehicle theft. u 7 i 1 Lodi Redevelopment Agency 1I-52 Report on the Plan , Lodi Redevelopment Project April 2002 significantly over the last decade. Assuming that the population of the Project Area grew at one quarter the citywide growth rate of 9.9 percent, the 2000 Project Area population is conservatively estimated at 13,530, while the balance of the City (outside the Project Area) is estimated at 43,469 residents. Based on these estimates, the Project Area has an incidence of 79.3 Type l crimes per 1,000 population, or almost twice that of the balance of the City (outside the Project Area), at 40.7 Type 1 crimes per 1,000. Table II -17 Part 1 Crime Incidence in 2000 Project Area Compared to Citywide Lodi Redevelopment Project # of Crime Location Incidents Per 1,000 Population % of Citywide Incidents Project Area 1,073 79.31 38% Outside Project Area 1,768 40.67 62% Total Citywide 2,8411 49.84 1 100% Source: City of Lodi Police Department. 6. Conclusion for Economic Blighting Conditions The Project Area suffers from several simultaneous economic problems such as depreciated property values, declining sales, business stagnation and residential overcrowding. Economic blight causes or contributes to vacancies in, or underutilization of an area, health and safety hazards, lack of investment, disinvestment, and the devaluation of neighboring properties. The analysis of existing economic conditions in the Project Area concludes that these problems are so substantial and prevalent that they constitute a finding of economic blight. Thus, redevelopment is necessary for the Project Area to reach its full economic potential. G. Necessity for Redevelopment As it has been demonstrated, the physical and economic blighting conditions in the Project Area are so prevalent and substantial that they cannot reasonably be expected to be reversed without redevelopment assistance. These conditions have become a hindrance to the community that cannot be reversed or alleviated without the assistance of the Agency through the authority of the CRL. As further described in Section 1 below, these blighting conditions have caused a reduction of, or lack of, proper utilization of the Project Area and constitutes a serious physical and economic burden on the community. The private sector does not have sufficient financial incentive to invest in the Project Area, given the risks and up -front costs to improve public infrastructure, encourage economic revitalization, provide affordable housing, and mitigate against seismic safety and environmental problems. Without financial assistance to help underwrite these costs, the private sector would be unlikely to undertake improvements in the Project Area. Lodi Redevelopment Agency 11-53 Report on the Plan Lodi Redevelopment Project April 2002 In summary, the proposed program to alleviate blighting conditions in the Project Area is not financially feasible for the private sector acting alone. Without redevelopment, most of the program costs must be borne solely by the private sector. Redevelopment is a necessary financing tool, which will be used to support the Redevelopment Program costs as described in Chapter III of this report. With this investment by the Agency, risk to the private sector is reduced, and incentive for private investment is created. 1. Significant Burden on the Community This chapter has documented blighting conditions that have become a burden on the community. Project Area properties are not being used to the same potential as properties in other parts of the community. The reduction of, or lack of, proper utilization of the Project Area constitutes a serious physical and economic burden on the community in at least the following respects: • Deprives residents of the city and surrounding area of employment opportunities; • Prevents adequate supply of affordable and other housing; • Deprives property and business owners of a competitive return on their investments; • Deprives residents of adequate public recreational facilities and lands; • Hinders the enhancement of the physical environment; • Prevents proper usefulness and development of land; • Deprives the City, the County, the education districts, and other affected taxing entities of an expanding tax base; and • Hinders the development of a stronger economic base for the community. 2. Limitations of Other Governmental Action Governmental action to alleviate the documented blighting conditions in the Project Area is limited by the lack of a reliable flow of federal, state or local financial resources available to fund a comprehensive revitalization program. The private sector's ability to alleviate the documented blighting conditions is limited. As will be described in Chapter IV, all other feasible sources of non -tax increment revenue will. be applied toward Redevelopment Program costs. However, other governmental revenues are not sufficient to pay for an effective program to alleviate blight in the Project Area. In this financial setting, redevelopment assistance in the form of tax increment revenue is essential to fill the funding gap to undertake an effective revitalization effort for the Lodi Redevelopment Project Area. L 17 i Lodi Redevelopment Agency II -54 Report on the Plan , Lodi Redevelopment Project April 2002 III. Redevelopment Program Description A. Introduction This chapter describes the Redevelopment Program proposed to implement the Lodi Redevelopment Project. The projects and activities that make up the Redevelopment Program are designed to meet the goals and objectives of the CRL and the Redevelopment Plan (described in Chapter 1). The Agency's cost of implementing the Redevelopment Program is estimated to total about $36.5 million in constant 2002 dollars ($24.3 million for non -housing projects and about $12.15 million for affordable housing projects). Revenues generated by the Redevelopment Project could fund a number of potential redevelopment activities in the proposed Project Area. Each of the proposed projects would help to alleviate conditions of blight described in this report. The proposed Redevelopment Program would work in coordination with Lodi's existing Central City Revitalization Program, a comprehensive revitalization package adopted by the City that includes incentive programs, marketing strategies, and physical improvements. The City Council adopted the alternative Catalyst Project for the Central City Revitalization Project in 1995. The Revitalization Project will serve as a catalyst to begin the economic and commercial revitalization of the Downtown and Cherokee Lane corridor, and the East Side neighborhood. The Revitalization Project is one component of a comprehensive and detailed action program consisting of public improvements, incentive programs, promotional programs, and marketing strategies.' The proposed Redevelopment Program emphasizes the elimination of blighting conditions and constraints that interfere with revitalization and conservation of the proposed Project Area by improving the economic conditions and enhancing residential areas. In general, the proposed Redevelopment Program is designed to: • Revitalize areas that exhibit physical and economic blight; • Stimulate private investment in the proposed Project Area's commercial areas; • Improve housing conditions and infrastructure in residential neighborhoods; and • Provide tax increment funds for the redevelopment activities that are needed to alleviate blighting conditions. The Redevelopment Program reflects adopted City goals and policies. Its formulation involved city staff, elected officials, residents and consultants. Agency staff, city residents and business owners reviewed and made recommendations on the proposed projects and activities. The Redevelopment Program also reflects the goals and policies of the City's General Plan, Capital Improvements Program and economic development studies. The Redevelopment Program is organized broadly into six program categories that reflect the division of tax increment revenues into funds which can be used for any redevelopment purpose and those specifically related to the Agency's affordable housing endeavors. Program categories one through five do not specifically address the provision, improvement or preservation of affordable housing while program category six is specifically focused on the Agency's affordable housing activities. The numbers The term 2002 dollars or constant 2002 dollars is used to indicate the present value of nominal dollars discounted back to FY 2001/02. This amount does not include Agency administration costs for non -housing projects and activities. z Engineer's Report for Lodi Central City Revitalization Assessment District No. 95-1, p. 6. Lodi Redevelopment Agency I11-1 Report on the Plan Lodi Redevelopment Project April 2002 Section C of this chapter describes the five non -housing program categories and their respective projects , and activities. Section D describes the Agency's Affordable Housing Program. The sections are organized as follows: • Deficiencies to be corrected. , • Description of how the proposed projects and activities will reduce or eliminate blighting conditions in the proposed Project Area. • Cost estimate in constant 2002 dollars. (Refer to Chapter IV for a description of the funding sources that may be used by the Agency to help fund the proposed projects and activities.) B. Relationship between Redevelopment Program and Alleviation i of Blighting Conditions As indicated in Chapter 11, the Lodi Redevelopment Project Area suffers from a variety of physical and economic blighting conditions that must be alleviated if the area is to be revitalized. The proposed Project Area will benefit from a coherent economic development, neighborhood conservation and revitalization strategy that is coordinated with the City's overall goals. ' The Redevelopment Program is designed to alleviate the blighting conditions identified in Chapter II, and meet the Agency's affordable housing obligation, as well as the CRL requirement that Agency ' expenditures be linked to the elimination of blighting conditions. The proposed Redevelopment Program will address the blighting conditions described in Chapter II. Furthermore, it will address the public improvement deficiencies that contribute to physical and economic blight in the proposed Project Area. , Table III -I provides a matrix summarizing the blighting conditions described in Chapter II and the proposed Redevelopment Program's activities designed to alleviate each blighting condition. 1 11 Lodi Redevelopment Agency I11-2 Report on the Plan ' Lodi Redevelopment Project April 2002 1 assigned to each category are for identification purposes only, and are not intended to indicate a category's relative priority for implementation: 1. Economic Development , 2. Building Rehabilitation, Fagade Improvement, and/or Historic Preservation 3. Public Infrastructure and Facilities , 4. Neighborhood Preservation, Circulation and Landscaping Improvements 5. Site Preparation and Development 6. Affordable Housing , Section C of this chapter describes the five non -housing program categories and their respective projects , and activities. Section D describes the Agency's Affordable Housing Program. The sections are organized as follows: • Deficiencies to be corrected. , • Description of how the proposed projects and activities will reduce or eliminate blighting conditions in the proposed Project Area. • Cost estimate in constant 2002 dollars. (Refer to Chapter IV for a description of the funding sources that may be used by the Agency to help fund the proposed projects and activities.) B. Relationship between Redevelopment Program and Alleviation i of Blighting Conditions As indicated in Chapter 11, the Lodi Redevelopment Project Area suffers from a variety of physical and economic blighting conditions that must be alleviated if the area is to be revitalized. The proposed Project Area will benefit from a coherent economic development, neighborhood conservation and revitalization strategy that is coordinated with the City's overall goals. ' The Redevelopment Program is designed to alleviate the blighting conditions identified in Chapter II, and meet the Agency's affordable housing obligation, as well as the CRL requirement that Agency ' expenditures be linked to the elimination of blighting conditions. The proposed Redevelopment Program will address the blighting conditions described in Chapter II. Furthermore, it will address the public improvement deficiencies that contribute to physical and economic blight in the proposed Project Area. , Table III -I provides a matrix summarizing the blighting conditions described in Chapter II and the proposed Redevelopment Program's activities designed to alleviate each blighting condition. 1 11 Lodi Redevelopment Agency I11-2 Report on the Plan ' Lodi Redevelopment Project April 2002 •! C U v v Affordable Housing ,o ■ ■ ■ ■ ■ ■ Site Preparation xn ■ ■ ■ ■ ■ ■ ■ E 0 P Circulation and Landscaping et ■ ■ ■ ■ ■ G 6 0 Public Facilities M ■ ■ ■ ■ � W Building Rehabilitation N ■ ■ ■ ■ ■ Economic Developmen r. ■ ■ ■ ■ ■ ■ ■ ■ G d > .a aD p v R 73 G -p Q o a a 3 O � d v 4) Y W v% a 0 7 711 A a > a r w o O .d G .O LD V) y Q C0 F U U 0 c u E 8 U Q u v o u u y .G ,°' C O o v x °° u C U v v a. Deficiencies to Be Corrected Many portions of the proposed Project Area are suffering from economic decline and stagnation. Retail , C. Description of Non -Housing Redevelopment Program This section describes the proposed Non -Housing Redevelopment Program, including the deficiencies to be corrected, project descriptions, and the estimated project costs.' As they are implemented, these ' projects may be modified over time to better serve the purposes of redevelopment. Cost estimates are necessarily preliminary in nature and subject to considerable refinement as the Redevelopment Program planning and implementation proceed. However, the cost estimates are adequate to provide reasonable orders of magnitude for evaluating financial feasibility and the need for tax increment financing. , Table III -2 summarizes the total estimated cost of the proposed Lodi Redevelopment Program. It should be noted that these costs do not include Agency administration expenses for non -housing activities, which ' are discussed in greater detail in Chapter IV. Table III -3 summarizes the estimated Agency share of non- housing and housing projects for the proposed Project Area. 1. Economic Development a. Deficiencies to Be Corrected Many portions of the proposed Project Area are suffering from economic decline and stagnation. Retail , businesses perform poorly, and lodging establishments have lower revenues per room as compared to establishments outside the Project Area. In industrial areas, many warehouses are vacant, and several buildings are abandoned. Depreciated property values and impaired investments are evident in the ' commercial areas within the proposed Project Area, including Downtown Lodi and Cherokee Lane. Downtown Lodi is a weak environment for commercial activity. Commercial lease rates are low there and along Cherokee Lane as compared to other commercial areas in Lodi. Commercial rents are significantly lower east of the Union Pacific railroad tracks, where properties are more deteriorated, than they are west of the railroad tracks. b. Description ' As part of the economic development program, the following is proposed: • Design and implement'a program to attract business and promote tourism, including assistance in the preparation of marketing materials. • Provide financial assistance to business organizations. • Provide for a marketing study and strategy to attract and retain businesses to the Project Area. • Encourage office uses in Downtown Lodi. • Accommodate and encourage lodging, auto and support commercial buildings along Cherokee Lane. • Encourage revitalization through business and developer incentives. C. Estimated Program Costs ' The estimated Agency share of the economic development program (Table III -3) is approximately $3.6 million (in constant 2002 dollars). 3 The non -housing program includes some activities that will benefit housing, including building rehabilitation, seismic strengthening and historic preservation. ' Lodi Redevelopment Agency 111-4 Report on the Plan Lodi Redevelopment Project April 2002 , 2. Building Rehabilitation, Fagade Improvement and/or Historic Preservation a. Deficiencies to Be Corrected As indicated in Chapter 11, 75 percent of the buildings in the proposed Project Area have significant physical deficiencies. Many buildings show the effects of serious deterioration. Deficient or deteriorated buildings are found in each of the eight areas surveyed. A large number of residences have informal, substandard construction. Many residential buildings are dilapidated and unsound. The downtown commercial area has several deteriorated commercial structures. Some of these buildings are structurally unsound. Some industrial uses east of Highway 99 exhibit deterioration, with some dilapidation. Some of the structures are functionally obsolete. b. Description As part of the building rehabilitation, fagade improvement and/or historic preservation program, the following is proposed: • Assist in rehabilitation, seismic strengthening and/or historic preservation of commercial, industrial and residential buildings, through low interest loans and grant funds. • Assist with facade improvements in the downtown and other areas. • Establish development standards and design guidelines to improve the appearance of buildings and businesses along Cherokee Lane. • Redevelop dilapidated and abandoned buildings. C. Estimated Program Costs The estimated Agency share of the building rehabilitation, fagade improvement and/or historic preservation program (Table III -3) is approximately $4.4 million (in constant 2002 dollars). 3. Public Infrastructure and Facilities a. Deficiencies to Be Corrected Commercial and residential lots lack adequate off-street parking. The storm and wastewater distribution system is aging, obsolete and inadequate. b. Description As part of the public infrastructure and facilities program, the following is proposed: • Provide parking improvements in commercial areas of the Project Area. • Implement storm drain, wastewater and water distribution improvements in the East Side neighborhood, along Cherokee Lane and Downtown. • Assist in providing facilities to service residents in the proposed Project Area, such as a community center, a library and an education and training center. C. Estimated Program Costs The estimated Agency share of the public infrastructure and facilities program (Table III -3) is approximately $9.9 million (in constant 2002 dollars). Lodi Redevelopment Agency III -5 Report on the Plan ' Lodi Redevelopment Project April 2002 4. Neighborhood Preservation, Circulation and Landscaping Improvements a. Deficiencies to Be Corrected Several areas of the Project Area suffer from circulation and other deficiencies that impede the vitality of neighborhoods and commercial areas. These include the lack of pedestrian and bicycle access, street signs, street lighting, landscaping, and sidewalks. Another deficiency is inefficient traffic circulation, particularly along Cherokee Lane. , b. Description As part of the neighborhood preservation, circulation and landscaping improvements program, the following is proposed: • Create a comprehensive pedestrian and bicycle network, providing linkages and improving access to Downtown from the proposed Multi -Modal Train Station and Transit Center. , • Provide pedestrian access to the Transit Center, including widen sidewalks and landscape street frontages. • Continue to landscape public parking lots and streets, improve street signs and streetlights in the , Downtown, neighborhoods and other areas. • Continue to provide new sidewalks and/or widen sidewalks in the Downtown, neighborhoods and other areas. ' • Improve traffic signalization and traffic circulation at critical intersections, especially along Cherokee Lane. ' • Expand code enforcement efforts. • Update development standards for multifamily residences. Costs C. Estimated Program The estimated Agency share of the neighborhood preservation, circulation and landscaping improvements program (Table III -3) is approximately $2.2 million (in constant 2002 dollars). ' 5. Site Preparation and Development a. Deficiencies to Be Corrected Some areas in the Project Area contain soil and/or groundwater contamination. A large number of lots are substandard to economic development due to their small size or because they front on alleys. A number of incompatible uses have been identified in the proposed Project Area, including residences close to the railroad or industrial plants, and commercial and residential uses located adjacent to dilapidated, vacant or abandoned properties. b. Description As part of the building rehabilitation program, the following is proposed: • Facilitate a hazardous materials cleanup program. • Acquire property and assemble sites, including acquisition of strategic properties to meet redevelopment goals. • Provide assistance to relocate incompatible uses. 1 Lodi Redevelopment Agency 111-6 Report on the Plan Lodi Redevelopment Project April 2002 , C. Estimated Program Costs The estimated Agency share of the site preparation and development program (Table III -3) is approximately $4.3 million (in constant 2002 dollars). 6. Description of Affordable Housing Redevelopment Program This section describes the proposed Affordable Housing Redevelopment Program, including the deficiencies to be corrected, project descriptions, and estimated project costs. a. Deficiencies to Be Corrected The Agency will promote the revitalization of existing housing as well as the construction of well- designed affordable and market -rate housing in the proposed Project Area in order to enhance the vitality of the area and provide much-needed housing for the City. Residential overcrowding is a significant problem among both renter and owner households in the proposed Project Area as compared to the rest of the City. The Project Area contains structurally unsound residences, residential units with informal and substandard construction, and deteriorated residential structures. b. Description The Agency will implement a key provision of the CRL: the enhancement of affordable housing opportunities for households earning at or below 120 percent of median income, with particular emphasis on those households earning at or below 50 percent of median income. Section 33334.2 of the CRL requires that an agency utilize 20 percent of all tax increment revenue allocated to the Agency to increase or enhance the community's supply of affordable housing. The Agency may establish a range of housing programs that seek to enhance project design and leverage federal, state, and private funding sources to develop high quality, attractive, and affordable housing developments serving a diverse population. The funds directed toward this program will be used in a flexible manner in order to respond to favorable development opportunities. The type of financial assistance to be provided may include cost write-down and gap financing for projects utilizing federal and state grant or loan funds to facilitate design enhancements, property acquisition, construction and predevelopment. Appropriate uses of these funds include new affordable rental and ownership housing construction, and assistance to homebuyers with acquiring affordable housing. As part of the Affordable Housing Redevelopment Program, the Agency will undertake the following projects to correct the deficiencies in the proposed Project Area: • Encourage homeownership and renovation. • Facilitate development of new affordable housing. • Provide funding assistance for rehabilitation of single and multi family housing for low and moderate income households. • Facilitate development of housing for the elderly. • Spend affordable housing set-aside funds in accordance with CRL, in order to: — Preserve and provide housing opportunities at all income levels in accordance with the CRL. — Provide opportunities for homeowners earning at or below 120 percent of median income to maintain and repair their homes and promote neighborhood revitalization. — Provide homeownership opportunities for first time homebuyers earning less than 120 percent of median income. Lodi Redevelopment Agency III -7 Report on the Plan Lodi Redevelopment Project April 2002 C. Estimated Program Costs The Agency cost for the Affordable Housing Program is projected to be $12.15 million in constant 2002 dollars. Refer to Chapter IV for further discussion regarding the projections of tax increment to be set-aside for affordable housing. 11 Lodi Redevelopment Agency I11-8 Report on the Plan , Lodi Redevelopment Project April 2002 Table 1II-2 Projected Total Costs of Proposed Lodi Redevelopment Program Non -Housing and Housing Activities in Constant 2002 Dollars Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project 111-9 April 2002 Total Cost Unit Cost/unit Yrs 1. Economic Development $500,000 Lump Sum Estimate A. Design and implement a program to attract business and promote tourism, including assistance in the preparation of marketing materials B. Provide financial assistance to business organizations $1,500,000 1 $50,000 /year 30 C. Provide for a marketing study and strategy to attract and retain $100,000 1 $100,000 /study N/A businesses to the Project Area. D Encourage office uses in Downtown Lodi $500,000 1 $50,000 /year 10 Accommodate and encourage lodging, auto and support commercial $500,000 1 $50,000 /year 10 E. buildings along Cherokee Lane F. Encourage revitalization through business and developer incentives $3,000,000 1 $100,000 /year 30 SUBTOTAL 7% $6,100,000 2. Building & Site Rehabilitation, Facade Improvement and/or Historic Preservation A. Assist in rehabilitation, seismic strengthening and/or historic $7,500,000 5 $50,000 /bldg 30 preservation of commercial, industrial and residential buildings, through low interest loans and Brant funds B. Assist with facade improvements in the Downtown and other areas. $3,000,000 5 $20,000 /bldg 30 C. Establish development standards and design guidelines to improve the $100,000 1 $100,000 /study N/A appearance of buildines and businesses alone Cherokee Lane D. Redevelop dilapidated and abandoned buildings $6,750,000 3 $75,000 /bldg 30 SUBTOTAL 19% $17,350,000 3. Public Infrastructure and Facilities A. Provide parking improvements in commercial areas of the $8,200,000 Lump Sum Estimate Proiect Area B. Implement storm drain, wastewater and water distribution $30,300,000 Lump Sum Estimate improvements in the Eastside neighborhood, along Cherokee Lane and Downtown. C. Assist in providing facilities to serdice residents in the Project Area, $5,000,000 Lump Sum Estimate such as community centers, libraries and education and training centers SUBTOTAL 48% $43,500,000 4• Neighborhood Preservation, Circulation and Landscaping Imorovements A. Create a comprehensive pedestrian and bicycle network, providing $2,500,000 10 $250,000 /mile N/A linkages and improving access to Downtown from the proposed Multi- modal Train Station and Transit Center B. Provide pedestrian access to the Transit Center, including widen $500,000 Lump Sum Estimate sidewalks and landscape street frontaees C. Continue to landscape public parking lots and streets, improve street $1,000,000 Lump Sum Estimate signs and streetlights in the Downtown, Cherokee Lane, neighborhoods and other areas. D. Continue to provide new sidewalks and/or widen sidewalks in the $500,000 Lump Sum Estimate Downtown, neiehborhoods and other areas. E. Improve traffic signalization and traffic circulation at critical $750,000 5 $150,000 /signal 1 intersections, especially alone Cherokee Lane F. Design and implement a neighborhood preservation program $1,000,000 Lump Sum Estimate G. Expand code enforcement efforts. $500,000 1 $25,000 /year 20 H. Update development standards for multifamily residences $100,000 1 $100,000 /study 1 SUBTOTAL 8% $6,850,000 Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project 111-9 April 2002 Table III -2 Projected Total Costs of Proposed Lodi Redevelopment Program Non -Housing and Housing Activities in Constant 2002 Dollars Source: City of Lodi. 1 1 1 1 Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project III.10 April 2002 Total Cost Unit Cost/unit Yrs 5. Site Preparation and Development A. Facilitate a hazardous materials cleanup program $5,000,000 1 $250,000 /year 20 B. Property acquisition and site assembly, including acquisition of strategic $10,000,000 Lump Sum Estimate properties to meet redevelopment goals C. Provide assistance to relocate incompatible uses $1,000,000 1 $50,000 /reloc 20 SUBTOTAL 18% $16,000,000 TOTAL NON -HOUSING 100% $89,800,000 6. Affordable Housing A. Encourage home ownership and renovation. $800,000 1 $40,000 /year 20 B. Facilitate development of new affordable housing $10,000,000 Lump Sum Estimate C. Provide funding assistance for rehabilitation of single and multi -family $16,500,000 1 $550,000 /year 30 housine for low and moderate income households D. Facilitate development of housing for the elderly $2,000,000 Lump Sum Estimate SUBTOTAL $29,300,000 TOTAL PROGRAMS AND ACTIVITIES $119,100,000 Source: City of Lodi. 1 1 1 1 Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project III.10 April 2002 Table III -3 Projected Costs of Proposed Redevelopment Program Lodi Redevelopment Project Area in Constant 2002 Dollars REDEVELOPMENT PROGRAMS AND ACTIVITIES TotalFFOr her Source Agency Agency %, Costs ding Assistance of Total 1. ECONOMIC DEVELOPMENT A. Design and implement a program to attract business and promote General Fund, Private tourism, including assistance in the preparation of marketing materials $500,000 $250,000 Sector $250,000 50% General Fund, Private B. Provide financial assistance to business organizations $1,500,000 $250,000 Sector $1,250,000 83%, C. Provide for a marketing study and strategy to attract and retain businesses to the Project Area. $100,000 $50,000 General Fund $50,000 50% General un rivate D. Encourage office uses in Downtown Lodi $500,000 $250,000 Sector $250,000 50%, E. Accommodate and encourage lodging, auto and support commercial buildings along Cherokee Lane $500,000 $250,000 General Fund $250,000 50% General Fund, R Encourage revitalization through business and developer incentives $3,000,0001 $1,500,000 Enterprise Fund $1,500,000 50% Subtotal $6,100,000 $2,550,000 $3,550,000 58% 2. BUILDING REHABILITATION, FACADE IMPROVEMENT AND/OR HISTORIC PRESERVATION A. Assist to rehabilitation, seismic strengthening and/or historic preservation of commercial, industrial and residential buildings, through low interest loans and grant funds $7,500,000 $5,625,000 Private Sector $1,875,000 25% B. Assist with aha a improvements in the Downtown and other areas. $3,000,000 $2,250,000 rivate ector $750,000 25% C. Establish development standards and design guidelines to improve the appearance of buildings and businesses along Cherokee Lane $100,000 $50,000 Private Sector $50,000 50 D. Redevelop dilapidated and abandoned buildings 1 $6,750,0001 $5,062,5001 Private Sector $1,687,500 25% Subtotal $17,350,000 $12,987,500 1 $4,362,500 25% a. .., :°Y .4£ ^:.'r..e fl.r fiYl« s.. 4L':r:Y:L nNCw,<.:.,_4.. Y s,•»d1 .X w..:,: e`O9.f.Yia .F e .:s .. ...fir.. . .. ,:.. •, ..::: ..<... <. .<. .. Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project 111"1 April 2002 Table 11I-3 Projected Costs of Proposed Redevelopment Program Lodi Redevelopment Project Area in Constant 2002 Dollars REDEVELOPMENT PROGRAMS AND ACTIVITIES Total Other Source Agency Agency % Costs Funding Assistance of Total 3. PUBLIC INFRASTRUCTURE AND FACILITIES A. Provide parking improvements in commercial areas of the Federal Funds, General Project Area $8,200,000 $5,600,000 Fund, Private Sector $2,600,000 32% B. Implement storm drain, wastewater and water distribution improvements in the Eastside neighborhood, along Cherokee Lane and Downtown. $30,300,000 $24,240,000 Enterprise Funds $6,060,000 20% C. Assist in providing facilities to service residents in the Project Area, General Fund, CDBG, such as community centers, libraries and education and training centers $5,000,000 $3,750,000 State, Private Sector $1,250,000 25`%u Subtotal 1 $43,500,000 $33,590,000 $9,910,000 23% 77777 4. NEIGHBORHOOD PRESERVATION, CIRCULATION AND LANDSCAPING IMPROVEMENTS A. Create a comprehensive pedestrian and bicycle network, providing linkages and improving access to Downtown from the proposed Multi- modal Train Station and Transit Center $2,500,000 $1,875,000 TDA, Gas Tax $625,000 25% B. Provide pedestrian access to the Transit Center, including widen sidewalks and landscape street frontages $500,000 $250,000 TDA, Gas tax $250,000 50% C. Continue to landscape public parking lots and streets, improve street signs and streetlights in the Downtown, Cherokee Lane, neighborhoods and other areas. $1,000,000 $500,000 Gas tax, General Fund $500,000 50% D. Continue to provide new sidewalks and/or widen sidewalks in the Downtown, neighborhoods and other areas. $500,000 $375,000 Gas tax, General Fund $125,000 25% E. Improve traffic signs ization and traff is circulation at critics intersections, especially along Cherokee Lane $750,000 $562,500 Gas tax, General Fund $187,500 25% F. Design and implement a neighborhood preservation program $1,000,000 _ $750,000 General Fund $250,000 25% G. Expand code enforcement efforts. 1 $500,000 $250,000 CDBG, General Fund $250,000 50% H. Update development standards for multifamily residences 1 $100,000 $50,000 General Fund $50,000 50% Subtotal 1 $6,850,000 $4,612,500 1 $2,237,5001 33% iZ _':x L kii Redevelopmenr Agency Report on the Plan L(di Redevelopment Project Ill -12 April 2002 Table I11-3 Projected Costs of Proposed Redevelopment Program Lodi Redevelopment Project Area in Constant 2002 Dollars REDEVELOPMENT PROGRAMS AND ACTIVITIES7 Total Costs Other Funding FSottrce Agency Assistance Agency % of Total 5. SITE PREPARATION AND DEVELOPMENT 1 $36,460,000 A. Facilitate a hazardous materials cleanup program $5,000,000 $3,750,000 Private Sector, State $1,250,000 25% B. Property acquisition and site assembly, including acquisition of strategic properties to meet redevelopment goals $10,000,000 $7,500,000 Private Sector $2,500,000 25% C. Provide assistance to relocate incompatible uses $1,000,000 $500,000 Private Sector $500,000 50% Subtotal 1 $16,000,000 $11,750,0001 $4,250,000 27% '^ i27 6@G t �. . ...,: "„�' ,. F.,Y.:yj..`W,.Y.i!U+� °c iib: ✓. 5,..°.: 'F . " ...x ..... 4 s .�,3: s s.ti,. , LAZ TOTAL NON -HOUSING PROGRAMS AND ACTIVITIES $89,800,0001 $65,490,0001 $24,310,000 27% 6. AFFORDABLE HOUSING A. Encourage home ownership and renovation. $800,000 $400,000 CDBG $400,000 50% B. Facilitate development of new affordable housing $10,000,000 $7,500,000 CDBG, HOME, Private Sector $2,500,000 25% C. Provide funding assistance for rehabilitation of single and multi -family housing for low and moderate income households $16,500,000 $8,250,000 CDBG, HOME, Private Sector $8,250,000 50% D. Facilitate development of housing for the elderly $2,000,000 $1,000,000 CDBG, HOME, Private Sources 1 $1,000,000 50% TOTAL AFFORDABLE HOUSING 1 $29,300,000 $17,150,000 $12,150,000 41% s° TOTAL PROGRAMS AND ACTIVITIES 1 $119,100,0001 $82,640,0001 1 $36,460,000 31% Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project 111"13 April 2002 IV. Proposed Methods of Financing and Feasibility A. Introduction This chapter describes the public and private financing aspects of the Redevelopment Program for the Lodi Redevelopment Project. It estimates total funding requirements, identifies potential resources and methods of financing available to the Agency, projects tax increment and other revenues, and assesses the general financial feasibility of the Redevelopment Project. The analysis in this chapter supports the conclusion that tax increment financing is a necessary component of the Redevelopment Plan. The following sections demonstrate why tax increment financing made possible through the Redevelopment Plan is a necessary part of the overall financing program to eliminate blighting conditions in the Project Area. As described in Chapter 11, the blighting conditions in the Project Area are substantial, and a significant amount of capital investment will be required to alleviate them. While the Agency will pursue all potential funding sources, these will not be sufficient to finance all of the activities critical to alleviating the blighting conditions identified in the Project Area without the use of tax increment. Improvements needed in the Project Area cannot be funded without the establishment of a redevelopment project. The estimated cost to the Agency of the Redevelopment Program described in Chapter III (excluding Agency administrative costs for non -housing programs) totals approximately $36.5 million. The private sector is unable to support this cost on its own. In addition, public revenue sources such as the Community Development Block Grant (CDBG), federal grant funding, the City's General Fund and Enterprise Funds, and other revenue sources are either unavailable, dwindling, or insufficient to cover the cost of the projects and activities proposed by the Agency to eliminate blight and redevelop the Project Area. Thus, a gap or shortfall exists for which no funding sources (other than tax increment financing) are available or sufficient. Tax increment financing is the most reliable source of long term redevelopment funding available to the Agency, and the only source of financing that will generate sufficient revenue to meet the funding gap. B. Stimulation of Private Investment A major goal of the Redevelopment Program is to stimulate private investment within the Project Area. Public investment in the form of redevelopment funding will be used to leverage private investment. It is anticipated that private investment will include the rehabilitation and new construction of commercial, industrial and residential buildings within the Project Area. Over time, such investment could be significant. Projections of potential buildout in the Project Area indicate that the value of new development financed by private investment is estimated to be almost $140 million (nominal dollars) through the life of the Redevelopment Project. However, the stimulation of private investment in the area will require the improvement of public facilities, the elimination of blighting conditions, and the establishment of a positive climate for private participation. Given the extent of blighting conditions and the need for improved public facilities, effective implementation of the proposed Redevelopment Program provides the most reasonable opportunity for stimulating private investment in the Project Area. Lodi Redevelopment Agency IV -1 Report on the Plan Lodi Redevelopment Project April 2002 i 1. Estimated Agency Funding Requirements for the Redevelopment Program ' Implementation of the Redevelopment Project will require substantial funding. The estimated net costs to the Agency in constant dollars to complete the Redevelopment Program are summarized in Table IV -1.' These estimates are drawn from the analysis in Chapter III and include items to be funded by the ' proposed Redevelopment Program after subtracting offsetting funding sources. The estimates for these offsetting funds are based on the analysis in Section C of this chapter. ' C. Potential Funding Sources Other than Tax Increment Financing ' This section describes funding sources that, if available, could assist in financing the Redevelopment Program for the Lodi Project Area. The Agency will use every effort to obtain alternative funding sources as a means to accelerate the Redevelopment Program and to minimize the required investment of tax increment revenue. Some alternative sources may actually generate more funds during implementation of the proposed Redevelopment Plan than estimated, while others may generate less. On balance, the estimates of available alternative revenues are seen as a best estimate order of magnitude at the , Redevelopment Plan adoption stage to determine the need for tax increment revenue (as discussed in Sections C through G below). , Up to the present, the City has used available CDBG funds and assessment district proceeds, combined with its General Fund and Enterprise Funds to fund economic development and revitalization activities and necessary infrastructure improvements in the proposed Project Area. However, these funding sources will be insufficient to finance a redevelopment program. ' A redevelopment plan would authorize the City of Lodi to finance a redevelopment project using a variety of sources, including funding from the federal government and the State of California, as well as bank ' loan programs to meet the requirements of the Community Reinvestment Act (CRA). Other local sources could include donations, interest income, agency bonds, and loans from private institutions, the sponsoring entities and other local public entities, as well as the sale and lease of Agency -owned property. ' However, other funding sources are not likely to adequately meet the needs for public improvements and revitalization in the Project Area. i ' The term 2002 dollars or constant 2002 dollars is used to indicate the present value of nominal dollars discounted back to ' FY 2001102. Refer to discussion on present value assumption in section D. I of this chapter. Lodi Redevelopment Agency IV -2 Report on the Plan , Lodi Redevelopment Project April 2002 Table IV -1 Estimated Net Cost to Agency of Redevelopment Program in Constant 2002 dollars Redevelopment Program Categories Net Cost to Agency 1. Economic Development $3,550,000 2. Building Rehabilitation, Facade Improvement and Historic Preservation $4,362,500 3. Public Infrastructure and Facilities $9,910,000 4. Neighborhood Preservation, Circulation and Landscaping Improvements $2,237,500 5. Site Preparation and Development $4,250,000 Subtotal Projects $24,310,000 Non -Housing Administration Costs $2,900,000 Subtotal Housing Costs $27,210,000 6. Affordable Housing $12,150,000 TOTAL COSTS $39,460,000 1. Federal -Funding Sources While federal, state and county loan and grant programs could provide funding for some of the projects proposed for the Project Area, funding levels have been curtailed for most of their economic development programs. a. Community Development Block Grants and HOME Funds Community Development Block Grants (CDBG) can be secured from the U.S. Department of Housing and Urban Development (HUD) to fund activities such as public works; rehabilitation loans and grants; land acquisition, demolition, and relocation for redevelopment; public services; and affordable housing, social services and projects for the elderly or handicapped. CDBG-funded projects and activities must principally benefit low and moderate income persons or aid in the prevention of elimination of slums or blight. Federal Home Ownership Partnerships Program (HOME) funds can also be obtained from HUD for development and rehabilitation of affordable housing. As such, HOME can only be used for affordable housing redevelopment activities. CDBG and HOME funds typically provide a limited source of revenue for many redevelopment activities in California. Lodi received approximately $750,000 in CDBG fiends and $200,000 in HOME funds in FY 2000/01 and expects to receive a similar amount in FY 2001/02. HOME funds are administered through San Joaquin County and are used solely for affordable housing. Most of Lodi's CDBG funds in recent years have been used to construct and rehabilitate housing, and provide needed services and facilities to lower-income residents. Given the competing needs in the City, very little CDBG funds are available for public improvements. However, CDBG and HOME funds will Lodi Redevelopment Agency IV -3 Report on the Plan Lodi Redevelopment Project April 2002 continue to be used to fund activities and programs for affordable housing activities identified in the proposed redevelopment program to the extent feasible. b. Transportation Equity Act for the 21st Century (TEA -21) The federal government's Transportation Equity Act for the 21st Century (TEA -21) builds on the initiatives established in the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). TEA -21 provides federal transportation funding to San Joaquin County and local jurisdictions through programs such as the Congestion Mitigation and Air Quality (CMAQ) Program, the Transportation Enhancement Activities (TEA) Program, and the Surface Transportation Program (STP) funds. Other sources of federal transportation funding include Sections 5303, 5306, 5309, 5310 and 5311 of the Federal Transit Act and the Railroad Grade Crossing Protection Program. CMAQ funds may be used for projects and activities that contribute to attainment or maintenance of the national ambient air quality standards for ozone and carbon monoxide. TEA funding is provided to projects that innovatively incorporate surface transportation activities into their surrounding communities. TEA projects must demonstrate a quality of life benefit, while providing the greatest benefit to the greatest number of people. Funding under both CMAQ and TEA is granted through a competitive process against other projects throughout the region and/or state. Use of these federal funds requires coordination with regional governance, the state and affected transit operators. STP funds provide one of the most essential funding programs of TEA -21. Funds are allocated by formula to counties and regional transit districts and to cities based on population percentage. Since STP funds are "flexible", they can be spent on numerous types of transportation improvements, including projects pertaining to roads, highways, bicycle facilities, mass transit and other pedestrian facilities. For many regions, a majority of the funds are spent on local streets rehabilitation or reconstruction. Lodi has used a variety of federal funding sources (leveraging local funds) for its transportation and transit improvements. For dxample, the City is utilizing federal funding from the Section 5307 Program and a federal earmark from TEA -21 to fund a portion of the multimodal station park and ride parking structure currently under construction in the Downtown. These funds will continue to be sought and the Agency will use redevelopment funds to leverage federal dollars, typically assumed at 25 percent local match. 2. State and County Funding Sources State of California Economic Development Programs The primary economic development program of the State of California is redevelopment. The state does not have any significant source of funding other than redevelopment to fund revitalization activities in the City. While the state does provide technical assistance funds, such as for the Main Street program, it does not have any source of significant capital funding for revitalization activities. b. Transportation Development Act (TDA) Funds Transportation Development Act (TDA) funds are generated statewide by one-quarter of all retail sales in a county. TDA funds may be used for transit projects, special transit projects for disabled persons, and bicycle and pedestrian purposes. TDA funds may be used, under certain conditions (if all the transit funding needs are fully met), for streets and roads. The City of Lodi receives an annual TDA apportionment to fund regional and municipal transit programs, bikeway improvements and other i n Lodi Redevelopment Agency IVA Report on the Plan ' Lodi Redevelopment Project April 2002 programs designed to reduce automobile usage. As available, TDA funds are also used for the City's street maintenance projects. In 2000/01, the City's apportionment totaled $1.8 million, which was used for transit operations and transit capital projects. TDA funds are assumed to be used (in combination with gas tax revenues) to help fund transit -oriented improvements in the proposed redevelopment program. C. County Measure K Sales Tax Measure K sales tax is a 1/2 -cent sales tax in San Joaquin County that is utilized to help fund specific transportation programs as outlined in the Measure K Expenditure Plan. The program was designed to ease congestion in the county, provide transit options, increase railroad -crossing safety and improve the county's air quality. In the past, Measure K has been used by the City of Lodi to leverage state and federal funding sources, enabling the following projects to move forward: Route 12/Kettleman Lane Interchange The City of Lodi, in conjunction with Caltrans, completed construction of the interchange improvements that widened Route 12 under the Route 99 overcrossing to four lanes, plus added turn lanes, improved ramps and relocated Beckman Road. Lodi Multimodal Station and Parking Structure The City recently completed a multimodal terminal that provides connections for local, intercity and interregional bus service, as well as future connections for rail service. The parking structure, currently under construction, accommodates long-term parking for Lodi Station transit users and provides for increased transit services in the future. Lodi Lake Bike Path Design was completed and funding sources were secured for Phase I of this bike path adjacent to Lodi Lake. Central City Rail Safety Project Design is currently underway for this project that will remove unused and unsightly railroad tracks on Lodi Avenue and will reactivate the Kentucky House Branch on Lockford Street. Measure K will expire in the year 2011, and no revenue from that source is anticipated beyond that year. The loss of Measure K revenues represents a significant loss for potential future projects, as evidenced by the following statement from the 2001 San Joaquin Council of Governments' Regional Transportation Plan: "The demise of Measure K in 2011 will have a major impact on our ability to fund transportation: system improvements. Measure K is used to support many regionally significant projects and provide match money for State and Federal transportation funds. An alternative local source of match money will have to be found to replace Measure K. "2 Measure K may only be used for specific improvements and programs as approved by the voter initiative, including rail crossing improvements, congestion relief, rail and bus programs, and local street repair programs. In 2000/01, the City of Lodi received $933,000 for local street repair. While in theory funding provided for local street repair may be used by a local jurisdiction as a local match for major street expansion programs (such as are proposed for the Project Area) there are other competing priorities throughout the City for these funds. It is therefore not anticipated to provide a significant source of funding for the proposed Redevelopment Program. 2 200 San Joaquin Council of Governments' Regional Transportation Plan, Chapter 5: Financing Transportation. Lodi Redevelopment Agency IV -5 Report on the Plan Lodi Redevelopment Project April 2002 d. San Joaquin Valley Air Pollution Control District's REMOVE Program State law provides air pollution control districts that are designated as state "non -attainment areas" for ' pollutants emitted by motor vehicles to receive a $4 motor vehicle registration surcharge fee to provide funds to meet responsibilities mandated by the California Clean Air Act (CCAA). The California Health and Safety Code states that the fees shall be used to support air district operated planning, monitoring, ' enforcement and technical studies necessary to implement the CCAA. Additional uses allowed include projects that reduce motor vehicle emissions such as those funded by the San Joaquin Valley Air Pollution Control District (SJVAPCD) REMOVE (REduce Motor Vehicle Emissions) Program. ' Each year the REMOVE Program Evaluation Committee for Motor Vehicle Emission Reduction Projects (Evaluation Committee) prepares a request for proposal (RFP) for projects that will reduce motor vehicle ' emissions within the SJVAPCD. The purpose of the REMOVE Program RFP is to attract projects that will assist the SJVAPCD in attaining the requirements of the CCAA. This is accomplished by allocating funds to cost-effective projects that have the greatest motor vehicle emission reductions resulting in long- range impacts on the air pollution problems in the San Joaquin Valley. The City of Lodi applied for and received $317,000 in funding from the REMOVE Program toward the construction of the parking structure to serve the new multimodal terminal in the Downtown. The projects and activities identified in ' the proposed Redevelopment Program do not qualify for funding under the REMOVE Program. 3. City of Lodi Funding Sources , The federal and state governments have continued to reduce funding and to shift costs of programs to cities and counties. In addition, many funding programs have a limited duration and are intended to fund only specific identified improvements. Unfortunately, cities and counties have only limited ability to raise , revenues to offset new costs or to replace other lost revenue. In addition to the limited ability to fund ongoing essential functions such as police and fire services, the City of Lodi is faced with major capital expenditures required to upgrade and maintain city facilities and infrastructure to meet the demands of ' growth. As a result, although some redevelopment activities may be partially supported with city funds, the City's General Fund and Enterprise Funds and cannot be relied upon as a major source of funding. Prior to the passage of the Proposition 13 property tax limitation initiative, local government entities in ' California (including cities) were able to fund many of their -ongoing general operating and capital improvement expenses by raising local property taxes. However, the restrictions placed on such practices by this constitutional amendment have resulted in a situation whereby property tax revenues can no longer be relied upon to offset increases in operating and capital costs attributable to inflation or demands for additional services or facilities generated by population growth. This situation, combined with the demise of federal revenue sharing programs in October 1986, and the problems inherent in competing for financing assistance from federal and state government programs, has made it exceedingly difficult for local government entities to collect sufficient annual revenues to finance long-term capital improvements. a. Gas Tax ' Gas taxes are generated statewide on gasoline sales and are allocated to local jurisdictions on a formula based on population and other factors. Gas tax revenues may be used for street maintenance and construction activities. The City's balance in its Gas Tax Fund at the beginning of FY 2000/01 was ' $1,064,862. An estimated $1,047,540 is expected to be generated in FY 2001/02. Gas taxes and TDA funds are the primary funds available to the City to fund circulation improvements. , The Redevelopment Program assumes that non -Agency sources, including Gas Tax and TDA funds will provide up to 75 percent of the funding for transportation improvements while the Agency will provide the balance of funding. ' Lodi Redevelopment Agency IV -6 Report on the Plan Lodi Redevelopment Project April 2002 , b. Enterprise Funds City Enterprise Funds recover the cost of providing goods and/or services to the public primarily through user charges. The City of Lodi has four enterprise funds: electric, water, wastewater and transit. While enterprise funds are expected to set fees and rates at levels which fully cover the direct cost of operations, capital outlay and debt service, the rate structures need to be sensitive to the ."market" for similar services, as well as to smaller, infrequent users of the service and the influence rates and fees have on economic development. This market restriction on cost recovery necessarily limits the level of capital repair and replacement that might occur on deteriorating facilities, such as those in the proposed Project Area. The City has historically used enterprise funds to fund necessary water distribution, storm drain and wastewater improvements. The Redevelopment Program assumes that these enterprise funds will provide up to 80 percent of the funding for water distribution, storm drain and wastewater infrastructure improvements in the proposed Project Area. C. Hotel Tax A hotel tax (called "transient occupancy tax" or TOT) is paid to the City of Lodi by lodging establishments based on 9 percent of room receipts (6 percent tax rate plus 3 percent surcharge) for "transient" hotel guests (less than 30 day stay). In 2000, the City received $332,547 in TOT revenues, which were entirely allocated to other programs, such as tourism and visitor attraction programs. Future revenues are anticipated to be allocated to programs to attract visitors to the City of Lodi and are not anticipated to be a major funding source for the proposed redevelopment program. Moreover, as noted in the previous chapter, TOT revenues in the Project Area have been declining over the past few years. d. Interest Income Interest income may accrue to an agency front the investment of tax increment revenues and tax increment bond proceeds. Actual income from this source is influenced by the amount of money available for investment, term of the investment, and achievable interest rates. Income from this source could be made available for a variety of redevelopment activities. However, such income is normally used as an offset against the cost of borrowing money. Much, if not all, of the interest income will likely be offset by the need for the Agency to pay interest on City loans and other indebtedness, including Agency issued bonds. 4. Funds Generated by Private Sector and/or New Development As permitted by law, in addition to local, state, and/or federal government funding sources, an agency can utilize funds from other sources, such as those generated by the private sector and/or new development. These funding sources and their potential applicability to the Lodi Redevelopment Project are discussed in the following paragraphs. a. Assessment Districts Assessment districts enable a city to levy additional taxes on property within designated areas in order to finance improvements directly benefiting those areas. Bonds are issued to finance local improvements such as streets, sidewalks and parking facilities. In a typical case, an assessment district is formed to undertake a particular public improvement, using the Improvement Act of 1911, and bonds are issued under the Improvement Bond Act of 1915. Upon the issuance of bonds, the district has the power to assess all property owners included in the district in order to repay the borrowed funds. An assessment district can be established as its own jurisdiction, or it can be included under a city's taxing system, assuming that the improvement is located entirely within a city's jurisdiction (in this case, it is termed an assessment area). Assessment districts are not limited by Proposition 13 or by Proposition 4. They place the costs of public facilities directly on the property owners who benefit. Lodi Redevelopment Agency IV -7 Report on the Plan Lodi Redevelopment Project April 2002 1 i Assessment districts have become a common mechanism for funding certain community improvements and could be a potential source of revenue for redevelopment activities in the Project Area, on a limited scale. It should be noted, however, that assessment districts increase site-specific improvements and long- term operating costs for private property owners. Furthermore, there is an inherent risk in forming an assessment district in that it might discourage potential development activity in areas targeted for revitalization and/or redevelopment. For these reasons, assessment districts are often a less desirable ' funding mechanism than other available options. and other street improvements on School Street, Pine Street, Oak Street and Cherokee Lane. The balance of the $3.5 million cost of improvements was contributed by the City's Enterprise Funds. Where Assessment districts are particularly problematic in older, developed areas like the Lodi Redevelopment Project Area, where property values are stagnant, retail sales are declining, and many property owners and businesses are operating on the economic margin with little or no room to add new financial obligations. ' In addition to these practical economic limitations, Proposition 218 makes the likelihood of assessment district financing even more problematic. Proposition 218, enacted in November 1996, limits the types of improvements and activities that can be financed through assessment districts, by imposing several , conditions on new (and some existing) assessment districts. First, it requires local governments to estimate the amount of special benefit (as distinguished from general benefit) landowners receive from the improvements. Property owners may be charged for only the cost of this special benefit. Local government must use general revenues to pay the remaining portion of the project or service's cost (i.e., general benefit portion). Second, local governments must ensure that no property owner's assessment is greater than the cost of providing the improvement to the owner's property. Third, benefited public properties are required to be included in assessment districts. Proposition 218 also creates a new mailed ballot voter approval mechanism that essentially makes it easier for property owners to defeat assessment ' district formations. Perhaps most importantly, Proposition 218 eliminates the ability of a city council to ' form a district over property owner disapproval and shifts the burden of proof to local governments to show that a challenged assessment is legal. In summary, Proposition 218 raises new legal hurdles that make it even less likely that assessment district financing would be a viable funding mechanism for any portion of the Lodi revitalization program. The City of Lodi currently has an assessment district in the Downtown and along Cherokee Lane (Lodi Central City Revitalization Assessment District No. 95-1), established in 1995 under the provisions of the California Streets and Highways Code, Municipal Improvement Act of 1913. The District encompasses approximately 273 acres, including streets and public rights of way, in the Downtown and along Cherokee Lane. Properties within the District pay an annual assessment, which is used to repay ' $2.8 million in bonds that were issued to partially fund the total $6.2 million cost of street furniture, trees and other street improvements on School Street, Pine Street, Oak Street and Cherokee Lane. The balance of the $3.5 million cost of improvements was contributed by the City's Enterprise Funds. Where financially feasible, the Agency will encourage the formation of additional assessment districts to help fund projects and activities outlined in the proposed redevelopment program. ' The following paragraphs present some examples of other assessment and special districts that could be formed as an additional source of funding for specific projects in Lodi, if found to be financially feasible. b. Lighting, Landscaping, and Maintenance District , Defined under the Landscaping and Lighting Act of 1972, facility installation and maintenance can be funded from the collection of special assessments on the land benefiting from the improvements. Facilities may include landscaping, statuary, fountains or ornamental facilities, public lighting facilities, and park or recreational equipment, including playground equipment, play courts, and public restrooms. Lodi Redevelopment Agency IV -8 Report on the Plan Lodi Redevelopment Project April 2002 ' C. Open Space Maintenance District An open space maintenance district, as authorized in Government Code Sections 50575-50620, may employ necessary labor and provide the required materials and equipment to maintain and operate planned open space and recreation areas. A city must have complete supervision, charge and control of all open space areas maintained. A city may also levy an annual ad valorem special assessment on the valuation of taxable land and improvements within the maintenance area. State law limits the levy amount. d. Benefit Assessment Act of 1982 Cities, counties and special districts may establish zones of benefit within which an assessment is levied. Benefit assessments can finance the maintenance and operation costs of drainage, flood control, and streetlight services and the cost of installation and improvement of drainage or flood control facilities. Maintenance of streets, roads and highways can also be funded. e. Parking District Authorized under the Parking District Law of 1943, a parking authority exists in every city and county in the state, subject only to the activation by the city council or county board of supervisors. Once activated, the parking authority can issue revenue bonds if a proposal for these bonds is approved by a majority of the voters. The bonds are secured by a pledge of total parking revenues, including revenues from parking meters, surface lots and parking structures. E Mello -Roos Community Facilities District The Mello -Roos Community Facilities Act of 1982 authorizes the formation of a Community Facilities District (CFD) to be used to finance capital improvement projects and to pay for ongoing operations and maintenance of certain facilities. It is similar to an assessment district, but is authorized under separate legislation with different regulations. A CFD may be established in conjunction with a redevelopment project to undertake new public projects of joint benefit. A CFD can levy special taxes and issue bonds to finance these improvements. The formation of a CFD would require Agency approval and would require the affirmative vote of two thirds of the property owners (weighted vote based on acres owned). Typically, Mello -Roos districts are difficult to form in urbanized areas such as Lodi given the two-thirds approval requirements for formation. g. Public Utility District Utility districts, including districts for providing water, irrigation, gas and electricity, sewer, solid waste, and hazardous waste facilities are generally empowered by California law to incur bonded indebtedness according to the revenues received from their operations. Under the Municipal Utility District Act, a municipal utility district that owns and operates an electrical distribution, water distribution, or sewage disposal system may issue bonds to construct or improve any part of its system pursuant to the Revenue Bond Law of 1941, which requires approval by majority vote of the residents of the district. According to the provisions of the respective bond law, public utility districts may also issue the following kinds of bonds: general obligation bonds, improvement bonds issued under the Improvement Act of 1911 or the Improvement Bonds Act of 1915, special tax bonds under the Mello -Roos Community Facilities District Act of 1982, revenue or bond anticipation notes, or certificates of participation. Special district issues of improvement bonds issued under the proceedings described in the Municipal Improvement Act of 1913 must be approved by the legislative body of any city or county having direct jurisdiction over any portion of the improvement district. As described earlier, the City of Lodi will continue to use this authority to fund necessary water distribution, storm drain and wastewater improvements. Lodi Redevelopment Agency IV -9 Report on the Plan Lodi Redevelopment Project April 2002 PBIDs require the creation of an advisory committee of property and business owners, ensuring that those who pay govern the district. Private property owners play an active role in the collaboration of the reinvestment in depressed areas. Business groups organize and prioritize the issues identified by the community. Once a majority of property owners reach consensus on a plan, it can be funded by PBID revenues. Funds from the PBID can be leveraged with CDBG and redevelopment funds to realize greater objectives. Funds can be used for capital costs although they are typically used for "clean and safe" programs, district promotions and marketing costs. Funds need to be leveraged to achieve larger results. L Development Impact Fees The City of Lodi has a comprehensive development impact fee program to fund fire and public safety , h. Business Improvement District (BID) , A business improvement district (BID) allows business districts to establish an assessment that generates ' revenue to support enhanced services, including maintenance, security, marketing and economic development. Two types of BID mechanisms exist under California law: "Business Improvement Areas" (BIAs) and "Property Based Improvement Districts" (PB1Ds). The Business Improvement Area has been ' used widely in the state, and provides for an additional fee to be added to annual business licensing , charges. However, due to the limited income generated through the business license fee, BIAs have typically had a relatively narrow scope of services. The City currently has a BIA in the Downtown. Established in 1997 by City Ordinance Number 1654, the Downtown Lodi Business Improvement Area (DLBIA) has a membership of approximately 220 business owners, professionals and merchants and is governed by the on -profit Downtown Lodi Business Partnership (DLBP). Businesses within the improvement area pay a mandatory annual assessment, which varies based on the type of business and the benefit zone within which the business lies. Revenues for the DLBP in 2001 were approximately $224,000, comprised of $36,000 in annual assessments, $47,000 from the City's General Fund, $114,000 from special fund raising events and $27,000 carry-over of previous year's funds. The DPBP funds cooperative advertising and marketing, promotional activities and special events that benefit DLBIA members, such as See's Candy sales, the Farmers Market, Halloween Festival, December Parade of Lights, and "Downtown Lodi Live." The DLBIA is not anticipated to be a funding source for any of the proposed redevelopment programs or activities. , In 1994, the Property and Business Improvement District Law provided for an assessment on commercial property, thereby paving the way for a new generation of PBIDs to eventually replace the existing BIAs. PBIDs can fund a wide range of activities, such as security, maintenance, economic development, promotion and management activities, as well as public improvements such as acquisition and maintenance of parking facilities, benches, trash receptacles, street lighting, decorations, parks, and fountains. The creation of a PBID requires petition support from businesses that would pay more than 50 percent of the annual fees to be collected in the proposed area. A PBID has a cap on assessments and a five-year maximum life, requiring a new petition process to renew. PBIDs require the creation of an advisory committee of property and business owners, ensuring that those who pay govern the district. Private property owners play an active role in the collaboration of the reinvestment in depressed areas. Business groups organize and prioritize the issues identified by the community. Once a majority of property owners reach consensus on a plan, it can be funded by PBID revenues. Funds from the PBID can be leveraged with CDBG and redevelopment funds to realize greater objectives. Funds can be used for capital costs although they are typically used for "clean and safe" programs, district promotions and marketing costs. Funds need to be leveraged to achieve larger results. L Development Impact Fees The City of Lodi has a comprehensive development impact fee program to fund fire and public safety facilities, streets, water and wastewater improvements. Impact fees are charged on all new private , development in the city to help pay for the costs of public facilities and infrastructure to serve the needs of future residents and businesses. Under applicable state laws regarding the imposition of development impact fees, such fees can be imposed on a new private development only to the extent that there is a direct nexus or relationship between the need for public facilities caused by such new development and the level of fees imposed. ' Such fees are specifically prohibited from being charged to alleviate existing deficiencies. The proposed redevelopment program is largely designed to eliminate blighting conditions through the removal or replacement of existing deficient improvements. Consequently, development impact fees collectable by Lodi Redevelopment Agency IV -10 Report on the Plan ' Lodi Redevelopment Project April 2002 the City will not be allowed to fund such improvements. To the extent proposed improvements are intended to serve new development in the Project Area, development impact fees may be used as a potential funding source, to the extent allowable by law. The drawback of relying on fees as a source of funding is the timing of their collection and subsequent availability, as compared to the funding need for the improvement. These fees can only be used on a pay- as-you-go basis and cannot be bonded as they are likely to fluctuate greatly from year to year. j. Developer and Property Owner Participation In many communities, developer participation has become a much more common vehicle for obtaining funds for redevelopment activities. For example, funds may be advanced to a redevelopment agency in the form of a grant or loan for public improvements, which are then repaid during the course of project implementation from tax increment revenues. These funds can contribute to selected projects; however, they are dependent on the level of development activity in the Project Area. Although the Agency is interested in pursuing such opportunities, such participation is speculative and cannot be counted on. Furthermore, development within the Project Area is constrained by physical and economic blighting conditions, and as a result, developer exactions are unlikely to generate any significant amount of funding as an offset to public implementation costs. Within the context of the forgoing considerations, it would not be prudent at this point for the Agency to base a long-term project on the ability of one (or more) prospective developer(s) to advance funds for redevelopment activities. However, the proposed Agency budget assumes private participation in certain of the redevelopment program activities. k. Private Donations Private donations by individuals, civic booster organizations, or corporate sponsors could make a minor contribution to the implementation of the Redevelopment Program. Donations could be used to fund all or part of minor streetscape improvements such as benches, entrance signage, directional signs, bicycle racks, or landscaping. However, in terms of the total funding needs of the Redevelopment Program, donations may be expected to provide only a very small part of the funding needed for the Redevelopment Program's'implementation. 1. Private Loan Assistance Congress created the Community Reinvestment Act (CRA) to encourage banks to invest in their local communities. The purpose of the CRA is to ensure that banks lend in all communities. All of the major banks in California have significant CRA loan programs. Although the CRA will assure that loan funds will be available for rehabilitation in the Project Area, banks will apply normal credit standards and do not provide subsidies. Other types of loan programs available through banks include the Federal Title 1 Program for housing rehabilitation and Small Business Administration programs for business creation or expansion. The purpose of Title 1 loans is to assist residential property owners to improve property and eliminate health and safety problems. Title I loans are for single family homes (up to $25,000) and multifamily developments (up to $60,000). Affordable housing loans and grants are also available through savings and loans institutions. In. Mills Act An owner of an eligible historic property may enter into a ten-year contract with a participating city to rehabilitate the building in exchange for a reduction in local property taxes. Owner occupied single family residences or income producing commercial properties may qualify for the Mills Act program. However, eligible properties must be listed on the National Register of Historic Places, be located in a National Lodi Redevelopment Agency IV -11 Report on the Plan Lodi Redevelopment Project April 2002 Register or local historic district, or be listed on a state, count or cit official register. While this could , g Y Y g be an applicable source of funds for historic preservation projects, it would require significant start-up , cost and resource dedication from the City of Lodi, since the City would have to adopt the Mills Act. n. Private Investment Private investment in the Project Area has been limited in most areas, as indicated by the blighting ' conditions. The private sector is unlikely to provide the extensive improvements necessary to revitalize ' the area. The blighting conditions are likely to continue or become worse without significant private investment in the Project Area. D. Other Funding Sources Considered to Be Infeasible , The CRL imposes specific time and fiscal limits on particular Agency activities. These time limits affect A variety of other funding sources were considered to fund the proposed Redevelopment Program, as discussed in the previous sections. As permitted by law, funds can be from local, state and/or federal government sources, and from private sector sources. However, to a large extent, existing resources for the proposed redevelopment program have been maximized. Other sources are dwindling or have been found to be clearly infeasible or to have little potential of generating measurable revenues. Due to the infeasibility of other funding sources, the Agency will rely on tax increment revenue as a major funding source for the proposed redevelopment program. E. Tax Increment Financing: the Primary Source of Funding ' 1. Introduction ' The primary source of financing for most redevelopment projects is tax increment revenue generated by the increase in property values within a project area. The detailed tax increment projections for a redevelopment project in the Project Area are contained in Appendix H of this report. , The CRL imposes specific time and fiscal limits on particular Agency activities. These time limits affect the amount of tax increment revenue an agency can receive. • Time Limit for Eminent Domain Powers The Agency can exercise its eminent domain powers for 12 years from the adoption of the redevelopment plan. Although this limit does not directly affect tax increment revenues, it could have an impact on the agency's ability to implement its redevelopment program. • Time Limit to Incur Debt The Agency's ability to enter into new bonded indebtedness is limited to 20 years from the adoption of the redevelopment plan. • Time Limit to Receive Tax Increment and Repay Debt The Agency can collect tax increment for 45 years to repay debt. Thus, the Agency has 25 years to repay bonds issued in year 20, the last year for issuance of debt. The Agency can continue to repay debt for 15 years after it has completed all project activities. • Limit on Amount of Outstanding Bonded Indebtedness The Redevelopment Plan must contain limits regarding the total amount of outstanding bonded indebtedness secured by tax increment revenue. The Agency intends to limit the amount of outstanding bonded indebtedness over the life of the Plan to $100 million. ' Based on the assumptions outlined in this chapter, the tax increment available for the proposed Redevelopment Program (both housing and non -housing activities) over the 45 year life of the Redevelopment Plan would be sufficient to meet the costs of the Program, which cannot reasonably be i Lodi Redevelopment Agency IV -12 Report on the Plan Lodi Redevelopment Project April 2002 financed from other sources. Refer to the tables in Appendix H for detailed analysis of potential tax increment revenues for the proposed Redevelopment Project. The Redevelopment Agency may also accept financial or other assistance from any public or private source for purposes of redevelopment consistent with the CRL and the Redevelopment Plan. However, as described in the previous section, in the City of Lodi, funding from other reasonably available private and public funding sources is available for only a portion of the proposed projects. 2. Using Tax Increment Revenue to Eliminate Blighting Conditions The general purpose of redevelopment is the elimination of blighting conditions. The completion of a redevelopment program results in a project area that is physically enhanced and economically stronger. Substantial evidence of physical and economic blight within the proposed Project Area was provided in Chapter 11. The Redevelopment Program described in Chapter III is specifically designed to stimulate private investment and alleviate physical and economic blighting conditions in the Project Area. The use of tax increment revenue is the most appropriate means of providing sufficient funding for the Redevelopment Program. 3. Stabilizing and Enhancing the Property Tax Base In many communities, the adoption and implementation of redevelopment programs has led to the stabilization of tax rolls and tax receipts for taxing entities within project areas. As a result, these communities have avoided declines in tax revenues due to worsening conditions and the erosion of property values. In most redevelopment project areas, the use of public redevelopment funds to provide public investment to leverage private investment has resulted in substantial increases in property values over time due to rehabilitation, new construction and property appreciation. 4. Establishing a Frozen Base The first major step in the implementation of a tax increment financing program is accomplished at the time of formal redevelopment plan adoption. The total value of taxable property within a project area's boundaries at the time of adoption is determined, and a base year for tax increment purposes is established. The tax roll used is formally called the "base year assessment roll", more commonly referred to as the "frozen base". The establishment of a frozen base provides for a segregation of assessed values between existing values and enhanced values deriving from future redevelopment of a project area. Future property taxes related to increases over the frozen base assessed value are referred to as incremental taxes or tax increment. Tax increment revenues are projected by applying the property tax rate to the incremental assessed value over the frozen base. The frozen base is the total assessed value of property in a project area, including homeowners' exemptions, at the time the Redevelopment Plan is adopted.' 5. Distribution of Property Taxes during Project Implementation Following adoption of a redevelopment plan, all of the entities that levy taxes in a project area, such as the county, city, school districts, and special assessment districts, continue to receive all property tax 3 The official County Fiscal Officer's Report for the proposed Project Area is provided in Appendix G, and includes locally assessed value plus homeowners' exemptions plus state -assessed property as reported by the State Board of Equalization. Lodi Redevelopment Agency 1V-13 Report on the Plan Lodi Redevelopment Project April 2002 revenues accruable from the frozen base. In addition, they will receive a portion of the property tax revenues generated from the increases in assessed value over the frozen base. These additional payments are called "pass-through payments" (see Section F.5 for a detailed explanation of the calculation of pass- through payments). Table IV -2 lists the taxing entities and percent distribution of property taxes among the entities. Table IV -2 Property Tax Distribution Lodi Redevelopment Project Area Taxing Entity Percent Share 1. General Fund 2. County General Fund 16.4% 21.7% 3. Lodi Unified Schools 27.6%_ 4. San Joaquin Delta Community College 3.9% 5. County Office of Education 1.4% _ 6. San Joaquin County Flood Control _ 0.2% 7. San Joaquin County Mosquito Abatement 8. North San Joaquin Water Conservation 0.8%� 0.5% 9. Education Revenue Augmentation Fund 27.6% TOTAL 100.0% Note: These factors are adjusted for the Educational Revenue Augmentation Fund (ERAF). The City General Fund and County General Fund contribute to ERAF. Totals may not add up to 100 percent due to rounding. Source: San Joaquin County Auditor -Controller, January 2002. Increased property tax revenues above the frozen base and after payment of obligations are allocated to the sponsoring redevelopment agency to be used to fund the costs of implementing the Redevelopment Program. The agency may pay for the project on an ongoing (pay-as-you-go) basis, or it may borrow funds (issue bonds) to be repaid by future tax increment revenues. 6. Distribution of Property Taxes after Project Completion When a redevelopment project is completed and loans or other indebtedness have been repaid, all property taxes flow back to the respective taxing entities. These entities then benefit from increases in property tax revenues resulting from a revitalized and redeveloped project area. In many communities, such increases are substantial. In fact, over time, taxing entities can recoup sufficient revenues following project completion to make up for the property tax revenue that was used for tax increment during the redevelopment implementation period. This would occur because the increases in assessed valuation from project area revitalization are sufficiently greater under redevelopment than the assessed valuation increases that would realistically occur without redevelopment. Thus, payments to the affected taxing entities resulting from new development and reassessments at the time of property transfers can exceed the normal property taxes that the taxing entities would receive from a slow growing assessed valuation roll without redevelopment. i i i J i 1 Lodi Redevelopment Agency 1V-14 Report on the Plan ' Lodi Redevelopment Project April 2002 F. Assumptions Used in Tax Increment Projections The primary source of funding for the Lodi Redevelopment Project will be tax increment financing. It is the most reliable source of long term funding and the only source that will generate enough funds to. meet the cost of the proposed Redevelopment Program. Refer to the tables in Appendix H for a detailed analysis of potential tax increment revenues for the proposed Redevelopment Project. The projections in this report are based upon Seifel Consulting's understanding of the general assessment practices of San Joaquin County. These practices are subject to policy changes, legislative changes, and the individual appraiser's judgment. While Seifel Consulting believes its estimates are reasonable, taxable values resulting from actual appraisals and adjustments are likely to vary from the amounts assumed in the projections. The tax increment projections are intended only as estimates, which are based on the best available information as of January 2002. Actual tax increments may be higher or lower than indicated in the model. The development projections shown in Appendix H are not intended to predict future development, but rather to provide a reasonable estimate, on an annual basis, of potential tax increment growth resulting from the increase in assessed value resulting from new development. 1. Present Value Assumptions The analysis below provides estimates of tax increment revenues in both future value (nominal) dollars and present value (constant) dollars. The purchasing power of nominal dollars would decline because of inflation and/or the cost of borrowing. Therefore, it is important to convert the annual amounts to the equivalent value in constant 2002 dollars before making a direct comparison between potential revenues and project costs. The present value in 2002 dollars was calculated by discounting future tax increment revenues by an annual rate of 5.5 percent. As the discount rate increases, the present value figure decreases. This discount rate is estimated to be equivalent to the average cost of funds for the City of Lodi and its Redevelopment Agency. It accounts for thecost of inflation, as well as the cost of borrowing money, to approximate the present value of future dollars. Most tax increment will be pledged to the issuance of debt, and only a portion of tax increment will be used on a pay as you go basis. 2. Frozen Base The base year for the proposed Project Area will be Fiscal Year (FY) 2001/02, as provided in the San Joaquin County Fiscal Officer's Report (Section 33328 Report). The base year assessed value is $540.2 million. 3. Growth Assumptions Tax increment revenues are generated from the growth in assessed value above the frozen base. Growth in assessed property values in the proposed Project Area is based upon the following three factors: a. Annual Inflation Rate The annual inflation rate is assumed at two percent per year for secured properties that remain in the same ownership. Two percent is the maximum annual increase allowed by the California State Constitution as a result of Proposition 13. This inflation factor is applied to the assessed value of secured property. Unsecured and state -assessed property is conservatively assumed to remain constant. Lodi Redevelopment Agency IV -15 Report on the Plan Lodi Redevelopment Project April 2002 b. Reassessment Adjustment An annual reassessment adjustment, assumed at one percent, represents the increases in assessed value following property reassessment, which is triggered by: (1) the transfer (sale) of real property, (2) upgrading of real property improvements due to rehabilitation or additions to existing buildings, or (3) the reassessments of new development to market value once construction is completed. ' C. New Development The projection for the incremental value from new development is based on estimates of growth that will , occur with new construction and redevelopment of residential, commercial and industrial properties. These estimates conservatively assume that only 85 percent of the projected buildout for the Project Area, as evaluated in the Environmental Impact Report (EIR), will actually occur. (Refer to the development tables in Appendix H for detailed annual development schedules in the Project Area.) Graph IV -1 illustrates the growth in assessed valuation based on these growth assumptions for the Project Area. i i t 11 1 11 Lodi Redevelopment Agency 1V-16 Report on the Plan Lodi Redevelopment Project April 2002 1 k O Lit i I Q Qi t !WW.,� I A ~' z m"n CDi I �y I iJ (;kii M ! t�q 1 N T &S 5 ,�/ a u'1 b �+ ; W 41 V • �'_. 1 it I �,° k "�` as •� 1 L 4wA p y ! Cn 1 M-, S y v tF h3 3 '*z 4 i in co cz CD s • �j O I � 1 1 � s" � �� 'fir 1 1 1 1 1 1 N Co CD 0 �} C 1 C o o C N N -+ lb } anjun passassd 4. Agency Tax Increment Obligations Incremental property tax revenues are projected by applying the effective property tax rate, assumed at one percent, to the estimated increased assessed value over the frozen base. The Agency must use the tax increment revenues to fulfill the following obligations: , • County Retention Fee for Property Tax Administration Counties typically retain fees for the administration of tax increment revenues. The projections in this Report include this potential San Joaquin County administration fee deduction, assumed at , 1.5 percent of gross tax revenues. • Statutory Pass-through Payments Each taxing entity deriving property tax revenue within the Lodi Project Area is guaranteed an annual , payment from the Agency. These payments are termed pass-through payments because the Agency would forward this portion of tax increment revenues to the taxing entities. The CRL provides standard formulas for the calculation of pass-through payments. Each entity would receive a payment in proportion to its property tax levy within the Project Area at the time of Plan adoption. The pass- through payments constitute the State Legislature's determination of the amount of payments necessary to alleviate any financial burden of a redevelopment program to affected taxing entities. Health and Safety Code Section 33607.5(f)(1)(B) states that statutory pass-through payments are the exclusive payments that are required to be made by a redevelopment agency to affected taxing entities during the term of a redevelopment plan. (See Section F.5 below for further details on these payments.) ' • Additional Payments to Basic Aid Entities Basic aid school entities receive annual payments from an agency in addition to their standard pass- through. No basic aid districts have been indicated in the Project Area. • Set -Aside for Housing Program Section 33334.2 of the CRL requires that 20 percent of the gross tax increment revenues collected by ' the Redevelopment Agency be used for increasing and/or improving the community's supply of low and moderate income housing. In other words, approximately 20 cents out of each tax dollar allocated to the Agency during the life of the Project Area must be channeled into a Housing Set -Aside Fund to finance the Agency's programs for affordable housing. Administrative costs related to the implementation of the Housing Program are paid out of the Housing Set -Aside Fund. • Debt Service Obligations An agency must make annual debt service payments on outstanding indebtedness. Most agencies issue bonds to undertake projects because sufficient tax increment revenues are not likely to be generated for a number of years after initiating the Redevelopment Plan. The Agency will incur debt obligations as a result of issuing bonds. The cost of paying off the principal and interest of this bond debt is accounted for by applying a higher present value discount rate, which is equal approximately to the cost of borrowing funds for the City. (Refer to the discussion of present value assumptions in section D.1 of this chapter.) , • Agency Administration Non -reimbursable Agency administrative costs are projected at 10 percent of tax increment for non- housing projects. As mentioned above, this figure does not include the administrative costs for the , Affordable Housing Program. After meeting the above obligations, the remaining tax increment revenues are available to the Agency to fund the Non -Housing Redevelopment Program described in Chapter III of this Report. Lodi Redevelopment Agency IV -18 Report on the Plan Lodi Redevelopment Project April 2002 , 5. Calculation of Pass -Through Payments Over the life of the Redevelopment Project, each taxing entity will receive its proportionate share of pass- through payments, calculated for three tiers. Each taxing entity receives an amount equal to its property tax levy multiplied by the increase in assessed value above the relevant pass-through base assessed value, then multiplied by a mandated pass-through percentage for each of three tiers. • Tier One 20 percent of the gross tax increment received by the Agency from assessed value growth above the frozen base (equivalent to 25 percent of the net tax increment after the Agency's 20 percent of the housing set-aside is deducted). This annual payment begins when the Agency first receives tax increment revenues. Pass-throughs are the same as the Housing Set -Aside amount for the first ten years of the Project. The City of Lodi can elect to receive the tier one pass-through (its proportionate share of 20 percent of gross tax increment). However, it then cannot participate in the tier two and tier three pass- throughs. This Report on the Plan assumes that the City of Lodi will elect to receive its share of the pass-through, although the City has the option to forego these pass-through payments. Over the life of the proposed Redevelopment Plan, the City of Lodi's pass-through payments from tax increment are projected to total almost $2 million in constant 2002 dollars. Tier Two 16.8 percent of the gross tax increment received by the Agency from assessed value growth above the tier two pass-through assessed value base, equal to the Project Area assessed value in the tenth year of tax increment collection. This annual payment begins in the eleventh year during which the Agency receives tax increment revenue. This tier two pass-through is added to the tier one payment and continues through the life of the Redevelopment Project. Tier Three 11.2 percent of the gross tax increment received by the Agency from assessed value growth above the tier three assessed value base, equal to the Project Area assessed value in the thirtieth year of tax increment collection. This annual payment begins the thirty-first year during which the Agency receives tax increment revenue. This tier three pass-through is added to the tier one and tier two payments and continues through the life of the project. County Auditor -Controllers must contribute to the Educational Revenue Augmentation Fund (ERAF) on behalf of certain taxing entities within their jurisdictions. To make these payments, an Auditor -Controller may adjust the levies of taxing entities, resulting in a decrease in their share of the total property tax. The remainder of property tax is forwarded to ERAF. Not all entities must contribute a share of their property tax to ERAF in this way. For example, school districts and taxing entities whose boundaries extend across multiple counties are not affected. In San Joaquin County, the Auditor -Controller adjusts downward the levies for all entities in each tax rate area that contribute to ERAF and creates a separate ERAF "levy" to reflect the sum of their contributions to ERAF for each tax rate area. The preliminary County Fiscal Officer's Report contained in Appendix G lists the property tax levies adjusted for ERAF for all of the affected taxing entities in the Project Area. This Report on the Plan utilizes the property tax levies that are adjusted for ERAF for the purpose of calculating pass-through payments, although State Law does not clearly indicate whether or not ERAF adjusted or unadjusted property tax levies should be used. The distribution of the property taxes from the base assessed value is based on these ERAF adjusted factors, after adjusting for the ERAF portion of the County's contractual pass-through in the Original Area. Lodi Redevelopment Agency IV -19 Report on the Plan Lodi Redevelopment Project April 2002 4 Figures may not tally due to rounding. Lodi Redevelopment Agency 1V-20 Report on the Plan Lodi Redevelopment Project April 2002 G. Tax Increment Projections 1. Incremental Tax Revenues The assessed value of the Project Area is projected to grow by over $1.5 billion (over the base assessed , value of $540.2 million) during the 45 -year tax increment collection. Incremental tax revenues are generated by the growth in the assessed value of the Project Area over the base assessed value. Graph IV -I (shown previously) illustrates the projected growth over the base assessed value, attributable to inflation on properties that remain in the same ownership, new development, and reassessments. The projections shown in Table IV -3 represent total revenues to the Agency over the 45 -year life of the Project. Tax increment revenues will actually accrue over time, with limited revenues in the early years of implementation, which will grow as the assessed value of the Project Area increases. Graph IV -2 illustrates the growth of tax increment revenues over time, in future value dollars. The graph ' shows tax increment growth over the base year property taxes through the life of the Project. This graph also shows the distribution of tax increment revenues over time among affected taxing entities, affordable housing activities and non -affordable housing activities. Detailed annual tax increment projections are , presented in Appendix H. Table IV -3 , Summary of Tax Increment Projections Lodi Redevelopment Project Future Value Present Value (Nominal Dollars)° (Constant 2002 Dollars) Incremental Tax Revenues $290,600,000 $60,700,000 Less: County Property Tax Administration 4,400,000 900.000 , Tax Revenues Remitted to Agency 286,300,000 59,800,000 Less: Pass-Throughs to Taxiing Entities 98,300,000 18,700,000 Less: Debt Obligation 0 0 ' TI Available to Agency After Obligations 187,900,000 41,100,000 Less: Housing Set -Aside 58.100.000 12.100.000 Tax Increment Available for Non -Housing Program 129,800,000 29,000,000 Less: Agency Administration Costs 13.000.000 2 90. 0,000 Tax Increment Available for Non -Housing Projects $116,900,000 $26,100,000 Graph IV -3 summarizes the distribution of tax increment revenues over the 45 -year life of the Project (in constant 2002 dollars). 4 Figures may not tally due to rounding. Lodi Redevelopment Agency 1V-20 Report on the Plan Lodi Redevelopment Project April 2002 1 1 t - 1 � 1 IL • Pl Cd • �� • 164 cu • r • • s Cd •• . fw 14 • � \1 1 .1 .1 :I :I :I i� CU C13 d) • • • • • •CD • • • • • • • • • • • • • • • • • • • Graph IV -3 Distribution of Tax Increment Revenues Proposed Lodi Redevelopment Project Area (Constant 2002 Dollars) Housing Programs 20% ($12.1 Million) Pass -Through Payments 31% 8.7 Million) Non -Housing Projects 44% ($26.1 Million) Agency Administration (Non-Hsg) S% ($2.9 Million) Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project IV -22 April 2002 2. Tax Increment Available for Affordable Housing Activities About $58 million in nominal dollars, 20 percent of gross tax increment revenues, is projected to be contributed to the Housing Set -Aside Fund. This amount is equivalent to about $12 million in constant 2002 dollars. The 20 percent Housing Set -Aside funds will be the primary source of funding for affordable housing in the Lodi Redevelopment Project. Any excess tax increment after debt service for the Non -Affordable Housing Redevelopment Program will also be available to the Agency. 3. Tax Increment Available for Non -Housing Activities After fulfilling its affordable housing, pass-through obligations, it is projected that tax increment revenues available to fund the Agency's Non -Housing .Redevelopment Program and associated administrative costs would be about $130 million in nominal dollars. This amount is equivalent to about $29 million in constant 2002 dollars. H. Financial Feasibility of the Proposed Redevelopment Project This section demonstrates why tax increment revenue made possible through the proposed Redevelopment Plan will be a necessary part of the overall financing program to eliminate blighting conditions in the proposed Project Area. By utilizing tax increment revenue, the Agency has a feasible plan for financing the redevelopment program to alleviate blight. Together with other public and private revenue sources, tax increment financing will be a critical funding component in helping the City of Lodi meet the costs required to implement the Redevelopment Program. To evaluate the feasibility of the proposed Redevelopment Project, the following analysis compares the Redevelopment Program's costs and tax increment revenues. As previously shown in Table IV -1, the net cost to the Agency to complete the proposed Redevelopment Program (excluding non -housing Agency administrative costs) is approximately $36.5 million in constant 2002 dollars. The Agency is projected to receive about $41.1 million in tax increment revenue for the Redevelopment Program (in constant 2002 dollars). The Agency is expected to require about $12.1 million for affordable housing, $24.3 million for other non -housing activities, and $2.9 million for non -housing administration. Thus, the Agency will have sufficient funds to support its Redevelopment Program, but little available surplus as shown in Table IV -4. Lodi Redevelopment Agency IV -23 Report on the Plan Lodi Redevelopment Project April 2002 Table IV -4 Comparison of Estimated Tax Increment Revenues and Funding Requirements (2002 dollars) Tax Increment Available for Projects $41.1 million Less: Housing Program Fund Requirements $12.1 million Less: Projected Administration Expense for Non -Affordable Housing Activities $2.9 million Less: Non -Housing Program Funding Requirements $24.3 million Funding Surplus $1.8 million Although the estimated project costs and the projected revenues will vary over time from those set forth in the estimates and projections presented in this chapter, it is reasonable to conclude that the Redevelopment Project is financially feasible within the 45 year duration of the Plan.' I. Reasons Why Tax Increment Financing Is Necessary This chapter demonstrates the general economic feasibility of the proposed Redevelopment Project and the reason for including the provision for the division of taxes pursuant to Section 33670 in the Redevelopment Plan, as required by law. As discussed in this chapter, the costs to alleviate documented blighting conditions substantially exceed available funding from public and private sources. Tax increment financing (as outlined in Section C of this chapter) is the only source available to the community to fill the substantial gap between the costs of the Redevelopment Program and other public and private revenue sources. Because these projects and activities are critical to the revitalization and conservation of the Project Area, tax increment financing is needed to assist in funding these projects. Tax increment financing has been and will continue to be the critical funding source that will help the City fund the Redevelopment Program's cost. The private sector alone cannot financially support the substantial costs of the proposed Redevelopment Program. Because these projects and activities are critical to the revitalization and conservation of the proposed Lodi Project Area, tax increment financing is needed to assist in funding these projects. Tax increment financing will be the critical funding source that will help the City of Lodi fund the Redevelopment Program's cost. 5 Present value of future tax increment revenues projected to be available for implementation of the Redevelopment Program (includes housing, non -housing and non -housing administration costs). See Appendix H for details. e See Table IV -1. ' The tax increment projections are intended only as estimates, which are based on the best available information as of January 2002. Actual tax increments may be higher or lower than indicated in the model. The development projections shown in Appendix H are not intended to predict future development, but rather to provide a reasonable estimate, on an average annualized basis, of potential tax increment growth resulting from the increase in assessed value resulting from the new development. 1 i r] r s Lodi Redevelopment Agency 1V-24 Report on the Plan ' Lodi Redevelopment Project April 2002 V. Implementation Plan (July 2003 to June 2008) A. Background Sections 33490 and 33352(c) of the CRL require that a redevelopment agency adopting a redevelopment plan prepare and adopt a five-year implementation plan for a project area. The purpose of the implementation plan is to describe: • The specific goals and objectives of an agency for a project area. • The specific projects proposed by the agency, including a program of both non -housing and affordable housing actions and proposed expenditures within the first five years of the plan. • How the agency's proposed objectives, projects, and expenditures will help to eliminate blight in the project area (as described in Section 3303 1) and implement the affordable housing requirements (as described in Sections 33334.2, 33334.4, 33334.6 and 33413). This Implementation Plan is designed to guide the Agency's efforts in eliminating blighting conditions in the Project Area while meeting other Agency objectives as required by the CRL. In addition, the affordable housing component of the Implementation Plan provides a mechanism for the Agency to monitor its progress in meeting its affordable housing obligations under the CRL. In effect, the Implementation Plan is the Agency's general plan of action for the first five years, providing flexibility so the Agency may adjust to changing circumstances and new opportunities. This plan also includes the Agency's Affordable Housing Production Plan, also known as the AB 315 Plan, as required by Section 33413 of the CRL. The planning period specifically covered by this Implementation Plan for the Lodi Redevelopment Plan is the period from July 2003 through June 2008. This period includes the first five years in which the Agency would be entitled to receive tax increment revenue from the Project Area if the Redevelopment Plan is adopted in the summer of 2002. In addition, information for later years is provided in the housing component of this Implementation Plan as required by Section 33413. The affordable housing production plan contained in Section H covers the five year period from July 2003 to June 2008, the ten-year period through June of 2013, and a third period from July 2013 to the end of the Redevelopment Plan term. The Implementation Plan is intended to be a program level document, therefore the implementation of specific projects and activities over the five year period may vary in timing, location, cost, expenditure, scope, and content from what is set forth in this document. The Agency will use this Implementation Plan as a flexible guide as unforeseen constraints and opportunities will most likely arise while undertaking this program. Section B of this plan describes the objectives of the Redevelopment Plan. Section D summarizes the five-year action program for non -housing activities. Sections E through H address affordable housing obligations, production goals, activities, and proposed schedule of expenditures, as well as present the Agency's Affordable Housing Production Plan (also known as the AB 315 Plan). Assuming adoption in July 2002, the Agency can begin to receive tax increment in FY 2003/2004. The first installment of tax increment would likely be allocated to the Agency in January 2004. Lodi Redevelopment Agency V-1 Report on the Plan Lodi Redevelopment Project April 2002 B. Objectives of the Redevelopment Plan The five year goals and objectives set forth below are based upon the statement of goals and actions contained in the Redevelopment Plan for the Lodi Redevelopment Project which are incorporated into this Implementation Plan by this reference. The goals and actions expressed in the Redevelopment Plan are comprehensive in nature and pertain to the total redevelopment program that has an implementation ' period of 30 years. The goals and objectives of the proposed Redevelopment Project emphasize eliminating physical and economic blighting conditions that interfere with successful revitalization of commercial areas and the enhancement and conservation of residential neighborhoods within the Project I Area. In general, the proposed Redevelopment Project would: • Revitalize certain areas in Lodi that exhibit both physical and economic blight; • Stimulate private investment in Lodi's commercial areas; • Promote the conservation and enhancement of residential neighborhoods; and , • Provide tax increment funds for the redevelopment activities that are needed to alleviate blighting conditions. ' C. Adverse Physical and Economic Conditions and Elimination of Blight The Implementation Plan is required to provide an explanation of how the goals, objectives, programs and expenditures for the first five years will serve to eliminate blight in the Project Area. As background, it is first useful to summarize the blighting influences that affect the Lodi Redevelopment Project Area (please refer to Chapter II for a comprehensive discussion of blighting conditions). In summary, eight of the nine blighting conditions, as defined by Section 33031(a) of the CRL, were found to exist in the Project , Area. a. Adverse Physical Conditions • Deficient or Deteriorated Buildings. • Factors that Inhibit Proper Use of Buildings or Lots. • Incompatible Uses. • Substandard Lots in Multiple Ownership. b. Adverse Economic Conditions • Depreciated or Stagnant Values and Impaired Investments. • Economic Indicators of Distressed Buildings or Lots. • Residential Overcrowding or Problem Businesses. • High crime rate. , As discussed in Section E below, the Redevelopment Program for the Lodi Project Area will alleviate the blighting conditions described in Chapter II. Section E describes the deficiencies to be corrected by projects proposed for the first five years of tax increment collection. The five-year action program shown in Section E will initiate the process of improving the area and alleviating those blighting conditions. Table V-1 provides a matrix summarizing the relationship between proposed projects and how they will eliminate blight_ Lodi Redevelopment Agency V-2 Report on the Plan Lodi Redevelopment Project April 2002 , Table V4 How Redevelopment Program Will Eliminate Adverse Conditions Lodi Redevelopment Project Area *Although not considered physical or economic blight under the CRL, the existence of deficient public improvements is recognized as a deterrent to economic growth in the Project Area. Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project V'3 April 2002 Redevelopment Program n c ADVERSE CONDITIONSGO 5 m 0 0 O r rfl w o - CD <y CDtr n w b CD x rwY n D as T O Vi � 1 2 3 4 5 6 Deficient or Deteriorated Buildings ■ ■ ■ ■ Factors that Inhibit Proper Use of Building or Lots ■ ■ ■ ■ ■ ■ Incompatible Uses ■ ■ ■ Substandard Lots in Multiple Ownership ■ ■ ■ Depreciated or Stagnant Values and Impaired Investments ■ ■ ■ ■ ■ Economic Indicators of Distressed Buildings or Lots ■ ■ ■ ■ ■ Residential Overcrowding ■ ■ High Crime Rate ■ ■ ■ Deficient Public Improvements* ■ ■ ■ ■ *Although not considered physical or economic blight under the CRL, the existence of deficient public improvements is recognized as a deterrent to economic growth in the Project Area. Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project V'3 April 2002 i .1 D. Five Year Action Program for Non -Housing Redevelopment ' Activities This section describes the proposed Non -Housing Redevelopment Program, including the deficiencies to , be corrected, project descriptions, and the estimated project costs. As they are implemented, these projects may be modified over time to better serve the purposes of redevelopment. The cost estimates are preliminary and subject to refinement as the Redevelopment Program planning and implementation proceed. Some of these projects may not be completed within the first five years of the Redevelopment , Program, and thus, related costs may not be incurred in the first five years. These activities are grouped in the following categories: 1. Economic Development ' 2. Building & Site Rehabilitation, Facade Improvement and/or Historic Preservation 3. Public Infrastructure and Facilities ' 4. Neighborhood Preservation, Circulation and Landscaping Improvements 5. Site Preparation and Development , 1. Description of Non -Housing Program Economic Development During the first five years of the project, the Agency will encourage office uses in Downtown Lodi, create a strategy to attract and retain businesses to the Project Area and support commercial buildings and lodging along Cherokee Lane. Building & Site Rehabilitation, Fagade Improvement and/or Historic Preservation ' The Agency will assist with facade improvement in the Downtown and other areas, establish development standards and design guidelines to improve the appearance of buildings and businesses and support rehabilitation, seismic improvement and historic preservation efforts. Public Infrastructure and Facilities The Agency will assist in public infrastructure and facilities improvements. The Agency will accomplish these goals by implementing storm drain, wastewater and water distribution improvements in the Project ' Area. Neighborhood Preservation, Circulation and Landscaping Improvements During the first five years of the project, the Agency will emphasize neighborhood preservation, circulation and landscaping improvements by updating code enforcement efforts and development standards for multifamily residences. , Site Preparation and Development Based on available revenues during the first five years of the project, the Agency does not anticipate expending funds on site preparation and development. However, to the extent additional revenues are available, they may be applied to assembling sites, facilitating hazardous materials cleanup, and/or relocating incompatible uses to facilitate the redevelopment program. I Lodi Redevelopment Agency V-4 Report on the Plan , Lodi Redevelopment Project April 2002 2. Five Year Implementation Plan Revenues Based on tax increment projections presented in Chapter IV and Appendix H of this Report, the Agency is projected to receive approximately $1.3 million dollars in tax increment revenues for non -housing activities and administration during the five year Implementation Plan period (2003 to 2008) in constant 2002 dollars.' - Table V-2 summarizes the funds available to cover projected non -housing program costs (net of Agency non -Housing administrative expense) during the first five years of the Redevelopment Project. Table V-2 Projected Tax Increment Revenues For Non -Housing Activities' FY 2003-2008 Lodi Redevelopment Project Fiscal Year Nominal Dollars Constant 2002 Dollars 2003/04 $169,000 $152,000 2004/05 $245,000 $209,000 2005/06 $330,000 $267,000 2006/07 $419,000 $320,000 2007/08 $529,000 $384,000 Total $1,692,000 $1,332,000 'These figures are net of Agency Non -Housing Administrative expenses. Source: Seifel Consulting Inc. 3. Five Year Implementation Plan Expenditures Table V-3 summarizes estimated Agency non -Housing program expenditures during the first five years of the project. The nature and scope of the projects and expenditures have been shaped primarily by Agency objectives for the Project Area, available revenues for funding projects and activities, and blighting factors to be eliminated within the Project Area. Refer to Chapter III of this report for a more complete description of the Redevelopment Program and estimated expenditures. The estimated Agency expenditures included in Table V-3 represent an estimate based on reasonable assumptions regarding potential tax increment revenues over the first five years of the Redevelopment Plan, as described in Chapter 1V. See Chapter IV for a detailed description of projected revenues and expenditures. Agency administration related to non -housing projects will also be paid out of tax increment revenues and are netted out of figures shown above. Lodi Redevelopment Agency V-5 Report on the Plan Lodi Redevelopment Project " April 2002 Table V-3 Projected Non -Housing Program Expenditures FY 2003-2008 Lodi Redevelopment Program in Constant 2002 dollars As indicated above, the Agency estimates expenditures of approximately $1.3 million in non -housing programs during the first five years and is projected to receive approximately $1.3 million in tax increment revenues to cover these programs. An additional $148,000 in Agency non -housing administrative expense will also be covered through tax increment revenues. Thus, tax increment revenues are projected to be sufficient to cover the Agency's planned expenditures for non -housing projects over the first five years of tax increment collection. i J 0 11 Lodi Redevelopment Agency V-6 Report on the Plan ' Lodi Redevelopment Project April 2002 PROGRAM CATEGORIES Net Cost to Agency 1. Economic Development $250,000 2. Building & Site Rehabilitation, Facade Improvement and/or Historic Preservation $260,000 3. Public Infrastructure and Facilities $272,000 4. Neighborhood Preservation, Circulation and Landscaping Improvements $250,000 5. Site Preparation and Development $0 6. Recovery of City Advances to Agency $300,000 Subtotal Non -Housing Costs $1,332,000 Non -Housing Admin. Costs $148,000 Total Non -Housing Costs $1,480,000 As indicated above, the Agency estimates expenditures of approximately $1.3 million in non -housing programs during the first five years and is projected to receive approximately $1.3 million in tax increment revenues to cover these programs. An additional $148,000 in Agency non -housing administrative expense will also be covered through tax increment revenues. Thus, tax increment revenues are projected to be sufficient to cover the Agency's planned expenditures for non -housing projects over the first five years of tax increment collection. i J 0 11 Lodi Redevelopment Agency V-6 Report on the Plan ' Lodi Redevelopment Project April 2002 E. Housing Activities Sections E through H of this chapter comprise the housing component of the Implementation Plan for the Lodi Redevelopment Project, and summarize the Agency's housing obligations pursuant to CRL Sections 33334.2, 33334.4, 33334.6, and 33341.3. These obligations include recent amendments to the CRL under Assembly Bill 637 that are effective as of January 1, 2002. The following sections also provide an overall framework for the Agency's housing goals, policies and programs. Section F describes housing production requirements. Building upon CRL requirements and background analysis, Section G outlines the Agency's proposed Housing Program over the five year Implementation Plan period. Section H describes the five year program of housing goals and activities. This section and Section H provide the context for the proposed five-year program. 1. Housing Requirements The housing portion of an implementation plan sets forth specific goals and objectives in enough detail to measure performance. The CRL requires that an implementation plan include the following affordable housing planning components:' • The total number of housing units projected to be developed, rehabilitated, price -restricted, assisted, or destroyed for three time periods: 1) on an annual basis for the first five years, 2) in aggregate for the second five years, and 3) in aggregate for years I I to the end of the Plan. • Identification of proposed locations for replacement housing, which the Agency would be required to produce if a planned project would result in the destruction of existing affordable housing. • An explanation of how the goals, objectives, programs, and expenditures set forth in the Implementation Plan will implement the housing requirements of the CRL, including a housing program for each of the five years of the implementation plan. • Estimates of deposits into the Housing Set -Aside Fund during the first five years, and the Agency's plans for utilizing annual deposits to the Housing Set -Aside Fund. 2. Agency Approach to Meeting Housing Requirements The Agency intends to implement relevant goals, objectives, policies, strategies and programs from the General Plan Housing Element in the Project Area.' The following major goals of the Affordable Housing Program of the Lodi Redevelopment Project are designed to be consistent with and help implement the goals and policies of the General Plan: • Encourage homeownership and renovation. • Facilitate development of new affordable housing. • Provide funding assistance for rehabilitation of single and multi family housing for low and moderate income households. • Facilitate development of housing for the elderly. • Spend affordable housing set-aside funds in accordance with CRL, including: — Preserve and provide housing opportunities at all income levels in accordance with the CRL. ' Affordable housing is used in this chapter to define housing which is affordable to households earning at or below 120 percent of median income for San Joaquin County, assuming generally that 30 percent of household income is spent on housing. ' In March 1991, the City Council adopted the Housing Element of the General Plan. It identified the City's general housing needs. and the objectives and priorities to guide planning decisions and policies. and established housing, community developments, and emergency shelter goals for the City. Lodi Redevelopment Agency V-7 Report on the Plan Lodi Redevelopment Project April 2002 – Provide opportunities for homeowners earning at or below 120 percent of median income to ' maintain and repair their homes and promote neighborhood revitalization. ' – Provide homeownership opportunities for first time homebuyers earning less than 120 percent of median income. One purpose of the housing program will be to implement a key provision of the CRL— the enhancement , of affordable housing opportunities for households earning at or below 120 percent of median income. The Agency will utilize at least 20 percent of all tax increment revenue allocated to the Agency to increase, improve and Lodi's supply of affordable housing. preserve The Agency may establish a range of housing programs, which seek to enhance project design and leverage federal, state, and private funding sources to develop high quality, attractive, and affordable ' housing developments serving a diverse population. The funds directed toward this project will be used in a flexible manner in order to respond to favorable development opportunities. The type of financial assistance for the affordable housing program may include cost write-down and gap financing to allow design enhancements, property acquisition, construction costs, predevelopment costs, and permit fees. Appropriate uses of these funds include new affordable rental and ownership housing construction, assistance to homebuyers with acquiring affordable housing, and assistance for housing , rehabilitation. F. Statutory Requirements for Housing This section summarizes the Agency's affordable housing requirements under the CRL, and provides background information and analysis regarding affordable housing needs and conditions in the Project , Area and the overall community. The major statutory requirements for affordable housing imposed on redevelopment agencies by the CRL may be categorized generally as: I . Housing Production Requirement (Section 33413). Agencies must make available specified minimum , percentages of new or substantially rehabilitated housing units in a project area at a legally defined affordable housing costs 2. Housing Fund Requirement (Section 33334.2). Agencies are required to expend specified , percentages of tax increment revenue for the provision of affordable housing. 3. Replacement Housing Requirement (Section 33413). Agencies must replace within four years, housing units removed from the housing stock as a result of redevelopment activities. These three requirements are described in greater detail in the following three sections. Relevant section references to the CRL are included in parentheses. r� 1 s The CRL defines "substantially rehabilitated" as rehabilitation of any Agency -assisted multifamily rental or single family housing unit which has increased in value by at least 25 percent of the after -rehabilitation value of the dwelling (values include I the value of the land). Lodi Redevelopment Agency V-8 Report on the Plan , Lodi Redevelopment Project April 2002 1. Housing Production Requirement As part of an implementation plan, an agency must adopt a plan for a project area showing how the agency intends to meet its housing production requirement (the "Housing Production Plan"). The plan must be consistent with the community's housing element (in Lodi known as the Housing Element), and must cover the following time periods: • Production over the first five years. • Production over the first ten years. • Production through the life of the plan. The plan must include estimates of the number of new or substantially rehabilitated residential units within a project area, and the number of affordable housing units, which will be developed in order to meet the requirements of the CRL. Additionally, the plan must include estimates of the number of units the Agency itself will develop during the time period of the plan, including the number of affordable housing units. The plan must be reviewed every five years in conjunction with the update of a community's housing element or with the implementation plan cycle. Section G of this chapter contains the Agency's Housing Production Plan for the Lodi Redevelopment Project. (Section 33413.(b)) a. Agency Developed Housing The CRL affordable housing obligation requires that at least 30 percent of all new or substantially rehabilitated dwelling units developed directly by an agency must be available at affordable housing cost to persons and families of very low, low, or moderate income. Of those units, at least 50 percent must be affordable to very low-income households. The 50 percent requirement translates to 15 percent of the total number of units developed or rehabilitated by the agency (50 percent of 30 percent equals 15 percent). This requirement applies only to units developed by an agency and does not apply to units developed by housing developers pursuant to agreements with an agency. (Section 33413.(b)(1).) This production requirement is not anticipated to apply to the Lodi Project Area because the Agency does not anticipate directly developing units in the Project Area. b. Housing Not Developed by the Agency When new or substantially rehabilitated dwelling units are developed or substantially rehabilitated in a project area by public or private entities other than a redevelopment agency, including entities receiving agency assistance, at least 15 percent of these units must be affordable to very low, low, or moderate income households. Of those units, at least 40 percent must be affordable to very low-income households. This 40 percent requirement for very low-income households translates to 6 percent of the total number of units developed and substantially rehabilitated by entities other than the Agency in a project area (40 percent of 15 percent equals 6 percent). (Section 33413.(b)(2).) The Agency anticipates that this production requirement will apply to the Project Area. 2. Housing Fund Requirement The CRL requires an agency to set aside in a separate Low and Moderate Income Housing Fund (the "Housing Set -Aside Fund") at least 20 percent of all tax increment revenue generated from its project areas. The funds must be used for the purpose of increasing, improving, and preserving the community's supply of affordable housing. Such housing must be available at affordable housing cost to persons and families of very low, tow, or moderate income. (Sections 33334.2 and 33334.3) Lodi Redevelopment Agency V-9 Report on the Plan Lodi Redevelopment Project April 2002 a. Fund Targeting: Income Levels and Affordable Housing Cost Housing Fund moneys must be targeted to the following specific income levels: 6 Very Low Incomes up to 50 percent of area median income, adjusted for family size. Low Incomes typically from 50 percent up to 80 percent of area median income, adjusted for family size.' Moderate Incomes typically from 80 percent up to 120 percent of area median income, adjusted for family size.' Housing assisted by Housing Set -Aside Fund moneys must be available at an affordable housing cost in accordance with the CR1.9 Table V-4 shows the affordable housing cost definitions by income level and type of tenure. Table V-4 Affordable Housing Cost Source: California Health and Safety Code, Section 50052.5. b. Provision of Housing According to Need by Income and Age Over the duration of each five-year implementation pian, Housing Set -Aside Fund moneys must be expended to assist very low and low-income households in at least the same proportion to housing need by income level.12 The proportion is calculated based on the number of housing units needed for very low, low and moderate income households, minus any units being provided by other governmental programs, divided by the total number of units needed for all three income levels (Section 33334.4). 1'he San Joaquin Council of Governments (SJCOG) sets forth the affordable housing need for the City in the City's regional fair share allocation. Table V-5 shows the fair share allocation and the targeting objective currently applicable to the City of Lodi Redevelopment Agency for housing affordable to 6 The Health and Safety Code defines low and moderate income in Section 50093, low income in Section 50079.5, and very low income in Section 50105. 7 In any given year the definition can be different; income limits are published by California's Department of Housing and Community Development based on data published by the U.S. Department of Housing and Urban Development (HUD) pursuant to Heath and Safety Code 50079.5. 8 In any given year the definition can be different; income limits are published by the state's Department of Housing and Community Development based on data published by the U.S. Department of Housing and Urban Development (HUD) pursuant to Heath and Safety Code 50093. 9 Health and Safety Code Section 50052.5 includes the definition of affordable housing cost. 10 Rental housing costs include utility costs. Affordable housing costs are adjusted by family size. ' I But not less than 28 percent of actual income. ''- The CRL, as amended by AB 637, specifies that an agency must use the regional fair share allocation, as it may be adjusted by the local Council of Governments and State HCD, to determine housing need. i i 1 Lodi Redevelopment Agency V-10 Report on the Plan ' Lodi Redevelopment Project April 2002 Rental Housin 10 Ownershi p Housing Income Level % Income Spent on Housing % of Area Median Income % Income Spent on Housing % of Area Median Income Very Low 30 percent 50 percent 30 percent 50 percent Low 30 percent 60 percent 30 percent 70 percent Moderate 30 percent 110 percent 35percent" 110 percent Source: California Health and Safety Code, Section 50052.5. b. Provision of Housing According to Need by Income and Age Over the duration of each five-year implementation pian, Housing Set -Aside Fund moneys must be expended to assist very low and low-income households in at least the same proportion to housing need by income level.12 The proportion is calculated based on the number of housing units needed for very low, low and moderate income households, minus any units being provided by other governmental programs, divided by the total number of units needed for all three income levels (Section 33334.4). 1'he San Joaquin Council of Governments (SJCOG) sets forth the affordable housing need for the City in the City's regional fair share allocation. Table V-5 shows the fair share allocation and the targeting objective currently applicable to the City of Lodi Redevelopment Agency for housing affordable to 6 The Health and Safety Code defines low and moderate income in Section 50093, low income in Section 50079.5, and very low income in Section 50105. 7 In any given year the definition can be different; income limits are published by California's Department of Housing and Community Development based on data published by the U.S. Department of Housing and Urban Development (HUD) pursuant to Heath and Safety Code 50079.5. 8 In any given year the definition can be different; income limits are published by the state's Department of Housing and Community Development based on data published by the U.S. Department of Housing and Urban Development (HUD) pursuant to Heath and Safety Code 50093. 9 Health and Safety Code Section 50052.5 includes the definition of affordable housing cost. 10 Rental housing costs include utility costs. Affordable housing costs are adjusted by family size. ' I But not less than 28 percent of actual income. ''- The CRL, as amended by AB 637, specifies that an agency must use the regional fair share allocation, as it may be adjusted by the local Council of Governments and State HCD, to determine housing need. i i 1 Lodi Redevelopment Agency V-10 Report on the Plan ' Lodi Redevelopment Project April 2002 persons at or below 120 percent of median income. The Agency will use the Housing Set -Aside Fund to meet these needs where feasible. Table V-5 SJCG Regional Fair Share Allocations Affordable Housing Need by Income Category13 City of Lodi Income Category Percent Share Very Low 40% Low 28% Moderate 32% Total 100% 7771 Source: SJCOG Draft Regional Housing Needs Allocation, San Joaquin County, 2002. The Agency will provide financial assistance in proportion to the need percentage shares shown in the last column of Table V-5. In other words, at least 40 percent of funds will be spent on units affordable to very low-income households, and at least 68 percent will be spent on units affordable to low or very low- income households. Starting January 1, 2002, an agency's Housing Set -Aside Fund expenditures must be targeted to assist families in at least the same proportion as the population under 65 -years bears to the total population of the City. The proportion is calculated as the percentage of the community's population that is under the age of 65 based on the most recent census information. This requirement must be met over the duration of the five-year implementation plan. Table V-6 shows the age distribution and the targeting objective currently applicable to the City of .Lodi Redevelopment Agency for housing affordable to families. Based on this data, the Agency will spend at least 86 percent of its Housing Set -Aside Fund for families. Table V-6 Population by Age Category Based on Census 2000 City of Lodi Age Category Population Percent Share Families: 0 — 65 years of age 48,858 86% Seniors: 65 years or more 8,141 14% Total 56,999 100% Source: Census 2000 1' The San Joaquin Council of Government is mandated by California law to allocate housing needs for its local jurisdictions. Table V-5 figures are draft projections and based on 1990 census data. The percent share is subject to updates by SJCOG when Census 2000 becomes available. Lodi Redevelopment Agency V-11 Report on the Plan Lodi Redevelopment Project April 2002 C. Duration of Affordability' The CRL also requires the placement and recordation of affordability controls on any new or substantially rehabilitated housing assisted by Housing Set -Aside Fund moneys. These controls on assisted housing units require that the units remain affordable for the longest feasible time, but not less than certain minimum time periods. The minimum periods of affordability are 55 years for rental housing and ' 45 years for owner -occupied housing, with a shorter duration permitted if an agency recoups its Housing Set -Aside Fund investment when an assisted owner -occupied unit is sold at a non -affordable price or to a non -qualifying buyer (Section 33334.3). ' 3. Replacement Housing Requirement When residential units sheltering households earning at or below 120 percent of median income are ' destroyed or removed, or are no longer affordable due to agency action, an agency must replace within four years those units with an equal number of replacement units which have an equal or greater number of bedrooms (Section 33413). At least thirty days prior to acquiring property or adopting an agreement that will lead to the destruction or removal of low and moderate income housing units, an agency must adopt by resolution a replacement housing plan that generally describes the location, timing, and method by which replacement housing will be provided (Section 33413.5). Replacement units may be located anywhere within the territorial jurisdiction of the agency (Section 33413[a]). An agency may either construct replacement housing, or cause housing to be constructed through agreements with housing developers. The basic income and affordability standards ' for replacement housing are the same as those for use of Housing Fund moneys (described above). The units must be available at affordable housing cost to households of low and moderate income. In addition, the CRL requires that 100 percent of the replacement units be available at affordable housing cost to the ' same income level of households as were displaced from the units removed or destroyed (Section 33413[a]). Replacement housing must remain affordable for the longest feasible duration, and for at least as long as the land use controls of the redevelopment plan remain in effect (Section 33413[c]). The affordability controls on such units must be made enforceable by recorded covenants or restrictions. , 4. Goals, Objectives and Programs Requirement An agency must provide an explanation of how the goals, objectives, programs, and expenditures set forth , in an implementation plan will implement the affordable housing requirements, including a housing program for each of the five years of the implementation plan." ' The objectives, programs, and expenditures for the Lodi Redevelopment Project that are related to affordable housing requirements are discussed in Sections G and H. 14 After the adoption of the initial plan, the parts of the plan that address the affordable housing requirements must be adopted every five years either in conjunction with the community's housing element cycle or the implementation plan cycle ' (Section 33490). Lodi Redevelopment Agency V-12 Report on the Plan , Lodi Redevelopment Project April 2002 G. Housing Production Plan 1. Housing Production (2003 through End of Redevelopment Plan) The Agency projects that approximately 74 new housing units will be constructed and about 136 units will be substantially rehabilitated in the Project Area during the life of the Redevelopment Plan. Table V--8 shows the housing production. Production (2003 through June 2008) During the first five years, the Agency projects that 7 new housing units could be constructed and about 12 units substantially rehabilitated in the Project Area. Production (2008 through June 2013) Over the second five-year period, the Agency projects that approximately 20 new housing units are could be constructed and 35 units substantially rehabilitated in the Project Area. 2013 to End The Agency projects that an additional 47 housing units could potentially be constructed and 89 units substantially rehabilitated in the Project Area through the end of the Plan. 2. Affordable Housing Production Obligation (2003-2013) a. Affordable Housing Production Obligation Based upon the forecasted 74 new and substantially rehabilitated housing units in the Project Area between 2003 and 2013, the Agency would have an obligation to ensure that a total of 16 new affordable units are developed. Of these, at least 7 units must be made available at affordable housing cost to very low-income households, and 9 units must be affordable to very low, low and moderate -income households. This housing obligation would be met by acquisition and substantial rehabilitation of single family and multifamily hoysing within the Project Area. b. Replacement Obligation The Agency has no plans to destroy or remove any residential units at this time. No households are expected to be displaced in the first five years of the Plan, and therefore the Agency would not incur a replacement -housing obligation. In the event that residential units are destroyed or removed in the future, the City and Agency will follow all state requirements for replacement housing and relocation. 3. Agency's Plan to Meet the Housing Obligation During the first five years, the Agency projects that about 12 of 19 new or substantially rehabilitated housing units will qualify as affordable housing units (3 units would be affordable to very low income households and 9 units affordable units to very low, low or moderate income households), as shown on Table V-7. During the following five years (2008 to 2013), the Agency projects about 35 of 55 new or substantially rehabilitated housing units will qualify as affordable housing units (14 units would be affordable to very low income households and 21 units affordable units to very low, low or moderate income households). Table V-7 shows that the Agency will exceed its housing obligation in the next ten years with these 47 affordable units. Lodi Redevelopment Agency V-13 Report on the Plan Lodi Redevelopment Project April 2002 Table V-7 also shows how the Agency anticipates meeting its housing production requirement over the life of the Plan. Table V-7 Affordable Housing Production Obligation 2003 to 2008, 2008 to 2013 and 2013 to End Lodi C i i 11 Notes: ' *Between 2003 and the end of plan, the Agency plans to assist in the substantial rehabilitation of approximately 136 housing units within the Project Area. *Percentages may not add up exactly due to rounding. CRL Affordable Housing Production Requirements are rounded up to the nearest whole unit. ' Methodology 1. Total new units produced in the project area during the period. 2. Number of affordable units required based on the units produced (1). 3. Number of units projected to be built to satisfy CRL affordable housing obligation. 4. Remaining affordable surplus or obligation at the end of the ten-year period. Income Levels I Very Low- typically affordable to households earning up to 50 percent of median income. Low- typically affordable to households earning between 51 and 80 percent of median income. , Moderate- typically affordable to households earning between 81 and 120 percent of median income. Source: Lodi Redevelopment Agency, Lodi Planning Department, Draft EIR, Wagstaff & Associates. 1 Lodi Redevelopment Agency V-14 Report on the Plan ' Lodi Redevelopment Project April 2002 2003-2008 2008-2013 2013 -End Total % 1. Housing Production ............. New.Units......._...... _................................................... ............................._.7- .... ._...... _...........20. ................... ....._47 ....................... ...... 74 ...................................................... _............. ................................................. ...................................... » ........ ».......»»................. ........ ... .............. »........ 89 .......................... ....... t36 Substantial Rehabilitation* Subtotal 12 19 35 55 136 5, a`3 � $ favF -- 2. CRL Affordable Housing Production Requirement __ ..................y....................._ ..... _............................................................ ................................._...._.............. .................... Ver Low 2 5 ... .._-...... ..... ............ 9 ........... _.._»....__...._.»....................... 16 6% Very Low, Low or Moderate 3 6 14 23 9% ............ ...................................._._»............................................................................................__.._..__......................................._..__..__._..._..................».._..w-..___...._ Subtotal 5 11 23 39 ..................... _........ - 15% k : �'F' T { 3 ?k'6#k.k°ki - i i- -"_}i f i �; K } .'. � g �. 4 A.,➢ 3�AME _ ;•'i'f � "`.' � &k `�,�,. 3. Proposed Units that Will Meet CRL Requirement .... _...................... ........................._...__-................................................................-.............._......--.................. ............ -- Very Low 3 14 . . ............................................. _._... _.._....................................................... ................................. _.__............................... _.. --.... -.......................... 35 --........ .......................... ...... . _--_-.... 55 ........... .... ... W_ ........... ......................... ....... 40% ... _.............. _............ Very Low, Low or Moderate 9 21 54 81 60% ............ »...._............. ............. .............................. _.._.». Subtotal 12 35 .... ... ............................. 89 __.-........ ____....... ........ 136 .............. __.».......... 100% ..%n , . Y. . K '.D'�. , :.�"< SL .»'A . �wti'x v •Y4 * kR: b e % . �a .:,� x„..., ¢g�l,� St "b,a is ^ .c'&'s ^,v f{Y., F'. 4. Cumulative Production Surplus (Deficit) ...............y_.._................ ___..................................................................................__......................... ................. Ver Low 1 9 .............. ............ .. 26 ... 39 -.............................................. ---------.....................-........................... ----._.......... .... ---_.- ......... ................ ------ Very Low, Low or Moderate 6 15 .................................... 40 -.----._................... 59 ; 3i Subtotal __......_.._._. -.._.._7 ........... ...............................66 _............................98 C i i 11 Notes: ' *Between 2003 and the end of plan, the Agency plans to assist in the substantial rehabilitation of approximately 136 housing units within the Project Area. *Percentages may not add up exactly due to rounding. CRL Affordable Housing Production Requirements are rounded up to the nearest whole unit. ' Methodology 1. Total new units produced in the project area during the period. 2. Number of affordable units required based on the units produced (1). 3. Number of units projected to be built to satisfy CRL affordable housing obligation. 4. Remaining affordable surplus or obligation at the end of the ten-year period. Income Levels I Very Low- typically affordable to households earning up to 50 percent of median income. Low- typically affordable to households earning between 51 and 80 percent of median income. , Moderate- typically affordable to households earning between 81 and 120 percent of median income. Source: Lodi Redevelopment Agency, Lodi Planning Department, Draft EIR, Wagstaff & Associates. 1 Lodi Redevelopment Agency V-14 Report on the Plan ' Lodi Redevelopment Project April 2002 H. Housing Goals and Programs 1. Housing Activity Goals and Objectives In addition to discussion of an agency's progress in meeting its specific affordable housing obligations under the CRL, an implementation plan must set forth the agency's goals and objectives for affordable housing during the five years (Section 33490.(a)). During the five year Implementation Plan period, the Redevelopment Agency will concentrate on achieving those objectives, which are most applicable to the Agency's affordable housing activities. In developing its Affordable Housing Program, the Agency has been guided by the Housing Element of the City General Plan, which is incorporated into the Implementation Plan by this reference. The Agency is committed to assisting the City in achieving the objectives and policies presented in Housing Element, including: • To provide a range of housing types and densities for all economic segments of the community while emphasizing high quality development and homeownership. • To encourage the maintenance, improvement and rehabilitation of the City's existing housing stock and residential neighborhoods. • To ensure the provision of adequate services to support existing and future residential development. • To promote equal opportunity to secure, safe, sanitary and affordable housing for all members of the community regardless of race, sex or other arbitrary factors. • To encourage energy efficiency in all new and existing housing. 2. Housing Set -Aside Fund Revenues The primary funding source for the Agency's housing activities will be the 20 percent portion of annual tax increment revenue deposited by the Agency into its Housing Set -Aside Fund. Table V-8 shows the deposits into the Housing Set -Aside Fund. Based on the tax increment projections presented in Chapter IV and Appendix H of this Report on the Plan, the Agency projects that it will deposit approximately $640,000 into the Housing Set -Aside Fund in the first five years in nominal (or future) dollars, equivalent to approximately $500,000 in constant 2002 dollars." is A discount rate of six percent was used to calculate constant 2002 dollars. Refer to Chapter IV for an explanation of translating nominal dollars to constant 2002 dollars, and the discount rate used. Lodi Redevelopment Agency V-15 Report on the Plan Lodi Redevelopment Project April 2002 Table V-8 Annual Deposits to Housing Set -Aside Fund 2003 to 2008 Lodi Project Area Fiscal Year Nominal Dollars Constant 2002 Dollars 2003/04 $64,000 $58,000 2004/05 $93,000 $79,000 2005/06 $126,000 $101,000 2006/07 $159,000 $121,000 2007/08 $201,000 $146,000 Total $6432000 $505,000 "Numbers may not match total due to rounding. Source: Lodi Redevelopment Agency, Seifel Consulting Inc. 3. Affordable Housing Program and Proposed Five Year Activities The Housing Program assisted by the Agency complies with Housing Element objectives and policies referenced above. The Agency's funds will be used in a flexible manner to respond to favorable development opportunities. The type of financial assistance to be provided may include cost write-down and gap financing for projects utilizing federal and state grant or loan funds to facilitate design enhancements, property acquisition, construction and predevelopment. Appropriate uses of these funds include new affordable rental and ownership housing construction, and assistance to homebuyers with acquiring affordable housing. The Agency plans to target its Housing Set -Aside Fund for specific income groups as required by the CRL. However, the Agency will make every effort to encourage the preservation and development of housing affordable to a variety of income levels by using the programs described above and applying its resources in a manner that Meets or exceeds the ten year housing production requirement described in Section G. By combining various funding sources, and in partnership and collaboration with others dedicated to the preservation and development of affordable housing, the Agency is confident it will be able to meet its housing production obligations within the first ten years. The Agency recognizes the important role of housing programs and activities in its Redevelopment Program. Consequently, the proposed Housing Program should not be viewed simply as an implementation procedure for the Agency's stated goals and objectives related to housing, but as a key element in its overall revitalization efforts. Through the annual budgeting process, the Agency will translate the housing objectives and programs described in this chapter into specific budget expenditures using the limited Housing Set -Aside Fund deposits that are expected during the initial Implementation Plan period. Schedule for Annual Unit Production The CRL requires that the Agency formulate annual housing production goals over the first five years. The annual production goals are targets that the Agency has established. The Agency expects to take advantage of various opportunities as they are presented and to initiate actions as necessary, consistent with the CRL and the City's Housing Element, to preserve and facilitate the development of housing for households whose basic needs are not met by the private housing market. The Housing Program for the Lodi Redevelopment Project will focus on development of new affordable housing, substantial rehabilitation of existing housing and promotion of homeownership and renovation. i 1 L� H L i Lodi Redevelopment Agency V-16 Report on the Plan , Lodi Redevelopment Project April 2002 Affordable Housing Development During the first five years of the project, the Agency will assist in the development of housing (contingent upon local, state and federal use regulations), affordable to very low and low-income households. Substantial Rehabilitation During the first five years of the project, the Agency will emphasize housing rehabilitation by offering housing rehabilitation loans for single-family homes as well as for rental housing that is occupied by very low, low and moderate -income households. Utilizing Housing Set -Aside Funds, this program will provide low interest loans for major housing rehabilitation activities such as roofing and structural improvements. In exchange for substantial rehabilitation assistance, the Agency would apply an affordability covenant to ensure the units remain affordable. Homeownership and Renovation The Agency will assist low and moderate -income households, utilizing Housing Set -Aside Funds. The Agency will accomplish this goal by promoting homeownership and offering incentives to developers of new housing to include affordable units in the development. Senior Housing Development The Agency will assist in development of senior development (contingent upon local, state and federal use regulations), affordable to very low and low-income households. At this time, based on information and opportunities known to date, the Agency plans to achieve the following annual housing goals within the Project Area. Table V-9 shows the annual estimate of Agency - assisted housing units to be produced during the first five years of the plan, assuming a potential Agency subsidy of $40,000 - $45,000 per unit. If the Agency is able to leverage additional funds, it will produce more units. Lodi Redevelopment Agency V-17 Report -on the Plan Lodi Redevelopment Project April 2002 Table V-9 Estimate of Agency -Assisted Housing Units 2003 to 2008 Lodi Redevelopment Project Year 1 2 3 4 5 Total 2003/04 2004/05 2005/06 2006/07 2007/08 New Development 0 0 0 1 2 3 Substantial Rehabilitation 0 1 2 2 4 9 Total Affordable Housing Units 0 1 2 3 6 12 4. Estimated Housing Set -Aside Fund Expenditures 2003-2008 The Agency estimates expenditures for housing activities of approximately $.5 million, equal to its revenues during the first five years. The Agency plans to target its Housing Set -Aside Fund for specific income and age groups as required by the CRL, and the Agency will make every effort to encourage the development of housing affordable to a variety of income levels. By combining various funding sources, and in partnership and collaboration with others dedicated to the development of affordable housing, the Agency is confident it also will be able to meet its housing production obligations within the first ten years. The Agency will provide financial assistance inside the Project Area in proportion to the need, which is determined using the most recent census data. 16 In other words, at least 40 percent of funds will be spent on housing affordable to very low-income households, and at least 68 percent will be spent on housing affordable to very low and low-income households, as shown in Table V-10. Table V-10 Housing Set -Aside Fund Distribution by Income Category Five Year Period (2003 to 2008) Lodi Project Area Constant 2002 Dollars The Agency will also provide financial assistance for families in at least the same proportion as the population under 65 -years bears to the total population of the City. At least 86 percent of the Housing Set - Aside Fund will be spent on housing that serves households under the age of 65, as shown in Table V-11. 16 Census data is used to determine the proportion or need and, therefore, these percentages are subieet to periodic update. F, 0 r Lodi Redevelopment Agency V-18 Report on the Plan ' Lodi Redevelopment Project April 2002 Percent Share Tax Increment Funds Very Low 40% $202,000 Low 28% $141,400 Moderate 32% $161,600 Total 100% $505,000 The Agency will also provide financial assistance for families in at least the same proportion as the population under 65 -years bears to the total population of the City. At least 86 percent of the Housing Set - Aside Fund will be spent on housing that serves households under the age of 65, as shown in Table V-11. 16 Census data is used to determine the proportion or need and, therefore, these percentages are subieet to periodic update. F, 0 r Lodi Redevelopment Agency V-18 Report on the Plan ' Lodi Redevelopment Project April 2002 Table V-11 Housing Set -Aside Fund Distribution by Age Category Five Year Period (2003 to 2008) Lodi Project Area Constant 2002 Dollars Percent Share Tax Increment Funds Families: 0 — 65 years of age 86% $434,300 Seniors: 65 Xears or more 14% $70,700 Total 100% $505,000 The Agency will combine the Housing Set -Aside Fund revenue from the Redevelopment Project with other funding sources devoted to the provision of affordable housing. These other funding sources include, but are not limited to, Housing Set -Aside funds from other Project Areas, Community Development Block Grant (CDBG) funds, Home Investment Partnership (HOME) funds, California Housing Finance Agency (CHFA) assistance, the state's Department of Housing and Community Development (HCD) programs, low income housing tax credit equity funds, and other creative financing options such as private sector or foundation contributions. In conclusion, the Agency's goals stated above will meet its CRL affordable housing production requirements in the first five years of tax increment collection. The housing production requirements will be met by affordable units assisted within the Project Area. Furthermore, in accordance with CRL, the Agency is proposing to assist in the development of units and spend Housing Set -Aside funds by income category in accordance with need from 2003 to 2008. The Housing Fund will be spent entirely within the Project Area. Lodi Redevelopment Agency V-19 Report on the Plan Lodi Redevelopment Project April 2002 VI. Method or Plan for Relocation of Families, Persons or Businesses Who May Be Displaced This chapter sets forth the general policies for the administration of the relocation program and the provision of services and benefits to displaced families, individuals, businesses, and community institutions. This plan should be considered as general in nature. As recommended in an October 1982 State Department of Housing and Community Development study entitled "A Study of Relocation and Housing Development in California Redevelopment Agencies," a comprehensive and detailed plan need not be developed until relocation is imminent. At that time, a more specific analysis will be prepared, pursuant to Title 25, Section 6038 of the California Code of Regulations. A. Statutory Requirements Section 33352(f) of the CRL requires that a report to the legislative body contain: A method or plan for the relocation of families and persons to be temporarily or permanently displaced from housing facilities in the project area, which method or plan shall include the provision required by Section 33411.1 that no persons or families of low or moderate income shall be displaced unless and until there is a suitable housing unit available and'ready for occupancy by the displaced person or family at rents comparable to those at the time of their displacement. B. Analysis The Agency anticipates that a minimal number of dwellings would be displaced over the life of the Redevelopment Plan, although the Agency has no plans to relocate residents or businesses at this time. Relocation would only be used if it were reasonably necessary to redevelop a property. The Agency would not commence any reasonably necessary relocation until it has firm commitments from public funding sources or competent developers that the desired redevelopment of an area will take place in a timely manner and with the least disruption to existing homes and businesses. The Agency will establish a method and plan for relocation of families and persons to be displaced in connection with any Agency project. The Agency relocation policy will comply with CRL Section 33367(d)(7), which requires a redevelopment agency to have a feasible relocation method or plan if the agency's redevelopment plans are to result in the displacement of any households or businesses in a project area. If household relocation becomes necessary, specific relocation plans containing detailed household and housing availability surveys will be prepared at the initiation of each project. Land assembly involving relocation will be authorized by the Agency only if the specific relocation plan can ensure the availability of sufficient suitable and affordable housing units to meet the specific relocation needs created by the land assembly project. The Agency will have a feasible method of meeting the relocation needs that may result from implementation of the Redevelopment Plan. Lodi Redevelopment Agency VI -1 Report on the Plan Lodi Redevelopment Project April 2002 VII. Analysis of Preliminary Plan In accordance with Section 33322 of the CRL, the City Planning Commission adopted the Preliminary Plan for the Lodi Redevelopment Project on July 11, 2001. A. Statutory Requirements Section 33352(g) of the CRL requires that a report to the legislative body contain: An analysis of the preliminary plan. The Preliminary Plan is organized into five elements as required by the CRL. Section 33322 of the CRL requires that the local planning commission formulate a Preliminary Plan for the redevelopment of each selected project area, and Section 33324 provides the following directives for preparation of that preliminary plan: A preliminary plan need not be detailed and is sufficient if it: . (a) Describes the boundaries of the project area. (b) Contains a general statement of the land uses, layout ofprincipal streets, population densities and building intensities and standards proposed as the basis for the redevelopment of the project area. (c) Shows how the purposes of this part would be attained by such redevelopment. (d) Shows that the proposed redevelopment is consistent with the community's general plan. (e) Describes, generally, the impact of the project upon the area's residents and upon the surrounding neighborhood. B. Boundaries of the Project Area The Preliminary Plan includes the selected project boundaries of Lodi Redevelopment Project Area. These boundaries are within the Survey Area for the Lodi Project Area as designated by the City Council on April 18, 2001. C. Land Uses, Streets, Population and Building Standards The Preliminary Plan contains a general statement of land uses, layout of principal streets, population density, residential unit density, building intensity, and development standards. 1. Land Uses As a basis for the redevelopment of the proposed Project Area, it is proposed that, in general, the land uses in the Project Area shall be residential, commercial, industrial, other and roadway rights of way, as permitted by the City of Lodi General Plan as it currently exists and as it may be amended from time to time. Lodi Redevelopment Agency VII -1 Report on the Plan Lodi Redevelopment Project April 2002 2. Layout of Principal Streets As a basis for the redevelopment of the Project Area, the principal streets, as shown on the Figure I-1, Project Area Boundary Map, include: north of Kettleman Lane, south of Turner Road, east of Ham Lane and west of Commerce Street. Existing streets within the Project Area may be closed, widened, or otherwise modified, and additional streets may be created as necessary for proper pedestrian or vehicular circulation. 3. Population Density, Residential Unit Density, Building Intensity and Building Standards Within the confines of the General Plan Land Use designations, there will be a permitted range of development. Population densities will be consistent with permitted levels in the General Plan although certain specified areas may see a net increase or decrease in density dependent upon the development proposed and permitted in that area by the Redevelopment Plan. As a basis for the redevelopment of the Project Area, the Preliminary Plan proposes that, in general, building intensities be controlled by limits on: 1) the percentage of ground area covered by buildings (land coverage); 2) the ratio of the total floor area for all stories of the buildings to areas of the building sites (floor area ratio); 3) the size and location of the buildable areas on building sites; and 4) the heights of buildings. The land coverage, sizes, and location of buildable areas should be limited as feasible to provide adequate open space. As a basis for the redevelopment of the Project Area, the Preliminary Plan proposes that building standards should generally conform to the building requirements of applicable state statutes and local codes. • Assemble land into parcels suitable for modern, integrated development with improved pedestrian D. Attainment of Purposes of State Law This proposed Redevelopment Plan adoption will be undertaken to achieve the following goals in furtherance of the purposes of the CRL and the City's General Plan. ' • Eliminate blighting influences and correct environmental deficiencies, including, among others, buildings in which it is unsafe or unhealthy to live or work, incompatible and uneconomic land uses, and small and irregular lots. • Assemble land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation. • Replan, redesign, and redevelop areas which are stagnant or improperly utilized. • Provide opportunities for participation by owners and tenants in the revitalization of their properties. • Strengthen retail and other commercial function in the Project Area. • Strengthen the economic base of the Project Area by stimulating new investment. • Expand employment opportunities. , • Provide an environment for social and economic growth. • Expand and improve housing for low and moderate income persons. , • Install new or replace existing public improvements, facilities, and utilities in areas that are currently inadequately served with regard to such improvements, facilities, and utilities. , Lodi Redevelopment Agency VII -2 Report on the Plan Lodi Redevelopment Project April 2002 , E. Conformity with the General Plan The Preliminary Plan is consistent with the City of Lodi General Plan. The Preliminary Plan proposes a conforming pattern of land uses and includes all highways and public facilities indicated by the General Plan. The Redevelopment Plan will include provisions providing that it will remain consistent with the General Plan as it (the General Plan) is amended from time to time. F. Consistency of Redevelopment Plan with Preliminary Plan Since the adoption of the Preliminary Plan, the Agency has developed a more detailed Redevelopment Plan applying the same general standards, uses, and programs for the redevelopment of the Project Area as set forth in the Preliminary Plan. In this respect, the Redevelopment Plan reaffirms provisions of the Preliminary Plan, establishing standards for development and ensuring enforceability of the redevelopment objectives. The additions which have been made to the Redevelopment Plan have been designed to clarify and provide requisite detail as required by the CRL, and are consistent with the adopted goals and objectives of the Preliminary Plan. G. General Impacts upon Surrounding Neighborhoods As the Preliminary Plan states, the principal purpose of the Project is the elimination and prevention of blight through the assistance and encouragement of public and private rehabilitation and redevelopment efforts, through selective land acquisition, clearance and disposition for private redevelopment, and through the provision of new or replacement of existing public improvements, facilities, and utilities within and serving the Project Area. Direct redevelopment activities should occur only when sufficient financial resources are available and such action will product effective and immediate redevelopment results. The impact of the proposed Project upon occupants of that area and surrounding neighborhoods are, in general, in the areas of relocation, transportation, traffic circulation, community facilities and services, environmental quality, cultural resources, employment opportunity, and economic development. Agency activities in the Project may include property acquisition, minimal relocation of occupants, demolition of structures, construction of public improvements, and land disposition for private development. The Environmental Impact Report (E1R), described in Chapter X, discusses the physical impacts of the proposed Redevelopment Project on area residents in detail. A summary of the impacts of redevelopment activities associated with the Redevelopment Plan that are addressed in the EIR appears in Chapter XIII of this report, the "Neighborhood Impact Report." Lodi Redevelopment Agency VII -3 Report on the Plan Lodi Redevelopment Project April 2002 VIII. Planning Commission Actions At its May 8, 2002 meeting, the Planning Commission is expected to consider the adoption of a resolution finding the Lodi Redevelopment Plan in conformance with the Lodi General Plan. A. Statutory Requirements Section 33352(h) and 0) of the CRL requires that a report to the legislative body contain: The report and recommendations of the planning commission. (h) The report required by Section 65402 of the Government Code. (j) The following sections of the CRL describe the purpose and requirements for review of a redevelopment plan by a planning commission: 33346. Before the redevelopment plan of each project area is submitted to the legislative body, it shall be submitted to the planning commission for its report and recommendation concerning the redevelopment plan and its conformity to the general plan adopted by the planning commission or the legislative body. The planning commission may recommend for or against the approval of the redevelopment plan. 33347. Within 30 days after a redevelopment plan is submitted to it for consideration, the planning commission shall make and file its report and recommendation with the agency. If the planning commission does not report upon the redevelopment plan within 30 days after its submission by the agency, the planning commission shall be deemed to have waived its report and recommendations concerning the plan and the agency may thereafter approve the plan without the report and recommendations of the planning commission. B. Analysis Pursuant to Section 333520), the Planning Commission must make a report and recommendation as to the conformity of the proposed Redevelopment Plan to the General Plan (Government Code 65402). The Agency will refer the proposed Lodi Redevelopment Plan to the Planning Commission for its report and recommendation. The Planning Commission is scheduled to review the proposed Redevelopment Plan for its conformance with the General Plan as part of its May 8, 2002 actions. Lodi Redevelopment Agency VIII -I Report on the Plan Lodi Redevelopment Project April 2002 IX. Summary of Public Review of the Proposed Plan In accordance with Section 33385 of the CRL, the Lodi City Council formed a Project Area Committee (PAC) for the Project Area. A. Statutory Requirements Section 33385 of the CRL requires a legislative body to form a project area committee (PAC) in either of the following situations: (1) A substantial number of low-income persons or moderate -income persons, or both, reside within the project area, and the redevelopment plan as adopted will contain authorityfor- the agency to acquire, by eminent domain, property on which any persons reside. (2) The redevelopment plan as adopted contains one or more public projects that will displace a substantial number of low-income or moderate -income persons, or both. Section 33352(1) requires that a report to the legislative body contain a summary of the minutes of the meetings of the project area committee. B. Analysis The City and Agency formed the PAC in accordance with the procedures of Sections 33385 and 33385.5. The Agency has received extensive public input regarding the proposed Redevelopment Plan, both from the PAC, and through public meetings and hearings. 1. PAC Formation and PAC Information Meetings In summer 2001, the City and Agency called for the formation of the Lodi Redevelopment PAC. On September 5, 2001, the City Council conducted a duly noticed public hearing on the "Procedures for the Formation of PAC" and adopted the formation procedures and called for the PAC formation. The procedures established rules for the noticing and conduct of an election of a nine member PAC, including members from the following representation categories: residential owner occupants, residential tenants, business tenants, business property owners, and community organizations. There was no public opposition to the draft PAC Formation Procedures, and the City Council approved the PAC Formation Procedures at the conclusion of the public hearing. On September 15, 2001, the Agency mailed a written notice to all residents, property owners, businesspersons, and community organizations within the Project Area announcing its intention to form a PAC. On September 25, 2001, the Agency held a public information meeting to discuss the proposed Redevelopment Plan, the function of the PAC, the process to elect its members, and opportunities to serve on it. A copy of the notice of the PAC formation meeting (which was mailed to all property owners and occupants in the Project Area) is contained in Appendix 1. On October 19, 2001, the Agency conducted the election of residents, business owners and operators, and community organizations representatives to the PAC. Lodi Redevelopment Agency IX -1 Report on the Plan Lodi Redevelopment Project April 2002 The second PAC meeting was held on December 18, 2001. The minutes of the November 27, 2001 meeting were approved. Due to a scheduling conflict, the meeting time was changed from the second Tuesday of each month to the third Tuesday of each month. Staff noted that a representative from the Eastside Improvement Committee would be appointed to the PAC during the January meeting to fill the vacancy on the committee.'PAC officers were elected. Chuck Easterling was elected to Chairperson. Eduardo Aguirre and Connie Jauregui were elected to Vice -Chairperson and Secretary, respectively. A motion was made and adopted to approve the by-laws with the change of meeting dates to reflect every Third Tuesday and an annual meeting date of December 17, 2002. A presentation was given to the PAC on the major documents involved in the Redevelopment process, including the Redevelopment Plan, Preliminary Report, and Environmental Impact Report. Funding sources and required expenditures and allocations were also discussed. ' Meeting #3 The PAC held its third meeting on January 15, 2002. Meeting agenda items included review of Draft Redevelopment Plan, Draft Owner Participation Rules and Residential Conservation Areas. The committee approved minutes of the December 18, 2001 meeting with one minor change clarifying offices can be held for two years rather than one. The Agency's counsel distributed and discussed the Draft Redevelopment Plan and the Rules Governing Participation by Property Owners. The Committee raised ' concerns about the use of eminent domain in the Project Area and mentioned that a group was organizing against it. Staff responded to the concerns and the Agency stated it would exercise diligence and discretion when using eminent domain. Member Snyder asked if historical elements are given any ' consideration in the Redevelopment process. Staff replied that it can be a factor for Agency participation. Lodi Redevelopment Agency IX -2 Report on the Plan ' Lodi Redevelopment Project April 2002 ' On November 7 2001 the Cit Council certified the results of the PAC election and directed the Agency , Y to consult with the PAC during the Plan adoption process. ' The PAC Formation Procedures called for the PAC committee to be composed of two residential tenants, two homeowners, two business tenants, two business property owners, and one community organization. At the October 19`h election, the eight elected positions were filled. The City Council selected the Eastside Community Improvement Committee to appoint one of its members as the community organization representative to the PAC. Ann Larson was appointed by the Eastside Community Improvement Committee to serve as the community organization representative. PAC Meetings and Actions Meeting #1 , The first meeting of the PAC was held on November 27, 2001. The PAC members and consultants introduced themselves and established a meeting schedule of the second Tuesday of each month. PAC roles and responsibilities were discussed, including its primary responsibility of reviewing the ' Redevelopment Plan and submitting a report recommending the plan be adopted or rejected. PAC by-laws and two applicable laws to the PAC were discussed. These include The Brown Act, a California Law regarding open meetings and the Political .Reform Act, which require public officials to file Statements of Economic Interests and prohibits public officials from using their political position to influence governmental decisions for personal gain. PAC members were also given an overview of redevelopment. This included its purpose, potential projects, funding sources, the Plan adoption process and work completed to date by the Redevelopment Agency. Meeting #2 The second PAC meeting was held on December 18, 2001. The minutes of the November 27, 2001 meeting were approved. Due to a scheduling conflict, the meeting time was changed from the second Tuesday of each month to the third Tuesday of each month. Staff noted that a representative from the Eastside Improvement Committee would be appointed to the PAC during the January meeting to fill the vacancy on the committee.'PAC officers were elected. Chuck Easterling was elected to Chairperson. Eduardo Aguirre and Connie Jauregui were elected to Vice -Chairperson and Secretary, respectively. A motion was made and adopted to approve the by-laws with the change of meeting dates to reflect every Third Tuesday and an annual meeting date of December 17, 2002. A presentation was given to the PAC on the major documents involved in the Redevelopment process, including the Redevelopment Plan, Preliminary Report, and Environmental Impact Report. Funding sources and required expenditures and allocations were also discussed. ' Meeting #3 The PAC held its third meeting on January 15, 2002. Meeting agenda items included review of Draft Redevelopment Plan, Draft Owner Participation Rules and Residential Conservation Areas. The committee approved minutes of the December 18, 2001 meeting with one minor change clarifying offices can be held for two years rather than one. The Agency's counsel distributed and discussed the Draft Redevelopment Plan and the Rules Governing Participation by Property Owners. The Committee raised ' concerns about the use of eminent domain in the Project Area and mentioned that a group was organizing against it. Staff responded to the concerns and the Agency stated it would exercise diligence and discretion when using eminent domain. Member Snyder asked if historical elements are given any ' consideration in the Redevelopment process. Staff replied that it can be a factor for Agency participation. Lodi Redevelopment Agency IX -2 Report on the Plan ' Lodi Redevelopment Project April 2002 Meeting #4 The PAC conducted its fourth meeting on February 19, 2002. Agenda items included Review of Preliminary Report, General Comments of PAC and Public Comment. Meeting minutes from January 15, 2002 were approved with two minor corrections. The Agency's redevelopment consultant, Seifel Consulting, reviewed the content of the Preliminary Report, focusing on Chapter 2: Existing Conditions. The consultant described factors of physical and economic blight including Deficient or Deteriorated Buildings, Factors that Inhibit Proper Use of Buildings, Incompatible Uses, Substandard Lots, Crime Rates and Residential Overcrowding. The consultant also explained that the Agency must demonstrate a connection between the blight conditions and ways in which the Redevelopment Program will mitigate the blight. Member Snyder inquired about protections for historic buildings within the Project Area and the consultant clarified that a certain process must be followed for such buildings. Meeting #5 The fifth PAC meeting was held on March 19, 2002. Agenda items included approval of February 19, 2002 meeting minutes, Preliminary Report discussion and a review of the Draft EIR and EIR Schedule. Staff responded to questions and comments regarding the Preliminary Plan, which was reviewed at the February 19`' PAC meeting. Staff also discussed the Draft Environmental Impact Report (DEIR), a document that assesses the environmental impacts of the Redevelopment Plan, including Land Use Impact, Noise, Air Quality, Biology, Traffic, Visual Impacts and Wildlife. Staff explained that all of the impacts noted in the document were mitigable except for Air Quality, which will have a "Significant Unavoidable Impact." In order for the EIR to be certified and the plan move forward, the City Council must make a specific finding noting that nothing can be done to offset the air quality condition. The DEIR is available for public review and comment for 45 days and at the end of this period, April 25`h, the Agency is required by law to respond to any comments generated. These comments will be compiled with the draft EIR to become the final environmental report. The City Council will vote for its certification in June 2002. , Meeting #6 The April meeting of the PAC was cancelled. The sixth PAC meeting is scheduled for May 21, 2002. Copies of the minutes of the PAC meetings are attached in Appendix 1. 2. Other Community Consultations A public hearing on the proposed Redevelopment Plan is scheduled to take place as the Plan adoption process continues. The notice of the joint public hearing will be published in the Lodi News Sentinel newspaper once a week for four consecutive weeks (prior to the joint public hearing) in accordance with the notice requirements of the CRL. Additionally, notices of the joint public hearing will be sent by certified mail to each taxing entity and by first class mail to every property owner, business, community organization and resident in the Project Area, as required by CRL Section 33452. On May 15, 2002, the City Council and Agency are expected to consider scheduling a June 19, 2002 joint public hearing on the proposed Plan and authorizing publication and mailing of the legal notice of the joint hearing. The Agency will respond to comments made at the hearing in writing. All of the comments made at that hearing, as well as the Agency's response, will be part of the record of adoption of the Plan. Lodi Redevelopment Agency IX -3 Report on the Plan Lodi Redevelopment Project April 2002 X. Environmental Review The Lodi Redevelopment Agency, with the assistance of Wagstaff & Associates, prepared the Environmental Impact Report (EIR) for the Lodi Redevelopment Project Area Plan. This EIR provides the environmental documentation required by CRL for the Lodi Redevelopment Plan. The separate EIR document serves as the principal background reference for environmental impact and mitigation information for the City and Agency's decision -makers during deliberations pertaining to the Redevelopment Plan. In compliance with Section 33352(k) of the CRL, the EIR is incorporated by reference into this Report. A. Statutory Requirements Section 33352(k) of the CRL requires that a report to the legislative body include the report required by Section 21151 of the Public Resources Code—the environmental impact report (EIR). B. Analysis On March 12, 2002, the Redevelopment Agency released for public review the Draft Environmental Impact Report (Draft EIR). The document was distributed to all affected taxing entities, the PAC, the Planning Commission and other entities as required by law. The public review period of the Draft EIR was March 12, 2001 to April 25, 2002. A public hearing on the document was held on April 24, 2002 at the regular Lodi Planning Commission Meeting. All written comments received at the public hearing will be addressed in the Response to Comments Document, which will also show relevant changes to the text of the Draft EIR. The Final EIR is scheduled to be transmitted on May 31, 2002 to the City Council, the Planning Commission and the PAC pursuant to Section 21151 of the Public Resources Code. Comments will be received on the Final EIR 4t the June 19, 2002 joint public hearing of the City Council and Agency on the Redevelopment Plan adoption. The certification of the EIR does not constitute approval of the Redevelopment Project itself, rather, the Final EIR must be certified before any action can be taken on the Redevelopment Plan. A summary of the impacts of redevelopment activities associated with the Redevelopment Plan that are addressed in the EIR appears in Chapter XIII of this report, the "Neighborhood Impact Report." Lodi Redevelopment Agency X-1 Report on the Plan Lodi Redevelopment Project April 2002 XI. Report of the County Fiscal Officer Pursuant to Section 33327 of the CRL, the Agency advised the Office of the San Joaquin County Auditor, the State Board of Equalization and all affected taxing entities that it had designated FY 2001/02 as the base year for the proposed Lodi Redevelopment Plan. In accordance with Section 33328, on January 14, 2002, the County Auditor issued the Report of the County Fiscal Officer that contains the base year values for secured and unsecured property in the proposed Project Area for FY 2001/02. A. Statutory Requirements Section 33352(1) of the CRL requires a report to the legislative body to contain the county fiscal officer's report required by Section 33328. The Report of the County Fiscal Officer for the Lodi Redevelopment Project (33328 Report) is provided as Appendix G. Pursuant to Section 33352(n) of the CRL, this Report on the Plan must include an analysis of the County Fiscal Officer's Report (33328 report) that includes a summary of the Agency's consultation, or attempts to consult, with each of the affected taxing entities, and a response to any of the affected taxing entities' written concerns about the proposed Lodi Redevelopment Project.. (Summaries of the consultations with affected taxing entities are included in Chapter XI1, while the analysis of the fiscal report is included in the next sections of this chapter.) Section 33328 of the CRL requires that: The county officials charged with the responsibility of allocating taxes under Section 33670 and 33670.5 shall prepare and deliver to the redevelopment agency and each of the taxing entities, a report which shall include the following.• (a) The total assessed valuation of all taxable property within the project area as shown on the base year assessment roll. (b) The identifications of each taxing entity levying taxes in the project area. (c) The amount of tax revenue to be derived by each taxing entityfrom the base year assessment roll from the project area, including state subventions for homeowners, business inventory, and similar subventions. (d) For each taxing entity, its total ad valorem tax revenues from all property within its boundaries, whether inside or outside the project area. (e) The estimated first year taxes available to the redevelopment agency, if any, based upon information submitted by the redevelopment agency, broken down by taxing entities. 69 The assessed valuation of the project area for the preceding year, or, if requested by the redevelopment agency, for the preceding five years, except for state assessed property on the board roll. However, in preparing this information, the requirements of Section 33670.5 shall be observed. The assessed value shall be reported by block if the property is divided by blocks, or by any other geographical area as may be agreed upon by the agency and county officials. Lodi Redevelopment Agency Xl-1 Report on the Plan Lodi Redevelopment Project April 2002 B. Total Assessed Valuation of all Taxable Property within the Project Area as Shown on the Base Year Assessment Roll ' The FY 2001/02 base year value reported by the County of San Joaquin Auditor for the Lodi Redevelopment Project is $540,175,192. 1 The State Board of Equalization reported the assessed values of railroads and the non-operating, non - unitary assessed values of state -assessed property located within the boundaries of the proposed Lodi Redevelopment Project to be $2,347,706 in FY 2001/02. C. Identification of Each Taxing Entity Levying Property Taxes , in the Project Area As shown on Schedules III and IV of the County Fiscal Officer's Report, the following taxing entities were identified in the Project Area: 1. County General 2. Lodi Unified Schools , 3. San Joaquin County Delta Community College 4. County Office of Education 5. San Joaquin County Flood Control 6. San Joaquin County Mosquito Abatement 7. North San Joaquin Water Conservation 8. City of Lodi D. Ad Valorem Tax Revenues Derived by Each Taxing Entity from the Base Year Assessment Roll of the Project Area As shown in the County Fiscal Officer's Report, the tax revenue to be derived by the affected taxing , entities from all properties within the Project Area boundaries for the FY 2001/02 base year is about $5.3 million. The proportionate share of tax revenue for each affected taxing entity is indicated in Table XI -1. ' 1 n Lodi Redevelopment Agency XI -2 Report on the Plan ' Lodi Redevelopment Project April 2002 Table XI -1 Ad Valorem Tax Revenues Derived from Base Year FY 2001/02 Lodi The County Fiscal Officer's Report includes the total ad valorem tax revenues for each taxing entity, both within the Project Area boundaries and the total amount received inside and outside the Project Area. Based on the revenue estimates, almost three fourths of taxing entities (5 of 8) derive less than two percent of revenues from Countywide property taxes within the Project Area. The listing below shows the percentage of total tax revenues derived by each affected taxing entity from properties within the Project Area. Table XI -2 Basic Property Tax Revenues Generated in Project Area and Totals for Taxing Entities Derived from Base Year FY 2001102 Lodi Project Area Total Tax % County General Tax from Tax 1.8% Project Area Distribution County General $1,147,631 21.7% Lodi Unified Schools $1,464,269 27.6% San Joaquin Co. Delta Community College $205,858 3.9% County Office of Education $73,607 1.4% San Joaquin County Flood Control $9,028 0.2% San Joaquin County Mosquito Abatement $40,545 0.8% North San Joaquin Water Conservation $27,129 0.5% City of Lodi $868,301 16.4% Education Revenue Augmentation Fund (ERAF) $1,460,347 27.6% $1,460,347 $5,296,715 100.0% The County Fiscal Officer's Report includes the total ad valorem tax revenues for each taxing entity, both within the Project Area boundaries and the total amount received inside and outside the Project Area. Based on the revenue estimates, almost three fourths of taxing entities (5 of 8) derive less than two percent of revenues from Countywide property taxes within the Project Area. The listing below shows the percentage of total tax revenues derived by each affected taxing entity from properties within the Project Area. Table XI -2 Basic Property Tax Revenues Generated in Project Area and Totals for Taxing Entities Derived from Base Year FY 2001102 Lodi Project Area Total Tax % County General $1,147,631 $64,928,960 1.8% Lodi Unified Schools $1,464,269 $20,310,486 7.2% San Joaquin Co. Delta Community College $205,858 $10,938,990 1.9% County Office of Education $73,607 $3,999,590 1.8% San Joaquin County Flood Control $9,028 $500,467 1.8% San Joaquin County Mosquito Abatement $40,545 $2,239,178 1.8% North San Joaquin Water Conservation $27,129 $162,214 16.7% City of Lodi $868,301 $5,407,579 16.1% Education Revenue Augmentation Fund (ERAF) $1,460,347 $82,699,269 1.8% $5,296,715 $191,186,733 2.8% E. Estimated First Year Taxes Available to the Redevelopment Agency The County Fiscal Officer's Report does not provide an estimate of the first year tax increment available to the Agency. However, based on projections of tax increment revenues contained in Appendix H, the Agency would receive zero dollars in the first year of the Redevelopment Plan. Lodi Redevelopment Agency XI -3 Report on the Plan Lodi Redevelopment Project April 2002 XII. Summary of Consultations with Taxing Entities A. Statutory Requirements CRL Section 33328 requires an agency prior to publication of a notice of the public hearing on a proposed redevelopment plan to consult with affected taxing entities with respect to the proposed redevelopment plan and the allocation of tax increment revenues. Pursuant to Section 33352(n), if, as part of these consultations, any of the affected taxing entities express written objections or concerns with the proposed project area, an agency must include a response to these concerns, additional information, if any, and, at the discretion of the agency, proposed or adopted mitigation measures. R. Agency Contacts with Affected Taxing Entities Each of the eight taxing entities affected by the proposed Redevelopment Project was sent a copy of the following: • Statement of Preparation of the Redevelopment Plan • Notice of Preparation of the Draft Environmental Impact Report • Preliminary Report on the Plan • Draft Environmental impact Report The Draft Redevelopment Plan and the Notice of the Joint Public Hearing are scheduled to be transmitted in May 2002. The Agency consulted or attempted to consult with each of the affected taxing agencies through meetings and telephone follow-up. The results of the consultations with the taxing entities affected by the Redevelopment Project are summarized below: County of San Joaquin The City began consultation with the County regarding the establishment of a Lodi Project Area prior to the City establishing the Agency and continued to discuss the proposed plan adoption. Agency staff's last conversation with the County was with Rich Laiblin of the County Administrator's Office on January 10, 2002. At that time he did not express any concerns regarding the proposed Redevelopment Plan. City of Lodi The City of Lodi essentially initiated this redevelopment program. The City Manager, who is also the Executive Director of the Agency, has provided direction since the inception of the establishment of the Project Area. Lodi Unified School District Staff of the Redevelopment Agency have had numerous conversations with representatives of the Lodi Unified School District. The Assistant Superintendent for Facilities and Planning discussed with the Agency the impacts of being included within the Project Area. The Agency has received no response from the Lodi Unified School District. Lodi Redevelopment Agency XII -1 Report on the Plan Lodi Redevelopment Project April 2002 Lodi Redevelopment Agency XII -2 Report on the Plan ' Lodi Redevelopment Project April 2002 San Joaquin Delta Community College The Agency has received no response from the San Joaquin Delta Community College. ' County Office of Education The Agency has received no response from the County Office of Education. ' San Joaquin County Flood Control The Agency has received no response from the San Joaquin County Flood Control District. , San Joaquin County Mosquito Abatement The Agency has received no response from the San Joaquin County Mosquito Abatement District. ' North San Joaquin Water Conservation The Agency has received no response from the North San Joaquin Water Conservation District. ' C. Responses to Written Objections or Concerns of the Affected Taxing Entities If, before or at the joint public hearing on the adoption of the Redevelopment Plan, the Agency receives written objections from the taxing entities, the Agency will prepare and present responses to the City Council prior to the Council's adoption of the Redevelopment Plan. Lodi Redevelopment Agency XII -2 Report on the Plan ' Lodi Redevelopment Project April 2002 XIII. Neighborhood Impact Report Section 33352(m) of the CRL states that a report to the legislative body must contain a neighborhood impact report if the proposed project area contains low or moderate income housing. Because the Lodi Redevelopment Project Area does contain low and moderate -income residential housing, a neighborhood impact report is required. This Chapter summarizes the potential impacts on the neighborhoods in the Lodi Project Area, in accordance with Section 33352(m) of the CRL. The Environmental Impact Report (EIR) for the Proposed Lodi Redevelopment Plan, prepared by Wagstaff and Associates and the Agency, is the source of much of the information included in this Chapter. The EIR examined the potential overall effects of the proposed Redevelopment Plan assuming full attainment of the objectives and activities of the Redevelopment Plan, and resulting full private sector buildout of the Project Area consistent with the General Plan. (The various environmental impact analyses in the EIR are based on the assumption that the Redevelopment Program projects and activities will be highly successful in stimulating improved economic development.) In this way, the EIR avoids understating the environmental impacts that could occur under the Redevelopment Plan. Actual development may be less. A. Statutory Requirements Section 33352(m) of the CRL requires that this Report include a neighborhood impact report: If the project area contains low- or moderate -income housing, a neighborhood impact report which describes in detail the impact of the project upon the residents of the project area and the surrounding areas, in terms ofrelocation, traffic circulation, environmental quality, availability of communityfacilities and services, effect on school population and quality of education, property assessments and taxes, and other matters affecting the physical and social quality of the neighborhood. The neighborhood impact report shall also include all of the following: (1) The number of dwelling units housing persons and families of low or moderate income expected to be destroyed or removed from the low and moderate income housing market as part of a redevelopment project. (2) The number of persons and families of low or moderate income expected to be displaced by the project. (3) The general location of housing to be rehabilitated, developed, or constructed pursuant to Section 33413. (4) The number of dwelling units housing persons and families of low or moderate income planned for construction or rehabilitation, other than replacement housing. (5) The projected means of financing the proposed dwelling units for housing persons and families of low and moderate income planned for construction or rehabilitation. (6) A projected timetable for meeting the plan's relocation, rehabilitation, and replacement housing objectives. Lodi Redevelopment Agency XIII -1 Report on the Plan Lodi Redevelopment Project April 2002 B. Analysis The EIR for the Lodi Redevelopment Plan assessed the environmental impacts of the Redevelopment ' Plan and the program of redevelopment activities (sometimes referred to in this Report as the Redevelopment Program) made possible by and proposed to be undertaken pursuant to the Redevelopment Plan. The Plan adopts all mitigation measures from the EIR. The following summary of , the environmental impact is based in part on the analysis presented in the EIR. The major Redevelopment Program categories include the following: , 1. Economic Development 2. Building Rehabilitation, Facade Improvement, and/or Historic Preservation 3. Public Infrastructure and Facilities ' 4. Neighborhood Preservation, Circulation and Landscaping Improvements 5. Site Preparation and Development , 6. Affordable Housing For a more detailed description of potential redevelopment activities, please refer to the Redevelopment ' Plan and Chapters III and V of this report. The proposed Redevelopment Program emphasizes the elimination of blighting conditions and constraints , that interfere with revitalization and conservation of the proposed Project Area by improving the economic conditions and enhancing residential areas. The direct impact of redevelopment activities will alleviate blight and promote economic development, residential neighborhood conservation and areawide ' public improvements. The Redevelopment Program also reflects the goals and policies of the City's General Plan and economic development studies. ' The direct impact of redevelopment activities will be to aid in the revitalization of the Project Area. The , Redevelopment Program will revitalize areas that exhibit adverse physical and economic conditions; , stimulate private investment in Lodi's commercial areas; improve housing conditions and infrastructure in residential neighborhoods; and provide tax increment funds for the redevelopment activities that are ' needed to alleviate blighting conditions. The secondary impacts of redevelopment activities will be to: improve transportation and circulation; , preserve and create civic, cultural, and educational facilities and amenities as a catalyst for area revitalization; upgrade, modernize and expand public infrastructure; revitalize business areas in the Project Area through business retention, expansion and attraction and tourism promotion; and preserve ' residential neighborhoods. This growth and stabilization will in turn produce several impacts, which are discussed in the following sections. 1. Major EIR Findings One significant, unavoidable impact—an increase in long-term regional emissions for Reactive Organic Gases and Nitrogen Oxide—was identified in the EIR analyses and findings. Other impacts that were , identified as potentially significant could be reduced to less -than -significant levels by inclusion of the mitigation measures listed in the EIR. This EIR has been formulated as a program EIR, a type of EIR authorized by Section 15168 of the California Environmental Quality Act (CEQA) Guidelines for use in documenting the environmental implications of community general plans, redevelopment plans and other "programs" that involve a series ' Lodi Redevelopment Agency XIII -2 Report on the Plan Lodi Redevelopment Project April 2002 , of interrelated actions taken by a governmental authority that can be characterized as one project to achieve an overall program goal. The approach used in preparing the EIR under the "program EIR" authority was to describe the anticipated broad-based, Project Area -wide and community -wide impacts of the proposed Redevelopment Plan. The EIR describes the cumulative, aggregate effects of the combination of anticipated plan -related actions and facilitated development on future Project Area -wide and community -wide environmental conditions. In light of the special status of redevelopment plans under CEQA and as interpreted by recent case law (Friends of Mammoth v. Town of Mammoth Lakes), an EIR must evaluate at a project level, rather than a program level, each redevelopment activity of the proposed program for which sufficient information is available with respect to site location, project design, and total buildout to enable and require project -level evaluation. The proposed Redevelopment Program does not contain any proposed program for which sufficient location, design, and buildout information is known to date. Thus, all programs and projects included in the proposed Redevelopment Program were analyzed at a program level consistent with the State CEQA Guidelines. 2. Relocation At this time, the Agency has not proposed any redevelopment actions that would result in the displacement of individuals from their homes. If in the future the Agency were to take action that would cause displacement, the Agency prior to taking the action, would establish a method and plan for relocation of families and persons to be displaced in connection with any Lodi Redevelopment Agency project. The adopted Agency relocation policy will comply with CRL Section 33367(d)(7), which requires a redevelopment agency to have a feasible relocation method or plan if the agency's redevelopment plans are to result in the displacement of any households in a project area. 3. Transportation, Circulation and Parking The transportation system serving the Project Area consists of a network of regional roadways, local roads, transit services, rail lines, pedestrian and bicycle provisions, and parking facilities. The Redevelopment Program would improve traffic signalization and traffic circulation at critical intersections, especially along Cherokee Lane. The EIR states that the increased traffic on surrounding roadways would be a less than significant impact since intersections would maintain acceptable levels of services. The increase in transit use generated by the Redevelopment Project -facilitated development would generate increased demand for some local and interregional transit services, but would not be expected to have a significant adverse impact on the services. The Redevelopment Program will encourage alternative transportation by improved bicycle and pedestrian circulation. Redevelopment would create a comprehensive pedestrian and bicycle network, providing linkages and improving access to Downtown from the proposed Multi -modal Train Station and Transit Center. The EIR states that it is expected that additional traffic on existing and planned bicycle and pedestrian facilities could be accommodated by existing and planned facilities. The Redevelopment Program includes creating a comprehensive pedestrian and bicycle network, providing linkages and improving access to Downtown from the proposed Multi -modal Train Station and Transit Center; providing pedestrian access to the Transit Center; continuing to provide new sidewalks and/or widening sidewalks in the Downtown, neighborhoods and other areas; and improving street signs and streetlights in the Downtown, neighborhoods and other areas. Project -facilitated development may also increase demand for on and off street parking in the Project Area. However, the increased demand is not expected to cause adverse impacts on parking conditions Lodi Redevelopment Agency XIII -3 Report on the Plan Lodi Redevelopment Project April 2002 Project -facilitated construction has the potential for exposing construction workers and future site ' occupants to spills, leaks and other discharges of existing hazardous materials or wastes. In addition, hazardous substances may be stored, generated, and/or used in association with project -facilitated new commercial, industrial or other uses within the Project Area. The EIR recommends measures that would be expected to reduce the potentially significant health and safety impacts associated with potential exposure to hazardous materials to a less -than -significant level. b. Population I The Redevelopment Project could potentially add to population growth in the Project Area. The Redevelopment Project would be expected to facilitate and encourage improvement to the Project Area housing stock and, by extension, population growth within the Project Area. The EIR estimates that , between the years 2001 and 2020, the Project Area housing total would increase by an estimated 210 units with the Redevelopment Project (roughly 4.1 percent of the projected Citywide 2001-2020 housing increase of 5,160 units). This anticipated housing increase and associated population increase would not I in and of themselves constitute a significant adverse environmental impact. Based on an average household size of 2.56 persons per household, the population increase associated because the Redevelopment Plan includes provisions for development of parking in Downtown Lodi and , along Cherokee Lane. In addition, individual developments facilitated by redevelopment would continue to be subject to the City's design review and parking requirements. , Project -facilitated development may contribute to the existing jobs/housing imbalance in Lodi. The , 4. Environmental Quality exacerbate this imbalance, constituting a potentially significant adverse impact. The implementation of all relevant mitigation measures identified in EIR pertaining to project -related commute period vehicular ' Redevelopment activities will generally enhance the environmental quality of the Project Area by improving neighborhoods and facilitating a hazardous materials cleanup program. Achievement of the basic redevelopment objective of blight elimination, as made possible by the Redevelopment Plan, is, in itself, a positive environmental impact. ' a. Hazardous Materials The City is required by state hazardous materials regulatory agencies to assign or accept responsibility for cleanup of the groundwater contamination in several areas with contaminated groundwater. Three of four contamination "hot spots" are partially or completely within the proposed Project Area. The City is currently involved in litigation with insurance companies representing prior site occupants suspected of , earlier contamination. Responsibility for cleanup of suspected groundwater contamination sources will be determined and cleanup is expected to occur pending a final decision in Iitigation. Most of this cleanup will occur independently of the Redevelopment Plan. However, remediation may be required on a project by project basis prior to initiation of any redevelopment -related construction that may have the potential to disturb or disperse already contaminated groundwater. The proposed Redevelopment Program includes the facilitation of a hazardous materials cleanup program to aid in any required future site-specific predevelopment remediation activities. Project -facilitated construction has the potential for exposing construction workers and future site ' occupants to spills, leaks and other discharges of existing hazardous materials or wastes. In addition, hazardous substances may be stored, generated, and/or used in association with project -facilitated new commercial, industrial or other uses within the Project Area. The EIR recommends measures that would be expected to reduce the potentially significant health and safety impacts associated with potential exposure to hazardous materials to a less -than -significant level. b. Population I The Redevelopment Project could potentially add to population growth in the Project Area. The Redevelopment Project would be expected to facilitate and encourage improvement to the Project Area housing stock and, by extension, population growth within the Project Area. The EIR estimates that , between the years 2001 and 2020, the Project Area housing total would increase by an estimated 210 units with the Redevelopment Project (roughly 4.1 percent of the projected Citywide 2001-2020 housing increase of 5,160 units). This anticipated housing increase and associated population increase would not I in and of themselves constitute a significant adverse environmental impact. Based on an average household size of 2.56 persons per household, the population increase associated with 210 additional housing units (538 persons) would be well within the allowable two -percent annual , population increase under the City's Growth Management Plan. Project -facilitated development may contribute to the existing jobs/housing imbalance in Lodi. The , projected addition of a substantially greater number of jobs than housing units in the Project Area would exacerbate this imbalance, constituting a potentially significant adverse impact. The implementation of all relevant mitigation measures identified in EIR pertaining to project -related commute period vehicular ' traffic increases and associated project and cumulative transportation system impacts would reduce the environmental effects associated with project -related incommuting to less -than -significant levels. Lodi Redevelopment Agency XI114 Report on the Plan Lodi Redevelopment Project April 2002 ' Land Use and Applicable Land Use Plans and Policies Redevelopment under the Redevelopment Program will provide opportunities for the City to enhance its residential character, stimulate private investment, and promote economic development. The EIR provides an evaluation of the Redevelopment Program's consistency with the goals and policies of relevant local and regional plans. Its findings include the following: • The General Plan goals, objectives and policies would govern all actions set forth in the Redevelopment Plan. • The City of Lodi zoning ordinance is intended to serve as a tool for implementing the City's General Plan. • The Central City Revitalization Program (Revitalization Program) was adopted as City Council policy in 1994 and is intended to be a General Plan implementation tool for revitalizing the downtown, the Cherokee Lane corridor and the East Side residential neighborhood. • The City's Downtown Development Standards and Guidelines were developed in 1997 as an implementation tool of the adopted Revitalization Program. The primary purpose of the Standards and Guidelines is to ensure that high-quality design standards are maintained for all new construction and rehabilitation projects within the downtown. • The proposed Redevelopment Plan would establish the land uses set forth in the current and future City of Lodi General Plan as the permitted uses within the Project Area. The EIR states that redevelopment -facilitated development in the Project Area would occur primarily as infill, with no significant change in established community -wide or central area land use patterns. In the East Side residential neighborhood, existing land use incompatibilities resulting from multi -family residential uses would be expected to be improved. Infill development and rehabilitation activity would be expected to foster central area consolidation and nuisance reduction, which would be positive land use effects. The EIR also found that in addition to beneficial land use compatibility effects, some redevelopment - facilitated land use changes could result in adverse land use compatibility impacts. Given the proximity of some existing, planned and anticipated residential uses to existing and planned commercial and industrial areas, project -assisted intensification could introduce significant new land use conflicts among specific residential, commercial, and industrial developments (e.g., traffic, visual, light, noise, parking, odor and other conflicts). The EIR includes measures to reduce potential land use compatibility impacts to a less than significant level: • During City review and prior to approval of individual projects within the Project Area, emphasize the need to avoid significant new land use conflicts. • Require assurances to City satisfaction of: (1) adequate land use separation, scale transition, and noise buffering; (2) creative siting of buildings to avoid conflicts; (3) adequate protections against light, glare, and shadow impacts; (4) adequate odor control; (5) adequate offstreet parking provisions; (6) adequate and safe truck access and offstreet loading provisions; and (7) other common measures warranted to avoid such land use conflicts. d. Biology Most of the Project Area is already developed with industrial, residential and commercial uses, and anticipated new development and intensification would not have a significant impact on the general vegetation and wildlife habitat values of the Project Area. The remaining undeveloped and underdeveloped land in the Project Area has already been disturbed by past agricultural and development activities, limiting its habitat value. Redevelopment -facilitated development would be expected to replace Lodi Redevelopment Agency X111-5 Report on the Plan Lodi Redevelopment Project April 2002 Redevelopment program -facilitated building construction and infrastructure improvements in the Project ' some remaining existing, largely degraded vegetation and wildlife habitats with new structures and ' landscaping. Although chances of encountering special -status species in the Project Area are low, redevelopment - facilitated development may result in impacts on special status species. To reduce biological impacts, the ' EIR includes the following mitigation measure: ' • Some suitable habitat for giant garter snake may be present along drainage ditches in the Project , Area. If disturbance to suitable giant garter snake habitat (i.e. drainage ditches) is proposed as part of a redevelopment -assisted development or improvement project, systematic surveys will be conducted ' before development is approved. If any populations are encountered, an appropriate mitigation plan , will be developed, in consultation with affected resource agencies. of these requirements will reduce this impact to a less -than -significant level. Redevelopment -facilitated development could affect potential jurisdictional wetland habitat. Some disturbance of wetlands could be associated with redevelopment -assisted development on vacant or underused parcels that contain seasonal wetlands or drainage ditches. The EIR requires that, to mitigate potential wetland impacts, development that would involve modifications to potential wetlands and other , waters be coordinated with the California Department of Fish and Game and the U.S. Army Corps of Engineers. Any required mitigation protocols and associated individual project design modifications will be incorporated into proposed improvement plans during the initial stages of project review. These measures would ensure that potential impacts on wetland resources would be minimized and adequate replacement would be provided, mitigating any potential impact to a less -than -significant level. , C. Drainage and Water Quality The proposed Redevelopment Program includes the implementation of storm drain, wastewater and water distribution improvements in the East Side neighborhood, along Cherokee Lane and Downtown. These ' activities will have a positive environmental impact. As redevelopment -facilitated development in the Project Area would be limited to areas that are already , substantially developed, the increment of additional impervious surface (buildings, pavement, etc.) and related stormwater runoff rate increase would be minimal. In addition, development facilitated by the project would not be expected to alter surface water drainage patterns or interfere with surface water flows. Redevelopment program -facilitated building construction and infrastructure improvements in the Project Area could further degrade downstream water quality. Associated factors that may contribute to ' downstream water quality problems include soil disturbance during construction; new impervious surfaces created with project -facilitated developments and increased vehicle traffic; and herbicides, pesticides, and fertilizers from new landscaping associated with project -facilitated development. New ' project -facilitated commercial operations could contaminate surface and groundwater if potential pollutants are spilled or disposed of improperly. , The EIR mitigation measure requires applicants for project -facilitated development requiring a discretionary City approval to comply with all applicable state, regional and City water quality provisions. Additional requirements consistent with Regional Water Quality Control Board's (RWQCB) , specifications will be imposed for projects involving the grading of more than five acres. Implementation of these requirements will reduce this impact to a less -than -significant level. Lodi Redevelopment Agency XIII -6 Report on the Plan Lodi Redevelopment Project April 2002 , L Cultural Resources Prehistoric Resources Due to the general nature of the proposed Redevelopment Plan and associated future development activities, it is difficult to forecast the impact of future project -facilitated development on archaeological resources. However, it is possible that archaeological sites could be encountered in the Project Area during construction activities. As included in the EIR, in the event that subsurface cultural resources are encountered during ground -disturbing activities for construction activity, work in the immediate vicinity will be stopped and a qualified archaeologist retained to evaluate the find. The discovery or disturbance of any cultural resources should be reported to the Central California Information Center (CCIC), and if prehistoric, to the Native American Heritage Commission. Mitigation measures prescribed by these groups and required by the City should be undertaken prior to resumption of construction activities. Implementation of this measure would reduce this potential impact to a less -than -significant level. Historic Resources The majority of the historic properties in the City of Lodi are concentrated in the Project Area, specifically in the downtown. Project -facilitated development in the Project Area has the potential to destroy or substantially degrade historic resources, if these resources are not identified or recognized and their maintenance, rehabilitation and/or appropriate reuse are not promoted. This impact would be partially offset by Redevelopment Program assistance for building rehabilitation and historic preservation through low-interest loans and grant funds. Implementation of the following mitigation measure included in the EIR and incorporated in the Redevelopment Plan will reduce potential effects on historic resources to a less -than -significant level. • Evaluate all future project -assisted public improvement projects and private development projects for the presence of, and potential impacts on, historic resources. If disturbance of a historic resource cannot be avoided, implement a mitigation program. Sponsors of projects on sites that contain unlisted structures 45 years or older shall have a qualified architectural historian prepare a report to evaluate the suitability of the structure for historic status. If the structure is determined to be eligible for historic status, the Lodi Planning Commission should determine whether the structure should be preserved in place, offered for relocation to another site, or documented with photographs and a report for submittal to a museum or library prior to demolition. • Alternatively, conduct a single survey of the Project Area. Evaluate any buildings 45 years of age or older and determine their potential architectural and/or historic significance, prior to any project - facilitated development. 5. Community Facilities and Services a. Water Water Sources Additional development facilitated by implementation of the proposed Redevelopment Plan and associated increases in commercial activity, employment, and residential population would result in increases in the demand for water service. The City is prepared to provide the additional domestic water necessary for anticipated additional development in this area within the City's existing water entitlements and distribution systems. However, water table fluctuations due to aquifer overdraft create some uncertainty regarding available water supply for the City's future needs. Implementation of the following two City of Lodi General Plan Land Use and Growth Management Element policies would ensure that project -related impacts on the adequacy of City water sources would be reduced to a less -than -significant level: Lodi Redevelopment Agency X111-7 Report on the Plan Lodi Redevelopment Project April 2002 • The City will develop new facilities, as necessary, to serve new development in accordance with the City's Water, Wastewater, and Drainage Master Plans. • The Citv will assess water, wastewater, and drainage development fees on all new residential, commercial, office and industrial development sufficient to fund required systemwide improvements. Water Distribution The proposed Redevelopment Plan includes implementation of water distribution improvements in the East Side neighborhood, along Cherokee Lane and Downtown. These activities will have a positive environmental impact. The existing water distribution system may not be adequate to serve anticipated new redevelopment - facilitated development and intensification in the Project Area. The existing water distribution system in portions of the Project Area, especially in the East Side residential neighborhood, suffers from aged, deteriorating pipes of varying materials. These pipes may not adequately serve existing development in the short term or project -facilitated new development in the long term. One specific deficiency noted in the City's Water Master Plan is the inadequacy of smaller and older lines throughout the City to supply fire flows. Implementation of the following measure would ensure that project -related impacts on the adequacy of City water distribution system would be reduced to a less -than -significant level: • As project -facilitated development takes place over the next 20 years, implement remaining needed central area water distribution system improvements identified in the City's Water Master Plan. • Promote water conservation as the Project Area redevelops. b. Police and Fire Protection and Emergency Medical Service Implementation of the Redevelopment Plan may lead to an increase in the need for police protection, fire protection, and emergency medical services, and require the purchase of new equipment or the construction of new facilities for additional staff. Full buildout of the Project Area would increase population and the number of businesses in the City of Lodi. However, implementation of the Redevelopment Plan may provide additional resources to both the Police Department and Fire Department. Planned building code enforcement, the redevelopment of dilapidated and abandoned buildings, and new structures would reduce potential fire hazards and provide new buildings that meet all Uniform Fire Codes and Uniform Building. In addition, improvements to the water distribution system and traffic circulation will assist with public safety response systems. Police Redevelopment -facilitated development and intensification within the Project Area would increase demands for police service. The City of Lodi Police Department may require additional staffing or equipment to serve these added demands. Implementation of the following measure would ensure that project -related impacts on the adequacy of police service would be reduced to a less -than -significant level: • The Police Department shall monitor the rate of additional police calls per year associated with the Project Area and the adequacy of associated response times. As warranted by the monitoring data, the City shall provide additional officers and facilities (funded through the City's general fund). Following established City procedures, the Police Department shall also review discretionary approvals for project -facilitated commercial and residential development within the Project Area. Fire Project -facilitated development and intensification within the Project Area would increase demands for fire protection and emergency medical services. Depending on the type of use, density, and occupancy of individual project -facilitated developments, the City of Lodi Fire Department may require additional Lodi Redevelopment Agency XIII -8 Report on the Plan Lodi Redevelopment Project April 2002 1 u r_ staffing or equipment to meet its fire protection goals. Implementation of the following measure would ensure that project -related impacts on the adequacy of fire service would be reduced to a less -than - significant level: • The Fire Department shall monitor the rate of additional fire protection service calls per year associated with the Project Area and the adequacy of associated response times. If warranted by the monitoring data, the City shall provide additional firefighters and equipment (funded through the City's general fund). • The Fire Department shall also review discretionary approvals for project -facilitated commercial and residential development within the Project Area. C. Sanitary Sewer Services The proposed Redevelopment Program includes implementation of wastewater distribution improvements in the Eastside neighborhood, along Cherokee Lane and Downtown. These improvements will have a positive environmental impact. Sewage Collection The existing wastewater collection system serving the Project Area may not be adequate to serve anticipated new development and intensification in the Project Area. The existing wastewater collection system, especially within the eastern portion of the city, including the Project Area, contains some lines that are approximately 100 years old. These conditions have resulted in excessive infiltration and inflow in some areas, especially the East Side residential neighborhood. Much of the infiltration and inflow problem has been addressed with corrective action completed. An improvement program for the East Side residential neighborhood is planned for completion over the next 10 years. Implementation of the following measure would ensure that project -related impacts on the sewage collection system would be reduced to a less -than -significant level: • Continue to implement the central area sewage collection system improvements identified as needed in the City of Lodi General Plan, and the City's Sanitary Sewer System Technical Report, including the planned improvements to East Side neighborhood collection system. Implementation of these measures over the next 20 years would reduce project wastewater collection system impacts to a less - than -significant level. Sewage Treatment Redevelopment -facilitated development intensification in the Project Area would increase the demand for sewage treatment. Sewage collection and treatment facilities are expected to be adequate to serve General Plan buildout. As required by state law, additional project -facilitated development would be consistent with the General Plan. No significant impacts related to wastewater treatment were identified in the City of Lodi General Plan EIR. d. Parks and Recreation The proposed Redevelopment Program includes assistance in providing facilities to serve residents in the Project Area, such as community centers, libraries, and education and training centers. These activities will have a positive environmental impact. Park and recreation facilities in the Project Area are already operating at capacity. Redevelopment - facilitated development and intensification in the Project Area would increase the demand for park and recreation services. Redevelopment -facilitated population growth'(approximately 538 people) and employment growth (2,014 jobs) would generate some additional demand for park and recreation services in the Project Area. Existing Project Area facilities do not have sufficient capacity to accommodate this additional demand. Implementation of the following measure would ensure that project -related impacts on parks and recreation would be reduced to a less -than -significant level: Lodi Redevelopment Agency XIII -9 Report on the Plan Lodi Redevelopment Project April 2002 Pursuant to CRL Section 33607.5, the Lodi Redevelopment Agency would be required to make statutory , • The City shall ensure that at least 1.83 acres of parkland is developed within or convenient to the Project Area. As project -facilitated buildout takes place in the Project Area, adequate corresponding park and recreation provisions shall be provided through required dedication of land and/or in -lieu ' payment of City adopted park and recreation fees. C. Solid Waste and Recycling ' The proposed Lodi Redevelopment Plan would increase the production of solid waste. Total estimated , waste generation associated with the projected redevelopment -facilitated Project Area growth increments would be approximately 9,940 tons per year, or 20 to 30 tons per average day. The North County Sanitary ' Landfill has an estimated 30 years of remaining capacity, sufficient to accommodate solid waste that ' would be generated by new development associated with the proposed redevelopment project. The EIR ' did not identify any significant solid waste disposal impacts. 6. School Population and Quality of Education The EIR estimates that new residential development in the Project Area would result in increase an ' increase of 93 students in the Lodi Unified School District (LUSD) over the 20 -year buildout period. The actual effect of this number of new students would depend on future enrollment and capacity conditions at ' LUSD schools. Existing LUSD schools serving the Project Area may not have sufficient capacity to accommodate the additional school population generated by project -facilitated residential development. ' Pursuant to CRL Section 33607.5, the Lodi Redevelopment Agency would be required to make statutory pass-through payments of tax increment revenue to affected school districts. Statutory Agency pass- through payments constitute the exclusive payments required to be made by the Redevelopment Agency to mitigate any significant environmental effect of the adoption and implementation of the proposed Redevelopment Plan. Implementation of the following measures would ensure that project -related impacts on schools would be reduced to a less -than -significant level. They would be expected to enable the LUSD to fund school improvements necessary to accommodate students from project -facilitated development: , • The Lodi Redevelopment Agency shall make the statutory pass-through payment of tax increment revenue to the LUSD and the San Joaquin County Office of Education pursuant to CRL Section 33607.5. ' • The City of Lodi shall require developers in the redevelopment area to pay state -authorized school impact fees to the extent approved by the LUSD. • Individual applicants may also choose to enter into agreements with the LUSD to ' project provide additional impact fees negotiated with the LUSD. 7. Effect on Property Assessments and Taxes , Chapter IV of this Report has already provided an overview of the tax increment financing process proposed to be employed by the Agency to fund the redevelopment activities described in Chapter III. ' Under this process, all entities collecting property tax revenues from lands lying within the Project Area would continue to receive the base year level of revenue from the Project Area at a constant annual rate during the redevelopment period. Any additional revenues generated by new development in the Project Area are used to pay the Agency's debts, for low and moderate income housing activities and to pay the ' statutory mandated pass-throughs to affected taxing entities. Affected taxing entities would continue to receive annual increases in property tax revenue from other portions of their tax rate areas lying outside of the geographic boundaries of the Project Area. , Lodi Redevelopment Agency XIII -10 Report on the Plan Lodi Redevelopment Project April 2002 , If adopted as planned, the Base Year for the Redevelopment Plan would be Fiscal Year 2001/02. Thereafter, until the end of the redevelopment period, incremental increases in property tax revenues derived from growth in the assessed value of the Project Area, less statutorily mandated payments to affected taxing entities, are proposed to be allocated to the Agency to fund the Redevelopment Plan. This allocation would not occur automatically; the Agency would annually be required to establish the amount of outstanding indebtedness and file a report with the County Auditor -Controller to demonstrate how the tax increment revenues were being used to repay debts. Each entity would continue to receive its property taxes on the Base Year Assessed Value in the Project Area. Only property taxes generated on the growth of assessed value would be allocated to the Agency. These revenues are called "tax increment." Under AB 1290, the Agency is also required to make a set of fixed formula "pass-through" payments to each entity out of this tax increment. Property tax contributions vary for each entity depending upon the proportion of their property tax revenues that are generated within the Project Area and upon their required pass-through payments under AB 1290. Chapter IV describes these payments in detail. a. Entities Affected According to the San Joaquin County Controller's Report to Taxing Entities of January 14, 2002, there are eight different levies on property taxes, not including levies in excess of the one percent "Proposition 13" limitation to cover debt service on outstanding bonds.` 1. City General Fund 2. County General Fund 3. Lodi Unified Schools 4. San Joaquin Delta Community College 5. County Office of Education 6. San Joaquin County Flood Control 7. San Joaquin County Mosquito Abatement 8. North San Joaquin Water Conservation Appendix G presents the Auditor -Controller's Report, which lists the taxing entities and levies, and shows the FY 2001/02 distribution of property tax revenues derived by each taxing entity. b. Impact As documented in Chapter II, without redevelopment assistance, the Project Area will continue to suffer from a multitude of adverse physical and economic conditions that will continue to discourage new investment and growth in property values. Since the redevelopment activities are expressly designed to alleviate these conditions and encourage economic growth, it is reasonable to conclude that a significant portion of the projected growth in property values should be attributed to redevelopment. In other words, without redevelopment, a major portion of the tax increment revenue would not have been generated in the first place. Second, in the case of the non -basic aid school districts or offices, the contributed revenue does not translate into a direct loss of revenue for local school and community college districts because the state makes up the difference in property tax revenues that a school or community college district receives with and without a redevelopment project in place. The property tax levies above the one percent property tax limitation of Article XII are not considered in the fiscal impact analysis, as these funds are fully distributed to the entities, which have outstanding bonds. Lodi Redevelopment Agency XIII -11 Report on the Plan Lodi Redevelopment Project April 2002 The Redevelopment Plan's fiscal impacts upon services would be offset by substantial benefits (both , physical and fiscal), and would be derived from the planned public improvements, improved housing stock, increased sales tax revenues, and a revitalized climate anticipated from the Redevelopment Plan. 8. Physical and Social Quality of Neighborhood a. Air Quality Construction Activity Air Quality Impacts ' Construction activities facilitated by the proposed Redevelopment Project could generate construction period exhaust emissions and fugitive dust that could affect local air quality. Implementation of the , following measures would ensure that project -related construction impacts on air quality would be reduced to a less -than -significant level. • The City shall require that individual redevelopment -facilitated projects within the Project Area involving new construction shall comply, where applicable, with current San Joaquin Valley Unified Air Pollution Control District regulations. • In addition, where appropriate, the City may also require the following: , — A limitation on traffic speeds on unpaved roads to 15 miles per hour (mph); — Installation of wheel washers for all exiting trucks, or wash off all trucks and equipment leaving the site; ' — Suspension of excavation and grading activities when winds exceed 20 mph; and/or — A limitation on the size of the area subject to excavation, grading or other construction activity at any one time to avoid excessive dust. Long -Term Regional Emissions Increases The EIR determined that emissions resulting from new vehicle trips generated by redevelopment- ' facilitated intensification in the Project Area would, by the year 2020, be expected to exceed the applicable thresholds of significance for Reactive Organic Gases and Nitrogen Oxides, resulting in a significant project impact. When this increase in "mobile emissions" is considered cumulatively with. ' possible new industrial "stationary sources" of emissions that could locate within the Project Area, the total of project -related indirect and direct emissions would also exceed applicable significance thresholds. The EIR provides that the following emissions control strategies shall be applied to redevelopment ' program -facilitated development activities within the Project Area: • Where practical, future development proposals shall include physical improvements, such as sidewalk ' improvements, landscaping, lighting and the installation of bus shelters and bicycle parking, that would act as incentives for pedestrian, bicycle and transit modes of travel. • Employment -generating development projects of 10,000 square feet (approximately 25 employees) or ' more shall be required to provide secure and weather -protected bicycle and shower/locker facilities for employees. • Employment -generating development projects shall provide carpool/vanpool incentives, develop an , employee rideshare incentives program, or use other feasible transportation demand measures to reduce vehicle trip generation. , Implementation of these measures would assist in reducing identified project and cumulative impacts on long-term regional emissions levels. It is estimated that the above measures would reduce regional indirect emissions by five to seven percent. This reduction would not reduce this impact to a less -than- ' Lodi Redevelopment Agency XIII -12 Report on the Plan Lodi Redevelopment Project April 2002 , significant level even in the absence of potential industrial emissions. Since no other feasible measures are available, these identified project and cumulative effects on regional air emissions would represent a significant unavoidable impact. b. Noise At this time, the exact location and nature of development projects facilitated by the proposed redevelopment plan are not known, and the compatibility of the proposed land uses and the noise environment on the sites cannot be evaluated. Given existing noise levels in the Project Area, City policy would require noise impact analysis for many discretionary development applications involving sites in the area. Project -facilitated intensification of and changes in land uses in the Project Area could expose additional people to noise levels exceeding acceptable levels. Noise impacts can be reduced through appropriate site planning (e.g., setbacks, noise -protected areas), construction of noise barriers, and/or incorporation of noise insulation features into a project's design as specified in the City of Lodi General Plan. As part of the future environmental review process for individual projects, new developments facilitated by the redevelopment plan shall be evaluated. The results of the noise assessments and the measures identified to reduce noise levels shall be incorporated in the project plans sufficient to meet exterior and interior noise level standards. All such evaluations shall be completed to City satisfaction by a qualified acoustical consultant. To reduce the potential for noise impacts resulting from project -facilitated construction activities, the EIR recommends implementation of a combination of measures at all construction sites when noise -sensitive receptors are located in the project vicinity. The combination of measures shall be evaluated on an individual, project -by -project basis and shall be sufficient to achieve compliance with applicable City General Plan and/or Noise Ordinance standards at affected receptors. C. Other Matters Affecting the Physical and Social Quality of the Neighborhood The Proposed Redevelopment Plan will have a beneficial impact upon the residents, property owners and businesses in the Project Afea. This will be accomplished by rehabilitating and preserving the residential neighborhoods, alleviating blighting conditions and removing barriers to development. Implementation of the Redevelopment Plan will bring about coordinated growth and development, making the Project Area a more attractive area, which in turn should stimulate reinvestment. More importantly, the Redevelopment Plan will eliminate blighting influences, which deter and negatively impact the Project Area as a whole. Through the Agency's involvement in facilitating the rehabilitation of income eligible units, the redevelopment process will also improve the quality of housing in the project area. Commercial development projects that will be brought about as a result of redevelopment action will alleviate blighting conditions, stimulate the local economy and increase the employment opportunities for surrounding residents. The Agency's proposed commercial fagade improvement program will enhance the attractiveness and visibility of the existing commercial areas. C. Impact of Plan on Housing The Redevelopment Plan would result in an increase of funds available for the development of affordable housing throughout the City. The Agency will allocate at least 20 percent of the distributed tax increment revenue to the development, rehabilitation and preservation of housing affordable to qualifying households. The rehabilitation of deteriorated or vacant structures could constitute a beneficial impact. Lodi Redevelopment Agency XIII -13 Report on the Plan Lodi Redevelopment Project April 2002 The following text addresses the six specific housing data requirements in accordance with CRL Section 33352(m). 1. Removal or Destruction of Low or Moderate Income Housing The destruction or removal of existing housing units is not an objective of the Lodi Redevelopment Plan. The Agency does not have any current plans that would result in the removal of low and moderate income housing from within the Project Area. As indicated in Chapter VI on relocation, at this time, the Agency has no plans to destroy or remove any dwelling unit that houses persons or households of low or moderate income in the Project Area. Should any relocation be necessary for residents, a relocation plan will be adopted prior to displacement and relocation benefits would be provided in accordance with state law. 2. Number of Low or Moderate -Income Persons/Families Expected to Be Displaced The Agency does not have any plans that would result in the displacement of low and moderate income housing from within the Project Area at this time. The Lodi Redevelopment Project does not contemplate the displacement of any existing housing within the Project Area. A situation may arise where the rehabilitation of a severely deteriorated or dilapidated unit or units, used as housing, may necessitate the displacement of current residents. In such instances the Agency will ensure that the relocation will be undertaken in a manner providing all benefits and resources available under the law. In no event, however, will there be a displacement of a substantial number of low or moderate -income persons. 3. General Location of Housing to Be Rehabilitated, Developed or Constructed The Lodi Redevelopment Project does not contemplate the destruction or removal of any low or moderate income housing units at this time. If it were to be determined that the acquisition of real property, or the execution of an agreement for the disposition and development of property, or the execution of a participation agreement, necessary to further the established goals of the Lodi Redevelopment Plan, will result in the removal of any units from the low and moderate income housing stock, the Agency shall adopt by resolution, a Replacement Housing Plan. This Replacement Housing Plan shall include all elements required by the CRL. 4. Dwelling Units Housing Persons or Families of Low/Moderate Income Planned for Construction or Rehabilitation, Other than Replacement Housing As described in Chapter V, the Agency's housing production requirements will be met through preserving, improving and increasing the City's supply of low and moderate -income housing. At least 15 percent of all new or substantially rehabilitated housing units developed within the Project Area will be affordable to low and moderate income households. The Agency estimates that over the life of the Redevelopment Plan, about 137 new dwelling units will be developed for low and moderate income households. Refer to Chapter V for a detailed description of the Agency's housing production plan. i Lodi Redevelopment Agency XIII -14 Report on the Plan Lodi Redevelopment Project April 2002 , 5. Means of Financing the Proposed Construction or Rehabilitation of Dwelling Units for Persons or Families of Low/Moderate Income The Housing Set Aside Fund would provide sufficient funds to adequately provide new affordable housing units to offset any loss of units in the Project Area. 6. Timetable for Housing Relocation, Rehabilitation and Replacement The Agency does not have any current plans that would result in the displacement of low and moderate income housing from within the Project Area. Refer to Chapter V for the current schedule for housing production in the Project Area. The Agency will meet all statutory time requirements for relocation and replacement housing as outlined in Chapter VI should any housing units be relocated or replaced. Due to CRL housing affordability requirements, housing assistance activities in the Project Area would be expected to result in beneficial housing impacts by providing additional affordable units that would not otherwise be available without the proposed Redevelopment Plan. The Plan would also help preserve and improve the quality of affordable housing units by providing assistance for rehabilitation of existing affordable units. Lodi Redevelopment Agency XIII -15 Report on the Plan Lodi Redevelopment Project April 2002 Appendix A: Sources SOURCES Draft Redevelopment Plan for the Lodi Redevelopment Project No. 1, Redevelopment Agency of the City of Lodi, April 2002 Draft Environmental Impact Report for the Proposed Lodi Redevelopment Plan, SCH #2001102060, Redevelopment Agency of the City of Lodi, March 2002 Preliminary Plan for the Lodi Redevelopment Project No. 1, Planning Commission of the City of Lodi, June 2001 Market Opportunities and Strategies for the Enhancement of Lodi's Downtown and Industrial Base, Gruen & Gruen Associates, January 1998 City of Lodi Central City Revitalization Program, Concept Development Phase, Freedman Tung & Bottomley, 1994 Draft Lodi Multi -Modal Station: Initial Study/Negative Declaration, ESA, March 1996 City of Lodi Financial Plan and Budget, 1999-2001. City of Lodi General Plan, Adopted Policy Document, March 1991 City of Lodi General Plan, Final Environmental Impact Report, April 1991 City of Lodi General Plan, Policy Document, April 1991 City of Lodi Downtown Development Standards and Guidelines, June 1997 Appraisal of Lodi Multi Modal Station Site, Robert L. Crisp, Inc., August 1995 Proposal for Services Redevelopment Plan and Environmental Documents, Seifel Associates, July 1999 Background Report General Plan Update City of Lodi, January 1988 City of Lodi Draft General plan, Draft Environmental Impact Report, April 1990 City of Lodi East Side Residential Density Study Background Report, Jones & Stokes, November 1986 Engineer's Report for Lodi Central City Revitalization Assessment District No. 95-1, Kjeldsen, Sinnok & Neudeck, Inc., February 1996 1999-2001 Financial Plan and Budget, City of Lodi Appraisal of Property Located at 11 West Elm Street Lodi, CA, Duncan, Duncan & Associates, Inc., May 1998 San Joaquin Council of Governments, Staff Report: Preliminary Draft Regional Housing Needs Allocations, 2001-2008, April 2002. Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project April 2002 San Joaquin Council of Governments: Rosa Trujillo, San Joaquin Council of Governments Other Organizations and Persons Consulted: Industrial/Office/Retail Brokers Chuck Easterling, Real Estate Broker and PAC member Elizabeth Rosenquist, Real Estate Broker Jim Verseput, SSB Realtors Dave Williams, Dave Williams Real Estate Elvera Batres, Century 21 Properties Unlimited Judy Pfeifle, First Commercial Real Estate Residential Brokers Wilma Bauer, SSB Realtors Rose Marie Mendonca, Prudential — Rose Marie Realty Teresa Williams, KWS Real Estate John Wagstaff, Wagstaff and Associates, Environmental Consultant This report was prepared by the Lodi Redevelopment Agency in association with Seifel Consulting Inc. Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project April 2002 San Joaquin County Auditor -Controller -TRA Factors City of Lodi Sales Tax reports (1993-2000) , Historic Sales Tax Trends (from Gruen and Gruen report) ' Lakewood Mall Sales Tax Report , West Kettleman Lane Sales Tax Report East Kettleman Lane Sales Tax Report Downtown Commercial District Sales Tax Report West Lodi Avenue Sales Tax Report South Cherokee Lane Sales Tax Report , North Cherokee Lane Sales Tax Report Data Sources: ' Mappine Baumbach & Piazza, mapping services , San Joaquin County Assessor Parcel Maps 8.5"x11" 11"x14" ' Board of Equalization Valuation Division Maps (poster size) Lodi Conference & Visitors Bureau. http://www.visitiodi.com/history.html , HdL Coren & Cone, Sales Tax Data, 1994-2001. , Dataquick, residential sales data. U.S. Census Bureau, 1990 Census Data, http://venus.census.gov/cdrom/lookup. U.S. Census Bureau, 2000 Census Data, www.factfinder.census.gov. San Joaquin Council of Governments, Population and Research and Forecasting Center, www.sjcog.org/RFC/population/main-age.htm. City of Lodi Staff: ' Dixon Flynn, City Manager Konradt Bartlam, Community Development Director , Jerry Adams, Police Chief, Police Department Betsy Gandy, Police Department Tony Goehring, Economic Development Director Susan Blackston, City Clerk County of San Joaquin: , Adrian Van Houten, Auditor -Controller Gary Freeman, County Assessor ' Ron Sugimoto, Mapping Division, County Assessor's Office Edgardo Siojo, Tax Division, County Auditor's Office ' Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project April 2002 ' Appendix B: Legal Description of the Project Area iFiT', IVa. �'�s�� 1�. Fxp. J•3ti�-+� Ji J\�� ClVI� ATF OF 'A0 September 3, 2001 JOB NO. 0048 CITY OF LODI REDEVELOPMENT PROJECT NO. 1 LEGAL DESCRIPTION OF THE PROJECT AREA BOUNDARY Commencing at a brass disk at the Southwest corner of the Southeast quarter of Section 12, Township 3 North, Range 6 East, Mount Diablo Base and Meridian; thence South 11° 03' 40" West 97.99 feet to an angle point on the South line of State Highway Route No. 12 and the True Point of Beginning; thence along the: South line of said Highway the following four courses: (1) South 860 52' 18" West, 55.24 feet, (2) South 830 26' 17" West, 500.90 feet, (3) South 84° 34' 39" West, 299.36 feet, (4) North 89° 46' 57" West, 453.16,feet; thence North 03' 15' 30" East, 703.0 feet to the North line of Tamarack Drive; thence South 86° 41' 04" West, 10.0 feet; thence North 030 04' 04" East, 67 feet; thence South 860 41' 04" West, 25 feet; thence North 03° 04' 04" East, 100 feet; thence North 86' 41' 04" East, 25 feet; thence North 030 04' 04" East, 215 feet; thence North 860 22' 04" East, 12.70 feet; thence North 02° 25' 44" East, 329.86 feet; thence North 86° 41' 04" East, 22.86 feet; thence North 030 00' 04" East, 112.7 feet; thence South 86° 41' 04" West, 32.91 feet; thence North 030 04' 04" East, 36.96 feet; thence North 86° 41' 04" East, 10 feet; thence North 030 04' 04" East, 252.60 feet more or less to the North line of Park Street; thence along said North line and its westerly projection South 860 39' 04" West, 223.11 01" 04' 00" West, 134.80 feet; thence South 89" 31' 30" West, 50.00 feet; thence South 01' 04' 00" East, 10.80 feet; thence South 890 31' 30" West, 97.30 feet; thence North 010 07, 15" West, 40.00 feet; thence South 890 31' 30" West, 157.34 feet to the West line of Fairmont Avenue; thence along the West line of Fairmont Avenue, South 01° 11' 30" East, 78.00 feet; thence South 89' 31' 30" -West, 219.11 feet to the West line of the CULBERTSON I TRACT as filed in Volume 11 of Maps and Plats, page 53, San Joaquin County Records; thence North 010 11' 30" West, 114.80 feet to the Southeast corner of Lot 29 of the CULBERTSON TRACT; thence South 89° 31' 30" West, 219.11 feet to the Southwest corner of Lot 30 of said CULBERTSON TRACT; thence along the West line of said CULBERTSON TRACT, South 01* 11' 30" East, 161.00 feet; thence South 890 31' 30" West, 259.11 feet to the West line f of Ham Lane; thence along the West line of Ham Lane, North 01* 11' 30" West, 270.00 feet to the centerline of Lodi Avenue; thence continue along the West line of Ham Lane, North 010 05, 20" West, 91.14 feet; thence along the North line of Lot 17 of HUTCHINS HOMESTEAD ADDITION NO. 3 and its westerly project, North 890 33' 37" East, 180.96 feet to the Northeast corner of said Lot 17; thence North 010 12' 00" West, 10.00 feet; thence North 890 33' 37" East, 115.96 feet; thence along the West line of Sunset IDrive, South 01° 19' 00" East, 10.00 feet; thence North 890 33, 37" East, 175.96 feet to the Northeast corner of Lot 51 of said subdivision last described; thence North 01° 26' 00" West, 9.21 feet; thence North 890 33' 37" East, 115.96 feet; thence along the West line of Fairmont Avenue, South 01" 32' 00" West, 4.21 feet; thence North 890 33' 37" East, 175.96 feet; thence South feet to the West line of School Street; thence along the West , line of School Street the following four courses: (1) North 030 05' 34" East, 417.09 feet, (2) North 030 00' 04" East, 558.90 feet, (3) North 020 54' 29" East, 1322.86 feet, (4) North 030 12' 49" East, 943.28 feet to the South line of Chestnut Street; thence along the South line of Chestnut Street, South 850 21' 00" West, 325.78 feet to the southerly projection of the East line of Church Street; thence along the East line of Church Street, North 020 50' 00" East, 165.00 feet; thence South 85° 21' 00" West, 250.00 feet to the West line of an alley; thence along the West and South lines of said alley the following three courses: (1) North 20 50' 00" East, 10.00 feet, (2) North 290 45' 1711 West, ' 33.11 feet, (3) South 850 21' 00" West, 495.00 feet to the East line of Lee Avenue; thence along the East line of Lee Avenue, South 02' 50' 00" West, 200.00 feet to the South line of Chestnut Street; thence along the South line of Chestnut Street, South 85* 21' 00" West, 301.39 feet to the East line of Hutchins Street; thence along the East line of Hutchins Street, South 010 04' 00" East, 73.86 feet; thence South 89° 31' 30" West, 944.15 feet; thence North 010 04' 00" West, 296.40 feet; thence South 89° 31' 30" West, 57.85 feet; thence South 01° 04' 00" East, 5.00 feet; thence South 890 31' 30" West, 390.00 feet; thence South 01' 04' 00" East, 384.80 feet; thence South 890 31' 30" West, 232.00 feet; thence North 1' 04' 00" West, 240.00 feet to the Northeast corner of Lot 24 of TURNAGE SUBDIVISION as filed in Volume 11 of Maps and Plats, page 119, San Joaquin County Records; thence , South 89° 31' 30" West, 100.00 feet to the Northwest corner of said Lot 24' thence along the East line of Orange Avenue, North I 30" East, 10.00 feet, (9) North 01' 19' 00" West, 20.12 feet to [ the westerly extension of the North line of an alley; thence Ialong the North line of the alley and its westerly projection the following five courses: (1) South 870 09' 56" East, 160.03 feet, (2) South 020 50' 04" West, 3.26 feet, (3) South 87' 09' 56" East, 50 feet, (4) South 02° 50' 04" West, 6.46 feet, (5) South i 870 09' 56" East, 520.0 feet to the West line of Pleasant Avenue; thence along the West line of Pleasant Avenue, North 030 00' 04" East, 1050 feet to the South line of Pine Street; thence along the South line of Pine Street North 860 59' 56" West 360 feet to the southerly projection of the West line of Lee Avenue; thence along the West line of Lee Avenue and its southerly projection North 03° 00' 04" East, 960 feet to the North line of Locust Street; thence along the North line of Locust Street, South 860 59' 56" East, 360 feet to the West line of Pleasant Avenue; thence along the'West line of Pleasant Avenue, North 030 00' 04" East, 450.85 feet to the westerly projection of the North line of Lockeford Street; thence along the North line of Lockeford Street and its westerly projection South 86° 59' 56" East, 374.90 feet to an angle point; thence leaving the North line of Lockeford Street, South 800 27' 13" East, 95.2 feet more or less to the Northeast corner of Church and Lockeford Streets; thence South 860 59' 56" East, 297.5 feet to the Northwest corner of Lockeford and School Streets; thence along the West line of School Street and its northerly projection North 010 33' 50" East, 322.64 feet to the North line of De Force Avenue; thence along the North line of De Force Avenue, North 88° 48' 10" East, 28.95 feet more or less to the West line of School Street; thence along the West i West, 50.00 feet, (6) South 89' 31' 30" West, 10.00 feet, (7) 1 North 01° 19' 00" West, 220.00 feet to the North line of Walnut Street, (8) along the West line of Walnut Street, North 890 31' 1 , 01° 45' 00" East, 5.00 feet to the Northwest corner of Lot 86 of said subdivision last described; thence North 890 33' 37" East, 115.96 feet to the Northeast corner of said Lot 86; thence along the West line of Orange Avenue, North 011 45' 00" West, 24.85 feet; thence North 89' 33' 10" East, 187.60 feet; thence South O1° 45' 00" East, 25.00 feet; thence North 89' 33' 10" East, 127.60 feet; thence along the West line of Avena Avenue, South 010 45' 00" East, 0.80 feet; thence North 890 31' 30" East, 192.50 feet; thence North 010 45' 00" West, 22.00 feet; thence North 89' 31' 30" East, 132.50 feet; thence along the West line of Cresent Avenue South 010 45' 00" East, 24.80 feet; thence North 890 31' 30" East, 380.20 feet; thence along the West line of Rose Avenue North 01° 45' 00" West, 60.00 feet; thence North 890 31' 30" East, 230.10 feet; thence along the East line of an alley South 01° 45' 00" East, 56.70 feet; thence North 890 31' 30" East, 150.10'feet; thence along the West line of California Street North 01° 45' 00" West, 56.70 feet; thence along the westerly projection of the South lines of Lots 14 and 6 of Block , 8 of HUTCHINS HIGH SCHOOL ADDITION as filed in Volume 6 of Maps and Plats, page 27, San Joaquin County Records, North 890 31' 30" East, 380.00 feet to the Southeast corner of said Lot 6; thence along the West line of Hutchins Street the following nine courses: (1) North 01° 19' 00" West, 50.00 feet, (2) South 890 31' 30" West, 10.00 feet; (3) North 01' 19' 00" West, 50.00 feet, (4) North 89' 31' 30" East, 10.00 feet, (5) North 01° 19' 00" West, 50.00 feet, (6) South 89' 31' 30" West, 10.00 feet, (7) 1 North 01° 19' 00" West, 220.00 feet to the North line of Walnut Street, (8) along the West line of Walnut Street, North 890 31' 1 length of 32.77 feet; thence along the North line of Donner Avenue and its easterly projection North 890 17' 40" East, 841.11 feet to the East line of Calaveras Street; thence along the East line of Calaveras Street, South 00' 42' 20" East, 412.49 feet; thence along a curve to the left having a radius of 20 feet, a central angle of 90° and an arc length of 31.42 feet; thence along the North line of Pioneer Drive, North 89° 17' 40" East, 66.79 feet to the Southwest corner of Lot 11 of "LAWRENCE RANCH SUBDIVISION, UNIT NO. 1" as filed in Volume 13 of Maps and Plats, page 143, San Joaquin County Records; thence along the West line of said subdivision last described the following four courses: (1) South 40° 23' 40" West, 79.64 feet, (2) South 000 42' 20" East, 104.04 feet, (3) South 82° 45' 10" West, 52.31 feet, (4) South 000 59' 20" East, 358.00 feet to the Northwest corner of Lot 20; thence along the southwesterly line of said Lot 20, South I 610 36' 20" East, 57.38 feet; thence along the West lines of Lots I 20 through 24 inclusive, South 00° 59' 20" East, 276.44 feet; thence South 22' 57' 20" East, 53.45 feet to the Southwest corner of Lot 25; thence along the South lines of Lots 25 through 38 inclusive, North 890 17' 40" East, 818.60 feet to the Southeast corner of Lot 38; thence North 000 42' 20" West, 840.0 feet to the Northeast corner of Lot 116; thence along the South line of Pioneer Drive, North 890 17' 40" East, 366.3 feet to the West line of Cherokee Lane; thence North 750 58' 31" East, 510.71 feet to a point on the East line of Beckman Road, said point also being a point on a curve from which the radial bears South 86° 04' 31" East; thence along the East line of Beckman Road the following ten courses: (1) southeasterly along a curve to the i 1 line of School Street the following seven courses: (1) North 00° 27' 40" East, 111.98 feet, (2) South 89° 01' 06" East, 2.71 feet, (3) North 000 04' East, 801.9 feet, (4) South 85° 34' 58" West, 20.13 feet, (5) North 000 33' 35" East, 395.14 feet more or less to the North line of Forrest Avenue, (6) along the North line of S Forrest Avenue, North 860 12' East, 19.46 feet to the West line of School Street, (7) along the West line of School Street and its northerly projection North of Sacramento Street, North 010 00° 11' East, 427.54 feet to the ten courses: (1)'North 82° 26' 47" East, 82.11 feet, (2) North North line of Louie Avenue; thence along the North line of Louie feet, (4) North 89° 26' 30" East, 130.45 feet, (5) North 030 00' Avenue, North 89° 05' 30" East, 392.45 feet; thence along a curve to the left having a radius of 25 feet, a central angle of 880 East, 40.00 feet to the centerline of Turner Road; thence along 00' and an arc length of 38.40 feet; thence along the West line 05' 30" East, 664.20 feet; thence North 020 35' 32" West, 105.78 feet to the North line of Turner Road; thence along the North line of Turner Road the following ten courses: (1)'North 82° 26' 47" East, 82.11 feet, (2) North 89° 26' 30" East, 8.00 feet, (3) South 820 25' 42" East, 70.71 feet, (4) North 89° 26' 30" East, 130.45 feet, (5) North 030 00' 04" East, 15.03 feet, (6) North 89° 26' 30" East, 100.20 feet, (7) North 03° 00' 04" East, 15.03 feet, (8) North 890 26' 30" East, 246.04 feet, (9) South 78° 54' 30" East, 122.53 feet, (10) North 89° 26' 30" East, 242.59 feet; thence South 0° 33' 30" East, 40.00 feet to the centerline of Turner Road; thence along the East line of Stockton Street as delineated on that Map of "COLONY RANCH" as filed in Volume 24 of Maps and Plats at page 50, San Joaquin County Records and its northerly projection South ' 03° 10' 40" West, 694.37 feet; thence along a curve to the left having a radius of 20 feet, a central angle of 93° 53' and an arc i 89° 53' 16" West, 321.23 feet to the centerline of Cluff Avenue; thence continuing along the South line of Pine Street, South 890 31' 32" West, 673.61 feet to a point of non-tangential curvature; thence along a curve to the left having a radius of 30 feet; a central angle of 900 31' 3211, an arc length of 47.40 feet and a chord that bears South 49° 10' 52" West, 42.62 feet to the most southerly corner of that property conveyed to the City of Lodi by deed recorded in Book 3792 of Official Records, page 312, San Joaquin County Records and the East line of Kelley Street; thence along the East line of Kelley Street and its southerly projection, South 01° 09' 47" East, 1200.42 feet to the South line of the Central California Traction Company Right of Way; thence along the South line of said Right of Way, North 87' 16, West, 856.95 feet to the West line of State Highway Route No. 99; thence along the West line of Highway 99 the following four courses: (1) South 000 49' 00" East, 29.94 feet, (2) South 03° 51' 12" East, 600.66 feet (3) South 00° 48' East, 3032.54 feet, (4) South 01° 10' 10" East, 261.88 feet to the North line of the South half of the Southwest quarter of Section 7, Township 3 North, Range 6 East, Mount Diablo Base and Meridian; thence North 87° 40' 50" West, 138.24 feet; thence South 0' 35' 30" East, 10.0 feet; thence South 470 19' 10" West, 38.20 feet; thence North 870 40' 50" West, 266.09 feet; thence North 4211 40' 50" West, 38.20 feet; thence North 00 35' 30" West, 10.0 feet; thence along the said North line last described, North 870 40' 50" West, 252.96 feet to the East line of Cherokee Lane; thence South 61' 45' 43" West, 192.91 feet more or less to the intersection of the South line of Poplar Street and the West line of Cherokee Lane; thence left having a radius of 770.0 feet, a central angle of 24' 29' , 4711, an arc length of 329.21 feet and a chord bearing South 080 19' 24" East, 325.86 feet, (2) South 200 34' 18" East, 360.71 , feet, (3) along a curve to the left having a radius of 1970 feet, a central angle of 06° 01' 42" and an arc length of 207.27 feet, ' (4) South 26° 36' 00" East, 138.05 feet, (5) South 250 44' 07" East, 131.90 feet, (6) South 260 36' East, 38.33 feet, (7) ' along a curve to the left having a radius of 372 feet, a central angle 28° 58' 30" length 188.12 feet, South 55° , of and an arc of (8) 34' 30" East, 157.89 feet, (9) along a curve to the right having a radius of 178 feet, a central angle of 550 07' 30" and an arc , length of 171.26 feet, (10) South 000 27' 00" East, 119.60 feet; thence South 430 , 45' 12" East, 36.35 feet to the North line of Lockeford Street; thence along the North line of Lockeford Street, South 87' 00' East, 1272.54 feet to the northerly projection of the East line of Cluff Avenue; thence along the East line of Cluff Avenue and its northerly projection the following five courses: (1) South 01' 09' 46" East, 331.92 feet, (2) South 890 48' 44" West, 2.0 feet, (3) South 010 09' 46" East, 128.89 feet, (4) North 890 48' 44" East, 2.0 feet, South 01° 09' ' 46" East, 354.67 feet to the South line of Mounce Street; thence along the South line of Mounce Street, North 89' 48' 44" East, 289.19 feet to the northerly projection of the West line of Parcel "A" as delineated on that map filed in Book 7 of Parcel Maps, page 13, San Joaquin County Records; thence South 010 09' 46" East, 712.42 feet to the intersection of the southerly , projection of the West line of said Parcel "A" and the South line of Pine Street; thence along the South line of Pine Street, North 1 along the South line of Poplar Street the following three '. courses: (1) South 850 47' 10" West, 617.50 feet, (2) South 00' 36' 30" East, 10.0 feet, (3) South 85* 47' 10" West, 620.30 feet to the East line of Central Avenue; thence along the East line of Central Avenue South 00' 36' 35" East, 1160.74 feet to the North line of State Highway Route No. 12; thence South 00' 37' 30" , East, 110.14 feet; thence along the South line of said Highway 12 the following five courses: (1) South 86° 29' West, 44.05 feet, (2) along a curve to the left having a radius of 3945 feet, a ,. central angle of 4° 05' 08" and an arc length of 281.30 feet to a point of reverse curvature, (3) along a curve to the right having a radius of 5892.19 feet, a central angle of 40 05' 08" and an , arc length of 420.15 feet, (4) South 89° 29' West, 592.36 feet, (5) South 740 33' 28" West, 71.79 feet to the TRUE POINT OF , BEGINNING. Containing 1,184 acres more or less. 1 11 Appendix C: List of Unreinf orced Masonry Buildings. Appendix C Lodi Redevelopment Project Redevelopment Plan Adoption LIST OF UNREINFORCED MASONRY BUILDINGS IN DOWNTOWN LODI April 2002 Prepared by John B. Dykstra & Associates for the City of Lodi INTRODUCTION This list of unreinforced masonry buildings was prepared for incorporation in the Report to Council on the proposed Lodi Redevelopment Redevelopment Project. The list covers only unreinforced masonry buildings of brick construction. A total of 66 unreinforced masonry buildings have been identified. METHODOLOGY The list was prepared in two stages. The first stage consisted of a review of historic maps of downtown Lodi prepared and maintained for insurance purposes by the Sanborn Map Company during the period 1926 to 1960. These maps described the type of construction (brick, reinforced concrete, or wood frame, for example) of every building in the area. In addition, in many cases the use of the building was also described. The second stage consisted of a field reconnaissance survey to verify the continued existence of the buildings. LOCATIONS OF UNREINFORCED MASONRY BUILDINGS The approximate location of buildings identified as being of unreinforced masonry construction are shown in the map presented as Figure C-1, Location ofUnreinforced Masonry Buildings, Downtown Lodi. LIST OF UNREINFORCED MASONRY BUILDINGS The list of unreinforced masonry buildings is presented in the pages following the map. Lodi Redevelopment Project LIST OF UNREINFORCED MASONRY BUILDINGS IN DOWNTOWN LODI' April 2002 Block Bounded by Lockeford, Sacramento, Locust, and School Streets (1 Building) 217 N. Sacramento Street Block Bounded by Lockeford, Main, Locust, and Sacramento Streets (5 Buildings) 200-202 N. Sacramento Street 206-208 N. Sacramento Street 210 N. Sacramento Street 25-27 E. Locust Street (2 buildings) Block Bounded by Locust, Sacramento, Elm, and School Streets (7 Buildings) 101-107 N. Sacramento Street 5-7 W. Elm Street 21-25 W. Elm Street 27-31 W. Elm Street and 100-106 School Street (corner building) 106A-114 N. School Street 116 N. School Street 118-120 N. School Street Block Bounded by Locust, Main, Elm, and Sacramento Streets (5 Buildings) 110 N. Sacramento Street 114 N. Sacramento Street 116 N. Sacramento Street 118 N. Sacramento Street 124-126 N. Sacramento Street 1 Building count approximate due to unified facades and other building modifications made over time. Addresses are those as shown on the Sanborn Maps and may or may not coincide with current addresses. Page i of 3 . ......... . LOCUST ST. - -- - - �� _..__..._ _ ' H ' a U) LOCUST ST. N ' Q�.. r J - N�j .. ......... ..... f -1 0 j �FO- II, 2 J - -V —,V a - i to —A --_.. ........ 1►r _ . _.......I a o ' I N V ELM ST. F- _ m CITY ELM ST. HALL _ I 16 . -.--; PINE ST. - - - +IN ' PINE ST iQ: _ - 7 : OAK ST , OW 1 � : WALNUT ST . I - ---.- Legend -- - -- r ----: �--------- _ _ i ; y APPROXIMATE LOCATION, UNREINFORCED MASONRY BUILDINGS '. TOTAL NUMBER OF r.. - -- -...; ---___ ___-, 1 • ! BUILDINGS IN BLOCK - `- -- -—: -- ' - FEET _ LODI AVE. --- - ---- -----: �.. SOURCE: Historic maps, Sanborn Map Company, 1926-1960 Locations verified in field. April 2002, John B. Dykstra 8 Associates CITY OF LODI REDEVELOPMENT PLAN ADOPTION ' FIGURE C-1: LOCATION OF UNREINFORCED MASONRY BUILDINGS, DOWNTOWN LODI I 1 Block Bounded by Elm, School, Pine, and Church Streets (7 Buildings) I 106 W. Elm Street , 7 N. School Street 9 N. School Street 11-13 N. School Street 21-23 N. School Street , 25 N. School Street ' 107-111 W. Pine Street (partially reinforced with concrete bond beam) ' Block Bounded by Elm, Sacramento, Pine and School Streets (16 Buildings) I 1 N. Sacramento Street 5-7 N. Sacramento Street , 9-11 N. Sacramento Street 15 N. Sacramento Street 19-25 N. Sacramento Street , 27-43 N. Sacramento Street (estimated 3 buildings, unified facades) ' 45 N. Sacramento Street 47 N. Sacramento Street ' 15-17 W. Pine Street 19-21 W. Pine Street (front) ' 19-21 W. Pine Street (rear) 23-25 W. Pine Street and 2-4 N. School Street (corner building) 6-12 N. School Street , 20-22 N. School Street Block Bounded by Pine Street, Church Street, Oak Street, and Pleasant Avenue , (1 Building) 212 W. Pine Street (partially reinforced with concrete bond beam) Block Bounded by Pine, Sacramento, Oak, and School Streets (13 Buildings) ' 14-20 W. Pine Street 2-12 W. Pine Street and 1 S. Sacramento Street (corner building) 7-9 S. Sacramento Street 11-17 S. Sacramento Street 23 S. Sacramento Street 27-31 S. Sacramento Street ' 41- 43 S. Sacramento Street 15 W. Oak Street ' 17-21 W. Oak Street Page 2 of 3 1 i 22-28 S. School Street 16-20 S. School Street 14-14A S. School Street 2-6 S. School Street Block Bounded by Pine, Main, Walnut, and Sacramento Streets (1 Building) 31-33 E. Oak Street Block Bounded by Pine, Stockton, Oak, and Main Streets (5 Buildings) 112 E. Pine Street (rear, on alley) 32 S. Main Street 18-20 S. Main Street 10-14 S. Main Street 6-8 S. Main Street Block Bounded by Oak, School, Walnut, and Church Streets (2 Buildings) 110 W. Oak Street 104-108 W. Oak Street and 101-107 S. School Street (corner building) Block Bounded by Oak, Sacramento, Walnut, and Church Streets (1 Building) 105 S. Sacramento Street Block Bounded by Walnut Street, School Street, Lodi Avenue, and Church Street (1 Building) 201 S. School Street Block Bounded by Walnut Street, Sacramento Street, Lodi Avenue, and School Street, (1 Building) 221 S. Sacramento Street Page 3 of 3 Appendix D: Building Conditions by Survey Areas and Subareas. Appendix D Lodi Redevelopment Project Redevelopment Plan Adoption BUILDING CONDITIONS RATINGS BY SURVEY AREAS AND SUBAREAS January 2002 Prepared by John B. Dykstra & Associates for Seifel Consultants Inc. and the City of Lodi INTRODUCTION The Building Conditions Survey A comprehensive Building Conditions Survey was conducted to evaluate the general condition of buildings in the proposed Redevelopment Project.' During this survey a total of 3,382 buildings were rated on a scale of 1 (worst condition) to 5 (best condition). This appendix provides detailed information on the distribution of building conditions ratings throughout the proposed Project Area. The tables and maps presented in this appendix summarize conditions in effect at the time of the Building Conditions Survey which was conducted in March and April 2000 and updated in September 2001. Standards The general standards and criteria used in assessing the physical condition of buildings are summarized in Table D-1, Building Conditions Assessment, presented on the following page. DEFINITION OF SURVEY AREAS AND SUBAREAS A total of eight survey areas have been defined to facilitate the assembly and analysis of data and the presentation of the results of Building Conditions Survey. In defining the areas, consideration was given to land uses, age and quality of development, and the presence of logical boundaries (such as streets). In turn, to provide even greater detail on the distribution of blighting conditions in the proposed Project Area, these survey areas were then divided into a total of 51 subareas. The boundaries of the survey areas are shown on Figure D-1, Building Conditions Survey Areas RESULTS OF THE BUILDING CONDITIONS SURVEY The results of the Building Conditions Survey are summarized in Figure D-2, Average Building Conditions Ratings by Survey Areas. In addition, more detail is provided for each of the eight survey areas as follows: ■ A map showing the boundaries of each survey area and the subareas that make up the survey area. ■ A table showing average building conditions ratings for the survey area and the subareas that make up the survey area. 1 For more detail on the Building Conditions Survey, reference should be made to Section II of the Preliminary Report. Page D-1 Table D-1 Building Conditions Assessment STANDARCS, USED IN ASSESSING BUILDING CONDITI6,w Specific Standard: The provisions of the California Community Redevelopment Law pertaining to blight General Standard: The relative cost of correcting building deficiencies, code compliance problems, and seismic safety problems to a degree sufficient to ensure a relatively long- term physical and economic life (i.e., 20-40 years) Burlditxg � I VA E�rivatt.. Corltiitra�llt a$etftnic Ratj'rig�I�tttlil%tl> R 1 Very extensive physical/structural Very high Very difficult, if not deficiencies (often dilapidated)' impossible 2 Extensive physical/structural High Difficult deficienciesZ 3 General good condition, some Significant Possible deficiencies present3 4 Relatively few deficiencies present4 Low to moderate Relatively easy 5 1 General excellent conditions I Minor to low I None required Copyright: John B. Dykstra & Associates 2002 [-ADVERSE PHYSICAL CONDITIONS CONSIDERED ":SIN ASSESSING BUILDING CONDITIONS Major Adverse Physical Conditions • General dilapidation (very serious deterioration of entire structure or major parts thereof) ■ Apparent abandonment (vandalized or boarded up buildings) ■ Structural failure (cracking or subsided foundations. sagging walls or roofs, etc.) ■ Structural weakness (buildings without adequate foundations, substandard construction, unreinforced masonry walls, etc.) Other Adverse Physical Conditions ■ Potential seismic weakness ■ Deferred maintenance and neglect ■ Broken windows ■ Peeling or faded paint ■ Sagging porches ■ Dry rot in walls, window frames, door frames, doors, roof rafters, and trim ■ Deteriorated, damaged, poorly repaired, or excessive layers of roofing materials ■ Cracks or loose bricks in chimneys ■ Deteriorated, broken, or loose siding materials ■ Deteriorated or broken stucco walls ■ Rusted, deteriorated, or missing roof drainage gutters or down spouts ■ Faulty wiring or plumbing ■ Old and possibly substandard and hazardous electrical service ■ Eroded mortar or loose bricks in masonry walls ■ Informal or substandard construction .. . _-T 't . YunnE-,�-T� tL =:J l-'URNER RD.i n. � �-.A_.! x, TURNER,RD I_L� 7 1 1 �I� I 'EI]`I.L1I.bn.�1:...I-u ! -- - _, i � 1 I Full.- �F ul n� I� L7j ' I='�tL I L tm- ' E �' 7: �•. 4 1101- t J r.n I asa■os .. i L F=l L,,� t. I^'�� LOCKEFORD ST' 11j"KIiF I —_ .--- , - RP h Irs;T I 1 i . - D $7 Lbc� - ; Le�iJ( ❑! x f,2 "� -'-I �: ' �._�2N � J�IL� la b.� 11 W jI F rp e O- NI L. 1 ,. C ... -- _. II - ':: _' <� 'r IS T WI - ` {Z it W _ 1 i II lyi: i 1 '111 h i jl Fni i4u, FrV I !).[1 F Y1 L. �,ll 1 uxxc I- l [I -i i .: �w, l L suw■� '; I' I 1 1 T I `=j711 n .t 1 J'il WALNUT r..._� ^_iIL �--- s � T 7:_UPRR u"�.+}■�►• _ 8 i! „rrr r IAC st_ `5�ir iiir;�'+it- r �- $ 1 ilr �F•- I ,i : $ i t_Z�I"L•...1 I I� �� _.---- 3 ix ..-. ... "It- �. i.Lr �l -- � _=1l -__I ___� I�W _ r 1 .�r----F{F F: .i ' NALE RD. t W - INWS7AIAL Wy 00 10 LA pp U VINE sT ..... .. F. c ... I -- {'.�"Y .. Al 3 I Legend F tT� iE I�i�lY�f� °� ty PLAR ■ PROJECT BOUNDARY 1 `� -f k -III - _ V In --�•..... 11 4 "_._-'' I ffLN[4rc Wi SURVEY AREA BOUNDARY �' -� II - ! - W OSURVEY AREA NUMBERI. N-KETTLEMAN LN - = ......... LN: I % KETTL _1 7- '--. FEET = 1, i F i I i �'{ tNilflr '` -d-- SOURCE: John B. Dykstra & Associates CITY OF LODI REDEVELOPMENT PLAN ADOPTION FIGURE D-1: BUILDING CONDITIONS SURVEY AREAS 4UfINER R6? LL.rll '4URN 0 R - . I � TURNF32,RD • � J _ .... __� t._.s -- . --1 tit > ��, - - - \� .I 4—'III �R�� � .. U _17, am q _ ORD S7 - ... -71 L R - - i Ll i I ' r , - LOCKEF`- EF—T. zuro Lbcue_ I F1 i' t UPR. - jfj R f#'>r §4 --�--n II 0111 f ' rt 171��t- _t-ftL'I-ji;�lL�FINE ST PI -� 1NE- k=� - � Io'TArrh II Is9 F..i ! 1 F. 1 FI I l ALNVf 3TC: ��r j' j L - - - _ — '-- - d., -- r 1 L� Fmee, YlALNUT SL { �L-p- -1� ... F rhi II I llJf Ir��� Imo. '�- �lr L•. 7�_ t .7ii'7M. I—L ' LODI Ave _ R M1.d 7 1 �Fz'-'� l - • I I , I tf ' RIM •� e;1 �r I_—I����I �• r. J IFcxmt 11 i �l 7v' " 1 L I 1 1. a 3 8 G 4 yl III LiN L� 71 �' a ZOI �J.T}a HALE RO. I WOUSTRULL Yn'..., .. TOKAY 57. _ �j N r I C. L NI YIfL.SSIL (� I 21'. I N 1 - 21 c. VI3 �r11� 'r I r ._. --- I I , '� - - .r YNiE .ST. NE ST' I I J t .'r �. . VINE Sl. r { 2 � 1 EST -,j - ... ..,'..._;. ,...,Fri I S Legend "-`-L'I-1 �1� �[�7hu� �•� PROJECT BOUNDARY xrijk� �- 1Il tri C� SURVEY AREA BOUNDARYL+-I Ep O SURVEY AREA NUMBER * ® Z I - J CONDITIONSRATING7 _ U N : L KETTLEMAN JEM-LEMAN; LN, • � I I - - __� _ �rr _- 1 a Iaoo t FEET J -- 4444- SOURCE: John B. Dykstra & Associates CITY OF LODI REDEVELOPMENT PLAN ADOPTION FIGURE D-2: AVERAGE BUILDING CONDITIONS RATINGS BY SURVEY AREA n 1 0 Survey Area 1 B. Dvkslre CITY OF LODI REDEVELOPMENT PLAN ADOPTION BUILDING CONDITIONS SURVEY AREA 1, SUBAREA LOCATION MAP Lodi Redevelopment Project BUILDING CONDITION SURVEY SURVEY AREA 1 Subarea Building Conditions Ratings 1 2 3 4 5 Average Rating A 10 12 16 2 0 2.25 B 24 38 22 7 0 1.57 C 11 22 18 1 0 2.17 D 0 7 10 4 1 2.95 Totals 45 79 66 14 1 2.25 c:\myfi1es\1odi\bcsurveyarca I R.wpd rJ Survey Area 2 CITY OF LODI REDEVELOPMENT PLAN ADOPTION BUILDING CONDITIONS SURVEY AREA 2, SUBAREA LOCATION MAP Lodi Redevelopment Project BUILDING CONDITIONS SURVEY SURVEY AREA 2 Subarea Building Conditions Ratings 1 2 3 4 5 Average Rating A 41 52 19 0 1 1.83 B 27 54 21 3 0 2.00 C 53 41 17 2 0 1.72 D 23 24 10 4 0 1.92 E 30 30 10 0 0 1.71 F 21 30 6 0 0 1.74 G 40 52 29 0 0 1.91 H 50 49 14 0 0 1.68 I 24 54 20 2 0 2.00 J 35 44 13 0 0 1.76 K 10 36 9 0 0 1.98 L 18 30 8 2 0 1.90 M 6 17 23 0 0 2.37 N 16 83 64 1 0 2.30 Totals 394 596 263 14 1 1.92 c:\myfilei\lodibcsurveyarea2R.wpd t 1 1 1 1 1 1 1 1 1 Survey Area 3 LODI AVE. CITY OF LODI REDEVELOPMENT PLAN ADOPTION BUILDING CONDITIONS SURVEY AREA 3, SUBAREA LOCATION MAP Lodi Redevelopment Project BUILDING CONDITIONS SURVEY SURVEY AREA 3 Subarea Building Conditions Rating 1 2 3 4 5 Average Rating A 3 10 3 0 0 2.00 B 11 8 1 0 0 1.50 C 6 11 4 0 0 1.90 D 22 25 26 0 0 2.05 Totals 42 54 34 0 0 1.94 i n 11 1 t Survey Area 4 Legend ■ ■ ■ ■ SURVEY AREA BOUNDARY SUBAREA BOUNDARY N o Boo i au —.: —.. o. y.w. a nssoaaaas CITY OF LODI REDEVELOPMENT PLAN ADOPTION BUILDING CONDITIONS SURVEY AREA 4, SUBAREA LOCATION MAP I Lodi Redevelopment Project I BUILDING CONDITIONS SURVEY SURVEY AREA 4 Subarea Building Conditions Ratings 1 2 3 4 5 Average Rating A, 3 19 11 11 2 2.78 B 31 23 26 0 2 2.01 C 13 25 21 8 1 2.40 D 5 25 29 10 1 2.67 E 15 28 14 1 0 2.02 F 22 21 17 1 0 1.95 G 4 7 5 0 0 2.06 Totals 93 148T123 31 6 2.40 c : \myl i I es\I od i\bcsurveyarea4 R. wpd i t L 11 Survey Area 5 LOCKEFORD ST. CITY OF LODI REDEVELOPMENT PLAN ADOPTION BUILDING CONDITIONS SURVEY AREA 5, SUBAREA LOCATION MAP Lodi Redevelopment Project BUILDING CONDITIONS SURVEY SURVEY AREA 5 Subarea Building Conditions Ratings 1 2 3 4 5 Average Rating A 7 16 0 0 0 1.70 B 34 25 8 3 0 1.71 C 40 72 11 0 0 1.76 D 38 46 16 2 0 1.82 E 37 62 12 1 0 1.79 F 1 4 4 0 4 3.15 G 19 34 14 3 0 2.01 H 32 58 21 1 2 2 2.27 I 39 51 5 0 0 1.64 J 20 50 17 1 0 1.99 Totals 267 421 107 12 6 1.98 c:'unyfi les\lodi\bcsurveyarea5R. wpd t 11 Survey Area 6 i I TURNER RD. y + I Z 10 - LOUIE LOUIE AVE � Q 3 0. LAWRENCE SCHOOL I PIONEER DR. WI O STADIUM W N SOFTBALL J cc I COMPLEX W W I (A O � I W I ZUPO U FIELD FESTIVAL IGROUNDS I L LOCKEFORD ST. Legend ■ ■ ■ SURVEY AREA BOUNDARY SUBAREA BOUNDARY N of D Soo N I N SOURCE: John B. Dykstra & Associates CITY OF LODI REDEVELOPMENT PLAN ADOPTION BUILDING CONDITIONS SURVEY AREA 6, SUBAREA LOCATION MAP Lodi Redevelopment Project BUILDING CONDITIONS SURVEY SURVEY AREA 6 Subarea Building Conditions Ratings 1 2 3 4 5 Average Rating A 20 41 21 1 1 2.05 B 25 36 7 0 1 1.78 C 4 6 5 1 0 2.19 D 7 8 8 0 0 2.04 Totals 56 91 41 2 1 2.02 c:\myfi l es\lodi\bcsurveyarea6R.wpd i i 'I Survey Area 7 Lodi Redevelopment Project BUILDING CONDITIONS SURVEY SURVEY AREA 7 Subarea Building Conditions Ratings 1 2 3 4 5 Average Rating A 3 21 18 2 0 2.43 B 18 30 9 3 0 1.95 C 19 48 24 3 2 2.18 D 13 34 18 8 0 2.29 D+ 13 19 8 15 1 2.73 Totals 66 152 77 31 2 2.32 c:\myt7iles\lodi\bcsurveyarea7.wpd i WATSON ST. O J W BLAKELYLL PARK fL Q c� POPLAR ST. NYJ a z O J � a O F¢F M- Z w N () wo KETTLEMAN LN. Legend SURVEY AREA BOUNDARY SUBAREA BOUNDARY N 0 0 1300 ryl I I N au—c. JD1111 D. VY..— 6 II 4m.a1B5 CITY OF LODI REDEVELOPMENT PLAN ADOPTION BUILDING CONDITIONS SURVEY AREA 7, SUBAREA LOCATION MAP Survey Area 8 Lodi Redevelopment Project BUILDING CONDITIONS SURVEY SURVEY AREA 8 Subarea Building Conditions Ratings 1 2 3 4 5 Average Rating A 6 19 8 1 0 2.12 B 1 10 4 0 1 1.75 C 4 8 2 1 1 2.19 Totals 11 37 14 2 2 2.02 c:\myfiles\lodi\bcsurveyuarea8R.wpd i Z LODI AVE. J J Q :MCA OH = 2lA C) I r Legend SURVEY AREA BOUNDARY SUBAREA BOUNDARY I N 0 0 800 N i i N SOURCE: John B. Wkslra & Associates CITY OF LODI REDEVELOPMENT PLAN ADOPTION BUILDING CONDITIONS SURVEY AREA 8, SUBAREA LOCATION MAP Appendix E: List of Code Compliance Problems Table E -I List of Code Compliance Problems Project Area January - April 2002 This summary identifies Community Improvement Case Activity enforcement actions by the following categories: (1) dangerous buildings, (2) housing deficiencies, (3) nuisances, (4) zoning violations, and (5) miscellaneous. The locations of these enforcement actions are shown on Figure II -5, Code Compliance Problems. APN TYPE DESCRIPTION 04124047 Dangerous Building Unsecured building and living in trailer. 04302606 Dangerous Building Building is deteriorated. 04303506 Dangerous Building Masonry wall is falling 04303514 Dangerous Building Vacant and unsecured 04307309 Dangerous Building Roof supports removed during remodeling 04308201 Dangerous Building Unsecured packing shed 04312404 Dangerous Building Fire damage 04523014 Dangerous Building Storing gals of paint in dwelling. 04532004 Dangerous Building Foundation fall into basement 04716118 Dangerous Building Vacant unsecured 04716122 Dangerous Building Vacant and unsecured 04729016 Dangerous Building Unlivable conditions and drug use in the garage. 04306403 Dangerous Building Vacant and unsecured 04307214 Dangerous Building Extensive modification 03308055 Housing Deficiency Electrical problems not corrected after fire. 04116508 Housing Deficiency Living without utilities. 04117002 Housing Deficiency Substandard wiring plumbing 04121017 Housing Deficiency Living without utilities and living in basement. 04122001 Housing Deficiency People living in basement, junk debris, loud music, drug activity 04123035 Housing Dt:ficiency Extreme substandard living conditions 04302605 Housing Deficiency Illegal living units 04303208 Housing Deficiency Mold 04307210 Housing Deficiency Drug, gang, prostitution activity 04307603 Housing Deficiency Substandard housing 04307609 Housing Deficiency Severe roach infestation. 04308515 Housing Deficiency Ceiling is falling down 04308701 Housing Deficiency Substandard conditions 04308715 Housing Deficiency No heat 04308809 Housing Deficiency Lead poisoning 04309011 Housing Deficiency Refrigerator not working windows can not be open no hot water 04311325 Housing Deficiency Meter panel damage 04311419 Housing Deficiency Substandard Housing 04311421 Housing Deficiency Deteriorated porch 04312210 Housing Deficiency Living in a commercial building 04314005 Housing Deficiency Vacant in foreclosure 04314015 Housing Deficiency Substandard housing 04318006 Housing Deficiency Occupancy of garage 04320113 Housing Deficiency Garage conversion 04320114 Housing Deficiency Substandard housing Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project Appendix E -1 April 2002 Table E -I (cont'd) List of Code Compliance Problems Project Area January - April 2002 APN TYPE 04320116 Housing Deficiency 04321042 Housing Deficiency 04523010 Housing Deficiency 04523026 Housing Deficiency 04524013 Housing Deficiency 04706011 Housing Deficiency 04708001 Housing Deficiency 04708014 Housing Deficiency 04708016 Housing Deficiency 04710027 Housing Deficiency 04713020 Housing Deficiency 04714047 Housing Deficiency 04714051 Housing Deficiency 04716319 Housing Deficiency 04719114 Housing Deficiency 04719232 Housing Deficiency 04719235 Housing Deficiency 04719314 Housing Deficiency 04719320 Housing Deficiency 04719330 Housing Deficiency 04719408 Housing Deficiency 04719408 Housing Deficiency 04719425 Housing Deficiency 04721005 Housing Deficiency 04724017 Housing Deficiency 04727020 Housing Deficiency 04731118 Housing Deficiency 04732211 Housing Deficiency 04734112 Housing Deficiency 047341 18 Housing Deficiency 04734212 Housing Deficiency 04735106 Housing Deficiency 04735119 Housing Deficiency 04735208 Housing Deficiency 04735208 Housing Deficiency 04735218 Housing Deficiency 04735225 Housing Deficiency 04737031 Housing Deficiency 04739005 Housing Deficiency 04739008 Housing Deficiency 04745028 Housing Deficiency 04745028 Housing Deficiency 04905015 Housing Deficiency 04306701 Housing Deficiency 04306710 Housing Deficiency DESCRIPTION Unsanitary condition No elect. Gas stove leak Living in basement Substandard housing Over occupancy maybe living in basement enclosing carport Substandard housing Meter tampering Deteriroated electrical renovation in progress Structures are illegally used sperate dwelling units Extremely unsanitary inside & out. Living in garage Living in garage area Substandard Housing Substandard housing Inhabitable condition Living in garage substandard housing. No heat substandard conditions Living in garage Ceiling is leaking in bathroom, kitchen, and living room. No utilities Over occupancy Substandard housing No Heat Living in trailer, stealing power Living in business and operating business without lie. Water heater violation Substandard housing Substandard housing Mold, termites, electrical outlets not working Substandard housing Trailer w/hook ups a lot of foot traffic all night long. Covered garage and basement into living quarters. Living without utilities. Living w/o utilities. Unsafe waterheater Substandard housing Living in garage Ceiling is leaking. Living without utilities since Nov. 20, 2000 Electrical problems Junk, debris, sewer backs up into clean outs. Pool is green Living in garage and trailers substandard conditions Substandard housing Foundation deteriorated Ci F- L i 0 CSI Lodi Redevelopment Agency Report on the Plan , Lodi Redevelopment Project Appendix E -2 April 2002 Table E -I (cont'd) List of Code Compliance Problems Project Area January - April 2002 APN TYPE DESCRIPTION 04312308 Housing Deficiency Substandard living conditions 04320101 Housing Deficiency Deteriorated Building 04320118 Housing Deficiency Living in basement 04320217 Housing Deficiency Plumbing problem 04529028 Housing Deficiency Substandard electric 04531013 Housing Deficiency Tampered meter 04719235 Housing Deficiency Living in garage, substandard housing 04722018 Housing Deficiency SFD Converted into a duplex 04730032 Housing Deficiency Sub electrical Sub plumbing 04732115 Housing Deficiency Deteriorated housing 04733010 Housing Deficiency Kitchen fire 04734109 Housing Deficiency Dilapidated house 04734129 Housing Deficiency Substandard housing 04734140 Housing Deficiency Substandard housing 04734212 Housing Deficiency Extremely substandard condition outside 04734223 Housing Deficiency Substandard housing 04735121 Housing Deficiency Possible illegal additions 04735409 Housing Deficiency No smoke detector, broken window 04739008 Housing Deficiency Over occupancy 4 adults 5 Children. 04743030 Housing Deficiency Electrical outlets smell 04745028 Housing Deficiency Substandard housing 04721022 Housing Deficiency Living in shed 04311406 Housing Deficiency Refrigerator not working 04719112 Housing Deficiency Raw sewage front of garage 04743047 Housing Deficiency Heater/air does not work 04311109 Nuisance Inop vehicle 04730020 Nuisance Inop vehicle 04320129 Nuisance Maggots emanating from dumpster 04716116 Nuisance Extremely unsanitary piles of garbage. 04727024 Nuisance Raw food, garbage, junk. 04733034 Nuisance Junk and debris inoperable vehicle 04524019 Nuisance Extremely raunchy property fire and health hazard 03730019 Nuisance Operating auto repair business. 04118017 Nuisance Tall dry weeds 04127456 Nuisance Tall weeds, mound of dirt, inop-vehicles 04304205 Nuisance Severe rat infestation. 04306714 Nuisance Junk, tires in alleyway. 04311301 Nuisance Refrigerator in view 04311325 Nuisance Dumping discarded items onto church parking lot. 04312315 Nuisance Junk and debris 04312424 Nuisance Dumping in alleyway behind this address of tires, junk, & debris 04314002 Nuisance Inop vehicles junk 04314017 Nuisance Stove and Carpet in alleyway 04315008 Nuisance Accum. junk & debris, inoperable vehicle 04319001 Nuisance junk and debris Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project Appendix E -3 April 2002 Lodi Redevelopment Agency Report on the Plan , Lodi Redevelopment Project Appendix E -4 April 2002 Table E -I (cont'd) List of Code Compliance Problems , Project Area January - April 2002 ' APN TYPE DESCRIPTION 04502011 Nuisance Barking dog, dog feces. 04705016 Nuisance Inop-vehicle ' 04706019 Nuisance Two inoperable vehicles 04711004 04712036 Nuisance Nuisance Inpp vehicle Inop vehicle , 04713020 Nuisance Inop-vehicle 04713025 Nuisance inop-vehicle 04714009 Nuisance Inop vehicle ' 04714011 Nuisance Inop vehicle 04714012 Nuisance Inop vehicle 04714014 Nuisance Inop vehicle ' 04714026 Nuisance Inop-vehicle 04714031 Nuisance inop vehicle 04714037 Nuisance Inop vehicle 04714046 Nuisance Inoperable vehicles , 04714046 Nuisance Inop vehicle 04715001 Nuisance Inop vehicle 04715002 Nuisance Inop vehicle , 04715003 Nuisance Inop vehicle 04715004 Nuisance Inop vehicle 04715007 Nuisance Inop-vehicle ' 04715014 Nuisance Inop vehicle 04716109 04716112 Nuisance Nuisance Inop-vehicle Inop-vehicle , 04716117 Nuisance Inop-vehicle 04716125 Nuisance Inop vehicle 04716127 Nuisance Inop vehicle 04716205 Nuisance inop vehicle 04716207 Nuisance Inop vehicle 04716209 Nuisance Inop vehicle , 04716214 Nuisance Inop vehicle 04716311 Nuisance Inop vehicle 04716312 Nuisance Inop vehicle 04722003 Nuisance Inop vehicle ' 04722023 Nuisance Inop vehicle 04725007 Nuisance Inop-vehicle 04726006 Nuisance Inop vehicle ' 04726006 Nuisance Inoperable vehicle 04726006 Nuisance Inop vehicle 04726009 Nuisance Inop vehicle , 04726009 Nuisance Inop-vehicle 04726011 Nuisance Inop vehicle 04726011 Nuisance Inop-vehicle 04726014 Nuisance Inop vehicle 04726016 Nuisance Inop vehicle Lodi Redevelopment Agency Report on the Plan , Lodi Redevelopment Project Appendix E -4 April 2002 Table E -I (cont'd) List of Code Compliance Problems Project Area January - April 2002 APN TYPE DESCRIPTION 04726033 Nuisance Inop vehicle 04727011 Nuisance Inop-vehicle 04727020 Nuisance Inop-vehicle 04727028 Nuisance Inop-vehicle 04729009 Nuisance Inop vehicle 04729011 Nuisance Inop-vehicle 04729014 Nuisance Inop-vehicle 04729022 Nuisance Inop vehicle 04730003 Nuisance Inop vehicle 04730012 Nuisance Inop vehicle 04730033 Nuisance Inop vehicle 04731108 Nuisance Inop-vehicle 04731116 Nuisance Inop vehicle 04731125 Nuisance Inop vehicle 04731203 Nuisance Inop vehicle 04731204 Nuisance Inop-vehicle 04731208 Nuisance Inop-vehicle 04731212 Nuisance Inop-vehicle 04731225 Nuisance Inop-vehicle 04731403 Nuisance Tall weeds 04732101 Nuisance Inop-vehicle 04732103 Nuisance Inop vehicle 04732123 Nuisance Inop-vehicle 04732203 Nuisance Inop-vehicle 04732208 Nuisance lnop-vehicle 04732216 Nuisance inop-vehicle 04737003 Nuisance Inop-vehicle 04739009 Nuisance Inop-vehicle 04739013 Nuisance Inop vehicle 04743019 Nuisance Tall weeds 04713010 Nusiance Junk, lawn maintenance 04123018 Zoning Auto repair business cars outside the business. 04307122 Zoning Living in trailer 04307122 Zoning Living or sleeping in RV 04307213 Zoning Abandoned truck bed being occupied. 04321063 Zoning Employee living at business 04523006 Zoning Living in vacant unsecured dwelling 04702036 Zoning illegal occupancy of garage, repair shop in residential zone 04742007 Zoning Outdoor tire storage 04123003 Zoning Inoperable vehicle 04123004 Zoning Inoperable vehicle 04306605 Zoning Water intrusion & mold in SFR & AptA 04307122 Zoning Living in RV 04722003 Zoning Living in RV 04314001 Zoning Auto repair business in residential area. Lodi Redevelopment Agency Report on the Plan ' Lodi Redevelopment Project Appendix E -5 April 2002 Source: Lodi Community Development Department I Lodi Redevelopment Agency Report on the Plan ' Lodi Redevelopment Project Appendix E -6 April 2002 Table E-1(cont'd) List of Code Compliance Problems , Project Area January - April 2002 ' APN TYPE DESCRIPTION 04731403 Zoning Living in an RV 04311408 Zoning Roosters ' 04705013 Zoning 5 temp tents non-compliance under Use Permit 04712027 Zoning Screen over 12 ft. 04719111 Zoning Parking on lawn ' 04730052 Zoning Vehicles parked in lawn 04733037 Zoning Auto repair business in residential area 04744022 Zoning Auto repair in residential ' 04533004 Misc Workwithout permits 04702014 Misc Working without permits. 04715005 Misc Illegal addition to garage area , 04722021 Misc Illegal addition 04905036 Misc Pouring oil into storage drain 04705008 Misc Work without a permit 04729001 Misc Carport without permits ' 04729008 Misc Addition without permits 04321042 Misc. Oil and anti -freeze seeping through the base of the building. 04714009 Misc. illegal addition of carport , 04716123 Misc. Illegal additon of a porch covering and flooring. 04744051 04316001 Misc. Misc. Without permits Electric wiring to 43 shed with 3 pad locks on shed. , 04320101 Misc. Fence encroaching onto sidewalk 04730028 Misc. Goats, refuse cans, hanging clothes, inop-vehicle. 04709003 Misc_ Work w/o permits. , Source: Lodi Community Development Department I Lodi Redevelopment Agency Report on the Plan ' Lodi Redevelopment Project Appendix E -6 April 2002 Appendix F: Photographic Documentation of Existing Conditions Appendix F Lodi Redevelopment Project PHOTOGRAPHIC DOCUMENTATION April 2002 Prepared by John B. Dykstra & Associates for Seifel Consultants Inc. and the Lodi Redevelopment Agency INTRODUCTION This appendix provides photographs and photo captions that illustrate and describe existing conditions within the boundaries of the proposed Lodi Redevelopment Project.' It is an important part of the Report to Council. The photographs were taken in January 2002 and are representative of conditions in effect at that time. CONDITIONS ILLUSTRATED IN THE PHOTOGRAPHS The photographs presented in this appendix illustrate a wide variety of conditions present in the area. Although many of the photographs document adverse conditions that may be used to support a finding that the area is blighted and in need ofredevelopment, other photographs illustrate conditions (such as historically interesting buildings or residences in need of attention) that could benefit from the use of redevelopment resources (seismic retrofitting and rehabilitation loans and grants, for example). Conditions illustrated in photographs include, but are not limited to: 1. Historically and Architecturally Interesting Commercial Buildings. Nearly all of these buildings, many ofwhich are worthy of enhancement and preservation, are located in Lodi's downtown core. Many are of brick, unreinforced masonry construction. Some have been sensitively restored or rehabilitated. However, many others are badly deteriorated or dilapidated. Deficiencies shown in the photographs include deteriorated walls, peeling paint, dry rot, and soft mortar and brick erosion. In some cases serious structural problems are indicated by cracked, damaged, or failing load bearing brick or concrete walls. Buildings with serious structural problems are considered to be unsafe and hazardous for human occupancy. Historically and Architecturally Interesting Residential Buildings. These include Victorian and post Victorian residences scattered throughout the eastern part of the proposed Project Area. A number of these residences have been properly restored or rehabilitated. However, as the photographs clearly illustrate, many homes are badly deteriorated or dilapidated. In many cases these homes may be considered to be unsafe or unhealthy for occupancy. ' The conditions identified in the captions for the photographs are based upon an exterior field inspection. Most are representative of conditions that are obvious and are, to one degree or another, potentially hazardous, hazardous, unsafe, or unhealthy. In some cases confirmation of the actual extent of such conditions in specific buildings would necessitate an interior inspection which was generally not performed. The descriptions contained in the captions have been reviewed and approved for accuracy by the City Community Development Department. ORGANIZATION A map showing the approximate location of the photographs is presented on the following page as ' Figure F-1, Photograph Location Map. The photographs themselves are presented on pages 1 through 44. 1 t ii I n 3. Deteriorated or Dilapidated Buildings. These include both commercial and residential structures. Many show evidence of general neglect and cumulative deferred maintenance. , Some of these buildings exhibit surface deterioration that may be relatively easy to correct, with appropriate economic assistance. In other buildings deterioration is more extensive. A number are dilapidated. In general, dilapidated buildings are considered to be unsafe or ' unhealthy for human occupancy. However, interior inspections may be necessary to confirm the extent of dilapidation. ' 4. Abandoned Buildings. There are also a relatively large number of abandoned, apparently abandoned, or boarded up buildings in the area. These buildings are very likely to be unsafe ' or unhealthy for human occupancy. However, interior inspections may be necessary to confirm the extent of deterioration or dilapidation. 5. Buildings Under Rehabilitation. Some of these buildings are badly deteriorated. Other buildings need only minor attention. In a number of cases rehabilitation seems to have been going on for many years, indicating that appropriate economic assistance may be necessary ' to achieve completion. ORGANIZATION A map showing the approximate location of the photographs is presented on the following page as ' Figure F-1, Photograph Location Map. The photographs themselves are presented on pages 1 through 44. 1 t ii I n i q -TURN TvFINER:RD �quj Ye,:_,. _._-«: Gigui 1.7 --j 6 PINE STLu 5 M'IjO 0 A OAK ST LAI- LOCKEFORD ST- --- .... fj r. FO DST. ------- Ti oil iff Fal'od t1i PI 1 f', T OAK S i OA ST. IQ. sat.RE hJ :WALNUT To WALNUT ST., L :L 1 LODI A— _7 It mw x 0 W -A. y Fl TE Legend • APPROXIMATE LOCATION OF PHOTOGRAPHS L 91 !L_1110 111 E5 REDEVELOPMENT .Eq -1r - PROJECT BOUNDARY J*.q N %4 C 0 T 1400 d IL) FEET SOURCE: John B. Dykstra & Associates up.aR n 11� L 91 !L_1110 111 E5 1-d iT 4 J*.q ['Z5 IQ rl'7777 __L1 d IL) yp.R.R' p. U -ho 1," i HALE FID. T L L .7 4 Fill 16!AN F --- THURMAtt ST. I "A CITY OF LODI REDEVELOPMENT PLAN ADOPTION FIGURE F-1: PHOTOGRAPH LOCATION MAP r J*.q ['Z5 !I rl'7777 __L1 1," i HALE FID. T L L .7 4 Fill 16!AN F --- THURMAtt ST. I "A CITY OF LODI REDEVELOPMENT PLAN ADOPTION FIGURE F-1: PHOTOGRAPH LOCATION MAP Vacant, deteriorated movie theater, West Lodi Avenue Residence, surface deterioration, South Sunset Drive at West Lodi Avenue Lodi Redevelopment Project Page Deteriorated apartment complex, roof and siding deterioration, corner Ham Lane and West Lodi Avenue Badly deteriorated siding, detail, apartment complex, Ham Lane and West Lodi Avenue Lodi Redeuelopmeot Project Page 2 Aging and deteriorated building, corner West Lodi Avenue and South Orange Avenue Aging and deteriorated residence and garage, West Lodi Avenue, South California Street Lodi Redevelopment Project Page 3 Vacant, corner property, source of soils and groundwater contamination. corner South Hutchins Street and West Lodi Avenue Rear wall, unreinforced brick construction, failure of wall over door, alley block bounded by West Pine, South Sacramento, West Oak, and South School Streets Lodi Redevelopment Project Page 4 1 Loading dock, evidence of structural failure, potentially unsafe, rear, 21 South Sacramento Street Unreinforced masonry brick buildings, rear, potentially hazardous, block bounded by West Pine, South Sacramento, West Oak and South School Streets Dodi Redevelopment Project Nage' Unreinforced brick building, potentially hazardous, 15 South Sacramento Street Serious Mortar and brick erosion, sidewall, potentially hazardous, 15 South Sacramento Street 1 C i Dodi Redevelopment Project Page 6 1 Unreinforced brick building, stucco front, potentially hazardous, at 21 South Sacramento Street Serious mortar and brick erosion, potentially hazardous, sidewall, building at 21 South Sacramento Street Lodi Redevelopment Project Nage Row of architecturally and historically interesting unreinforced masonry buildings, potentially hazardous, substantially vacant, North Sacramento Street between West Elm and West Pine Streets Adult bookstore, 7 South Sacramento Street rl i i Lodi Itedevelopment Project Pagie S I Commercial vacancy, one of many, 7 West Pine Street Commercial vacancy, one of many, 35 North Sacramento Street Lodi Redevelopent Project I've 9 t �J i Commercial vacancy, one of many, 39 North Sacramento Street Commercial vacancy, one of many, 13 West Pine Street i Lodi Redevelopment Project Page 10 I Dilapidated corrugated metal garage, alley, in block bounded by West Elm, North Sacramento, West Pine, and North School Streets Dilapidated concrete block garage, unsafe (failed column), alley, block bounded by West Elm, North Sacramento, West Pine, and North School Streets I Lodi itedevelopment Project higFe II I 1: 11 Building addition, Styrofoam exterior, badly deteriorated, alley, block bounded by West Elm, North Sacramento, West Pine, and North School Streets Dilapidated residence, potentially unsafe and unhealthy, 216 North Church Street �7 i 11 Lodi Redevelopment Project Page 12 1 Building addition, Styrofoam exterior, badly deteriorated, alley, block bounded by West Elm, North Sacramento, West Pine, and North School Streets Dilapidated residence, potentially unsafe and unhealthy, 216 North Church Street i i Dodi Redevelopment Project Page 12 1 Badly deteriorated residence, 218 North Church Street Badly deteriorated commercial buildings, corner of West Lockeford and North Church Streets Lodi Redevelopment Project Page 13 Dilapidated residence, vacant, unsafe and unhealthy, 224 North Stockton Street Dilapidated metal -clad building, vacant, unsafe and unhealthy, East Elm Street at railroad track i 11 i Lodi Redevelopment Project hge H I Demolition site, debris accumulation, corner, East Elm and North Main Streets Old reinforced concrete building, deterioration, broken windows, sagging canopy, 24 North Main Street Lodi Redevelopment Project Page. 15 Railroad property, rainwater ponding, abandoned spur tracks, construction debris, west side North Main Street, between East Elm and East Pine Streets Architecturally and historically interesting Victorian with structural problems, potentially unsafe and unhealthy for occupancy, serious deterioration, appears to be under renovation, adjacent to 424 East Pine Street Dodi Redevelopment Project Palle 16 1 Underutilized commercial/industrial property, rainwater ponding, opposite 401 North Sacramento Street Tire shop, deteriorated building, 625 North Sacramento Street Lodi Redevelopment Project Page 17 Deteriorated metal building, 10 Daisy Avenue Broken windows, otherwise well-maintained industrial/service building, corner Daisy and North School Streets 1: J J r Lodi R,edeveiopment Project Page I8 I Underutilized commercial/industrial site, rainwater ponding, currently used for truck parking, corner North Sacramento Street and East Turner Road Abandoned trailers and automobiles, corner of East Turner Road and North Stockton Street Lodi Redevelopment Project Ila Ye 19 Dilapidated reinforced concrete industrial building, broken windows, potentially unsafe and unhealthy, westerly frontage of North Stockton Street, opposite Lawrence School Badly deteriorated industrial warehouse building, broken windows, non- operating vehicles, intersection of Lawrence Avenue and North Main Street i 1: Lodi Redevelopment Project Page 20 ' Deteriorated buildings, trash and debris accumulation, potentially unsafe and unhealthy, 315 North Main Street Illegal dumping, abandoned spur tracks, unhealthy, opposite 316 North Main Street Lodi Redevelopment Project Page 21 Badly deteriorated apartment building, broken windows, deteriorated siding, dry rot, ripped screens, corner North Stockton and East Locust Streets Deteriorated siding, ripped screens, detail, apartment building, North Stockton and East Locust Streets. Dodi Redevelopment Project I'agge 22 Abandoned residential garage building, dilapidated, unsafe and unhealthy, alley in block bounded by East Elm, North Stockton, East Pine, and North Main Streets Dilapidated structure, potentially unsafe and unhealthy, rear, 10 North Main Street Lodi Redevelopment Project Paige 23 Dilapidated corrugated metal commercial building, sagging roof, potentially unsafe and unhealthy, East Pine Street at alley between South Main and South Stockton Streets Large deteriorated residence, sagging porch, leaning chimney, corner East Pine and South Stockton Streets Lodi Redevelopment Project Pave 24 1 Deteriorated residence, sagging porch, broken windows, peeling paint, 15 South Stockton Street Broken windows, detail, residence, 15 South Stockton Street Lodi Wevelopment Project Paas 25 Unreinforced masonry brick building, structural failure, rear wall, unsafe, adjacent to 130 North Sacramento Street Burned out apartment, 425 East Locust Street Lodi Redevelopment Project Paige 2i► J L i i i Badly deteriorated residence, peeling paint, sagging porch, 541 East Locust Street Vacant underutilized property, boarded up building, corner North Cherokee Lane and East Elm Street Lodi Redevelopment Project Page 2; Architecturally and historically interesting Lincoln School, dilapidated, unsafe and unhealthy for occupancy, corner South Cherokee Lane and East Pine Street Small deteriorated commercial buildings, peeling paint, dry rot, corner East Walnut Street and South Cherokee Lane L Lodi Redevelopment Project Page 2s 1 6z, Al 'm 130104 luamdolaftapq !P01 anuan'r 1poZ;sn:j STS `,Cq;inaqun pun a3nsun Sllnliva)od `smopul,t ua3loaq lga.tod luo t; gul�1219s °aauaplsaj pa;n.101.la;ap SIM aunt aa3loaaq j q;noS pun ;aamS ;nuluM . ;sua .lau.1oa spa;n jopajap luol;an.gsuoa 3jalaq'2ulpllnq luta iatuwoa Anall �.r .t c, y nuc s cel q r .... ..cvY..� Dilapidated residence, sagging and broken front porch, peeling paint, dry rot, potentially unsafe and unhealthy, adjacent to 515 East Lodi Avenue Boarded up commercial building, badly deteriorated, corner East Lodi Avenue and South Garfield Street i i i i 7 Lodi Re(level opined Project Page 30 1 Boarded up commercial building, deteriorated, 505 East Lodi Avenue Dilapidated house, broken window frames, deteriorated roof, extensive dry rot, unsafe and unhealthy, opposite 236 East Lodi Avenue Lodi >Iedevelopment, Project Pilo 31 Dilapidated commercial building, evidence of structural problems (cracked walls), dry rot, peeling paint, potentially unsafe and unhealthy, 502 East Oak Street Evidence of serious structural problems, sagging walls, potentially unsafe and unhealthy, detail, rear of 502 East Oak Street t Dodi Redevelopment Project Page 32 1 Architecturally and historically interesting structure, former creamery, Art Deco design, circa 1938, deteriorated, 100 South Cherokee Lane Totally dilapidated residence, unsafe and unhealthy for occupancy, 543 East Maple Street Lodi Redevelopment Project Page 33 Dilapidated front porch, residence, potentially unsafe, 316 South Sacramento Street Badly deteriorated residence, peeling paint, dry rot, potentially unsafe and unhealthy, 316 South Sacramento Street 0 11 t i Lodi R.edevelopu nt Project Page 34 ' Large underutilized property, east side of South Sacramento Street between Chestnut and West Tokay Streets Deteriorated residential units, sagging sidewalls and sinking foundation, potentially unsafe and unhealthy, 602, 604 South Sacramento Street Lodi Redevelopment Project ��aV i, Deteriorated commercial garage building, 620 South Sacramento Street Small worker's cottage, located in industrial area, well painted, side wall deflection, 1116-1/2 South Sacramento Street i 1 LI Lodi Redevelopment Project Page 36 1 Badly deteriorated residence, peeling paint, dry rot, missing and deteriorated gutters, 9 Sierra Vista Place Badly deteriorated residences, peeling paint, dry rot, broken concrete steps, potentially unsafe and unhealthy, 802, 804 South Stockton Street Lodi Redevelopment Project Page, 37 Large underutilized property, prominent corner location, abandoned vineyard, west side of South Stockton Street at Kettleman Lane Attractive, solid residence, surface deterioration, 1001 South Central Avenue i i Lodi Redevelopment Project Pane 38 1 Deteriorated cottage and garage, 409 Concord Street Residence, deteriorated, boarded up, potentially unsafe and unhealthy, 435 Poplar Street Lodi Redevelopment Project Page 39 Deteriorated cottages, 1319-1/2, 1321-1/2 South Central Avenue Trash accumulation, 1321 South Central Avenue t Lodi Redevelopment Project I'affe 40 I Aging and deteriorated commercial buildings, substandard and congested off - street parking, 201-225 East Kettleman Lane Deteriorated cottage, recent paint over deteriorated surface, 307 Watson Street Lodi','development Project Page, M Badly deteriorated cottage, potentially unsafe and unhealthy, 219 Cherry Street Deteriorated residence, 227 Cherry Street I� Lodi Redevelopment Project Pale 42 1 Abandoned, dilapidated house, unsafe and unhealthy, 221 Maple Street Dilapidated house, potentially unsafe and unhealthy, 305 Maple Street Lodi Redevelopment Project Boarded up residence, corner South Garfield and East Tokay Streets - 1� i Lodi Redevelopment Project Pkge 44 1 Appendix G: County Fiscal Officer's Report San Joaquin County Auditor CITY OF LODI REDEVELOPMENT PROJECT SAN JOAOUIN COUNTY SCHEDULE OF AD VALOREM TAX REVENUE FROM ALL PROPERTY WITHIN THE BOUNDARIES OF EACH TAXING AGENCY BASE YEAR 2001-02 SCHEDULE IV Total 191 ,186,733 Per Health & Safety Code Section 33328 (d) H:Hmydoc\RDA_Project_1-14-02.xIs1Sch4\ems\1 /16/02 SCHEDULE IV FY2001-02 ENTITY- TOTAL FUND CUR YR NUMBER TAXING AGENCIES REVENUE 01000-01 County General 64,928,960 22104-01 Lodi Unified Schools 20,310,486 23101-01 SJCo. Delta Community College 10,938,990 24101-01 County Office of Education 3,999,590 34100-01 SJCo. Flood Control 500,467 37103-01 SJCo. Mosquito Abatement 2,239,178 41102-01 North San Joaquin Water Conservation 162,214 50502-00 City of Lodi 5,407,579 50997-00 Educ. Rev. Augment. Fd. (ERAF) 82,699,269 Total 191 ,186,733 Per Health & Safety Code Section 33328 (d) H:Hmydoc\RDA_Project_1-14-02.xIs1Sch4\ems\1 /16/02 SCHEDULE IV F1 C:Excel\Cityoflodi\RDA_Project_1-14-02.x1s\Sch3\ems\1/16/02 SCHEDULE III ' CITY OF LODI REDEVELOPMENT PROJECT SAN JOAQUIN COUNTY , SCHEDULE OF TAXING AGENCIES AND AMOUNT OF TAX REVENUE TO BE DERIVED BY EACH AGENCY WITHIN THE PROJECT AREA BASE YEAR 2001-02 ' ' SCHEDULE 111 ENTITY- FY2001-02 FUND BASE NUMBER TAXING AGENCIES REVENUE 01000-01 County General 1,147,631 , 22104-01 Lodi Unified Schools 1,464,269 23101-01 24101-01 SJCo. Delta Community College County Office of Education 205,858 73,607 ' 34100-01 SJCo. Flood Control 9,028 37103-01 SJCo. Mosquito Abatement 40,545 ' 41102-01 North San Joaquin Water Conservation 27,129 50502-00 City of Lodi 868,301 50997-00 Educ. Rev. Augment. Fd. (ERAF) 1,460,347 , I Total 5,296,715 , Per Health & Safety Code Section 33328 (b) and (c) C:Excel\Cityoflodi\RDA_Project_1-14-02.x1s\Sch3\ems\1/16/02 SCHEDULE III ' CITY OF LODI REDEVELOPMENT PROJECT SAN JOAQUIN COUNTY BASE YEAR 2001-02 (Detail for H&S Code 33328(c)) Tax Rate Area (TRA) 001-001 Total Assessed Value (AV) of Affected Parcels 512,968,964 Net AV of TRA Utility AV AV of TRA FACTOR - Total AV of Affected Parcels divided by AV of TRA ENTITY - FUND NUMBER TAXING AGENCIES 01000-01 County General 22104-01 Lodi Unified Schools 23101-01 SJCo. Delta Community College 24101-01 County Office of Education 34100-01 SJCo. Flood Control 37103-01 SJCo. Mosquito Abatement 41102-01 North San Joaquin Water Conservation 50502-00 City of Lodi 50997-00 Educ. Rev. Augment. Fd. (ERAF) Total FY2001-02 BASE REVENUE 001-001 BASE REVENUE MULTIPLIED BY FACTOR 1,957,493,127 (3,090,921) 1,954,402,206 0.26246847 ADJUSTED BASE REVENUE 001-001 512,968,964 NEW RDA TRA 001- 4,165,744.74 1,093,376.65 3,072,368.09 1,093,376.65 5,315,791.80 1,395,227.74 3,920,564.06 1,395,227.74 747,286.87 196,139.24 551 ,147.63 196,1 39.24 267,142.11 70,1 16.38 197, 025.73 70,1 16.38 32,772.50 8,601.75 24,170.75 8,601.75 147,182.58 38,630.79 108,551.79 38,630.79 98,842.76 25,943.11 72,899.65 25,943.11 3,152,053.02 827,314.53 2,324,738.49 827,314.53 5,300,960.10 1,391,334.89 3,909,625.21 1,391,334.89 19,227,776.48 5,046,685.08 14,181,091.40 5,046,685.08 c:Excel\CityotLodi\RDA,-Project_1-14-02.xls\001-001\ems\1/16/02 detail for Sch III CITY OF LODI REDEVELOPMENT PROJECT SAN JOAQUIN COUNTY BASE YEAR 2001-02 (Detail for H&S Code 33328(c)) Tax Rate Area (TRA) 001-003 Total Assessed Value (AV) of Affected Parcels 1,960,294 Net AV of TRA 1,076,762,109 Utility AV (31,723) AV of TRA 1,076,730,386 FACTOR - Total AV of Affected Parcels divided by AV of TRA 0.00182060 Total 10,901 ,435.78 19,847.17 C:Excel\RDA-_Project\RDA_Project_1-14-02.x1s\001-003\ems\1/16/02 Ir IIIc lr I■r rr rr rr r �■■ r r r Ir - 10,881,588.61 19,847.17 detail for Sch III r r llllr �■ r r FY2001-02 BASE ADJUSTED ENTITY- BASE REVENUE BASE NEW RDA FUND REVENUE MULTIPLIED REVENUE TRA NUMBER TAXING AGENCIES 001-003 BY FACTOR 001-003 001- 01000-01 County General 2,386,349.46 4,344.59 2,382,004.87 4,344.59 22104-01 Lodi Unified Schools 2,944,829.67 5,361 .36 2,939,468.31 5,361 .36 23101-01 SJCo. Delta Community College 414,528.55 754.69 413,773.86 754.69 24101-01 County Office of Education 151 ,761 .48 276.30 151 ,485.18 276.30 34100-01 SJCo. Flood Control 18,239.33 33.21 18,206.12 33.21 37103-01 SJCo. Mosquito Abatement 81 ,977.07 149.25 81,827.82 149.25 50502-00 City of Lodi 1,858,410.69 3,383.42 1,855,027.27 3,383.42 50997-00 Educ. Rev. Augment. Fd. (ERAF) 3,045,339.53 5,544.35 3,039,795.18 5,544.35 Total 10,901 ,435.78 19,847.17 C:Excel\RDA-_Project\RDA_Project_1-14-02.x1s\001-003\ems\1/16/02 Ir IIIc lr I■r rr rr rr r �■■ r r r Ir - 10,881,588.61 19,847.17 detail for Sch III r r llllr �■ r r CITY OF LODI REDEVELOPMENT PROJECT SAN JOAQUIN COUNTY BASE YEAR 2001-02 (Detail for H&S Code 33328(c)) Tax Rate Area (TRA) 001-013 Total Assessed Value (AV) of Affected Parcels 22,898,228 Net AV of TRA 22,908,340 Utility AV (3,165) AV of TRA 22,905,175 FACTOR - Total AV of Affected Parcels divided by AV of TRA 0.99969671 ENTITY - FUND NUMBER TAXING AGENCIES 01000-01 County General 22104-01 Lodi Unified Schools 23101-01 SJCo. Delta Community College 24101-01 County Office of Education 34100-01 SJCo. Flood Control 37103-01 SJCo. Mosquito Abatement 41102-01 North San Joaquin Water Conservation 50502-00 City of Lodi 50997-00 Educ. Rev. Augment. Fd. (ERAF) Total C: Excel\RDA_Project_1-14-02.xls\001-013\ems\i /16/02 FY2001-02 BASE REVENUE 001-013 BASE REVENUE MULTIPLIED BY FACTOR ADJUSTED BASE REVENUE 001-013 NEW RDA TRA 001- 49,925.38 49,910.24 15.14 49,910.24 63,699.24 63,679.92 19.32 63,679.92 8,967.25 8,964.53 2.72 8,964.53 3,215.61 3,214.63 0.98 3,214.63 393.27 393.15 0.12 393.15 1,765.11 1,764.57 0.54 1,764.57 1,186.00 1,185.64 0.36 1,185.64 37,614.72 37,603.31 11.41 37,603.31 63,487.44 63,468.18 19.26 63,468.18 230,254.02 230,184.17 69.85 230,184.17 detail for Sch III Secured SBE Total Secured Unsecured Total Assessed Value LAND 131,249,548 0 131,249,548 249,404 CITY OF LODI REDEVELOPMENT PROJECT NO.1 ASSESSED VALUE WITHIN PROJECT AREA IN SAN JOAQUIN COUNTY 2000-2001 PRECEDING YEAR SCHEDULE II NET ASSESSED VALUE 429,407,466 0 429,407,466 79,515,576 131,498.,952 298,794,884 101,100,620 6,079,085 16,392,329 508,923,042 Per Health & Safety Code Section 33328 (f) C:ExceRRDA_Project-1-14-02.x1s\Sch200-01\ems\1/16/02 SCHEDULE 11 I� �■ I� I� I� >• IIIA � IIIIII� >• II. IIIII� � _ III. � >• Ir ■� I� HOME - PERSONAL OWNERS' OTHER IMPROVEMENTS PROPERTY EXEMPTION EXEMPTIONS 284,896,947 33,660,531 6,079,085 14,320,475 0 0 0 0 284,896,947 33,660,531 6,079,085 14,320,475 13,897,937 67,440,089 0 2,071 ,854 NET ASSESSED VALUE 429,407,466 0 429,407,466 79,515,576 131,498.,952 298,794,884 101,100,620 6,079,085 16,392,329 508,923,042 Per Health & Safety Code Section 33328 (f) C:ExceRRDA_Project-1-14-02.x1s\Sch200-01\ems\1/16/02 SCHEDULE 11 I� �■ I� I� I� >• IIIA � IIIIII� >• II. IIIII� � _ III. � >• Ir ■� I� CITY OF LODI REDEVELOPMENT PROJECT NO.1 ASSESSED VALUE WITHIN PROJECT AREA IN SAN JOAQUIN COUNTY 2001-2002 BASE YEAR Per Health & Safety Code Section 33328 (a) C: Excel\C ityo(Lodi\RDA_P roject-1-14-02. xls\Sch 101-02\ems\1 /16/02 SCHEDULE I SCHEDULEI HOME- NET ADD NET PERSONAL OWNERS OTHER ASSESSED HOMEOWNER'S BASE LAND IMPROVEMENTS PROPERTY EXEMPTION EXEMPTIONS VALUE EXEMPTION TOTAL Secured 135,580,849 295,427,571 31,725,394 6,033,003 13,667,942 443,032,869 6,033,003 449,065,872 SBE 2,230,659 74,124 42,923 0 0 2,347,706 0 2,347,706 Total Secured 137,811,508 295,501,695 31,768,317 6,033,003 13,667,942 445,380,575 6,033,003 451,413,578 Unsecured 254,102 21,721,543 68,869,278 0 2,083,309 88,761 ,614 0 88,761,614 Total Assessed Value 138,065,610 317,223,238 100,637,595 6,033,003 15,751,251 534,142,189 6,033,003 540,175,192 Per Health & Safety Code Section 33328 (a) C: Excel\C ityo(Lodi\RDA_P roject-1-14-02. xls\Sch 101-02\ems\1 /16/02 SCHEDULE I CITY OF LODI REDEVELOPMENT PROJECT PER ASSESSOR'S CERTIFICATION 11/19/01 & 01-08-02 FY2001-02 SECURED UNSECURED TRA TOTAL LAND IMPROV. PER PROP I H.O. EXEMPT OTHER IXMP LAND IMPROV. PER PROP OTHER EXMP 001-001 545,812,495 129,470,136 279,931,650 31,599,241 6,012,003 13,415,764 254,102 20,898,307 66,314,601 2,083,309 001-003 1,967,294 752,868 1,175,399 32,027 7,000 0 0 0 0 0 001-013 23,416,584 5,357,845 14,320,522 94,126 14,000 252,178 0 823,236 2,554,677 0 Total 571,196,373 135,580,849 ########## 31,725,394 6,033,003 13,667,942 254,102 21,721,543 68,869,278 2,083,309 571,196.373 FY2000-01 SECURED UNSECURED TRA TOTAL LAND IMPROV. PER PROP I H.O. EXEMPT I OTHER IXMP LAND IMPROV. PER PROP OTHER EXMP 001.001 524,996,894 125,374,997 270,153,180 33,538,087 6,065,085 14,073,241 249,404 13,109,522 64,505,232 2,071,854 001-003 1,852,159 719,418 1,098,161 27,580 7,000 0 0 0 0 0 001-013 22,873,109 5,155,133 13,645,606 94,864 7,000 247,234 0 788,415 2,934,857 0 Total 549,722,162 131,249,548 ########## 33,660,531 6,079,085 14,320,475 249,404 13,897,937 67,440,089 2,071,854 549,722,162 C: ExcehC1tyofLodAR0A_ Project- 1-14-02.x1s%grossAV1EMS11116/02 Appendix H: Tax Increment Projections Appendix Table 1 Summary of Tax Increment Projections Proposed Lodi Redevelopment Project Area Summary of Assumptions Growth Assumptions 2001/02 Secured Assessed Value: $449,065,872 2001102 State Board Assessed Value: $2,347,706 2001/02 Unsecured Assessed Value: $88.761.614 2001/02 Total Assessed Value: $540,175,192 2001102 Unitary Payments: $0 Annual Inflationary Adjustment: 2% of Secured AV 59,364 Reassessed Property Assessments: I% of Secured AV Tax Revenues Remitted to Agency Development Per Absorption Analysis 59,811,054 Annual Growth in State Board Assessed Value: 0.0`H, Annual Growth in Unsecured Assessed Value: 0.0% Annual Growth in Unitary Payments: 0.0% Tax Increment Generation 98,270,644 Project Adopted between 12/2/01 and 8/20102 TI Available to Agency After Obligations Property Tax Rate: 41,134,221 Tax Increment Cap: N/A County Property Tax Admin Fee: 1.5% Pass -Through Payments and Net TI for Housing are calculated based on Incremental Tax Revenues. 2,898,984 Sponsoring Community 58,124,848 City receives pass-through TI Available for Non -Housing Projects Agency Administration Cost 26.090.860 Cost in FY 2002/03: $0 Percent of TI to Agency net of Housing and Pass-Throughs: 10.0% Present Value Discount Rate 1 38,235,237 Present value discounted to 2001/02 at: 5.5% Tax Increment Projections From 2002/03 Throe h End of Project Constant Nominal Dollars 2001/02 Dollars County Distribution of Basic Incremental Taxes Incremental Tax Revenues $290,624,240 $60,721,882 Less: County Property Tax Admin Fee34, 59,364 910.828 Tax Revenues Remitted to Agency 286,264,876 59,811,054 TI Available to Agency After Obligations Tax Revenues Remitted to Agency 286,264,876 59,811,054 Less: Pass-Throughs to Taxing Entities 98,270,644 18,676,833 TI Available to Agency After Obligations 187,994,233 41,134,221 Projected Use of TI Funds Agency Administration (Non-Hsg) 12,986,938 2,898,984 TI Available for Housing Programs 58,124,848 12,144,376 TI Available for Non -Housing Projects 116,882,446 26.090.860 Total TI Funds Used by Agency 187,994,233 41,134,221 Subtotal, TI for Housing & Projects 1 175,007,294 1 38,235,237 Cumulative TI for Housing Programs 2011/ 12 1,868,384 1,277,327 2021/ 22 8,548,893 4,114,577 2031/32 21,877,931 7,471,442 2046/47 58,124,848 12,144,376 Cumulative TI for Non -Housing Projects 2011/ 12 4,918,522 3,362,563 2021/22 20,650,259 10,095,888 2031/32 48,895,455 17,229,963 2046/47 116,882,446 26,090,860 Seifel Consulting Inc. T_Tl_Lodi 1_10_02.xls:Summ 4/30102 Appendix Table lA Tax Increment Projections Proposed Lodi Redevelopment Project Area (In Future Value or Nominal Dollars) County Distribution of Basic Incremental Taxes A enc Obligations Net Tax Increment (1) 1 (3) (4) (5) (7) Available for Incremental County Net Taxes Pass- Agency Housing Programs year Fiscal Tax Admin Remitted Through Admin (8) (9) (N) Year Revenues* Fee to Agency Payments Expenses Annual I Cumulat 0 2001102 1 11 1 11 I 2002103 0 0 C C 0 0 C 2 2003/04 321,123 4,817 316,306 64,225 18,786 64,225 64,225 3 2004/05 465,476 6,982 453,494 93,095 27,230 93,095 157,32C 4 2005/06 • 627,666 9,415 618,251 125,533, 36,718' 125,533 282,85 5 2006/07 794,857 11,923 782,9341 158,971 46,499 158,971 441,824 6 2007108 1,005,402 15,081 990,32I 201,080 58,816 201,080 642,905 7 2008/ 09 1,213,9451,418,391 8209 1,195,735' 242,789 71,016 242,789 885,694 8 20091 10 1,418,391 21,2761 1,397,115 283,678 82,976 283,678 1,169,372 9 2010111 1,641,918 24,629' 1,617,289 328,384 96,052 328,384 1,497,755 10 2011/ 12 1,853,145 27,797 1,325,3481: 370,629 108,409' 370,629 1,868,381 11 2012/ 13 2,115,256 31,729 2,083,527 423,051 123,742. 423,051 2,291,436 12 2013/ 14 2,386,513 35,798 2,350,720 522,063 135,135 477,304 2,768,739 13 2014115 2,608,965 39,134 2,569,831 613,020; 143,502; 521,793 3,290,532 1 14 20151 16 2,862,441 42,937 2,819,505 702,016 154,500' 572,488 3,863,OZI 15 2016117 3,145,315 47,180 3,098,136 801,940 166,7131 629,063 4,492,084 16 2017/ 18 3,438,123 51,572 3,386,551 908,892 179,003' 687,625 5,179,708 17 2018119 3,716,834 55,753 3,661,082 1,014,794 190,292; 743,367 5,923,075 IS 2019120 4,048.21C 60,723 3,987,487 1,128,895 204,895 809,642 6,732,717 19 2020/21 4,390,748 65,861 4,324,887 1,254,031 219,271 878,150 7,610,867 20 2021/22 4,690,129 70,352 4,619,777 1,372,586 230,917 938,026 8,548,893 21 20221 23 5,000,599 75,009 4,925,590 1,486,149 243,932 1,000,120 9,549,013 22 2023/ 24 5,336,357 80,045 5,256,312 1,606,489 258,255 1,067,271 10,616,284 23 20241 25 5,683,420 85,251 5,598,168 1,733,373 272,811 1,136,684 11,752,96E 24 2025126 6,045,511 90,683 5,954,828 1,865,247 288,048 1,209,102 12,962,07C Z5 2026/ 27 6,468,330 97,025 6,371,305 2,011,831 306,581 1,293,666 14,255,736 26 2027/ 28 6,869,479 103,042 6,766,436 2,164,335 322,821 1,373,896 15,629,632 27 2028129 7,224,813 108,372 7,116,441 2,304,240 336,724 1,444,963 17,074,594 28 2029130 7,592,458 113,887 7,478,572 2,438,842 352,124 1,518,492 18,593,086 Z9 2030131 8,006,967 120,105 7,886,863 2,584,730 370,074 1,601,393 20,194,48C 30 2031132 8,417,258 126,259 8,290,999 2,737,685 386,986 1,683,452 21,877,931 31 2032/ 33 ii 8,841,268 132,619 8,708,649 2,892,834 404,756 1,768,254 23,646,185 32 2033/34 9,279,102 139,187 9,139,916 3,101,469 418,263 1,855,820 25,502,005 33 2034/35 9,691,423 145,371 9,546,051 3,308,948 429,882 1,938,285 27,440,29C 34 2035/36 10,116,885 151,753 9,965,132 3,511,990 442,976 2,023,377 29,463,667 35 2036/37 10,555,112 158,327 10,396,785 3,721,124 456,464 2,111,022 31,574,689 36 2037138 11,006,485 165,097 10,841,387 3,936,532 470,356 2,201,297 33,775,986 37 2038139 11,471,399 172,071 11,299,328 4,158,402 484,665 2,294,280 36,070,266 38 2039/40 11,950,261 179,254 11,771,007 4,386,928 499,403 2,390,052 38,460,318 39 2040141 12,443,488 186,652 12,256,836 4,622,31C 514,583 2,488,698 40,949,016 40 204t/ 42 12,951,513 194,273 12,757,240 4,864,753 530,218 2,590,303 43,539,318 41 2042/43 13,474,778 202,122 13,272,656 5,114,470 546,323 2,694,956 46,234,274 42 2043/44 14,013,741 210,206 13,803,535'', 5,371,678 562,911 2,802,748 49,037,022 43 2044/45 14,568,873 218,533 14,350,340 5,636,602 579,996 2,913,775 51,950,797 44 2045/ 46 15,140,659 227,110 14,913,549 5,909,474' 597,594 3,028,132 54,978,928 45 2046/47 15,729,598 235.944 15,493,65411 6.190,533 1 615,720 3,145,920 58 124 848 OTAL 290,624,240 4,359,364 286,264,876 98,270,6441 12,986,938 58,124,848 umulative To: 2011/ 12 9,341,922 140,129 9,201,794 1,868,384 546,502 1,868,384�tlr To: 2021122 42,744,464 641,167 42,103,297 10,609,672 2?94,473 8,548,893 To: 2031/ 32 109,389,656 1,640,845 107,748,811 31,542,596 5,432,828 21,877,93115 +s To: 2046147 290 624,240 4,359 364 286,264 876 98 270,644 12,986,93811 58 124,848 a r. Based on revenues from Basic Tax Increment (1.0%), exclusive of bond overrides. Assumptions: County Admin Fee as a % of Incremental Tax Revenues: 1.5% Pass -Through Payments and Net TI for Housing are calculated based on Incremental Tax Revenues Agency Admin as a % of Tl net of Housing & Pass -Through s: 10% Tl for Housing Programs as a `Y of Incremental Tax Revenues: 20% i Net Tax Increment ' Available for Ion-Housin¢ Proiects 0 0 169,071 169,071 245,073 414,144 330,466 744,610 418,492.1 1,163,1031 529,344 1,69Z,447 639,142' 2,331,538' 746,7831 3,078,371 864,4701 3,942,841 975,681 4,918,522 1,113,682 6,032,205 1,216,2181 7,248,423 1,191,516 8,539,939 1,390,501 9,930,440 1,500,419 11,430,858 1,611,031 13,041,890 1,712,629 14,754,519 1,844,055 16,598,574 1,973,436 18,572,010 2,078,249 20,650,259 2,195,389 22,845,648 2,324,296 25,169,944 2,455,300 27,625,244 2,592,431 30,217,675 2,759,227 32,976,902, 2,905,385 35,882,287 3,030,514 38,912,801 3,169,114 42,081,914 3,330,665 45,412,580 3,642,805 52,538,261 3,764,364 56,302,624 3,868,937 60,171,562 3,986,788 64,158,350 4,108,175 68,266,524 4,233,203 72,499,727 4,361,982 76,861,708 4,494,624 81,356,332 4,631,246 85,987.578 4,771,966 90,759,544 4,916,908 95,676,452 5,066,198 100, 742,649 5,219,967 105,962,616 5,3 78,348 111,340,964 4,918,522 20,650,259 48,895,455 n L� J Seifel Consulting Inc. T_TI_Lodi 1_10_02.x&:Tl 4130/02 1 Appendix Table 2B Tax Increment Projections Proposed Lodi Redevelopment Project Area (In Present Value or Constant 2001/02 Dollars) * Based on revenues from Basic Tax Increment (1.096), exclusive of bond overrides. Assumptions: Present value discounted to 2001/02 at: 5.5% Seitel Consulting Inc T'_T]_Lodi 1_1D_02.x1s:T1 4/30/02 County Distribution of Basic Incremental Taxes Agency Obligations Net Tax Increment Net Tax Increment (l) (3) (4) (5) (7) Available for Available for Incremental County Net Taxes Pass- Agency Housine Programs Non-Housin Projects rear Fiscal Tax Admin Remitted Through Admin 1 (8) (9) (10) (11) IN) Year Revenues* Fee to Agency Payments Expenses Annual Cumulative Annual Cumulative 0 2001/02 1 200Z/03 0 0 Oi 0 0 0 0 0 e 2 2003104 288,513 4,328 284,186 57,703 16,878 57,703 57,703 151,902 151,902 3 2004/05 396,406 5,946 390,460 79,281 23,190 79,281 136,984 208,708 360,610 4 2005106 506,663 7,600 499,063 101,333 29,640 101,333 238,316 266,758 627,368 5 2006107 608,172 9,123 599,050 121,634 35,578 121,634 359,951 320,203 947,570 6 2007/08 7Z9,164 10,937 718,226 145,833 42,656 145,833 505,784 383,905 1,331,475 7 2008/09 834,510 12,518 821,993 166,902 48,819 166,902 672,686 439,370 1,770,845 8 2009/ 10 924,2ZZ 13,863 910,359 184,844 54,067 184,844 857,530 486,603 2,257,448 9 2010111 1,014,097 15,211 998,885 202,819 59,325 202,819 1,060,349 533,922 2,791,370 10 2011/ 12 1,084,888 16,273 1,068,615 216,978 63,466 216,978 1,277,327 571,193 3,362,563 11 2012/ 13 1 1,173,778 17,607 1,156,171 234,756 68,666 234,756 1,512,082 617,994 3,980,557 12 2013/ 14 1,255,264 18,829 1,236,435 274,596 71,079 251,053 1,763,135 639,708 4,620,265 13 20141 15 1 1,300,727 19,511 1,281,217 305,628 71,544 260,145 2,023,281 643,899 5,264,164 14 2015/ 16 1,352,702 20,291 1,332,412 331,751 73,012 270,540 2,293,821 657,108 5,921,272 15 2016117 1,408,891 21,133 1,387,757 359,216 74,676 281,778 2,575,599 672,087 6,593,360 16 2017/ 18 1,459,762 21,896 1,437,866 385,898 76,001 291,952 2,867,552 684,013 7,277573 17 2018/ 19 1,495,827 22,437 1,473,390 408,400 76,582 299,165 3,166,717 689,242 7,966,615 18 2019/20 1,544,254 23,164 1,521,090 430,635 78,160 308,851 3,475,568 703,444 8,670,059 19 2020121 1,587,603 23,814 1,563,789 453,431 79,284 317,521 3,793,089 713,553 9,383,612 20 2021122 1,607,443 24,112 1,583,331 470,425 79,142 321,489 4,114,577 712,276 10,095,888 21 2022/ 23 1,624,503 24,368 1,600,135 482,793 79,244 324,901 4,439,478 713,198 10,809,086 22 2023124 1,643,201 24,648 1,618,553 494,679 79,523 328,640 4,768,118 715,710 11,524,796 23 2024125 1,658,835 24,883 1,633,952 505,924 79,626 331,767 5,099,885 716,635' 12,241,431 24 2025126 1,672,530 25,088 1,647,442 516,033 79,690 334,506 5,434,391 717,213 12,958,644 25 2026/27 1,696,214 25,443 1,670,771 527,570 80,396 339,243 5,773,634 723,562 13,682,206 26 2027/28 1,707,497 25,612 1,681,884 537,973 80,241 341,499 6,115,133 722,171 14,404,377 N 2028129 1,702,198 25,533 1,676,666 542,889 79,334 340,440 6,455,573 714,003 15,118,380 28 2029/30 1,695,562 25,433 1,670,128 544,647 78,637 339,112 6,794,685 707,732 15,826,112 29 2030/31 1,694,910 25,424 1,669,487 547,134 78,337 338,982 7,133,667 705,033 16,531,145 30 2031132 1,688,872 25,333 1,663,539 549,300 77,646 337,774 7,471,442 698,818 17,229,963 31 2032/33 1,681,467 25,222 1,656,245 550,171 76,978 336,293 7,807,735 692,803 17,922,766 32 2033/34 1,672,735 ' 25,091 1,647,644 559,099 75,400 334,547 8,142,282 678,598 18,601,365 33 2034135 1,655,985 24,840 1,631,145 565,404 73,454 331,197 8,473,479 661,090, 19,262,455 34 2035/36 1,638,563 24,578 1,613,985 568,813 71,746 327,713 8,801,192 645,713 19,908,168 35 2036/37 1,620,417 24,306 1,596,111 571,266 70,076 324,083 9,125,275 630,685 20,538,85.3 36 2037/38 1,601,622 24,024 1,577,598 572,829 68,444 320,324 9,445,600 616,000 21,154,853 37 2038/39 1,582,251 23,734 1,558,517 573,569 66,850 316,450 9,762,050 601,648 21,756,501 38 2039140 1,562,370 23,436 1,538,935 573,544 65,292 312,474 10,074,524 587,625 22,344,126 39 2040/41 1,542,042 23,131 1,518,911 572,813 63,769 308,408 10,382,932 573,921 22,918,046 40 2041/42 1,521,325 22,820 1,498,505 571,429 62,281 304,265 10,687,197 560,530 23,478,576 41 2042/43, 1,500,275 22,504 1,477,771 569,442 60,827 300,055 10,987,252 547,446 24,026,022 42 2043/44 1,478,941 22,184 1,456,757 566,900 59,407 295,788 11,283,040 534,661 24,560,684 43 2044/45 1,457,371 21,861 1,435,511 563,847 58,019 291,474 11,574,515 522,170 25,082,854 44 2045146 1,435,610 21,534 1,414,076 560,326 56,663 287,122 11,861,637 509,965 25,592,819 45 2046147 1,413 699 21,205 1,392 494 556,375 55,338 282 740 12,144,376 498.D411 26.090,860 [OTAL 60,721,882 910,828 59,811,054 18,676,833 2,898,984 12,144,376 26,090,860,; -:' 'umulative j x # ' U To: 2011112 6,386,634 95,800 6,290,835 1,277,327 373,618 1,277,32731 3,362,563: To: 2021/22 20,572,886 308,593 20,264,293 4,932,062 1,121,765 4,114,577 f ' 10,095 888 " ., To: 2031132 37,357,208 560,358 36,796,850 10,181,005 1,914,440 7,471,442 § a 17,229963: �y; To: 2046/47 : 60,721,8821 912M 59,811 ,05 18,676 833 2,898,984 12,144 376 ' gu , aka <.,:1 26090.860 * Based on revenues from Basic Tax Increment (1.096), exclusive of bond overrides. Assumptions: Present value discounted to 2001/02 at: 5.5% Seitel Consulting Inc T'_T]_Lodi 1_1D_02.x1s:T1 4/30/02 Appendix Table 3A Tax Revenues Proposed Lodi Redevelopment Project Area (In Future Value or Nominal Dollars) t i r l J 7 Notes: First & Second Payments to Agency Su lemental Payments Total Basic Tax Revenues (1) (2) (3) (4) (5) (6) (7) (8) (9) Secured, Increase First & Supplemental Supplemental First & Supplemental Unitary Incremental Year Fiscal State Board, in AV Second Secured Secured Second Secured Payments Tax (N) Year Unsecurd AV Over Base Payments Assessements Payments Payments Payments Revenues 0 2001/02 540,175,192 1 2002/03 553,647,168 13,471,976 0 4,625,378 0 0 0 0 0 2 2003104 567,523,304 27,348,112 273,481 4,764,140 47,641 273,481 47,641 0 321,123 3 2004/05 581,815,723 41,640,531 416,405 4,907,064 49,071 416,405 49,071 0 465,476 4 2005/06 596,536,915 56,361,723 563,617 6,404,887 64,049 563,617 64,049 0 627,666 5 2006107 613,050,354 72,875,162 728,752 6,610,539 66,105 728,752 66,105 0 794,857 6 2007108 630,099,714 89,924,522 899,245 10,615,674 106,157 899,245 106,157 0 1,005,402 7 2008109 651,495,195 111,320,003 1,113,200 10,074,450 100,745 1,113,200 100,745 0 1,213,945 8 2009/ 10 672,777,363 132,602,171 1,326,022 9,236,960 92,370 1,326,022 92,370 0 1,418,391 9 2010/ 11 693,647,683 153,472,491 1,534,725 10,719,305 107,193 1,534,725 107,193 0 1,641,918 10 2011112 716,417,756 176,242,564 1,762,426 9,071,949 90,719 1,762,426 90,719 0 1,853,145 11 2012113 737,995,874 197,820,682 1,978,207 13,704,948 137,049 1,978,207 137,049 0 2,115,256 l2 2013/ 14 764,638,553 224,463,361 2,244,634 14,188,457 141,885 2,244,634 141,885 0 2,386,518 13 2014115 792,297,595 252,122,403 2,521,224 8,774,123 87,741 2,521,224 87,741 0 2,608,965 14 2015/16 815,095,483 274,920,291 2,749,203 11,323,854 113,239 2,749,203 113,239 0 2,862,441 15 2016( 17 840,899,061 300,723,869 3,007,239 13,807,665 138,077 3,007,239 138,077 0 3,145,315 16 2017/ 18 869,702,521 329,527,329 3,295,273 14,284,993 142,85C 3,295,273 142,850 0 3,438,123 17 Z018/ 19 899,559,378 359,384,186 3,593,842 12,299,262 122,993 3,593,842 122,993 0 3,716,834 18 2019/20 928,027,641 387,852,449 3,878,524 16,968,598 169,686 3,878,524 169,686 0 4,048,210 19 2020/ 21 961,734,606 421,559,414 4,215,594 17,515,429 175,154 4,215,594 175,154 0 4,390,748 20 2021( 22 996,662,540 456,487,348 4,564,873 12,525,523 125,255 4,564,873 125,255 0 4,690,129 21 2022] 23 1,027,299,128 487,123,936 4,871,239 (Z,935,989 129,360 4,871,239 129,360 0 5,000,599 22 2023/ 24 1,058,958,913 518,783,721 5,187,837 14,851,975 148,520 5,187,837 148,520 0 5,336,357 23 Z024/Z5 1,093,167,880 552,992,688 5,529,927 15,349,269 153,493 5,529,927 153,493 0 5,683,420 24 2025126 1,128,558,321 588,383,129 5,883,831 16,167,953 161,680 5,883,831 161,680 0 6,045,511 25 2026/27 1,165,475,254 625,300,062 6,253,001 21,532,897 215,329 6,253,001 215,329 0 6,468,330 26 2027/28 1,208,495,470 668,320,278 6,683,203 18,627,580 186,276 6,683,203 186,276 0 6,869,479 27 20Z81Z9 1,249,470,773 709,295,581 7,092,956 13,185,719 131,857 7,092,956 131,857 0 7,224,813 28 2029/ 30 1,285,823,721 745,648,529 7,456,485 13,597,312 135,973 7,456,485 135,973 0 7,592,458 29 2030/31 1,323,315,321 783,140,129 7,831,401 17,556,581 175,566 7,831,401 175,566 0 8,006,967 30 2031/ 32 1,365,516,022 825,340,830 8,253,408 16,384,961 163,850 8,253,408 163,850 0 8,417,258 31 203Z/ 33 1,407,369,117 867,213,925 8,672,139 16,912,918 169,129 8,672,139 169,129 0 8,841,268 32 2033134 1,450,627,631 910,452,439 9,104,524 17,457,807 174,578 9,104,524 174,578 0 9,279,102 33 2034/35 1,495,275,805 955,100,613 9,551,006 14,041,665 140,417 9,551,006 140,417 0 9,691,423 34 2035/36 1,537,400,799 997,225,607 9,972,256 14,462,915 144,629 9,972,256 144,629 0 10,116,885 35 2036/37 1,580,789,544 1,040,614,352 10,406,144 14,896,802 148,968 10,406,144 148,968 0 10,555,112 36 2037138 1,625,479,950 1,085,304,758 10,853,048 15,343,706 153,437 10,853,048 153,437 0 11,006,485 37 2038139 1,671,511,069 1,I31,335,677 11,313,359 15,804,017 158,040 11,313,359 158,040 0 11,471,399 38 2039/40 1,718,923,122 1,178,747,930 11,787,479 16,278,138 162,781 11,787,479 162,781 0 11,950,261 39 2040141 1,767,757,536 1,227,582,344 IZ,275,823 16,766,482 167,665 12,275,823 167,665 0 12,443,488 40 2041/42 1,818,056,982 1,277,881,790 12,778,818 17,269,477 172,695 iZ,778,818 172,695 0 12,951,513 41 2042/43 1,869,865,412 1,329,690,220 13,296,902 17,787,561 177,876 13,296,902 177,876 0 13,474,778 42 2043/ 44 1,923,228,095 1,383,052,903 13,830,529 18,321,188 183,212 13,830,529 183,212 0 14,013,741 43 2044/ 45 1,978,191,658 1,438,016,466 14,.380,165 181870.823 188,708 14,380,165 188,708 0 14,568,873 44 2045/46 2,034,804,128 1,494,628,936 14946289 19,436,948 194,369 14,946,289 194,369 0 15,140,659 45 2046/47 2.093.114.973 1552 939 781 15:529:398120 020 057 200,201 15.529,398. 200,201 0 15,729.598 TOTAL x 284,407654 SYS, 6,216,586 284,407,654 6,216,586 0 290,624,240 Cumulativeg To: 2011( 12} k,i 8,617 8734 724,05 8,617,873 124,050 0 9,341,922 at 1 stn;s.s t�� , To: 2021122 r 40,666 486 2,077,978 40,666,486 21077,978 0L�a To: 2031( 32s M3'th' 2L4 S k fai€3 '+w b 105,709 775 y i8` i s 3,679,881 105,709,775 3,679,881 0 To: 2046( 47 si' i r • € ? 284.4 654 x ' 6,216,586 284 407 654 6,216,586 0 t i r l J 7 Notes: First & Second Payments are based on the I% basic tax rate applied to the Increase in AV Over Base. Supplemental Secured Assessments include reassessed property and new development. Supplemental Secured Payments are based on the 1% basic [ax rate applied to the Supplemental Secured Assessments ' Unitary payments are estimated to escalate at an annual rale of: 0% Seifel Consulting Inc. T_TI_Lodi 1_10 02.xls:Tl 4/30102 1 Appendix Table 3B Growth in Assessed Value Proposed Lodi Redevelopment Project Area (in Future Value or Nominal Dollars) -- Growth in Secured i iessed Value Total Secured State Board and Unsecured AV (2) Grov: Rates (8) (9) (1) (3) (4) (7) (10) (5) (6) Secured Inflationary Reassessed New Secured State Unsecured Secured, 'ear Fiscal AV Adjustments Property Development Annual Average Board AV State Board, N) Year Assessments Assessments Annual Unsecurd AV 0 2001] 02 449,065,872 8,981,317 4,490,659 C 449,065,872 2,347,706 88,761,614 540,175,192 1 2002103 462,537,848 9,250,757 4,625,378 C 3.00% 3.00% 462,537,848 2,347,706 88,761,614 553,647,168 2 2003/04 476,413,984 9,528,280 4,764340 0 3.00% 3.00% 476,413,984 2,347,706 88,761,614 567,523,304 3 2004/05 490,706,403 9,814,128 4,907,064 C 3.00% 3.00% 490,706,403 2,347,706 88,761,614 581,815,723 4 2005/06 505,427,595 10,108,552 5,054,276 1,350,611 3.00% 3.00% 505,427,5951 2,347,706 88,761,614 596,536,915 5 2006/07 521,941,034 10,438,821 5,219,410 1,391,129 3.27% 3.05% 521,941,0341 2,347,706 88,761,614 613,050,354 6 2007108 53B,990,394 10,779,808 5,389,904 5,225,770 3.27% 3.09% 538,990,394 2,347,706 88,761,614 630,099,714 7 2008109 560,385,875 11,207,718 5,603,859. 4,470,592 3.97% 3.21% 560,385,875 2,347,706 88,761,614 651,495,195 8 2009/ IC 581,668,043 11,633,361 5,816,680 3,420,279 3.8N- 3.2911,1 581,668,043 2,347,706 88,761,614 672,777,363 9 2010/ 11 602,538,363 12,050,767 6,025,384: 4,693,922 3.59% 3.32% 602,538,363 2,347,706 88,761,614 693,647,683 10 2011/ 12 625,308,436 12,506,169 6,253,084' 2,818,865 3.78% 3.37% 625,308,436 2,347,706 88,761,614 716,417,756 11 2012/131 646,886,554 12,937,731 6,468,8661 71236,083 3.45% 3.37% 646,886,554 2,347,706 88,761,614 737,995,874 12 2013114 673,529,233 13,470,585 6,735,292 7,453,165 4.12% 3.44% 673,529233 2,347,706 88,761,614 764,638,553 13 2014115 701,188,275 14,023,765 7,011,883 1,762,240 4.11% 3.49% 701,188,275 2,347,706 88,761,614 792,297,595 14 20151 16 723,986,163 14,479,723 7,239,862 4,083,992, 3.25% 3.47% : 723,986,163 2,347,706 88,761,614 815,095,483 15 20161 17 . 749,789,741 14,995,795 7,497,897; 6,309,768 3.56% 3.48% 749,789,741 2,347,706 88,761,614 840,899,061 16 2017118 778,593,201 15,571,864 1,785,932 6,499,061• 3.84% 3.50% 1 778,593,201 2,347,706 88,761,614 869,702,521 17 2018/ 19 808,450,058 16,169,001 8,084,501 4,214,761 3.83% 3.52% 1 808,450,058 2,347,706 88,761,614 899,559,378 18 2019/ 20 836,918,321 16,738,366 8,369,133 8,599,415 3.52% 3.52% 836,918,321 2,347,706 88,761,614 928,027,641 19 2020121 870,625,286 17,412,506 8,706,253 3.55% 870,625,286 2,347,706 88,761,614 961,734,606 20 2021122 905,553,220 18,111,0164 9,055,532 3.57% 905,553,220 2,347,706 88,761,614 996,662,540 21 2022/23 936,189,808' 18,723,796 9,361,898 3.56% 936,189,808 2,347,706 88,761,614 1,027,299,128 22 2023124 967,849,593 19,356,992 9,678,496 3.55% 967,849,593 2,347,706 88,761,614 1,058,958,913 23 2024/ 25 1,002,058,560 20,041,171 10,020,58E 3.55`Yo 1,002,058,560 2,347,706 88,761,614 1,093,167,880 24 2025/ 26 1,037,449,001 20,748,980 10,374,49C 3.55% 1,037,449,001 2,347,706 88,761,614 1,128,558,321 25 2026/27 1,074,365,934 21,487,319 10,743,659 3.55% 1,074,365,934 2,347,706 88,761,614 1,165,475,254 26 2027/28 1,117,386,150 22,347,723 11,173,861 3.57% 1,117,386,150 2,347,706 88,761,614 1,208,495,470 27 2028/29 1,158,361,453 23,167,229 11,583,615 3.57% 1,158,361,453 2,347,706 88,761,614 1,249,470,773 28 2029/30 1,194,714,401 23,894,288 11,947,144 3.56% 1,194,714,401 2,347,706 88,761,614 1,285,823,721 29 2030131 1,232,206,001 24,644,120 12,322,06C 3.54% 1,232,206,001 2,347,706 88,761,614 1,323,315,321 30 2031132 1,274,406,702 25,488,134 12,744,067 3.54% 1,274,406,702 2,347,706 88,761,614 1,365,516,022 31 2032/ 33 1,316,279,797 26,325,596 13,162,79E 3.53% 1,316,279,797 2,347.706 88,761,614 1,407,389,117 32 2033/34 1,359,518,311 27,190,366 13,595,183 3.52% 1,359,518,311 2,347,706 88,761,614 1,450,627,631 33 Z034/ 35 1,404,166,485 28,083,330 14,041,665 3.52% 1,404,166,485 2,347,706 88,761,614 1,495,275,805 34 2035/36 1,446,291,479 28,925,830 14,462,915 3.50% 1,446,291,479 2,347,706 88,761,614 1,537,400,799 35 2036/37 1,489,680,224 29,793,604 14,896,802 3.49% 1,489,680,224 2,347,706 88,761,614 1,580,789,544 36 2037/ 38 1,534,370,6301 30,687,413 15,343,706 3.47% 1,534,370,630 2,347,706 88,761,614 1,625,479,950 37 2038/39 1,580,401,7491 31,608,035 15,804,017 3.46% 1,580,401,749 2,347,706 88,761,614 1,671,511,069 38 2039140 1,627,813,802 32,556,276 16,278,13E 3.45% 1,627,813,802; 2,347,706 88,761,6141 1,718,923,122 39 2040/41 1,676,648,216 33,532,964 16,766,482 3.44% 1,676,648,216 2,347,706; 88,761,6141 1,767,757,536 40 2041142 1,726947,662 34,538,953 17,269,471 3.42% 1,726,947,662 2,347,706' 88,761,6141 1,818,056,982 41 20421 43 1,778,756,092 35,575,122 17,787,561 3.41% 1,778,756,092' 2,347,7061 88,761,6141 1,869,865,412 42 2043/ 44 1,832,118,7751 36,642,376 18,321,18E 3.40% 1,832,118,775, 2,347,706] 88,761,614; 1,923,228,095 43 2044/45 1,887,082,3381 37,741,647 18,870,823 3.40% 1,887,082,338 2,347,7061 88,761,614! 1,978,191,658 44 2045/ 46 1,943,694,8081 38,873,896, 19,436,948 3.39% 1,943,694,8081 2,347,706 88,761,614, 2,034,804,128 45 2046/47 2,002,005 653 40 040113 20 020,057 0 3.00% 3.38% 2,002 005 653 2,347.706 88 761614 2.09M 14,973 C71AL z e , a...." 139.661,925; "i ?:.,, s �.t A'1�<': 'umulativeg n To: 2011/12 23 a z' ` To: 21( Z2 ,8166 81,80819 To: 2031132 $ 132,049,180 £ x To: 2046/ 139,661 925 Assumptions: Annual Inflationary Adjustment: 2% of Secured AV State Board Annual Increase: 0% Reassessed Property Assessments: 191, of Secured AV Unsecured AV Annual Increase: 0% Development Per Absorption Analysis Seifel Consulting Inc. T_TI_Lodi 1_10_02.xls:Tl 4/30/02 Appendix Table 4 New Development Schedule Proposed Lodi Redevelopment Project Area (In Present Value or Constant 2001/02 Dollars, unless otherwise noted) Future value based on 2001/02 values escalated annually at: 3% L J C Seifel Comuulttng luc. T_TI_Ludi 1_10_02.xis:Devt 4/30/02 1 Residential, RetaiXfDining Commercial Heavy Warehouse/ Total Vacant Land Commercial Office Industrial Light Industrial Assessed Value (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (7) (8) Incremental Incremental Incremental Incremental Incremental Constant Escalated to Year Fiscal Assessed Value Square Assessed Value Square Assessed Value Square Assessed Value Square Assessed Valuf 2001/02 Nominal (N) Year Units ( 150.000 unit) Feet 55 SF Feet 90 'F Feet ($60 'F) Feet ($50/SF) Dollars Dollars 0 200 L/ 02 0 0 0 0 0 0 0 1 2002/ 03 0 0 0 0 0 0 0 2 2003104 0 0 0 0 0 0 0 3 2004105 0 0 0 0 0 0 0 4 2005/06 8 1,200,000 0 0 0 0 1,200,000 1,350,611 5 2006107 8 1,200,000 0 0 0 0 1,200,000 1,391,129 6 2007/ 08 8 1,200.000 16,300 896,500 12,000 11080,000 201000 1,200,000 0 4,376,500 5,225,770 7 2008/09 8 1,200,000 17,000 935,000 0 25,000 1,500,000 0 3,635,000 4,470,592 8 2009/ 10 8 1,200,000 0 0 25,000 1,500,000 0 2,700,000 3,420,279 9 2010/ 11 8 1,200,000 0 0 25,000 1,500,000 17,950 897,500 3,597,500 4,693,922 10 2011/ 12 8 1,200,0000 0 0 17,950 897,500 2,097,500 2,818,865 11 2012/ 13 8 1,200,000 34,000 1,870,000 14,000 1,260,000 0 17,950 897,500 5,227,500 7,236,083 12 2013/ 14 8 1,200,000 34,000 1,870,000 14,000 1,260,000 0 17,950 897,500 5,227,500 7,453,165 1.3 2014/ 15 8 1,200,000 0 0 0 0 11200,000 1,762,240 14 2015/ 16 8 1,200,000 0 0 25,000 11500,000 0 2,700,000 4,083,992 15 2016117 8 1,200,000 0 15,000 1,350,000 25,000 1,500,000 0 4,050,000 6,309,768 Ili 20171 18 8 1,200,000 0 15,000 1,350,000 25,000 1,500,000 0 4,050,000 6,499,061 17 20181 19 8 1,200,000 0 0 22,500 1,350,000 0 2,550,000 4,214,761 18 2019/20 8 1,200,000 34,000 1.870,000 14,000 1,260,000 0 14,425 721,250 5,051,250 8,599,415 19 2020/ 21 8 1,200,000 33,500 1,842,500 14,000 1,260,000 0 14,425 721,250 5,023,750 8,809,176 20 2021/ 22 8 1,200,000 0 0 0 14,425 721,250 1,921,250 3,469,991 21 2022/ 23 8 1,200,000 0 0 0 14,425 721,250 1,921,250 3,574,09L 22 2023124 8 1,200,000 0 0 25,000 1,500,000 0 2,700,000 5,173,479 23 2024125 8 1,200,000 0 0 25,000 1,500,000 0 2,700,000 5,328,684 24 2025/ 26 9 1,350,000 0 0 25,000 1,500,000 0 2,850,000 5,793,463 25 2026/ 27 9 1,350,000 17,000 935,000 15,200 1.368,000 25,000 1,500,000 0 5,153,000 10,789,238 26 2027/ 28 0 17,000 935,000 20,000 1,800,000 0 14,425 721,250 3,456,250 7,453,719 27 2028129 0 0 0 0 14,425 721,250 721,250 1,602,105 28 20291 30 0 0 0 0 14,425 721,250 721,2501,650,168 29 2030/ 31 0 0 0 25,000 1,500,000 14,425 721,250 2,221,250 5,234,521 30 2031132 0 0 0 25,000 1,500,000 0 1,500,000 3,640,894 31 2032/ 33 0 0 0 25,000 1,500,000 0 1,500,000 3,750,121 32 2033/ 34 0 0 0 25,000 1,500,000 0 1,500,000 3,862,624 33 2034135 0 0 0 0 0 0 0 34 2035/ 36 0 0 0 0 0 0 0 35 2036/ 37 0 0 0 0 0 0 0 36 2037138 0 0 0 0 0 0 0 37 2038139 0 1 0 0 0 0 0 0 38 2039140 0 0 0 0 0 0 0 39 2040141 0 0 0 0 0 0 0 40 2041/42 0 0 0 0 0 0 0 41 2042143 0 0 0 0 0 0 0 42 2043144 0 0 0 0 0 0 0 43 2044/45 0 0 0 0 0 0 0 44 2045/46 0 0 0 0 0 0 0 45 2046/47 0 0 0 0 0 0 0 TOTAL 178 26,700,000 202,800 11,154,000 133,200 11,988,000 392,500 23,550,000 187,200 9,360,000 82,752,000 139,661,925 Cumulative To: 201111256 8,400,000 33,300 1,831,500 12,000 1,080,000 95,000 5,700,000 35,900 1,795,000 18,806,500 23,371,166 To: 2021/ 22 136 20,400,000 168,800 9,284,000 98,000 8,820,000 192,500 11,550,000 115,075 5,753,750 55,807,750 81,808,819 To: 2031/ 32 178 26,700,000 202,800 IL,154,000 133,200 11 11 342,500 20,550,000 187,200 9,360,000 79,752,000 132,049,180 To: 204b 47 178 26,700,000 202 800 t 1154 000 133 200 I l 988 000 39Z,500 23,550,000 187,200 9,360,000 82 752000 139 661 925 Future value based on 2001/02 values escalated annually at: 3% L J C Seifel Comuulttng luc. T_TI_Ludi 1_10_02.xis:Devt 4/30/02 1 Appendix Table 5A Pass -Through Payments to Affected Taxing Entities Proposed Lodi Redevelopment Project Area (1n Future Value or Nominal Dollars) ERAF Adjusted Levies [A] The City's pass-through is based only on the first tier of the ABI 290 pass-through. Its shares of the second and third tiers are retained by the Agency. Seifel Consulring Inc T_TI Lodi 1_10 02.xls:PThru 4/30102 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) City County Lodi San Joaquin County San Joaquin San Joaquin North ERAF Total General General Unified Delta Comm. Office of Cty Flood County San Joaquin Pass-Throughs Fund"' Schools College Education Control Mosquito Water Cons. year Fiscal (N) Year Leve: 1639% Levy: 21.67%, Levv: 27.64% Leve: 3.89`:6 Levy: 1.39%+ Leve 0.17%, Levy: 0.77%, Levy: 0.51% Levv: 2751% Levy: 100.00%, 0 2001/ 02 1 '_002103 0 0 0 0 0 0 0 0 0 0 20031 04 10,528 13,915 17,755 2,496 893 109 492 329 17.707 64,225 3 20041 05 15,261 20,171 25,736 3,618 1,294 159 713 477 25,667 93,095 4 20051 06 20,579 27.199 34,703 4,379 1,745 214 961 643 34,611 125,533 5 20061 07 26,060 34.444 43,947 6,178 2,209 271 1,217 814 43,830 158,971 6 2007) 08 32,964 43,568 55,588 7,815 2,794 343 1,539 1,030 55,439 201,080 7 2008109 39,801 52,605 67,119 9,436 3,374 414 1,858 1,244 66,939 242,789 8 2009/ 10 46,504 61,464 78,422 11,025 3,942 484 2,171 1,453 78,212 283,678 9 2010111 53,833 71,150 90,781 12,763 4,563 560 2,514 1,682 90,538 328,384 10 20111 12 60,758 80,304 102,460 14,405 5,151 632 2,837 1,898 102,185 370,629 11 2012/ 13 69,352 91,662 116,952 16,442 5,879 721 3,238 2,167 116,639 423,051 12 20131 14 78,245 113,115 144,324 20,290 7,255 890 3,996 2,674 151,275 522,063 13 20141 15 85,539 132,822 169,468 23,825 8,519 1,045 4,692 3,140 183,970 613,020 14 20151 16 93,849 152,105 194,071 27,284 9,756 1,197 5,374 3,596 214,785 702,016 15 2016117 103,124 173,755 221,695 31,168 11,144 1,367 6,139 4,107 249,442 801,940 16 20171 18 112,724 196,928 251,262 35,324 12,631 1,549 6,957 4,655 286,862 908,892 17 20181 19 121,862 219,874 280,538 39,440 14,102 1,730 7,768 5,198 324,282 1,014,794 IS 20191 20 132,726 244,596 312,081 43,875 15,688 1,924 8,641 5,782 363,581 1,128,895 19 20201 21 143,957 271,709 346,675 48,738 17,427 2,137 9,599 6,423 407,365 1,254,031 20 2021122 153,772 297,396 379,449 53,346 19,075 2,340 10,507 7,030 449,671 1,372,586 21 20221 23 163,952 322.002 410,844 57,760 20,653 2,533 11,376 7,612 489,419 1,486,149 22 20231 24 174,960 348,076 444,111 62,437 22,325 2,738 12,297 8,228 531,317 1,606,489 23 2024/ 25 186,339 375,567 479,188 67,368 24,088 2,954 13,268 8,878 575,721 1,733,373 24 2025/ 26 198,211 404,140 515,645 72,493 25,921 3,179 14,278 9,553 621,827 1,865,247 25 20261 27 212,073 435,900 556,168 78,190 27,958 3,429 15,400 10,304 672,408 2,011,831 26 2027/ 28 225,225 468.943 598,327 84.118 30,077 3,689 16,567 11,085 726,303 2,164,335 27 2028/29 236,876 _ 499,256 637,004 89,555 32,022 3,928 17.638 11,802 776,161 2,304,240 28 20291 30 248,929 528,420 674,214 94,786 33,892 4,157 18,669 12,491 823,283 2,438,842 29 2030/31 262,520 560,030 714,545 10,456 35,919 4,406 19,785 13,238 873,831 2,584,730 30 2031/ 32 275,972 593,170 756,829 106,401 38,045 4,666 20,956 14,022 927,625 2,737,685 31 20321 33 289,873 626,786 799,720 112,431 40,201 4,931 22,144 14,817 981,932 2,892,834 32 2033134 304,228 671,991 857,396 120,540 43,100 5,286 23,741 15,885 1,059,302 3,101,469 33 2034135 317,747 716,945 914,754 128,603 45,984 5,640 25,329 16,948 1,136,999 3,308,948 34 2035136 331,696 760,938 970,884 136,495 48,805 5,986 26,883 17,988 1,212,315 3,511,990 35 2036137 346,064 806,250 1,023,699 144,623 51,712 6,343 28,484 19,059 1,289,891 3,721,124 36 2037138 360,863 852,922 1,088,248 152,994 54,705 6,710 30,133 20,162 1,369,794 3,936,532 37 2038/39 376,106 90,995 1,149,584 161,618 57,788 7,088 31,831 21,299 1,452,094 4,158,402 38 2039/40 391,806 950,509 1,212,759 170,499 60,964 7,477 33,580 22,469 1,536,863 4,.386,928 39 2040141 407,977 1,01,509 1,277,830 179,647 64,235 7,879 35,382 23,675 1,624,175 4,622,310 40 2041142 424,633 1,054,039 1,344,853 189,070 67,604 8,292 37,238 24,916 1,714,107 4,864,753 41 2042/43 441,789 1.108,144 1,413,887 198,775 71,075 8,717 39,150 26,195 1,806,736 5,114,470 42 2043144 459,460 1,163,8731 1,484,992 208,772 74,649 9,156 41,118 27,513 1,902,145 5,371,678 43 2044145 477,661 1,221,2741,558,230 219,068 78,331 9,607 43,146 28,870 2,00,415 5,636,602 44 2045/46 496,408 1,280,397 1,633,665 229,673 82,123 10,073 45,235 30,267 2,101,634 5909,474 45 2046/47 515,717 1.341,293 1711 363 240.597 86.028 10.552 47,386 31,707 2,205.889 6:190,5331 TOTAL 9,528,522 21,292,151 27,166,767 3,819,318 1,365,646 167,500 752,229 503,323 33,675,189 98,270,644 Cumulative To: 2011/ 12 306,238 404,820 516,512 72,615 25,965 3,185 14,302 9,570 515,129 1,868,384 To: 2021/ 22 1,401,437 2,298,782 2,933,027 412,348 147,440 18,084 81,214 54,341 3,263,00 10,609,672 To: 2031/32 3,586,493 6,834,286 8,719,902 1,225,912438,341 53,764 241,448 161,555 10,280,896 31,542,596 To: 2046/47 9,528,522 21,292,151 27,166,767 3,819,318 1,365,646 167,500 752,229 503,323 33,675,189 98,270,644 [A] The City's pass-through is based only on the first tier of the ABI 290 pass-through. Its shares of the second and third tiers are retained by the Agency. Seifel Consulring Inc T_TI Lodi 1_10 02.xls:PThru 4/30102 Appendix Table 5B Pass -Through Payments to Affected Taxing Entities Proposed Lodi Redevelopment Project Area (In Present Value or Constant 2001/02 Dollars) JAI The City's pass-through is based only on the first tier of the ABIZ90 pass-through. Its shares of the second and third tiers are retained by the Agency. Present value discounted to 2001/02 ac 5.5% i 11 t Seifel Consulting Inc. T_TI_Lodi 1_10_02.xls:PThru 4130/02 1 (1) (2) (3) (4) (5) (6) (7) (8) (25) (26) City County Lodi San Joaquin County San Joaquin San Joaquin North ERAF Total General General Unified Delta Comm. Office of Cty Floud County San Joaquin Pass-Throughs Fund` Schools College Education Control Mosquito Water Cons. Year Fiscal (N) Year Levy: 16.39% Levv: 21.67'X, Levy: 27.64% Levy: 3.89`X, Levv: 1.39% Levy: 0.17% Levy: 0.77% Luvy: 0.51% Lew: 27.57`X, C 20011 02 1 Z002/ 03 0 0 0 0 0 0 0 0 0 0 2 2003/04 9,459 12,502 15,952 2,243 802 98 442 296 15,909 57,703 .3 2004105 12,997 11,178 21,917 3,081 1,102 135 607 406 21,858 79,281 4 2005106 16.612 21,956 28,013 3,938 1,408 173 776 519 27,938 101,333 5 2006( 07 19,940 26,354 33,626 4,727 1,690 207 931 623 33,536 121,634 6 2007/ 08 23,907 31,597 40,315 5,668 2,027 249 1,116 747 40,207 145,833 7 2008109 27,361 36,162 46,140 6,487 2,319 284 1,278 855 46,016 166,902 8 2009110 30,302 40,050 51,100 7,184 2,569 315 1,415 947 50,963 184,844 9 2010111 33,Z49 43,945 56,069 7,883 2,819 346 1,553 1,039 55,919 202,819 10 20111 12 35,570 47,012 59,983 8,433 3,015 370 1,661 11111 59,822 216,978 II 20121 13 38,484 50,864 64,898 9,124 3,262 400 1,797 1,202 64,724 234,756 12 20131 14 41,156 59,496 75,912 10,672 3,816 468 2,102 1,406 79,568 274,596 13 2014/ 15 42,646 66,220 84,490 11,878 4,247 521 2,339 1,565 91,720 305,628 14 20151 16 44,350 71,880 91,712 12,894 4,610 565 2,539 1,699 101,501 331,751 15 2016/ 17 46,192 77,831 99,305 13,961 4,992 612 2,750 1,840 111,733 359,216 16 2017/ 16 47,860 83,612 106,681 14,998 5,363 658 2,954 1,976 121396 385,898 17 2018/ 19 49,043 88,487 112,902 15,873 5,675 696 3,126 2,092 130,506 408,400 18 2019120 50,631 93,305 119,048 16,737 5,984 734 3,296 2,206 138,694 430,635 19 2020/ 21 52,052 98,244 125,350 17,623 6,301 773 3,471 2,322 147,295 453,431 20 2021122 52,702 101,926 130,048 18,283 6,537 802 3,601 2,409 154,115 470,425 21 2022/ 23 53,262 104,606 133,467 18,764 6,709 823 3,696 2,473 158,993 482,793 22 2023/ 24 53,875 107,181 136,753 19,226 6,874 843 3,787 2,534 163,606 494,679 23 2024/ 25 54,.387 109,618 139,862 19,663 7,031 862 3,873 2,591 168,037 505,924 24 2025/ 26 54,836 111,808 142,656 20,056 7,171 880 3,950 2,643 172,032 516,033 25 2026/ 27 55,613 114,308 145,846 20,504 7,332 899 4,038 2,702 176,328 527,570 26 2027/ 28 55,983 116,562 148,722 20,908 7,476 917 4,118 2,755 180,532 537,973 27 2028/ 29 55,809 117,627 150,081 21,100 7,544 925 4,156 2,781 182,867 542,889 28 2029/30 55,591 118,006 150,567 21,168 7,569 928 4,169 2,790 183,857 544,647 Z9 2030/31 55,570 118,547 151,254 21,265 7,603 933 4,188 2,802 184,972 547,134 30 2031/ 32 55,372 119,016 151,853 21,349 7,634 936 4,205 2,813 186,122 549,300 31 2032/ 33 55,129 119.205 152,094 21,383 7.646 938 4,211 2,818 186,748 550,171 32 2033/ 34 54,843 121,139 154,562 21,730 7,770 953 4,280 2,864 190,959 559,099 33 2034/35 54,294 122,505 156,305 21,975 7,857 964 4,328 2,896 194,280 565,404 34 2035/36 53,723 123,244 157,248 22,107 7,905 970 4,354 2,913 196,350 568,813 35 2036/ 37 53,128 123,775 157,925 22,202 7,939 974 4,373 2,926 198,024 571,266 36 2037138 52,511124,114 158,358 22,263 7,960 976 4,385 2,934 199,327 572,829 37 2038/ 39 51,876 124,274 158,562 22,292 7,971. 978 4,390 2,938 200,287 573,569 38 2039140 51,224 124,269 158,555 22,291 7,970 978 4,390 2,938 200,929 573,544 39 2040141 50,558 124,111 158,353 22,263 7,960 976 4,385 2,934 201,274 572,813 40 2041/42 49.879 123,811 157,971 22,209 7,941 974 4,374 2,927 201,344 571,429 41 2042143 49,189 123,380 157,421 22,132 7,913 971 4,359 2,917 201,161 569,442 42 2043144 48,489 122,829 156,719 22,033 7,878 966 4,339 2,904 200,743 566,900 43 2044/45 47,782 122,168 155,875 21,914 7,836 961 4,316 2,888 200,106 563,847 44 2043/46 47,068 121,405 154,901 21,777 7,787 955 4,289 2,870 199,273 560,326 45 2046 47 1 46,3 120 549 153,809 21,624 7,73Z 948 4,259 2,850 198,254 556 375 TOTAL 1,990,852 4,046,681 5,163,181 725,881 259,548 31,834 142,965 95,659 6,220,232 18,676,833 Cumulative To: 2011112 209,395 276,756 353,115 49,644 17,751 2,177 9,778 6,542 352,169 1,277,327 To: 2021/22 674,511 1,068,622 1,363,461 191,686 68,540 8,407 37,753 25,261 1,493,821 4,932,062 To: 2031/32 1,224,808 2,205,903 2,814,523 395,688 141,483 17,353 77,932 52,145 3,251,169 10,181,005 To: 2046147 1,990,852 4,046,681 5,163,181 725,881 259,548 31,834 142,965 95,659 6,220,232 18,676,833 JAI The City's pass-through is based only on the first tier of the ABIZ90 pass-through. Its shares of the second and third tiers are retained by the Agency. Present value discounted to 2001/02 ac 5.5% i 11 t Seifel Consulting Inc. T_TI_Lodi 1_10_02.xls:PThru 4130/02 1 Appendix I: Project Area Committee (PAC) Minutes and Public Notices Noticia de Reunibnes Publicas y Liamada Para Voluntarios Para Servir Como Miembros En el Comit6 de Reconstrucci6n en Lodi Proyecto Numero Uno Damos noticia que el Consejo Municipal (City Council) de Lodi y la Agencia de Reconstrucc16n de la Ciudad de Lodi estan contemplando adoptar el Plan de Reconstrucci6n para le Primer Proyecto de la Agenica de Reconstrucci6n. En conexi6n con la adopci6n del Plan de Reconstrucci6n, el Consejo Municipal (City Council) de la Ciudad de Lodi ha determinado la necesidad de establecer el Comite de la Area del Proyecto ("PAC") que va ser compuesta de duenos de casas, inquilinos, duenos de negoicios y representates de organizaciones en la comunidad que seran afectados en la Area del Proyecto. Miren el mapa que esta incluido. El Consejo Municipal (City Council) y la Agencia de Reconstrucci6n los invita a asistir a las siguientes reuni6nes en conexi6n de la formaci6n del PAC: Fecha, Tiempo y Lugar Proposito 25 de Septiembre Cita de Informaci6n para hablar 7:OOPM del Plan de Reconstrucci6n; establecer las First Baptist Church funciones y hablar de la oportunidad de Primera Iglesia Bautista servir en el PAC; establecer los requisitos 19 S. Central Ave. para servir en el PAC. Lodi, CA 95240 16 de Octubre 7:00 PM Carngie Forum 305 W. Pine St. 7 de Noviembre Una Reunion Publica del Consejo Municipal 7.00 PM para anunciar los resultados de la eleci6n Caingie Forum y confirmar los miembros del PAC. 305 W. Pine St. E1 PAC es un grupo de duenos de casas, inquilinos, duenos de negocios, y representates de organizations comunitarias. Este grupo dara comentarios sobre el Plan de Reconstrucci6n que esta propuesto y dari recomendaciones al Consejo Municipal (City Council) y la Agencia de Reconstrucc16n. Si usted vive en la Area del Proyecto, es dueno de un negocio o es miembro de una organizaci6n comunitaria, por favor asiste a una de las citas o reuniones ya mencionadas. l r. NOTICE OF PUBLIC MEETINGS AND CALL FOR VOLUNTEERS TO SERVE AS MEMBERS OF THE PROJECT AREA COMMITTEE FOR THE LODI REDEVELOPMENT PROJECT NO.1 NOTICE IS HEREBY GIVEN THAT THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF LODI are contemplating the adoption of a Redevelopment Plan (the "Redevelopment Plan") for the Lodi Redevelopment Project No. 1 (the "Project"). In connection with the proposed adoption of the Redevelopment Plan, the City Council has determined the need for formation of a Project Area Committee ("PAC") to be composed of volunteer residential owner -occupants, residential tenants, business owners, and representatives of existing community organizations from the proposed Project Area, shown on the attached map. The City Council and the Redevelopment Agency invite you to attend the following public meetings and hearing in connection with formation of the PAC: Date, Time and Location Purpose September 25, 2001 Public Informational meeting to discuss adoption of the Redevelopment Plan; the 7:00 p.m. establishment of, functions of and opportunity First Baptist Church to serve on the PAC; and the eligibility 19 S. Central Avenue requirements for PAC members. Lodi, CA 95240 October 16, 2001 PAC election. 7:00 p.m. Carnegie Forum 305 W. Pine Street Lodi, CA 95240 November 7, 2001 A public meeting of the City Council to announce election results and confirm the 7:00 p.m. members of the PAC. Carnegie Forum 305 W. Pine Street Lodi, CA 95240 The PAC is a group of citizens who are residential owner -occupants, residential tenants, business owners, and community organization representatives who will review the proposed Redevelopment Plan for the Lodi Redevelopment Project No. 1 for the purpose of providing advisory recommendations to the City Council and Redevelopment Agency relating to the adoption and implementation of the Redevelopment Plan. If you reside in the Project Area, own and operate a business within the Project Area or are a member of a community organization serving the Project Area shown on the attached map and are interested in serving your community, please come to the meetings outlined "above. Persons who wish to participate in the redevelopment process but who are not interested in serving on the PAC are also welcome to attend. Redevelopment, .doc Project Area Committee Members Lodi Redevelopment Project Residential Owner Occupants Laura Mayate-DeAndreis Deane Savage Residential Tenants Connie Jauregui, Secretary Virginia Snyder Business Owner Tenants Chuck Easterling, Chairperson Eduardo Aguirre, Vice Chairperson Business Owner -Property Owners Sunil Yadav Beth Griffin Latta Community Organization Ann Larson, Eastside Community Improvement Committee The PAC consists of 9 members. Eight PAC members were elected by Project Area residents on October 19, 2001. Ann Larson, representative from the Eastside Community Improvement Committee, was appointed by the Eastside Community Improvement Committee. The City Council selected the Eastside Community Improvement Committee to appoint one of its members as the representative frorn a local community organization. Lodi Redevelopment Agency Report on the Plan Lodi Redevelopment Project April 2002 MINUTES City of Lodi Proposed Lodi Redevelopment Project Proposed Area Committee (PAC) Meeting 1 November 27, 2001 r 7:00 to 9:00 PM Carnegie Forum Large Conference Room , 305 W. Pine Street Lodi, CA ROLL CALL MEMBERS PRESENT: Eduardo Aguirre, Chuck Easterling, Beth Griffin- ' Latta, Connie Jauregui, Laura Mayate-Deandreis, Deane Savage, Virginia Snyder MEMBERS ABSENT: Sunil Yadav and Eastside Improvement Committee Representative INTRODUCTION Community Development Director Bartlam introduced himself to the Committee. He noted that he was also the Deputy Executive Director for the Redevelopment Agency. He introduced Dave Beatty and Ethan Walsh from the law firm of McDonough, Holland & Allen who is the agency's legal counsel. Each member introduced themselves and stated their interest in being a member of the committee. REVIEW OF PAC ROLE AND RESPONSIBILITIES Ethan Walsh reviewed some of the responsibilities and the role of the Project Area Committee (PAC) in the Redevelopment process. PAC's role is to serve as an advisory committee for the Redevelopment Agency. All PAC members represent people within the project area, the Redevelopment Agency wants to hear their input and views on the entire process. The members of the City Council are also members of the Redevelopment Agency, which is done for legal purposes. The PAC Committee and the City Council will be working interactively during the Redevelopment Agency process. The City Council members are required to consult with PAC , members concerning policy matters that deal with the planning provision of residential facilities for residents that could be displaced by the project or other policy matters affecting residences and businesses within the project area. Under Redevelopment Law, the Redevelopment Agency is required to consult with the PAC committee and solicit their input on issues related to the project area. They will continue to consult with the Committee for at least 3 years after the plan adoption is completed and as projects are going on within the project area. One of the primary roles that the Committee will play is that the Redevelopment Agency is required to submit the Redevelopment Plan to the Committee for review. Once the Committee has reviewed the draft document, a report must be prepared along with a recommendation on whether the plan should be adopted or not. Community Development Director Bartlam noted that the plan would be prepared by him and the consultant staff that the City has hired to prepare the document. The Committee will have input throughout the preparation of the document and have the opportunity to vote for or against the final document. If the committee votes to approve the Plan, it will need a majority vote. If the committee recommends against the Plan, the Agency will have to adopt it by a two-thirds vote. City of Lodi Proposed Lodi Redevelopment Project Proposed Area Committee (PAC) Meeting 1 November 27, 2001 7:00 to 9:00 PM Carnegie Forum Large Conference Room 305 W. Pine Street Lodi, CA 1. INTRODUCTION ?. REVIEW OF PAC ROLE AND RESPONSIBILITIES • By -Laws • Brown Act and Statement of Economic Interest • PAC Responsibilities 3. OVERVIEW OF REDEVELOPMENT • Begin discussion of redevelopment goals and objectives • Begin discussion of proposed projects (housing and non -housing) • Hand out Preliminary Plan 4. FUTURE MEETING SCHEDULE 5. VACANCIES 6. GENERAL COMMENTS OF PAC 7. PUBLIC COMMENT 8. ADJOURNMENT Materials Available at Meetin¢: Meeting Agenda Certified PAC Election Results By -Laws Brown Act Statement of Economic Interest Preliminary Plan with insert map of Proposed Area Guide to Redevelopment Materials on Display: Project Area Map (large) Feasibility Report Proposed Lodi Redevelopment Project Community Redevelopment Law: Article 6.5 and Sections 33347.5 and 33366. PAC Formation Procedures as adopted by Lodi City Council. PAC Election Procedures as adopted by Lodi City Council. Ms. Mayall reviewed potential redevelopment projects in the Project Area. Each project would help to alleviate conditions of blight and would work in coordination with Lodi's existing Central , City Revitalization Program. Some of the projects included economic development, building rehabilitation and fagade improvement, public infrastructure and facilities, circulation and landscaping improvements, site preparation and development, and affordable housing. A document will be brought before the PAC showing what blighted properties are in the area, what should be done to these properties, and how the PAC is going to proceed with the project. Ms. Mayall reviewed the steps in the Plan adoption process. The steps were: , 1) Project Area Designation (City Council adopts Survey Area) 2) Preliminary Plan (Statement of purpose and scope of a redevelopment program) ' 3) Formation of Project Area Committee (Project area committee is elected) 4) Preliminary Report on the Redevelopment Plan (Technical document designed to inform the community about the proposed Redevelopment Project) 5) Environmental Impact Report (Environmental impact analysis for project area. ' 6) Redevelopment Plan (Conclusion of consultation with taxing entities, the environmental review and community participation process) 7) Report to City Council (Information needed to adopt the Redevelopment Plan) , FUTURE MEETING SCHEDULE The PAC decided the meetings would be held the 4`h Tuesday of each month at 7:00 p.m. Due to the upcoming Christmas holiday, the next meeting of the PAC was scheduled for December 18, 2001. GENERAL COMMENTS OF PAC Virgina Snyder felt the Redevelopment Agency was exciting and she has been waiting for a program like this for a long time. ' A question was asked if additional properties could be added to the already approved Project Area. Community Development Director Bartlam replied that the same process in approving the first Project Area would have to be used again if additional properties were to be added or another Project Area could be created to cover the additional properties. ADJOURNMENT There being no further business the meeting was adjourned at 9:05 p.m. , Respectively Submitted, Lisa Wagner Administrative Secretary Community Development Director Bat -dam stated the process would probably take 6 to 7 months. They currently are in process of drafting an outline of the Plan and hopefully will have it available for review by the January meeting. He was hopeful that the final document would go to the City Council for adoption by June 2002. After the Plan is adopted, the Committee would probably meet on an as needed basis. Ethan Walsh briefly reviewed the by-laws, which will help facilitate future meetings. The by- laws set forth an organization for the PAC and gives rules and guidelines on the Committee's operations. Mr. Aguirre asked if there would be other project areas other than Project Area No. 1? Community Development Director Bartlam responded that historically other agencies would name their project areas. Lodi did not want to put a name on the Project Area because it could become confusing over time. It's possible that there may be a Project Area No. 2; but not at this time. Community Development Director Bartlam introduced Hilde Mayall from Seifel & Associates. Sefiel & Associates have been retained by the Agency to assist staff in preparing the documents necessary for adoption of the Plan. Ethan Walsh then reviewed two specific laws regarding the PAC. The Brown Act, a California law regarding open meetings, states that Project Area meetings are open to the public and an agenda must be posted prior to the meeting. Next was the Political Reform Act, which is the Conflict of Interest Law in California. It requires certain public officials to file Statements of Economic Interests and further prohibits public officials from using their political position to influence governmental decisions or for personal gain. The Attorney General's Opinion No. 99-304, allows the members who own property in the Project area to render advice so that they have the broad perspective that the Legislature intended when it adopted the PAC requirements. Once the Plan is adopted, the PAC will review specific projects and if one of the members owns property nearby, that member would have to abstain from the vote. City Council members who own proberty in the Project area will be disqualified from participating in the project from the start. After the Plan is adopted, any member of the City Council who was disqualified from voting on the Plan can participate in individual decisions as long as their property is not located within the specified distance to the subject property. OVERVIEW OF REDEVELOPMENT Hilde Mayall explained that the primary goal of the Redevelopment Plan was to alleviate physical and economic blighting conditions in the Project Area by improving the area's economic base and preserving and enhancing residential areas. A feasibility study was conducted on the Project Area this past Spring. The study addressed what was in the area, existing conditions, what type of businesses may be located in the area, and what income the area may generate. The primary funding source for most redevelopment projects will be tax increment revenue generated by increased property values in the project area. Taxes will not be increased in the area, and the tax increments collected will be given back to the Agency. Tax increment revenues would be used to leverage private funds as well as other public funds. Ms. Mayall estimated that over the life of the project (45 years) $150,000,000 (20 % for housing and 80% for non -housing redevelopment activities) would be generated in the Project Area. The Agency will be allowed to use a certain percentage of the monies for their administrative costs. F MINUTES City of Lodi Proposed Lodi Redevelopment Project Proposed Area Committee (PAC) Meeting 2 , December 18, 2001 7:00 to 9:00 PM Carnegie Forum Large Conference Room 305 W. Pine Street Lodi, CA ROLL CALL MEMBERS PRESENT: Eduardo Aguirre, Chuck Easterling, Connie Jauregui, Laura Mayate-Deandreis, Deane Savage, and Sunil Yadav MEMBERS ABSENT: Beth Griffin -Latta, Virginia Snyder, and Eastside Improvement Committee Representative OTHERS PRESENT: Konradt Bartlam, Community Development Director, Hilde Myall, Seifel Consulting Inc. INTRODUCTION Community Development Director Bartlam noted that a representative from the Eastside Improvement Committee would be appointed to the PAC (Project Area Committee) at their upcoming meeting of January 10, 2002. MINUTES The minutes of November 27, 2001 were unanimously approved as mailed. MEETING PLACE AND TIME Originally, the PAC had arranged to meet the second Tuesday of each month. Due to a scheduling conflict, the large conference room is not available at that time. It was decided that the meetings would be held the third Tuesday of each month in the large conference room at the Carnegie Forum. ELECTION OF OFFICERS ' Chairperson: Chuck Easterling Vice -Chairperson: Eduardo Aguirre Secretary: Connie Jauregui ADOPTION OF BY-LAWS Chairman Easterling chaired the meeting from this point. It was noted that if a member has 3 unexcused missed meetings within a 6 -month period, they will be terminated from City of Lodi Proposed Lodi Redevelopment Project Proposed Area Committee (PAC) Meeting 2 December 18, 2001 7:00 to 9:00 PM Carnegie Forum Large Conference Room 305 W. Pine Street Lodi, CA 1. INTRODUCTION 2. MINUTES 3. MEETING PLACE AND TIME 4. ADOPTION OF BY-LAWS 5. ELECTION OF OFFICERS • Chairperson • Vice -Chairperson • Secretary 6. VACANCIES 7. OVERVIEW OF REDEVELOPMENT • Major Documents • Overview of Tax Increment Financing • Discussion of Goals and Objectives • Discussions of Projects and Activities • Review of Agency Eminent Domain Process 8. GENERAL COMMENTS OF PAC 9. PUBLIC COMMENT 10. NEXT MEETING OF THE PAC H. ADJOURNMENT MAC SHARED: Working Files:Lodi Redevelopment:PAC:PAC_Mtg_2_Dec:Meeting2agenda.doc Currently, the County gets most of the property taxes collected. With the Agency in place, funds currently collected by the County and distributed to other taxing entities (special districts & Lodi Unified School District) will be redirected to the Lodi Redevelopment Agency. Member Aguirre asked what the impact might be to the other agencies that use to get a bigger share of the taxes. Ms. Myall replied that the different taxing entities are very concerned. The Financial Report will reflect the impacts. The Committee should be aware that the other entities will not lose money they currently receive, but rather earn less of future revenues. To Redevelopment Agency cannot spend the money just on anything. It has to be identified in the thin scope of the goals and objectives in the Redevelopment Program. The Redevelopment Program is a response to the blight that exists in the Project Area. During the first 5 years there is not much growth likely in the Project Area. During those first 5 years the Agency can borrow money to accomplish its goals from projected tax increments. After 5 years there should be enough increment to project a steady income which the Agency can bond against. Tax increment financing is defined as using future tax increment to do more projects to generate more tax increment. Any business the Agency is doing currently is being funded by the City and will have to be repaid. Ms. Myall gave a brief account of what the 20% for affordable housing could be spent on. It is meant to be spent on low to moderate income (up to 120% median) housing. A law was passed last October requiring that monies be spent in proportion to the current housing needs in the area. The San Joaquin Council of Government determines the projection of housing needs by income. Agencies must show progress towards these goals. , Mr. Bartlam stated that an investment into a catalyst project usually will draw more businesses to the area. The Agency should look at projects as not necessarily being a 10 or 12 percent return on the investment, they should look at the return as an investment for the next project. Chairman Easterling asked how the Agency could have an impact on a whole residential block that is blighted. Mr. Bartlam replied that the Agency could offer rehabilitation or grant loans to the properties. There would have to be some investment from the owner to show that they are willing to upgrade and maintain their property. Ms Myall stated that Eminent Domain is a tool that the Agency can use to accomplish the goals and objectives of the Redevelopment Plan. Eminent Domain enables the Agency to assemble parcels if the need arises. The overriding authority is the Agency who can assemble private property for a public purpose. State Law interprets public purpose as the goals and objectives of the Redevelopment Plan. The first option would always be that the Agency purchase the property from a willing seller. J 7 J n Li t t 1 L� Ll the Committee. It was suggested that all members have a list of the other members' phone numbers and addresses so they are able to communicate with one another. Chairman Easterling asked if one of the members were to resign, would another person be reappointed or would an election need to be held. Mr. Bartlam replied it would depend on how much time is left within the realm of scope. If a vacancy were to occur in the next couple months, then an election would need to be held. It was noted that at least 5 members would need to be present for a quorum. Each member can serve for three years or until the PAC is terminated. Offices can be held for two years. The annual meeting will be held the third Tuesday of December 2002. A motion was made by Member Savage, Member Jauregui second, that the By -Laws be approved with the change of meeting dates to reflect every third Tuesday of each month and that the annual meeting date be December 17, 2002. The motion was approved unanimously. VACANCIES The only vacancy noted was the one being held for a member of the Eastside Improvement Committee. A member will be appointed to the PAC at the next Eastside Improvement meeting of January 10, 2002. OVERVIEW OF REDEVELOPMENT Hilde Myall presented an overview of the major documents involved with the Redevelopment Agency. The Redevelopment Plan spells out the powers of the Agency, the program, the By -Laws, and the Preliminary Report. The Technical Analysis document evaluates financial feasibility and projects tax increment. The Preliminary Report is the draft that will go before the City Council. It acts as the evidence tosupport the Redevelopment Plan. It will be submitted with the Redevelopment Plan to the City Council. The Environmental Impact Report will be out January 2002 for review and comment by the PAC. It will be circulated for 45 days for public comment, and then the final draft will be produced incorporating all comments received. It will accompany the Redevelopment Plan. The Redevelopment Plan will be funded by tax increment revenues. The tax increment will be growth over the base year assessed value. The revenue generated will go the agency and will fund the program. Certain obligations will need to be paid from these funds. By State Law twenty percent (20%) will have to go towards affordable housing. The other 80% will be for non -housing needs. NEXT MEETING OF THE PAC The next meeting was confirmed as January 15, 2002 at 7:00 p.m. in the large conference room of the Carnegie Forum. ADJOURNMENT There being no further business the meeting was adjourned at 9:00 p.m. Respectively Submitted, Lisa Wagner Administrative Secretary City of Lodi Proposed Lodi Redevelopment Project Proposed Area Committee (PAC) Meeting 3 January 15, 2002 7:00 to 9:00 PM Carnegie Forum Large Conference Room 305 W. Pine Street Lodi, CA 1. INTRODUCTION 2. APPROVAL OF MINUTES OF DECEMBER 18, 2001 3. DRAFT REDEVLOPMENT PLAN 4. DRAFT OWNER PARTICIPATION RULES 5. GOALS & OBJECTIVES DISCUSSION (CONTINUED) • Residential Conservation Areas 6. GENERAL COMMENTS OF PAC 7. PUBLIC COMMENT 8. NEXT MEETING OF THE PAC 9. PUBLIC COMMENT 10. ADJOURNMENT Materials available at meeting: Meeting Agenda Minutes from December 18, 2001 PAC Meeting MAC SHARED: Working Files:Lodi Redevelopment:PAC:PAC_Mtg_3_Jan:Meeting3agenda.doc Id Ll MINUTES City of Lodi Proposed Lodi Redevelopment Project Project Area Committee (PAC) Meeting 3 January 15, 2002 7:00 to 9:00 PM Carnegie Forum Large Conference Room 305 W. Pine Street Lodi, CA ROLL CALL MEMBERS PRESENT: Eduardo Aguirre, Chuck Easterling, Connie Jauregui, Ann Larson, Beth Latta -Griffin, Deane Savage, Virginia Snyder and Sunil Yadav MEMBERS ABSENT: Laura Mayate-Deandreis OTHERS PRESENT: Konradt Bartlam, Community Development Director, Ethan Walsh, and Dirk Happee INTRODUCTION Chairman Easterling introduced Ann Larson who is the Eastside Improvement Committee representative. MINUTES The minutes of December 18, 2001 were approved as mailed with one minor change clarifying that office$ can be held for two years rather than one year. DRAFT REDEVELOPMENT PLAN Mr. Bartlam introduced Ethan Walsh the Agency's counsel. Mr. Walsh handed out copies of the Draft Redevelopment Plan and the Rules Governing Participation by Property Owners to each member. First he covered the Draft Redevelopment Plan (DRP). The Redevelopment Plan is the fundamental document governing the Redevelopment Agency's activities within the Project Area. It serves as the Agency's charter, establishes long term goals, grants the Agency certain powers, and places specific limitations on the authority of the Agency. The Plan is a long-term document and stays in affect for 30 years. The Redevelopment Agency is granted specific powers by the Redevelopment Plan. Those powers include, acquire property through eminent domain and convey it to a private party for development, authorization for the Agency to construct public improvements within a project area, establish land use controls, and the ability to finance its activities through a variety of sources. The agency can resell land to private entities for fair reuse value as oppose to fair market value. Member Snyder stated that a group is organizing a campaign that is in opposition to eminent domain. She asked if there was some sort of agreement that could be reached with the group. Mr. Bartlam replied that they would be opposed whether eminent domain was a factor or not. He has invited them to the PAC meetings, but they have not attended any meetings. He also shared that over the last 20 years, the City had obtained few properties using eminent domain.. Member Yadav asked the members if they had ever experienced property taken by eminent domain. He has been a victim of eminent domain, and spoke strongly against it. Chairman Easterling responded that discretion would need to be used and if eminent domain proceedings are used, it will probably be in a blighted property situation. The Agency will exercise diligence when using eminent domain. Member Snyder asked if there is more opposition when a property taken by eminent domain and is resold to a private party rather than a public agency. Mr. Bartlam replied that it depends on the project. Usually there is less opposition if the project is going to benefit the community whereas an affordable housing project is more likely to raise opposition. He noted that it's usually easier to acquire commercial business properties because they can determine the value of the property and loss of future business value. When it comes to an individual's property, it's more of an emotional loss, which is harder to compensate. Mr. Walsh noted specific powers granted to the Agency by the Redevelopment Plan. The Agency cannot incur debt beyond 20 years after the adoption of the Plan. The duration of the Plan is 30 years from the date of adoption. The Agency may not receive tax increments beyond 45 years from the adoption of the Plan. The Plan sets the maximum amount of bonded indebtedness that can be outstanding at one time. Twenty -percent (20%) of the tax increment received by the Agency must be used for low and moderate income housing. The agency may not use its power of eminent domain beyond 12 years from the date of the adopted Plan. A question was asked if the 12 years could be extended. Mr. Walsh responded that the original PIan would have to be amended and would have to go through the entire approval process to demonstrate that there still was existing blight and why the extra time is needed. Other requirements set forth in Redevelopment Law are: 1) The Agency establish rules for the participation in redevelopment of the Project Area by owners and to establish preferences to business tenants for reentry within the redeveloped Project Area. 2) The Agency is required to assist people, business concerns and others displaced by the Project in finding other locations and facilities. 3) The Agency is required to make relocation payments to those parties effected. Mr. Bartlam clarified that the relocation fees are not only for eminent domain acquisition but also for residential and commercial situations as well, and the Agency has an obligation to relocate tenant and incur the costs associated with the relocation. He noted that sometimes the relocation charges are greater than the property acquisition. t i 1 DRAFT OWNER PARTICIPATION RULES The Community Redevelopment Law and the Redevelopment Plan require that the Agency adopt rules governing owner participation prior to approval of the Plan. The rules are meant to explain how the Agency will encourage and allow owner participation in the redevelopment of the Project Area. The Owner Participation Rules allow that owners shall be given reasonable opportunity to participate in redevelopment by: 1) A property owner can retain all or portion of their property and develop and improve the property in accordance with the goals of the Plan. 2) A property owner can acquire adjacent property or other properties within the Project Area and develop or improve that property according the Plan. 3) A property owner can sell their property to the Agency and purchase other property in the Project Area. There are specific limitations on owner participation. They are: 1) The land uses proposed by the property owner need to be appropriate for the property and consistent with the City's General Plan and the Redevelopment Plan. 2) The construction, widening, or realignment of streets, as well as the construction of expansion of other public improvements will not involve owner participation. 3) The ability of the owner to finance the acquisition or development in accordance with the Plan. 4) The need or desire of the Agency to assemble land within the Project Area in order to create more efficient and marketable commercial and industrial parcels may prevent the owner from redeveloping their property in the manner they desire. Next was a discussion regarding Conforming owners. This is a provision to give property owners assurance that their property is safe of being acquired by the Agency. This section allows the Agency to determine that certain property within the Project Area meets the requirements of the Redevelopment Plan and that the owners will be permitted to remain as conforming owners without entering into an agreement with the Agency. If an owner wants to carry out redevelopment of their property, and the owner either wants agency assistance or further assurance that their property will not be condemned by the Agency after the property owner makes improvements in accordance with the Plan, the owner can obtain Agency assistance or protection against condemnation through an owner participation agreement with the Agency. The Owner Participation Rules additionally include the requirement that the Agency can not acquire real property when the building on that property is going to be continued with its present form and use without the consent of the owner, or the Agency needs to impose certain controls, limitations or restrictions on the property pursuant to the Plan, and the owner refuses to participate in the redevelopment of the property in the manner required by the Plan. Mr. Bartlam stated that the Agency's goal of investment is different than a private individual's goal. The Agency's return is sometimes in the form of bringing new jobs into the project area and it's hard to put a dollar amount on the benefit. Finally, the Agency will give a reasonable preference to business occupants who desire to remain in the Project Area to allow those business occupants to continue operating in the Project Area. A question was asked that after the Plan is approved, if a business wants to do a project within the Project Area without Agency funding and the project does not conform to what has been approved in the Plan, does the Agency have a say in the matter? Mr. Bartlam responded "no" the Redevelopment Plan from an Agency standpoint needs to conform to the General Plan also, therefore it will not be approved. Virginia Snyder asked if any consideration is given to historical elements. Mr. Bartlam replied that if it's important enough, it could be a trigger for Agency participation. He noted that downtown businesses have done improvements with the help of financial assistance from the City. GOALS & OBJECTIVES DISCUSSION (CONTINUED) Residential Conservation Areas. Mr. Bartlam explained that Residential Conservation Areas are not typically used in project areas. However, he felt it was a good idea since a portion of the Project Area is single-family residential. Residential Conservation Area adds a little more certainty to property owners within those discreet areas, that the Agency won't come in and condemn property and the Residential Conservation Area can spell out under what circumstances properties can be condemned. GENERAL COMMENTS OF PAC None PUBLIC COMMENT Chairman Easterling noted that in the future, this is where the Public will be invited to make their comments. NEXT MEETING OF THE PAC The next meeting will be held February 19, 2002. ADJOURNMENT There being no further business the meeting was adjourned at 9:00 p.m. Respectively Submitted, Lisa Wagner Administrative Secretary 11 fl City of Lodi Proposed Lodi Redevelopment Project Project Area Committee (PAC) Meeting 4 February 19,2002 7:00 to 9:00 PM Carnegie Forum Large Conference Room 305 W. Pine Street Lodi, CA 1. ROLL CALL 2. APPROVAL OF MINUTES OF JANUARY 15, 2002 3. REVIEW OF PRELIMINARY REPORT 4. GENERAL COMMENTS OF PAC 5. NEXT MEETING OF THE PAC 6. PUBLIC COMMENT 7. ADJOURNMENT Materials available at meeting: Meeting Agenda Minutes from January 15th, 2002 PAC Meeting Preliminary Report MAC SHARED: Working Files:Lodi Redevelopment:PAC:PAC_Mtg_4_Feb:Meeting4agenda.doc ROLL CALL MEMBERS PRESENT: Eduardo Aguirre, Chuck Easterling, Beth Griffin -Latta, Connie Jauregui, Ann Larson, Laura Mayate- , Deandreis, Deane Savage, Virginia Snyder and Sunil Yadav MEMBERS ABSENT: None OTHERS PRESENT: Konradt Bartlam, Community Development Director, and Hilde Mayall, Seifel & Associates. MINUTES The minutes of January 15, 2002 were approved with a correction to reflect that Beth ' Griffin -Latta arrived late, but did in fact attend the meeting. Another correction was made to the title of the minutes to show "Project Area Committee" rather than Proposed Area Committee." ' REVIEW OF PRELIMINARY REPORT Mr. Bartlam noted that the Preliminary Report is a required document that must be published. It outlines the proposed goals and objectives of the project area, it shows the anticipated financing structure, and it sets out the initial definition of blight, both ' economic and physical blight that exists in the project area. The preliminary report is a review document, not in its final form, and will likely have some comments made by the PAC, members of the public, and taxing entities who have received the report for their review and comment. Mr. Bartlam would like to get the document to a point where it's factually correct, but generally agreed upon by a variety of different people. Mr. Bartlam noted that there would not be a meeting in March 2002 because he will be out of town. He will be sending the Draft Environmental Impact Report to the PAC members, which is a State -mandated document. The document will be very technical and will address environmental issues. Hilde Mayall started with Chapter 2, Existing Conditions, of the Preliminary Report. Under the California Community Redevelopment Law (CRL), a proposed project area must be both urbanized and blighted. Mr. Bartlam added that the concept of an urbanized area is one where development has already taken place, there's not a lot of vacant or agricultural land. A question was asked whether the current ground water contamination would have an ' effect on projects in the area. Mr. Bartlam replied that contamination is included in the ' City of Lodi Proposed Lodi Redevelopment Project Project Area Committee (PAC) Meeting 4 February 19, 2002 7:00 to 9:00 PM Carnegie Forum Large Conference Room , 305 W. Pine Street Lodi Lodi, CA ' ROLL CALL MEMBERS PRESENT: Eduardo Aguirre, Chuck Easterling, Beth Griffin -Latta, Connie Jauregui, Ann Larson, Laura Mayate- , Deandreis, Deane Savage, Virginia Snyder and Sunil Yadav MEMBERS ABSENT: None OTHERS PRESENT: Konradt Bartlam, Community Development Director, and Hilde Mayall, Seifel & Associates. MINUTES The minutes of January 15, 2002 were approved with a correction to reflect that Beth ' Griffin -Latta arrived late, but did in fact attend the meeting. Another correction was made to the title of the minutes to show "Project Area Committee" rather than Proposed Area Committee." ' REVIEW OF PRELIMINARY REPORT Mr. Bartlam noted that the Preliminary Report is a required document that must be published. It outlines the proposed goals and objectives of the project area, it shows the anticipated financing structure, and it sets out the initial definition of blight, both ' economic and physical blight that exists in the project area. The preliminary report is a review document, not in its final form, and will likely have some comments made by the PAC, members of the public, and taxing entities who have received the report for their review and comment. Mr. Bartlam would like to get the document to a point where it's factually correct, but generally agreed upon by a variety of different people. Mr. Bartlam noted that there would not be a meeting in March 2002 because he will be out of town. He will be sending the Draft Environmental Impact Report to the PAC members, which is a State -mandated document. The document will be very technical and will address environmental issues. Hilde Mayall started with Chapter 2, Existing Conditions, of the Preliminary Report. Under the California Community Redevelopment Law (CRL), a proposed project area must be both urbanized and blighted. Mr. Bartlam added that the concept of an urbanized area is one where development has already taken place, there's not a lot of vacant or agricultural land. A question was asked whether the current ground water contamination would have an ' effect on projects in the area. Mr. Bartlam replied that contamination is included in the document as an influence and will have some negative effect on potential resale and value of property. Ms. Mayall noted that there are definitions of physical and economical blight that are used within Chapter 2. Adverse Physical Condition types include deficient or deteriorated buildings, factors that inhibit proper use of building or lots, incompatible uses, and substandard lots. Adverse Economic Conditions include depreciated values or impaired investments, economic indicators of distressed buildings or lots, lack of neighborhood commercial facilities, residential overcrowding or problem businesses, and a high crime rate. Under the Assessment of Existing Conditions heading, the Standard for Assessment describes the methodology used to determine the physical and economical blight assessment of each property. A total of eight survey areas were defined within the Project Area. A comprehensive Building Conditions Survey was conducted within these survey areas and photographic documentation was also collected and incorporated into the Preliminary Report. Getting in to more detail, Ms. Mayall noted an Adverse Physical Condition dealing with Earthquake Hazards. This condition was included in the report in the event ground shaking from an earthquake outside the Project Area would cause damage to the structures. It was noted that un -reinforced masonry buildings have proved to be hazardous during an earthquake. Within the downtown commercial area, there are several old unreinforced masonry buildings. Some are likely to be hazardous in the event of an earthquake. Deficient or Deteriorated Buildings, Age of Buildings. The consultant looked at the age of the building stock in the project area. Within the Project Area they found deteriorated residential structures, unoccupied, dilapidated, and abandoned residential structures, Residenti4l Structures with Informal and Potentially Substandard Construction, Small deteriorated residential units located on narrow alleys, structurally unsound residential structures, deteriorated commercial structures, old, badly deteriorated hotel buildings in downtown on Main and Sacramento Streets, an abandoned theater building on Lodi Avenue, a large, dilapidated, and abandoned school on Cherokee Lane, large un -reinforced masonry brick buildings, commercial structures with informal and possibly substandard construction, and unoccupied and apparently abandoned commercial structures. The Building Conditions Survey outlines the methodology used as the consultant went through each building and how the building was evaluated. A Building Conditions Assessment was done for each building in the Project Area. The evaluation was based on a scale of 1 to 5 with 5 being that the building is in excellent condition. The idea is that if an area is physically blighted, the average rating of buildings will be 2.5 or less. Factors That Inhibit Proper Use of Buildings or Lots. Some of the factors show up as physical as well as economic. Some factors noted were 1) Properties that suffer from soils and groundwater contamination 2) Properties that are adjacent to deteriorated, vacant or abandoned buildings 3) Lots of small size or irregular shape that are difficult to Public Improvement Deficiencies. You can use redevelopment funds to help fund public improvement deficiencies. Some of the deficiencies noted were 1) Deteriorated pavement surfaces 2) Unpaved or poorly paved alleys 3) Narrow alleys that have ' substandard access 4) Aging and inadequate storm drainage systems 5) Lack of public community facilities and 6) Parking inadequacies. Also, the East Side neighborhood contains aging, obsolete and inadequate wastewater utilities. I Economic Conditions that cause a Reduction of, or lack of, proper use of the Proposed Project Area. There are four categories of economic blight. 1) Depreciated ' values or impaired investments 2) Economic indicators or distressed buildings or lots 3) Residential overcrowding and 4) High crime rate. These blight conditions were evaluated by field survey, talking with people (City staff and public), and technical documents and data from public and private agencies. Summary of Observed Economic Blight. Deteriorated residences, boarded -up ' develop 4 Pro located next to the railroad Commercial and residential lots ) Properties 5 ) lacking adequate parking; and 6) Commercial uses that are impacted by fast moving traffic. Incompatible Uses. Some of the factors are 1) residential near the railroad 2) ' Residential uses in close proximity to active industrial or packing plant uses; and 3) ' Commercial and residential located adjacent to dilapidated or abandoned buildings. ' Substandard Lots. Over the years, a large number of lots have become substandard to ' economic development. Examples given were residential lots fronting onto an alley, small commercial lots in the downtown area along School Street, small and difficult to , develop commercial lots along Cherokee Lane, and small lots in commercial and industrial areas that are substandard to modern economic use. Public Improvement Deficiencies. You can use redevelopment funds to help fund public improvement deficiencies. Some of the deficiencies noted were 1) Deteriorated pavement surfaces 2) Unpaved or poorly paved alleys 3) Narrow alleys that have ' substandard access 4) Aging and inadequate storm drainage systems 5) Lack of public community facilities and 6) Parking inadequacies. Also, the East Side neighborhood contains aging, obsolete and inadequate wastewater utilities. I Economic Conditions that cause a Reduction of, or lack of, proper use of the Proposed Project Area. There are four categories of economic blight. 1) Depreciated ' values or impaired investments 2) Economic indicators or distressed buildings or lots 3) Residential overcrowding and 4) High crime rate. These blight conditions were evaluated by field survey, talking with people (City staff and public), and technical documents and data from public and private agencies. Summary of Observed Economic Blight. Deteriorated residences, boarded -up ' commercial and residential buildings, vacancies, and other observed physical and economic conditions provide substantial evidence of depreciated values and impaired investments. Adverse economic conditions observed were deteriorated or poorly maintained commercial properties, vacant ground floor commercial spaces, vacant second floor spaces in the downtown area that lack elevators, underutilized properties, large number of lots that are likely to be substandard to economic development. ' Outmoded, obsolescent buildings, commercial buildings with marginal occupancy, and deteriorated, dilapidated and abandoned residences. ' Depreciated Values or Impaired Investments. This section documents the presence of depreciated or stagnant property values or impaired investments in the Project Area by reporting on the 1) Poor economic performance of retail businesses 2) Residential sale prices below comparable city properties 3) Lodging establishments with lower revenues per room as compared to establishments outside the Project Area, and 4) presence of hazardous materials. Stagnant sales tax receipts in the Project Area are an indicator of ' depreciated values and impaired investments within the Project Area. Single family homes on the eastside tend to be older and smaller than newer homes that are being built I on the outskirts of town. Two bedroom homes sold for 53 percent less in the Project Area compared to other areas in the City. The Project Area contains poor quality multifamily housing, in addition to higher density housing. The lodging establishments in the Project Area tend to be very small, budget -class motels. Sixteen of the eighteen lodging establishments are located within the Project Area. Hazardous materials pose an unknown risk and for those who wish to invest and develop property. The remediation of toxic or hazardous waste is frequently costly and a major financial disincentive to reinvestment or development. Economic Indicators of Distressed Buildings or Lots. Most lease rates for commercial and industrial space in the Project Area are lower than in other parts of Lodi and the surrounding area. Commercial lease rates in the Downtown area are 30 to 50 percent lower than other retail centers in Lodi. Office lease rates are from 60 to 75 percent lower in the Downtown area than other areas of Lodi. Abnormally high vacancies and commercial space in the Downtown area exists. The Infeasibility of Private Sector to Rehabilitate Properties section evaluates impaired investment in terms of private investor's ability to rehabilitate deteriorated, older buildings while achieving a reasonable return on investment. During a field survey, several areas of under-utilized properties were identified. Residential Overcrowding. The data used was from the 1990 U.S. Census. The Project Area was divided into renter and owner households and showed that there was overcrowding in both categories. A High Crime Rate. Information will be forth coming from Police Department Conclusion for Economic Blighting Conditions. Based on findings, there is a necessity for redevelopment given the presence of economic and physical blight. This blight demonstrates a burden on the community meaning that private investment acting alone without public assistance in the form of redevelopment is not enough to turn it around. Redevelopment Program Description. The PAC must demonstrate a connection between what the blight conditions are and how the Redevelopment Program will correspond to correcting the blight. The chapter is set up to note the deficiencies to be corrected, and then a description on how the proposed activities in the Project Area will help remedy the deficiencies. The areas to be addressed within the Project Area will be split into the following six categories: 1) Economic Development 2) Building Rehabilitation, Fagade Improvements, and Historic Preservation 3) Public Infrastructure and Facilities 4) Neighborhood Preservation, Circulation and Landscaping Improvements 5) Site Preparation and Development and 6) Affordable Housing. Member Snyder asked about demolishing or rehabilitating historic buildings within the Project Area. Ms. Mayall replied that if the building is of a certain age, they have to go through a certain assessment before the building could either be demolished or rehabilitated. Proposed Methods of Financing and Feasibility. The intent of this chapter is to layout all the potential funding sources to the Agency and see if the sources are adequate enough to achieve the Redevelopment Program. The conclusion was that the funding sources are inadequate and therefore the tax increment revenue that comes from redevelopment is necessary to implement the Redevelopment Program. It also delineates how financing will be done if the funding sources are inadequate. It will be financed through tax increment revenue over the 45 -year life of the project. The projection of revenue is subject to change, since it is being projected over a long period of time. Tax Increment Financing: The Primary Source of Funding. This section explains what the financial impact will be to taxing entities' revenues. The tax increment projections are only estimates and the actual tax increments may be higher or lower than anticipated. The Agency must use the tax increment revenues to fulfill certain obligations. The assessed value of the Project Area is projected to grow by over $154 billion during the 45 -year tax increment collection. The appendices contain a list of sources that were used to prepare the document, a legal description, which is a State requirement, Building Conditions by Survey and Subareas, photographic documentation of blight, County Fiscal Officer's Report, and Tax Increment Projections. NEXT MEETING OF THE PAC The next PAC meeting will be held March 19, 2002 ADJOURNMENT There being no further business the meeting was adjourned at 8:55 p.m. Respectively Submitted, Lisa Wagner Administrative Secretary ni i i i C F� 1 i City of Lodi Proposed Lodi Redevelopment Project Project Area Committee (PAC) Meeting 5 March 19, 2002 7:00 to 9:00 PM Carnegie Forum Large Conference Room 305 W. Pine Street Lodi, CA 1. ROLL CALL 2. APPROVAL OF MINUTES OF FEBRUARY 19, 2002 3. REVIEW OF PRELIMINARY REPORT 4. REVIEW OF DRAFT ENVIRONMENTAL IMPACT REPORT (DEIR) 5. GENERAL COMMENTS OF PAC 6. NEXT MEETING OF THE PAC 7. PUBLIC COMMENT 8. ADJOURNMENT Materials available at meeting: Meeting Agenda : Minutes from February 19th, 2002 PAC Meeting Draft EIR MAC SHARED: Working Piles:Lodi Redevelopment:PAC:PAC_Mtg_5_Mar:Meeting5agenda.doc ROLL CALL City of Lodi Proposed Lodi Redevelopment Project Project Area Committee (PAC) Meeting 5 March 19, 2002 7:00 to 9:00 PM Carnegie Forum Large Conference Room 305 W. Pine Street Lodi Lodi, CA MEMBERS PRESENT: Eduardo Aguirre, Chuck Easterling, Beth Griffin -Latta, Connie Jauregui, Ann Larson, Laura Mayate- Deandreis, Deane Savage, Virginia Snyder and Sunil Yadav MEMBERS ABSENT: None OTHERS PRESENT: Konradt Bartlam, Community Development Director MINUTES The minutes of February 19, 2002 were approved with a correction noted that there would not be a PAC meeting in April. REVIEW OF PRELIMINARY REPORT Mr. Bartlam asked if there were any questions or comments regarding the Preliminary Report, which was reviewed at the last PAC meeting. Member Savage asked how HOME funds and the Community Development Block Grant Program (CDBG) connected with the Redevelopment Program. Mr. Bartlam responded that every year through the CDBG, $750,000 is granted to the City and the Council allocates a majority of those funds to construction projects, primarily located on the eastside, which is considered a target area. HOME funds totaling $200,000 can only be used for housing programs (i.e., owner -occupied rehabilitation and down payment assistance) and can only be granted to those who are income eligible. The two programs (Redevelopment & HOME funds) will work together to enhance the Project Area. A member asked when the report mentions "the eastside neighborhood" what area does that mean? Mr. Bartlam responded that the eastside neighborhood is anything residential in the Project Area. Member Savage stated the only way a community can grow is from within and people should be able to get the training and education to better themselves, which in return will improve the neighborhood. Mr. Bartlam noted that within the report on page III -9 under Public Infrastructure and Facilities it states "Assist in providing facilities to service residents in the Project Area, such as community centers, libraries and education and training centers." 1 i i 11 1 Member Easterling asked if it was possible to use tax increment financing to help in the clean up of infrastructure environmental issues. Mr. Bartlam responded that Agency funds could help with the clean up costs. REVIEW OF THE DRAFT ENVIRONMENTAL DOCUMENT According to the California Environmental Qualities Act (CEQA) whenever a public agency considers a development project, it must assess the environmental impacts of that project. The Redevelopment Plan was assessed at a broad base level. The document attempts to assess what the impact of carrying out the plan would be. The document is required for public review and comment for 45 days. The items required to be assessed include Land Use Impact, Noise, Air Quality, Biology, Traffic, Visual Impacts, and Wildlife. The impact must be identified, analyzed, and then mitigated to offset the negative impact that might occur. In the dedevelopment Plan case, it is a built environment, and the Agency isn't looking for a great wholesale change. Most of the Project Area has already been analyzed when the General Plan was done 10 years ago. Most of the impacts noted in the document were mitigable. These impacts can be dealt with through program implementation to be "Less than Significant." The "Air Quality" impact was the only item considered being a "Significant Unavoidable Impact." San Joaquin Valley is located in a non -attainment area. The air quality within the valley is below Federal standards. In order for the EIR to be certified and the Plan to move forward, the Council needs to make a specific finding relative to air quality impacts. There is nothing that can be done to offset the air quality condition. The finding will state the impact is significant; however it is unavoidable. After the finish of the public comment period (April 28`h), by law, the Agency is required to respond to any comments generated. Comments received and addressed will be complied with the draft EIR to become the final environmental report and will move onto the City Council for certification sometime in June 2002. A question came up regarding "traffic calming" measures. Mr. Bartlam responded that the idea of traffic calming is to try to get the neighborhood back to a neighbor as opposed to being a main thoroughfare. The City uses traffic measures such as landscaped medians and narrower streets to control traffic speeds. Lodi Avenue is in the Project Area, the rail road tracks are set to be removed and the street will be reconstructed with a possible landscaped median. Member Snyder mentioned the numerous accidents at the intersection of Lockeford and Cherokee Lane. Mr. Bartlam explained that the intersection was confusing and the turn lanes were not striped properly. He suggested that a left -turn arrow be installed at the intersection to help alleviate the problem. GENERAL COMMENTS OF PAC The next meeting of PAC will be May 21, 2002. Mr. Bartlam noted that at this meeting the Redevelopment Plan and Draft EIR will be wrapped up and packaged so that the committee can see how all the information fits together. He will be providing the Committee with a counter -document to support a document that was delivered to each member reflecting negativity towards redevelopment. ADJOURNMENT There being no further business the meeting was adjourned at 8:30 p.m. Respectively Submitted, Lisa Wagner Administrative Secretary Ee le Shila rides Between Redevelopment and Cults Personality changes Dramatic shifts of values or beliefs Inability to make decisions without consulting a cult i leader or guru ✓ New vocabulary j Sudden use of a new ideology to explain everything Black and white, simplistic reasoning Insistence that you must do what theyare doing ' Symptoms of Cult influence, by Brad Sagarki " httpJ/www.workingpsychology.00"vptJ 6f.b ml MORR'Conference ` Son Dkmo VEAV ._ Deprogramming the Cult to End Destructive Redevelopment Practices Activists have been responsible for abaiing destructive redevelopment proposals Including the public in private -public partnerships • Giving PACs more than a merely advisory role • Requiring the public to approve all redevelopment bonds by the same majority as for school bonds MORR Conference Findings from Los Altos Private -public partnerships exclude the public Redevelopment creates blight in order to fix it Redevelopment tends to benefit private partners and harm those whom it is touted as helping Decision -makers tend to reject data that disagree with their private partners' unsupported claims MORR Conference COMMENTARY TUW*, AM 23.2002 Redevelopment: It's too often misapplied California cities continue to embrace redevelopment as if there were no down- sides for city taxpayers. Redevelopment law allows cities to use eminent domain to acquire private properties and to float debt to pay for new subsidized retail and hotel projects. Much debate goes on about the use and abuse of eminent domain, and about redevelopment debt. Those debates and the examination of redevelopment agency finances need to continue. But there are other drawbacks to redevelopment, which often do not make it into the debate. For instance, last year the Legislature passed S.B. 975, which requires that prevailing wages - i.e., union wages - be paid on any private construction project that receives any type of subsidy or tax break. With the preponderance of redevelopment, which by its nature grants government privileges to anyone who builds within the rapidly expanding redevelopment zones, more private construction projects must pay higher wages. This means taxpayers must pay more to subsidize any sort of redevelopment deal and the state gets further ability to regulate private businesses. Another new law, S.B. 588, creates a government committee, union - dominated, empowered to look at the payrolls of companies involved in these public-private deals, with an eye toward catching any potential violations in the wage rates that are paid. Not only does the law give Big Brother an even more intrusive ability to monitor private companies, but it gives an interested party - organized labor - access to addresses of non-union employees for the purposes of union organizing. Non-union contractors feared union harassment of employees at home, but succeeded in assuring that at least the names and Social Security numbers of the non-union workers would be blacked out. State legislators say they have a right to impose these mandates when state money is involved, and it's hard to argue against that point. But with redevelopment becoming so pervasive, many more projects will be considered public. It's just another way that a seemingly helpful tool can be harmful. Sunday, March 24, 2002 WC The Star i � ` -z' COMMENTARY More. cities win han lose by sharing sales taxes MUNOM BILL: Dividing revenue based on housing construction, not just retail sales, makes sense. In a world where cities are strapped for money and houses are money - losers as tax producers, it's not surprising that everybody in Ventura County wants to play the sales tax game. Most cities in the county don't produce very much housing, but they're all jockeying to get more retail stores inside w�SIN their borders. The reason is simple: FRURW Cities get sales tax ♦ revenue based on dons where the stores are, not where the shoppers live. That's why you see so many stores lined up along "Sales Tax Canyon" on Highway 101. Every city wants to grab retail customers off the freeway. Darrell Steinberg, a Democratic assemblyman from Sacramento, wants to change the sales tax game so that cities focusing on retail sales get less money. and cities Mat fixv on people and housing get more. Steinberg's bill, AB 680, is the talk of the state Capitol. It would change the formula — for metropolitan Sacramento only — so that some sales tax is distributed based on population growth and housing construction, not just retail sales that occur in each jurisdiction. The idea of forcing cities to share sales tax revenue is usually political suicide — not just in Sacramento but everywhere else in the state, including Ventura County. Cities don't trust the state to keep its promises about financial matters, even if they would come out better as a result. And tax -rich cities have a lot of lobbying power and usually squash any tax -sharing schemes. But to everybody's surprise, Stemb wes bill is actually gig somewhere. Despite opposition from politicians in the Sacramento suburbs, AB 680 has passed the Assembly, It may not make it through the Senate, and even if it did, there's very little chance that Gov Gray Davis would sign such a controversial bill in an election yeah Nevertheless, Steinberg's persistence has put tax -sharing on the political radar screen — and it's lamely to stay there. Sooner or later, a bill requiring local governments to share sales taxes will wind up on the governor's desk. So, what does all this mean for cities in Ventura County? After all, the amount of sales tax money our cities gets is vastly different, ranging from 19 million Wyear far Thousand Oaks down to $500,000 a year for fort Hume m To test this out, Solimar Research Group analyzed what would happen if the Steinberg bill were applied to Ventura County. The Steinberg bill appfies only to future growth in sales tax revenue. For that money only, the bill essentially replaces the current system — giving all the money to the city where the retail transaction took place — with a different method One-third of the growth in future sales tax revenue is still given to cities based on where retail transactions take place. But one4hird would be given to cities based on their total population, and - the final third would be given to cities (according to the traditional retail sales formula) only if they meet certain regional housing targets. If they fall short of those targets, the money would be held back and used for countywide projects of various sorts. (Some in Sacramento are challenging the housing requirement, since it involves allocating local sales tax based on performance rather than a fixed formula.) In essence, then, Steinberg's idea provides cities with an incentive to generate more housing and more retail sales together. If their retail sales are increasing fast, they can still get most of the sales tax revenue — if they are also building more housing. And if they build How the Steinberg bill would affect Ventura County E Current system (Per capita sales tax revenue under ■ SteinbergProposal different scenarios) ■ No housing" Camarillo f 4 Fillmore + Moorpark Ojai Oxnard Port Hueneme San Buenaventura Sante Paula Simi Valley Thousand Oaks Unincorporated , 0 b 40 60 U Whirs 110 120 146 109 100 Source: Sohmair Reswrh Group calculations based on prawislons of AS 680, Cerisus data and Controller's Frnanclal Reports more housing, of course, their population will go up, meaning they'll get more of the funds allocated by population as well. In our analysis, we looked at how the Steinberg bill would have affected all of Ventura County's cities in the year.2000, assuming its provisions had been in place for 10 years. That means that all of the increase in sales tax in the county — a total. of $24 million, or a 45 percent increase — would have been allocated under the Steinberg formula. The chart accompanying this column shows the results. The chart shows how many sales tax dollars each city did receive under the current system, what they would have received under the Steinberg proposal assuming they hit the targets, and what they would have received under the Steinberg proposal if housing targets were not hit. Assuming every city meets the housing targets — that's the gray bar in the middle — almost every city wins under the Steinberg bill. The only cities that lose are Camarillo and Thousand Oaks, cities whose sales tax bases have mushroomed in the last 10 years. (For Oxnard, it's a wash.) Essentially, what happens under this scenario is that about $23 million out of a total pool of $77 million is taken away from Camarillo and Thousand Oaks and given to the other jurisdictions. The biggest winners are the county, which would get $900,000, and Ventura, which would get almost $600,000. If all the cities miss the housing target, obviously, it's a different story. Under this scenario, about $8 million is withheld from the cities. Under this scenario, by far the biggest laser is Thousand Oaks, which would see a loss of $4.6 million. Other major losers are Camarillo and Oxnard, which would each lose close to $2 million. The winners would be the county, which would gain $800,000, and Santa Paula, which would gain $200,000, as would Port Hueneme. Ventura and Fillmore are also winners. It's interesting to see that the Steinberg bill doesn't create a clear-cut set of winners and losers. Rather; different types of cities are affected differently. Really aggressive sales -tax cities with an upscale population — like Thousand Oaks and Camarillo — would be the biggest losers, but they can reduce their losses if they keep building housing. Older cities like Ventura, Santa Paula, Port Hueneme and Fillmore are winners no matter what because they are growing slowly in all ways — retail sales, housing and population — and the bulk of their tax base was built long ago. Cities like Oxnard, Moorpark and Sinn Valley fall in the middle: Their sales tax base has gown rapidly, but they are building housing and adding population even faster because of growing families. The Steinberg bill probably won't become law for Ventura County. But sooner or later, some change will oo= As our results show, there's no one - size fits -all answer for our communities because they're so different. Maybe our local politicians should get together and talk about the best way to split up the pie around here before Assemblyman Steinberg or someone else in Sacramento does it for them. — WsWiarn Fulton of lexhrsa is publ"w of tke California Plax"V & Dadopment Report and President of Sotaxar Research Group A short research report based on die. Steinberg a available at wwwsolunar His book, "Ike Rductant Metropolis, "wk eantaim a dkofff on Ventura County sales -tax wars, gray be purchased at unwa cy-droom. r rr h .w. .:.: .' r _ r fON: 4 + xox� �1�bYfF y rs.......... n/ k -: h .w. .:.: .' r _ f >?f f f r + f yp� k l liana Berliner Executive Summary ae• Eminent domain is the poor of government to force people from their family homes, to destroy their businesses. It is a despotic power, and America's Founders placed limits on the condemnation power in the Fifth Amendment to the U.S. Constitution. Governments may condemn only for "public use," as well as paying just compensation. All 50 state constitutions also limit condemnations to those for public use. Yet government increasingly uses the eminent domain power to condemn property for private uses. Acting more like real estate agents than public servants, govern- ment agencies form unholy alliances with developers in order to force the rightful owners off of their property. In this report, we bring together the 10 most egregious uses of eminent domain for private purposes from 1998 to 2001. These 10 are just the tip of an iceberg. We selected them from more than 100 that have come to our atten- tion, yet there are many others we do not even know about. Indeed, in 1998, the head of the Council for Urban Economic Development estimated that cities undertake roughly 80 projects per year for private businesses that involve condemnations,' and each project could involve more than one condemnation. Many owners cave in to pres- sure and settle. Others resist condemnation in court, but the legal decisions are unpublished. Still others receive minimal news coverage or coverage only from local papers that do not survive in electronic form. For example, we could find few details on a mobile home park for fixed4ncome senior citizens that was condemned for a private mall project that fell through in Garden Grove, California.2 We are thus regretfully certain that there are many other con- demnations from this time period that are as offensive and improper as the ones listed in this report. These ten low points of eminent domain abuse include: s Removing an entire neighborhood and the condemnation of homes for a privately owned and operated office park and other, unspecified uses to complement a nearby Pfizer facility in New London, Connecticut • Approving the condemnation of more than 1,700 buildings and the dislocation of more than 5,000 residents for private commercial and industrial development in Riviera Beach, Florida • A government agency collecting a $56,500 bounty for condemning land in East St Louis, Illinois, to give to a neighboring racetrack for parking • Replacing a less-expensive car dealership with a BMW dealership in Merriam, Kansas • Condemning a building in Boston just to help the owner break his leases so that the property could be used for a new luxury hotel • Seizing the homes of elderly homeowners in Mississippi and forcing them and their extended families to move in order to transfer the land to Nissan for a new, privately owned car manufacturing plant, despite the fact that the land is not even needed for the project • Taking the building of an elderly widow for casino parking in Las Vegas, claiming it was blighted but without ever even looking at the building • Improperly denying building permits to a church in New Cassel, New York, then condemning the property for private retail as soon as it looked like the church would begin construction • Condemning 83 homes for a new Chrysler plant in Toledo, Ohio, that was supposed to bring jobs but ended up employing less than half the projected number because it is fully automated • Forcing two families (along with their neighbors) to move for a private mail expansion in Hurst, Texas, while spouses were dying of cancer I Dean Starkman, "Take and Give: Condemnation is Used to Hand One Business Property of Mother," Wall Skeet Journal, Dec. 2, 1998, at Al. 2 Tiffany Horan, 1400 million mall; theme park floated," Orange County Register, March 7, 1998, at Al; Jon Hall, "There Goes the Neighborhoods," OC Weekty, March 6, 1998. iiovt:�!Keri'r EMINENT DON DOMAIN March 2002 1 2 March 2002 New London, Connecticut one The New London Development Corporation (NLDC), a private nonprofit organization, has been trying for more than three years to take the property of seven homeowners in the Fort Trumbull area of New London in order to construct privately owned office buildings and other, unspecified uses, that will complement the new Pfizer global research facility nearby.3 The Fort Trumbull neighborhood was a close-knit community of approximately 80 homes and a few small businesses. Among those slated for condemnation are the homes of the Derys and Cristofaros. Wilhelmina Dery is 83 years old and lives in the house where she was born. Her son, daughter-in-law, and their children live next door. In comparison, the Cristofaro's mere 40 year tenure seems short. This will be the second Cristofaro family home condemned for a private redevelopment project. The first one was supposedly condemned for a seawall but in fact became part of an office com- plex. When the family moved, they brought the trees that they had planted next to their old home and have grown a beautiful garden around them at their Fort Trumbull home.4 3 Laura Mansnerus, 'Testing Limits of Land Use as Owners Refuse to Let Go," The New York Times, July 23, 2001, at 61. 4 Kathleen Edgecomb, "Fat residents: 'You can't call a home a home here'," The Day, Dec. 21, 2000. 5 lzaskun E. Larraneta, "Neer London, Conn., Development Group Accused of Pushing too Hard for Pfizer," The Day, Aug. 14, 2001. 6 David Herszenhom, "Residents of New London Go to Court, Saying Project Puts Profit Before Homes," The New York Times, Dec. 21, 2000, at 65; Isaskun Larraneta, "Eminent domain trial resumes today," Theft.com, Aug. 13, 2001. t v61RK=T EMWI DOseIAI� The former head of theNLDC, Across from the Fort Trumbull residential community was an aban- Claire Gaudiani, doned U.S. Naval research facility. No one objected to the replacement of the abandoned facility with a luxury hotel (for visitors to Pfizer) and upscale explained "we all have to housing (for Pfizer employees). They only objected when it became clear sacrifice." It Seems she that the NLDC planned to replace their working-class, waterfront communi- meant that the home- ty with offices for businesses related to Pfizer. The NLDC added insult to owners would sacrifice, injury by exempting the Italian Dramatic Club, a politically well-connected while the private devel- membership club, while razing every home around it,5 open in the project would Rather than doing the condemnations itself, the City of New London benefit• delegated its eminent domain power to the NLDC, a private organization, The former head of the NLDC, Claire Caudiani, explained "we all have to sacrifice." It seems she meant that the homeowners would sacrifice, while the private developer in the project would benefit Seven homeown- ers filed suit, and the case went to trial in mid -2001.6 As of March 1, 2002, no decision has been issued. 3 Laura Mansnerus, 'Testing Limits of Land Use as Owners Refuse to Let Go," The New York Times, July 23, 2001, at 61. 4 Kathleen Edgecomb, "Fat residents: 'You can't call a home a home here'," The Day, Dec. 21, 2000. 5 lzaskun E. Larraneta, "Neer London, Conn., Development Group Accused of Pushing too Hard for Pfizer," The Day, Aug. 14, 2001. 6 David Herszenhom, "Residents of New London Go to Court, Saying Project Puts Profit Before Homes," The New York Times, Dec. 21, 2000, at 65; Isaskun Larraneta, "Eminent domain trial resumes today," Theft.com, Aug. 13, 2001. t v61RK=T EMWI DOseIAI� Riviera Bead, Florida now City Council members voted unanimously to approve a $1.25 billion redevelopment plan with the authori- ty to use eminent domain to condemn at least 1,700 houses and apartments and dislocate 5,100 people. The city will then take the property and sell the land to commercial yachting, shipping, and tourism compa- nies. The plan also would move Route 1 and replace a city park with an enlarged harbor. The proposal still needs the state's approval. If it occurs, it will be one of the largest exercis- City Council members es of eminent domain in the United States.7 voted unanimously to Many of the residents are descendants of Bahamian conch fishing fami- approve a $1.25 billion lies. They, as well as others, do not want to give up their homes.$ Riviera redevelopment plan with Beach is one of the last remaining areas for affordable waterfront homes in the authority to use eml- Florida. As many as 150 boat -related businesses could be put out of busi- nent domain to condemn ness. The Maritime Industries Association of Palm Beach County has at least 1,700 houses expressed concerns, after being contacted by one of the potential condem and apartments and dig- pees, Martin Murphy of Cracker Boy Boat Works. His boating service has locate 5,100 people. been there for decades and cannot relocate. The American Indian Movement also is keeping an eye on the project, because some of the development will take place on the remains of an ancient village. Also scheduled for demolition as part of the plan is Riviera Beach's last redevelopment project. After putting in nearly $1.9 million in public money, the city has decided the commercial development at Spanish Courts is a flop. According to city officials, it just wasn't a big enough project. According to Riviera Beach officials, if they spend much more money and displace thousands of residents, then the project will really take off. 10 7 Scott McCabe, "Residents Vow to Fight Riviera Pian," Palm Beach Post, Dec. 17, 2001, at 1 B. 8 ld.; Scott McCabe, "Riviera Approves waterfront Project,' Palm Beach Post, Dec. 20, 2001, at 1B. 9 Jim Di Paola, "The Path of Progress", CHAink Online, Jan. 30, 2002. 10 Scott McCabe, "Riviera Beach Set to Say 'Adios' to Spanish Courts," Palm Beach Post, Feb. 19, 2002. at IA. s0VOW*" r EMINENT DOMAIN March 2002 3 4 March 2002 East SL LAt11S, Illinois ■■ In 1999, the Southwestern Illinois Development Authority (SWIDA) began the process of condemning 148 acres belonging to National City Environmental and reselling it to Gateway International Motorsports Corp. for a parking lot to accommodate visitors to large race events. Gateway had previously tried to purchase the property, but the owner didn't want to sell," So Gateway went to the offices of SWIDA. It picked up an application for SWIDA to use eminent domain and paid the $2,500 application fee for condemnation for "private use." 12 (SWIDA's lawyers must have for- gotten to tell the agency that property may be condemned only for "public use" under the U.S. and Illinois constitutions.) For private condemnation, SWIDA requires the private beneficiary to reimburse SWIDA ibr the value of the condemned property and also charges a percentage as a commission. 13 For the Gateway con- demnation, SWIDA would receive $56,500,14 more than its appropriated budget that year. SWIDA officials also got free tickets to Gateway events. There was no pretense that the property was blighted. It was just property that Gateway wanted, that it wasn't able to buy, and that SWIDA procured for it for a substantial fee. The nest SWIDA could do was claim that the condemnation served a public purpose because Gateway would bring money into the city through its racing events. The owner was not convinced and opposed the condemnation in court. The case has gone through a series of reversals. First, the trial court approved the condemnation, but the Illinois Appellate Court rejected it in stinging language.15 The Illinois Supreme Court then reversed again, 43, in sharply divided opinions.ls Within two months, the Illinois Supreme Court granted rehearing, agreeing to reconsider the case.17 A decision is still pending as of March 1, 2002. 11 Daniel C. Vock, "Quick Take OK For Commercial Use: Court," Chicago Law Bulletin. April 19, 2001. at p.l. 12 Southwestern Illinois Dev. Auth. v. National City Environmental, LLC, 2001 III. LEXIS 478, *4 (III. Apr. 19, 2001). 13 Id. at *4 and *5. 14 grief of Institute for Justice and The Heartland Institute Amici Curiae, Southwestern Illinois Dev. Auth. v. National City Environmental, LLC, Docket No. 87809, Supreme Court of Illinois. 15 Southwestern Illinois Dev. Auth. v. National City Environmental, LLC, 710 N.E.2d 896 (III. 1999). 16 Mike Fitzgerald, "Illinois Supreme Court Upholds Seizure of Land for Motorsports Firm's Parking," Belleville News Democraf; April 20, 2001; Southwestern Illinois Dev. Auth. v. National City Environmental, LLC, 2001 Ill. LEXIS 478 (til. Apr. 19, 2001). 17 "Court Will Rehear Case Involving Taking Land For Raceway," The Associated Press State & Local Wire, June 4, 2001. iativm----------W - EMIRNT DOMAIN Merriam, Kansas In 1998, the City of Merriam condemned William Gross's property, which he leased to a used car dealer- ship, so that Gross's neighbor, a BMW dealership, could expand.18 The city sold Gross's property to Baron's BMW for the same price they paid Gross and gave Baron $1.2 million in taxancrement financing to build a new BMW dealership and add a Volkswagen dealership. The City Council The City Council said the said the project served the public interest because the city would make project served the public $500,000 per year in sales tax revenues from the BMW and Volkswagen interest because the city dealerships. would make $500,000 This is hardly Kansas' first foray into condemnations for private parties. per year in sales tax rev- In 1998, the state took 150 homes for the Kansas International Speedway, enues from the BMW and the Kansas Supreme Court ruled in favor of the takings when 30 and Volkswagen dealer- homeowners tried to fight.19 ships" As if it weren't bad enough to replace a used car dealership with a new car dealership, Gross had proposed using the site for a Mitsubishi dealer- ship, which would have raised the site's yearly tax revenue from $40,000 to $150,000. The city refused. It wanted the BMWs. Gross depended on the income from his dealership for his retirement income.Z0 He lost his property and his business, but the citizens of Merriam were less than pleased. At the next election, vot- ers responded by ousting half of the city council.21 18 Dean Starkman, "Take and Give: Condemnation is Used to Hand One Business Property of Another," Wall Street Journal, Dec. 12, 1998, at Al. i9 John T. Dauner, & Steve Nicely, "Speedway Wins High -Court Test; Ruling Approves Condemnation Powers, 125 Percent Valuation," The Kansas City Star, July 11, 1998, at p. Al; State ex rel. Tomasic v. The Unified Government of Wyandotte County/Kansas City, Kansas, 962 P.2d 543, 554 (Kan. 1998). 20 Tim Baxter. "Court Sets Pace on Baron Case; Setting Value on Land Being Condemned Could Take Months," The Kansas City Star, Sept 5, 1998, at p. 1. 21 Martin Wooster, "Government as Land -Grabber," Arnwican Enterprise, June 1, 2001, at p. 57. law 6*veRx ._.-- EI 11900MAIN March 2002 5 Boston, Massachusetts man The Boston Redevelopment Authority JBRA) plans to seize a 14 -story, 110 -year-old granite and sandstone Ames Building, in order to break the leases with the building's tenants. The Intercontinental Hotel bought the property in 1998 and wants to convert the building into a boutique hotel.22 Inconveniently, the building happened to have tenants. Two of them—the D'Angelo sandwich shop and the Taylor & Partners architectur- al design firm --didn't want to move. D'Angelo's lease ran until 2012, and Taylor's until 2003.23 In other words, the landlord wants to get out of its longterm lease agreements. Typically, such disputes can be han- dled by buying out the tenant, simply waiting until the lease is up, or paying whatever penalties are stated in the lease agreement itself. Eventually the architectural firm settled, but the sandwich shop brought suit. But the owner has politically powerful friends and has managed to get the government to intervene in this utterly private dispute.za So the BRA is condemning the building, which automatically breaks the leases. That way, the owner won't have to pay the penalties or reimburse the tenants for what they lose. instead, the owner gets off nearly scot-free, and then the BRA will transfer the property right back to the same owner, minus those pesky leases, for development as the Intercontinental Hotel. Tenants fare particularly poorly in condemnations. Business tenants usually expend a significant amount of money customizing their space, installing fixtures, and building their business in that location. When a condemnation occurs, leases are broken, and the tenants get little or no reimbursement for their losses and relocation expenses. Many, if not most, condemned businesses never reopen. 22 Sarah Schweitzer, "BRA Plan to Seize Building Spurs Suit," The Boston Globe, July 28, 2001, at Al. 23 Id. 24 Paula Restuccia, "Hub Zoning Code Causes Contention," The Boston Herald, Jan. 25, 2002, at RE39. 6 March 2002 EMINENTADOMAIN Canton, Mississippi Mississippi would not ordinarily be a contender for the Top Ten abusers of eminent domain. Up until 2000, Mississippi almost never condemned property for the benefit of private parties. However, in 2000, Mississippi passed the "Nissan Act." It authorized the State to pour money and incentives into a future Nissan manufacturing facility. And it gave the Mississippi Major Economic impact Authority (MMEIA) the power to condemn property for the new facility.25 After pressuring most owners to sell, the MMEIA condemned three homes in 2001 in order to transfer the land to Nissan. Andrew Archie is in his late 60s, diabetic, and in poor health. He has lived on the land since he was eight years old. He lives there surrounded by his wife, chil- But the MMEIA wants to dren, and other family members. His children, including Lonzo Archie, save face with future who owns one of the other homes being condemned, have never lived any developers, so that the where else. The condemnation will require 15 Archie family members to ' move.26 next time it promises to take someone's home for The MMEIA also is condemning the home of Percy and Minnie Bouldin, private development, the who have lived in their home for more than 40 years and raised their 13 developer will believe children there. Percy did much of the construction of their house with his the MMEIA will follow own hands. through' Amazingly, both Nissan and the former head of the MMEIA have publicly admitted that the project will go forward even if Nissan can't get the Archie and Bouldin homesteads. The three properties constitute a tiny portion of the overall area -28 acres at the southern end of the project out of 1,400 acres. But the MMEIA wants to save face with future developers, so that the next time it promises to take someone's home for private development, the developer will believe the MMEIA will follow through.27 The Archies and Bouldins are close friends, and both families challenged the constitutionality of con- demning their homes. The trial court ruled against them on July 26, 2001, but the Mississippi Supreme Court stayed the condemnations until A could hear the case in mid -2002.28 25 See Record in Percy Lee Bouldin and Minnie Pearl Bouldin, at al., v. Mississippi Major Economic Impact Autha *,, Case No. 2001 -CA -01296 (Mississippi Supreme Court). 26 Timothy R. Brown, "State files for eminent domain to grab land for Nissan Project," Associated Press, Feb. 9, 2001. 27 David Firestone, 'Black Landowners Hold Ground in Mississippi," The New York Times, Sept. 10, 2001. 28 Heath A. Smith, "Nissan Land Hearings Delayed," The Clarion -Ledger, Oct. 1, 2001. EMINNDOMAIN March 2002 Las Vegas, Nevada When John Pappas died, he left his widow, Carol, a commercial building in downtown Las Vegas, intend- ing that its rents would provide for her retirement.29 On December 8, 1993, the Las Vegas Redevelopment Agency served Mrs. Pappas with notice that it was condemning her properties. The purpose of the condem- nation was to transfer the land to a consortium of eight casinos for construction of a parking garage.30 Among the 15 legal documents she received that day was one stating that she had 30 days to respond. Unbeknownst to Mrs. Pappas, however, there was a hearing in only seven days to decide whether the agency would get immediate possession of the property. Mrs. Pappas did not know about the hearing and did not attend. The Judge granted title to the agency, and the buildings were promptly demolished. Later, the Judge recused himself because he had invested in one of the casinos that was to acquire the property. The case has been in litigation ever since. In 1996, a district court judge ruled that the condemnations were unconstitutional and illegal. In a harshly worded 65 -page opinion, the judge found that the agency had "set itself up as an entity only unto itself." The court found that the agency ignored many statutes and pro- cedures. For example, the supposed justification for the condemnation was that the area was blighted. However, the surveys of the area revealed no blight, and in fact, no one had even surveyed Mrs. Pappas' block.31 On March 29, 2000, the Nevada Supreme Court threw out the city's second too -early appeal and warned the city's attorneys against providing further "misleading" information.32 After a series of judges recused themselves for accepting campaign contributions from casino interests, the Nevada Supreme Court ruled that campaign contributions did not disqualify judges.33 The case then returned to the trial courts for vari- ous further proceedings on other issues. It is finally heading up to the Nevada Supreme Court and will prob- ably be heard in 2002. 29 "The Pappas Dispute," Las Vegas ReviewJkurnal, Sept. 3, 2000, at 2D. 30 Steve Sebelius, "It Was Worth Trying, Anyway," Las Vegas ReviewJoumal, Aug. 27, 2000, at 11 31 City of Las Vegas Downtown Redevelopment Agency v. Pappas, Case No. A327519, Opinion on Motion to Dismiss (July 3, 1996). Many of the facts in this section are taken from the court's ruling. 32 Mike Zapler, "Settlement talks between city, family stalled," Las Vegas RWew-Journal, April 11, 2000, at I B; "Misleading the Court," Las Vegas Review -Journal, April 11, 2000, p. 68. 33 Ed Vogel, "State's high court rules judge can stay on redevelopment case," Las Vegas Review;loumal, Aug. 19, 20DO at AB; City of Las Vegas Downtown Redevelopment Agency v. Eighth Judicial District Court (Nev. 2000). - ...__ . ,rases`. co�BRjC1 ----------- The ., I& DO N Mardi 2W`L New Cassel, New York St. Luke's Pentecostal Church, led by Pastor Fred Jenkins, had been saving for more than a decade to purchase property and move out of the rented basement where it holds services. It bought a piece of prop- erty on Prospect Avenue to build a permanent home for the congregation.34 Before purchasing the property, it obtained a list of exactly what it would need to do to get all the permits for the building. After the pur- chase, the building department denied the permits for insufficient parking, an issue never mentioned before. After successful litigation to acquire the parking variance, the North Hempstead Community Development Agency condemned the property. Unbeknownst to both St. Luke's and the previous owners, the building had been slated for condemnation. No one had bothered to tell St. Luke's during the discussions about the building permits or when it was struggling to get the parking variance. The head of the agency even testified against the parking variance but never mentioned that St. Luke's was wast- When astWhen St. Luke's tried to ing its time and money because he planned to condemn the property. object to the condemn- tion, the NHCDA argued, St. Luke's conducts extensive community outreach, including paying for members funerals, helping the homeless, providing heating oil to needy successfully, that St. families, and it had planned to open both a church and daycare facility on Luke's had lost its oppor- the new site. The church property was condemned for private retail devel- tunity to object in 1994, opment. before it had even bought ther0 When St. Luke's tried to object to the condemnation, the NHCDA argued, p successfully, that St. Luke's had lost its opportunity to object in 1994, before it had even bought the property. New York has a 30 -day window for objecting to condemnations, and the window happens right after the agency approves a redevelopment plan, often long before the condemnation actually takes place. After title passed to the agency, St. Luke's discov- ered that the time limit had never applied, because the condemnation was under an exception. Now St. Luke's is trying to get the first court to return the property.35 Other owners have been tripped up by New York's requirement that future condemnations be challenged before they occur. Bill Brody's commercial buildings in Port Chester, which he painstakingly renovated over six years, have been condemned for a parking lot for a Stop N' Shop,36 And William and Bill Minnich's fami- ly woodworking business will be condemned for parking for a Home Depot in Harlern.37 Both owners would have challenged the condemnation but did not know about New York's procedures and missed the brief win- dow. They brought a federal lawsuit challenging these procedures, but it was dismissed and is now on appeal.38 34 Victor Manuel Ramos, "In North Hempstead: A Spiritual Homecoming Deferred; Redevelopment claims dreams of church's build- ing," Newsday, Feb. 4, 2001. 35 Mami Soipcoff, "North Hempstead Bulldozes Constitutional Rights The Westbury Times, Feb. 22, 2002. 36 "How the eminent domain bulldozer created a private -property backlash," Goveming, Jan. 2001, at 26; Mami Soupcoff. "NY Gov't Land Grab," New York Post, December 18, 2000; Len Miniace, "U.S. judge extends ban on condemning property," The Jo=al News, Dec. 16, 2000. 37 J.A. Lobbia, 'East Harlem Suit Challenges Eminent Domain Property Rights and Wrongs," Village Voice, Dec, 26, 1999. 38 Minnieh v. Gargano. Case No. 01-9219 (2d Cir., filed Oct. 18, 2001). itL''-'--- EMIONT DOMAIN March 2002 9 Toledo, Ohio ■■ In 1999, the city of Toledo condemned 83 homes to make room for expansion of a Daimler -Chrysler Jeep manufacturing plant Even though the homes were well-maintained, Toledo declared the area to be a slum. Threatening to leave town otherwise, Chrysler asked for and received $232 million in state and municipal aid for its new plant Using In 1999, the city of Toledo $28.8 million loaned to the city by HUD, Toledo paid for relocation of the condemned 83 homes to property owners and used eminent domain to acquire the homes of make room for expansion those who resisted its offers. Toledo had hoped to repay the loan through increased tax revenue from the expected 4,900 -person Chrysler of a DaimlerChrysler Jeep workforce. However, the new plant that Jeep built was fully automated, manufacturing plant. assembling cars by laser -guided robots without much human participa- Even though the homes tion. in total, the new plant employs only 2,100 workers.39 Were well-maintained, Other Ohio cities are anxious to get on the eminent domain bandwag- Toledo declared the area on. The city of Akron recently proposed an urban renewal project in East to be a slum. Akron that would condemn houses and businesses for the benefit of a Mercedes-Benz deaiership.40 One of the homes is owned by a Korean War veteran and his wife, who have lived there for 30 years. Nearby Richfield also is in the process of condemning homes and businesses for transfer to a private developer to develop commercial propelty.41 39 Gideon Kanner, "The New Robber Sams," National L.J., May 21, 2001, at A19. 40 Julie Wallace, "Residents Blast Plan for Ganley Expansion," Akron Beacon-Joumal, Dec. 11, 2001, at D1; Editorial, "Should City Aid Land Deals for Private Business?," Akron Beacon Journal, Nov. 28, 2001, at A15. 41 Resolution No. 103.2001 of the Council of the Village of Richfield, Summit County, State of Ohio (passed on Oct. 2, 2001). it64ff>Riii'�`-' 20 March 2002 EMINENT DOMAIN Hurst Texas The city of Hurst, Texas, agreed to let its largest taxpayer, a real estate company, expand its North East Mall and thus increase its sales and property tax revenue. There happened to be 127 homes in the way, but that didn't deter the City. Under the threat of eminent domain, almost all the homeowners sold their proper- ty. Ten did not, and brought a Iawsuit.42 The Lopez, Duval, Pmhs, and Laue families had each owned their homes for approximately 30 years. Others had been there for more than a In court, the owners pre- decade.43 sented evidence that the A Texas trial judge refused to stay the condemnations while the suit was land surveyor who ongoing, so the residents lost their homes 44 Leonard Prohs had to move designed the roads for while his wife was in the hospital with brain cancer.45 She died only five the map had been told days after their house was demolished. Phyllis Duval's husband also was to change the path of in the hospital with cancer at the time they were required to move. He died one road to run through one month after the demolition. Of the ten couples, three spouses died eight of the houses of and four others suffered heart attacks during the dispute and litigation.46 the owners challenging In court, the owners presented evidence that the land surveyor who the condemnations. designed the roads for the mall had been told to change the path of one road to run through eight of the houses of the owners challenging the con- demnations.47 The case ground on through litigation, and with no final decision ever issued, the owners finally settled in June 2000. Until the settlement, they had received no compensation at all for the loss of their homes. All are still upset at what the city did to them.48 42 "10 Residents Under Siege by Proposal for Big Mali," New York Times, May 18, 1997, at A16. 43 Jennifer Packer, "Fighting for home; settlement allows mall expansion, to the sorrow of residents," Dallas Morning News, July 2, 2000, at IS. 44 "Texas Judge Clears Way for Expansion of Mall," New York Times, May 24, 1997, at A9. 45 Eric Felten, "Kiss Your House Good -Bye," Reader's Digest, March 2001. 46 Jennifer Paciaer, "Fighting for home," supra fn. 43. 47 Kendall Anderson, "Hurst accused of altering road plan; City denies changing course to allow for condemnations," Dallas Moming News, June 26, 1997, at 1G. 48 Jennifer Packer, "Fighting for home," supra fn. 43. �venNx>tan"�Rr; EMINENT D4MAiiV March 2002 11 Conclusion Most people would be shocked to discover that governments across the nation are taking individuals' homes only to transfer that property to a favored business or neighbor—or that businesses are often being con- demned so that another business can take their property and make a larger profit. Yet in the past few years, governments across the country have taken private homes and businesses to replace them with other pri- vately owned single businesses, malls, industrial developments and upscale housing. These "Top Ten" abus- es are just a fraction of the many abuses of eminent domain throughout the nation. Under our Constitution, property rights are not conditioned on the whim of those with financial and political influence. Nor should they be sacrificed just so municipalities can put more money in their coffers. The time has come to. end the abuse of eminent domain for the benefit of private parties, and the Castle Coalition will be at the center of a nationwide effort to resist the types of abuses catalogued in this report. gni ?�?'T-T� -- i:2 March 2002 EMiN�NT DOMAIN The Castle Coalition is a nationwide network of property owners and community activists that seeks to prevent government and private parties from taking private property through eminent domain for private use. Although the federal and state constitutions limit condemnations to "public use," governments at every level increasingly use condemna- tions to benefit politically and financially powerful private parties. This report, The Ten Worst Abuses of Eminent Domain, 1998-2002, by Institute for Justice Senior Attorney Dana Berliner, describes 10 of the most egregious eminent domain abuses in recent years. This repos: will be followed by a report describing the more than 100 recent uses of eminent domain for private parties. The organization takes its name from the principle that everyone's home (or business) should be their castle -a place where they are safe and free from abusive government power. The Castle Coalition is a project of the Institute for Justice. For more information, visit www.casfecoaltion.org. Citizens Fighting Eminent Domain Abuse www.CasdeC*alition.org