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HomeMy WebLinkAboutReso RDA 2-2003RESOLUTION NO. 02-2003 REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOL-jTION ADOPTING THE AMENDED IMPLEMENTATION PLAN FOX THE CITY'S FOUR REDEVELOPMENT PROJECT AREAS WHEREAS, :_t is recommended that the Redevelopment Agency Board adopt an Amended Implementation Plan ?or the City's four Redevelopment Project Areas, as attached hereto as Exhibit A; and WHEREAS, the Implementation Plan outlines the proposed program of revitalization, economic development, and affordable housing activities of the South San Francisco Redevelopment Agency for the required five year planning period, which includes fiscal years 1999/00 to 2003/04; and WHEREAS, -I_e principal objective of the Plan is to establish a program that will link the Agency's activities d'.rectly with the elimination of blight; and WHEREAS, the Agency is required by California Law to conduct a review of its Plan during a mid term update; and WHEREAS, revisions reflect the Agency's accomplishments during the first two years; and WHEREAS, changes previously adopted in specific project area; and WHEREAS, goals with respect to each of the project areas; and WHEREAS, -t.e Plan was noticed in accordance with State Law and the steps required for adoption have been completed. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco -t_at the Redevelopment Agency hereby approves the adoption of an Amended Implementation Plan for the City's four Redevelopment Project Areas. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Ager_cy of the City of South San Francisco at a regular meeting held on the 26th of March 2003 by the tbllowing vote: AYES: Boardrnembers Joseph A. Femekes, Richard A. Garbarino and Raymond L. Green, Vice-Chair Karyl Matsumoto and Chairman Pedro Gonzalez NOES: None. ABSTAIN: None ABSENT: None ATTEST: , ,,~,_ ~ , Clerk EXHIBIT A Mid-Term Review and Amendment of the FIVE YEAR IMPLEMENTATION PLAN CITY OF SOUTH SAN FRANCISCO REDEVELOPMF~NT PROJECT FEBRUARY 2003 CITY OF SOUTH SAN FRANCISCO REDEVELOPMF~NT AGENCY O0 03 TABLE OF CONTENTS Implementation Plan City of South San Francisco Redevelopment Project INTRODUCe[ION ...................................................................................... I-1 ORGANIZATION ........................................................ I - 1 INTERPRETATION ...................................................... I- 2 II. A. B. C. D. E. F. DOWNTOWN/CENTRAl, PROJECT AREA ...................................... DESCRIPTION OF REDEVELOPMENT PROJECT AREA ........................... PROJECT AREA GOALS & OBJECTIVES ...................................... HISTORICAL AC_~VITIES & AGENCY ACCOMPLISHMENTS ...................... FIVE YEAR PLANNING PERIOD REVENUES ................................. PROPOSED FIVE Y~2AR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES LINKAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES IH. A. B. C. D. E. F. EL CAMINO CORRIDOR PROJECT AREA ................................ DESCRIPTION OF REDEVELOPMENT PROJECT AREA .......................... PROJECT AREA GOALS & OBJECTIVES ..................................... HISTORICAL ACTIVITIES & AGENCY ACCOMPLISHMENTS ..................... FIVE YEAR PLANNING PERIOD REVENUES ................................. PROPOSED FIVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES LINKAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES A. B. C. D. E. GATEWAY ~ ?..-tOJECT AREA ............................................................. IV-1 DESCRIPTION OF REDEVELOPMENT PROJECT AREA ........................... IV-1 PROJECT AREA GCALS & OBJEcTIVEs ...................................... IV-4 HISTORICAL ACTIVITIES & AGENCY ACCOMPLISHMENTS ...................... Iv-5 FIVE YEAR PLANN-AXIG PERIOD REVENUES ................................... XV-8 PROPOSED FIVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDrrURES ...... Iv- 9 South San Francisco Redevelopment Agency 1999 Five Year Implemeritation Plan 2002 Mid-Term Update 00 04 A. B. C. D. E. F. VI. A. B. C. Do Eo LINKAGE BETW-~qz'2q PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES ..... IV-10 SHEARWA~. ?~gR PROJECT AREA ........................................................ V-1 DESCRIPTION OF ~-'LEDEVELOPMENT PROJECT AREA ............................ V- :[ PROJECT AREA GOALS & OBJECTIVES ....................................... V-3 HISTORICAL ACTIVITIES & AGENCY ACCOMPLISHMENTS ....................... V-4 FIVE YEAR PLA_VNING PERIOD REVENUES ................................... V-? PROPOSED FIVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES ....... V-7 LINKAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES ....... V- @ AFFORDAB-LE HOUSING ACTIVITIES ................ : ......................... VI-1 IMPLEMENTATION PLAN REQUIREMENTS: HOUSING ACTIVITIES ................. v'r-1 MAJOR STATUTOEY PROVISIONS OF CRL FOR AFFORDABLE HOUSING ............ VI- ~_ AFFORDABLE HOUSING PRODUCTION (INCLUSIONARY) OBLIGATIONS- DOWNTOWN/CENZ2RAL PROJECT AREA ..................................... Vt-? AFFORDABLE HOUSING PRODUCTION (INCLUSIONARY) OBLIGATIONS- EL CAMINO CORRIDOR PROJECT AREA ............................................. Vt-14 POTENTIAL OPPORTUNITIES FOR HOUSING PRODUCTION IN THE REDEVELOPMENT PROJECT AREAS ...................................................... vi-2 0 GOALS, OBJECTIVES AND PROGRAMS ..................................... Vt-2 2 HOUSING SET-ASIDE FUND ............................................. VI-2 ? FIVE YEAR PRODUCTION GOALS ......................................... v I- 3 0 South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2002 Mid-Term Update 00 .?ABLE OF CONTENTS (CONTINUED) LiSt Of Figures and Tables FIGURES FIGURE II- 1 FIGURE III- 1 FIGURE IV- 1 FIGURE V- 1 TABLES TABLE II- 1 TABLE II-2 TABLE 1/-3 TABLE II-4 TABLE II-5 TABLE III-1 TABLE III-2 TABLE III-3 TABLE III-4 TABLE III-5 TABLE IV- 1 TABLE IV-2 TABLE IV-3 TABLE IV-4 TABLE IV-5 TABLE V- 1 TABLE V-2 TABLE V-3 TABLE V-4 TABLE V-5 TABLE VI-1 TABLE VI-2 TABLE VI-3 TABLE VI-4 TABLE VI-5 TABLE VI-6 TABLE VI-7 TABLE VI-8 TABLE VI-9 TABLE VI-10 TABLE VI- 11 DOWTOWN/CENTRAL REDEVELOPMENT PROJECT AREA MAP ............. 11- 2 EL CAMLNO CORRIDOR REDEVELOPMENT PROJECT AREA MAP ........... t 11- 2 GATEWAY REDEVELOPMENT PROJECT AREA MAP ...................... 11/-3 SHEARWATER REDEVELOPMENT PROJECT AREA MAP ........ I ............ V- 2 SUMMARY DESCRIPTION OF PROJECT AREA ' 11-3. NON-HOUSING PROGRAM ACTIVITIES ..... i[][i]iii]i[iii]i]i]]]ii]] ]11-6 CROSSWALK BETWEEN REDEVELOPMENT GOALS AND PROGRAM ACTIVITIES~.RROR ! SUMMARY OF TAX INCREMENT PROJECTIONS OVER THE FIVE PLANNING PERIOD .............................................. I I- 11 PROPOSED NON-HOUSING PROGRAM ACTIVITIES ...................... I I- 12 SUMMARY DESCRIPTION OF PROJECT AREA AND PROPOSED ~MENT . I I I-3 NON-HOUS lNG PROGRAM ACTIVITIES ............................... I I 1-5 CROSSWAI~K BETWEEN REDEVELOPMENT GOALS AND PROGRAM ACTIVITIES I I I - 6 SUMMARY OF TAX INCREMENT PROJECTIONS OVER THE FIVE YEAR PLANNING PERIOD .................................... I PROPOSED NON-HOUSING PROGRAM ACTIVITIES ..................... I I I- 10 SUMMARY DESCRIPTION OF PROJECT AREA ........................... IV-2 NON-HOUSING PROGRAM ACTIVITIES ................................ Iv- 5 CROSSWALK BETWEEN REDEVELOPMENT GOALS AND PROGRAM ACTIVITIES GATEWAY PROJECT AREA ...................... IV- 6 SUIvIMARY OF TAX INCREMENT PROJECTIONS OVER THE FIVE YEAR PLANNING PERIOD ..................................... PROPOSED NON-HOUSING PROGRAM ACTIVITIES ....................... Iv- SUMMARY DESCRIPTION OF PROJECT AREA ............................ V- NON-HOUSING PROGRAM ACTIVITIES ................................. v- 4 CROSSWALK BETWEEN REDEVELOPMENT GOALS AND PROGRAM ACTMTIES. V-5 SUMMARY OF TAX INCREMENT PROJECTIONS OVER THE FIVE YEAR PLANNING PERIOD ................................... · ..................... V- 7 PROPOSED NON-HOUSING PROGRAM ACTIVITIES ........................ V- 8 1999 SAN _MATEO COUNTY MAXIMUM INCOMES ........................ vi-5 AFFORDABLE HOUSING NEED (REGIONAL FAIR SHARE) BY INCOME CATEGORY ............................................. VI- 6 HOUSING PRODUCTION SUMMARY ................................. vi-3. 0 HOUSING PRODUCTION & AFFORDABLE OBLIGATION HISTORICAL AND PROJECTED DOWNTOWN/CENTRAL PROJECT AREA .................... VI- 13 REPLACEMENT HOUSING OBLIGATION .............................. VI- 3. 4 HOUSING PRODUCTION SUMMARY ................................ vi- 16 HOUSING PRODUCTION AND AFFORDABLE OBLIGATION ................ vi- 18 HOUSING F'JND EXCESS SURPLUS .................................. VI-2 8 FUNDS AVAILABLE FOR AFFORDABLE HOUSING ...................... vi-2 PROJECTED EXPENDITURES ...................................... VI-2 9 UNITS PRODUCED WITH HOUSING FUNDS AND PROPORTION BY INCOME CATEGORY ............................................ vi-3 0 South San Francisco Redevelopment Agency iii 1999 Five Year Implementation Plan 2C 02 Mid-Term Update ,00 TABLE OF CDNTENTS (CONTINUED) Appendices Appendix A-1 Appendix A-2 Appendix A-3 Appendix A-4 Tax _-r_crement Projections - Downtown/Central Project Area Tax :'r_crement Projections - E1 Camino Corridor Project Area Tax -'r_crement Projections - Gateway Project Area Tax _-r_crement Projections - Shearwater Project Area South San Francisco Redevelopment Agency iv 1999 Five Yea_- Implementation Plan 2002 Mid-Term Update O0 07 I. INTRODUCTION The California Commu_n'_ty Redevelopment Law (the "CRL") requires each redevelopment agency administering a redevelopment plan to prepare and adopt a five year Ir~plementation Plan. The principal goa2 of the Implementation Plan is to guide an agency in implementing its redevelopment programs to help eliminate blighting influences. In addition, the affordable housing component of the Implementation Plan provides a mechanism for a redevelopment agency to monitor its progress in meeting both its affordable housing obligations under the CRL and the affordable hous:~rg needs of the community. In effect, the Implementation Plan is a guide, incorporating the goals, objectives and potential programs of an agency for the next five years, while providing flexibility so the agency may adjust to changing circumstances and new opportunities. State law also requires that Redevelopment Agencies conduct a mid-term review of the plan. This document constitutes the Implementation Plan and mid-term review for South San Francisco's four redevelopment Project Areas. 1. Downtown/Central Redevelopment Project Area; 2. E1 Camino Corridor Redevelopment Project Area; 3. Gateway Redevelopment Project Area; and 4. Shearwater Redevelo9ment Project Area. This Revised Implement~.tion Plan summarizes the South San Francisco Redevelopment Agency's programs for :evitalization, economic development, and affordable housing activities for the last two and one kalf years of the planning period, which includes fiscal years 1999/00 to the end of 2002, and projects activity through 2003/04. In addition, information for later years is also provided where it is required. A. ORGANIZATION Generally, the Implemen:ation Plan must contain the following information: · Specific goals and o ~.jectives for the next five years for both housing and r on-housing activities. · Specific programs and expenditures for the next five years for both housing and non-housing activities. · An explanation of how the goals, objectives, programs and expenditures will assist in the elimination ofbligh: and in meeting affordable housing obligations. · Other information related to the provision of affordable housing, as discussed in Chapter VI. The requirements of an 2mplementation Plan listed above fall under two broad categories of redevelopment activities. Consequently, the remainder of this Implementation Plan is organized South San Francisco RedeveSopment Agency I-1 1999 Five Year Implementation Plan 2002 Mid-Term Update into two principal parts. Ehapters II, III, IV and V set forth the requirements for general or non- housing activities and re~ated expenditures. Chapter VI addresses affordable housing activities and expenditures and charts Agency progress in meeting its affordable housing obligations. Chapter VI also includes the Affordable Housing Production Plan (also knowr_ as the AB 315 Plan). B. INTERPRE~.?ATION This Implementation Plan is intended to provide general guidance for the implementation of the Agency's programs anf_ activities. It is expected that particular constraints and opportunities, not fully predictable at this time, will arise in the course of undertaking the programs and activities described in this Implementation Plan. Therefore, the Agency intends to use ar.d interpret this Implementation Plan as ~ flexible guide. The Agency acknowledges that specific programs and activities implemented over the next five years may vary in their precise timing, location, cost, expenditure, scope and content fi.om that set forth in this document. The programs and expenditures contained in this Implementation Plan are in part based on certain assumptions made by the Agency relating to revenues, market conditions, community needs and priorities, ant :leveloper interests, among others. Consequently, sho~ald Agency assumptions not be real;zed or unforeseen circumstances arise, additional mid-course modifications in prograar s and this Implementation Plan may be required. South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2( 02 Mid-Term Update H. DO'WNTOWN/CENTRAL PROJECT AREA A. DESCRIPTIC:N OF REDEVELOPMENT PROJECT AREA The Downtown/Central Redevelopment Project Area (Project Area) consists of 550 acres of predominantly urbanized areas within the City of South San Francisco. The 55 3 acres have been subdivided into about 450 separate parcels with industrial, commercial, residential and public uses. As a result of the historical industrial subdivision system, there are numerous large parcels in the Project Area. The Project Area contains a majority of the City's industrial users, as well as o~ces, warehouses, distribution centers, and Hgh technology firms. The area is in transition from ~ core of industry, formed primarily of large manufacturing plants, to an area with a diversity of f.rms. At the time of Plan adoption, the follow_ng distribution of land use was found in the area: 33 3ercent industrial; 28 percent commercial; 13 .9,rcent residential; with the remaining 26 percent in street and freeway right- of-way, vacant and publ'.c/institutional uses. The Project Area was al opted by the City Council in Ordinance No. 1056-89, dated July 12, 1989. The South San Francisco Redevelopment Agency is responsible for implementation of the redevelopment plan. Tabl, II-1 briefly summarizes the characteristics of the Pr:~ject Area. Figure II-1 shows the Project Area boundaries. Table II-1 Summary Description of Project Area Downtown/Central Redevelopment Project Acres 550 Adopted July 12, 1989 Base Assessed Value $230,960,897 Time ~;!mits under AB 1290 Incurring Debt~ July 12, 2009 Projee: Activities July 12, 2029 Tax In:rement Receipt July 12, 2039 ~.:-...-_:~.:,r.:4~.,~,~/~.:~.~:~?~.~,~.. .~ ~..,,.: ~i..":i'.". (". 15 ' 'v, ;~? '". ,'::,' .}~'~ ~-," ~ · L.:- 2. - e :~ .".....~I' ..7~ ~ ,...~} ";~ .~,.J F~".. Financial Limits Tax Increment Cap $248,000,000 Bond Liaxit $90,000,000 ~ May be extended for ten years to eliminate blight by amending the Plan. South San Francisco Redevelopment Agency II- 1 1999 Five Yea~ Implementation Plan 2C02 Mid-Term Update O0 10 Figure II-1 ~ owtown/Central Redevelopment Project Area Ma) Subareas Figure I1-1 · Downtown/Central Redeve opment Project Area Map South San Francisco Redevelopment Agency 1-[-2 1999 Five Year Implementation Plan 2002 Mid-Term Update ,00 11 The Downtown/Central Project Area is composed of nine subareas. Five of the subareas are contiguous. · Subarea 1 is located within the downtown area of the City. · Subarea 2A (Sierra ?oint)located on San Francisco Bay, consists of a large parcel and is now in the process of being developed for office and hotel uses. · Subarea 2B is an are~. between the Southern Pacific railroad tracks and the US 101 Freeway. · Subarea 2C consists of three parcels and some public right-of-way. Two of the parcels are developed with a dr'_l'_ing firm and a waste disposal transfer station. The third is a sloping parcel, which has recently been developed with 105,000 square feet ofbiotech use. · Subarea 3 consists of an older part of the City near the downtown area historically used for industrial purposes st_ch as train yards. Infrastmcture upgrading is needed to make these properties compatible for warehouse and office space. · Subarea 4 contains some of the older areas, presently consisting ofjunk yards that have long been nonproductive and a mixture of manufacturing uses in the East of 101 Are~.. · Subarea 5 consists m~inly of the City's waste treatment facility, oil storage tanks and several undeveloped parcels. · Subarea 6 represents some of the larger undeveloped parcels in the Downtcwn/Central Project Area. 2 B. PROJECT A/.IEA GOALS & OBJECTIVES 1. Goals and Objectives The Implementation Plan provisions of the CRL require the Agency to establish goals and objectives for the Project Area for ll~e five year planning period. Following are the major goals and objectives to be pursued by the Agency, as originally set forth in the Redevelopment Plan. a. Goals 1. Promote Downtown's vitality and economic well being, and its presence as the City's center. 2. Encourage development of Downtown as a mixed-use activity center with retail and visitor- oriented uses, business and personal services, government and professional offices, civic uses, and a variety of residential types and densities. 3. Create a pedestrian environment to encourage multiple stops by visitors ant. more frequent visits to the Downtown. Redevelopment Consultant's Report on Project Tax Increment Revenues for the Gateway Redevelopment Project Area and other Redevelopment Projects in South San Francisco, Beyer & Associates, February 2, '_999, page 5-6. Included in the 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Projects), City of South San Francisco Capital Improvements Financing Autaority, February 17, 1999. South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2£ 02 Mid-Term Update , ,00 12 4. Achieve an environment reflecting a high level of concern for architectural, landscape, and urban design and land use principles. 5. Retain and expand ~ many existing businesses as possible by means ofrecevelopment and rehabilitation activities and by encouraging and assisting the cooperation and participation of owners, businesses ~_d public agencies. 6. Encourage maximum participation of residents, businesspersons, property owners, and community organiz,_t:ons in the redevelopment of the Project Area. 7. Create and develop '_c cal job opportunities and preserve the area's existing employment base. 8. Replan, redesign and develop areas that are stagnant or improperly used. b. Objectives Programs that will facilitate reaching the Redevelopment Project's goals incluce: 1. Provide incentives tq>r infill development, intensification and reuse of currently underutilized sites. 2. Enhance linkages between Downtown and transit centers, and increase street connectivity with the surrounding nei~ borhoods.3 3. Expand the retail co_-r, ponent of the Downtown, provide diversification of offerings and encourage major outlets as a draw to new shoppers. 4. Continue support oftlae various cultural and civic uses that provide major ~_nchors, stressing special events that d_-'~.w new attendees. Promote the area as rke financial hub, encouraging existing institutions to expand both physically and with related services. 6. Eliminate blight through reconstruction and assembly of parcels into more :levelopable sites for more desirable uses. 7. Improve public park's.g, other public facilities, services, utility lines, lighting, public safety and public transportatior_. 8. Emphasize the existing architectural style and scale through rehabilitation of historic structures and encouraging in-5'_l development that relates to existing structures. 9. Promote new and co arinuing private sector investment within the Project Area to prevent the loss of and to facilitate commercial and industrial activity. .5. 2. Programs The Agency will undertake four basic programs in the Project Area to alleviate blighting conditions and attain these goals: · Public Infrastructure. Improvement, construction and reconstrnetion ofrr.ajor public systems such as streets and roads, parking lots, and water, sewage and storm drainage systems. Goals 1 and 2 and Objectives 1 and 2 are from the City of South San Francisco, South San Francisco General Plan Hearing Draft, July 1999, page 3-6. South San Francisco Redevelopment Agency II-4 1999 Five Year Implementation Plan 2002 Mid-Term Update · Public Facilities. Repair, rehabilitation, installation, acquisition and improvement of parks, playgrounds, libraries, and other public buildings and structures, including a community learning center and cultural _-'acility. · Economic Develop'~ ent. Activities and programs designed to strengthen existing commercial enterprises and shopping areas, and to attract new businesses and shoppers. · Property Acquisiti ~, Site Preparation and Clean up. Purchase, improvement and clean up of property to promote ~nd support South San Francisco's redevelopment efforts. These program activities are described in Table 1I-2. Table 11-3 correlates these project activities to the non-housing redeve-opment goals stated above. C. HISTORICAL ACTIVITIES & AGENCY ACCOMPLISHMENTS The Historical Activities and Agency Accomplishments section is divided into two parts in this report: Historical Activities and Accomplishments from the creation of the project area through 1998/99 and Historical Activities and Accomplishments from 1999/00 througL the end of 2002. Historical Activities a~_& Accomplishments 1989/90 through 1998/99 Many projects and activities have been undertaken in the Project Area since 1989. The Agency has been active in facilitating the impnrovements of more than forty buildings withi a the Downtown/Central Proj :et Area. The Downtown/Central Redevelopment Pro.'ect has encouraged the development of researcL and development and high-tech industrial uses. The Britannia Pointe Grand Business Park has played a key role as a biotechnology complex which has att-acted companies, such as Sugen, Rigel, and ExSl:~xis. The following is a list oSprojects and activities accomplished over the last five years: Public Infrastructure Street and Circulation Im-~rovements · Added green areas to infill lots surrounding the Downtown. · Completed major lancscaping and street medium improvement project on Airport Boulevard, including adding large box trees and landscaping from Grand Avenue to Hllside to soften the impact of the roadway. · Provided low interest rate loans to ten small businesses for fagade and seismic retrofit improvements. 4 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Projects), City of South San Francisco Capital Improvements Financing A'.r hority, February 17, 1999, page 20. South San Francisco RedevelDT~ment Agency 1999 Five Year Implementation Plan 2, )02 Mid-Term Update LO0 !4 Program Activities Public Infrastructure Street and Circulation Improvements Public Utilities Parking Improvements Storm Drainage and Related Improvements Public Facilities Facilities Improvemerts Parks and Recreation Public Transportation Economic Development Business Enhancement, Retention and Expansion Table II-2 Non-Housing Program Activities Downtown/Central Project Area Description Construct and/or upgrade curbs, gutters, sidewalks, landscaping, and railroad crossings on streets such as Railroad and Grand. Replace and upgrade traff_c signals and overcrossings. East Grand Avenue Utility Undergrounding Parking lot improvements, including a potential parking structure Construct and/or upgrade sanitary sewer lines, storm drains ard sanitary sewer pumps; upgrade water quality control treatment plant. Improve Harbor Way area infrastructure, including new sewer, storm drain systems and the undergrounding of all utilities. Relocate Downtown Fire Station. Create community leaming :enter. Create a public market. Develop day care facility. Develop a cultural arts centre Paradise Valley Recreation Center, the playlot at Cypress/Pine and Pecks, and the pedestrian plaza on Cypress Avenue from Baden to Miller Avenue. Develop transit oriented improvements such as train, shuttle, mad/or ferry. Construct CalTrain Station/Ah'port'Blvd. intermodal transportation center. Strengthen existing commercial enterprises and shopping areaa and attract new businesses and shoppers. Business Assistance/Subsidy Program to assist commercial business owners to eliminate code deficiencies and otherwise improve their properties through a rehabilitation loan program and faoade improvement program. Facade improvements to health care service facility at 306 Spruce Ave. Develop and implement a Downtown Strategy Plan focused on new retail, offices and housing, including: · Supporting the construction of 1-2 office buildings · Enhancing housing opportunities · Extending the CalTrain Station platform to make it more accessible to Grand Ave. · Creating a pedestrian-friendly connection to Grand Avenae and Airport Blvd. Property Acquisition, Sire Preparation and Clean-up Property Acquisition, Conduct property acquisition for disposition to developers for ~roductive reuse. Site Preparation and Provide relocation assistance to any residents or businesses di~laced due to Clean-up redevelopment activities. Cai Trans Maintenance Facility Acquisition. Land acquisition for parking lot improvements. Enter into an Exclusive Negotiating Rights Agreement (ENRA) with the Giorgi Brothers to develop a new 47,000 SF, two level furniture store. Exchange two parcels, owned by the City and Agency for one parcel owned by the Giorgi Brothers. Conduct a feasibility analysis of this transaction. Source: Report to City Counc-1 on the Proposed Redevelopment Plan for the Downtown/Cent:al Redevelopment Project, May 1989. Updated with information from the Amended Implementation Plan, Redevelopmen: Agency, February 11, 1998 and the Redevelopment Consultant's Report on Project Tax Increment Revenues, Beyer & Associates, February 2, 1999. Included in the 1999 Revenue Bonds, City of South San Francisco Capital Improvements Financing Authority, February 17, 1999. South San Francisco Redevelo >merit Agency II-6 1999 Five Yea: Implementation Plan 2002 Mid-Term Update ..00 Table 11-3 CrosswaI t Between Redevelopment Goals and Program Ac' ivities Downtown/Central Project Area Redevelopnent Goal Promote Downtown's vitality and economic well- Program Activ.' ties Property Acquisition, Site Public Infra- Public Economic Preparation and structure Facilities Development Clean-Up · · · · Encourage development of Downtown as a mixed- use activity center with retaL ~nd visitor-oriented uses, business and personal se:-vices, government and · professional offices, civic uses, and a variety of residential types and densities. Create a pedestrian environmeat to encourage multiple stops by visitors and more frequent visits to · · · Downtown. Achieve an environment reflecting a high level of concern for architectural, landscape, and urban · · · Retain and expand as many ex!sting businesses as possible by means of redevelo' ~ment and rehabilitation activities and by encouraging and · assisting the cooperation and participation of owners, businesses and public agencies. Encourage maximum participation of residents, business persons, property owners, and community · · · · organizations in the redevelopment of the Project Area. Create and develop local job opportunities and · · Replan, redesign and develop areas which are stagnant or improperly used. · · · · Source: Redevelopment Plan for fie Downtown/Central Redevelopment Project, South San Francisco Relevelopment Agency, July 1989. South San Francisco Redevelopment Agency 11-7 1999 Five Year Implementation Plan 2C 02 Mid-Term Update 16 Parking Improvements · Worked with downtown businesses to improve parking. · Added approximate-y 50 additional parking spaces in the Downtown. · Acquired 200 Linden, including 22 public parking spaces. Painted and rehabilitated bank building. · Completed negotiat'ons on a lease agreement for the City/Agency land at ~/ae "finger piers" for at grade parking near t_ue San Francisco International Airport. · Acquired and improved 432 Baden and 124 Linden Ave. for parking. Public Facilities · Completed the Grand Avenue library retrofit project. · Acquired a Quonset l_ut building, relocated an auto body shop and rehabili-:ated the building for a community theater group. · Entered into agreement with San Marco County Health Services to provide a range of health care services fi.om the recently acquired and renovated 306 Spruce Avenue building. Economic Developmer t · Entered into an agreement with Terranomics/Metrovation for the development and implementation of a Downtown Strategy plan. · Completed the seismic retrofit of the Metropolitan Hotel and its 32 SRO urJts. The Bacchanal Restaurant opened in ~he Metropolitan Hotel in July 1999. · Provided over $3 million dollars in low interest rate loans for seismic retro:]tting of four historic buildings and hotels, enabling the retention of over 100 residential units in :he Downtown/Central Area. Provided low "_r_terest rate loans for: - Retrofitting of Al's Auto Body Shop on Airport Blvd. - Rehabilitatiou of the Coast Gas facility on 905 Linden Ave. - Roofing repair on a commercial building at 600 Linden Ave. - Seismic retrof_tting and rehabilitation of a URM commercial building at 211 Linden Avenue, add~g 2,500 square feet of retail inventory and the restoraAon of an historic building. - Seismic retrof_tting of restaurant on 235 Grand Ave. · Contributed $200,000 for frontage improvements for Trammel Crow's two recently completed biotechnology and E-commerce buildings on Oyster Point Boulevard. · Committed funds to acquire a 14,500 square foot three-story office building to house several community health ar_E social service agencies to better serve Downtown/Central area residents. · Entered into a Dispos:'tion and Development Agreement with Britannia Polar Grande Limited Partnership to replace metal dysfunctional buildings and vacant property in the Harbor Way area (Subarea 4) with new )iotech buildings. South San Francisco Redevelo'~ment Agency 11-8 1999 Five Yea_' Implementation Plan ~ 2002 Mid-Term Update · Began negotiations with Brittania, Inc. to share a portion of the costs of the extensive infi'astructure upgrade needed in this area. · Several new buildings have been constructed, including: - Sugen Headq-~arters 106,368 square feet - Sugen's 48,z00 square foot two-story addition commenced constru:tion in 1999 - Sugen's 57,: 00 square foot three-story building commenced constraction in 1999 - Rigel 60,96z- square feet - Exilixis 50,2C0 square feet - Exilixis at 70,000 square feet '. Property Acquisition, S:'te Occupant Relocation, Demolition and Site Prel: aration · Acquired 205 Bader_. · Acquired 616 Linden · Acquired the 306 SlVr~ee Ave. office building to serve as a medical facility. Upgraded building internally and planned facade improvements/ · Toxic remediation has been completed on the 29 acres at Sierra Point acqu:'red by Opus Development Compa-xy. Construction has commenced on a 140,000 square foot building by MJ Research. · Acquired 124 Linden (parking lo0, 432 Baden (parking lot), 905 Linden (g'een spot) and 700 Linden (green spot). Itistorical Activities an/_ Accomplishments 1999/00 through :z002 Public Infrastructure · Developed 12 new parking spaces at 201 Grand Avenue. · Developed 20 new parking spaces at 616 Linden Avenue · Obtained new equipment to steam clean downtown sidewalks. · Resurfaced AL-port Boulevard. · Upgraded parking meters in the Downtown Parking District. · Developed pla.as for the CalTrain Station relocation and transit center. Public Facilities · Completed interior and exterior remodel of 306 Spruce Building for health clinic operated by San Mateo County Depm~ctent of Health Services. 5 South San Francisco Redevelopment Agency. Amended Five Year Implementation Plan, City of South San Francisco Redevelopment Agency, February 1998, page A-1. Redevelopment Consultant's Report on P~oject Tax Increment Revenues for the Gateway Redevelopment Project Area and other Redevelopment Projects in South Sa_ Francisco, Beyer & Associates, February 2, 1999. South San Francisco Redevelopment Agency 1]-9 1999 Five Year Implementation Plan 2C02 Mid-Term Update 18 · Acquired and improved 905 Linden Avenue as a neighborhood green area. · Rehabilitated the old Spruce School Gym to create a new Commurr'.ty Learning Center. Economic · · · Developmer_t Approved a 105,000 SF five stow office building at 180 Oyster Point Blvd. Approved a i. 55,000 SF five stow office building at 200 Oyster Poi at Blvd. Through a disposition and development agreement approved the construction of a new 45,000 SF 'fin'niture store at the comer of Baden and Linden Avenues with Giorgi Brothers Furniture · Completed c.~nstruction of 5000-7000 Shoreline Court for three three-stow office buildings of 140,000 SF each totaling 420,000 SF. · Completed construction of 4000 Shoreline Court of a four-stow off_ce building of 67,806SF ow: parking garage. · Under construction Britannia East Grand: 785,000 square feet R&E/Office, 8,000 square feet childcare, 5,000 square feet fitness center, and 8,000 square fe~ retail · Under ConsWc.ction Genentech Founders Research Center II: 287,000 square feet R&D. · Approved Ger_entech Building 32:125,000 square feet Office · Under Const:t_ction Alexandria Real Estate Equities (East Jamie Ccurt): 133,000 square feet R&D/Office. · Under Constnzction Sugen, phase III: 48,391 square feet R&D/Office. · Approved Stuhlmuller Property Company: 105,000 square feet R&D/Office. · Hired an ombudsman to assist businesses and homeowners. Property Acquisition, Site Occupant Relocation, Demolition and Site Prep,~rafion · Acquired 201 Grand Avenue · Acquired 212 3aden Avenue in a land exchange with Giorgi Brothers Furniture. D. FIVE YEAR .?LANNING PERIOD REVENUES Over the.next two and one-half years, the Agency will undertake those activities that can be financially supported by i:s revenue stream. The Agency's revenue source is an_aual tax increment revenues. Tax increment revenues gmerated in the Project Area during the five year planning period are projected by the Agency to contribute approximately $4.38 million towards nov.-housing improvement project costs in present value, FY 1999/00 dollars. The tax increment projections for each Project Area were prepared based on the tax increment projections provided in the Fiscal Consultant's Report for the 1999 Revenue Bonds, Series A, and are considered conservative estimates of potential revenue. South San Francisco Redevelopment Agency II-lO 1999 Five Year Implementation Plan 2C 02 Mid-Term Update Table II-3 Summary of ~_?ax Increment Projections over the Five Year Plar.ning Period Downtown/Central Project Area6 Year Net TI After Obligations FY Ending 2000 $205,814 FY Ending 2001 $396,358 FY Ending 2002 $187,626 FY Ending 2003 $1,200,000 FY Ending 2004 $1,390,726 Total $4,380,524 Source: South San Francisco Redevelopment Agency Refer to the table in Appendix A for detailed tax increment projections. Ee PROPOSED FIVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES The Agency has developed programs to implement its goals and objectives duffng the five year Implementation Plan period. They are presented along with estimated expenditares in Table I1-5. These programs and activities are part of the overall development and redevelo ,ment strategy for the Downtown/Central Redevelopment Project. The estimated cost of the five year program of activities summarized in Table I1-5 is approximately $17.7 million. The $17.7 million in program costs is significantly more than the estimated Ag.:ncy five year revenues for non-housing activities of approximately $4.38 million as summarized in the preceding section. Thus, the Agency currently anticipates that other funds will be needed in order to undertake all of the proposed non-housing activities. LINKAGE B;ETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES Many of the issues facing these areas when the Redevelopment Project was established still remain. Properties with underutilized uses, small parcels and some toxic contamination continue to exist. The Agency's program of re~ evelopment activities is designed to systematically adcress the blighting conditions within the Project Area. The alleviation of blighting influences in the Project Area will create an investment environment in which private developers and property owners have the incentive and the means to redevelop their properties. The Agency's programs will contir_ue to be active in alleviating blight in the following areas: 6 Rounded to the nearest $10,0 )0. South San Francisco Redevelopment Agency II-11 1999 Five Year Implementation Plan 2£02 Mid-Term Update 20 Table II-4. Proposed Non-Housing Program Activities Downtown/Central Project Area Program Activities Public Infrastructure Street and Circulation Improvements: Construct and/or upgrade curbs, gutters, sidewalks, landscaping and railroad crossings on streets such as Railroad and Grand. Replace and upgrade traffic signals and overcrossings Public Utilities: East Grand Ave. Utility Undergrounding Parking lot improvements, including a potential parking structure Improve Harbor Way area infrastructure, including new sewer, storm drain systems and the undergrounding of all utilities. Public Facilities Relocation of Down-own Fire Station *Creation of community learning center. *Paradise Valley Recreation Center *Playlot at Cypress/PL-ae and Pecks Pedestrian plaza on Cypress Ave. from Baden to Miller Ave. Day Care Facility development Creation of a Public Market Transit oriented Imprcvements such as train, shuttle, ferry CalTrain Station/Aimor~Blvd. inter-modal transportation center Development of a cultural arts center Economic Developme ~: Business Assistance/S'absidy Program, including a Rehabilitation Loan Program *Facade improvements to health care service facility at 306 Spruce Ave. Other Building Faoade Improvements Downtown Strategy ?'~an and Improvements Property Acquisition, Site Preparation and Clean-up Property acquisition ."or disposition to developers for reuse. Relocation assistance -o any residents or businesses displaced due to redevelopment activities. Cai Trans Maintenance Facility Acquisition *Land acquisition for )arking lot improvements * Completed as of this mid-term Plan update TOTAL Five Year Projected Costs $300,000 $300,000 $430,000 $1,500,000 $850,000' $2,000,000 $1,500,000 $25,00O $100,000 $5OO,OOO $500,000 $100,000 $1,000,000 $1,500,000' $2,000,006 $750,000 $350,0OO $500,0O0 $600,000 $1,000,000 $200,000 $1,400,000 $3OO,O0O $17,705,000 Source: Amended Implementation Plan, Redevelopment Agency, February 11, 1998, page k-2. South San Francisco Redevelopment Agency. South San Francisco Redevelo-~ment Agency II-12 1999 Five Yea_' Implementation Plan 2, )02 Mid-Term Update ,00 21 1. Public Infrastructure Programs are needed to alleviate blighting conditions in public infrastructure. Commuter and through traffic in the Project Are~. is rapidly approaching a pressure point due to shifting land uses, diversification of the economic base and the corresponding mobility needs of City residents, workers and visitors. Inadequate ~.ccess and traffic congestion are problematic at various points in the Project Area. In addition, the C'_ty of South San Francisco and its Parking Place Commission are faced with a growing demand for parking in the Downtown/Central area. Improvement anti'or construction of storm drains and sewers is also needed. The Agency's programs in public infrastructure, as outlined in Table II-2, are aimed at improving transportation, circulatior_ and parking deficiencies by the reconstruction and c:~nstruction of streets, new traffic signals and ~.(._ded parking facilities. The programs also include storm drainage and related improvements. 2. Public Facilit:es Many of the Project Area s public facilities are in need of improvement. The Agency's activities over the five year planning period include improvement of parks, transit and other public facilities which will have a positive impact on the physical environment and serve as a catalyst for private investment in the Downtown/Central Project Area. 3. Economic Development Retail sales in the Downtown/Central Area, as a percentage of total San Mateo countywide retail sales, have been in a state of decline. The Agency's programs in business enhmtcement, retention and expansion and the Dowr_town Strategy programs will help enhance the retail development of the Project Area. The Agency's program activities in commercial rehabilitation will continue to t.ssist businesses with minor and major rehabil~_tation. This is a pressing need in the Project Area, which is characterized by the existence of buildings and structures that are in varying states of deterioration, are obsolete and, in certain cases, are unfit o: 'Jnsafe to occupy. 4. Property Acq dsition, Site Preparation and Clean-up The Project Area is characterized by lots of irregular form, shape and size, rest-lting from a historical pattern of industrial sub~_ivision. The Project Area has a fragmented parcelizatian system with numerous oversized parcels, irregularly formed and shaped parcels, and landlocked parcels (i.e., parcels enclosed by other ~arcels without direct access to a public right-of-way). The prevalence of irregular lot sizes is a bm-der to private sector investment in the area. Clean-up of the shoreline is also needed to alleviate contamination problems resulting from industrial wastes, including metal deposits, methane gas deposits and "mud boils." The Agency's property South San Francisco Redevelopment Agency 11-13 1999 Five Yea~ Implementation Plan 2( 02 Mid-Term Update acquisition, site preparation and clean-up program will help alleviate these pro ~lems. The Agency may acquire lots of irregular form, shape and size for assembly into parcels suitable for development and fund rehabilitation programs for contaminated parcels. Several parcels in tSae Project Area are in the process of being an~_lyzed and remediated. The biotech development in Subarea 4 has eliminated major blighting conditior_s consisting of toxic contamination, derelict buildings and underutilized property. Opus Development has mitigated major toxic contamination in the 26 acres it acquired in Subarea 2A and new development has recently been completed over the past two and one-half years. South San Francisco Redevelopment Agency 11-14 1999 Five Yem Implementation Plan 2C02 Mid-Term Update 00 III.EL CAMINO CORRIDOR PROJECt_? AREA A. DESCRIPTION OF REDEVELOPMENT PROJECT AREA The E1 Camino Corridor _~roject Area (Project Area) consists of 174.8 contiguous acres of predominantly urbanized land. The Project Area is generally bounded by Hickey Boulevard to the north, E1 Camino Real to the west, Chestnut Avenue to the south, and Mission Road and Grand Avenue to the east. A railroad right-of-way and the Colma Creek Channel mn ':hrough a large portion of the Project Area. The Project Area was originally adopted by the City Council on July 14, 1993. The area is generally characterized by inadeq-aate parcelization, vacant and underutilized sites and rr ixed uses. E1 Camino Corridor is the City's most diverse area in terms of land use, including residential, office/commercial, light industrial and agricultural uses. The area also contains the Kaiser Permanente Medical Facility, the San Mateo County Government Center, the furore BART Station, and newly developed market- rate and affordable housing projects. In 2000, the E1 Camino Corridor Redevelopment Project Area was amended to add two areas: 1) the non-contiguous 9.3 acre Willow Gardens addition and 2) the 70 acre contiguous E1 Camino Real Addition, including the commercial strip along E1 Camino Real, a parcel owned by California Water Service Company, a 3.9 acre Chestnut Shopping Center, an 8.7 acre area conta/ning several greenhouses, several apartment buildings and a community garden. The Redevelopment Plan was amended to change land uses within the project trea from primarily high-density, transit-orier_ted residential to a mix of commercial and high- and xtedium-density residential uses ranging 5-om 30 to 50 units per acre. Anticipated development 'ncludes new retail, office and residential uses with the project area. In 2001, the City adopted the South San Francisco BART Transit Village Plan and Zoning District to accommodate mixed use commercial and residential development covering the 1/2 mile radius from the BART Station. The major components of the Transit Village Plan are traffi: circulation, street design, open space, site :levelopment and architecture. The Plan analyzes abou: 40 acres of development or potential development land and a circulation and open space network that includes the linear park right-of-way along the BART tracks, and several small plazas associated with the new development. Figure III-1 shows the Project Area boundaries. Table III-1 briefly describes th: Project Area and the potential proposed Amendment. South San Francisco Redevelopment Agency III-1 1999 Five Yea~ Implementation Plan 2£ 02 Mid-Term Update Figure III-1 El. Camino Corridor Redevelopment Project Area Map South San Francisco Redeve[og. ment Agency 11I-2 1999 Five Year Implementation Plan 2002 Mid-Term Update Table III-1 Summa:-y Description of Project Area and Proposed Ame~ .dment E1 Camino Corridor Redevelopment Project Acres Adopted Base Assessed Value Time Limits t.t.der AB 1290 Incurring Debti Project Activities Tax Increment Receipt Financial Lil~i-:s Proposed Added Area for El Camino Corridor Amendment 175 79.6 July 14, 1993 2000 $51,066,100 n/a July 14, 2013 2020 July 14, 2033 2030 July 14, 2043 2045 Tax Ineremem C~_p Bond Limit $300,000,000 n/a $50,000,000 n/a B. PROJECT AREA GOALS & OBJECTIVES 1. Goals and O1: j ctives The Implementation Plan provisions of the CRL require the Agency to establish goals and objectives for the Project Area for the five year planning period. Following are the major goals and objectives to be pursued by the Agency, as originally set forth in the Redevelopment Plan. a. Goals 1. Develop E1 Camino Real as a boulevard that accommodates its role as a regional corridor but with streetscape and deve'_opment that provide identity to the street. 2. Encourage developrr e at of a mix of uses, with pockets of concentrated activity that provide focus and identity to the different parts of E1 Camino Real. 3. Eliminate and prever_t the spread of blight, non-conforming uses and deterioration and the conservation, rehabil!tation and redevelopment of the Project Area in accordance with the General Plan, future specific plans and local codes and ordinances. ~ May be extended for ten years to eliminate blight by mending the Plan. South San Francisco Redevelopment Agency 111-3 1999 Five Year Implementation Plan 2C02 Mid-Term Update .00 4. Achieve an environ_-T_ent reflecting a higher level of concern for architectural, landscape, urban design and land use principles appropriate for attainment of the objectives of the General Plan. 5. Develop a spectrum of housing types affordable to various segments of the community in a manner consistent wi:h the Housing Element of the General Plan and the provisions of the Redevelopment Law. 6. Eliminate or ameliorate existing substandard conditions, including substandard vehicular circulation and park~r.g systems, inadequate infrastructure, insufficient off-street parking, and other similar public deficiencies. 7. Control unplanned growth by guiding revitalization, rehabilitation and new development in such fashion as to meet tie needs of the Project. 8. Create and develop -ocal job opportunities and preserve the area's existing employment base. b. Objectives Programs that will facilitate reaching the Project's goals include: 1. Develop the South San Francisco BART station area as a vital pedestrian-oriented center, with intensity and mix of uses that complement the area's new role as a regional center. 2. Develop more east-west crossings on E1 Camino Real that connect the City's neighborhoods, and a continuous paralle'_ street on the eastside to provide alternative travel routes. 3. Promote new and con :inuing private sector investment within the Project Area to prevent the loss of and to facilitate ff_e increase of commercial sales activity. 4. Reduce the City's mr_ual costs for the provision of local, services to and wi-hin the Project Area. 5. Increase sales, business licenses and other fees, taxes and revenues for the City. 6. Present and create civic, cultural and educational facilities and amenities as catalysts for area revitalization. 7. Upgrade and expand recreational areas and open space. 8. Assist in the revitalization of the Willow Gardens neighborhood. 2 2. Programs The Agency will undertake three basic programs in the Project Area to alleviate blighting conditions and attain these goals: · Public Infrastruetu :e. Improvement, construction and reconstruction of n~ ajor public systems such as streets and ro~.ds, and water, sewage and storm drainage systems. · Public Facilities. Rel:air, rehabilitation, installation, acquisition and improvement of parks, playgrounds, libraries, transit facilities and other public buildings and stmc-ures. 2 Goals 1, 2 and 3 and Objectives 1 and 2 from City of South San Francisco, South San Francisco General Plan Hearing Draft, July 1999, page 3-28. South San Francisco Redevelopment Agency III-4 1999 Five Year Implementation Plan 2C02 Mid-Term Update 200 77 · Property Acquisition, Site Preparation and Clean-up. Purchase, improvement and clean-up of property to promote ~ad support redevelopment efforts. These program activities are described in Table Ili-2. Table III-3 correlates these program activities to the non-housing redevelopment goals stated above. Table III-2 Non-Housing Program Activities El Camino Corridor Project Area Program Activities Public Infrastructure Flood Culvert Improvements Street and Circulation Improvements Public Facilities Description Consider improvements to relocate the City of San Francisco water line parallel to the flood channel and other related flood culvert improvements along Mission. Upgrade streets, curbs, gutters, and sidewalks, in order to meet City standards, improve access to and within the Project Area, and eliminate visual blighting influences in residential and commercial neighborhoods. Increase stack lane capacity and adequate advance intersection signage on E1 Camino Real and Chestnut Avenue, and make other infrastructure improvements as will be required by new development in the Project Area. Create greenbelt parkway on BART alignment. Eliminate parking islands in the Willow Gardens Area. Extend Oak Ave. between Mission and E1 Caminc. Install traffic signals at Hickey and Arlington. Install traffic signals at Hickey and Camaritas. Repair, rehabilitation, installation, acquisition and improvement of parks, playgrounds, libraries, and other public bu[dings and structures. Construct a Community Center at Willow Gardens. Design, develop and construct library. Design, develop and construct fire station. Property Acquisition, Site .-?reparation and Clean-up Relocation/Contingency/Other Provide development assistance in the form of relocation payments and assistance to residents and business owners dialocated as a result of redevelopment activities. Site Preparation and Clean-up Remove greenhouses in Orange Park. Conduct toxic remediation testing of Orange Park. Property Acquisition Acquire the Chestnut Avenue/E1 Camino Real rigLt-of-way. Source: Report on the Redevelopment Plan for the El Camino Corridor Project, April 1993. Updated with information from the Amended Five Year Implementation Plan, City of South San Francisco Redevelopment Agency, February 1998, pages A-4 and A-5. Revised Draft of the Amended and Restated Rede'~elopment Plan for the E1 Camino Corridor Redevelopment Project, Katz Hollis, September 15, 1999, Exhibit V. South San Francisco Redevelopment Agency m-5 1999 Five Year Implementation Plan 2032 Mid-Term Update l wOO Table III-3 Crosswalk Between Redevelopment Goals and Program Ac:ivities El Camino Corridor Project Area South San Francisco Redevelopment Agency Redevelopment Goal Develop E1 Camino Real as a boulevard, that accommodates its role as a regional corridor but with streetscape and development that provide identity to the street. Encourage development of a mix of uses, with pockets of concentrated activity that provide focus and identity to the different Progran. Activities Property Public Acquisition, Site Infra- Public Preparation and structure Facilities Cleanup Eliminate and prevent the spread of blight, non-conforming uses and deterioration and the conserva/on, rehabihtation and redevelopment · · · of the Project Area in accord with the General Plan, future specific plans and local codes and orcinances. Achieve an environment reflecting a higher level of concern for architectural, landscape, urban design and land use principles · · · appropriate for attainment for lhe objectives of the General Plan. Develop a spectrum of housing types affordable to various segments of the community in a manner consistent with the Housing Element of Eliminate or ameliorate existaxg substandard conditions, including substandard vehicular circulation and parking systems; inadequate · · infrastructure; insufficient off-street parking; and other similar public deficiencies. Control unplanned growth by guiding revitalization, rehabilitation and · new development in such fashion as to meet the needs of the Project Create and develop local job ~ppommities and the preserve the area's · existing employment base. Source: Redevelopment Plan for the E1 Camino Corridor Area Project, June 1993 South San Francisco Redevelopment Agency IH-6 1999 Five Year Implementation Plan 2C02 Mid-Term Update C. HISTORICA_-~ ACTIVITIES & AGENCY ACCOMPLISHMENTS The Historical Activities and Agency Accomplishments section is divided into two parts in this report: Historical Activ_t5es and Accomplishments from the creation of the project area through 1998/99 and Historical Activities and Accomplishments from 1999/00 througl:, the end of 2002. Historical Activities at.d Accomplishments 1989/90 through 1998/99 The Redevelopment Plan for E1 Camino Corridor was prepared in response to -lae planned BART extension through South San Francisco. The BART extension is currently under construction with completion scheduled for 2003. The Redevelopment Plan focuses on key parcels along the northern section of the corridor, ;ncluding the former Macy's Warehouse Site and McCiellan Nursery. 3 In 1999 Costco received approval to develop a 153,000 square foot store on a '~ortion of the site of the former Macy's warekouse operation.4 Property Acquisition, S:'te Preparation and Clean-up - The Macy's warehouse site on E1 Camino was sold to Costco Wholesale. - Costco Who'_esale demolished the Macy's warehouse site (a 20 acre site) to construct a 153,000 squt.re foot store on 14 acres of the parcel. The remaining six acres are planned for mixed-use residential/retail use. Historical Activities arc Accomplishments 1999/00 through 2002 Public Infrastructure · Installed traffic signal light and median, and completed improvements at the intersection of Hickey Boulevard mad Hilton Avenue. · Installed traffic signal light and completed improvements at the intersectior, of Hickey Boulevard and Camaritas Avenae. · McLellan Drive: In _-'~1 2002, BART completed construction of McLellan Drive, which is located on the north side of-l: e BART Station on the former Macy's warehouse site. The developer of the transit village site w:l- install new street lights, street fumiture, street trees and landscaping in order to promote pedestrian-oriented activities on McLellan Drive. · Upgrade streets, curbs, gutters, and sidewalks, in order to meet City Standa:ds, improve access to and within the Project Area, and eliminate visual blighting influences in residential and commercial neighborhoods. · E1 Camino Real/Chez:nut Area Land Use and Urban Design Plan: The City hired a consultant to analyze proposed pu'sic improvements. The 1999 General Plan calls for an extension of Oak Avenue to relieve congestion on Chestnut Avenue and a major expansion of Orange Park. City of South San Francisco, Redevelopment, Webpage www.ci.ssf, ca.us/ecd/ECcon/dor.htm. South San Francisco Redevelopment Agency. South San Francisco Redevelopment Agency 111-7 1999 Five Year Implementation Plan 2(:02 Mid-Term Update ", 00 · South San Francisco BART Linear Park: Planning is underway for a bikeway on the BART right- of-way traversing tke entire distance of the city. · Completed the study for the extension of North Canal Street Economic Developmex.t · Costco has constructed and opened a 153,000 square foot store on 14 acres of the former Macy's warehouse operation. In November 2000, Costco began operating the commercial operation. Property Acquisition, S'te Occupant Relocation, Demolition and Site Pre[ aration · Completed and adopted zoning standards and design guidelines for the Sot_th San Francisco BART station area t3 ensure transit oriented development · In August 2002, Price/Costco entered into an agreement with Fairfield Res ~dential to develop two parts of the original Macy's parcel for a mixed use commercial/residential xansit village project · On December 12, 2002, Fairfield Residential submittal revised site and elevation plans for Design Review Board review. The revised mixed-use project comprises 360-units, 556 parking spaces (76 spaces would be ~.djacent to the future grocery store), and over twenty -housand square feet of retail (including a grocery store and local serving retail along McLellan Dr_ve) D. FIVE YEAR PLANNING PERIOD REVENUES Over the next five years, -.he Agency will undertake those activities that can be financially supported by its revenue stream. T.ae Agency has two basic revenue sources: · Annual tax incremer.t revenues, and · Non-Agency finaneia- resources. 1. Annual Tax Ir crement Revenues Tax increment revenues generated in the Project Area during the five year plan aing period are projected by the Agency to contribute approximately $3.4 million towards non-housing improvement project costs in present wlue, FY 1999/00 dollars. As noted previously, these t ax increment projections are based on t2aose provided in the Fiscal Consultant's Report for tk e 1999 Revenue Bonds, Series A, and are considered conservative estimates of potential revenu :. South San Francisco Redevelopment Agency 111-8 1999 Five Yea~ Implementation Plan 2(02 Mid-Term Update ' 00 31 Table III-4 Summary o~ Tax Increment Projections over the Five Year Plm .ning Period El Camino Corridor Project Areas Year FY Ending 2000 FY Ending 2001 FY Ending 2002 FY Ending 2003 FY Ending 2004 Total NetTI After Obligations $260,000 $550,000 $800,000 $870,000 $950,000 $3,430,000 Source: South San Francisco Redevelopment Agency Refer to the table in Appendix A for detailed tax increment projections. 2. Non-Agency ?nancial Resources Wherever possible, the Agency will leverage other funds in connection with its redevelopment efforts. The Agency has targeted local, State, and Federal funding sources to as sist financing eligible projects. As permitted by law, funds can come from government grants and assistance programs, as well as from private sector sources. The Agency is in the process of procuring funds from the following sources: Assessment Districts, Development Impact Fees, developer participation, Federal Urban Aid, TEA-21 funds, and other State and Federal programs. Ew PROPOSED ~?IVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES The Agency has developed programs to implement its goals and objectives durng the five year Implementation Plan period. They are presented along with estimated expenditares in Table 111-5. The estimated cost of the five year program of activities summarized in Table I~I-5 is approximately $10.9 million. The $10.9 million in program costs is significantly more than the estimated Agency five year revenues for non-housing activities of approximately $3.4 million as ~mmmarized in the' preceding section. Thus, f he Agency currently anticipates that other funds will be needed in order to undertake all of the proposed non-housing activities. s Rounded to the nearest $10,0C 0. South San Francisco Redevelopment Agency III-9 1999 Five Year Implementation Plan 2002 Mid-Term Update ;.,00 32 Table 111-5 Proposed Non-Housing Program Activities El Camino Corridor Project Area Program Activities Public Infrastructr:. e Flood culvert im-3rovements Street and Circ-alation Improvements *Improvements to E1 Camino Real and Chestnut Avenue Transit Corridor Pathway/Trail on BART Alignment Eliminate parki ag islands in the Willow Gardens Area. Public Facilities Construct a Com:nunity Center at Willow Gardens. Library design, development, and construction Fire Station design, development, and construction Other Public Fae'_lities Improvements Day Care Center Property Acquisitio:a, Site Preparation and Clean-up Reloeation/Con-Jngeney/Other Memorial Park si :e preparation Acquire the Chesmut Ave/E1 Camino Real right-of-way Source: South San Francisco Redevelopment Agency. * Completed as of this mid-term Plan update TOTAL Five Year Projected Costs $600,000 $1,000,000 $500,000 $1,500,000 $200,000 $250,000 $2,000,000 $2,500,000 $500,000 $1,000,000 $200,000 $300,000 $300,000 $10,850,000 South San Francisco Redevelopment Agency III-10 1999 Five Year Implementation Plan 21302 Mid-Term Update O0 33 Fe LINKAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES The Agency's program of redevelopment activities is designed to systematically address the blighting conditions within the Pro-'eot Area. The alleviation of blighting influences in the Project Area will work to create an investment environment in which private developers and property owners have the incentive and the means to redevelop their properties. The Agency's programs will be active in alleviating blight in the 5ollowing areas: 1. Public Infras:ructure The Project Area is in need of street and circulation improvements. Several street deficiencies hinder commercial access and development. For example, several privately owned parcels are surrounded by roadways on two or more sides, creating isolated and awkward development sires. Some parcels, such as those on Hickey Boulevard, are accessed through several driveways. In addkion, many of the parcels along Mission Road lack rear access due to utility easements (i.e., railroad tracks, drainage channels.) Several streets also require improvements to the streetscape, including curb, gutter and sidewalk improvements. In addition, problems with some of the major thoroughfares in the Project Area will become more serious with additional ye aicular traffic resulting from new development in the area. The major intersection at E1 Camino Real and Chestnut Avenue received improvements because it was deficient in design and had a disproportionately high incidence of traffic accidents. The Agency's program fo: the five year Plan period includes upgrading various streets to improve access to and within the ?roject Area, to the extent.of available revenues. The Agency will make streetscape improvemenl s, including upgrading curbs, gutters and sidewalks in order to bring them up to City standards. The Agency's program will improve signage at the intersection of E1 Camino Real and Chestnut Avenue, ar_& increase stack lane capacity on E1 Camino Real. By providing financing for road and traffic improvements, the Redevelopment ?rogram will improve the visual quality and the accessibility of the Project Area. This will promote ar. investment climate favorable to new business :s and increase the viability of existing businesses. The completion of the BART system through tt.e Project Area in 2003 will provide opportunities for r ew development, which will remove addit:'cnal blighting conditions. The development of properties located between Mission Road and E1 Camino Real is currently being impeded by the bisectior of Colma Creek. Because of the Colma Creek drainage channel, the majority of the lots on Mission Road are very shallow, or as little as 30 feet from street to back lot line. BART is proposing to cover all or a portion of the Colma Creek Flood Ch~mnel to encourage development in the corridor by increasing lot depths along Mission Road, allowing the property level to be raised to street gra~e in certain areas of the project and facilitating linkages between E1 Camino Real and Mission Road. The Agency may also provide financing for the constrcction of related improvements to relocate -he City's water line parallel to the flood channel and other flood culvert improvements along Miss:_on Road. South San Francisco Redevelopment Agency III- 11 1999 Five Year Implementation Plan 2002 Mid-Term Update ;00 2. Public Facili .-ies Many of the Project Area's public facilities are in need of improvement. Over lhe five year Plan period, the Agency plar_s to construct a Community Center at Willow Gardens and design, develop and construct a fire stat/on and a library. These activities will have a positive i: npact on the environment of the Proje :t Area. 3. Property Accl~ fisifion, Site Preparation and Clean-up One of the most serious blighting influences in the area was inadequate parcelization: parcels in the Project Area had been s'~3divided and sold in lots which were too irregular to be developed in a manner consistent with :nodem development standards. A number of small, irregularly shaped parcels remain. The former Macy's warei~ouse on E1 Camino Real was acquired by Costco and. demolished, removing a significant blighting ix fluence in the E1 Camino Corridor Project Area. The Agency may expend some funds towards strategic property acquisition th~_t would assist and/or enable in-fill developmer_t and assemblage of irregular parcels. Projects may ir_clude removing greenhouses and conducEng toxic remediation testing in Orange Park and acqciring the Chestnut Avenue/E1 Camino Real. _-Sght-of-way. South San Francisco Redevelopment Agency III-12 1999 Five Yea~ Implementation Plan 2C 02 Mid-Term Update IV. GATEWAY PROJECT AREA A. DESCRIPTIGN OF REDEVELOPMENT PROJECT AREA The South San Francisco Community Gateway Redevelopment Project Area (Project Area) consists of 176.2 acres of predominantly urbanized areas within the City of So'ath San Francisco. The site consists of two iistinct geographical subareas. The first sub-area, comprising 67.4 acres of land, is devoted to public transportation uses, with 23 acres of railroad uses and over 43 acres of streets and highways. The second subarea, totaling 108.8 acres, is comprisec of two privately owned parcels: the vaca_a: Bethlehem Steel plant site (99.4 acres) and the Edw~d Wire R6pe Factory Site (9.4 acres). The Project Area was acopted by the City Council in Ordinance No. 867-81, dated June 17, 1981. Table IV-i. briefly summarizes the characteristics of the Project Area. Figure IV-1 shows the Project Area '>oundaries. The Agency is in the process of amending the Gateway Redevelopment Plan to add one new area. The new area is Oyster Point Marina and Business Park, a 57 acre marin~ with a boat- launch ramp, berths, pie-:., the Marine Center, and open space. The amendment will provide tax increment dollars to potentially develop a new conference center and hotel, locating a public market and new offices, ~nd for improving the marina to increase recreation ard commercial activity. The recently released Bay Ferry Action Plan by the Bay Area Counci~ identifies Oyster Point as a site that wouht be suitable for a potential Ferry. south San Francisco Redevel ~pment Agency 1999 Five Year Implementation Plan 2(}02 Mid-Term Update Table IV-1 Summary Description of Project Area Gateway Redevelopment Project Acres Adopted Base Assessed Value Gateway Propos ed Added Area for Amendment 176.2 57 June 17, 1981 Proposed 2003 $14,984,252 To Be Determined Time Lingt.,~ under AB 1290 Incurring Debt~ Project Actixdties Tax Increment Receipt January 1, 2004 June 17, 2021 June 17, 2031 Proposed 2023 Proposed 2033 Proposed 2048 ". ,:,.'?~'"':'~" ~"'q'~ .,e,~ ~ -:;,%~? ~ ;~"~'. ~.~,~.}/l~'"e'''~ '~;~,- .. ''''*''/',.. ~".: ....~,:'~:"::'" ..... L:';.;~ ?..".'.':;- ...... >:', .' · "" '. '.'.' · "'"~,-" .%' ' !::':~,. '-?': ,~,,, ' ', Financial Limits Tax Increment Cap $80,000,000 To 3e Determined Bond Limit $40,000,000 To 3e Determined ~ May be extended for ten years to eliminate blight by amending tl~e Plan. South San Francisco Redevelopment Agency IV-2 1999 Five Year Implementation Plan 2032 Mid-Term Update Figure IV-1 Gateway Redevelopment Project Area Map . ZOt.Jl~ MAP (1ATEWAY .~P~CI:)C I~ .'~N. South San Francisco Redevelo0ment Agency 1999 Five Year Implementation Plan 20,)2 Mid-Term Updat~ B. PROJECT AREA GOALS & OBJECTIVES 1. Goals and O-~:ectives The Implementation Pl~r~ provisions of the CRL require the Agency to establish goals and objectives for the Project Area for the five year planning period. Following are the major goals and objectives to be purs-aed by the Agency, as originally set forth in the Redevelopment Plan. 1. Eliminate blight an(._ blighting influences. 2. Replan, redesign and develop a large area suffering from obsolete plant facilities. 3. Establish and imple~nent performance criteria to assure high site design standards and environmental quali.-y so as to provide unity and integrity to the entire site. 4. Strengthen the economic base of the Project Area and the community by installing public improvements neede(_ to stimulate new office/hotel and commercial development, employment and ecor_omic growth. 2. Programs All activities which the Agency will undertake in the Project Area to alleviate blighting conditions and attain these goals can be categorized into four basic program ac:ivities: · Public Infrastructure. Improvement, construction and reconstruction ofrr_ajor public systems such as streets and roads, and water, sewage and storm drainage systems. · Public Facilities. Repair, rehabilitation, installation, acquisition and improvement of parks, playgrounds, libraries, transit facilities and other public buildings and stmc.-ures. · Eeonomle Development. Activities and programs designed to strengthen existing commercial enterprises and shopping areas, and to attract new businesses and shoppers. · Property Aequisitior., Site Preparation and Clean-up. Purchase, improvement and clean- up of property for redsposition to private sector developers that will promcte and support South San Francisco's redevelopment efforts. These program activities are described in Table IV-2. Table IV-3 correlates these project activities to the non-housing redevelopment goals stated above. South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2C02 Mid-Term Update Table IV-2 Non-Housing Program Activities Gateway Project Area Program Activities Description Public Infrastructure Installation, construction or reconstruction of streets, r~tilities and other public improvements. Design and construct the Oyster Point Flyover project. Widen Oyster Point Boulevard. Remove railroad tracks. Public Facilities Repair, rehabilitation, installation, acquisition and improvement of parks, playgrounds, libraries, transit facilities and other public buildings and structures. Develop transit oriented facilities (train, shuttle, ferry~ Complete day care facility. Economic Developmen: Undertake activities to strengthen existing commercia2 enterprises and shopping areas and to attract new businesses and shoppers. Provide for participation in the redevelopment process for owners and tenants of property in the Project Area. Property Acquisition, Sire Acquisition of real property, demolition or removal of buildings, Preparation and Clean-cp improvements on acquired property, relocation assistance to displaced occupants, and disposition of land for redevelopment by private enterprise and public agencies. Source: Redevelopment Plan for the South San Francisco Gateway Redevelopment Project, .hme 17, 1981. Updated with information from the Amended ImPlementation Plan, Redevelopment Agency, February 11, 1998 and the1999 Revenue Bonds, City of South San Francisco Capital Improvements Financing Authority, February 17, 1999, page 18. C. ItlSTORICA/L ACTIVITIES & AGENCY ACCOMPLISHMENTS The Historical Activities ~md Agency Accomplishments section is divided into two parts in this report: Historical Activities and Accomplishments from the creation of the project area through 1998/99 and Historical Activities and Accomplishments from 1999/00 through the end of 2002. Historical Activities and Accomplishments 1989/90 throueh 1998/99 The Project Area is being developed as an office park available for commercial development. The former site of the Bethlehem Steel plant now contains several high-rise buildings, hotels, and high-technology companies. The Gateway Area has a large concentration of biotechnology companies, including Ehtr. (Athena Neurosciences), Tularik and Fibrogen in the Britannia Biotechnology Center, and Coulter Pharmaceuticals.2 The completion of the Oyster Point freeway interchange will significantly improve access to the Project Area.3 City of South San Francisco, Redevelopment, Webpage www.ci.ssf, ca.us/ecd/gateway.htm. 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Projects), City of South San Francisco Capital Improvements Finar cing Authority, February 17, 1999, pages 17-18. South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2002 Mid-Term Update ¢00 4O In 1981, the Redeveloprr ent Agency entered into an Owner Participation Agreement with the owner of the property wi:hin the Gateway Redevelopment Project Area. The Agency committed to assisting in the const:uction of a number of public improvements jointly with the developer which included the Grand Avenue Grade Separation, Oyster Point Separation ~nd other public infrastructure off-site improvements included in the Gateway Redevelopment _-'lan. The developer completed or e 350-room hotel, two mid-rise office buildings and the public infrastructure to accommodate these improvements. The Redevelopment Agency approved two 150,000 square foot bio_-r_edical buildings in 1994 for development in the Project Area. Table IV-3 CrosswaL, Between Redevelopment Goals and Program Activities Gateway Project Area South San Francisco Redevelopment Agency Program Activities Redevelopment Ge-' 1 Eliminate blight and blighting · influences. Replan, redesign and develop a large stagnated area suffering from · · obsolete plant facilities. Establish and implement performance criteria to assure high site design standards and · · environmental quality so as to provide unity and integrity to t ae entire site. Strengthen the economic base of the Project Area and the commur, ity by installing public improvements · · needed to stimulate new office/hotel and commercial development, employment and economic growth. Property Acquisition, Site PubHc Economic Preparation and Infrastructure Public Facilities Development Clean-Up Source: Redevelopment Plan 5or the South San Francisco Gateway Redevelopment Project, June 1981 Significant activity in implementing the Gateway Redevelopment Plan has occurred since 1994. The Gateway Project is essentially complete, with the exception of several private parcels and four public projects. There are approximately twelve acres of undeveloped property in the Project Area. Land use enStlements allow for additional development of office space and hotel uses. During the remaini er of the Redevelopment Plan period, the Project Area will be built out if the anticipated projects are constructed. Three infrastructure improvement projects are planned South San Francisco Redevelopment Agency IV-6 1999 Five Year Implementation Plan 2002 Mid-Term Update over the next five years, :o be funded by proceeds of the $28.8 million Gateway Bond Issue in early 1999. Following is a list of projects and activities accomplished over the last five years: Economic Developme~.t · 611 Gateway: One office building consisting of 11 stories and 285,000 square feet, and a four story building consisting of 100,000 square feet were submitted for approval by the Redevelopment Ager_cy. · 701 Gateway: A 177,300 square foot six story office building completed ir late 1998. · 801 Gateway: A 175,.300 square foot five story office building with four levels of parking approved by the Recevelopment Agency in December 1999 for All Advantage.com. · 901 Gateway: A 11 (,,,~00 square foot R&D building has recently been com-)leted for Advanced Medicine. · Coulter Pharmaceutical received approval to construct three 50,000 square foot buildings. Two of the buildings were completed, and the third is under construction. · The Tularik 60,000 sc uare foot biomedical building has been completed. · Fibrogen is complet!rg its second 70,000 square foot building adjacent to Tularik. · A six-story office tower to complement the existing two high rise office bu:ldings commenced construction in 1998. · Elan completed a 60,000 square foot building. · The last building in -l:e Gateway Business Park is presently under construcSon and will be occupied by Athena Neurosciences. · Three hotel projects totaling 393 rooms were completed in 1999: - Hampton Inn with 100 rooms - Larkspur Lar_cLing with 111 rooms - Hilton Gar0064ens with 172 rooms4 Historical Activities an t Accomplishments 1999/00 through 2002 Economic Development · 611 Gateway: One o.ffice building consisting of 11 stories and 265,081 squ,' re feet, and a four story building consisting of 100,000 is nearing completion. · 681 Gateway: a four story mid-rise office building with 124,425 square feet has been approved for development. 4 Redevelopment Consultant's Report on Project Tax Increment Revenues for the Gateway Rei~evelopment Project Area and other Redevelopment Projects in South San Francisco, Beyer & Associates, February 2, 1999, page 3. Included in the 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Projects), City of South San Francisco Capital Improvements Financing Authority, February 17, 1999. Amended Five Year Implementation Plan, City of South San Francisco Redevelopment Agency, February 1998, page A-7. South San Francisco Redevelopment Agency. South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2002 Mid-Term Update '00 · 801 Gateway: A 139,300 square foot five story office building with four levels of parking has been completed. · 951 Gateway totalir g 60,000 square feet was completed in 2002 for Advar ced Medicine. · Coulter Pharmaceutical has completed the third and final 50,000 square foot building. · Fibrogen completed irs second 70,000 square foot building adjacent to Tularik. · Completed a six-sto_-y office tower to complement the existing two high-rise office buildings. · The last building in ff.e Gateway Business Park has been completed and is 3ccupied by Athena Neurosciences. Public Infrastructure · The Redevelopment Agency Issued request for proposals to create a daycare center · The Redevelopment Agency is using bond proceeds to upgrade fire station No. 5. · Reconstructed and wi:tened Oyster Point Boulevard to four lanes. · Assisting in the development of the US 101/Oyster Point Boulevard flyover and hook ramps. D. FIVE YEAR PLANNING PERIOD REVENUES Over the next five years, :he Agency will undertake those activities which can 3e financially supported by its revenue stream. The Agency's revenue source is annual tax increment revenues. Tax increment revenues generated in the Project Area during the five year plan_ting period are projected by the Agency to contribute approximately $11.7 million towards no: a-housing improvement project costs in present value, FY 1999/00 dollars. Table IV-4 Summary of Tax Increment Projections over the Five Year Planniqg Period Gateway Project Areas Year FY Ending 2000 FY Ending 2001 FY Ending 2002 FY Ending 2003 FY.Ending 2004 Total Net TI After Obligations $1,128,288 $2,259,823 $2,541,834 $2,790,778 $3,015,478 $11,736,201 Source: South San Francisco Redevelopment Agency Refer to the table in Appendix A for detailed tax increment projections. 5 Rounded to the nearest $10,,)00. South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2£02 Mid-Term Update PROPOSED FIVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITU_tES The Agency has developed programs to implement its goals and objectives during the five year Implementation Plan pe:iod. They are presented along with estimated expenditures in Table IV- 5. The estimated cost o_-'3e five year program of activities is approximately $9.6 million and is also summarized in Tab e IV-5. The $9.6 million in program costs compares to the estimated Agency five-year available funds of $20.5 million. Tax increment revenues for non-housing activities are estimated to provide approximately $9.4 million as summarized in the preceding section, and $11.2 million will be provided by the Gateway Bond Issue. Thus, the Agency currently anticipates ti.at the funds necessary to undertake the proposed five-year program of non-housing activities will be available. The Agency will use its annual budget process to establish funding priorities for the use of any remaining funds. Table IV-5 Proposed Non-Housing Program Activities Gateway Project Area Program Activities Public Inf-astructure Oyster Point Blvd./US 101/SPRR Overcrossing (Flyover) *WiLe.n Oyster Point Blvd. Remove/Relocate Railroad Tracks Stree~ and Circulation Improvements Public Facilities Day Care Center Facility Transil oriented facilities (train, shuttle, ferry~ Public Facilities Improvements Economic Development Property/,~cquisition, Site Preparation and Clean-up TOTAL Five Year Costs $1,000,000 $2,770,000 $3,000,000 $200,000 $1,000,000 $1,000,000 $300,000 $0 $300,( 00 $9,570,£ O0 Source: Ame aded Five Year Implementation Plan, City of South San Francisco Redevelopment Agency, FeOruary 1998, page A-11. South San Francisco Redevelopment Al~ency. * Completed as of this mid-term Plan update South San Francisco Redevelopment Agency IV-9 1999 Five Year Implementation Plan 2£ 02 Mid-Term Update~ 0 0 /~.. 4 LINKAGE B~ TWEEN PROGRAMS & ELIMINATION OF BLIGHTING i~NFLUENCES The Project Area suffers ..fi:om inadequate public improvements, facilities and ~:tilities; substandard, deterioratir_g and obsolete buildings; and a prevalence of depreciated values, impaired investments and economic maladjustment. The Agency's program of redevelopment activities is designed to systematically address the blighting conditions within the Project Area. The Agency's programs will be active in alleviating blighting influences in the following areas: 1. Public Infrastructure The Project Area suffers from congestion on roadways and intersections and the need for new sewer tmnklines and upgrades to the storm drainage system. The Agency's public improvements program will provide for "_nstallation, construction or reconstruction of streets, utilities and other public improvements in o:der to alleviate the problems of the current inadequa-e system. The Oyster Point/U.S. 101 preject will improve access to the Project Area, encouraging economic development and private investment in the area. 2. Public Facilities The Project Area suffers from inadequate public facilities. Over the next five years, the Agency plans to complete a day care center and upgrade transit and shuttle facilities, pl~viding additional services in the Project A:ea. 3. EcOnomic Development The Agency's program in business enhancement, retention and expansion will continue to help enhance the retail and off_ce development of the Project Area. The Agency's program in owner and tenant participation will ensure that redesign and replanning does not produce undue d~slocation and loss to current owners and tenants in tke area, through engaging their participat_'on and encouraging their continuati°n as owners and 'enants in the improved, redeveloped ~_rea. 4. Property Acq:isition, Site Preparation and Clean-up The Agency's program includes acquisition of real property, demolition or removal of buildings and improvements on acq aired property; relocation assistance to displaced occ~apants and disposition of land for redevelopment by private enterprise and public agencies. The Agency will continue to work with the property owners in the Project Area to undertake site preparation and clean-up. South San Francisco RedevelDpment Agency IV-10 1999 Five Yea_- Implementation Plan 2002 Mid-Term Update ¢00 V. SHEARWATER PROJECT AREA A. 'DESCRIPTION OF REDEVELOPMENT PROJECT AREA The Shearwater Redevelopment Project Area (Project Area) consists of 174.5 acres of predominantly urbanized land within the City of South San Francisco. The Project Area is comprised of three adjo'x_ing parcels that lie generally north of Oyster Point Boulevard, east of the Southern Pacific railroad right-of-way adjacent to the Bayshore Freeway (US Route 101), and south and west of tl-_c San Francisco Bay shoreline. The Gateway Redevelopment Project Area lies immediately so~th of this Project Area. The Shearwater Project Area was adopted by the City Council on January 8, 1986. The Redevelopment Plan calls for the development of commercial uses, constructicn of the Oyster Point Boulevard interchange, and improvement of Oyster Point Boulevard. The infi:astructure improvements are largely complete.' Table V-1 briefly summarizes the characteristics of the Project Area. Figure V-1 shows the Project Area boundaries. Table V-1 Summary Description of Project Area Acres 174.5 Adopted January 8, 1986 Base Assess ed Value $3,443,343 ~'-7.~ ".A"'h' :.4~'.~1'~ '~,'~ ,1,".' ~ '~:,[,.'~,-,.~- ',.~..,:' .;~:c ..~.,..~.,.b:,e.. ..~,~ -:~:~.,~:,q,~.~.~.-.~.~,..n,.o ,,:~. ..~>.~.~.~ .:¢~1~ .... ~,,~:~.~5 ~., .~..- .,. .~ ~i-~,~; .... , ,~. ,. . .... Time Limits under AB 1290 Incurring Debt~ Proj eot Aclivities Tax Increment Receipt January 8, 2006 January 8, 2026 January 8, 2036 .:.~a,..;~:.~,;~y,;~:~,KIH:%:.~..;.,...W.,.'~..,'~.:,f :... -~., :..,.....~ , .......... -,..;;.,:.r4~.-~/~..~, .,-:~.:.:....~.,:-,. Financial Lhnits Tax Increment Cap $168,000,000 Bond Limk $52,650,000 City of South San ?rancisco, Redevelopment, Webpage www.ci.ssf.ca.us/ecc/shearwater.htm. May be extended for ten years to eliminate blight by amending the Plan. South San Francisco Redevelopment Agency V-1 1999 Five Year Implementation Plan 2092 Mid-Term Up,date $00 z,.6 Figure V-1 Shearwater Redevelopment Project Area Map Figure V-1 r~r cots ,~-~ Shearwater Redevelopment 'Pre. ject Area Map /~ zo#t~t~. ,', ' I ' ?' - -' / .... ', - , .... , .... / /"~ '~* ~ ' '"~ ~ - ~' / ~.~ · . ~: --,~. ~..- / /,¥ .---~ -.-~ , ~ ~. '~ ' /.,s~ Z~ , ' i e'r-~,-~ ., j i / e' /7~~=.--~ r --~'z' . ~ ~, ,. , .I , , . · /~ ':' '.~.['- .~ ...... D=*=-~-:. ~ r ~ , I .. , . ., / ~' _ .... "*' .,- .' --;f~,,., .' ; ~ ~: ///',,,'~' ~' ~'..~ . · ~' L J · . , ' I t I : /~' /~ ,~) · , '-, . · // .. /", .... .., REDEVELOPMENT PLAN MAP SOUTH SAN' FRANCISCO U.S. SI:EEE PLANT SITE REDEVELOPMEA T PROJECT 1 ~- P~ANNED COMMERCIal, LAND ~ PRO~ECT flOUNOARY South San Francisco Rcdcveloprnent Agency V-2 1999 Five Year Implementation Plan 2C 02 Mid-Term Update B. PROJECT AREA GOALS & OBJECTIVES 1. Goals and Objectives The Implementation Pla: provisions of the CRL require the Agency to establish goals and objectives for the Project Area for the five year planning period. Following are the major goals and objectives to be pursued by the Agency, as originally set forth in the Redevelopment Plan. 1. Eliminate and prevea: blight and deterioration and redevelop the Project A:ea in accordance with the General Pla-_, specific plans, the Redevelopment Plan and local codes and ordinances. 2. Eliminate or amelio_-e_te certain environmental deficiencies, including substandard vehicular circulation systems; i isposal or handling of hazardous materials; and inadequate water, sewer and storm drainage systems. 3. Achieve an environment reflecting a high level of concern for architectural, open space, landscape, and urban design and land use Principles. 4. Replan, redesign and develop undeveloped/vacant areas that are stagnant o: improperly utilized. 5. Encourage investmen: by the private sector in the development and redevelopment of the Project Area by elimL-~ating impediments to such development and redevelopment. 6. Create and develop local job opportunities to replace the Project Area's definer employment base. 7. Establish a conference center to serve the needs of San Marco County and the surrounding areas. 8. Create increased cul.-c.ral and recreation opportunities for visitors as well as area residents, particularly maximizing the potential offered by the waterfront. 2. Program Activities All activities which the Agency will undertake in the Project Area to alleviate blighting conditions and attain these goals can be categorized into three basic program activities: · Public Infrastructure. Improvement, construction and reconstruction of major public systems such as streets and roads, and water, sewage and storm drainage systems. · Economic Developra ~nt. Activities and programs designed to strengthen existing commercial enterprises and shopping areas, and to attract new businesses a_-ad shoppers. · Property Acquisition., Site Preparation and Clean-up. Purchase, improvement and clean- up of property for red!.sposition to private sector developers that will promote and support South San Francisco s redevelopment efforts. South San Francisco Redevelopment Agency V-3 1999 Five Yea_- Implementation Plan 2002 Mid-Term Update These program activities are described in Table V-2. Table V-3 correlates these project activities to the non-housing redevelopment goals stated above. Table V-2 Non-Housing Program Activities Shearwater Project Area Program Activ'ties Public Infrastructure Oyster Point Blvd./US 101/SPRR Overcrossing (Flyov~'~ Street and Circulation Improvements Economic Development Business enhancement, retention and expansion Description Construction of four-lane overcrossing and associated freeway ramps, including related fight-of-way acquisition (southbound Flyover to Gateway Blvd.). *Widening of Oyster Point Blvd. fi-om Gateway to Marina Blvd. Upgrade streets, curbs, gutters and sidewalks to meet City standards, improve access to and within the Project Area, and eliminate visual blighting influences. Undertake activities to strengthen office and R&D and hotel development including supporting retail and restaurant uses. Property Acquisition, Sil e Preparation and Clean-up Acquisition of real property, demolition or re x~oval of buildings, improvements on acquired property, relocation assistance to displaced occupants, and disposition of land _-'or redevelopment by private enterprise and public agencies. Source: Redevelopment Plan for the South San Francisco U.S. Steel Plant Site, January 1986. f Jpdated with information from the Amender_ Implementation Plan, Redevelopment Agency, February 11, 1998, page A-8-9. * Completed as of this mid-term Plan update C. HISTORICAL ACTMTIES & AGENCY ACCOMPLISHMENTS The Historical Activities and Agency Accomplishments section is divided into two parts in this report: Historical Activilies and Accomplishments from the creation of the project area through 1998/99 and Historical Activities and Accomplishments ~om 1999/00 through the end of 2002. Historical Activities an t Accomplishments 1989/90 through 1998/99 The Project Area is the fo .-:mer site of the U.S. Steel Company plant, which closed operations on July 1, 1983. The U.S. S :eel buildings were demolished in early 1984. In February 1986, the Re(_evelopment Agency entered into an Owner Participation Agreement with Chiltem Development Corporation for the development of the former U.S. Steel Company property in the Shearwater Redevelopment Project Area. The City adopted a SI: ecific Plan for South San Francisco Redevelopment Agency V-4 1999 Five Year Implementation Plan 2C 02 Mid-Term Update the Project Area, whiek 3rovided a plan for redevelopment of the site into a commercial/cultural/recreational complex. However, the project did not move forward due to a delay caused by a lawsuit by San Francisco International Airport over the Environmental Impact Report on the project. By the time the lawsuit was resolved in March 1990, the domestic and international financial markets had substantially changed, and the financing of the project as proposed was no longer 5easible. Table V-3 Crosswak Between Redevelopment Goals and Program Aet'.vities Shearwater Project Area South San Francisco Redevelopment Agency Redevelop:r ent Goal Eliminate and prevent blight and deterioration and redevelop the Project Area in accord with the General · Plan, specific plans, the Redevelopment Plan and local codes and ordinances. Eliminate or ameliorate certain environmental deficiencies, including substandard vehicular circulation systems; disposal or handling of hazardous · materials; inadequate water, sewer and storm drainage systems. Achieve an environment reflecting a high level of concern for architectural, open space, landscape, and · urban design and land use pr'_n.~iples. Replan, redesign and develop undeveloped/vacant areas · Program Activ'.ties Public Economic Infrastructure Development Property Acquisition, Site Preparation and Clean-Up ~_h. i__ch_.~.e_._S.~gnant or imp_rgpe_rly utilized. Encourage investment by the private sector in the development and redevelopment of the Project Area by · eliminating impediments to sach development and redevelopment. Create and develop local job opportunities to replace · the Project Area's defunct en~. '_oyment base. Establish a conference center to serve the needs of San Mateo County the surrounding areas. Create increased cultural and recreation oppommities for visitors as well as area resi~_ents, particularly maximizing the potential offered by the waterfront. Source: Redevelopment Plan _-'or the South San Francisco U.S. Steel Plant Site, January 1986 South San Francisco Redevelopment Agency V-5 1999 Five Year Implementation Plan 2032 Mid-Term Update wOO 5O No new development occurred in the Project Area until 1997. In 1996/97 Bay West Cove, LLC acquired the property ~.nd implemented a Remedial Action Plan (RAP) for the clean-up of toxic contamination of the site. The on-site land has been cleaned up and the Bay Area Water Quality District has approved clearance for development.3 A new Specific Plan for the area was adopted in 1997 and a Disposition and Development Agreement and Owner Participation Agreement with Bay West Cove, LLC was approved. The new Specific Plan's land uses iaclude hotels, offices, businesses and l:rofessional services. Following is a list of projects and activities accomplished over the last three years: Public Infrastructure · Oyster Point Blvd.f_lS 101/SPRR Overcrossing: The first phase of thc Oyster Point Blvd./US 101 Overpass was completed. Economic Developmer-: · Adopted new Bay W~st Cove Specific Plan for the Project Area, which includes proposed and/or under construction projects. · Began construction of 349 rooms in two hotels by Marriott Corporation: Residence Inn (152 rooms) and Courtya;d by Marriott (197 rooms). The hotels will be completed by the spring of 2000. Property Acquisition --.rd Clean-up · Regional Water Qual'_'ty Control Board approved a Remedial Action Plan for the cleanup of the toxic contaminants on the site. This action has remcdiated the most significant blighting conditions in the Project Area.4 Historical Activities ar~ Accomplishments 1999/00 through 2002 Public Infrastructure · Reconstructed and widened Oyster Point Boulevard to four lanes. Economic Development · Completed construe-ion of 349 rooms in two hotels by Marriott Corporation: Residence Inn (152 rooms) and Co~myard by Marriott (197 rooms). RedeVelopment Consultant's Report on Project Tax Increment Revenues for the Gateway Redevelopment Project Area and other Redevelopment Projects in South San Francisco, Beyer & Associates, February 2, 1999, page 7. Included in the 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Project~), City of South 8an Francisco Capital Improvements Financing Authority, February 17, 1999. Amended Five Year Implementation Plan, City of South San Francisco Redevelopment Agency, February 1998, page A-8-9. Redevelopmen- Consultant's Report on Project Tax Increment Revenues for the Gateway Redevelopment Project Area and other Redevelopment Projects in South San Francisco, Beyer & Associates, February 2, 1999, page 7. Included in the 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Projects), City of South Sar_ Francisco Capital Improvements Financing Authority, February 17, 1999. South San Francisco Redevelopment Agency V-6 1999 Five Year Implementation Plan 2( 02 Mid-Term Update 51 D. FIVE YEAR i?LANNING PERIOD REVENUES Over the next five years, the Agency will undertake those activities that can be financially supported by its revenre stream. The Agency's revenue source is annual tax ircrement revenues. Tax increment revenues generated in the Project Area during the five year planning period are projected by the Agency to contribute approximately $3.3 million towards nor.-housing improvement project costs in present value, FY 1999/00 dollars. Table V-4 Summary of T~ x Increment Projections over the Five Year PlannSng Period Shearwater Project Area5 Year Net TI After Obligation FY Ending 2000 $180,000 FY Ending 2001 $540,000 FY Ending 2002 $790,000 FY Ending 2003 $910,000 FY Ending 2004 $920,000 Total $3,340,000 Source: South San Francisco Redevelopment Agency Refer to the table in Appendix A for detailed tax increment projections. PROPOSED 2~VE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES The Shearwater Project Area has committed significant funds to the Oyster Poiat Boulevard Widening Project and to the proposed Oyster Point Flyover Project. All anticipated tax increment revenues generated by tkis Project Area have been committed to these projects.~ Estimated expenditures are presented in Table V-5. The estimated cost of the five year program of activities summarized in Table V-5 is approximately $6.2 million. The $6.2 million in program costs is significantly more than the estimated Agency five yetr revenues for non-housing activities of approximately $3.3 million as summarized in the preced:'.ng section. Thus, the Agency currently anticipates that other funds will be needed in order to unaertake all of the proposed non-housing activities. Rounded to the nearest $10,0C0. South San Francisco Redevelopment Agency. South San Francisco Redevelopment Agency V~7 1999 Five Year Implementation Plan 2092 Mid-Term Update Table V-5 Proposed Non-Housing Program Activities Shearwater Project Area Program Activities [ Public I~_~rastructure Oyster Point Blvd./US 101/SPRR Overerossing (Flyover) Oyster_ Point Hookramps Wider_ Oyster Point Blvd. from Gateway to Ma-ina Blvd. Street and Circulation Improvements Econom'c Development Property Acquisition, Site Preparation and Clean-up TOTAL Five Year Costs $3,100,000 $2,000,000 $1,000,300 $0 $0 $100,300 $6,200;300 Source: Amended Five Year Implementation Plan, City of South San Franc:sco Redevelopment Agency, February 1998, page A-11. South San Francisco Redevelopment Agency. LINKAGE B?_TWEEN PROGRAMS & ELIMINATION OF BLIGHTING 5NFLUENCES The Agency's program c f redevelopment activities is designed to foster develo'~ment in the Project Area, which will lead to alleviating or eliminating blighting conditions such as underutilized property d~e to toxic contamination, inadequate infrastructure and depreciated values. The Agency's acSvities include investment in the development or improvement of public improvements, which w:_l~ induce private investment in productive reuse and redevelopment of the area. The Agency's programs will be active in alleviating blighting influenc:s in the following areas: 1. Public Infrastructure The Project Area has numerous deficiencies in public infrastructure, chiefly related to traffic circulation. Any future development to occur in the Project Area requires the improvement of the Oyster Boulevard/US 101/SPRR Overpass. This is the Agency's primary public infrastructure project in the Project Are~_. The Agency is also active in other street and circulation improvements, including the completion of widening and reconstruction of Oyster Point Boulevard from the Project vici_'fity to Oyster Point, which is also a prcject in the Gateway Project Area. These improvements are critical to the area, especially as commercial development currently under development or scheduled will add to the traffic levels. South San Francisco Redevelopment Agency V-8 1999 Five Year Implementation Plan 2002 Mid-Term Update ,.00 53 2. Economic Development Adverse conditions in t2ae Shearwater area include unemployment resulting from jobs lost through the gradual closure and abandonment of the U.S. Steel Plant. The Age acy's program in business enhancement, ~tention and expansion will foster retail, office, R&D and hotel development and job growth. 3. Property Ac~ rfisifion and Clean-up Toxic contamination w~_s the primary blighting condition in the Project Area. _~e Remedial Action Plan has remediated the on-site land and provided for certain economic development of the property. Once the remaining parcels are developed in conformance with ti e Bay West Cove Specific Plan, the economic and physical blight will have been eliminated. South San Francisco Redevelopment Agency V-9 1999 Five Year Implementation Plan 2602 Mid-Term Update 54 VI.AFFORDABLE HOUSING ACTIVY?IES A® IMPLEMENt. ?ATION PLAN REQUIREMENTS: HOUSING ACTMTIES The housing portion of-t_e Implementation Plan is required to set forth specific goals and objectives in enough de;~.il to measure performance. The Plan must include the following affordable housing plan_-fng components: · The number of housing units projected to be rehabilitated, price-restricted, assisted or destroyed. · The Project Area's Affordable Housing Production Plan (AB 315 Plan), as :lescribed below. · Identification of proposed locations for replacement housing, which the Agency will be required to produce pursuant to Section 33413, ifa planned project will resalt in the destruction of existing affordable housing. · An explanation of how the goals, objectives, programs and expenditures se; forth in the Implementation Plar_ will implement the affordable housing requirements of Community Redevelopment Law ("CRL"), including a housing program for each of the five years of the Implementation Plax_. · The amount available in the Low and Moderate Income Housing Fund, esti:nates of deposits into the Housing Func during the next five years and the Agency's plans fo.-' using annual deposits to the HousSr_g Fund. Be MAJOR STAT?UTORY PROVISIONS OF CRL FOR AFFORDABLE HOUSING The major statutory affordable housing requirements imposed on redevelopment agencies by CRL may be categorized generally as: · Housing Production _'~equirement- Specified minimum percentages of new or rehabilitated housing units in a pro/'ect area axe to be made available at a specified affordable housing cost. · Replacement Housing Requirement- Agencies must replace housing units removed fi:om the housing stock as a resralt of redevelopment activities. · Housing Fund Requi :ement- Redevelopment agencies axe required to expend specified percentages of tax increment revenue for provision of affordable housing. These three requirements are described in greater detail in the following subsecAons. South San Francisco Redevelopment Agency VI-1 1999 Five Year Implementation Plan 2002 Mid-Term Update O0 n5 1. Housing Prod'action Requirement and Housing Production Plan Project areas created by redevelopment plans adopted on or after January 1, 1976, and territory newly added to project an'cas by amendments adopted on or after January 1, 1976, must meet an affordable housing inclusionary production obligation (the Housing Production Requirement). CRL requires that wher_ housing is developed or substantially rehabilitated in ~_ project area by public or private entities ~ther than the agency, including entities receiving agency assistance, 15 percent of the total number of units must be affordable to low and moderate income households. Of those units, 40 percen: must be affordable to very low-income households. The 40 percent very low-income requirement translates to 6 percent of the units developed ant substantially rehabilitated in the Project Area (40 percent of 15 percent equals 6 percent). CRL also requires that 3( percent of all housing developed or substantially rehabilitated by an agency mUst be available at affordable housing cost to low- and moderate-income households. Of those units, 50 percen: must be affordable to very low-income households. The 50 percent very low-income requirement translates to 15 percent of the total units develol: ed or rehabilitated by the agency (50 percen: of 30 percent equals 15 percent). This requirement a?plies only to units developed directly by an agency and does not apply to units developed by housing developers pursuant to r_greements with an agency. The CRL requires agencies to report on historical production and adopt a plan -.'or each project area showing how the agency intends to meets its Housing Production Require_r~ent (the Housing Production Plan) for the following time periods: · Historical production from the adoption of the Adoption of the Housing Production Plan through 1999 · Annual production over the next five years (2000 to 2004) · Production over the next ten years (2000 to 2009) · Production through lhe life of the Housing Production Plan (2009 to the end of the Plan) The plan must include estimates of the number of new or rehabilitated resident-al units to be developed within the project area and the number of units for very low-income households and low- and moderate-inco.-r e households which will be developed in order to meet the requirements of Section 33413. 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 very low, low and mode:rte income units. The plan is to be reviewed every five years in conjunction with updating the housing element. The South San Francisco Redevelopment Agency has not developed housing d~rectly, but has provided funds to both for-profit and non-profit agencies for the development and preservation of low and moderate-income housing. All four Redevelopment Plans were adopted after January 1, 1976 and are subject to the CRL housing production requ'rement. However, only the Downtown/Central and E1 Camino Corridor South San Francisco Redevelo-~ment Agency 1999 Five Year Implementation Plan 2( 02 Mid-Term Update Project Areas have housi ag within their Project Area boundaries and need to rr_eet the production requirements. The Housing Production Plan for the Agency in the Downtown/Central Project Area is set forth in Section C. The Housing Production Plan for the Agency in :he E1 Camino Corridor Project Area is set forth in Section D. Section E describes potential opportunities for housing production in both of these Project Areas. The Gateway and Shearwater Project Areas have not produced, nor will produce, housing within their project lifetimes, and therefore are not subject to Housing Production Rec uirements and preparation of a Housing Production Plan. 2. Replacement _ .qousing Requirement When residential units Lousing low- and moderate-income persons are destroyed or taken out of the low- and moderate-i aeome market as part of a redevelopment project, an agency must replace those units with rqew or newly rehabilitated low- and moderate-income units within four years. At least thirty days prior to acquiring property or adopting an agreement that will lead to the destruction or remov~_l of low- and moderate-income housing units, an agency must adopt by resolution a replacemen: housing plan. The Replacement Housing Plan generally must include: · The general locatior_ of housing to be rehabilitated, developed or constructed to meet the particular Replacement Housing Requirement. · An adequate means o.~ financing such rehabilitation, development, or const_--uction. · A finding that the re-~acement housing does not require the approval of the voters pursuant to Article XXXIV of the California Constitution, or that such approval has 3een obtained. · The number of dwel.ing units housing persons and families of low or moderate income planned for construction or rehabilitation. · The timetable for meeting the plan's relocation, rehabilitation and replacement housing objectives. The Replacement Housing Requirement applies to project areas established by redevelopment plans (or areas added by plan amendments) adopted on or after January 1, 1976, and merged project areas regardless o~'the date of establishment of the individual project areas subsequently merged. Replacement units may be located anywhere within the territorial jurisdiction of the agency (CRL Section 33/--13 [a]). An agency may construct replacement housing itself or cause that housing to be develo-~ed through agreements with housing developers. The CRL allows the rep'_~.cement of fewer units if the number of bedrooms produced is equal to or exceeds the number of bedrooms in the units that are demolished and the replacement units are affordable to the sarre income level of households as the destroyed or removed units. (CRL Section 33413[f]) The basic income and af~>rdability standards for replacement housing are the same as those for use of Housing Fund mor_eys. The units must be available at affordable housing cost to South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2002 Mid-Term Update JO0 a7 households of low and moderate income. In addition, for dwelling units destroyed or removed after September 1, 1989, CRL requires that 75 percent of the replacement units be available at affordable housing cost to the same income level of households (very low, low, or moderate income) as the householcs displaced from the units removed or destroyed (CRL Section 33413[a]).I Replacement housing mt. st remain affordable the longest feasible time, but not less than the period of time that the lazad use controls of the redevelopment plan remain in effect (CRL Section 333413[c]). The afford~.bility controls on such units must be made enforceable by recorded covenants or restrictions. In the City of South Sar_ -~rancisco, Agency actions have resulted in the removal of housing units in the Downtown/Central Project Area. The Agency has not removed or destroyed housing units in any of the other Project Areas since adoption. In the next five to fifteen years, Agency activities planned in the Willow Gardens housing rehabilitation project m,.y result in the loss of four to eight housing units in the E1 Camino Project Area. If these ur_i~s are removed, the agency will replace them with new or newly rehabilitated low- and moderate-income units within four years. 3. Goals, Objectives & Programs Requirement The CRL requires the Ag:ncy to provide an explanation of how the goals, objectives, programs, and expenditures set fork in the Implementation Plan will implement the affordable housing requirements, including a housing program for each of the five years of the Implementation Plan. The goals, objectives and programs will be discussed in Section F. 4. Housing Fund Requirement The CRL requires the Ag~mcy to set aside in a separate segregated Low and Moderate Income Housing Fund (the "HorsSng Fund") at least 20 percent of all tax increment revenue generated fi:om its project areas for the purpose of increasing, improving and preserving the community's supply of low and moder~.te income housing. In the City of South San Francisco, the Agency deposits 20 percent of the tax ir_crement revenue fi:om each of the four Project Areas into the Housing Set-Aside Fund. The Agency's deposits are described in Section G b :'_ow. The Agency has successfully leveraged these Housing Set-Aside funds with other public ~_d private funding sources in the creation and preservation of affordable housing units. XFor example, if 100 units were destroyed and 50 were very low income units, 30 were lower income units, and 20 were moderate income units, taen, of the 100 replacement units, at least 38 (75% of 50) must be affordable to very low income households, at least 23 (75% of 30) to lower income households, and at least 15 (?5% of 20) to moderate income households. The remaining 24 replacement units need only be affordable to households with incomes not exceeding 120% of area median income. South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2032 Mid-Term Update a. Housing Fund.Targeting Under the CRL, Housirg Fund moneys must be targeted to specific income levels. Agencies are specifically required to expend their Housing Funds to assist very low-, low- a_ad moderate- income households, ger_crally defined as: Very Low-Income Low-Income Moderate-Income Incomes at or below 50 percent of area median income, adjusted for family size Incomes between 51 percent and 80 percent of area median income, adjusted for family size Incomes between 81 percent and 120 percent of area median income, adjusted for family size Over the life of the redevelopment plan, the assistance must be provided in at least the same proportion that the number of housing units needed for the very low and low ir_come categories (not being provided by ot aer governmental programs) bears to the total number of units needed for all three income categories. Table VI-1 2002 San Mateo County Maximum Incomes by Income Category and Household Size Household Size: 1 2 3 4 5 6 7 8 Very Low $35,650 $40,700 $45,800 $50,900 $57,950 $59,050 $63,100 $67,200 Lower $57,000 $65,150 $73,300 $81,450 $87,950 $94,450 $.01,000 $107,500 Median $60,250 $68,900 $77,500 $86,100 $93,000 $99,900 $~06,750 $113,650 Moderate $72,300 $82,650 $92,950 $103,300 $111,550 $119,850 $.28,100 $136,350 Source: State of California, Department of HCD, February 2002. South San Francisco's Housing Element sets out the affordable housing need for the City as identified by the Associ~_t-on of Bay Area Governments (ABAG) in its regional "fair share" allocation. The following table shows the "fair share" allocation and the targeting objective, which will be applicable to the Agency from ABAG's 2000 regional housing needs. South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2032 Mid-Term Update Table VI-2 Affordable .~tousing Need (Regional Fair Share) by Income Category Income Level Fair Share Remaining Need by Allocation Income Level Very Low Ir_come Low Income Moderate ;:r come ~.60 Source: Regional Housing Needs Determination Construction Need Distributed by Income Category 1999-2006 Housing Element Period, San Mateo County, Sout-a San Francisco. Several new housing developments have been constructed in the City since this report was first prepared in 1999-00. Table VI-2 has been updated and lists the number of unks needed to meet the regional fair share hoasing targeting requirements. To meet this requirement, the Agency will need to make available at least 4136 percent of units assisted with Housing Fund moneys available for very low-income households and at least 20 percent for low-intone households. The remaining 39 percenz of units assisted by means of the Housing Fund may be affordable to any of the three income categories. The Agency developed an affordable housing strategy during its analysis for tlr. e Inclusionary Housing Ordinance which identified the greatest need for housing to be in the low-income and very low-income ranges of affordability. In general, the private development community has the capacity to create the market rate residential units required by ABAG's fair shoe allocation. The Agency has also concluded that the private development community will be ab.e to create the moderate-income units required under ABAG's fair share allocation determina-.ion. However, the Agency realizes it w~ll be extremely difficult for the private development community to create the very low-into .:rte units due to the extensive subsidies needed to make units affordable to very low-income people. The Agency has made a commitment to attempt to create the low- and very-low income housing units the City is required to produce by the ABAG Regional Housing Needs Determination. Under this plan, the private development cormr_unity shares responsibility for the pro(_uction of housing suitable to all economic sectors of-he conununity while the Agency's limked resources are targeted toward meeting the needs of the lowest income households in South Sar_ Yrancisco. The analysis conducted :o prepare the City's Inclusionary Housing Ordinance tlso identified sites suitable for residemial development. Based on an analysis of the land available for housing, land use requirements, build out projections, and the number of units that coul(_- be built in South San Francisco, the City determined that the Ordinance's inclusionary housing requirement would be twenty percent (20%;. Assuming residential development occurs as projected in build out scenarios, the 20% inelus:onary requirement would produce the three hundred and sixty (360) moderate income housing units required by the ABAG determination. The Agency's goal would then be to produce 277 very low- and 131 low-income rental units, thus meeting the total number South San Francisco Redevelopment Agency 1999 Five Yea.- Implementation Plan 2002 Mid-Term Update ,.,00 6O of units required. With :espect to ownership units, the City's First Time Home~uyer program will target buyers at 120% of median income unless other sources of funds car be combined to reduce the affordability range down to 70 to 80 percent of median income. b. Affordable Hocsing Cost & Duration of Affordability Housing assisted with Housing Set-Aside fund moneys must be "available at an affordable housing cost." For hous2r_g assisted by these funds after January 1, 1991, the following affordable housing cost definitions apply: AFFORDABLE HOUSING COSTa Housing receiving assistance after January 1, 1991 Income Level Very Low Income Low Income Moderate Income Rental Housing 30 percent of 50 percent 30 percent of 60 percent 30 percent of 110 percent Ownership Housing 30 percent of 50 percent 30 percent of 70 percent 35 percent of 110 percent3 The CRL also requires the placement and recordation of affordability controls on any new or substantially rehabilitate~_ housing assisted with Housing Fund moneys. In the case of new or substantially rehabilitatei rental housing, controls must be placed on the assisted housing units requiring them to remain affordable for the longest feasible time but not less than 30 years. For owner-occupied housing, the units must remain affordable for the longest feasi31e time, but not less than 30 years, altho-agh a shorter duration is permitted if the Agency recoups its Housing Fund investment when an assisted owner-occupied unit is sold at a non-affordable price or to a non-qualifying buyer. According to statutory definition, the "longest feasible time" requirement includes, but is not limited to, a period of unlimited duration. Ce AFFORDAB.~'~E HOUSING PRODUCTION (INCLUSIONARY) OBLIGATIONS- DOWNTOWN/CENTRAL PROJECT AREA This section constitutes -~_e Housing Production Plan of the South San Francisco Redevelopment Agency's Implementafioa Plan for the Downtown/Central Project Area. The Agency expects to meet its legal housing production obligations under Community Redevelopment Law. The tables documenting historical ~nd projected residential units have been amended for tiffs report based on actual conditions and revised projections for potential housing development in -he Downtown/ Central Project Area. The housing production numbers used in this report represent the best available information to date. The Redevelopment Agency and City have analyzed Building and Planning Department and Agency records to prepare these projections. 2 The fu'st percentage means he percent of income that can be spent on housing costs. The secend percentage means the percent of area median income. 3 But no less than 28% of actual income. South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2C 02 Mid-Term Update 61 The first part of this section describes historical housing production within the Project Area from the adoption of the Redevelopment Plan in July 1989 through 1999 and historical housing production from 1999-2000 through 2002. The second part discusses future hoasing production within the Project Area as follows: · Annual production goals for 2000 to 2004 · Projected production over the 2000 to 2009 ten year period · Projected production :hrough the life of the Project (2010 to 2029) The third and fourth parrs discuss affordable housing production in the Project Area and the Agency's strategy for meeting its inclusionary obligation. 1. Historical Hot.sing Production in Project Area From 1989 through 1999, a total of 104 housing units (102 affordable) were developed in the Downtown/Central Project Area. From 1999-2002 four (4) units (one affordable) were developed. Following are further details of these projects: a. New Constructio-~- Multifamily Historically, from the ai option of the Plan in 1989 through 1999, a total of eleven multifamily housing units were deve_oped in the Downtown/Central Project Area. These urits are the Sundial Apartments, an affordable housing development, developed in 1989 by the Mic Peninsula Housing Coalition, in agreement with the Redevelopment Agency. The Mid Peninsula project converted 22 single room occupancy units to 11 one-bedroom apartments. The Agreement between Mid Peninsula and the Agency required that the units ~e made available to very low income individuals and that Mid Peninsula manage and maintain tke facility as permanent housing. In tire event the Mid Peninsula should sell the property, the Note from the Agency would become dr_e and payable immediately, and the Agency would require that the new owner maintain the units as very low-income housing. b. New Construction- Single Family No single-family units were constructed in the Project Area through 1989. In 2002, four new single-family units were developed at 260-290 Hillside. One of these units, 29,) Hillside, is affordable to moderate-income families. The project was totally financed by a .~rivate developer, and the affordable unit has a 30-year resale restriction to maintain affordability. c. Substantial Reha'>ilitafion AB 1290 provides that an agency count substantially rehabilitated multifamily rental dwelling units (with three or more units) or single-family dwelling units (with one or two units) in its production totals. Under AB 1290, substantial rehabilitation is defined as rehab-litation, the value of which constitutes at least '25 percent of the after rehabilitation value of the dwelling, inclusive of the land value. Based >n its knowledge of housing prices, the Agency set a minimum for substantial rehabilitation production of at least $50,000 in rehabilitation cost pc unit, assuming South San Francisco Redevelopment Agency VI-8 1999 Five Yea~ Implementation Plan 2C 02 Mid-Term Update ,00 62 the after-rehabilitation v~lue of a housing unit is $200,000 or more. From 1989 through 1999, two housing units have been substantially rehabilitated by private individuals without affordability restrictions :_n the Project Area. While the City has a reLabilitation program utilizing CDBG funds (with an annual budget of about $150,000) for single-family housing rehabilitation, the Agency does not utilize its funds to support substantial rehab~_litation efforts. However, the Agency contributes Ho'asing Set-Aside funds to a loan program to owners of commercial and residential unreinforced :nasonry (URM) to retrofit residential un!ts to be occupied by very low, low and moderate-income households. The Agency has provided funds for the substantial rehabilitation and retrofit of the following buildings containing res!Cential units in the Downtown: Metropolitan Hotel The substantial rehabilitaSon of the Metropolitan Hotel, an historic downtown hotel, was identified in the prior Implementation Plan as a multi-year project. This renov~ tion was initiated in 1993 and completed in 1999. This hotel, consisting of 66 SRO units, was rehabilitated with a combination of Redevelopment Agency and HOME funds. The Agency and the City committed $853,000 in Agency housing funds and $430,000 in HOME funds for the residential units and $340,000 in Agency (no a-housing) funds for the retail/restaurant portion of the building. The 66 SRO units will be restricted to very low-income rents through the year 2029. Mexico Tipico Restauran: The Agency provided a ~_oan of $125,000 for the retrofit and rehabilitation of tee Mexico Tipico Restaurant. The housing trait on the second floor was rehabilitated in April 1998. A very low- income owner occupies -]~Js dwelling unit. The unit is deed-restricted to very kw-income occupancy until the year 2019. Grand Hotel The Grand Hotel, located at 731 Airport Boulevard, contains 16 SRO units. The City provided $900,000 in Redevelopn.ent Agency funds for the substantial rehabilitation and_ seismic upgrade of these units. These units were opened in early 1999, and will be deed restricted to very low- income occupancy until -te year 2029. Eight-Plex at 739 Airport Boulevard The City provided $400,300 in HOME funds for the remodeling of eight apartraents located at 739 Airport Boulevard. The remodeling will include seismic upgrade and disabled accessibility modifications. Although t2ais is not a Redevelopment Agency sponsored projec-, the units, which will be deed-restricted fcr very low income tenancy until the year 2029, can be counted toward meeting the production goals in the Project Area. South San Francisco Redevelopment Agency · 1999 Five Year Implementation Plan 2C 02 Mid-Term Update wOO 2. Projected Future Housing Production and Agency Obligations The Agency has carefully evaluated the potential for future housing unit pro& ction in the Project Area to the end of the Downtown/Central Plan. Based on an analysis o?the potential for new development on existing vacant residential parcels, the Agency has developed a projection for the number of units likely to be built in the Downtown/Central Project Area over the life of the Plan. Table VI-3 summarizes the future potential for housing production within the Project Area over the life of the ?rojeet. Table VI-3 Ho'~dng Production SummaryHistorical & Projected Downtown/Central Project Area Total Units Produced Year New I Rehab I Total Historical 1989-1994 1995-1999 2000-2002 11 2 13 4 87 91 4 0 4 . ~..4.:..~.:~27~, .~x;.... ~.., ..,~. · . .., ..... .'.~. ' :: ,::- -~ -~?~'--',~ ........... ':" Projected 2002-2004 444 8 52 2005-2029 0 0 0 · '. !~': .'~..~.. ...,. :, .-. .~.,. ~ ... .... .. '~ -'" ' ~, '.~ '.~,~,:"~v"l~.. .~ ,"'~- , ~ ~;~:~ ~;" ;'~.~ ':..?~ ,.'::';:~ ' ~ 'b' .... . "'.: .."~ ',' '-, · '~;~:,~ -':.~ ¢~¢,~-~-~':~s¢,': :.~' :.~ ~:: ? Total (1989-2004) 63 97 160 Total (1989-2029) 63 97 160 Source: South San Francisco Redevelopment Agency & Building Dept. 3. Affordable (Inclusionary) Housing Production This section constitutes -te Housing Production Plan for the Downtown/Central Project Area of the South San Francisco Redevelopment Agency's Implementation Plan. It discusses affordable housing production in tl-_e Project Area and the Agency's strategy for meeting its inclusionary obligation. The Agency expects to meet its legal housing production obligations under Community Redevelopraent Law, including more recent legislation related to l'_ousing, AB 315 and AB 1290. The Agency itself has not developed any housing in the community in the past, nor does it have plans to do so at any time in the future. The Agency has found it most cost effective and administratively efficient to provide financial assistance, as necessary, to priva e developers (both for-profit and nonprofit) and homeowners to produce and rehabilitate affordable housing, 4 Paradise Valley 44 units, Escape SRO 8 units. South San Francisco Redevelopment Agency 1999 Five Yeas Implementation Plan 2( 02 Mid-Term Update than for the Agency to ac: as a housing developer. Consequently, the Agency ~ oes not have an historical affordable housing production requirement with respect to Agency-developed housing. In the Downtown/Central Project Area, the Agency has exceeded its 15 percen: affordable housing production (inc-usionary) requirements for the historical period 1989 tv 1999 and 1999- 2002. Of the 108 units c~ustmcted or substantially rehabilitated, 102 were very low-income units and one was a moderate-income unit. Of these eleven units were at the Sundia. Apartments, one unit at Mexico Tipico, 16 units at the Grand Hotel, eight apartments at 739 AiDort Boulevard, and 66 units at the Metropolitan Hotel, and in 2002 one unit at 260-290 Hillsid: Blvd. With an obligation to produce a total of 16 units of affordable housing, with seven of these units to be very low-income l:ousing, the Agency has far exceeded its production rec uirements for the Project Area. From 2000 through the etd of the Plan, the Agency will continue to exceed its affordable production obligation. Ta'>le VI-4 shows historical and projected housing prod-action from 1989 through 2029 and the inclusionary obligation incurred by the Agency. The projections are based on potential development opportunities that have been identified in the Project Area. These include a potential for 44 units of new housing at Paradise Valley and eight units substantially rehabilitated at the Escape Single Room Occupancy Hotel. A complete listing of potential projects is d"scussed in Section E of this report. 4. Replacement Obligation When residential units ho'asing low and moderate-income persons are destroyed or taken out of the low and moderate income market as part of a redevelopment project, an agency must replace those units with new or newly rehabilitated low and moderate-income units within four years. The CRL also requires tlmt for units removed after September 1, 1989, 75 percent of the replacement units must be affordable to households earning at the same income levels as the households displaced. T-~e CRL allows the replacement of fewer units if the nu ~ber of bedrooms produced is equal to or exceeds the number of bedrooms in the units that are demolished, and the replacement units are af-:'ordable to the same income level of households as the destroyed or removed units. (CRL Sec:ion 33413 [f]) The Agency had an obligation to replace units removed at the Sundial Apartments site. This site was completed, and the new units were approved for occupancy on August 15, 1989. The project involved the conversion of 22 SRO existing units to eleven studio apartments, leaving a replacement obligation of eleven new units. The eleven units were partially replaced by the major rehabilitation of s:x restricted-income units completed in 1993 with CDBG funds. The remaining five units were replaced with low-income units in the Metropolitan Hotel, which began rehabilitation in 1993. Because the Sundial development was completed and approved for occupancy before September 1, 1989, the Agency did not have to replace the u_nits by specific income level. South San Francisco Redevelo-~ment Agency VI-Il 1999 Five Year Implementation Plan 2(}02 Mid-Term Update In 1995, a restaurant wi-Jr_ a three-bedroom residential unit on the second floor was demolished for the construction of a 34-unit hotel at 751 Airport Boulevard. In addition, two single-family homes were destroyed fo_-' construction of a downtown parking lot. One house, located at 432 Baden Avenue, contained three bedrooms, and the other house, located at 429 Third Lane, contained two bedrooms. The Agency has to replace the three units, or a total of eight bedrooms from the two houses ant :)ne apartment. The Agency has met the replacement obligation for these dwelling units, which were occupied by moderate-income ho-aseholds, with the completion of the rehabilitation of four units on Commercial Avenue, in tl ae summer of 2001. The four replacement units have been leased to very low-income households, three of whom are Section 8 certificate holders. Two of these families were permanen :ly relocated from the Willow Gardens units when those units underwent rehabilitatiom In addition, the Agency purchased a vacant house in the Downtown/Central Project Area, located at 205 Baden Avenue, wl:_ich was vacant at the time of purchase. This house, which was purchased from a moderate-income owner, contained three bedrooms. During 2001 was demolished to develop a new furniture showroom in the downtown project area. The house has been replaced with another three-bedroom house, bought by the City of South San Francisco, and leased to Shelter Network for use as a transitional house for families. The transitional house is located at 109 Longford Avenue which is not in the downtown project area but is another three bedroom house leased to an extremely low-income family with a female head of household. Since it is not in the pro/'ect area a two for one replacement is required. Thus, some of the newly rehabilitated units at the Metropolitan Hotel may be counted toward the replacement value of three bedrooms, to complete this replacement obligation. At this time, the City does not have an unmet replacement housing obligation ~nd in fact has a positive balance of production units, as shown on table VI-5. South San Francisco Redevelo-~ment Agency VI-12 1999 Five Yea_- Implementation Plan 2002 Mid-Term Update Table VI-4 · lousing Production & Affordable Obligation Historical and Projected Downtown/Central Project Area Affordable Obligation [2] Affordable Production Total Total Total Very Affordable: V. Very Affordable: V. Uni :s Low Low, Low, & Low Low, Low, & Year [ 1i Only Mod Only Mod Historical 1989-1994 13 1 2 11 11 1995-6/1999 91 6 14 91 91 7/1999-12/2002 4 0 1 0 1 Total (1989~1999) -08 7 17 102 103 6% 15% 94% Projected 2002-2004 [3] 52 3 8 10 19 2005-2029 0 0 0 0 0 Sur[ lus (Defici0 Production Total Very Affordable: V. Low Low, Low, & Only Mod 10 9 85 77 0 0 95 86 7 11 0 0 Total (1989-2004) 10 24 112 Pereen~ 6% 15% 70% Total (1989-2029) 10 24 112 6% 15% 70% [1] Total units includes new and substantially rehabilitated units in project area at all income levels: very low, low, moderate and market rate. [2] The CRL requires that a: least 15% of total units are affordable to very low, low or moderate income households; and that at least 40% of the 15% are affordable to very low income households (equal to 6% of units in aggregate). [3] Four of the units will be rehabilitated outside of the Project Area (on Commercial Avenue), and therefore count towards the Agency's affordable production totals as one unit for every two ~roduced. NOTE: Totals may not exactly add up due to rolmding Source: City of South San Francisco Redevelopment Agency & Building Dept. Records South San Francisco Redevelopment Agency VI-13 1999 Five Yea_- Implementation Plan 2002 Mid-Term Update The Agency's productior_ of 102 affordable units from 1989 through 1999 has not only met its replacement obligation, but has resulted in a significant number of units above the requirement in the Redevelopment Pro'eot Area. Table VI-5 shows the current status of the Agency's replacement obligation in the Downtown/Central Project Area. Table VI-5 Replacement Housing Obligation South San Francisco Redevelopment Agency Years Units Removed Historical Before 9fl/89 6 22 9/1/89-6/30/99 3 Total 25 Source: South San Francisco Redevelopment Agency Cumulative Production Units Balance Produced (Deficit) St rpluss 11 -11 977 94 108 83 De AFFORDABLE HOUSING PRODUCTION (INCLUSIONARY) OBLIGATIONS- EL CAMINO CORRIDOR PROJECT AREA This section constitutes 5re Housing Production Plan of the South San Francisco Redevelopment Agency's Implementatior. Plan for the E1 Camino Corridor Project Area. The Agency expects to meet its legal housing production obligations under Community Redevelopment Law. The tables documenting historical ar.d projected residential units have been amended for ~is report based on actual conditions and revised projections for potential housing development in the E1 Camino Corridor Project Area. Tke housing production numbers used in this report represent the best available information to date. The Redevelopment Agency and City have analszed Building and Planning Department and Agency records to prepare these projections. The first part of this section describes historical housing production within the ?roject Areas from the adoption of the Redevelopment Plan in June 1993 through 1999. The second part discusses future housing production within the Project Area as follows: · Annual production goals for 2000 to 2004 · Projected productior_ _-'or 2000 to 2009 · Projected productior through the life of the Project (2010 to 2033.) Negative numbers under Ctm_ulafive Production Balance represent remaining obligation. The replacement housing obligation must be met within four years of removal. Units removec before 9/1/89 are not required to be replaced '3y specific income level. However, replacement units not specifically required to be very low or low must be at _east 120% or below of median income. Six of the replacement units were rehabilitated using CDBG funds and are therefore not included in the Agency's housing production totals. South San Francisco Redevelopment Agency VI-14 1999 Five Year Implementation Plan 2C 02 Mid-Term Update The third and fourth pm-ts discuss affordable housing production in the Project Area and the Agency's strategy for meeting its inclusionary obligation. 1. Historical Ho-~sing Production in the Project Area From the adoption of the Plan on July 14, 1993, a total of 309 housing units h~.ve been completed in the E1 Camino Cordcor Project Area; 100 additional housing units could potentially be constructed in 1999-200~-. The completed projects are as follows: a. New Constructf. on-Multifamily Greenridge (McClellan Site) Greenridge, a developrr_ent that provided 34 townhouse rentals for very low income tenants, was completed in 1999. The project was built on a portion of the land at the McClellan site and developed by Mid-Peninsula Housing Coalition, an experienced non-profit housing developer. The Agency required G:_eystone Homes, the developer of the McClellan single family home site, to provide one acre of l~r_d for the development of affordable housing units to:meet the Agency's housing production req~_irement. The Agency committed $940,000 of Housing Set-Aside funds for this development. b. New Construct2on-Single Family E1 Camino Court-Completed E1 Camino Court, a 96-ur.it market rate condominium project, was completed in the Project Area. This project did no: include construction of any affordable units. Therefore, the Agency was required to assume :he housing production obligation to produce 15 units of affordable housing, with six of those units affordable for very low-income households. Promenade (McClellan S.~te)-Completed A developer has completed 179 market rate single family homes at the 31-acre McClellan Nursery site, located at 1.450 E1 Camino Real. A c. Substantial rehabilitation From the adoption of the Plan through June 30, 1999, no housing units were st bstantially rehabilitated in the Project Area. From1999 to 2002, after the E1 Camino Corridor Redevelopment Project Area was amended to incorporate the Willow Gardens neighborhood, three four-plex structuros (12 units) were acquired and rehabilitated by Mid Peninsula Housing Coalition as part of the r.eighborhood revitalization strategy calling for the acqfisition and rehabilitation of up to fi~ :en (15) structures (60 units) in an effort to turn the n:ighborhood around. South San Francisco Redevelopment Agency VI-15 1999 Five Year Implementation Plan 2002 Mid-Term Update 2. Projected Fu :~re Housing Production and Agency ObHg~,tions The projected number of residential units to be constructed in the E1 Camino Corridor Project Area has been significa-~tly revised downward since the Agency's 1995 projec :ions (from 2,730 units to approximately 250 units during the next ten years). The revised projec;ions are based on current market conditions, experience with the development of the McClellan Nursery site, and a new analysis of the land._ rase and recommendations for unit per acre densities of the Project Area. Table VI-6 Housing Production Summary Historical & Projected El Camino Corridor Project Area Year Total Units Produced New I Rehab I To-~al Historical 1993-1999 219 0 219 1999-2002 908 129 102 .~.~,:..~.~i~.'- ~'.'g.-'~-'~-~,;~:'/"'.,'~'~'?;:::~.2' ~.'" :* .'O "~: .' ' '": ' ~ · ." .". '. ',....~c,.,. :~."-' : · .,..~ ~,,:. . Projected 2002-2004 74~° 488 122 2005-2033 373 n 0 373 ', .,2,.-.,.;~'~.,~,..::, ;',~..'*~:f¢['.{~,a.~.-.'.'....~ .'~.;:;:;,'...;.. . -~ z "i~ ,. ~'.': '.~' '~ '. '...'.-~.. '.-~ ";-' ~..';.~'.!"~:' '.'..~:~ '~.' '';. ~.'.'. ,"..~. ' ~,:':~.~,'t-'-2~-' '~'t' le~h~n¢~tb:'~':" > '":" .'~.,~.4~' ?' ~ ": ~ ' '"'~ "' '' ' . ~..5.,~ c'~..,.:',~'~..~'r.;.~.~.c. '"~., ';r~ ...'~" [ ' · ~'4?~V,~#~.~.,~.,c ?;,-~-,~t~ ~. -., .: ~,' ;::'~ .'~ ';~. ~'.~.', ? ~: ': i. ', ~;:.--'. ':' - ~.. ~ ........ -,., .,, ......... ~. ·., Tota (1993-2004) 383 60 443 Tota (1993-2033) 756 60 816 Soume: South San Francisco Redevelopment Agency & Building Dept. 3. Affordable (hclusionary) Housing Production This section constitutes -I~e Housing Production Plan for the E1 Camino Corridor Project Area of the South San Francisco Redevelopment Agency's Implementation Plan. It discusses affordable housing production in tl-_e Project Area and the Agency's strategy for meeting irs inclusionary obligation. The Agency expects to meet its legal housing production obligations under Community Redevelopment Law, including more recent legislation related to kousing, AB 315 and AB 1290. The Agency itself has not developed any housing in the community in the past, nor does it have plans to do so at any time in the future. The Agency has found it most cost effe:tive and Promenade 90 market rate units (219 units in 1993-1999 includes 89 from Promenade) Willow Gardens Rehabilitation ~o Chestnut Creek 40 units and Oak farms 34 units ~ Oak Avenue Apartments 13 'mits, Fairfield's Development 360 units South San Francisco Redevelo >ment Agency VI-16 1999 Five Year Implementation Plan 2002 Mid-Term Update .00 70 administratively efficient to provide financial assistance, as necessary, to priw_te developers (both for-profit and norprofit) and homeowners to produce and rehabilitate affordable housing, than for the Agency to ~.ct as a housing developer. Consequently, the Agency does not have an affordable housing pro(_r ction requirement with respect to Agency-developed aousing. In the E1 Camino Cordcor Project Area, the Agency expects to meet its affordable housing production requirements over the next ten years and through the remaining life of the Project. Table VI-7 shows historical and projected housing production from 1993 through 2033 and the inclusionary obligation ~r.curred by the Agency. The original Redevelop_-r_ent Plan did not anticipate Agency assistance for the '3roduction of affordable units. Opportunities have been presented which have allowed the Agency to assist with the creation of 34 r.ew rental units affordable to very low-income households built by Mid Peninsula Housing Coali'ion on the McClellan site. In addition, the development of Costco and the BART station on the E1 Camino Corridor has radically changed the loo'_~ of the E1 Camino, and will also result in the construction of housing units over the next twen :y years. The City's recently adopted General Plan and Housing Element have revised the potential number of residential units based on land use deterrr_inations and current economic trends. A Transient Occupancy District (TOD) has been established which encourages multi-family developments near the BART station. Additional unexpected residential and commercial opportunities have been created with the revised TOD land use designations for the E1 C~nino Corridor. South San Francisco Redevelopment Agency VI-17 1999 Five Year Implementation Plan 2¢ 02 Mid-Term Update 00 71 Table VI-7 Housing Production and Affordable Obligation Historical and Projected E1 Camlno Corridor Project Area Affordable Obligation [2] Affordable Production Total Total Very Affordable: V. Very Affordable: V. Total Low Low, Low, & Low Low, Low, & Year Uxi:s [11 Only Mod Only Mod Historical 1993-6/1999 219 14 33 34 34 7/1999-12/2002 102 6 15 12 12 Total (1993-2002) 321 20 48 46 46 6% 15% 14% Projected 2002-2004 122 7 18 88 2005-2033 373 22 56 22 Surplus (Defici0 Production Total Very Affordable: V. Low Low, Low, & Only Mod 20 6 26 93 81 56 0 Total (1993-2004) 27 67 134 6% 15% 30% Total (1993-2033) 49.82 122.55 156 6% 15% 19% [1] Total units includes new md substantially rehabilitated units in project area at all income levels: very low, low, moderate and market rate. [2] The CRL requires that at least 15% of total units are affordable to very low, low or moderate income households; and that at least 43% of the 15% are affordable to very low income households (equal to 6% of units in aggregate). NOTE: Totals may not exactly add up due to rounding. Source: City of South San Francisco Redevelopment Agency & Building Dept. Records I -3 -2 75 0 South San Francisco Redevelopment Agency VI-18 1999 Five Year hnplementafion Plan 2£ 02 Mid-Term Updat~e To date, numerous projects have been approved for development or are under construction in the project area including: The construction of 40, :>ne-bedroom senior apartments, known as Chestnut Creek, is targeted for very low-income ser_iors and scheduled to be completed in March 2003. Cl:_estnut Creek is a rental project sponsored by the City's Redevelopment Agency and developed Bridge Housing Corporation. It is locatec~ at the comer of Mission Road and Chestnut Avenue. The project was funded by a HUD 202 g:ant of $3.5 million and Agency funds in the amount 0553.4 million. Oak Farms, a private for sale housing development by Sunstream Homes, will save 34 townhouses. The project has an obligation to provide five (5) affordable units The City Council has earmarked the below market rate units for City and School District employees. It is anticipated that marketing will begin in the spring of 2003. Across from the Oak Fa_-'ras project the Redevelopment Agency has approved tAe Oak Avenue Apartment, a project cor.sisting of thirteen (13) rental units, three (3) of which will be available to low- and moderate-income households. Although this project is not in the Redevelopment Project Area, the afford~.l: le units are required by the City's Inclusionary Housing Ordinance. On McLellan Drive next ro Costco and BART, Fairfield Residential submittal site and elevation plans for Design Review Board review. The mixed-use project comprises 360-units that will be completed in the next few years. During the year 2000, the Redevelopment Agency adopted a Plan Amendment for the El Camino Corridor Project Area to Lnclude a non contiguous residential neighborhood ant commercial portions of the E1 Camir_o Real into the project area. The residential neighborhood of Willow Gardens, located north of Willow Avenue and Grand Avenue, consists of a 1980's Planned Unit Development with 64 fo'az-plex structures. The development was poorly designed and suffers from absentee landlords, deferred maintenance, vandalism, crime and general neglect. Willow Gardens is the focus of ~_ neighborhood revitalization strategy approved by the Agency Board in 1999. The overall plan is Jo acquire and rehabilitate up to a dozen four-plex structures in an effort to mm the neighborhood around. To date, three (3) four-p'_ex structures have been acquired and rehabilitated. Four additional structures of four units each, or sixteen (16) units total, were acquired in November 2002 by Mid Peninsula Housing Coal:'t'on, the City's developer for this revitalization project. Of the three four-plex structures, or twelve (12) units, for which rehabilitation has been corrpleted, all are rented to very low and low income households. Relocation was required for several of those units and was resolved by moving families from one unit to the other as vacanc"es occurred and by permanently moving .-wo families to the Commercial Avenue project upon irs completion in 2001. South San Francisco Redevelopment Agency VI-19 1999 Five Year Implementation Plan 2092 Mid-Term Updatq~ The newly acquired uni:s will be rehabilitated to bring those units into code ar d to replace rotted decks, windows, roofs ~nd floors. Relocation will be handled by working on u_nits as they become vacant and by moving families to newly rehabilitated units as they are completed. All units will be leased :o very low income families in perpetuity. Agency funding is provided to Mid Peninsula Housing Coalition and secured by deed of trust and subject to a Rent Regulatory Agreement for ninety years. units xxx units which w'.ll potentially be produced in the Project Area through 2004, the Agency will have a production requirement of xxxxxx affordable units, with xxxof these units for very low income households. The potential 40 very low income units at the Missior_ Chestnut site and the potential 60 additior_al units of low income housing at the Willow Gardens project will result in a significant surplus of 71 affordable units in the E1 Camino Corridor Project Area. Of the total ofxxx units produced fi.om 1999 through 2002 and the xxx which will potentially be produced in the Project Area through 2004, the Agency will have a production requirement of xxx affordable units, wi-k_ xxxx of these units for very low income households. The 34 very low- income units at Greenricge, 40 very low income units at Mission Chestnut site and the potential 60 additional units of low income housing at the Willow Gardens project will result in a significant surplus ofxx affordable units in the E1 Camino Corridor Project Area. 4. Replacement Housing Obligation Since the inception oftl:e Redevelopment Plan, no dwelling units have been destroyed in the E1 Camino Corridor Projec: Area. However, the Willow Gardens project anticipates the potential destruction of four to eigt~t units over the next fifteen years. Therefore, the Agency would have an obligation to replace 5.e four to eight two-bedroom units within four years of their demolition, and provide 75 percent of these units at income levels affordable to the former occupants. The significant number of affordable units proposed for the Project Area will more than meet the replacement obligation. Ee POTENTIAL OPPORTUNITIES FOR HOUSING PRODUCTION IN THE REDEVELOPMENT PROJECT AREAS The State of California requires the Department of Housing and Community D ~velopment to identify housing needs fo_-' each region as a response to the growing population and household growth in the state. State Law mandates that each council of government (COG) distribute the State identified housing needs allocation to each jurisdiction within the COG's region. The Association of Bay Are£. Governments (ABAG) is responsible to determine the fair share of regional housing need for each city and county within the San Francisco Bay Area for the period of January 1, 1999 to Jute 20, 2006. California State Law requires that "the share of a city or county of the regional housing needs includes the share of the housing needs or'person at all income levels with the area significantly affected by a general plan of the city or county." South San Francisco Redevelopment Agency VI-20 1999 Five Year Implementation Plan 2002 Mid-Term Update~ ABAG certified the Regional Housing Needs Determination for.all cities and counties in the San Francisco Bay Area in March of 2001. The final fair share allocation for the City of South San Francisco is 1,331 housing units. Of those 1,331 units, 277 are to be designated for very low income households, 131 for low income, 360 for moderate income, and 563 for the above moderate income range. The City of South San Francisco incorporated its housing need numbers into the updated General Plan Housing Element that was approved for certification by the Department of Housing and Conununity Development in October of 2002. During 2000 and 2001 :l~_e City conducted several study sessions to review the City's housing needs for the purpose of ascertaining how it may best provide housing that is ~_ffordable to existing residents and the City and employees of businesses located within the City. City Council directed the preparatior_ of a policy statement that addressed the feasibility of implementing the Council's desire to construct low, medium and high density residential housing which includes sufficient affordable un~ts to meet the needs of existing and future residents. T_ae policy statement included a mechanism which would implement the City's affordable housing goals to include a mandatory requirement that developers meet the ABAG housing reqairements. An Inclusionary Housir_g Ordinance was subsequently adopted requiring that a minimum of twenty percent (20%) of all approved residential development consisting of fc ur or more units be restricted to and affordable to lower income households. This 20% percent requirement of the development community is not restricted to redevelopment project areas but is implemented citywide. The following text surmr adzes potential housing production oppommities in £ae Downtown/Central and E1 Camino Corridor Project Areas. These potential opportunities are based on certain assumpt_'ons made by the Agency relating to revenues, marker conditions, community needs and priorities, and developer interests. Consequently, should assumptions not be realized or unforeseen circumstances arise, modifications to the proposed development options may be require~. Please note that adding potential projects or programs to the Implementation PSan is not considered an approval of the project and does not require environmental review (which would be required at the actual time of project approval). These opportunities are presented as potential developments to provide :he Agency with existing information and background data to facilitate future development decisSons. Downtown/Central Pro,'ect Area 1. Rental Rehabilitatio~ Project at Commercial Ave. The Agency has acquired a vacant site located at 440 Commercial Avenue, outside of the Project Area.. The Agency will sponsor the development of four new housing units at this location. This project will create four very low income units. C'arrently, negotiations with Habitat for Humanity are assessing the feasibility of creating homeownership opportunities for households at fifty ~50%) percent of median income. 2. Paradise Valley. This quadrant of the Project Area represents the largest opgortunity for development in the Linden and Hillside Avenues neighborhood. Preliminary analysis shows it to be an ideal site for the construction of 44 to 88 new units of senior housing with South San Francisco Redevelagment Agency VI-21 1999 Five Year Implementation Plan 2002 Mid-Term Update commercial retail s ?ace facing Linden Avenue. The higher number assumes development of the entire block which includes a grocery store and car wash which may not be available for residential developrrent. This project could potentially move forward witLin the next five years with a smalle: scale development of up to 30 rental housing units. The Agency acquired the gas station at 905 Linden Avenue in 1999, which offers the potential for future a:msing development on its own or combined with the adjacent parcels in Paradise Valley. The Agency has demolished the gas station and cleaned out leaking gas tanks at that site wl:ich has since been improved with landscaping, grass and flower beds, making the neighborhood more attractive. El Camino Corridor Project Area 1. Mission Chestnut S:_te. With assistance from the Redevelopment Agency (SI.9 million) and $4.5 million in HUD funds, 40 units of senior housing will be completed and occupied in the spring of 2003. 2. Willow Gardens Acq'aisition and Rehabilitation. The Agency has adopted a revitalization plan for the Willow Gadrens neighborhood in 1999. Subsequently the E1 Camino Corridor Redevelopment Pro'ect Area was amended to include the neighborhood. T ~e intent of the plan is to redevelop ~.e neighborhood by incorporating single family amen"ties such as sidewalks, trees, garVage enclosures, well designed patios and trellis entries. 3. Other Potential Projects 2004-2010: An estimated 373 units may be developed in the E1 Camino Project Ar:a after 2004. An additional 20 units may be developed outside of the Project Areas. The Agency will also continue to look for opportunities to provide assistance to rehabilitate SROs. F. GOALS, OB;ECTIVES AND PROGRAMS In addition to discussion of Agency progress in meeting its specific affordable housing obligations under the CRL, the Implementation Plan must set forth the Agency's goals and objectives for affordable kousing during the term of the plan. Through its affordable housing activities, the Agency intends to support and advance the overall Housing Elerr ent program. In developing its affordable housing program, the Agency has been guided by the goals and policies of the City's Housing Element, which are incorporated into the Implementation Plan by this reference. South San Francisco has six goals in the Housing Element with respect to housing: Goal 1: Promote t2ae provision of housing by both the private and public sector for all income gro'aps in the community. Goal 2: Conserve mad enhance existing residential neighborhoods, while encouraging a supply of housing units sufficient to assure each resident an attra:tive, healthful, safe environment within a wide range of designs, types, sizes, anti prices. Goal 3: Provide housing for groups with special needs. South San Francisco Redevelo ~ment Agency VI-22 1999 Five Year £mplementation Plan 2002 Mid-Term Update .00 Goal 4: Promote equal opportunity to secure, safe, sanitary, and afford~_ble housing for everyone in the community regardless of age, race, gender, religion, marital status, na.-ional origin, disability, sexual orientation, and other mbitrary factors. Goal 5: Protect neighborhoods and housing from natural and man-made hazards. Goal 6: Encourage energy efficiency in all new and existing homes. 1. Housing programs and Activities The 1994 Implementatio a Plan adopted numerous programs and activities to s-apport the development of afforda~ e housing over the five year period. The Agency has made steady progress in its efforts to meet its affordable housing goals. The Agency has successfully developed affordable housing units in the two Project Areas and will continue to aggressively pursue the developmen- of affordable housing units at other sites in the future. Following are the major housing programs from the 1994 Implementation Plan and the Agency's activities that have supported its goals since the adoption of the 1994 Implementation Plan: Program #1: Encourage the development of affordable housing. Program #2: Provide housing opportunities and support services for very low income renters and persons with special needs. Program #3: Provide services-enriched shelter and transitional housing for homeless persons and famfies and prevent households at-risk from becoming hon.eless. Program #4: Provide opportunities for low and moderate income homeowners to maintain and repair their homes and promote neighborhood revitalization. Program #5: Provide komeownership opportunities for first-time homebuyers earning less than 120% of median income. Over the next ten years, the Redevelopment Agency will continue to concentra-.e on achieving those goals and programs which are most applicable to the Agency's affordable housing activities. The Agency intends to continue undertaking housing acquisition and rehabilitation activities that will assist the City in achieving Programs 1,2 and 4. The Agency continues to fund transitional housing and emergency shelter programs addressing the special needs of Program 3. The newly adopted Incl~zsionary Ordinance and Density Bonus Ordinance will :mate new affordable housing units which will be marketed by the Agency to ensure avaihtbility to low and moderate income house?_clds. Agency staffprovides technical assistance to developers in the creation of their require(_ below market rate units as indicated in Program 1. The Agency will contintre to sponsor new housing construction as opportunities present by working with for profit or not for profit developers. The Agency will assist in consolidating in fill parcels, acquiring vac~t sites, providing incentives and encouraging mixed use projects, South San Francisco Redevelopment Agency VI-23 1999 Five Year Implementation Plan 2032 Mid-Term Update second units, and providing flexible standards where feasible. These housing production activities will particula:ly assist in achieving Programs 3 and 5. In 2002, the Agency aFl>roved a First Time Home Buyer Loan Program reflecting the priority goal of Program 5. The policies and procedures have been established and the Agency has set aside $250,000 for the '_c an program. The funds will be leveraged with the below market rate units produced through the inclusionary requirement and funds will be used tc write down the cost ofhomeownership, making new units affordable to low and moderate income households. Additionally, loans can be made available to city and school district staff for acquisition of units that may be on the market in our City. The Agency insists on promoting housing opportunities for all persons in its programs, meeting Programs 1 and 2. Fede~.~d and redevelopment funds are allocated on a yearly basis for fair housing counseling and mediation services to address habitability issues, particulary in the downtown project area. Program #1: Encourage the development of affordable housing. Planned Activities: · Provide assistance from all departments within the bounds of local ordinances to stimulate affordable housing l:roduction. · Provide technical assistance and financial assistance to nonprofit developers to provide feasibility analysis, ~_d other redevelopment assistance to encourage afforcable units. · Implement the Inclt~s_'onary Zoning Ordinance which requires twenty percentage of all units produced in the City to be affordable to low and moderate income families. · Provide assistance to developers in consolidating in fill parcels, acquiring vacant sites, providing incentives and encouraging mixed use projects. Accomplishments: · Provided funding to Mid-Peninsula Housing Coalition and the Bridge Housing Corporation for feasibility analyses of several potential housing sites and continues to work with these agencies for the development of the most appropriate sites. · Provided $3.4 millicr_ in funding, in combination with HUD 202 funds, to :he Chestnut Creek Senior Housing Project to develop 40 units of very low income senior rental housing (at 40% of median). N,w construction began in 2001 on the vacant site at the comer of Chestnut Ave. and Mission Road and the units are anticipated to be leased i a January of 2003. · Negotiated for one below market rate unit at 290 Hillside Avenue to be made available to a City employee in the Downtown Project Area. · Adopted Inclusionary Housing Ordinance and Density Bonus Ordinance fcr residential developments within :he City, requiring that twenty percent of all housing tm/ts be affordable to low and moderate income households.. South San Francisco Redevelooment Agency VI-24 1999 Five Year Implementation Plan 2032 Mid-Term Update · Negotiated for five '>elow market rate units at the Oak Farms developmer_t located at Grand and Oak Avenues in the Downtown Project Area. · Negotiated for three below market rate units in the Oak Avenue Apartments, also located on Oak Avenue. Program ~: Provide housing opportunities and support services for very. low income renters and persons w.'.th special needs. Planned Activities: · Undertake programs :o provide financial assistance for acquisition and/or physical improvements to existing boarding rooms, single room occupancies, and o:her existing rental units. · Increase the supply :~ .--' affordable rental units by providing financial assistance to developers for the creation of new multifamily rental units. · Provide financing or ~_ncentives to preserve affordable housing at risk of reverting to market rate as subsidies exl:i:e. · Undertake rehabilitat:'on programs for older rental units posing a health hazard due to lead poisoning, and modif_cations to enhance accessibility for the disabled. Accomplishments: · Provided funding for substantial rehabilitation for 68 SR© units at the Metropolitan Hotel and 16 units at the Grand Hotel, with 8 additional units at the Grand Avenue Apartments. · Funded the Mid-Peninsula Housing Coalition's feasibility analyses for development of several affordable housing projects. · Provided a $960,000 Agency loan for 34 affordable housing units at Mid-Peninsula's Greenridge Development at the McClellan site. · Acquired and rehab"_l'_'tated 339-341 Commercial Avenue leveraging CBDG, HOME and Agency funds to provide housing affordable to very low income tenants. · Sponsored the acquisition and rehabilitation by Mid Peninsula Housing Coalition of four plex units in the Willow Gardens neighborhood. To date, three four plex stractures have been acquired and rehabilitated and four more, four plex structures, will be acquized in November of 2002. the Grand Hotel. South San Francisco Redevelogment Agency VI-25 1999 Five Year 2mplementation Plan 20( 2 Mid-Term Update_ Program/t3: Provide services-enriched shelter and transitional housing for homeless persons and families a ~d prevent households at-risk from becoming hou.eless. Planned Activities: · Stimulate the construction of new shelter and transitional opportunities by - Providing direct financial support or incentives, - Streamlining the permit process, - Providing der_sity bonuses and other forms of assistance within the bounds of local ordinances and policies, and, - Working wi-t_ San Mateo County Task Force to identify a location for the new shelter. Accomplishments: · Provided on-going operating funds to the Human Investment Project for a shared housing program which mater_es individuals who cannot afford the rents of conven%nal apartments with people who are willing to share extra space in their homes. · Provided on-going operating grant funds to Shelter Network, which provides housing and services for homeless persons, for two of its programs: Family Crossroads transitional Housing and the Ma.3 .e Street Shelter. · Acquired and rehabilitated a three bedroom, single family home, which is leased to Shelter Network for $800 per month, as a transitional house for graduates of their program, ° Co-Sponsored the acquisition and installation of a new North County Homeless Shelter, located in South San Francisco, providing $102,000 for acquisition in fisca~ year 2001 and on-going operating costs of $7,000 per year. Program/t4: Provide el >portunities for low and moderate income homeowners to maintain and repair their homes and promote neighborhood revitalization. Planned Activities: · Provide Iow interest _oans for housing rehabilitation for very Iow, low and moderate income homeowners to maintain and repair their homes. Accomplishments: · The City provided CDBG grant and loan funds for rehabilitation and minor home repairs for low income homeowners in the Downtown/Central Project Area. · The City instituted a x!ghly successful home repair voucher program, whicL provides up to $2,500 for emergency home repairs for very low and low income homeowners. · Continue provision of housing funds for rehabilitation of affordable rental 'anits in order to maintain the city's his' orically affordable housing stock. South San Francisco Redevelopment Agency VI-26 1999 Five Year Implementation Plan 2032 Mid-Term Update - O0 8O Program #5: Provide aomeownership opportunities for first-time homel: uyers earning less than 120% of median income. · Promote the Agency's interest in developing affordable housing. · Provide assistance or incentives to stimulate the creation of new homeowr_ership opportunities. · Provide financing to subsidize the purchase or buy down the developers' mst of new housing to create housing affordable to persons of moderate income. · Support efforts to p:ovide first time homebuyer oppommities by working with other agencies with housing progruns, Mortgage Credit Certificate and Corporate Homebuyer Programs. Accomplishments: · In 1994, the City assisted in the marketing of the Start Program, a first time homebuyer's program developed by the County. This Program, which provided deferre~ loans for downpayment assistance and closing costs, used up all fimds within two months of starting the program due to -1: e high demand for the available funds. · The City participates in the County-administered Mortgage Credit Certificate Program, which provides a tax reduction for eligible low and moderate income homebuyers. · Adopted First Tim.: Home Buyer policies and procedures in 2002 and allocated $250,000 to initiate loan program for low and moderate income households. Funds will be targeted to city and school district employees. · Negotiated with developers for below market rate units as required by the City's Inclusionary Ordian_nce. Agency funds will be used to write down affordability levels to low income households fcr the acquisition of new units to be developed in the r.ext few years. · The Agency will implement workshops for new home buyers to assist them in the acquisition of their f'_rst home, providing counseling, technical assistance, ~nd financial assistance as require:l. · Marketed the first be_ow market rate unit targeting city and school district employees. The Hillside Avenue unit :'.s scheduled to be occupied in December of 2002. A city employee won the lottery for this ur.i: and will be offered a silent second loan to assist with the down payment. G. HOUSING SET-ASIDE FUND The primary funding socrce for the Agency's affordable housing activities during the Implementation Plan period is the 20 percent portion of annual tax increment revenue deposited by the Agency into its Housing Fund. The history, status, and estimated future ievel of deposits in the Housing Fund are described below. South San Francisco Redevelopment Agency VI-27 1999 Five Year Implementation Plan 2C02 Mid-Term Update 1. History and Status The Agency first deposited moneys into its Housing Set-Aside Fund in Fiscal Year 1983/84. In succeeding years, the Agency has made deposits to the Housing Fund and/or direct expenditures in an amount not less then 20 percent of the cumulative tax increment revenue allocated to the Agency during that per'od. As Table VI-8 shows, t_ae Agency's Housing Set-Aside Fund had a remaining excess surplus of $542,489 in FY 1998/99. State law requires that funds be committed within three years of their becoming "excess surplus" which is defined as the greater of $1,000,000 or the difference between the total of the previous four years' 20% deposits to the Fund and the unencumbered balance at the end of the current fiscal year. The law allows an Agency to offset the "excess surplus" with the previous year's expenditures and encumbrances. The Agency expects excess surplus for subsequent fiscal years will be eliminated with significant expendi' ures for planned housing projects, inclu~/_-ag the Willow Gardens project. Table VI-8 Housing Fund Excess Surplus As of Fiscal Year 1998/99 Fiscal Year 1994/95 1995/96 1996/97 1997/98 1998/99 Annual Tax Sum of Deposited Increment Tax Increment in Excess Surplus Deposited in Housing Fund Balance for Housing from Previous Each Fiscal Fund Four Years Year as of 7/98 Amount Expended and Encumbered FY 98/99 Agair~st Excess Surplcs $688,478 ~ ~' '~' $0 $0 $600,457, $0 $0 $723,829~~!;.:,~ ....¢~.i~'~'~.~.,..;-~ $0 $0 $794,399 ~'-";.' '~~.i'~ .:~,~:.~ $0 $0 :~ '~' ~, '~ $0 $0 $910,530~~!"'" i,r., e, . ~ :.~ 1999/2000 $1,222,562 ~~:..'~. ~ $860,373 ($860,373) 2000/0l~ ':: ...... - ....... :.-, ..... · ~'~,.,,,:~'~,.',~.~,;,, ..... $1,695,680~ ($1,156,037) So~ce: Sou~ S~ Fr~cisco R~evelopment Agency. Remaining Excess Surplus $0 $0 $0 $0 $539,643 2. Deposits During Next Five Years The Agency will deposit 20 percent of annual tax increment revenue from all four project areas into the Housing Fund. The total five-year (2000-2004) deposit of tax increment revenue into the Housing Fund is estimated._ to be approximately $7.1 million. The Agency plans to expend its available funds in the next five years leaving a zero balance in the Housing Set-Aside Fund in 2004. Table VI-9 shows -~e projected Housing Set-Aside Fund available for the next five years: n The Agency received $910,520 during FY 1998/99. South San Francisco Redevelooment Agency VI-28 1999 Five Year Implementation Plan 2032 Mid-Term Update 0 0 82 Table VI-9 Funds Available for Affordable Housing~3 Over the Five Year Planning Period Year Net TI to Housing Fund FY Ending 2000 $850,000 FY Ending 2001 $1,230,000 FY Ending 2002 $1,510,000 FY Ending 2003 $1,710,000 FY Ending 2004 $1,760,000 Total $7,050,000 Source: South San Francisco Redevelopment Agency The Agency anticipates using the majority of these funds for the proposed Wi low Gardens project and the Chestnut Creek Senior Housing Project. Table VI-10 shows the proposed expenditures for the next five years. The projected available revenues and proposed expenditures over the next five years ire preliminary estimates to be refined upon the adopt-on of the Agency's affordable ho :tsing strategy. Table VI-10 Projected Expenditures Over the Five Year Planning Period 99/00 00/01 New Affordable $0 Housing Senior Housing S500,000 Acquisition/ S650,000 Rehabilitation Rehabilitation Loans $60,000 First-time $500,000 Homebuyers Homeless Shelter/ $50,000 Transitional Housing Annual Total $1:760,000 01/02 02/03 $0 $0 $500,000 $2,000,000 $500,000 $0 $500,000 $1,500,000 $500,000 $60,000 $100,000 $150,000 $2,000,000 $500,000 $500,000 $160,000 $175,000 $200,000 $4,720,000 $2,775,000 $1,850,000 Source: South San Francisco Redevelopment Agency 02/04 Program Total $500,000 $1,000,000 $1,000,000 $4,000,000 $500,000 $3,650,000 $150,000 $520,000 $5(0,000 $4,000,000 $2(0,000 $785,000 $2,850,000 $13,955,000 The projected expenditm'es of about $14 million exceed project tax increment r:venues of approximately $7 million. The proposed projects will require additional sources of funding. The Agency will seek to leverage its Housing Fund revenue with other funding sources devoted to the provision of affordable housing to maximize the number of affordable units that can be developed or rehabilitate:l with the available Housing Funds. These other funding sources n Rounded to the nearest $10,0 30. South San Francisco Redevelopment Agency VI-29 1999 Five Year Implementation Plan 2032 Mid-Term Update. 0 include Community Development Block Grants (CDBG) and Home Investment Partnership funds fi.om the U.S. Department of Housing and Urban Development, California Housing Finance Agency (CHFA) and Department of Housing and Community Development (HCD) program funds at the S:~_te level, and low income housing tax credit equity funds. 3. Targeting of the Housing Fund The Agency plans to tm'get its Housing Fund to specific income groups based on its fair share of regional housing needs as determined by the Association of Bay Area Govermments. Over the life of the Plan, it is the Agency's policy that at least 36 percent of units assisted with Housing Fund moneys will be for very low income households and at least 18 percent for low income households to supply its regional fair share of housing as determined by ABAG. The remaining units assisted by means of the Housing Fund may be affordable to any of the three income categories. As shown ir_ Table VI-11, over the next ten years, the majority ofkousing funds will assist very low income households. Table VI-Il Units Produced With Housing Funds and Proportion by Income Category Historical & Projected Assisted Units Produced Historical To 1999 1999-2002 Projected 2000-2004 - Total] Very Low Low Moderate Total Affordable U:x'ts I % Units I % Units I % I-nits I % 136 100% 0 0% 0 0% ~ 36 100% 4 33% 8 67% 0 0% 12 100% 4 { 5% I 60 79% [ 12 16% I 76 { 100% 14z- [ 64% [ 68 31% ] 12 5% I 224 I 100% The Agency recognizes the important role of housing programs and activities ix. its redevelopment program. Consequently, the proposed affordable housing progrrms should be viewed not simply as the means of implementing the Agency's stated goals and objectives related to affordable housing but as key elements in its overall revitalization efforts. Programs proposed to meet the Agency's Housing Production Requirement over the next five years are discussed below. H. FIVE YEAR PRODUCTION GOAI,S This section describes the Agency's housing program with estimates of the num3er of new, rehabilitated and price-restricted housing units to be assisted with expenditures ~rom the Housing Fund over each of the next five years. South San Francisco Redevelopment Agency VI-30 1999 Five Year 'mplementation Plan 2002 Mid-Term Update 00 In the near future, staff will present a draft Inclusionary Zoning Ordinance fo:' review by the Agency Board. It is recommended that the Agency Board adopt a policy consistent with the CRL that requires developers to provide the affordable units on site for each development. FY 1999/00 · Acquire and rehabilitate four very low income units at Commercial Avenue. · Market Ping Psu uti: at the Hillside Development via the Start Program. FY 2000/01 · Amend Redevelopment Plan to include the Willow Gardens site in E1 Calx~ino Corridor Project Area to rehabilitate 60 units of affordable housing. FY 2001/02 · Begin construction o5 40 units of senior housing at the Mission Chestnut Site. · Begin the approval process for the potential development of 20 affordable mits on Mission Road near BART. · Continue the acquis"t~on and rehabilitation of units at Willow Gardens. FY 2002/03 · Complete and lease senior housing at Mission Chestnut Site. · Continue the acquisit:'on and rehabilitation of units at Willow Gardens. · Begin the approval process for the potential development of 44 to 88 new mits of affordable housing with commercial retail space at the Paradise Valley site. FY 2003/04 · Develop plans for the entitlement process for potential affordable housing ~_t the Paradise Valley site. · Complete rehabilitaC'on of Willow Gardens, providing 60 units of low income housing. The five year goals reflect the best projections that the Agency can make at this time of projects that may develop in this :i~e period. If these projects are developed as foreseer_, then the units developed will address the range of housing needs. By combining various fund!ng sources and working with non-profit affordable housing developers, the Agency may be able to accelerate affordable housing development, as it has done in the past. South San Francisco Redevelopment Agency VI-31 1999 Five Year ~mplementation Plan 2002 Mid-Term Update 00 oo 0 0 0 0 0 O0 ~7 oO CD 0 0 0 0