PICO UNION 1 REDEVELOPMENT PROJECT Project Information Sheet

Transcription

1 PROJECT INFORMATION SHEET PICO UNION 1 REDEVELOPMENT PROJECT Project Information Sheet Area 155 acres Council District(s) 1 Date of Adoption February 27, 1970 Date(s) of Amendment(s) December 17, 1986 December 20, 1994 March 3, 1999 November 21, 2003 Project End Date February 27, 2011 Eminent Domain Expires December 17, 1998 Tax Increment Cap $85,000,000 Tax Increment Received Through FY05 $18,476,989 Balance to Reach Cap $66,523,011 Annual Tax Increment Cap N/A Last Date for Receipt of Tax Increment February 27, 2021 Maximum Bonded Indebtedness Debt Establishment Time Limit None N/A -344-

2 PICO UNION 1 REDEVELOPMENT PROJECT Summary Due to limited resources, program activities will focus on completion of objectives previously initiated, and implementation of activities to further the objectives of the Redevelopment Plan to improve the quality of life issues affecting the area, and to improve the physical image of the Pico Union community. The primary focus of Pico Union 1 is a continuing effort to retain the residential and historic character of the community developed in the early 1900 s, the development of new affordable rental housing and the encouragement of economic development activities to provide needed services to the community. FY07 activities will focus on completion of the Pascual Reyes Rental Townhouse Development, which will cater to large families of very low and low income, initiate construction activities along the Pico Boulevard Streetscape, implement the Pico Boulevard Commercial Façade and Signage Grant Program and monitor the construction of public improvements to correct hazardous and unsafe conditions. FY Proposed Work Program Monitor construction activities in connection with the Pascual Reyes Townhouse Development to construct thirteen (13) four bedroom affordable residential units catering to large families. Monitor the issuance of building permits to ensure the retention of historic residential and commercial buildings. Implement the Residential Façade Grant Program to qualified residential property owners. Identify and review new housing development opportunities and/or rehabilitation initiatives for potential future funding. Implement the Pico Boulevard Commercial Façade/Signage Program. Monitor construction activities associated with the Pico Boulevard Streetscape Program. Implement the Public Improvement Program to upgrade deficient and hazardous public improvements project area- wide. Continue ongoing staff support to the community participation program, and continue working closely with the Council Office to identify and implement activities that meet the objectives of the Redevelopment Plan and the community

3 Background The Pico Union 1 Redevelopment Project contains 155 acres, and is located approximately two miles southwest of the core of the Los Angeles Central Business District and adjacent to the expanded Los Angeles Convention Center and the Staples Center Arena. The Pico Union 1 Redevelopment Plan was originally adopted by the Los Angeles City Council on February 27, The Plan sets forth several goals including the preservation and expansion of affordable housing, economic development, construction of new public improvements and improvement of the community s appearance through the rehabilitation of existing residential properties and businesses. Due to limited resources, economic opportunities have been limited; however, during FY07, emphasis will be placed on spearheading activities that improve the physical appearance of the community to promote and encourage economic development including implementation of the Pico Boulevard Streetscape Program, and the Commercial Façade and Signage Program, installation of new public improvements, completion of the Pascual Reyes Townhouse rental development and historic preservation. Conditions at Time of Adoption The Pico Union 1 Redevelopment Project was found to contain the following conditions of blight: Old, obsolete and substandard residential structures. Of the total of 616 residential buildings surveyed at the start of the Project, approximately 44 percent were either deficient or needing rehabilitation or structurally substandard. Irregular shaped parcels, which did not meet established planning and zoning standards for economic development. Prevalent absentee ownership and highly fragmented land ownership. Inadequate public improvements including a substandard circulation system, lack of street trees and insufficient open space. Lack of commercial services including retail and market facilities for community residents. High density of population and overcrowding since the community served as a port-of-entry for immigrants, primarily from Mexico and the Caribbean

4 Key Accomplishments through June 30, 2006 The primary thrust of the Pico Union 1 Redevelopment Project has been to stabilize, improve and increase the housing stock with special emphasis placed on providing affordable housing. This has been accomplished through a Project-wide residential home improvement loan program that has upgraded over 1,000 residential units since the inception of the Project, at a cost exceeding $3,000,000. Nearly 600 new housing units, representing a development cost of over $30,000,000, have been constructed in the Project providing both rental and ownership opportunities to area residents. Over $3,000,000 in public improvements, consisting of repairs to curbs and gutters, sidewalks and street trees have been installed to enhance the living environment of the community and to eliminate hazardous conditions. Of note is the installation of new lighting, playfields and fencing and expansion of Toberman Park to provide higher quality open space and increased recreational opportunities for Pico Union residents. Commercial development is an important element in revitalizing the community. The Agency previously participated and encouraged local shopping center developments including a mixed-use commercial and new housing development at Pico Boulevard and Union Avenue. In order to help stabilize the Pico Union community, an economic development and commercial revitalization strategy has been developed encouraging the participation of the business community. Beginning in 1996, the Agency provided financial resources to the City Department of Public Works, Operation Clean Sweep to implement the Beautification and Clean-up Program in the Pico Union 1 Redevelopment Project Area to improve the physical appearance of the area. Due to limited resources, the program was terminated in FY00, but was re-established in FY03 with available funds. Recognizing the need for affordable childcare, the Agency entered into an Agreement with a local nonprofit organization to develop Block 6 as a mixed-use development containing affordable childcare for 100 preschoolers, and the development of approximately 13 affordable family rental-housing units on Agency owned land. Construction for the childcare center commenced April 15, 2002 and was completed in July The center is managed and operated by the Los Angeles School District. In August 2004, City Council adopted the Pico Union Historic Preservation Over Lay Zone (HPOZ) to preserve the historic and residential character of the area. Since its inception in 2000, Agency staff worked closely with the community, City Planning and Council Office staff to help support and approve the Pico Union HPOZ

5 Work Program Accomplishments Objective P11050 Pascual Reyes Townhouses Status Entered into an amended development agreement with a community based nonprofit organization, to increase the Agency loan and to extend the schedule of performance for development of 13 very-low and low-income rental townhouses catering to large families. P12000 Pico Boulevard Commercial Façade Initiated preparation of a Request for Proposals to retain an architect to prepare design and Program construction drawings, which will incorporate the Pico Union 2 Redevelopment Area. P12010 Pico Boulevard Streetscape Program P13050 Operation Clean Sweep Completed the community outreach process to obtain community input to prepare design and construction drawings for the Pico Boulevard Streetscape Program, completed design activities, and started preparation of construction drawings. Entered into a Cooperation Agreement with Operation Clean Sweep to fund, administer and operate the Clean up and Beautification Program. P23400 Public Improvement Program Retained an engineering consultant to prepare a public improvement deficiency assessment and survey. P19910 PAC/Community Participation Continued providing on-going PAC/Community Participation support and outreach. Five Year Goals Monitor all building permits to retain residential character of the area, and to ensure retention of historically significant buildings. Complete construction of the Pascual Reyes Townhouses rental development and related offsite improvements. Identify and Implement housing programs for low- and moderate-income households. Revitalize the Pico Boulevard commercial corridor through implementation of the Pico Boulevard Streetscape and Commercial Façade and Signage Programs. Continue to identify financial resources to augment redevelopment efforts focusing on economic development activities, and initiatives to improve the visual appearance of the area

6 Project Objective Activity Description Residential Rehabilitation (P11010) Project Description: Provide low interest loans for the rehabilitation of single and multi-family dwelling units, and the improvement and sale of two Agency owned condominium units for homeownership opportunities. Program to be implemented pending availability of financial resources. Project Cost: $31,500. FY07 Milestones: Monitor building permits in connection with rehabilitation of private residential property and new construction. Redevelopment Goal: To retain by means of rehabilitation as many existing residences as possible. Address: Area wide. PAC/CAC Neighborhood Council: Pico Union 1 PAC and Pico Union Neighborhood Council. Funding Source: Housing Trust Funds. Pascual Reyes Townhouses (P11050) Project Description: This is phase two of a mixed-use development on Agency owned land containing affordable childcare and rental housing to accommodate large families. Refer to Objective P13070 for installation of new off-site improvements. The development will contain 13 townhouse designed affordable rental units catering to large families of very-low and low-income households. Each unit will provide four bedrooms, 2 ½ bathrooms and an attached two-car garage. Developer: Pico Union Housing Corporation. Project Cost: $59,100. FY07: Start and monitor construction activities. Redevelopment Goal: Development of affordable housing. Address: 1413 West Connecticut Street. PAC/CAC; Neighborhood Council: Pico Union 1 PAC and Pico Union Neighborhood Council. Funding Source: Housing Trust Funds. PUHC Scattered Site Rehabilitation (P11090) Project Description: Staff time to monitor rehabilitation construction expenditures to ensure compliance with multi-family bonds issued in FY03. Developer: Pico Union Housing Corporation. Project Cost: $7,600. FY07 Milestones: Monitor rehabilitation construction expenditures. Redevelopment Goal: Rehabilitation of existing residential units and affordable housing. Address: Various. PAC/CAC; Neighborhood Council: Pico Union 1 PAC and Pico Union Neighborhood Council. Funding Source: Housing Trust Funds

7 Residential Historic Preservation (P11095) Project Description: Pursuant to City Council adoption of the Pico Union Historic Preservation Overlay Zone, staff will identify designated historic residential building for preservation and rehabilitation. Developer: Various. Project Cost: $17,000. FY07 Milestones: Implementation of program depending on availability of resources to provide low interest loans for the preservation and rehabilitation of historically significant residential building. Redevelopment Goal: To preserve historical monuments and structures, where possible, through maintenance and preservation, and through the establishment of historic districts, zoning restrictions and other mechanisms to deter demolition and promote adaptive re-use of historic structures. Address: Various. PAC/CAC; Neighborhood Council: Pico Union 1 PAC and Pico Union Neighborhood Council. Funding Source: Housing Trust Funds. City Affordable Housing Trust Fund (P11901) This objective is a placeholder for annual deposits into the additional five percent housing set-aside attributable to the City's Affordable Housing Trust Fund. As projects are identified through the LAHD funding application process, funds may be transferred to new objectives, or to LAHD. No labor is to be assigned to this objective; labor for required budget activity is to be carried under the appropriate "1990" objective. Response to Housing Opportunities (P11990) Project Description: Funds will be used for identification of sites for infill residential development, homeownership opportunities, and development of financial incentives to encourage new residential development. Developer: To be determined. Project Cost: $93,400. FY07 Milestones: Respond to housing opportunities that are not listed as an objective, and review permits, design and construction drawings. Redevelopment Goal: To improve housing conditions and provide affordable housing. Address: Various. Funding Source: Housing Trust Funds

8 Pico Boulevard Commercial Façade/Signage Program (P12000) Project Description: Provide outreach to local business property owners and tenants to implement the Pico Boulevard Commercial Façade/Signage Program by providing conditional grants up to $25,000 for approximately six storefronts following preparation of design and construction drawings. Developer: Various. Project Cost: $305,200. FY07 Milestones: Marketing of program to property owners and business tenants, issues RFPs for selection of architect to prepare design and construction drawings and obtain construction permits. Redevelopment Goal: The achievement of an environment reflecting a high level of concern for architectural and urban design principles appropriate to the objectives of the Redevelopment Plan. Address: Pico Boulevard from the Harbor Freeway to Union Avenue. Pico Boulevard Streetscape Program (P12010) Project Description: Design and construction of streetscape improvements along Pico Boulevard Commercial Corridor. Developer: Agency. Project Cost: $43,400. FY07 Milestones: Monitor construction activities. Redevelopment Goal: The achievement of an environment reflecting a high level of concern for architectural and urban design principles appropriate to the objectives of the Redevelopment Plan. Address: Pico Boulevard from the Harbor Freeway to Union Avenue. The program will be implemented in conjunction with the Pico Union 2 Streetscape Program, Objective P

9 Residential Façade Grant Program (P12060) Project Description: Implementation of the Residential Façade and Grant Program, which will provide residential property owners of one to four residential units conditional grants up to $25,000 per structure for façade improvements. Developer: Various. Project Cost: $95,400. FY07 Milestones: Marketing of the program to residential property owners, issue a RFP for retention of an architect to prepare design and construction drawings, prepare and complete design drawings. Redevelopment Purpose: The achievement of an environment reflecting a high level of concern for architectural and urban design principles. Address: To be determined. Economic Development Opportunities (P12700) Project Description: Response to development and programmatic opportunities directed toward the economic development of the Project Area with emphasis on projects which increase tax increment revenue and employment opportunities. The economy of the Pico Union area is affected by the low income of its residents and a historic lack of investment. This objective is intended to identify approaches to stimulate new economic activity in the area. Developer: To be determined. Project Cost: $436,600. FY07 Milestones: Developing and marketing the program to property owners and potential investors. Redevelopment Goal: Retention and restoration of Project Area businesses, including the provision of financial assistance for physical improvements promoting a positive image for the community, and the achievement of an environment reflecting a high level of concern of architectural and urban design principles. Address: Various. AB1290 Work Program (P12990) Per California State Legislation, all redevelopment project areas created on or after January 1, 1994, as well as those project areas amended after that date, are subject to provisions of Assembly Bill The legislation provides a tax sharing mechanism for those taxing entities eligible to share in Agency tax increment generated by individual project areas. One of the taxing entities is the City of Los Angeles. In a City Council action adopted on October 14, 2003 the Agency was directed to retain tax increment that would otherwise be transferred to the City. These funds are generated on an annual basis and will be used at the discretion of the council offices having jurisdiction over the affected project areas. The AB1290 funds will be spent on existing Agency work objectives or other activities in the council districts deemed consistent with the removal of slums and blight, the creation of quality jobs, and the provision of infrastructure improvements and affordable housing

10 Operation Clean Sweep (P13050) Project Description: Approve and enter into a Cooperation Agreement with Department of Public Works, Operation Clean Sweep, and LA Conservation Corp., to employ area youth to augment the City anti graffiti program by providing general clean-up services not provided by the City. This program is run in conjunction with the Pico Union 2 Operation Clean Sweep Program (P23050). Developer: Department of Public Works and LA Conservation Corps. Project Cost: $32,100. FY07 Milestones: Obtain Agency and City Council approval to enter into a Cooperation Agreement with Department of Public Works, Operation Clean Sweep to administer the program. Redevelopment Goal: To improve the visual environment of the community to strengthen and enhance its image and identity. Address: Area-Wide. Block 6 Public Improvements (P13070) Project Description: Funding to a nonprofit developer for installation of new off-site public improvements in connection with the development of the Pascual Reyes Rental Townhouses. Refer to Objective P Developer: Pico Union Housing Corporation. Projected Cost: $15,100. FY07 Milestones: Monitor construction activities. Redevelopment Goal: To improve and enhance needed public improvements per City requirements. Address: Albany and Connecticut Streets. Funding Source: Pico Union Tax Increment. Public Improvements (P13400) Project Description: Implementation of an abatement program to install new deficient, hazardous and substandard public improvements. Developer: Agency. Project Cost: $230,700. FY07 Milestones: Advertise and select contractor to install new public improvements, and start construction activities. This program will be implemented in conjunction with Objective P23070, Public Improvements. Redevelopment Goal: The achievement of an environment reflecting a high level of concern for architectural, landscape and urban design principles, which will contribute to the economic recovery of the area. Address: Area Wide

11 Response to Development Opportunities (P16990) Agency staff will respond to development opportunities and review non-residential building permits, review development proposals, and provide technical assistance to developers and property owners as part of the ongoing redevelopment process to ensure conformance with appropriate plans and requirements. Project Financing (P19330) Agency staff will administer the Project s financial resources and expenditures, including managing debt service obligations. PAC/Citizens Participation (P19910) This objective allocates resources and staffing necessary for the functioning of the Pico Union I Project Area Committee (PAC). Agency support includes providing secretarial support, mass mailing public notices, materials, conducting PAC elections, staff support for the PAC and its subcommittees. Project General (P19990) This objective provides for unspecified costs not directly related to a specific Pico Union objective, but directly related to the administration of the Pico Union project including site office, technical, legal and administrative services for the operation of the site office and community participation