04/18/2000 RA RPT 02 - Laserfiche WebLink

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CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: April 18, 2000 Item No.: 2 Subject: Consideration of Amendment of the Redevelopment Plan for the Casa Blanca Redevelopment Project Area Background The Casa B!anca Redevelopment Project Area was initially adopted by the City Council in 1976. Subsequently, the Project Area was amended in 1990 and again in 1994 to revise certain provisions in the Redevelopment Plan to either conform to updated information and/or new legislation. The boundaries of the Project, however, have not been changed since initially adopted in 1976. The 1994 amendment was required so that the Redevelopment Plan for the Project would conform to the requirements of redevelopment reform legislation, commonly known as AB 1290. That legislation required, among other things, that the time limits for the Casa Blanca Project be shortened as follows: Prior AB 1290 Description Limitations Limitations Plan Term 4/24/2025 11/09/2016 Incur Debt 4/24/2025 01/01/2004 Receive Tax Increment None 11/09/2026 As shown above, AB 1290 significantly restricted the length of time the Agency is able to function within the Project Area. Of particular concern is the restriction on the deadline for the Agency to incur debt. At 2004, it will be just a few' years before that deadline is passed. As redevelopment is predicated on the establishment and repayment of debt, once that deadline is passed, the Project Area will be nearly "out of business" and would not be able to assist any new' development projects, issue ne~v bonds or establish any other kind of debt. Current Issue In addition to the restrictions outlined above, AB 1290 also restricts the ability of the Agency to change the above limitations by amending the redevelopment plan for the Project. However, if the Agency follows the lengthy procedure for a redevel0pment plan amendment outlined in the Community Redevel0pment Law and is able to prove the existence of remaining blight in the Project Area, the Agency would be able to extend the deadline for the issuance of debt in the Project Area by 10 years. Analysis Staff has reviewed the redevelopment program for the Project Area as well as its physical condition vis-a-vis blight and believes that a redevelopment plan amendment is a viable goal for the Project. As part of the Plan Amendment process, other Redevelopment Plan provisions will be evaluated, including the potential of adding territory. to the existing boundaries. The issue of amending the Redevelopment Plan for the Casa Blanca Redevelopment Project was presented to the Project Area Committee (PAC) at its regularly scheduled meeting on March 9, 2000. Ihe PAC voted unanimously to support an effort to amend the Redevelopment Plan for the Casa Blanca Project to extend the 2-1