05/16/2000 RA RPT 06 - Laserfiche WebLink

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CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: May 16, 2000 Item No.: 6 Subject: RESOLUTIONS TO EXTEND TIME LIMIT FOR ACTIVITIES FOR PROPERTIES PURCHASED WITH REDEVELOPMENT AGENCY LOW AND MODERATE INCOME FUNDS - 3118 Madison, 4206 Park Avenue and 11th & Ottawa Background California Community Redevelopmerit Law, Section 33334.16, requires the Agency to initiate activities consistent with the development of low and moderate income housing within five years of the acquisition of any property purchased with low and moderate income funds. If such activities are not initiated within the time limit. the Agency can, by resolution, extend the period during which the Agency may retain the property for one additional period not to exceed five years. The resolution of extension must affirm the intention of the legislative body that the property be used for the development of housing affordable to persons and families of low and moderate income. In the event that physical development of the property for this purpose has not begun by the end of the extended period, or if the agency does not comply with this requirement. the property shall be sold and the proceeds from the sale shall be deposited in the agency's low and moderate income fund. Current Issue The Agency currently owns three properties that were purchased with low- and moderate-income housing funds that have reached the time limit for retention without any activities consistent with development of affordable housing. Resolutions are attached that will extend the time limit for an additional five years to develop these properties. Analysis The property at 3118 Madison Street (APN 230-274-004) was acquired on April 25, 1995 when the owner traded the property for one of the new houses the Agency constructed in the Casa Blanca Project Area. The existing house on the property was demolished and the Agency intends to donate the vacant land to a non-profit agency to build an affordable single-family house. The attached resolution will extend the time limit to April 2005. Vacant land located at 4206 Park Avenue (APN 211-232-005 and 211-232-006) in the University Corridor/Sycamore Canyon Merged Project Area was purchased on February 18, 1992. The Agency intends to donate the vacant land to a non-profit agency to build an affordable single-family house. The five-year time limit for this property expired in February 1997, so the current resolution will extend the time limit to February 2002. Finally, on December 29, 1992, the Agency purchased six surplus lots (APN 221-063-023) located at 11th and Ottawa from the City that had been the "Old Pipe Yard" in the University Corridor/Sycamore Canyon Merged Project Area. The Agency intends to develop single-family homes on the property as replacement housing resulting from the development of Town Square. The five-year time limit for this property expired in December 1997, so the attached resolution will extend the time limit to December 2002. Fiscal Impact None. Alternatives The properties could be sold and the proceeds deposited into the Agency' s low and moderate income funds. 6-1