09/19/2000 RA RPT 02 - Laserfiche WebLink

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, CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: Item No.: September 19, 2000 2 Subject: Consideration of a Proposed Scope, Budget and Contract for the Amendment of the Redevelopment Plan for the Casa Blanca Project Area Background The Casa Blanca 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 Limitation Limitation Plan Term 4/2712025 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 oftime 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". 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 redevelopment plan amendment outlined in the Community Redevelopment 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. 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. The PAC voted unanimously to support an effort to amend the Redevelopment Plan for the Casa Blanca Project to extend the deadline for the issuance of debt. Other provisions of the Redevelopment Plan that may be amended are to be separately considered by the PAC after receiving additional information from staff. 2-1