05-21-2002 RA RPT 04 - Laserfiche WebLink

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CITY OF RIVERSIDE Redevelopment Agency Memorandum People Serving People Riverside ~lI-America Clt~ 1998 HONORABLE MAYOR & AGENCY MEMBERS DATE: May 21, 2002 ITEM NO: 4 SUBJECT: RESOLUTION TO EXTEND TIME LIMIT FOR ACTIVITIES FOR PROPERTIE~ PURCHASED WITH REDEVELOPMENT AGENCY LOW AND MODERATE INCOMF FUNDS - 2308~ 2322 AND 2336 UNIVERSITY BACKGROUND: California Community Redevelopment Law, Section 33334.16, requires the Agency to initiate activities consistent with the development of Iow and moderate income housing within five years of the acquisition of any property purchased with Iow and moderate income funds. If such activities are not initiated within the time limit, the Agencycan, by resolution, extend the pedod 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 Iow and moderate income. In the event that physical development of the property for this purpose has not begun by the end of the extended pedod, 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 Iow and moderate income fund. CURRENT ISSUE: The Agency currently owns property that was purchased with Iow and moderate-income housing funds that have reached the time limit for retention without any activities consistent with development of affordable housing. A resolution is attached that will extend the time limit for an additional five years to develop these properties. ANALYSIS: The properties are located at 2308, 2322 and 2336 University Avenue (portions of APN 221~021-032 and all of APN 221-021~032.) The properties were the former Taste of the Sea restaurant and were acquired by the Agency in August and December, 1996. At acquisition, the adjacent pDperty at 3871 Eucalyptus was included, but was given to Habitat for Humanity to constn~ct a home for Iow and moderate-income individuals. Similar uses are intended for the remaining property. The attached resolution will extend the time limit to August 2006 for the property located at 2308 and 2322 University Avenue and to December 2006 for the property at 2336 University Avenue. FISCAL IMPACT: None. ALTERNATIVES: The properties could be sold and the proceeds deposited into the Agency's Iow and moderate income funds. 4-1