02-03-2004 -AI
—City of West Covina
r Memorandum
AGENDA
ITEM NO. B-5i,
DATE February 3, 2004
TO: Andrew G Pasmant, City Manager
and the City Council
FROM: Christopher J. Chung
Redevelopment Director
SUBJECT: CONSIDERATION OF A RESOLUTION MAKING THE FINDING
THAT A PROJECT AREA COMMITTEE NEED NOT BE FORMED IN
RELATION TO THE PROPOSED AMENDMENTS TO THE
EXISTING REDEVELOPMENT PLAN FOR THE' MERGED
REDEVELOPMENT PROJECT AREA
RECOMMENDATION: It is recommended that the City Council adopt the
following resolution:
RESOLUTION NO, 'PO A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF WEST COVINA
FINDING AND DETERMINING THAT A PROJECT
AREA COMMITTEE NEED NOT BE FORMED IN
RELATION TO THE PROPOSED AMENDMENTS TO
THE EXISTING REDEVELOPMENT PLAN FOR THE
MERGED REDEVELOPMENT PROJECT AREA
DISCUSSION:
California Redevelopment Law (CRL) dictates that at the time redevelopment projects are
adopted they must contain language making a determination on the use of eminent domain. The
redevelopment project areas within the City of West Covina, including the Merged Project Area,
have established the Community Development Commission's (formerly Redevelopment Agency)
authority to use the power of eminent domain. Eminent domain may be used to acquire property
interests in full or in part. Although the CRL permits, agencies to incorporate eminent domain
authority into redevelopment plans, this authority lasts for a maximum of twelve (12) years. In
order for redevelopment agencies to maintain this authority the affected redevelopment plans
must be amended to extend the power of eminent domain.
Previously on December 2, 2003, the City Council authorized staff to take the steps necessary to
begin amending the Merged Project Area to extend the authority to use'eminent domain powers.
The amendment procedures established by the State Legislature in the CRL for continuing or
extending eminent domain are more .streamlined and less cumbersome than other types of plan
amendments. This is due primarily to the fact that the amendment pertains to one aspect of the..
redevelopment plan and does not alter other features of the plan, such as time to incur debt, or the
maximum amount of increment a project area is entitled to occur.
AMENDMENT PROCEDURES:
As part of the amendment proceedings to continue and maintain eminent domain authority the
City Council must make a determination regarding the creation of a Project Area Committee
(PAC). Section 33385 of the California Health and Safety Code states in part:
33385. (a) The legislative body of a city or county shall call upon the residents
and existing community organizations in a redevelopment project area to form a
project area committee in either of the following situations:
(1) A substantial number of low-income persons or moderate -income persons,
or both, reside within the project area, and the redevelopment plan as adopted
=000ac
Andrew G. Pasmant, City Manager and the City Council
February 3, 2004
Page 2
will contain authorityfor the agency to acquire, by eminent domain, property on
which any persons reside.
(2) The redevelopment plan as adopted contains one or more public projects
that will displace a substantial number of low-income persons or moderate -
income persons, or both.
To paraphrase this section of the CRL, a Project Area Committee must be created if a substantial
number of low-income or moderate -income residential properties are at risk of being acquired
through eminent domain by the Community Development Commission (CDC). In order to
make this determination, staff with the assistance of the consultant, A.C. Lazzaretto &
Associates, conducted a review of the Merged Project Area. The area covered by this project
area are overwhelmingly zoned and developed as commercial properties. There are a few
pockets of residential within the project area, but for the most part the area is predominantly
commercial and/or industrial in nature. In those places where residential properties are located,
staff and Mr. Lazzaretto inspected the premises and reviewed the Los Angeles County Assessor's
data for these residential areas. Based on these investigations, it has been determined that there
are few if any low-income or moderate -income families residing in the Merged Project Area.
The vast majority of the homes in the project area are all relatively new, are in good repair, are
gated, and were not developed with CDC assistance.
Because there are not a substantial number of low- and moderate -income persons subject to
being displaced because of eminent domain, it is appropriate for the City Council to adopt a
resolution finding that a PAC need not be formed in relation to the proposed amendments to the
Merged Project Area.
FISCAL IMPACT:
Adopting this resolution will reduce the potential costs of amending the Merged Project Area. If
a Project Area Committee were to be created, the Agency would be required to fund the activities
of the PAC, including Staff and legal assistance.
Prepared by: Armine Chaparyan
Attachment:
Redevelopment Director
Resolution
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Reviewed by: Mike Lee
Redevelopment Manager
Ci AWttomy
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