ABOUT THE PROJECT

As proposed by the 2010 Amendments, the City's Redevelopment Agency is considering the following modifications to its redevelopment plans for Project Areas 1, 1A, 2, 3, 3A and 4:

• Fiscally merge all of the Project Areas except Project Area No 1A. A fiscal merger would provide the Agency with greater financial capacity to carry out its redevelopment program by pooling together the Agency's tax increment revenue from the merged project areas (collectively the "Merged Project Area"). A merger would allow the Agency to shift tax increment revenue among the Merged Project Area, giving the Agency an opportunity to strategically allocate resources for specific projects and programs.
• Replace and combine fiscal limits for the Merged Project Area. The 2010 Amendments replace individual limits on the amount of tax increment revenue that can be collected, and the amount of tax allocation bonded indebtedness that can be outstanding at one time, for the Merged Project Area. Individual limits provided by each of the redevelopment plans for the Merged Project Area would be consolidated to a $251 million limit for the Agency's tax increment collection, and increase to a $75 million limit for the Agency's outstanding bonded indebtedness. These changes would ultimately strengthen the Agency's bonding capacity for long-term and large-scale redevelopment projects and programs as resources allow. Since staff is recommending that Project Area No. 1A not be merged with the other project areas, the 2010 Amendments establish a separate tax increment limit ($16 million) and bonded indebtedness limit ($5 million) for Project Area No. 1A.
• Extend time limits. These modifications would extend the life of certain project areas, and their ability to collect tax increment revenue and repay indebtedness to the maximum time limits allowed under AB 1290. The changes are critical as they would allow the Agency to continue its operations past current provisions, especially in collecting tax increment revenue to fund new projects. In addition, the modifications would extend by 10 years the time limit to incur indebtedness for Project Area No. 4.
• Consolidate individual redevelopment plans. Consolidating the Agency's individual redevelopment plans into a single consolidated plan for Project Area No. 1A and the Merged Project Area would efficiently coordinate redevelopment activities across the Agency's six project areas. Specifically, the Revised Plan would allow for one broad-based policy document that: (1) updates land uses permitted in the project areas as allowed by the City's General Plan and Zoning Ordinance (as amended time to time); and (2) makes clarifying changes that keeps the document in line with redevelopment law.