AB 1290 Imp Plan/AB 315 Plan
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AB 1290 Implementation Plan
and
AB 315 Affordable Housing Production Plan
For the Central Campbell Redevelopment Project Area
Adopted November 16,2004
CITY OF CAMPBELL REDEVELOPMENT AGENCY
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TABLE OF CONTENTS
Part 1 - AB 1290 Reauirements - Implementation Plan
Paf!e
I. Introduction 1
II. Goals and Objectives for the Next Five Years 4
III. Specific Programs, Potential Projects and Estimated
Expenditures for the Next Five Years 8
IV. Explanation of How the Goals, Objectives, Programs
and Expenditures Will Eliminate Blight 15
V. Affordable Housing Activities 23
Part 2 - AB 315 Reauirements - Affordable HousiDl! Production Plan
Executive Summary 24
I. Introduction 25
II. Analysis of Existing Housing Obligation 27
III. Projection of the Number of Units to be Produced 27
IV. Analysis of Affordable Housing Obligation 28
V. Programs For Meeting Affordable Housing Production 29
VI. Housing Element Consistency 30
VII. On-Going Monitoring of Construction and Rehabilitation 31
VIII. Financial Requirements of the Agency 31
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PART 1
AB 1290 REQUIREMENTS - IMPLEMENTATION PLAN
I. INTRODUCTION
The original area of the Central Campbell Redevelopment Project Area constitutes 260 acres and
has been in existence since 1983. Its goal is to facilitate downtown revitalization and the areas in
and around the downtown area. The Project Area was expanded in 1992 to include 101 acres in
the McGlincy Lane area for the purpose of improving infrastructure and facilitating the
redevelopment of the former Winchester Drive-In site. The entire Project Area including the
original area and expanded area encompasses approximately 361 acres (the "Project Area"). In
1993, the Community Redevelopment Law Reform Act (AB 1290) was signed into law requiring
California redevelopment agencies to produce Implementation Plans every five years detailing
the goals and objectives of the Agency related to how it intends to implement its Redevelopment
Plan during the five year period. The Implementation Plan must contain the following
information:
· Specific goals and objectives for the five year period including potential capital projects and
estimated expenditures planned during the period.
· An explanation of how the goals, objectives, programs, and expenditures will eliminate
blight.
· A plan of how to implement the use of Low and Moderate Income Housing Funds (the
"Housing Fund") required to be set-aside under redevelopment law for use to create,
rehabilitate, or preserve low and moderate income housing and meet the Agency's affordable
housing production requirements.
In summary, the Plan sets the direction the agency will take over a five year period. It shall serve
as a useful document and blueprint for the public in terms of understanding the programs the
Agency intends to pursue. The Agency adopted its first Implementation Plan in November,
1994, and updated in 1999. During that time frame the Agency has accomplish several of its
goals and objectives as set out the Implementation Plan.
1. Downtown Area
A. Has added approximately 400 new parking spaces with a 300 space public parking
stmcture and approximately 100 new on-street public parking spaces around the
downtown loop streets.
B. Helped finance the restoration of the Heritage Theater, a 790 seat regional performing
arts theater.
C. Helped finance the implementation of the Campbell Community Center Master Plan
City of Campbell Redevelopment Agency
Part I - Implementation Plan
including a newall-weather track, lighted temlis and handball courts, new skateboard
park, newly installed football and soccer fields and landscaped parking.
D. Created the Campbell Avenue Master Developer Site and approved a DDA for
construction of a mixed use residential over retail development.
E. Amended the Downtown Storefront Improvement Program to increase the grant amount
and added a loan program. To date, the program has led to the improving the
appearance of approximately 15 commercial properties downtown while generating
private investment at a 3:1 ratio.
F. Facilitated the historic renovation of the Farley Building at the northeast comer of
Campbell Avenue and Central Avenue, the oldest building in Canlpbell.
2. North of Campbell Avenue (NOCA)
A. Facilitated the redevelopment of Harrison Avenue from industrial to 51 detached
residential units including the reconstruction of Harrison A venue from Civic Center
Drive to Salmar Ave.
B. The 20 unit Orchard Grove Residential Development at the southeast corner of Harrison
Avenue and Civic Center Drive has established the development pattern for the rest of
Harrison Avenue with craftsman style bungalows in the heart of downtown.
C. The widening of Salmar Avenue was completed as part of a larger public works project
facilitating traffic circulation in and around the City's "power center" on Hamilton
Avenue.
3. South of Campbell Avenue (SOCA)
A. The development of a 348 unit Apartment Development including 69 very low income
units on Railway Avenue.
B Undergrounding of utilities along Campbell Avenue between the railroad tracks and the
Hwy 17 overpass.
C. The development of 21 townhouse units on Gilman replacing an unlawful trailer park.
4. McGlincy Lane Area
A. Acquired and facilitated the redevelopment of the former Winchester Drive Site into a
280,000 square foot research and development business park and a four acre public park
B. New storm drain installed and new fire hydrants to allow new development.
C. A new water main was constmcted in the area and storm drain line along Cristich Lane
at McGlincy Lane. Also, a traffic signal was constructed at Union Avenue and
McGlincy Lane.
D. The resurfacing of McGlincy Lane from Curtner Avenue to Union Avenue.
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Part I - Implementation Plan
Low and Moderate Income Housim! Production
A. Since 1983, a total of 682 housing units have been constructed in the redevelopment
project area including 24 units currently under construction. The Agency has credit for
191 affordable units as defined by the Santa Clara County Housing Authority including
157 units that are affordable to very low income persons. This represents 383% of the
Agency's legal requirement.
B. The Agency created a First Time Homebuyer Program whereby the Agency has assisted
30 first time homebuyers own a home in Campbell.
C. A rental assistance program has been established that provides one-time financial
assistance to low income persons seeking to attain affordable housing.
5. Financial
A. The Agency issued a total of $25 million in Tax Allocation Bonds between 1999 and
2002 to finance capital projects within the Redevelopment Project Area including a new
public parking structure downtown, the Heritage Theater, and renovation of the
Campbell Community Center.
In summary, the activities of the Campbell Redevelopment Agency over the last ten years has
continued the process of carrying out the goals and objectives of the Redevelopment Plan by
eliminating blight throughout the Project Area, revitalizing the downtown and surrounding areas,
providing infrastructure in the McGlincy Lane area and providing decent and safe housing for
low and moderate income persons.
The amended and restated Plan is intended to meet the requirements of AB 1290. It is divided
into two parts. Part 1 is called the "AB 1290 Requirements - Implementation Plan" and covers
all the requirements discussed previously listed above, except for the Agency's Project Area
housing production requirement. Part 2 is called "AB 315 Requirements - Affordable Housing
Production Plan" and specifically addresses the Project Area housing production plan mandated
by the AB 315.
The five-year planning period specifically covered by this Plan encompasses years 2005 through
2009 of the Agency. The affordable housing production plan contained in Part 2 covers a ten-year
period from 2005 through 2014 as required under AB315.
This Plan is intended to provide general guidance for the implementation of the Agency's programs and
activities. It is expected that particular constraints and opportunities, not fully predictable at this time,
will arise in the course of undertaking the programs and activities described in this Plan over the next
five years. Therefore, the Agency intends to use and interpret this Plan as a flexible guide and intends
that the Agency's specific programs and activities, as actually implemented over the next five years, may
vary in their precise timing, location, cost, expenditure, scope, and content from that set forth in this
document without requiring an amendment to this Plan and with the ability nonetheless to make findings
of consistency with the Plan, so long as the underlying purpose and effect of the programs and activities,
as actually implemented, are consistent with the purpose and effect articulated in this Plan.
City of Campbell Redevelopment Agency
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Part I - Implementation Plan
II. GOALS AND OBJECTIVES FOR THE NEXT FIVE YEARS
An agency's AB 1290 implementation plan must contain specific goals and objectives for the
next five years. In the case of the Campbell Redevelopment Agency, the goals and objectives
have been derived from those contained in the Central Campbell Redevelopment Plan,
Downtown Development Plan, and policies and direction of the Redevelopment Agency Board
and City Council.
Described below are Agency's goals and objectives for the next five years. They are listed by
certain geographic areas within the Central Campbell Redevelopment Project Area (see map -
Exhibit A) and by other specific categories.
1. Downtown Area
Description: Historically, the downtown core area has been defined by the loop streets at
the point where Historic Downtown Campbell originated in the late 1800s. As a part of the
Downtown Development Plan Update in 1995, the City made a conscious decision to expand
both the perception and identity of the downtown to include areas east and west of the
downtown core primarily along East Campbell Avenue bound by the Campbell Community
Center to the west and the Pruneyard Shopping Center to the east. The downtown core, and
historically the heart of the city, is bound by Civic Center and Orchard City Drives, and
adjacent areas to the north along Harrison Avenue. The downtown core consists ofa number
of historic buildings dating back to the late 1880's and reminiscent of the days when
agriculture and fruit canning plants were the central economy in the Santa Clara Valley.
During the 1960s and 70's the downtown deteriorated both physically and economically.
The Central Campbell Redevelopment Project Area was created in 1983 in large part to help
revitalize the downtown. In 1988, the Downtown Development Plan was approved and
amended in 1995, intended to serve as a policy tool for downtown revitalization efforts.
A. Goal:
To return downtown Campbell to an economically viable business district and the civic
identity of the City through facilitation of controlled economic development encouraging
a mixture of development that includes ground floor retail and restaurant, residential,
personal service and office with an emphasis on providing a balance of day and evening
activities.
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Part I - Implementation Plan
B. Obiectives:
i) Identify key vacant, underdeveloped, nonconforming and blighted properties in the
downtown and facilitate redevelopment of those properties consistent with the goals
and objectives of the Redevelopment Plan and the City's General Plan.
iii) Identify opportunities to work in partnership with property and business owners to
encourage use and re-use of properties that are consistent with redevelopment goals.
iv) Encomage and facilitate the use and re-use of property within a quarter mile of the
downtown light rail station for mixed llse and residential consistent with the goals and
objectives ofthe General Plan.
v) Continue downtown marketing and business attraction efforts.
vi) Continue to improve pedestrian circulation and connections throughout the
downtown.
2. North ofCamobell Ave. (NOCA)
DescriDtion: NOCA is the area north ofthe downtown area. It forms a major entrance to the
downtown area from Hamilton Ave. The area is characterized by non-conforming
warehousing and light industrial uses with many buildings in substandard condition. The
industrial buildings and uses are no longer appropriate in this area. The area was designated
to allow for a mixture of residential, office, and commercial uses that would be compatible
with and complement downtown revitalization efforts
A. Goals:
To facilitate the continued transformation of the area from industrial buildings and
nonconforming uses to residential and commercial uses creating an attractive gateway
entrance to the Downtown and supportive to revitalization.
B. Obiectives:
Continue to monitor redevelopment opportunities along Salmar Avenue, including
residential and/or mixed use development.
3. South of Camobell Avenue (SOCA)
DescriDtion: The SOCA area is located south of the downtown and adjacent to Los Gatos
Creek. The area is characterized by small lot, industrial buildings and nonconforming uses,
many of which are in poor condition. The General Plan land use designation is mixed use
residential, commercial and office, which would be compatible with the adjacent downtown
area and provide customers in close proximity to downtown.
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Part I - Implementation Plan
A. Goal:
To transform the non-conforming industrial uses to residential and/or mixed use that will
complement and help support the downtown area.
B. Objectives:
i) Evaluate opportunities to facilitate the redevelopment of non-conforming industrial
properties, including the assemblage of property, to facilitate the development of
housing, including affordable housing, and mixed use development.
4. McGlincy Lane Area
Description: The McGlincy Lane area is a fully developed light industrial area located east
of Highway 17 centered along McGlincy Lane. It was brought into the Redevelopment
Project Area in 1992 in order to address a host of adverse conditions, including dilapidated
buildings, substandard infrastructure, and a number of factors inhibiting proper land
utilization and development.
A. Goal:
To promote the physical and economic revitalization of the McGlincy Lane Area.
B. Objectives:
i) Continue to evaluate and improve the opportunities for infrastructure improvements
in the area.
ii) Encourage bringing dilapidated properties up to current development standards
through development, redevelopment and code enforcement in cooperation with
Community Development.
5. Hamilton Avenue at Creekside Way
Description: This area is bordered by Hamilton Avenue, Bascom Avenue and Creekside
Way. A Planned Development was approved in 2000 on the remaining four acre parcel to
build a 210 room business class hotel and 160,000 square feet of Class A office. The parcel
has remained vacant due to poor economic conditions. Adjacent to the site the Hamilton
station is under construction for the Vasona Light Rail line. Light rail will be operational by
the fourth quarter, 2005. The Agency and Community Development continue to work with
the property owners on a viable development.
A. Goal:
To facilitate the development of a business class hotel at this site..
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Part I - Implementation Plan
B. Obiectives:
Facilitate the development of the vacant parcel at 900 E. Hamilton Ave.
6. Winchester Boulevard Area
This area includes the Campbell Community Center and the Campbell Shopping Center
along west side of Winchester Boulevard and Heritage Village development on the east side.
The Campbell Community Center was acquired by the City in 1985 and is subject of a master
plan for comprehensive community use including the restoration of a community theater.
The Community Center open space areas were completely redesigned and improved
including new tennis courts, soccer fields, all-weather track, and handball court. Heritage
Theater has been completely renovated into a regional performing arts theater. The Campbell
Shopping Center is a strip center both economically and physically blighted owned by the
Home Church except for one parcel.
A. Goal
To work toward a master plan for redeveloping the Campbell Shopping Center into a more
functional and better designed center that may include mixed use that is economically
productive and well planned.
B. Obiectives
i) To have the Agency, the Home Church and the remaining property owner work
together to achieve a desirable development.
ii) Evaluate the improvement of the Campbell Avenue/Winchester Boulevard
intersection as a pedestrian connection between the Community Center and the
downtown.
7. Low and Moderate Income Housinf! Fund Activities
Descriution: Redevelopment agencies are required to spend 20% of their gross tax
increment funds on affordable housing activities.
A. Goal:
To facilitate the provision of decent, safe and sanitary housing for low and moderate income
individuals and families.
B. Objectives
i) Evaluate residential development opportunities City wide, including land acquisition
for affordable housing.
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Part I - Implementation Plan
ii) Work with non-profit housing developers to evaluate housing rehabilitation projects
for low and moderate income individuals.
8. Financial
Description: The Agency's principal revenue source is tax increment. Over the last two
years and projected through 2004/05, tax revenues are f1at ref1ecting the sluggish commercial
real estate market, and lack of new commercial development within the project area. Over
the next five years, tax revenues are projected to rise moderately averaging between 2% and
5% annually. While the Agency's financial condition is stable, the Agency must contend
with the State takeaways for the Education Revenue Augmentation Fund (ERAF). For fiscal
years 2005 and 2006, the state will extract a total of $1 ,030,000 from Agency revenues. The
ERAF payments combined with Agency debt service and tax sharing obligations leaves a
limited amount of available funds for plan implementation.
While the Agency extended its ability to issue debt, it is unlikely the Agency will be in a
position to take on any additional long term debt given the Agency's tax sharing obligations
and the Redevelopment Plan time limits related to plan effectiveness and receipt of tax
increment. The Agency's goal over the next five years will be to set aside $3 million to $4
million for plan implementation before tax sharing obligations increase significantly in
2011112.
A. Goal:
To manage the Agency's finances and maximize the financial ability of the Agency to
finance the Implementation Plan given State takeaways, its debt service and tax sharing
obligations.
B. Objectives:
ii) Monitor and manage debt service payments on outstanding debt.
iii) Continue to contribute $400,000 annually towards the City's portion of debt service
on the 1993 and 1997 COPs until Community Center revenues equal the debt
obligation on the bonds per the Reimbursement Agreement between the City and
Agency.
iv) Monitor and manage assessed valuation trends, tax increment payments from the
county, and tax sharing payments.
v) Progranl $3 million to $4 million over the next five years to finance the
Implementation Plan.
III. SPECIFIC PROGRAMS, POTENTIAL PROJECTS AND ESTIMATED
EXPENDITURES FOR THE NEXT FIVE YEARS
The AB 1290 Implementation Plan must provide specific programs, including potential projects
and estimated expenditures for the next five years. Listed below are the programs planned by the
City of Campbell Redevelopment Agency
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Part I - Implementation Plan
Campbell Redevelopment Agency for the next five years, as well as the estimated expenditures
and timing of the actions. The specific programs correspond specifically to the goals and
objectives listed in Section II and demonstrate how such goals and objectives will be achieved.
The estimated expenditures are based on financial projections of the Agency, which are based on
certain revenue assumptions.
Many projects are dependent upon market demand and developer interest. Therefore, these
programs and expenditures should be viewed as a guide to the direction of the Agency that may
require some mid-course corrections. As required by AB 1290, the Agency will review, and
possibly amend, the Plan within two to three years after adoption.
The attached Table I and Table II indicate the complete Agency projected budget for the next five
years for the "80% Agency Fund" and the "20% Housing Fund budget." These tables provide a
comprehensive look at Agency projected revenues and planned expenditures over the next five
years.
1. Downtown Area
A. Develop/Redevelop Kev Downtown Parcels: There are several key parcels
downtown that have the greatest potential for development or redevelopment. These are
either vacant parcels, underdeveloped parcels, or parcels with uses which are
inconsistent with downtown development goals and objectives. The Agency would
anticipate working with the property owners and/or developers of these parcels to create
attractive developments.
Expenditure: $2,000,000
Source of Funds Tax Increment
Timine:: Timing will depend on market conditions and opportunity.
B. Store Front Improvement Proe:ram:. The Storefront Improvement Program is
intended to provide incentive to business and property owners to partner with the
Agency in improving the commercial fronts of the downtown business district and
thereby creating a more inviting retail atmosphere. The program includes both grant and
loan components
Expenditure: $75,000/annually
Source of Funds Tax Increment
Timine:: 2004/05
C Vasona Lie:ht Rail Stations: A Hamilton Avenue, Downtown Campbell and
Winchester Avenue light rail stations will be completed and operational by fourth
quarter 2005. The areas around the light rail stations may present opportlmities for
mixed uses bringing housing and retail closer to transportation.
Expenditure: $500,000
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Part I - Implementation Plan
Source of Funds: Housing Set-Aside Funds
Timine:: Timing will depend on market conditions and opportunity.
D. Downtown Business Attraction Proe:ram: The Agency adopted the Downtown
Business Attraction Program in 1997 to assist with the economic viability of certain
retail and restaurant businesses that were determined to have an immediate impact on
revitalization efforts. Assistance would be provided in the form of off-sets for capital
improvements such as public infrastructure, restaurant infrastructure and permit fees
that tend to discourage restaurant and retail establishments.
Expenditure: As determined.
Source of Funds: Tax Increment
Timine:: Ongoing
E. Downtown Marketine: and Promotions: The Agency works to retain and attract
business and patrons to downtown through a variety of mechanisms. Marketing of the
downtown occurs through such special events like the Downtown Campbell Farmer's
Market, downtown festivals, street banners, marketing brochures, advertising, street tree
lights and special street signage used to identify parking areas or downtown
identification.
Expenditures: $20,000 a year
Source of Funds: Tax Increment
Timine:: Ongoing
F. Improve Downtown Pedestrian Circulation: A key ingredient to the success of
downtown is the ease to which pedestrians can traverse the downtown district free of
obstacles, easily access shops, parking areas and connect important destinations such as
the Prune Yard Shopping Center, the Los Gatos Creek Trail, the Community Center and
Heritage Theater and points in between.
i) Downtown Sidewalk Program - Construct and replace sidewalk including
standard improvements such as street trees and historic street lights around the
downtown to ensure a comprehensive pedestrian walkway serving downtown
business. Over the last five years significant strides have been made filling in
the gaps around the loop streets. There is a current CIP project to reconstruct
sidewalk in certain areas downtown, provide bulb-outs along Campbell Avenue
where none exist and complete any streetscape items that are necessary.
Expenditures: $320,000
Source of Funds: 2002 Bond Proceeds
Timine:: 2004/05
ii) Campbell Avenue Streetscape Extension - This program would extend the
streetscape improvements along Campbell Avenue between the railroad tracks
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Part I - Implementation Plan
and the freeway overpass. Included in the project would be installation of a
landscape median. This project is identified in the Downtown Development
Plan and will help make the physical connection of the downtown area with the
Prune Yard Shopping Center and points in between.
Expenditure: $750,000
Source of Funds: 2002 Bond Proceeds
Timin2 : 2005/06
2. North of Campbell Avenue (NOCA)
A. Salmar Avenue Improvements: The construction of new sidewalk along Salmar
between Harrison Avenue and Hamilton Avenue
Expenditure: $250,000
Source of Funds: 2002 Bond Proceeds.
Timin2: 2005/06
B. Additional Redevelopment Opportunities: The redevelopment of the NOCA
industrial area is an important component of the Agency's downtown revitalization
efforts. The goal is to phase out existing industrial buildings in the Salmar Avenue area
to facilitate mixed use. Some this has occurred with the redevelopment of the east side
of Harrison Avenue. However, the industrial along Salmar is still profitable and
therefore motivation is low for redevelopment. The Agency has limited funds to assist
in this redevelopment. Therefore, redevelopment will depend largely on the availability
of agency resources and market conditions.
Expenditure: $1,000,000
Source of Funds: $250,000 Tax Incrementl750,000 Housing Set-Aside Funds
Timin2: Much depends upon ultimate cost to acquire existing industrial properties
and evaluate business relocation costs.
3. South of Campbell Avenue (SOCA)
A. Redevelopment Opportunities: Much of the SOCA area is developed with non-
conforming industrial buildings. However, the 20 unit housing development recently
completed by CORE Development on the old trailer park on Gilman Avenue may
initiate The General Plan allows for Medium to High Density Residential in several
areas. There are areas adjacent to newly renovated Campbell Park and the Los Gatos
Creek area suitable for residential use. The Agency will be able to provide limited
assistance using housing funds.
Expenditures: $1,000,000
Source of Funds: Housing Set Aside Funds.
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Part I - Implementation Plan
Timin!!: 2000/01
4. McGlincv Lane Area
A. The McGlincy Lane Area is the city's industrial area confirmed during the most recent
General Plan update. The Agency's primary focus over the last several years in this
area has been the redevelopment of the former Winchester Drive-In Theater site in 2000
and replacing dilapidated infrastructure that has discouraged redevelopment. To reduce
costs for redevelopment, the Agency has had installed new storm drain main line from
McGlincy to Union A venue, new water main along McGlincy, new sidewalk along
McGlincy lane between Union Avenue and Edith Morley Park, new fire hydrants along
McGlincy and most recently the installation of new storm drain along Cristich Way and
repaving of McGlincy Lane and Curtner Avenue. It is in this area that the Agency can
be most helpful.
B. The City and Agency will periodically evaluate this area to determine how it can
provide incentive to property owners and developers to reinvest in this area.
Expenditures: unknown
Source of Funds: Tax Increment
Timin!!: As opportunity presents itself
5. Hamilton Avenue at Creekside Way
A. Development of Parcel at 900 E. Hamilton Avenue - This property is approximately
4.8 acres having zoning approvals for a 210 room business class hotel and a 160,000
square foot office building. The hotel property is being acquired by Matrix Lodging,
LLC with plans to build an eSuites Hotel. The Agency is currently working with Sand
Hill Properties (current owner) and Matrix Lodging, LLC to facilitate this development.
Expenditures: No capital expenditures are proposed at this time.
Timin!!: 2004/05
B. Vasona Li!!ht Rail Station - A light rail station is planned for Hamilton Avenue at
Highway 17 as a part of the Vasona Light Rail line. Staff continues to work with the
Valley Transportation Agency (VT A) during the planning process to ensure Campbell
is well served by light rail.
Expenditures: No capital expenditure is proposed.
Timin!!: 2004/05
6. Winchester Avenue Area
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Part I - Implementation Plan
A. Campbell Shoppine: Center: This shopping center consists of multiple parcels all
owned by the Home Church except for one parcel consisting of four retail stores. This
shopping center is economically and physically deteriorating with disjointed uses,
deferred maintenance, poor commercial design, and multiple ownerships. The City and
Agency wants to work with ownership to develop a Master Plan for redevelopment of
the site. As is, the shopping center detracts from the Campbell community and the
Agency's goal would be to have mixed use along the Campbell frontage and possibly
incorporate a residential component at the rear of the property
Expenditure: 350,000
Source of Funds: $250,000 Housing Set Aside Funds/$l 00,000 Tax Increment
Timine:: When opportunity presents itself.
7. Low and Moderate Income Housine: Fund Activities
A. The Agency is currently working with Charities Housing to develop a 40-45 unit
affordable housing project on land owned by the Santa Clara Valley Water District.
The property is approximately 3 acres at the northeast corner of Campbell Avenue and
San Tomas Expressway.
Expenditure: $3,000,000
Source of Funds: Housing Set-Aside Funds
Timine:: 2004/05
B. First Time Homebuver Proe:ram: The First Time Homebuyer Program provides
silent second mortgages to low and moderate income persons to enable them to afford
to buy a home in Campbell.
Expenditures: $150,000 annually
Timine:: Ongoing
C. Rental Assistance Proe:ram: This program was established in 1997 through Catholic
Charities to provide one-time or temporary financial assistance for low income persons
to get established in rental housing or keep their rental that may be jeopardized due to
an unexpected financial setback which may put the person at risk of homelessness if
they cannot pay the rent. The City receives a number of calls for such assistance from
low-income persons each year, consequently, there is a need in the community for such
a program.
Expenditure: $20,000 annually for five years.
Timine:: On-going
8. Financial
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Part I - Implementation Plan
A. Bond Issuance: Aside from an extraordinary spike in revenues, its is unlikely that the
Agency will issue any long term debt during this planning period due to flattening
revenues, significant tax sharing obligations and State takeaways.
B. Monitor and mana2e debt service payments on the 1993 and 1997 COPs The
Agency makes annual payments to service a portion of the debt service for the
Campbell Community Center.
Expenditures: $685,000 annually
Source of Funds: Tax Increment
Timin2: Ongoing
C. Monitor and mana2e debt Service payments for RDA 1999 and 2002 Tax
Allocation Bonds: The Agency issued bonds in 1999 and 2002 netting approximately
$25 million to finance a downtown public parking structure, the Campbell Community
Center Master Plan, the renovation of the Heritage Theater and other RDA capital
projects.
Expenditures: $1.8 million to $2.3 million
Source of Funds: Tax Increment
Timin2: Ammally
D. Education Revenue Augmentation Fund (ERAF) Payments: The State has required
the Agency to make ERAF payments.
Expenditures: $515,000
Source of Funds: Tax Increment
Timin2: 2004/05 and 2005/06
E. Contribution To City's Debt Service Payment on Community Center: The Agency
contributes $400,000 annually to the City's portion of the debt service payment on the
Campbell Community Center. This contribution will continue until the Community
Center lease revenues equal the debt service for the city's portion of the 1997 and 2002
COPs.
Expenditure: $400,000
Source of Funds: Tax Increment
Timin2: Annually
F. Monitor assessed valuation trends. tax increment payments from the county. and
tax sharin2 payments: The Agency shall continue to monitor assessed valuation
trends for the project area, tax increment payments from the county, and tax sharing
payments to the county and other affected taxing entities.
Expenditures: $5,000 contracted for consulting services
Source of Funds: Tax Increment
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Part I - Implementation Plan
TimiD!!: Ongoing
IV. EXPLANATION OF HOW THE GOALS, OBJECTIVES,
PROGRAMS AND EXPENDITURES WILL ELIMINATE BLIGHT
1. EXISTING BLIGHTING CONDITIONS
AB 1290 requires that an Agency provide an explanation of how the goals, objectives,
programs and estimated expenditures for the next five years will eliminate blight. In 1992,
the City of Campbell Redevelopment Agency amended its Redevelopment Plan to add
territory in the McGlincy Lane Area.
As part of that amendment, in March 1992, a report of blighting conditions in the McGlincy
Lane Area was prepared as well as a report on remaining adverse conditions in the original
Central Campbell Redevelopment Project Area. Most of the blight findings apply today and
have been incorporated into this report.
A. Existin!! Conditions in the Downtown: The nine block area which comprises the
downtown core declined over the years in importance and vitality as the city's retail
focus over the years. Historically, this stretch of East Campbell Avenue, especially
between Second St. and the railroad, provided a full range of retail and commercial
servIces.
The closure of the fruit packing plants and the rise of strip commercial development
along Winchester Boulevard. and Hamilton Avenue contributed to the downtown's
decline as a retailing area.
At the same time, buildings which once housed healthy retail establishments have been
allowed to decline by property owners and are now attractive only to more marginal
uses which cannot afford the rents prevalent for newer buildings. The net result has
been a less active pedestrian environment which fails principally to adequately support
retail activity. While during the last five years, the Agency's efforts have improved
considerably the retail conditions and community environment that has made it more
attractive to retailers, consumers and our citizenry, the downtown retail market is still
extremely fragile continuing to house marginal businesses and deteriorated properties
that struggle to compete in a vibrant Silicon Valley including a revitalized Pruneyard
Shopping Center and the newly developed Santana Row. In downtown Campbell,
several conditions tend to mitigate against a totally private, self-revitalization approach.
These include:
i) The presence of relatively small parcels, sub-standard buildings, fragmented
ownerships and, in some case, marginal businesses.
ii) Street frontages with inadequate retail continuity.
iii) A downtown that lacks a significant number of destination retailers to intercept
City of Campbell Redevelopment Agency
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Part I - Implementation Plan
potential customers passing by on adjoining streets
iv) A number of property owners and businesses unable or unwilling to solely assume
the risks associated with a private revitalization effort.
A revitalization effort that relies solely upon the entrepreneurial spirit of existing
property owners and businesses is unlikely to succeed in downtown Campbell at the
present time. Not only that, but current property owners and business lack the
strength to assume the substantial front-end costs needed to kick off such a
revitalization effort.
It is clear that public intervention and assistance will be required. However, as
implementation proceeds, private property owners and businesses will be expected to
assume an ever increasing role in the revitalization of downtown.
Although progress has been made in the downtown over the last few years, the retail
environment is still extremely fragile. Rents, while moving closer, are still on
average below market. There are still vacant properties downtown, marginal
businesses and underdeveloped properties. While to a lesser degree, most of the
adverse conditions listed above exist today.
B. Remainint! Adverse Conditions in Orit!inal Proiect Area: Adverse conditions
remaining in the original redevelopment project area include, but are not limited to:
i) Substandard and Deteriorated Buildings: A number of buildings within the
redevelopment project area are of construction type that is substandard to modern
construction methods. Other buildings show signs of deferred maintenance and
physical deterioration. A few buildings are deteriorated to the point that they may
be considered to be dilapidated.
The downtown area contains several commercially occupied buildings that date
from a period when Campbell was an agricultural packing and canning center. In
many cases, such buildings are of corrugated metal construction and were possibly
built as barns, drying sheds, or warehouses. These buildings often show evidence of
deterioration and poor maintenance including rust, dents, and ripped metal panels.
Some of the buildings have been "modernized" over the years by the construction of
false fronts or the addition of stucco or metal siding in an effort to cover the
corrugated metal. Industrial occupied buildings in the area also show signs of
aging, deterioration and lack of maintenance.
ii) Substandard and Deteriorated Public Improvements: A wide range of substandard
and deteriorated public improvements is still to be found within the boundaries of
the existing redevelopment area, particularly the McGlincy lane area. Deficient
improvements include substandard streets, deteriorated paving, irregular paving
edges, inadequate drainage systems, or missing or damaged curbs, gutters, or
sidewalks.
Many of the streets in areas occupied by industrial uses are substandard in terms
City of Campbell Redevelopment Agency
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Part I - Implementation Plan
of design, construction, and width. Because of these adverse conditions, auto and
truck parking is often haphazard, vehicular circulation is impeded, and the loading
and unloading of trucks can be difficult.
Although many new public improvements have been made since the inception of
the redevelopment program, much more remains to be accomplished. Today,
substandard and deteriorated public improvements continue.
iii) Deteriorated Residences and Substandard Housing Conditions: A number of
aging and, in some case, deteriorated residences are scattered within the
boundaries of the existing redevelopment project area. Most of these residences
are adversely impacted by adjoining incompatible uses, truck movements, or
heavy vehicular traffic. Many of these residences are non-conforming.
iv) Nonconforming Uses: Nonconforming uses remaining include a fraternal
organization and ground floor office uses in the downtown. Also, the NOCA and
SOCA areas have considerable nonconforming industrial uses incompatible with
the residential and mixed uses being encouraged.
C. McGlincv Lane Expansion Area: The following is an overview of the blighting
conditions found in the McGlincy Lane Area:
i) Building Conditions: The condition of buildings within the area were evaluated
by means of a building condition survey. Of the 158 major buildings in the area,
70 (or approximately 44 percent) were found to have significant physical
deficiencies.
ii) Substandard Street Improvements: Field surveys revealed deficiencies in both
public and private streets in the area. Such deficiencies include substandard or
deteriorated paving, irregular paving edges, inadequate curbs and gutters, drainage
systems that are lacking or substandard, insufficient area for auto and truck
turning movements, and inadequate traffic control systems.
iii) Adverse Traffic Conditions and Accidents: Adverse traffic conditions within
the area are exacerbated by inadequate provision for off-street truck loading,
irregular street widths, a lack of turning space for large trucks, fast moving traffic,
and inadequate traffic control systems. Such conditions contribute, to one degree
or another, to traffic accidents in the area.
v) Factors Inhibiting Proper Land Utilization and development: The lack of
direct access to public streets, substandard parcelization, the location of the
percolation ponds, the presence of hazardous wastes, and inadequate public
improvements are adverse conditions that inhibit proper land utilization and
development in the area.
vi) Incompatible Uses: Remaining residential uses are incompatible to the present
and future service and industrial character of the area. These uses conflict also
with the city's general plan and zoning ordinance.
vii) Code Compliance Problems: Code compliance problems identified during
City of Campbell Redevelopment Agency
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Part I - Implementation Plan
recent field surveys include deteriorated structures, non-conforming construction,
improper storage of combustible and hazardous materials, illegal outside storage,
and non-conforming uses.
2. HOW GOALS. OBJECTIVES. PROGRAMS AND EXPENDITURES WILL
ELIMINATE BLIGHT
A. Downtown Area
Great strides have been made in the Downtown Area over the last five years and all
signs show that the Downtown will continue to revitalize in good economic times.
However, redevelopment is a process and the Downtown Area still experiences a
number of blighting conditions that challenge the area from being self-sufficient and
economically viable. These include unattractive and substandard buildings, low rents
which encourages marginal businesses, dis-interested property owners, nonconforming
uses, a vacant lot, underutilized properties, and the lack of significant viable retail and
restaurant businesses.
The goals, objectives and programs outlined in Sections II & ill are intended to enhance
the economic viability of the area. Described in more detail below are how the specific
programs will eliminate blight in the area and make the downtown economically viable.
i) Prol!ram: Identifv key vacant. underdeveloped and blil!hted properties in
the downtown and facilitate redevelopment of those properties consistent
with the Downtown Development Plan. There still exists vacant property,
underdeveloped property and properties with deteriorated buildings that exist
downtown and detract from the efforts for revitalization. The redevelopment of
these properties into viable retaiVcommerciaVmixed uses, maximizing land use
consistent with the goals and objectives of the Redevelopment Plan will
significantly further goals to eliminate blight.
iii) Prol!ram: Plan for and facilitate the development of a downtown Vasona
Lil!ht Rail Station. A major component to commercial viability in the downtown
is facilitating access. The Vasona Light Rail is one spoke in the wheel of a public
transit system that will make it easy and convenient for people to traverse the
county. A downtown station supports retail and entertainment uses proposed as a
part of revitalization efforts. Opportunities should be examined that encourage
development in and around the downtown light rail station.
City of Campbell Redevelopment Agency
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Part I - Implementation Plan
iv) Pro2ram: Marketin2 Efforts. Getting the right type of businesses that will
attract people to the area is key. Marketing efforts to attract retail and restaurant
uses to the area will assist in this objective and increase the economic viability of
the area.
B. North of Campbell Area (NOCA)
NOCA is the industrial area north of the downtown that is characterized by substandard
and deteriorated buildings and public improvements, and incompatible and non-
conforming industrial uses. The goals, objectives, and programs outlined above for
NOCA are intended to eliminate these conditions by redeveloping the area with
residential, commercial, and office type uses which will be compatible with the
downtown and create an attractive entrance from the north.
i) Pro2ram: Facilitate the redevelopment of Harrison Avenue into residential.
The Agency has entered into a Disposition and Development Agreement with
SUll1IDerhill Homes to redevelop the industrial properties along the east side of
Harrison Avenue south of Salmar Avenue with residential. This will be a
significant step forward in eliminating blighting conditions through the removal of
dilapidated buildings with new construction and the replacement of infrastructure.
ii) Pro2ram: Additional Redevelopment Opportunities. Much of NOCA is
occupied with non-conforming industrial buildings, some of which are in a
substandard and deteriorated condition. These uses and buildings are detrimental
to the downtown area and present a poor entrance to it. This program will
evaluate redeveloping some of these properties with residential, commercial,
and/or office uses. In addition, this will be an opportunity to upgrade the
substandard infrastructure in the area and make traffic improvements.
C. South of Campbell Avenue (SOCA)
The SOCA area is located south of the downtown and is characterized by a substantial
number of non-conforming industrial buildings, many of which are in poor condition.
The area has been rezoned primarily for residential use, which would be compatible
with the adjacent downtown area and provide potential customers in close proximity.
The goals, objectives, and programs are intended to redevelop the non-conforming
industrial uses with high quality residential development which would complement the
downtown.
i) Pro2ram: Redevelopment Opportunities. The Agency will explore facilitating
the redevelopment of blighted industrial properties, specifically adjacent to newly
renovated Campbell Park with residential and mixed use opportunities. These
areas contain nonconforming industrial buildings and blighted properties adjacent
to the park and the Los Gatos Creek Trail that detract from the recreational
environment by abutting storage yards, barbed wire and dilapidated buildings.
City of Campbell Redevelopment Agency
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Part I - Implementation Plan
D. McGlincv Lane Area
The 10 I-acre McGlincy Lane area is a fully developed light industrial area. It was
brought into the redevelopment project area in 1992 in order to address a host of
adverse conditions in the area including dilapidated buildings, substandard
infrastructure, and a number of factors inhibiting proper land utilization and
development. The goals, objectives, and programs are intended to address the above
problems and upgrade the area.
i) Pro!!ram: McGlincv Lane Area Infrastructure improvements. The poor
condition of the McGlincy Lane area infrastructure is a blight on the area. It is
substandard in many respects and inhibits proper utilization of properties in the
area. The improvement of storm drain, curb and gutter, and pavement quality is
necessary to improve the function of the area and appearance while enhancing
property values.
E. Hamilton Avenue at Creekside Way
Several years ago, a major office development redeveloped much of this area.
However, a 4.8 acre parcel adjacent to the freeway has sat vacant. In 2000, entitlements
were granted for a 210 room hotel and 160,000 square foot office building. It is
anticipated that the hotel will be constructed in 2005. The office development will
likely be deferred due to market conditions.
i) Pro!!ram: Development of Parcel at 900 E. Hamilton Ave. The Agency would
like to facilitate the development of this parcel and help make it economically
viable for such development. This would make use of a major underutilized piece
of property in the redevelopment area. Discussions with the property owner are on
going involving a hotel and office complex.
F. Winchester Avenue Area
i) Pro!!ram: Campbell ShoDDin!! Center: This shopping center is failing
economically and physically with multiple ownerships, poor design, physical
deterioration of buildings and disjointed uses. The physical and economic blight
have adversely affected the Winchester Boulevard area. The goal to develop a
mixed use product on the property by bringing new commercial buildings onto the
street will improve dramatically the street view and function of the property.
City of Campbell Redevelopment Agency
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Part I - Implementation Plan
G. Low and Moderate Income Housine: Fund Activities
Low and moderate income housing fund activities will provide for the construction of
new low and moderate income housing as well as for the rehabilitation of existing units.
A more detailed analysis is provided in the Affordable Housing Production Plan.
H. Financial
The financial activities will allow the Agency to carry out many of the programs
described above, and thereby eliminate blight.
i) Proe:rams: As Listed Above. The use of tax increment and bond proceeds will
provide the funding for many of the programs described above, thus eliminating
blight as previously described.
V. AFFORDABLE HOUSING ACTIVITIES
AB 1290 requires that an agency detail its affordable housing program. In satisfaction of that
requirement, this section contains the following elements:
· An explanation of how the goals, objectives, programs, and estimated expenditures will
implement the low and moderate income housing set-aside and housing production
requirements set forth in Health and Safety Code Section 33334.2, 33334.4, 33334.6
and 33413. That explanation must contain a housing program for each of the five years
of the implementation plan in enough detail to measure performance.
· The number of housing units to be rehabilitated, price-restricted, assisted or destroyed.
. Plans for using annual deposits to the Housing Fund.
· If a planned project will result in destruction of existing affordable housing, an
identification of proposed locations for the replacement housing, the agency will be
required to produce pursuant to Health and Safety Code Section 33413.
The above referenced elements will be addressed below.
1. How Goals. Obiectives. Proe:rams. Expenditures will Implement Low and Moderate
Housine: ReQuirements:
In Sunmlary, Sections 33334.2, 33334.4, 33334.6 and 33413 of the Health and Safety Code
apply to the City of Campbell Redevelopment Agency in that they require: 1) 20 percent
of all tax increment collected must be expended for the purposes of increasing, improving,
and preserving the community's supply of low and moderate-income housing; and, 2)
whenever low and moderate housing units are removed as part of a redevelopment project,
the Agency must replace these units within 4 years.
City of Campbell Redevelopment Agency
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Part I - Implementation Plan
The goals, objectives, programs, and expenditures for low and moderate income housing
fund activities are outlined in Sections II & ill of this AB 1290 Implementation Plan and
are also indicated below.
These programs will produce new affordable housing units within the Redevelopment
Project Area and create decent, safe and sanitary housing units for low and moderate
income persons. Additionally, the Agency will pursue opportunities to work with non-
profits on the acquisition and rehabilitation of existing units similar to the Sharmon Palms
and San Tomas Apartment projects. All such units will be price restricted for the longest
possible period, however, in no case less than the period of the land use restrictions of the
Redevelopment Plan or the minimum periods required for use of Housing Fund moneys, as
applicable. Estimated expenditures for the programs from the Agency's 20% Housing Fund
are indicated. In addition, Table II provides a detailed breakdown of the projected use of
the Agency's 20% Housing Funds for the next five years.
The affordable housing programs and expenditures will implement the requirements of the
Health and Safety Code and provide low and moderate income housing units while, at the
same time, eliminating blighted properties. The estimated number of affordable units that
will be constructed, rehabilitated and price restricted over the five year period of this Plan is
indicated in the table below. This table also includes the projected year in which these
units will be ready for occupancy.
Proiect - Affordable Units
Estimated #
of Units
Estimated
Year Comoleted
Downtown Mixed use Project
Water Tower Regis Home Development
Campbell Avenue Charities Housing Project
Gilman Avenue Project
3
3
45
3
2005
2005
2006
2006
Total
54
The Agency doesn't anticipate the removal of any residential units in the project area.
2. Low and Moderate Income Housim! Fund Activities
A. Goal:
i) To facilitate the provision of decent, safe, and sanitary housing for low and moderate
income individuals and families.
B. Objectives:
i) Execute a Purchase Agreement with Santa Clara Valley Water District for 555 W.
Campbell A venue and a Disposition and Development Agreement with Charities Housing
for a 45 unit affordable housing development.
City of Campbell Redevelopment Agency
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Part I - Implementation Plan
ii) Work with non-profit housing developers on identifying opportunities for housing
projects for low and moderate income individuals and families.
iii) Explore land acquisition for low and moderate income housing redevelopment
opportunities in the SOCA area, particularly adjacent to Campbell Park and the Los
Gatos Creek area, and within the quarter mile of the Downtown Vasona Light Rail
Station.
iv) Continue the First Time Homebuyer Program helping persons to afford
homeownership in Campbell.
v) Continue to implement a rental assistance program with Catholic Charities of Santa
Clara County.
3. Specific Pro!!rams. Expenditures and Timin!!:
A. 555 W. Campbell Avenue: Partnering with the Water District and Charities Housing
to create 45 low and moderate income units at the northeast comer of Campbell A venue
and San Tomas Expressway.
Expenditure: $3,000,000
Source of Funds: Housing Set-Aside Funds
Timin!!: 2005/06
B. First Time Homebuver Pro!!ram: This program provides opportunities to low and
moderate income families to realize homeownership in Campbell that otherwise may
not be available. The Agency strives to help five to seven families a year.
Expenditures: $150,000 annually for five years.
Timin!!: On-going
C. Continue the Rental Assistance Pro!!ram: In accordance with Redevelopment Law,
an agency may provide renter move-in assistance and one-time rental assistance for
low income eligible persons seeking to obtain or remain in affordable housing. These
funds are often needed as the amount required to move into an apartment may exceed
the funds available to a low income person or because of an unexpected financial
setback which may put the person at risk of homelessness if they cannot pay the rent.
The City receives a number of calls for such assistance from low income persons each
year, consequently, there is a need in the community for such a program. The Agency
contracts with Catholic Charities for this service.
Expenditure: $10,000 annually for five years from the 20% Housing Fund.
Timin!!: Ongoing.
City of Campbell Redevelopment Agency
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Part I - Implementation Plan
PART 2
AB 315 REQUIREMENTS -
AFFORDABLE HOUSING PRODUCTION PLAN
EXECUTIVE SUMMARY
Under California Community Redevelopment Law, 15% of all the housing units constructed or
substantially rehabilitated within a Redevelopment Project Area (the "Project Area") must be
made affordable to low and moderate income persons. Ofthe 15% requirement, at least 6% must
be for very low income persons (up to 50% of county median income) with the balance for
moderate income persons (up to 120% of county median income). This requirement must be met
every 10 years, and a Redevelopment Agency must adopt an Affordable Housing Production Plan
every ten years which indicates how the requirement will be met for the next decade and how it
will be met over the life of the Redevelopment Plan.
The following document constitutes the City of Campbell Redevelopment Agency's Affordable
Housing Production Plan (the "Production Plan") as required by law. This Plan was originally
adopted in 1994 and amended in 1999. The Production Plan provides analysis of units that have
been previously constructed within the Project Area, those currently under construction, those
projects contemplated in the next five years and those housing projects anticipated over the life
of the Redevelopment Plan. From this analysis, it has been determined how many affordable
units will be required and a strategy for producing them has been developed.
The Housing Element was most recently adopted in 2001 and has been ce11ified by the State.
Since inception, a total of 682 housing units have been created within the Project Area between
1983 and 2004 (see Table 3) That includes 24 units currently under construction in the downtown
area (Water Tower Project). The City's Housing Element has established a goal of 480 units to
be constructed between 2005 and 2027 when the Project Area sunsets. If constructed, that would
bring the total number of residential units within the Project Area to 1,162.
Based on a total of 1162 units and applying the 15% formula, a total of 175 affordable units
(1,162 x 15% = 175) must be provided, of which 70 (1,162 x 6% = 70) must be affordable to
very low income persons. The Agency has helped create a total of 243 affordable units of which
86 are located in the Project Area and 211 are located outside the Project Area. Under AB1290,
the Agency is allowed full credit for affordable units created in the Project Area and half credit
for units created outside the Project Area toward its goal of providing affordable housing. For
example, the San Tomas Garden Apartments, outside the Project Area, actually contains 98
City of Campbell Redevelopment Agency
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Part 2 -Affordable Housing Production Plan
affordable units assisted by the Redevelopment Agency. However, the Agency may only take
credit for 48 affordable units.
Using this methodology, the Agency has credit for 191 affordable units of which 160 serve very
low income persons. To date, the Agency has satisfied 187% of its requirement for total
affordable housing units and 390%% of its requirement to provide very low income dwelling
units through 2004.
I. INTRODUCTION
Under California Community Redevelopment Law, Project Areas adopted after 1976 (Campbell's
was adopted in 1983) must meet two affordable housing production requirements. The first
requirement, set forth in Health and Safety Code Section 33413 (b) (1), is sometimes referred to
as the "Agency-Developed Housing Production Requirement." This requirement mandates that
at least 30% of all new and substantially rehabilitated dwelling units developed directly by the
City of Campbell Redevelopment Agency ( the "Agency") anywhere in the community must be
made affordable to low and moderate income households (up to 120% of county median income
adjusted for household size). Of this total, one-half of the Agency-developed units must be made
affordable to very low income households (up to 50% of county median income adjusted for
household size).
The Agency itself has not developed any new or substantially rehabilitated units throughout the
community in the past, nor does it expect to develop units itself in the coming decade or over the
remaining life of the Redevelopment Plan. Instead, the Agency expects to rely on the private
sector or non-profits, with Agency assistance as appropriate, to generate the necessary affordable
housing units within the community and the Project Area. Consequently, the Agency does not
have an Agency-Developed Housing Production Requirement for the coming decade or over the
remaining life of the Redevelopment Plan, and the balance of this Production Plan will focus
exclusively on the Agency's program to satisfy its Project Area housing production requirement
described as follows.
The Agency's second affordable housing production requirement, as set forth in Health and
Safety Code Section 33413 (b) (2), requires that 15% of all housing constmcted or substantially
rehabilitated within the Project Area must be made affordable to low and moderate income
persons. Of the 15% requirement, at least 6% must be for very low income persons with the
balance for moderate income persons. This requirement applies to all housing units constructed
or substantially rehabilitated in the Project Area, even if the Agency was not involved in the
project. However, it applies in the aggregate, and not specifically to each individual project.
That is, there could be some housing developments in the Project Area which have no affordable
housing and others with higher than 15%.
As an example, if 100 units were constructed or substantially rehabilitated in the Project Area
over the life of the redevelopment plan, 15 of these units would have to be restricted for low and
moderate income persons, with at least 6 of the 15 units restricted for very low income persons.
City of Campbell Redevelopment Agency
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Part 2 -Affordable Housing Production Plan
Such units would have to have covenants which maintain their affordability for the life of the
redevelopment plan in order to meet the Agency's obligation.
However, under the previous redevelopment law, the only time limit for meeting the affordable
housing requirement was over the 30 or 40 year life of the redevelopment plan. Consequently,
many Agencies were not concerned with the requirements in the early years of their
redevelopment programs, assuming that at some point later on the requirement would be met.
Therefore, many housing developments were constructed in Project Areas with no affordable
housing.
In 1991, AB 315 was approved which significantly changed the law. This legislation requires
redevelopment agencies to meet their Project Area affordable housing production requirements
every 10 years and adopt an Affordable Housing Production Plan (the "Production Plan")
indicating how the requirements will be met. In addition, the Production Plan must be reviewed,
and if necessary, amended at least every five years in conjunction with the City's General Plan
Housing Element.
The key elements of the Production Plan for the City of Campbell Redevelopment Agency
include:
I. An analysis of the Agency's affordable housing obligation to date. This requires a
review of all housing developments and substantial rehabilitation of units that have
taken place within the Project Area since it was created in 1983. As part of the
Production Plan, the Agency will indicate how to provide the 15% affordable housing
requirement for units previously constructed but containing no affordable units.
2. An estimate of the number of residential units expected to be constructed,
substantially rehabilitated, or price restricted within the ten year period and over the
life of the Redevelopment Plan.
3. A description of the programs and projects that will provide the percentage of
affordable units necessary to meet the Agency's affordable housing production
requirements.
4. A description of the financial means by which the Agency will assist in producing the
affordable units.
5. A discussion of how the programs and projects proposed to meet the Agency's Project
Area housing production obligation are consistent with the Housing element of the
City of Campbell General Plan.
This Production Plan takes into account a compliance period beginning with the
establishment of the Project Area in 1983 and continuing through the end of the ten-year
period covered by the Production Plan in 2004 and over the life of the Redevelopment
Plan.
City of Campbell Redevelopment Agency
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Part 2 -Affordable Housing Production Plan
II. ANALYSIS OF EXISTING HOUSING OBLIGATION
The Central Campbell Redevelopment Plan was adopted on June 21, 1983, and the 260- acre
Central Campbell Redevelopment Project Area was created. The Redevelopment Plan was
amended on January 15, 1991 and again on June 16, 1992 when the 101-acre McGlincy Lane
area was added to the Project Area. The attached map (Exhibit A in Part I) indicates the
boundaries ofthe Central Campbell Redevelopment Project Area.
A thorough review of past entitlement approvals and building permits was completed to
determine the number of residential units constructed or planned, as well as the number of units
substantially rehabilitated within the Project Area since 1983. The review indicated that one unit
was substantially rehabilitated. This is probably a result of the Project Area containing very few
residential structures that are over 10 years in age. In addition, the few residential units that are
present are primarily on land zoned for commercial or industrial use, thus they are considered
non-conforming uses. Typically, substantial modifications may not be financially feasible for
such units and may be restricted under the City's zoning ordinance.
The review did indicate the following privately developed residential projects that have either
been constructed or are currently under construction:
UNITS COMPLETED OR UNDER CONSTRUCTION SINCE 1983
CENTRAL CAMPBELL REDEVELOPMENT PROJECT AREA
Proiect
Total # of Units
Heritage Village
Orchard Oak Townhomes (Page St.)
Canyon Creek Apartments
Orchard Grove
Downtown Gateway Project
Water Tower Project
Heritage Townhouses
Downtown Mixed Use Project
Harrison Avenue Project
Total
144
32
348
20
20
24
20
23
51
682
III. PROJECTION OF THE NUMBER OF UNITS TO BE PRODUCED
As part of the Production Plan, it is important to project the number of housing units that will be
constructed or substantially rehabilitated in the Project Area within the ten year cycle of this
Production Plan, and over the life of the Redevelopment Plan. The projection will form the basis
for the number of affordable units to be produced and the means by which to produce them.
The best information available comes from the City's General Plan last updated in 2003. In 2001,
a complete revision of the City's General Plan Housing Element was completed. As part of the
revision, a thorough inventory was completed of all housing sites within the City with estimates
City of Campbell Redevelopment Agency
27
Part 2 -Affordable Housing Production Plan
of the potential number of housing units that could be constructed. This inventory was also done
for residentially zoned sites within the Project Area. The Housing Element indicates that
between 1999 and 2006, that approximately 186 new housing units could be provided in the
Project Area and that approximately 400 new units could be built throughout the life of the
Redevelopment Plan (set to expire in 2027).
The greatest potential for new housing in the Project Area is in the South of Campbell Avenue
Area (SOCA), particularly within a quarter mile of the downtown Vasona Light Rail Station, and
limited opportunities in the North of Campbell Avenue Area (NOCA).
Both of these are older industrial areas which are primarily fully developed with older industrial
buildings on small parcels were designated in 1991 from "Industrial" to a mixed use designation
that allows residential and commercial. Therefore, in almost all cases, industrial buildings must
be removed and sites assembled to allow for new housing to be constructed. Generally,
Redevelopment Agency financial and, possibly acquisition assistance, may be required in order
for any new housing to be constructed in these areas.
The Agency expects that new housing development within the Project Area, beyond those listed
above, will be limited. This is due to the lack of large vacant properties available and the fact the
City is not developing at the highest densities given the high density population of the City
already. The Agency is working with the Santa Clara Valley Water District to develop 45
affordable units of which 30% are targeted to low and very low income persons. Also
anticipated is a mixed use project downtown that will provide 22 units and a 24 unit
condominium development within the Water Tower Plaza.
Based on the General Plan Housing Element estimate of 400 new housing units over the life of
the Redevelopment Plan, a total of 60 to 80 units could be constructed over the next five years
leaving 320 units required to be constructed between 2009 and 2027 when the Redevelopment
Plan terminates. That would be an average of 18 units per year. Most of these units would be
constructed on smaller sites in the NOCA and SOCA areas, and on the Campbell Shopping
Center site where there is potential for a mixed use development.
IV. ANALYSIS OF AFFORDABLE HOUSING OBLIGATION
The affordable housing obligation of the Agency must be estimated for 1) the next 5 years
through 2009, and; 2) beyond 2009 through the end of the Redevelopment Plan in 2027. The
analysis for each is indicated below:
Ten Year Obligation: To sun1marize, a total of 682 housing units have been constructed or are
currently under construction within the Project Area. Approximately 186 units are anticipated to
be constructed within the next ten years. Therefore, a total of 868 units will have been produced
by the end of 2014. Applying the 15% affordability requirement to these units, a total of 130
affordable units (868 x 15% = 130) must be produced, of which 52 (868 x 6% = 52) must be
affordable to very low income persons. As explained earlier in this report the Agency has
already created enough affordable units to satisfy its affordable housing obligation over the next
City of Campbell Redevelopment Agency
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Part 2 -Affordable Housing Production Plan
ten years assunling the housing production numbers provided.
Obligation Beyond the Ten Year Period: As indicated above, based on the City's Housing
Element, a total build-out of the City would produce a total of 1,600 new dwelling units. Based
on the land use survey conducted by the Community Development Department of the City,
approximately 480 of those units would be built within the Redevelopment Project Area.
Assuming 186 of those units were to be built in the next ten years, it is projected that an
additional 294 units would be built within the Project Area beyond the ten year planning period
and before the end of the Redevelopment Plan (between the year 2005 and the year 2027).
That would bring the total number of dwelling units created within the Redevelopment Project
Area to 1,162 dwelling units. Applying the 15% affordability requirements to these units, a total
of 175 affordable units (1,162 x 15% = 175) must be produced, of which 70 units (1,162 x 6% =
70) must be affordable to very low income persons. As stated previously, to date, the Agency has
credit for 191 affordable units of which 160 are affordable to very low income persons. As a
result, the Agency has satisfied 109% of its legal obligation for affordable units and 229% of its
legal obligation to provide very low income dwelling units for the life of the Redevelopment
Proj ect Area.
v. PROGRAMS FOR MEETING AFFORDABLE HOUSING PRODUCTION
The requirements which restrict 15% of the units developed in the Project Area to affordable
standards, apply in the aggregate, and not to each individual case of rehabilitation or construction
of units (Health and Safety Code Sections 33413(b.) (3.) and (c.). Therefore, the Agency is not
required to place affordability covenants on each of the residential projects proposed in the
Project Area, but may satisfy the affordable housing obligation by producing a number of
affordable units that is equal to 15% of the total developed or substantially rehabilitated within
the Project Area.
Redevelopment Law also states that the restrictive covenants must remain in place for the longest
feasible time but for not less than 45 years.
Ten Year Obligation: As stated previously in this report, the Agency has satisfied its affordable
housing production requirements for this ten year period between 1994 and 2004 having credit
for creating 191 affordable units of which 160 are very low income units serving persons earning
50% or less of the median income in Santa Clara County. All the units, with the exception of
eight moderate income units under the Agency's First Time Homebuyer Program have
affordability covenants that require the units to remain affordable through the life of the
Redevelopment Plan. The First Time Homebuyer Program allows the Agency to place resale
restrictions on the units so that the Agency has the opportunity to maintain the affordability ofthe
units upon resale. However, the law does not allow the Agency to restrict the resale of a home if
the Agency is unwilling or unable to subsidize or purchase the home upon resale. So long as the
homes under this program remain affordable to low and moderate income persons, the Agency
may receive credit as an affordable unit.
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The Agency has estimated expenditures from the 20% Housing Fund of over $5 million over the
next five years to make the affordable units financially feasible. Therefore, the Agency has a
reasonable program in place to continue to provide affordable housing units in the Project Area.
Although the Agency will be able to meet its affordable housing obligation, the Agency may still
require affordable units within new housing projects. In 1990, the Agency adopted an affordable
housing policy requiring that new housing developed in the Project Area provide its 15 percent
share of affordable housing or pay in-lieu fees as approved by the Agency. Therefore, by having
met the requirement for the 10 year period, the Agency will have greater flexibility in
determining the type of affordable units and the projects to which they may be required.
However, as indicated in Section V of Part I, the Agency plans on adding additional affordable
housing units, thereby exceeding its affordable housing production requirements in all cases.
Obligation Beyond the Ten Year Period: As indicated above, it is estimated that 480 units will
need to be constructed in the Project Area between the year 2005 and 2027. Of these units, 72
must be made affordable to low and moderate income individuals. It is clear that the Agency's
long term obligation to expend 20% Housing Funds as required under RDA law will be the
greater challenge then the creation of the required number of affordable housing units. The
opportunities for housing in the Project Area continue to be in the NOCA and SOCA areas where
older industrial properties would need to be phased out. This kind of redevelopment is costly
given land values, potential toxic clean-up, relocation expenses and small lots sizes that require
land assembly.
VI. HOUSING ELEMENT CONSISTENCY
As indicated in Section ill, the City's General Plan Housing Element was revised in 2001. The
Housing Element was certified by the State of California and estimates that an additional 480
housing units could be provided in the Project Area over the remaining life of the
Redevelopment Plan. Based on the information in this Housing Production Plan, it is concluded
that the Production Plan is consistent with the Housing Element ofthe General Plan. As required,
it will be updated in conjunction with the required updates of the Housing Element.
The Housing Element is required to be amended in 2006. At that time, ABAG projections and
the City's General Plan update may result in a change in the projected number of units estimated
in the Project Area. As a result, the Agency's Housing Production Plan may need to be amended
as well.
The Production Plan also serves to implement portions of the Housing Element. More
specifically, the Housing Element is to encourage housing units affordable to a variety of
household incomes. The Housing Element speaks to the Agency's 15% affordability requirement
and the use of 20% set aside funds to provide affordable housing. Therefore, the Production Plan
is consistent with and serves to implement the policy and carry out the implementation programs
indicated in the Housing Element.
VII. ON-GOING MONITORING OF CONSTRUCTION
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AND REHABILITATION
An important element for the Agency will be the on going monitoring of construction and
substantial rehabilitation within the Project Area. This will be necessary to keep track of the new
housing units produced or substantially rehabilitated and compare this to the number of units
estimated, thus determining the number of affordable units required.
The on-going monitoring is a relatively simple procedure for the Agency. This is a result of the
small size of the Project Area (361 acres); the limited amount of residentially zoned land; the
small number of existing older structures that might need rehabilitation, and; the limited amount
of new development taking place. Under current procedures, the Agency is forwarded for review,
at the preliminary planning stages, any new or substantial renovation project within the Project
Area. The procedures require that the Agency sign off on all building permits for such project.
Therefore, the Agency can easily monitor any new housing construction or substantial
rehabilitation in the Project Area.
VIII. FINANCIAL REQUIREMENTS OF THE AGENCY
Financial assistance from a redevelopment agency is typically required to produce affordable
housing. The Campbell Redevelopment Agency has committed over $5 million over the next
five years toward creating affordable housing. Most of this budget is anticipated to be applied
toward land acquisition and relocation costs for new units and rehabilitation of existing units. To
some degree, the Agency depends on opportunities and market conditions to implement such
projects. The Agency's current financial position should enable the Agency to act reasonably
when opportunities present themselves.
J:implerne
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Part 2 -Affordable Housing Production Plan