11/15/1994 - RDA AB 1290 - Implementation Plan AB - 315THE CITY OF CAMPBELL
REDEVELOPMENT AGENCY
AB 1290 IMPLEMENTATION PLAN
AND AB 315
AFFORDABLE HOUSING
PRODUCTION PLAN
FOR THE CENTRAL CAMPBELL
REDEVELOPMENT PROJECT AREA
ADOPTED NOVEMBER 15, 1994
9 1
TABLE OF CONTENTS
Part 1 - AB 1290 Requirements - Implementation Plan
Page
Executive Summary
1
I.
Introduction
2
II.
Goals and. Objectives' for the Next Five Years
4
III.
Specific Programs, Potential Projects and Estimated
Expenditures for the Next Five Years
9
IV.
Explanation of How the Goals, Objectives, Programs
and Expenditures Will Eliminate Blight
21
V.
Affordable Housing Activities
29
Part 2 - AB 315 Requirements.- Affordable Housing Production
Plan
Executive Summary
34
I.
Introduction
35
II.
Analysis of Existing. Housing Obligation
37
III.
Projection of the Number of Units to be Produced
38
IV.
Analysis of Affordable Housing Obligation
39
V,
Programs For Meeting Affordable Housing Production
40
VI.
Housing Element Consistency
43
VII.
On -Going Monitoring of Construction and Rehabilitation
44
VIII.
Financial Requirements of the Agency
44
9
AB 1290 REQUEREMENTS . - EWFLEMENTATION PLAN
EXECUTIVE SUMMARY
In 1993, the Community Redevelopment Law Reform Act (AB 1290) was signed into law. This
legislation, among other requirements, requires that redevelopment agencies produce
Implementation Plans every five years, with the first one being adopted no later than December
31, 1994. The Implementation Plan (the "Plan") must detail such things as the goals and
objectives for the agency for the next five years, specific programs and estimated expenditures
planned for the next five years, an explanation of how blight will be- eliminated by these
programs, and a program for use of the agency's low and moderate housing funds. In addition,
an agency's AB 315 Affordable Housing Production Plan must be included (as is provided in Part
2 of this document). In summary, the Plan sets the direction the agency will take over the next
five years. It shall serve as a useful document for the public in terms of understanding the
programs an agency intends to pursue and the proposed expenditures.
The Central Campbell Redevelopment Project Area (the "Project Area") has been in existence for
just over ten years. During this time, ' the City of Campbell Redevelopment- Agency (the
"Agency") has undertaken a number of projects to eliminate blight and revitalize the central
Campbell area. Projects of greatest significance include the construction of the 900 E. Hamilton
Ave. project by Prometheus Development Company; providing financial assistance to allow the
purchase of the former Campbell High School property and the conversion of the property to the
Campbell Community Center; the formulation of 'the Campbell Downtown Development Plan;
the installation of significant downtown. streetscape and traffic improvements; the relocation of
the Ainsley House for use as the Campbell Historical Museum; facilitating a Local Improvement
District and the reconstruction of streets in the Railway Ave./Gilman/Dillon area; the addition of
the McGlincey Lane Area to the Project Area; the purchase of the Winchester Drive -In Site by
the Agency; rehabilitation of affordable housing units in the Slarmon Palms neighborhood; and,
facilitating the locating of Home. Depot. and Fry's Electronics in the Project Area.
The Implementation Plan for the next five years charts a course for continuing the revitalization
and economic 'development efforts that have been successfully established over the previous
decade. For, example, in the downtown area; the Plan calls for efforts to renovate buildings and
facilitate redevelopment of properties so .as to bring new, viable businesses into the area, as well
as providing for. additional parking.
City of Campbell Redevelopment Agency Part 1 - Implementation Plan
In the area north of the downtown (NOCA), and south of downtown (SOCA), the Plan calls for
the gradual redevelopment of blighted industrial properties with housing and commercial uses.
In the McGlincey Lane area, the development of the Winchester Drive -In site and the upgrading
of streets and other infrastructure is planned.
Economic development activities will be strengthened throughout the Project Area and the City
with a more active business. retention and recruitment effort. Affordable housing programs will
be expanded with the planned construction of low and moderate income housing in the NOCA
and SOCA areas and the rehabilitation of affordable housing units both inside and outside the
Project Area. Finally, the Agency will carefully monitor its finances and consider issuing new
bonds to finance many of the planned programs.
In summary, the activities of.the Campbell Redevelopment Agency over the next five years will
continue the process to carry out the goals of the Redevelopment Plan by eliminating blight
throughout the Project Area, revitalizing the downtown and surrounding areas, and providing
decent and safe housing for. low and moderate income individuals. The Plan will be reviewed
between, two and three years after adoption to monitor progress and be totally updated after five
years.
I. INTRODUCTION
On October 6, 1993, Governor Wilson signed into law AB 1290, the Community
Redevelopment Law Reform Act of.1993. AB 1290 was authored by Assembly Member
Phil Isenberg and was sponsored by the California Redevelopment Association. The
purpose, of the legislation was to .address perceived major abuses and problems in
redevelopment practice in a responsible, constructive manner and to refocus the
redevelopment process on statewide concerns of alleviating blight, stimulating economic
development, and providing affordable housing. The provisions of AB 1290 are
numerous and touch almost every major area of Community Redevelopment Law.
One of the major provisions of AB 1290 is that redevelopment agencies must produce
Implementation Plans every five years. The first Plan must be adopted by December 31,
1994, and the Plans must be- reviewed between two and three years after adoption. The
implementation plan must contain the following information:
Specific goals and objectives for the next five years.
Specific programs, including potential projects and estimated expenditures planned
for the next five years.
An explanation of how the goals, objectives, programs, and expenditures will
eliminate blight..
City.of Campbell Redevelopment Agency Part 1 - Implementation Plan
2
• An explanation of how the goals, objectives, programs, and' expenditures will
implement the low and moderate income housingset-aside and housing production
requirements set forth by redevelopment law, including specified information about
deposits to and use of the Agency's Low and Moderate Income Housing Fund (the
"Housing. Fund"), and specified information about the Agency's Project Area
housing production obligations.
The following Plan is intended to meet the requirements of AB 1290. Xis divided into
two parts. Part 1 is called the "AB 1290 Requirements - Implementation Plan" and covers
all the items 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 first mandated
by the AB 315 legislation adopted in 1991. In summary, the Implementation Plan sets
out a clear course for the Campbell Redevelopment Agency over the next five years and
indicates how the Agency will be meeting the requirements of the Community
Redevelopment Law.
The five-year planning period specifically covered by this Plan is the period from July 1,
1994 through June 30, 1999, encompassing fiscal years 1994-95 through 1998-99 of the
Agency. In addition, information for later years is provided in various elements of this
Plan where such information is available or required. The affordable housing production
plan contained in Part 2 covers a ten-year period through the year 2004 and a second
period from the year 2004 tothe year 2027.
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 Part 1 - Implementation Plan
3
IL 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 listed in the Central Campbell Redevelopment
Plan, Downtown Development, Plan, and policies and direction of the Redevelopment
Agency Board.
Listed 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.
Downtown Area
Description: The downtown area is located along E. Campbell Ave. bound by Civic
Center and Orchard City Drives, and adjacent areas to the east and west along E.
Campbell Ave. This is the historic downtown area that functioned for years as the heart
of the city. Many historic buildings remain in the area. Over the last 20 years, the area
has deteriorated physically as well as lost its 'economic viability. 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 to provide a
framework for downtown revitalization efforts. Since that time, a major streetscape
improvement project has been completed as well as traffic improvements in the area.
Goal:
To continue the implementation of the Downtown Development Plan resulting in further
physical and economic revitalization of the Downtown Area.
Objectives:
1. Assist with the provision of additional on and off street parking_ and improved parking
management.
2. Once a solution for the museum collection is found, evaluate. and potentially convert
- the former museum building into a commercial use.
3. Work in partnership with property owners to upgrade the appearance and
functionability of existing buildings, including facade improvements.
4. Plan for the potential Vasona_ Light Rail station in the Downtown Area.
City of Campbell Redevelopment Agency Part 1 —Implementation Plan
4
Mo
5. Facilitate the development or redevelopment of key parcels.
6. Continue marketing efforts to attract businesses to the area and support downtown
events and festivals (also under Economic Development Activities).
North of Campbell Ave. OjOCAJ
Description: NOCA is the industrial area north of the 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 area has been re -zoned to allow for residential, office, and commercial uses
that would be compatible with and complement the downtown.
In recent years, a Home Depot Store, has been constructed and a Fry's Electronics store
located in a rehabilitated building.
Goals:
To facilitate the transformation of the area from non -conforming industrial usage to
residential and commercial uses which will be compatible with and help support the
Downtown Area.
To create an attractive gateway entrance to the Downtown Area.
Objectives:
1. Facilitate a commercial development and/or residential development at the southern
end of NOCA.
2. Evaluate additional redevelopment opportunities in the area, including residential and
commercial development and affordable housing.
3. Evaluate the potential relocation of the Campbell Union School District corporation
out of the area.
4. Reevaluate the new Salmar Ave. alignment and the railroad crossing required for it
and evaluate other traffic improvements in the area.
City of Campbell Redevelopment Agency Part 1 - Implementation Plan
6
South f o Campbell Avenue (SOCA)
Description:, The SOCA area is located south of the downtown and adjacent to Los
Gatos Creek. The area is characterized by 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 customers in
close proximity. Recently, Bay Apartment Communities, Inc., began construction on a
348-unit apartment development in the area.
Goal:
To transform the non -conforming industrial uses to residential and other uses that will
complement and help support the downtown area.
Objectives'
1. Facilitate the completion of the Creekside Apartment Complex at 500 Railway Ave.
2. Evaluate other opportunities- to redevelop non -conforming industrial uses, including
the assemblage of property to facilitate the development of housing, including
affordable housing opportunities and commercial development.
3. Evaluate the potential relocation of the City corporation yard..
McGlincey Lane Area
Description: The McGlincey Lane area is, a fully developed light industrial area located
east of Highway 17 centered along McGlincey 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.
Goal:
To promote the physical and economic revitalization of the McGlincey Lane Area.
Obiectives•
1. Facilitate the development of the former Winchester_ Drive -In site and evaluate
providing open space as part of process.
2. Upgrade infrastructure and properties within the area..
City of Campbell Redevelopment Agency Part 1 - Implementation Ian
7
" 3. Evaluate the potential for convertmg Cnsch Lane to a public street.
Hamilton Ave.' at Creekside Way
Description: This area is located at Highway 17 and Hamilton Ave. Several years ago,
.a major office development redeveloped much of this area. However, a parcel adjacent
to the freeway has sat vacant.
Goal:
To evaluate development opportunities in the area.
Objectives:
1.. Facilitate the development of the vacant parcel at 900 E. Hamilton Ave.
Economic Development Activities
Description: Attracting and retaining key businesses is important to the success of the
Project Area, as well as to the city as a whole. The Agency believes it is "important to
increase efforts in the .economic development area.
Goal:.
To undertake more aggressive economic development activities.
5 Objectives:
I 1. Develop an economic development strategy and implementation program.
2. Continue with downtown"marketing activities.
Low and Moderate Income Housing Fund Activities
Description Redevelopment agencies are. required .to spend 20% of theirgross tax
increment funds on affordable housing activities.
Goal:
To facilitate the provision of decent, safe and sanitary housing for low and moderate
income individuals and families.
City of Campbell Redevelopment: Agency Part I Implementation Plan
.8
Objectives .
1. Evaluate residential development for the southern end of NOCA, including affordable
housing.
2. Work with non-profit housing developers on housing rehabilitation projects for low
and moderate income individuals.
3. Explore additional low and moderate housing redevelopment opportunities in NOCA
and SOCA:
4. Complete the Creekside Apartment project. and San Tomas Gardens project.
5. Develop and implement a rental assistance program.
Financial
Description: The .financial actions of .the Agency will enable it to carry out the goals,
objectives, and programs described in this implementation plan.
Goal:
To maximize the financial ability of the Agency to implement projects.
9
Objectives:
1. Evaluate the feasibility of the issuance of bonds as tax increment revenues grow.
2. Repay City for loan for the purchase of the Winchester Drive -In Site from land sale
or lease revenues.
3. Continue debt service payments on the Community .Center COP's.
4. Monitor assessed valuation trends, tax increment payments. from the county, and tax
sharing payments.
M. 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.
City of Campbell Redevelopment Agency Part 1 Implementation Plan
9
Listed below are the programs planned by the 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.
Attached Table I and Table II indicate the complete. Agency projected budget for the next
five years for each 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. As can be seen in Table I, it is projected that the
Agency will have limited funds. for new projects in the next two years. However, once
the Creekside Apartment Development at 500 Railway Ave. is fully placed on the tax
rolls, and tax sharing with the County of Santa Clara is significantly reduced, the Agency
will have increased revenues with the potential to issue bonds. The tables project issuing
bonds in the 1997/98 fiscal year, and therefore, most major expenditures would take place
thereafter.
Downtown Area
1. Provide additional on and off street oarkinp—and improved narking management:
A. Additional Loop Street Parking: Construct additional parking on the loop streets
(Civic Center and Orchard City Drives). Parking can be, provided within the existing
right -of way at a reasonable cost. Restriping will be required as well as sidewalk
construction in certain areas. Approximately 50 parking spaces may be added in this
phase. Additional spaces may be added in the future on the loop streets and
potentially on other side streets. The Bay Apartment Communities, Inc. conversion
of two-way Railway Ave. will also. add 19 spaces along Orchard City Dr.
Expenditure: $140,000 for design and construction costs.
Timing: Construction of parking on Civic Center Dr. in ,1995-96 and along Orchard
City Dr. in 1996-97:
City of Campbell Redevelopment Agency. Part 1 - Implementation Plan
10
H
Fa
TABLE
• CAMPBELL REDEVELOPMENT AGENCY - 80% FUND
ADOPTED 1994/95 BUDGET AND PROJECTED 1995-2000 BUDGET
199415 1995/6 1
1999/2000 i o[ai
Revenues
Beginning Fund Balance.._..:
654,641 ::;
.:::: 532,493
375,220.168,991.2,067,377,:..
`;:.. 502,161,;
Tax Increment Revenue
1,777,671
1,922,693
2,218,570
2,263,126
2,308,817
2,445,011
12,935,888
Interest Income;
90,0� ::
90 000
90 000
, :: 90,000 .
> 90,000
9Q,000.
540,000
Rental Income, Drive -In
40,139
40,139
40,139
0
0
0
120,417
Sale P,r.Oceeds-Drive.;l�►...
0
0 ':>:
0.
: 3340,000
Q.::::.
0:
3,340,000
City Reserve Loan
0
500,000
0
0
0
500,000
;. Sales Tax. Transfer In :. ; ....
375,000
375,000
goo,000
aoo,000
400,0o0
400,660
_.
2,350,000
Bond Proceeds
0
0
0
5,000,000
0
0
5,000.000
TOTAL' :Rev enues
2,937,451..
> 3,46®,325 _
3123,929
:11,262,117 ::<
4,866,1t�!�.:
:..3,437 ig2:
25,440,946
Expenditures
Salaries and Benefits .:.: ...:
>149,523 :
155,532 :.
161 693.
, 168,291
175 001'_
82062:
992,022
Supplies and Services
122,239
128,351
134,768
141,507
148,582
156,011
831,459
Debt Seance
:..
1993 COPs/1997 Bonds
670,0010
670,000
670.000
1,150,000
1,150,000
1,150,000
5,460,000
;;CountyTax.Sharin 9 .:: > ......
226,183.:
;>..::';279,401
0...
.. 0 :.:
. Q>
842,240
City Reimbursement Pmt
400,000
400,000
400,000
400,000
400,000
400,000
2,400,000
:Drive :.ln/City Loan Pmt... ...:
;.... <167,000
192,000..:....:
,1.92,000
3;840,000...:
.. ....:: 0,::.:...:,
' .;. 0.,
4,391,000
Home Depot/Fry's Pmt
375.000
375,000
400.000
400,000
400,000
400,000
2,350.000
;Educ Fund, Payment
109,813
-109.013
109,813
: 109 813
109,813 -
109,8i3
658,878
Total Debt Service
1,947,996
2,026,214
2,1.08.469
5,899,813
2,059.813
2.059,813
16,102.118
Overhead$>Transfers ' .....
120.200
:. 125,008 .
... 130,008
::.. 135,209;'
':: 140,617
1 a6,242:
797,264
Capital Outlay
Dnve�ln Analysis/Design ..:' ::.......50
000 ::.....:
50,OOa .::...
..: `... ;.
_ _.
.. . .
100,000
Loop Street Parking
60,000
80,000
140,000
Old Museurro Conversion
290,000
200,000
Downtown Parking District
10,000
10,000
Upgrade AAcGlInc InfraSB.
... ........
:
250,000
250,000 .
250,000
_
750,000
Vasona Corridor Impvts
500,000
500,000
;.
UP9rade Downtown:Building
75 000 >'
75,000
75,000
75,000
75;000:
375,000
Develop Key Dwtwn. Parcels
250,000
250,000
500.000
Economic Development
1.5.000-'
AS,000
15,000
: 15,000
15,000
15,000:
90,000
NOCA Projects
250.000
1,000,000
500,000
1,750,000
SOCA;Pro�ects.. ....::>... ..::::.....:
: . ..
:....
1000,000 �
500,000 ;.
....
1,500,000
Cristich Ln. Improvements
250,000
250.000
500,000
Total:Ca ital Outlay
"65,000 :
650,000 .::-
. •420,000 .:
s 2,856,600 :
.:1,840,000 ''
. ..590.000.
6.415,000
TOTAL Expenditures
2,404,956
3,085.105
2.954,939
9,194.740
4.364.013
3,134,129
25,137,683
EndingFund. Balance.:...,;-.:.:
::.: 532,493 ::
375 220 : ;.:
168,991
-' 2,067 377
502.161 .;-
.': 303.063
A
H
N
TABLE II
209E HOUSING FUND
ADOPTED 1994/95 BUDGET AND PROJECTED 1995-2000 BUDGET
1994/5
1995/6
1996/7
1997/8
1998/9
1999/2000
Total
Revenues
Beginning Fund Balance . :::
, 1,235,832
::;, ' : 941896
401.999 <_
; ; 465,531
837 761 .,
.;; .... A 66,849:
Taz Increment Revenue
444,418
480:673
554.649
565,782
577,204
611,253
3,233,972
Interest Income :
40,000 ;'
: 40,000 :
' 40,000 :
_ "40 000 :.:-
40,000
40,000
240,000
Bond Proceeds
0
0
0
2,000,000
0
0
2,000.000
TOTAL. Revenues,,,:,.,:'
:1,720,250,'::,:
1,462,569
096.641:
3,071,313::
• 1,454,965..':
• •.82Q i02°..
6,709,804
Expenditures
0
Salaries and: Benefits., .: ;'.. •.
22 979
'<, :. 23 926 : _
24,823
25,866:
:; 26,962 ..
...:. .^c8,1.02::
152,659
Supplies and Services
25,375
26,644
27,976 .
29,375
30,843
32,386
172,599
Debt Service
500 Railway Ava SPA
218,311
873,244
Bonds
200,000
200,000
200,000
600,000
Total Debt Service : ; <
0
::° 0
218,311
; .
418,311.
418,311:<:;...415,311
1,473,244
Overhead & Transfers
0
Capital Outlay
San Tomas Gardens
500,000
500.000
Kennedy/Wmchester Signal
- 70,000
70,000
500 Railway Fees
160,000
160,000
:SOCA Housin 9
-
7.50,000
`... 40,0,000.......:.....:.::.:
1,150,000
Housing Rehab.
250,000
250,000
250,000
750,000
Rerttal`Assistance .. ...:.. ...
10,000
1.0,000 ::
10,000
10,000 ..':;
.. 1:O,OOi3:
50,000
NOCA Housing
750,000
750,000
400,000
1,900,000
Total Capital Outlay
730,000 `.
:1,010000 .::'`
260,000
1,760,000 .
::: 810,000
10,000
4,580,000
TOTAL Expenditures
778,354 _
1,060,570
531,110
2,233,552
1,286,117
488,799
6,378,501
Ending Fund Balance
941,896
401,999
465,531
- ..837.761
168,849 .
" :331 303
B. Parking Management: Work with business and property owners on a parking
management system. This would include encouraging employees to park away from
the most convenient on and. off street spaces and improved efficiency in existing
parking lots.
Expenditure: Staff to facilitate, with no capital costs incurred by Agency.
Timing: Develop program in 1995-96 and implement in 1996-97.
C. Parking Assessment District: Evaluate the .feasibility of forming a parking
assessment district to construct additional parking spaces. New parking may require
property acquisition and possible construction of a parking structure.
Expenditure: Staff to perform a preliminary evaluation with limited consultant
assistance - $1.0,000. If Parking District is formed, design and construction is
anticipated to be paid for by bonds sold by the Assessment District.
Timing: Begin evaluation in 1997-98
2. Evaluate Former Museum Building: Once a suitable location is determined for
the museum collection, the former museum building has the potential for becoming
a viable business and attraction for the downtown. Interest has been expressed in
using the structure as a restaurant. Staff, with consultant assistance, shall evaluate the
potential conversion of the building. If it is feasible, it is expected that the building
will require some improvements that may be funded by the Agency. However, the
building should generate lease revenues for the Agency.
The Agency would retain ownership of the property, so if at some future date the site
is needed for parking, it would still be available.
Expenditure: $15,000 for consultant and design assistance, $185,000 for conversion.
Timing: 1995-96.
3. Upgrade Downtown Buildings: Many downtown buildings need a facelift in order
to improve their appearance and leasabililty. In addition, certain buildings need
interior modifications to make them functionable for desirable restaurant and retail
uses. A loan program should be established to assist property owners with these
improvements, including facade improvements. Such improvements will be a
partnership between the Agency and the property owner where each contributes to the
improvements. Buildings will be considered on a case by case basis with criteria
established to determine eligibility.
City of Campbell Redevelopment Agency Part 1 - Implementation Plan
13
Expenditure: $75,000 a year for 5 years
Timing: Program shall run from 1.995-96 thru 1999-2000
4. Vasona Light Rail` Station Downtown:' It is anticipated that the Vasona Light Rail
line will be constructed. by the end of the century., A station in downtown Campbell
is planned. The Agency will need to work closely with the Transportation Agency
to ensure a proper, design, access, and parking. It is anticipated that the Agency may
wish to modify the standard station design in order that it fit in with Historic
Downtown Campbell. -
Expenditure: $500;000
Timing: 1999-2000
5. Develop/Redevelop Key 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 of these parcels to create attractive developments.
Expenditure: A total of $500,000
Timing: Timing will depend to a.large degree on the motivation of the property
owners to -undertake a development and the market conditions. However,
expenditures are planned for the 1997-1999 period.
6. Marketing Efforts: For the past year, the Agency has worked to attract businesses
to the Downtown Area. This program will continue with advertising, working with
new businesses and property owners to ,facilitate new businesses locating here, and
working with real estate brokers. - In .addition, this program will support downtown
festivals and events -which promote the, downtown, including the Farmers' Market.
Expenditure: $30,000 over six years. Expenditures are included in the budget under
Economic Development.
Timing: This will be an ongoing program beginning in 1994-95.
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I
North of Campbell Ave. (NOCA
1. Southern End Development Project: The redevelopment of the NOCA .area is
important ao the revitalization of the downtown. The intent is to remove the non-
conforming industrial uses and replace them with residential and/or commercial uses.
A, development at the southern end of NOCA should be.the first step as it will be the
most economically viable as a_ result of a large vacant parcel and also have -the
D greatest positive impact on the owntown as a result 'of its proximity. The Agency
will evaluate the potential for a commercial and/or residential development in this
area. The type of development feasible will depend to a large extent on market
demand and the assistance provided by the Agency.
Expenditure: $750,000 from 20% Housing Funds and $250,000 in 80% Funds
Timing: Evaluation of the development would begin in 1994-95 with construction
estimated to begin in 1995-96.
2. Additional Redevelopment Opportunities: As stated above, the redevelopment of
the NOCA industrial area is an important component of the Agency's downtown
revitalization efforts. Existing industrial buildings will need to be removed and
residential (including affordable housing), office, or commercial uses constructed.
This redevelopment effort will require substantial Agency assistance as a result of
acquiring improved properties. The timing will depend largely on the market demand
for redevelopment with housing and/or commercial uses.
'Expenditure: $1.15 million in 20% Housing Funds is planned in 1997-99 and $1.5
million in 80% Funds in 1997-99.
Timing: Planning and negotiations for the projects is estimated to begin in 1995-96
with construction to begin in 1997-98.
3.' Evaluate Relocation of School District Corporation Yard: The Campbell Union
School District Corporation Yard is located on Harrison Ave: behind the Home Depot
store. Both the School District and the Agency would like to see it moved out of the
area.
Expenditure: No capital expenditure is proposed at this time.
Timing: Evaluation to take place in 1994-95 as part of the process for determining
land uses for the Winchester Drive -In Site.
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4. Salmar Ave. Realignment and Railroad Crossing_ Several years ago, the City
Council approved the conceptual layout for the extension of Salmar Ave. to connect
more directly to -the Downtown. This realignment included a new railroad crossing.
However, this is an extremely expensive project and, based on Agency financial
projections, does not appear financially feasible. Therefore, the Agency will
reevaluate the project and investigate such options as upgrading the existing Salmar
Ave. connection to the downtown. In addition, the Agency will evaluate other traffic
improvements in NOCA, including widening Salmar Avenue at Hamilton Avenue.
Expenditure: No capital expenditure is proposed at this time. The evaluation will
be conducted in-house using existing staff.
Timing: Evaluation to take place in the 1995-96 fiscal year.
South of Campbell Avenue LSOCA�
1. Creekside Apartment Complex: An Owner Participation Agreement (OPA) has
been approved for the construction of a 348 unit Multi -Family housing development
at 500 Railway Ave. The Agency is providing financial assistance to help with the
affordable housing component of the project. The Agency will implement the
provisions of the OPA over the next two years and provide financial assistance as
stipulated.
Expenditures: Estimated expenditures from the 20% Housing Fund of $230,000 in
1994-95 and $218,000 annually beginning in 1996-97 to assist with the affordable
units.
Timing: Project is currently under construction and should be complete by 1995-96.
2. Additional Redevelopment Opportunities: Much of the SOCA area is developed
with non -conforming industrial buildings while the General Plan allows for High
Density Residential in many areas.
The development at 500 Railway Ave. may provide an impetus for additional
residential development in the area, which may include affordable housing units. In
addition, some commercial development may be possible. Substantial Agency
assistance may be required to stimulate redevelopment in this area. This may include
such Agency activities as property acquisition and consolidation, relocation of existing
businesses, and financial assistance to facilitate the construction of low and moderate
income housing units.
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Expenditures: $1,150,000 in 20% Housing Funds in 1997-99 and $1,500,000 in
80% Funds in 1997-99.
Timing: Planning and negotiations for projects is expected to begin in 1995-96 with
construction to begin in 1997-98.
3. Evaluate City Corporation Yard Relocation: The City Corporation yard is located
adjacent to Los Gatos Creek and the new development under construction at 500
Railway Ave. The property is zoned for High Density Residential use. The City
would like to relocate the corporation yard to a less desirable piece of property and
develop attractive residential units along the creek.
Expenditures: No capital expenditures are planned at this time.
Timing: The evaluation will take place as part of the Winchester Drive -In land use
analysis which is currently underway.
McGlincey Lane Area
1. Development of Winchester Drive -In Site: The Agency purchased the former
Winchester Drive -In Site in April 1994, and is undertaking a process to determine
the optimum use of the property. The evaluation will include looking at providing
open space and parks on the site. Once a use, or uses, is decided upon, the Agency
will begin an implementation program.
Expenditures: $50,000 has been budgeted in the 1994-95 budget for consultant
assistance. An additional $50,000 is projected to be needed in 1995-96 to begin the
implementation process.
Timing: Determine land use(s) by December 1994, and begin implementation
process beginning in January 1995.
2. Upgrade McGlincev Lane Infrastructure and Properties: Infrastructure in the
Area is substandard in many respects in terms of serving the Drive -In site as well as
serving the existing area. Substandard infrastructure includes water lines, storm
drains, and public streets, sidewalks, and traffic control devices. An evaluation of
deficiencies is necessary as well as cost estimates. In addition, many properties in the
area are substandard, and upgrading will be encouraged.
Expenditures: $250,000 in 1996-97, $250,000 in 1997-98, and $250,000 in 1998-99.
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Timing: The .preliminary evaluation of -infrastructure deficiencies will take place as
partof the Winchester Drive -In land use analysis with more detailed analysis to. take
place thereafter. Improvement work is anticipated in fiscal years 1996-99.
3. Cristich Lane Conversion to Public Street: Cristich Lane is a private street in
substandard condition. The issues and funding needs to be studied to determine if it
is feasible, and if the property owners are willing, ,to have it converted to public
street. An assessment district will, be studied, similar to- that in the Dillon/Gilman
area where costs were shared between the Agency and property owners.
Expenditures: $250,000 -in 1996-97. and $250,000 in 1997-98.
Timina: A preliminary evaluation will take place as part of the Winchester Drive -In
land use analysis. More detailed study and discussions with property owners would
take place in 1995-96 with possible construction to begin in 1996-97.
Hamilton. Ave. at Creekside -Way
L Development of Parcel at 900 E. Hamilton Ave.: As part of the development of
the office complex at 900 E. Hamilton Ave., a hotel development was proposed on
a parcel by Highway 17. The hotel portion of the..project was, never built, and the
parcel has remained vacant. The development of the parcel would complete the
project at 900 E. Hamilton Ave. The Agency would like to work with the property
owner to facilitate the development of this parcel.
Expenditures: No capital expenditures. are, proposed at this time.
Timing: The process of working with the property � owner to facilitate development
would begin in 1995-96 and continue until such time a development takes place.
Economic Development Activities
1. Develop Strategy: - As , a first step, the Agency will develop an economic
development strategy and implementation program. It is anticipated that this would
include a heavy emphasis on business retention. as well as business recruitment efforts.
Expenditures $10,000 is proposed to be spent annually on economic development
activities for the next 6 fiscal years.
Timing.'. The development of the strategy and implementation program will begin in
1-994-95 with implementation to take .place beginning later in this fiscal year. The
program will be ongoing.
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2. Downtown Marketing Activities: See "Downtown Area - Marketing Efforts."
Low and Moderate Income Housing Fund Activities
1. NOCA and SOCA Activities: These are explained under the respective headings
above.
2. Housing Rehabilitation Activities: Housing rehabilitation projects can be an
extremely effective means of providing decent and safe affordable housing. In the
past, the Agency has worked successfully with non-profit housing developers on the
Shannon Palms and San Tomas Gardens projects. The Agency would like to explore
working with non -profits in the future for rehabilitation projects both within and
outside the Project Area.
Expenditures: $250,000 in 1996-97, $250,000 in 1997-98 and $250,000 in 1998-99.
Timing°. The Agency will begin working with non -profits to identify.opportunities
in 1995-96 with expenditures anticipated for the three fiscal years after that.
3. Complete the Creekside Apartments and San Tomas Gardens Projects: The
Agency has entered into an Owner Participation Agreement to facilitate the
development of a 348 unit apartment development in the SOCA area at 500 Railway
Ave. This project will contain up to 69 very low income units. The Agency has also
entered into a loan agreement to facilitate the purchase and rehabilitation of the 100
unit San Tomas Garden Apartment Development by anon -profit agency. This project
will contain 65 very low income units and 34 moderate income units. These two
projects will substantially help the Agency meet its affordable housing goals and meet
the requirements of the AB 315 Housing Production Plan.
Expenditures: $730,000 in 20% Housing Funds in 1994/95 and annual payments of
$218,311 beginning in 1996/97.
Timing: Creekside Apartments and San Tomas Gardens to be completed in 1995/96.
4. Develop and Implement a Rental Assistance Program: 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.
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It is proposed that the Agency contract with a non-profit agency to operate this
program, as is done :by several, nearby cities.
Expenditure: $10,000 annually for five years.
Timisin .Program begins in 1995/96 and continues through 1999/2000.
Financial
1. , Evaluate Bond Issuance: The Agency. will have significant increases in tax
increment revenue in three to four years as a result of new development in the Project
Area, in particular, the development at 500 Railway Ave. The increase in tax revenue
may allow the Agency to issue several million dollars in bonds, thus providing funds
for redevelopment projects.
Expenditures: No expenditures are .anticipated :in evaluating the bond issuance.
Timing: The evaluation for issuing bonds should take place in fiscal year 1996-97.
Bonding from both the 20% Housing Fund and regular Agency funds is budgeted for
1997-98.
2. Repay City Loan For Drive -In Site: The Agency needs to determine how to repay
the loan from the City that was, used to purchase the Winchester Drive -In Site.
Repayment may come from land sale or .lease proceeds from the Drive -In Site.
Expenditures: $3.34 million (principal on loan)
Timin Although the timing is difficult to determine at this time, it is budgeted to
repay the loan in 1997-9.8.
3. Continue debt service payments on the Community Center COP's: The Agency
makes annual payments to service a- portion of the debt service for the Campbell
Community Center.
Expenditures: $400,000 annually.
Timing: Payments will continue for the life of the.bonds.
4. Monitor assessed valuation trends, tax increment payments from the county. and
tax sharing. 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 entities.
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Expenditures: Such monitoring will typically be handled by Agency staff,
consequently, no . additional expenditures will be required, except in special
circumstances.
Timing: Ongoing.
IV. EXPLANATION OF HOW THE GOALS, OBJECTIVES, PROGRAMS
AND EXPENDITURES WILL ELIMINATE BLIGHT
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 McGlincey Lane Area. As part of that an in March 1992,
a report of blighting conditions in the McGlincey Lane Area was prepared as well as a
report on remaining adverse conditions in the original Central Campbell Redevelopment
Project Area. The following is a summary of the findings of blighted conditions from
these reports which remain in the Project Area today.
Original Central Campbell Redevelopment Project Area: The report references the
findings from the Downtown Development Plan which :was completed in 1988 -
Existing Conditions in the Downtown: "The nine block area which comprises downtown
Campbell has declined in importance and vitality as the city's retail focus over the years.
Historically, this stretch of East Campbell Ave., 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 Blvd. and
Hamilton Ave. have contributed to' the downtown's decline as a retailing area.
Although the . western and outer edges of downtown have experienced some new
development in recent times, it is principally office uses which have moved in. These uses,
though desirable from many aspects, do not contribute -to a lively, pedestrian oriented
environment to the extent that retail- uses do.
At the same time, some' buildings which once housed healthy retail establishments have
been allowed to ' decline 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 to provide a focus or gathering place for community
activities.
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In .downtown Campbell, several conditions tend to mitigate against a totally private,
self -revitalization approach. These include:
• The presence of relatively small parcels, sub -standard buildings, fragmented
ownerships and, in some case, marginal businesses.
• Street frontages with inadequate retail continuity.
• A downtown that is insufficiently attractive to intercept potential customers passing
by on adjoining streets.
• A potentially inadequate supply of parking.
• An investment climate that deters property owners and businesses from making
expenditures for rehabilitation, expansion, or new construction.
• A number of property owners and businesses unable or unwilling to 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. 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, during the early stages of downtown revitalization, relatively high level
of 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 since 1988, mainly in the installation
of public improvements such as the Downtown. Streetscape Project, most of the adverse
conditions listed above exist today.
Remaining Adverse Conditions in Original Project. Area: 'Adverse conditions
remaining in the original redevelopment project area include, 'but are not limited to:
• 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.
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The downtown area contains several commercially occupied buildings that date
from a, period when Campbell was an agricultural packing and canning center.
In may 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: Such buildings include privately owned buildings and
structures located in the corporation yards operated' by the city and the school
district.
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. 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 inareas occupied by industrial uses are substandard in terms
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 I made since the inception of
the redevelopment program, much more remains to be accomplished. Today,
substandard and deteriorated public improvements continue to be a blighting
influence in the- project area.
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.
The existing redevelopment project area also included a trailer, park that has some
older recreational trailer_ coaches that appear to in; the use as full-time residences.
A deteriorated and informally constructed restroom, shower and laundry facility
serves the trailer park It is unlikely that this trailer park and its facilities meet
a reasonable standard for "decent, safe, and sanitary housing. " The park is also
adversely- impacted by truck movements and surrounding industrial uses.
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Incompatible Uses: Incompatible remaining -uses-. include automobile repair
garages in the. center of downtown, residual residential uses in the downtown -and
in industrial areas, ,and the corporation yard and bus facility operated by the
school district. Not only do such uses cause circulation, parking, and other
conflicts, but it is likely that they inhibit the implementation of the redevelopment
program and adversely affect the revitalization of downtown.
McGlincey Lane Expansion Area: The following is an overview of the blighting
conditions found in the McGlincey Lane Area:
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.
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.
Substandard. Storm Drainage Facilities: Storm drainage facilities in the area
are substandard- deteriorated and incapable_ of adequately serving the area. Part
of the system drains into percolation ponds used to recharge the local ground
water system. Major improvements are required to provide better coverage within
the area, provide groundwater protection, prevent pollution of storm water runoff,
and carry storm water off site.
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.
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.
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.
City of Campbell Redevelopment Agency Part 1 -` Implementation PlaW
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Code Compliance Problems: Code compliance problems identified during recent
field -surveys include deteriorated structures, non -conforming construction,
improper storage of combustible and hazardous materials, illegal outside storage,
and, non -conforming uses.
HOW GOALS OBJECTIVES PROGRAMS AND EXPENDITURES WILL
ELIlMEINATE BLIGHT
Downtown Area
As indicated above, the Downtown Area has a number of blighting conditions that prevent
is from being an economically viable area. These include substandard buildings with
unacceptable appearances, inadequate parking, and a poor'business climate. The goals,
objectives and programs outlined in Sections II & III 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..
management. Lack of adequate parkingis one of the conditions that limits the viability
of downtown. In order for the downtown to be successful, adequate parking is a key
factor. By adding parking on the loop streets, undertaking a parking management
program, and evaluating a parking assessment district, the parking situation downtown will
be improved.
Program: Evaluate Former Museum .Building. Once a suitable location for the
museum collection is found, the former -museum building may no longer be needed for
public use. Consequently, it provides an opportunity to be converted to a private use that
will be beneficial to the downtown. A commercial use at :this prominent location would
attract people to the area and help create more pedestrian traffic in the downtown:
Program• Upgrade Downtown Buildings. As, indicated in the blight findings, the
downtown needs to be more attractive to attract customers. However, the property owners
are unable to make the necessary improvements on their own. This program would assist
property owners to improve their properties, thus making them more viable for downtown
businesses and help eliminate rundown, dilapidated -buildings.
Program • Vasona Light Rail Station Downtown. The downtown needs to. attract more
people, particularly pedestrians, in order to be viable. A light rail station, with associated
parking, is sure to bring. more people to the area which will help support businesses.
City of Campbell Redevelopment Agency Part I - Implementation Ian
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Program: Develop/Redevelop Key Parcels. The downtown has non -conforming uses,
small parcels and substandard buildings, all of which are detrimental to the area. Through
this program, certain key .parcels that are the most detrimental, or others that have the
greatest potential, .would be redeveloped or developed.
Program: Marketing 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..
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 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 to it.
Program: Southern End Development Project. This project is intended to kick-off
redevelopment efforts in the area and be an impetus for further redevelopment. It will
create an attractive development on a piece of property that has sat vacant for a number
of years while' complementing the downtown businesses.
Program: 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.
Program: Evaluate Relocation of School District Corporation Yard. The Campbell
Union School District Corporation Yard is located in NOCA and is incompatible with the
adjacent downtown and surrounding residential uses.. This is also the School District bus
storage and repair facility, and bus activity.. disrupts the surrounding neighborhoods.. The
relocation of the facility would eliminate.this incompatible use.
Programs: Reevaluate -New Salmar Ave: Railroad Crossiney. and Salmar Extension.
This alignment was approved several years ago to provide a better access to the downtown
area. However, it is an extremely expensive project that may not be financially feasible.
It shall be reevaluated to determine if an alternative that can be developed to create a
better access to the downtown and improve the traffic problems in the area at a reasonable
cost.
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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.
Program: Creekside Apartment Complex. This apartment development which is
under construction, is redeveloping a 12 acre blighted parcel previously used for storage
yards and industrial uses. This property was also contaminated with toxics. A number of
dilapidated metal buildings have been removed and the toxics cleaned up. This project
is intended to provide an impetus for further redevelopment activities in the area.
Program: Additional Redevelopment Opportunities. The Creekside Apartment
Complex should provide an impetus for additional redevelopment in the area. The
Agency will explore redeveloping additional blighted industrial properties with residential
or commercial uses north of the Creekside project, thus eliminating additional non-
conforming and dilapidated buildings.
Program: Evaluate City Corporation Yard Relocation. The City Corporation yard
is a non -conforming use in the area, and adjacent to the new Creekside project. Its
relocation would allow for residential development adjacent to the Los Gatos Creek and
compatible uses in the area.
McGlincey Lane Area
The 101-acre McGlincey 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.
Programs: Development of Winchester Drive -In Site and Upgrade McGlincey Lane
Infrastructure. The Winchester Drive -In Site has sat vacant for over 10 years. It is
difficult to develop because of the poor access to the site, substandard infrastructure to
serve it and the surrounding area, and the general poor condition of the surrounding area.
Its development will eliminate a large, underutilized piece of property and should prompt
improvement of surrounding properties.
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The upgraded infrastructure prompted:by development of the site should help the entire
McGlincey Lane area and eliminate some serious problems.
Program: Cristich Lane Conversion to Public Street. The poor condition of Cristieh
Lane is a blight on the area. It is substandard in all respects and inhibits proper
utilization of properties along it. The conversion of it to a public street and upgrading
to public street standards, including curbs, gutters and . sidewalks, will eliminate this
blighting condition and enhance property values along it.
Hamilton Ave. at Creekside Way
Several years ago, a major office development redeveloped much of this area. However,
a parcel adjacent to the freeway has sat vacant, uneconomically viable to develop for the
past several years.
Program: 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.
Economic Development Activities
Attracting and retaining key businesses is important to the success of the redevelopment
project area, as -well as to the city as a whole. In order to redevelop properties and
eliminate blighting conditions, the area must. have a -strong and successful business
presence in order to attract new -development.
Programs: Develop Strategy -and Downtown Marketing Activities. By developing a
successful economic strategy and downtown marketing program, -existing successful
businesses will remain in the city and new ones will be attracted. This will help facilitate
the redevelopment of blighted properties and the establishment of new businesses.
Low and Moderate Income Housing 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.
Program: NOCA and SOCA Activities:: These areas will be redeveloped in large part
for residential uses containing low and moderate income units. The redevelopment of
these areaswill eliminate non -conforming, and in many cases dilapidated buildings. The
residential uses in proximity to the downtown will help suppoit businesses there.
City of Campbell Redevelopment Agency Part 1 - Implementation Plan
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Program: Housing Rehabilitation Activities: This program will rehabilitate existing
housing units, many of which are in a dilapidated, unsafe and unsanitary condition.
Program: Creekside Apartments and San Tomas Gardens Projects: As indicated
above, the Creekside Apartments Project is redeveloping a 12-acre blighted parcel
previously used for storage yards and industrial buildings. The San Tomas Gardens
Project will rehabilitate deteriorated affordable housing development, while maintaining
the affordability of the project.
Financial
The financial activities will allow the Agency to carry out many of the programs
described above, and thereby eliminate blight.
Programs: As Listed Above. The issuance of bonds will provide the funding for many
of the programs described above, thus eliminating blight as previously described. Paying
off the city loan for the drive-in site will free up debt service funds which can then be
pledged for bond debt service payments.
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.
2. The number of housing units to be rehabilitated, price -restricted, assisted or destroyed.
3. Plans for using annual deposits to the Housing Fund.
4. 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.
City of Campbell Redevelopment Agency Part 1 - Implementation Plan
29
How Goals, Objectives, Programs, Expenditures will Implement Low and Moderate
Housing Requirements:
In summary, 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.
The goals, objectives, programs, and expenditures for low and moderate income housing
fund activities are outlined in Sections II & III of this AB 1290 Implementation Plan and
are also indicated below. These programs will produce new affordable housing units
within the Redevelopment Project Area, as well as rehabilitate existing housing units to
create decent, safe and sanitary housing units for low and moderate income persons. 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 six years. Table II indicates the beginning fund balance of $1,235,832,
and estimated 20% set -aside deposits into the Housing Fund over the next six years of
$3,233,972.
The affordable housing programs and expenditures will implement the requirements of the
Health and Safety Code and provide a substantial number of 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.
Estimated # Estimated
Project - Affordable Units of Units Year Completed
New Construction - Creekside Apartments 69 1995-96
Rehabilitation - San Tomas Gardens 99 1994-95
New Construction - NOCA Residential Projects 20 1997-99
Other Housing Rehabilitation 75 1996-99
New Construction - Additional SOCA Projects 20 1998-99
Total 283
City of Campbell Redevelopment Agency Part 1 - Implementation Plan
30
At this point, the Agency does, not anticipate the removal or destruction. of existing
affordable housing as a result of a redevelopment project. This is a result of the fact that
the Redevelopment Project Area contains very little existing housing. However, should
such housing be destroyed, the Agency will fully, comply with Health and Safety Code
Section 33413 in order to provide replacement housing. Such replacement housing, if
needed, should easily be able to be accommodated within the NOCA or SOCA areas.
Low and Moderate Income Housing Fund Activities
Goal:
1. To facilitate the provision of decent; safe, and sanitary housing for low and moderate
income individuals and families.
Objectives:
1. Evaluate a residential development, including affordable housing, in the southern
NOCA area in conjunction with potential. commercial development.
2. Work with non' -profit housing developers on housing rehabilitation projects for low
and moderate income individuals and families..
3. 'Explore low and moderate income housing redevelopment opportunities in the NOCA
and SOCA areas.
4. Complete the Creekside Apartment project and San Tomas Gardens project.
5. Develop and implement a rental assistance program.
SDeci£C Programs. Ezoenditures and .Timing:
1. Southern End Project: The redevelopment of the. NOCA area is important to the
revitalization of the'downtown. The intent is to remove the non -conforming industrial
uses and replace. them with residential and/or commercial uses. A residential
development in this area, with an affordable housing component, would provide an
Attractive development in the area and place :people close to the downtown. A
development at the southern end` of NOCA should be. the first step as it -will be the
most economically viable as a result of a large vacant parcel and also have the
greatest positive impact on the Downtown as a result of its . proximity.
Expenditure: $750,000 .in 20% Housing Funds.
City of Campbell Redevelopment Agency -Part 1 - Implementation PIan
. 31
Timing: Evaluation of the development would begin in-1994-95 with construction
estimated to begin in 1995-9,6.
2. Housing. Rehabilitation Activities: Housing rehabilitation projects can be an
extremely effective means of providing decent and safe affordable housing. In the
past, the Agency has worked successfully with non-profit housing developers on the
Sharmon Palms and San Tomas Gardens projects. The Agency would like to explore
working with non -profits in the future for rehabilitation projects both within and
outside the project area. These programs can provide a substantially number of
affordable units at a reasonable cost.
Expenditure: $250,000 in 1996-97, $250,000 in 1997-99 and $250,000 in 1999-99.
Timing: The Agency will begin working with non-profit housing agencies to identify
opportunities in 1995-96 with expenditures anticipated for the three fiscal years after
that.
3. NOCA and SOCA Affordable Housing Redevelopment Froiect: The NOCA and
SOCA areas are predominately developed with non -conforming industrial buildings,
many of which are in a dilapidated condition. The General Plan for the areas allows
for High Density Residential uses in many areas, as well as some other uses in certain -
areas. The Creekside Apartment development in SOCA and the development at the
southern end of NOCA will provide, an initial . impetus for .further redevelopment
activities in these areas.
These areas provide an ideal setting for residential projects with affordable housing
as they are located adjacent to downtown services and future light rail service, as well
as other public transit. - In- addition, the amenities of Los Gatos Creek, Campbell
Community Center, and the Campbell Public Library are in proximity for the use of
residents.. In summary, affordable housing developments in NOCA and SOCA will
provide attractive housing with numerous amenities in proximity to the developments.
In addition, such developments will redevelop non -conforming, blighted properties
with attractive uses and help support the downtown area.
ExIlenditure: $2:3 million in 20% funds in 1997-99.
Timing: Planning and negotiations for the projects is estimated to begin in 1995-96
with construction to begin in 1997-98.
City of Campbell Redevelopment Agency ' ' Part 1 - Implementation Plan
32
4. Complete the Creekside Apartments and San Tomas Gardens Projects: The
Agency _ has entered into an Owner Participation Agreement to facilitate the
development of a 348 unit apartment development in the SOCA area at 500 Railway
Ave. This project will contain up to 69 very low income units. The Agency has also
entered into a loan agreement to facilitate the purchase and rehabilitation of the 100
unit San Tomas Garden Apartment Development by a non-profit agency. This project
will contain 65 very low income units and 34 moderate income units. These two
projects will substantially help the Agency meet its affordable housing goals and meet
the requirements of the AB 315 Housing Production Plan.
Expenditures: $730,000 in 20% Funds in 1994-95 and payments of $218,000
annually for 20 years beginning in 1996-97:
Timing: Projects to be completed in 1995-96.
5. Develop and, Implement a Rental ' Assistance Program: 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.
It is proposed that the Agency, contract with a non-profit agency to operate this
program, as is done by several nearby cities.
Expenditure: $10,000 annually for five years from the 20% Housing Fund.
Timing: Program to begin in 1995-96 and continue through 1999-2000.
City of Campbell Redevelopment Agency Part 1 Implementation lap
33
PART 2
AB 315 REQUIREMENTS
AFFORDABLE HOUSING PRODUCTION PLAN
EXECUTIVE SUNWARY
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., Of the 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
by December 31, 1994, 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. The Production Plan
provides analysis of units that have been previously constructed within the. Project Area, those
currently under construction, those projects, to be constructed in the next 10 years and those to
be constructed 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.
In summary, the Production Plan indicates that 144 units (Heritage Village) have previously been
constructed in the Project Area since 1983. Another 380 units (Cieekside Apartments and
Orchard Villa Townhomes) are currently under construction. It is then estimated that
approximately another 180 additional units may be constructed in the Project Area over the next
10 years.. Consequently, a total of 704 units will _ have been constructed in the Project Area by
the year 2004. Applying the 15% formula indicates that a total of 106 affordable units (704 x
15% = 106) must be provided, of which. 42 (704 x 6% _ 42) must be affordable to very low
income persons.
City of Campbell Redevelopment Agency Part 2 - Affordable Housing Production Plan
34
There are currently two affordable housing projects underway that will provide enough affordable
units to nearly meet or exceed the Agency's affordable housing obligation. The first project is
the Creekside Apartment project that will provide either 69 very low income units or 42 very low
income units and 10 moderate units. The other project is the San Tomas Gardens acquisition and
rehabilitation from which the Agency will receive. a credit for 32 very low income units and 17
moderate units. Therefore, from these two projects, the Agency will receive a credit for either
101 or 118 affordable units, of which either 74 or 101 will be for very low income persons. The
surplus of very low income units is particularly beneficial as these units are typically the most
difficult to produce, and the surplus will give the Agency greater flexibility in the number of such
units that might be required in future projects.
Thus, as fully documented in the following Production Plan, the Agency has a feasible program
to satisfy its Project Area housing production requirement from the date of establishment of the
Project Area in 1983 through the end of the compliance period covered by this ten-year
Production Plan in 2004. In addition, the Agency should easily be able to meet the production
requirement for those units produced after 2004 until the termination of the Redevelopment Plan
in the year 2027.
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, 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.
City of Campbell Redevelopment Agency Part 2 - Affordable- Housing Production ME
35
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 constructed 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. 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. Agency's 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. Finally, AB 1290, (the
Redevelopment Law Reform Legislation enacted in 1993), requires that the Production
Plan be adopted by December 31, 1994.
The key elements of the Production Plan for the City of Campbell Redevelopment Agency
include:
1. 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.
City of Campbell Redevelopment Agency Part 2 - Affordable Housing Production Plan
36
2. An estimate of the number of residential units expected to be constructed,
substantially rehabilitated, or price restricted within the next 10 years 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 over the next 10 years and over the life of the Redevelopment Plan.
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.
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.
McGlincey Lane area was added to the Project Area. The attached map (Exhibit A in
Part I) indicates the boundaries of the Central Campbell Redevelopment Project Area.
In 1993, 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 no units were 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:
City of Campbell Redevelopment Agency Part 2 - Affordable Housing Production Plan
37
UNITS COMPLETED OR UNDER CONSTRUCTION SINCE 1983
CENTRAL CAMTBELL REDEVELOPMENT PROJECT AREA
Project
Total # of Units
Heritage Village - competed 1985 144
(Winchester Blvd. & Campbell Ave.)
Orchard Oak Townhomes - under construction 32
(Page St.)
Creekside Apartments - under constr. 348
(Railway Ave.)
Total
524
To date, no units have been completed that meet the Agency's Project Area Housing
Production Requirement, although a substantial number of units are in the process of
being produced to meet that requirement, as is fully discussed below.
M. 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 for the next 10 years
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.
In 1992, 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 of the potential number of.housing units that could be constructed.
This inventory was also done for residentially zoned sites within the Project Area. Policy
B: Implementation Program #4 of the Housing Element indicates that it is estimated that
700 new housing units could be provided in the Project Area over the life of the
Redevelopment Plan. This estimate includes the 380 units currently under construction
at the Orchard Oak Townhomes and Creekside Apartment projects.
The greatest potential for new housing in the Project Area is in the South of Campbell
Avenue Area (SOCA) and in the North of Campbell Avenue Area (NOCA). In recent
years, both of these areas have had their General Plan designation changed from
"Industrial" to "High Density Residential' for much of the area.
City of Campbell Redevelopment Agency Part 2 - Affordable Housing Production Plan
38
Both of these are older industrial areas which are primarily fully developed with older
industrial buildings on small parcels. 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..
Currently, there are two projects under construction in these areas. One is the 348 unit
Creekside Apartment at 500 Railway 'Ave. This is the largest single parcel in the area.
The other project is the. 32 'unit Orchard Oak Townhouse project on Page .Street.
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 `limited Agency, financial resources to provide assistance: There is about three
acres of land in NOCA with the greatest potential for residential construction in the next
10 year. which could produce up to, 60 units. In addition, another 6 acres of land has the
greatest potential for redevelopment in the 'SOCA area and could produce up to about 120
housing units over the next 10 years. Therefore, the Agency estimates that not more than
180 units will be added to the Project Area over the next 10 years, exclusive of the 380
units currently under construction.
Consequently, based on the General Plan Housing Element estimate of 700 new housing
over the life of the Redevelopment Plan, a total of 140 units would be constructed
constructed between the year 2004 and 2027 when the Redevelopment Plan terminates.
(380 units under construction+ 180 to be constructed over the next 10 years + 140 units
to be constructed between 2004 and 2027 = 700 .housing units). Most of these units
would be constructed on smaller sites in the NOCA and SOCA areas.
IV. ANALYSIS OF AFFORDABLE HOUSING OBLIGATION
The affordable housing obligation of the Agency must be estimated for 1) the next 10
years, and; 2) beyond the ten year planning period and before the end of the
Redevelopment Plan. The analysis for each is indicated below:
Ten Year Obli atc ion: To summarize, a total of 524 housing units have been constructed
or are currently under construction within the Project Area: Not more than.180 additional
units are anticipated to be .constructed within the next 10. years. Therefore, a total of 704
units (524 + 180 = 704) will have been produced by the end. of the 10 year period.
Applying the 15% affordability requirement to these units; .a total of 106 affordable units
(704 x 15% = 106) must be produced; of which :42 (704 x 6% 42) must be affordable
to very low income, persons.
City of Campbell Redevelopment Agency Part 2 = Affordable Housing Production Plan
39
Obligation Beyond the Ten Year Period: As indicated above, it is estimated that 140 units
will be constructed in Project Area beyond the ten year planning `period and before the
end of the Redevelopment Plan (between the year 2004 and the year 2027). Applying the
15% affordability requirements to these units,, a total of 21 units (140 x 15% = 21) must
be produced, or .which 8 units (140 x 6% = 8) must be affordable to very. low income
persons.
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 the period of the land use controls established
in the redevelopment plan. The resulting restriction of units to relevant standards of
affordability, therefore, must remain in place until at least the year 2023 for the Original
Project Area and until the. year '2027 for the McGlincey Lane Expansion Area.
Ten Year Obligation: Currently, there are two affordable housing projects underway that
will, meet, or nearly meet, the Agency's obligation for the next 10 years. First is the
development of the 348 unit -Creekside Apartment Complex at 500'Railway Ave. This
project is being developed by Bay Apartment Communities, Inc. (" BAC") and will include
either 69 very low income units or 52 low and moderate units. The Agency has executed
an Owner Participation Agreement with BAC in order to provide financial assistance from
the Agency's 20% Housing Funds. Recorded covenants requiring affordability will
require that the units remain affordable until the year 2027. The project is currently under
construction and is expected to be completed by late 1995.
The second project underway is the San Tomas Gardens apartment project located on San
Tomas Aquino Road in the west sectionof the City.of Campbell. This is an existing 100
unit HUD Section 236 affordable housing project that is.under'threat to return to market
rate housing. A non-profit agency, San Tomas/Charities Housing Corporation, has a
contract to -purchase the project; rehabilitate it, and maintain it as affordable housing. The
Agency has agreed to loan the non -pro .fit a total of $579,000 ($500,000 in 20% Housing
Funds: and $79,000 in CDBG Funds) .to make the rehabilitation and acquisition feasible.
City of Campbell Redevelopment Agency Part 2 - Affordable ousing Production Plan
40
As a condition of the loan, affordability covenants will be placed.on the project for a total
of 40 years.. The project will contain 65 very low income units and 34 moderate income
units. The. rehabilitation of the complex and the implementation of the affordable housing
covenants should be in completed by late 1995.
The San Tomas Gardens project is located outside the Project Area. However, as a result
of AB 1290 (the 1993 Redevelopment Law Reform, Legislation), affordable units
produced outside a Project Area will count towards units required within the Project Area
on a two -for -one basis: that is, two affordable units: created outside a Project Area will
count the same as one unit in the Project Area. -In addition, AB 1290 allows the Agency
i to count towards its affordable production requirement already existing units, such as
those at San Tomas Gardens, so long as the Agency will impose restrictions that will
cause the existing units to remain affordable beyond the period they would otherwise be
required to remain affordable. These special AB 1290 provisions apply only to units
outside the Project Area that'are price restricted within a three year period, to which San
Tomas Gardens will qualify. Therefore, the Agency will receive credit for 32 very low
and 17 moderate income units as a result, of the San Tomas Gardens project.
The following two tables summarize the number of affordable units that will be credited
by Creekside Apartments and. San Tomas Gardens against the Agency's housing
production requirement.. Two tables are required as Creekside Apartments has the option
of providing either 69 very low income units or 42 very low and 10 moderate units.
CREDIT FOR AFFORDABLE UNITS
(CREEKSIDE APARTMENTS WITH 52 LOW AND MOD.)
Pro e
Creekside Apartments
San Tomas Gardens
# Affordable Units
very low mod.
42
10
(65x.Q. 32 04x.5)=17
Total 74 + 27 101
City of Campbell Redevelopment Agency art 2 - Affordable °Housing roduction Plan
41
CREDIT FOR AFFORDABLE UNITS
(CREEKSIDE APARTMENTS, WITH 69 VERY LOW)
Properft
Creekside Apartments
San Tomas Gardens
# Affordable Units
very .low mod.
69 0
(65 x .5) -- 31. (34- x .5) = 17
Total 101 + 17 = 118
As can be seen by the above .tables, the' Agency will :receive credit for either 101 or 118
affordable units produced, of which either 74 or 101 will .be for very low income persons.
In the previous section of this report, it is estimated that the Agency will have an
obligation to produce a total_ of 106 affordable units, of which 42 must be for very low,
income persons. Therefore, with the Creekside Apartments and San Tomas Gardens
projects, the Agency will nearly meet or exceeded its affordable housing requirements,
particularly in. regards to very low income units. Should -the Agency be five units short
of meeting its housing obligation with the above two projects, it will easily be able to
meet and exceed the requirement with the anticipated units to be constructed over the next
five years. For example, in Section V of Part I,. it is estimated that 40 additional
affordable housing units will be constructed in NOCA and SOCA over the next five years.
Therefore, with these units, the Agency's affordable housing obligation over the next ten
years would be exceeded. The Agency has. estimated expenditures from the 20% Housing
Fund of over $3 million over the next five years to make the affordable units financially
feasible. Therefore, the Agency has a reasonable program in place to meet its affordable
housing obligation over the next 10 years.
Although the Agency will be able to meet, or nearly meet, -its 10 year affordable housing
obligation with the above two referenced projects, 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 m-lieu fees as. approved ,by the Agency. Therefore,
by having met, or nearly 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.
City of Campbell Redevelopment Agency Part:2 - Affordable'llousing Production Plan
42
Obligation Beyond the Ten. Year Period: As indicated above, it is estimated that 140 units
will be constructed in Project Area beyond the ten year planning period and the end of
the Redevelopment . Plan (the year 2004 to the year 2027): Of these units, 21 must be
made affordable to low and moderate income individuals. There are several programs by .
which the 21 affordable ' units will be produced. First, as indicated in Section V of Part
I of this report, the Agency anticipates that 40 'affordable units will be produced in NOCA
and SOCA over the next five years.. Only six of -these units may be necessary to help
satisfy the 10 year affordable housing.obligation. Therefore, a minimum of 34 affordable
units will be -,available which will more than satisfy the requirement for 21 affordable
units. As indicated above, the Agency is estimating expenditures of over $3 million from
the 20% Housing Fund to assists. with these affordable .units.
Second, as stated above, the Agency has a policy, of requiring that housing developments
in the Project Area provide their 15%' share of affordable housing or pay in -lieu fees..
Therefore, new housing, itself may provide at least some of the required units.
In summary, because the Agency will have,excess affordable housing in the next 10 years,
it will easily be able to meet its affordable housing obligation over the life of the .
Redevelopment Plan. Should it not have an excess for some reason, the housing
developments constructed after the 10 year planning period will provide their proportional
share.
VI. HOUSING ELEMENT CONSISTENCY
As indicated in Section III, the City's General.Plan Housing Element was revised in 1992.
The Housing Element .estimates that 700 housing units could be provided in the Project
Area over the life of the Redevelopment Plan.
With the 380 units currently under construction'and the additional 180 units estimated in
the Project Area over the next 10 years, a total of 560 units will have been constructed
during the ten-year Production Plan`period. This will leave approximately_ 140 units to
be constructed between the years 2004 and 2027, which appears a realistic number given
the limited opportunities for -new housing. Therefore, it is concluded that the Production
Plan is consistent with the Housing Element of the General Plan. As required, it will be
updated in conjunction with the required updates of -the Housing Element.
The Production Plan also serves to implement portions of the Housing Element. More
specifically, Policy B of the Housing Element is to encourage housing units affordable to
a variety of household .incomes. Implementation Programs #4 axd #5 speak to the
Agency's 156/o affordablity requirement and the use of .2.0% set aside funds to provide
affordable housing.
City of Campbell Redevelopment Agency Part 2'- AffordableHousing Production Plan
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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
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 (360 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 $500,000 in
20% Housing Funds in order to maintain the affordability of the San Tomas Gardens
project. In addition, the Agency has committed an annual operating subsidy payment of
approximately $218,000 a year from the 20% Housing Fund .for a 20-year period to
produce the affordable units at the Creekside Apartment development. The Agency
currently has the funds available, or will have the funds available, in its 20% Housing
Fund, to make the above referenced payments. Consequently, the Agency has the
financial ability to implement the current projects required to meet the Agency's 10 year
affordable housing obligation.
In addition, financial projections indicate that the Agency should have approximately an
additional $5 million available over the 10-year period in its 20% Housing Fund. These
funds will be used to fund other affordable housing projects, as required by
Redevelopment Law and will produce. additional. units to 'count toward the Agency's
affordable housing production requirements.
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City of Campbell Redevelopment Agency Part Affordable Housing Production Plan
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