Академический Документы
Профессиональный Документы
Культура Документы
Prepared for:
November 2007
Table of Contents
Community Redevelopment Agency of the City of Rancho Cordova
Redevelopment Strategic Plan
I. Introduction .............................................................................................I-1
Table of Figures
Figure 1 Redevelopment Project Area............................................................................................................................... I-4
Figure 2 Potential Catalyst Sites .....................................................................................................................................II-15
Figure 3 Convention District Overlay...............................................................................................................................V-3
Table of Tables
Table 1 Evaluation of TOD at Mather/Mills Pulse Point...............................................................................................II-10
Table 2 Criteria for Project Support................................................................................................................................II-16
Table of Exhibits
Exhibit 1 Agencies and Departments Involved in the Entitlement Process ................................................................... II-4
Exhibit 2 Recommended Criteria for Evaluating Potential Projects ...............................................................................II-9
Exhibit 3 Development Incentives Toolbox ...................................................................................................................II-11
Exhibit 4 Potential Neighborhood Improvement Projects ..............................................................................................III-3
Exhibit 5 California Community Redevelopment Law Housing Production and Expenditures Requirements .......... IV-3
Appendix
Appendix 1: Community Redevelopment Agency Reporting and Legal Requirements and Tracking Best
Practices
The Redevelopment Strategic Plan provides a set of initiatives and actions to guide
Rancho Cordova redevelopment actions and investment over the next five years. In conjunction
with the Economic Development Strategic Plan, it is intended to guide the activities of the
Economic and Neighborhood Development Division and implement existing goals for the project
area and City. As described more fully in the Economic and Neighborhood Development Strategy
Executive Summary, these existing goals include Rancho Cordova’s 13 citywide goals, the
Economic Development and Housing goals contained in the General Plan, and the goals adopted
in its Redevelopment Plan.
The Economic and Neighborhood Development Strategy team devised seven strategic
implementation initiatives to encompass the proposed plan. Four of these initiatives focus on
redevelopment priorities and are thus contained in this Strategic Plan:
The Economic Development Strategic Plan contains detailed recommendations to retain and
expand existing businesses, strengthen retail opportunities and attract new businesses. Please
refer to the Economic Development Strategic Plan and Executive Summary for more information.
The Five Year Redevelopment Strategic Plan begins with a brief discussion of redevelopment in
Rancho Cordova and a summary of Five Year Action Items. Chapters II through V are devoted to
these Action Items, organized by the four strategic implementation initiatives indicated above.
Specific action items, phasing and staffing recommendations are contained within each Chapter.
Chapter VI concludes the report with a summary of key recommendations. Appendix I contains
Reporting and Legal Requirements and Tracking Best Practices for compliance with California
Community Redevelopment Law (CRL).
This is an ideal time for Rancho Cordova to think strategically about how to use redevelopment
most effectively: Rancho Cordova is a relatively new City and has a brand new Agency; the
Agency begins to receive redevelopment funding this year (Fiscal Year 2006/07), and this is the
time in the life of a redevelopment project area when investments that increase property values
provide the greatest “bang for the buck” down the line. This Strategic Plan is a guide for staff to
quickly and efficiently create the programs and systems that more established organizations take
for granted, and to understand how to strategically invest in projects that will maximize long term
financial benefits. Using this guide, Rancho Cordova will adopt best practices and innovative
approaches to get redevelopment right from the beginning.
With these actions, Rancho Cordova will employ a strategic, effective use of redevelopment and
complementary resources to achieve the vision it has expressed in its goals and plans to date.
While many recommendations are directed towards the redevelopment project area, these actions
will also benefit other locations and the City overall.
¸
Project Area Parcels
Project Area
Project Area Boundary
Streets 0 0.25 0.5 1
Miles
Community Redevelopment Agency of the City of Rancho Cordova I-4 Seifel Consulting Inc.
Redevelopment Strategic Plan November 2007
II. Revitalize Corridors
Revitalizing project area corridors is a key aspect of Rancho Cordova’s redevelopment program.
Successful revitalization will achieve numerous City and Agency goals:
Rancho Cordova has set forth a vision for Folsom Boulevard in the Folsom Boulevard Specific
Plan “to revitalize and transform this vital corridor into a more vibrant and successful Boulevard
with ‘pulse points’ of commercial activity with new residential and office mixed use spaces in
between.” The strategy acknowledges that Folsom Boulevard is struggling as a primarily retail
corridor, and its development patterns must shift for it to regain its vitality. Focusing on
development projects along Folsom Boulevard, particularly at pulse points, will result in quality
destinations for Rancho Cordova residents, employees and visitors, an economically healthier
corridor, and increased tax increment revenues over the life of the redevelopment project.
However, in order to effectively support new development, encourage rehabilitation and stimulate
private investment, Rancho Cordova must first develop an improved “foundation” by
coordinating internal resources, streamlining the development process, and establishing the
infrastructure and public amenities the revitalized Boulevard will need. This foundation is critical
for new development, rehabilitation activities and successful project area revitalization.
Foundation
Revitalization
These foundational actions should be undertaken during Year 1 of the Strategic Plan. With these
actions accomplished or underway, Rancho Cordova can facilitate development on critical sites
and respond to new opportunities quickly and prudently when they arise.
The ombudsperson will be the point person for driving projects forward and coordinating the
actions of the City and Agency, other public agencies and needed stakeholders—essentially, for
ensuring that opportunities do not fall through the cracks and that all parties are doing their part to
make the project a success. The responsibilities of the development ombudsperson are two-fold.
Particularly in the early years of the Strategy, this individual will have primary responsibility for
seeing “foundational” action items accomplished. For example, the ombudsperson will manage
interdepartmental coordination and project selection, as well as the effort to streamline the
entitlement and infrastructure provision processes.
The second major aspect of the ombudsperson’s work is to generate and guide key projects:
Rancho Cordova is a young city, and as such, is still building its internal capacity to carry out
development projects. Some operations in the development entitlement process, for instance, are
currently outsourced to Sacramento County and other jurisdictional entities.
Exhibit 1
Agencies and Departments Involved in the Entitlement Process
Rancho Cordova Redevelopment Strategic Plan
County of Sacramento
• Land Division & Site Improvement Review • Building Inspection
• Department of Transportation • Department of Water Resources
• County Sanitation District 1 • Technical Resources
As a first step, Rancho Cordova can provide developers with more information about the
development process. Rancho Cordova’s Planning Department currently offers a checklist that
indicates the various plans and documents that must be included in an application for
development. This checklist serves as a useful tool, but lacks information about the entitlement
process—for example, which pieces of the development plan are approved by which City
departments and/or outside agencies and the process by which development applications travel
before receiving the required permits.
Making the entitlement process simpler and more effective must begin in Year 1, but will be a
long-term effort undertaken by the interagency team. The interagency team must include
representatives from all entities involved in approving projects within Rancho Cordova—City
and County departments, water and sewer districts, gas and electricity providers, etc. The team
should first discuss what works and doesn’t work about the current process, and describe any
challenges faced by their organizations. Rancho Cordova staff will then evaluate the opportunities
for improvement in the process, recommend an “ideal” development process and work towards
that ideal. The City may ultimately decide that it should take on more of the development review
and approval process, rather than outsourcing to the County. Whatever the outcome, streamlining
the entitlement process cannot be accomplished without strong leadership and management from
City and Agency staff. The interdepartmental team discussed above will play a key role in
streamlining the entitlement process, and the development ombudsperson will be responsible for
keeping the process moving.
The interagency team will contain professionals available to assist development projects.
Individual team members will ensure that their departments and/or agencies respond to requests
and opportunities in a timely and cooperative fashion. They will also advise developers and other
staff and officials on matters within their areas of expertise. The ombudsperson will apprise team
members of potential projects, coordinate team member actions, and establish lines of
communication and protocol for assisting individual developments.
The Report to Council, adopted through the 2006 Redevelopment Plan adoption process,
describes a number of infrastructure deficiencies within the project area, including deficient street
and sidewalk conditions, circulation deficiencies, a preponderance of overhead utilities, and
inadequate sewage and wastewater capacity and other infrastructure. The poor appearance of
commercial corridors, particularly Folsom Boulevard, also deters new development and
investment. For all these reasons, revitalizing project area corridors will require E&ND take an
active role in ensuring that infrastructure improvement and beautification projects move forward.
Some improvements can be coordinated with the utility undergrounding and streetscape
improvements discussed below. The City may also undertake infrastructure improvements in
conjunction with specific development projects.
Underground Utilities
The undergrounding of overhead utilities is a key priority project. Over 70 percent of the parcels
within the project area have overhead utilities nearby.1 Overhead utilities cause safety hazards,
create visual clutter and increase utility maintenance costs.
Beautification improvement projects in the project area are difficult because overhead utilities
create a maze of poles and wires that visually and physically make it difficult to change the
landscape. Undergrounding utilities will help reduce safety hazards and beautify the commercial
corridors and neighborhoods.
These efforts are important to corridor revitalization. E&ND staff should support Planning and
Public Works in these efforts by pushing the projects forward and, when possible, the Agency
should contribute financially.
1
According to the Report to Council, adopted through the Redevelopment Plan process, May 2006.
To that end, projects should be evaluated based on a set of policy objectives and practical
considerations and weighed against other potential opportunities. This will provide transparency
in the decision-making process, guide staff and officials, and remove the risk that decisions are
made inconsistently. This transparency also helps developers interested in working with
Rancho Cordova understand how their project will be judged and tailor their
development accordingly.
The rationale for these four criteria is outlined in Exhibit 2. They are designed to help staff select
projects that are most critical for Rancho Cordova to pursue at this point in the life of its
redevelopment project. For instance, those that increase the taxable value of project area property
should be prioritized during this period because a value increase today will result in significantly
greater revenues over the life of the project area than a comparable increase ten years from now,
as explained in Exhibit 2.
• Alleviate Blight
• Alleviating adverse or “blighting” conditions is the fundamental aim of the redevelopment program.
Projects resulting in significant blight alleviation warrant greater consideration and support than those
that do not address these conditions as effectively. Blighting conditions prevalent along the corridors
include unsafe and unhealthy buildings, irregular parcelization, impeded accessibility, hazardous
waste and contamination, obsolete residential and commercial properties, low lease rates, high
vacancy rates, vacant and abandoned property, problem businesses, and a high crime rate.
• Generate Tax Increment
• Property tax increment is the main source of funding for redevelopment in California. It is calculated
based on the growth in property values between the year when a project area is established
(FY 2005/06 in Rancho Cordova) and the current year. New agencies receive tax increment for up to
45 years, and FY 2050/51 will be the last year of tax increment receipt in Rancho Cordova.
• As `a result, projects that add value to the property tax rolls in the early years will result in greater tax
increment—“priming the pump” for future redevelopment activities. For example, a single project
that increases the value of a property by $10 million in FY 2007/08 will result in $100,000 in annual
tax increment revenues. This project would generate more than $4 million in tax increment over the
remaining life of Rancho Cordova’s redevelopment plan.
• Projects undertaken by public or non-profit entities do not typically generate tax increment. When
these entities purchase property, the value of the property and any improvements are generally
removed from the property tax rolls.
• Achieve Rancho Cordova Goals
• Rancho Cordova has established a number of goals for the redevelopment project and the City.
Projects that meet these goals and objectives should be given priority over those that do not
correspond with the community’s vision for the City.
• Leverage Resources
• A project that requires relatively little Agency involvement to succeed and/or takes advantage of
major contributions from other sources will rank highly on this measure. Projects that require
significant resources, do not involve strong partners, or are otherwise “risky” undertakings (projects
for which success is not guaranteed, no matter how much public assistance is provided) will receive a
low score. This criteria is important in assessing the opportunity costs of a project. If resources are
dedicated to a time and money-intensive project, the Agency may have to forgo multiple other
projects that could have, as a whole, provided a “bigger bang for the buck.”
Each potential project would be evaluated against these criteria on a scale of 1 to 3, with 3 being
very high and 1 being little to no impact. Rankings for each factor will then be added, giving
projects an overall score to that can be used to prioritize projects. For example, Table 1
demonstrates how one project under consideration, a mixed-use, transit oriented development
(TOD) around the Mills Station light rail station, might be scored. Table 2 prioritizes all projects
currently under consideration along Folsom Boulevard using the recommended criteria.2
2
Projects identified by staff and consultants during March and April 2007.
Score
Criteria (High=3, Rationale
Low=1)
This prioritization method is not intended to be an exact science. During early stages of
evaluation staff will not necessarily know the precise amount of tax increment a project will
generate, exactly how much City time and funding it will require, etc. Rather, this is a tool that
the Agency can use to screen projects systematically and evaluate them fairly.
Evaluating the level and type of public funding for a project typically occurs later in the
development process when more detailed financial, programmatic and design information is
available. A basic recommendation regarding public participation in a private project is that the
Agency would not spend more funds on a project than the project will generate for the Agency
and City over time. Rancho Cordova should consider the potential property tax increment, sales
tax, and other local revenues resulting from a project and compare that to the costs incurred for
providing City services within a given timeframe.
Generally, the Agency should think of the difference between these benefits and costs as the
maximum amount it is willing to invest in the project. For certain projects, non-financial benefits
will warrant greater Agency participation, but the cost/benefit approach is a good rule of thumb to
follow for most projects seeking public support.
When determining just how this participation is structured, Rancho Cordova has a number of
options. The following Incentives Toolbox (Exhibit 3) contains techniques commonly used to
support new or substantial rehabilitation projects. These can be thought of as a set of tools
available to assist projects that further community and Agency objectives. Staff should determine
which tool or set of tools to use on a case-by-case basis in conjunction with project proponents.
• Predevelopment Support
• Help developers through the development approvals process by facilitating interdepartmental and
interagency cooperation.
• Infrastructure Assistance (Onsite and/or Offsite)
• Assist with and/or provide necessary public infrastructure, including traffic signals, street
reconfiguration or beautification, utilities, etc.
• Hazardous Materials Assessment and Abatement
• Assist with testing and abatement of hazardous materials and utilize Agency powers enabled by the
Polanco Act.
• Fee Deferral
• Allow for processing and impact fees to be deferred until the project is complete.
• Property Assembly and/or Conveyance
• Assistance with property assembly and/or conveyance. For example, land can be transferred to the
project proponent for market rate or reduced prices, depending on project need and benefits.
• Demolition Assistance
• Technical, legal and/or financial assistance for demolition.
• Relocation Assistance
• Technical, legal and/or financial assistance for permanent or temporary relocation.
• Gap Financing
• Provide low interest loans that make up the difference between what can be financed privately and
the cost to build the project (not all projects will be eligible for this type of assistance).
*Certain incentives trigger Prevailing Wage requirements. Staff and developers should be aware of this trade off and
structure incentives accordingly.
High
Catalyst Development
Project Opportunity
E&ND
Proactive Reactive
Actions: Low
Level of
Impact and
Assistance
Catalyst projects require proactive steps on the part of City and Agency staff. They typically have
high impact, but also usually involve a high level of staff involvement and assistance. Catalyst
projects tend to be undertaken on highly visible, blighted and underutilized sites, with those sites
redeveloped in line with City and Agency goals. These projects have a domino or ripple effect,
encouraging investment in other properties, and City and Agency’s involvement in these projects
sends the message that Rancho Cordova is serious about improvement. Seeing catalyst projects
through from start to finish requires proactive efforts on the part of City and Agency staff and
officials.
Alternatively, development opportunities may arise independently. Their impact may not be as
great, but they also do not require the same level of staff involvement and financial assistance.
The City and Agency must be able to respond quickly and wisely to such opportunities, evaluate
their need for public support and/or provide them with non-monetary assistance. In reality, most
projects will fall in the middle of the spectrum, with elements of both catalyst projects and
development opportunities.
Assessment
•Assess Opportunities and Constraints
Pre-Development
•Determine Team and
Project Specifics
Development &
Construction
•See Projects through to Completion
If these and other such questions cannot be answered satisfactorily, staff may recommend that the
project proponent further refine plans and return with a refined plan or they may simply decline to
be involved in the project. If staff’s initial assessment is that the project is beneficial and viable,
staff should investigate property status and move to the pre-development stage, where the need
for public support will be more thoroughly analyzed.
Catalytic Potential
Staff should consider whether a site or proposed development has the potential to catalyze other
development and improvements projects. Rancho Cordova should begin by focusing on
prominent sites that have long suffered from disinvestment or problems businesses, particularly
those within “pulse points” identified in the Folsom Boulevard Specific Plan.
Mills/Mather
Pulse Point
g
hp¤
JoAnn's Fabrics
¤
p
h
g g
h
¤
p
g
hp¤
Zinfandel Pulse Point
Sunrise Pulse Point
¸
h
g Potential Catalyst Sites
¤
p Light Rail Stations
Community Redevelopment Agency of the City of Rancho Cordova II-15 Seifel Consulting Inc.
Redevelopment Strategic Plan November 2007
Table 2
Criteria for Project Support
Rancho Cordova Redevelopment Strategic Plan
Achieve
Generate
Alleviate Rancho Leverage Total Score
Name Description Tax Potential?
Blight Cordova Resources (Max.=12)
Increment
Goals
Retail center with anchor tenant relocating
Joann's Fabrics and and adjacent vacant lot; could be linked to
Adjacent Lot Zinfandel Pulse Point redevelopment 3 3 3 3 12 Large
across Folsom Boulevard.
If not, staff will need to generate interest by marketing the site more aggressively. One effective
way to do this is by issuing a Request for Proposals (RFP) and sending it to potential
developers—those with a proven track record on similar redevelopment projects or with
important local knowledge of the site and City. A key benefit to the RFP process is that
Rancho Cordova can specify the type of project it would like to see developed. Potential
developers then know what type of development will be looked upon favorably and can decide
whether or not to respond.
In cases where the Agency issues an RFP, staff will generally begin by evaluating developer
submissions and interviewing teams with strong credentials and development proposals. Staff
should rank the teams interviewed based on the strength of their proposals and ability to see the
project through to completion. Staff will then begin negotiations with the highest ranked team to
hammer out details of the project and public financial support. Ideally, staff and the first-ranked
development team will be able to come to agreement on the proposed project and the rights and
responsibilities of public and private players. If not, staff should call off negotiations with that
team and move on to the second ranked team.
3
Prior to any major decision, an understanding must be reached with the existing property owner. If the property owner
is not interested in participating in the property’s redevelopment, the Agency may want to purchase the site or connect
the property owner directly to a developer.
4
For projects with significant public participation, the Agency may need to seek support from legal and real estate
consultants and employ legal tools like Exclusive Negotiation Agreements (ENAs), Owner Participation Agreements
(OPAs) and/or Development and Disposition Agreements (DDAs).
The Agency should compare a project’s potential financial benefit and cost to the City over a
certain timeframe, generally 20 to 25 years. The Agency should consider potential property tax
increment, sales tax, and other local revenues relative to the costs incurred for providing City
services. The difference between these benefits and costs can be considered the maximum amount
the City or Agency should invest in the project. Catalyst projects and those providing needed
public benefits will frequently require more in financial support than they return in the pure fiscal
sense. If sufficient non-financial benefits—blight reduction, ripple effects, community amenities,
housing, etc.—are part of the development package, the Agency will often choose to invest more
than a simple cost/benefit analysis would suggest.
Once Rancho Cordova has established an approximate amount of support it is willing to provide,
the form of that public assistance will be determined with the development team (see Exhibit 3:
Development Incentives Toolbox). For complex projects with significant public assistance, legal
counsel should prepare an agreement formalizing the rights and responsibilities of the public and
private parties.
The ability to rely on help from the development ombudsperson and the interdepartmental team
and the streamlined the development process will make development in the project area less time
consuming and cumbersome. Streamlining the development process, discussed above, is another
critical step that will benefit catalyst projects and other development along project area corridors.
In development, where time is money, this increased efficiency and assistance may be the
difference in a successful project and lost opportunity.
The Economic Development Strategic Plan deals more extensively with retail and business
outreach, attraction and retention, but a few key activities will be critical to revitalizing
commercial corridors. Over the next five years, Agency and City staff should:
Two types of BID mechanisms are commonly used in California. The first is a “Property-based
Business Improvement District” (PBID), an assessment on property owners. The second, a
“Business Improvement Area” (BIA), is an assessment on businesses, levied through an
additional charge on annual business licensing fees. PBIDs are often favored over BIAs,
primarily because assessments on property generally produce more revenue and are more stable
than assessments on business license fees.
Rancho Cordova has dedicated resources to identify potential BID boundaries and conduct a
feasibility assessment for a BID during FY 2007/08. BIDs are often most successful in small,
distinct retail districts where businesses and property owners can see the impact of their
investment of time and money. Without this, required votes are difficult to secure, and, if
established, BIDs may be less effective. However, while forming a Folsom Boulevard BID may
be challenging given its over four mile length and the physical layout of businesses along it, the
feasibility assessment presents an opportunity to speak with local merchants and property owners
about their needs and concerns, and connect them to each other.
FIPs and TIPs are generally structured as matching grants to ensure that property owners or
tenants are serious about the improvement project and personally invested in seeing them
succeed. Typical grants may range from $10,000 to $50,000, for a total project cost of $20,000 to
$100,000. Rancho Cordova should be aware that FIPs and TIPs generally require a substantial
investment of staff time and energy. Before launching such a program, staff should conduct
sufficient outreach to ensure that interest and a willingness to invest exists among property
owners and/or merchants. Seifel also recommends that staff begin by targeting a specific, visible
set of properties for a first round of improvements; success with these properties will advertise
the program and demonstrate to other potential grantees that their investment of time and money
will be worthwhile. Rancho Cordova may also want to contract with design professionals to
advise grantees and design the improvements, as this will streamline the improvement process
and ensure that the community’s aesthetic standards are upheld.
5
Larger rehabilitation efforts can qualify for assistance under programs and incentives available for substantial
rehabilitation.
*While Seifel does not recommend focusing on Façade and/or Tenant Improvement Programs during the first three
years of the Strategic Plan, a first round of improvements or “pilot” project during this time period could prove
useful in establishing interest among other merchants and developing program guidelines.
In order to accomplish the action items outlined in the Revitalize Corridors initiative area, Seifel
recommends an additional staff person within the Economic Development Division in early
FY 2007/08. This individual’s primary responsibility will be as the Development Ombudsperson,
with support available to the Economic Development Manager to conduct outreach to business
and property owners. E&ND will also need to draw on the staff resources of other departments
and, at times, outside consultants to accomplish the Revitalize Corridor action items.
Rancho Cordova recognizes that community involvement and education are key facets of GSN.
The actions outlined in this section thus have two underlying objectives:
• Improve Neighborhood Conditions by alleviating blight and removing adverse physical and
economic conditions, thereby increasing property values and encouraging reinvestment.
• Build Neighborhood Capacity by empowering residents, identifying local resources, and
enhancing neighborhood leadership and organizational capacity.
This section recommends actions to support GSN, with a focus on how redevelopment actions
can complement E&ND’s work with Blight Busters and other code enforcement efforts and the
CDBG-funded Incentives Program. These actions involve four key steps:
Rancho Cordova plans to add a Community Services Liaison to E&ND for FY 2007/08. A core
responsibility of this staff person should be working with project area neighborhood associations
and residents to accomplish the work outlined in this section.
Once staff has implemented the program in White Rock, it can expand the process to other
neighborhoods within the CDBG target area and project area, altering the process as appropriate
based on lessons learned in White Rock. The selection of next neighborhood could be done
through an application process or friendly contest, where neighborhoods compete for their turn at
focused attention, resources and improvement projects.
Staff and residents should then prioritize a limited number of projects (5 to 10) and establish
concrete outcomes and a timeline for accomplishing those projects. Focusing on a limited number
of projects has two benefits. First, it makes residents communicate the most pressing concerns
facing their neighborhood. Secondly, it sets realistic expectations for the City and residents.
Rather than attempt to do it all and end up with projects half done, concrete improvement projects
can be planned, funded and completed. Staff should encourage residents to prioritize a mix of
“quick-fixes” and ambitious, long range projects. This combination allows residents to see results
and experience success in the short term, while simultaneously embarking upon longer term
projects that require greater effort, coordination and funding.
Ongoing resident involvement will be key to achieving projects that meet community need and
preferences. It also furthers the simultaneous effort to empower residents and foster leadership.
Depending on the project, residents may provide input into implementation measures that meet
neighborhood needs, volunteer hours, advice on design and development plans, and the like.
Connecting residents to each other and to the City and other community resources is key to
strengthening neighborhoods. Many times, resources and support already exist, but residents do
not know how to access them. Neighborhood associations often excel at providing information
and connections through events that foster community pride and resident interaction, forums with
City staff and officials, newsletters, websites and the like.
6
Two existing associations, the Lincoln Village and Sunriver Neighborhood Associations, have significant overlap
with the redevelopment project area, according to information on the City of Rancho Cordova’s Neighborhood
Associations Directory (www.cityofranchocordova.org). When working with White Rock residents on Neighborhood
Improvement Projects, staff should encourage residents to form a White Rock Neighborhood Association.
Staff should begin by establishing a solid foundation for housing programs, and particularly for
redevelopment involvement in them. These programs will focus on homeownership and meeting
City goals and Agency obligations, supporting rehabilitation of existing housing stock and new,
diverse housing options.
The Agency will need to keep up to date on changes to the CRL. Staff should consider
membership with the California Redevelopment Association (CRA), attend annual trainings or
seek other resources to keep the Agency current on legislative changes.
2. Leverage Resources
The Sacramento Housing and Redevelopment Agency (SHRA) has been developing housing for
over thirty years and is responsible for local public housing and administration of the Department
of Housing and Urban Development’s voucher program. Its portfolio of experience, land holdings
and funding can be leveraged to develop projects that support both Agency and SHRA goals,
potentially a tremendous asset for the Agency. Whenever possible, E&ND should pursue
opportunities with SHRA, building a strong relationship with SHRA in the process.
E&ND should also actively pursue other funding sources as part of its policy to broaden housing
choices. State and federal moneys from CDBG, Proposition 1C and state tax credit programs,
among many other programs, should be used to their maximum extent possible for all housing
projects.
7
These needs and the City’s housing goals are laid out in Rancho Cordova’s current Housing Element. Specifically
within the Housing Element, the City’s housing needs by income level and Regional Housing Needs Allocation
(RHNA) goals are identified. The 2007/08 CDBG Action Plan also presents a number of housing objectives, which
the Agency can use to focus housing efforts and leverage funding during the first year of the Strategic Plan.
8
See Appendix I for CRL reporting and compliance due dates.
Exhibit 5
California Community Redevelopment Law Housing Production and
Expenditures Requirements
Rancho Cordova Redevelopment Strategic Plan
Promoting homeownership could be most effectively accomplished by attacking both sides of the
housing equation, that is, increasing the ability of residents to purchase for for-sale housing units
affordable to a range of income levels while simultaneously increasing the number of those
housing units. Such efforts could include programs that assist potential homeowners financially
and policies and programs aimed to subsidize housing rehabilitation and new development.
• Down payment assistance—Support first time homebuyers purchasing market rate units with
a low interest loan that increases their down payment contribution and decrease monthly
mortgage payments.
• First time Homebuyer Program—Allow qualified first time homebuyers to purchase
designated below market rate (BMR) housing units, whose resale price is restricted to
maintain long-term affordability.
• Gap assistance—Provide loans for closing costs or down payments for first time homebuyers
purchasing BMR units.
• Land Trust—Establish a land trust whereby the City or a non-profit entity owns the land and
first time homebuyers purchase housing units. The resale price of the housing units will be
restricted to maintain their long-term affordability.
• Individual Development Accounts—Promote saving for homeownership by providing
matching funds to qualified households.
Regardless of the specific type of assistance offered, the overarching goal of a first time
homebuyers program is to provide opportunities for moderate and lower income persons or
households to purchase a first home.9
9
Use of Housing Fund monies will require that affordability covenants meet CRL requirements. See Exhibit 5.
If rehabilitated, some multifamily housing developments could also provide new homeownership
opportunities.10 The blight analysis conducted as part of the Redevelopment Plan adoption
process and current Blight Buster efforts have revealed properties within the redevelopment
project area that require substantial assistance to meet current code standards. Property owners
could rehabilitate and sell these properties as condominium developments affordable to current
renters or interested buyers.
The Agency is directly supporting efforts to rehabilitate and offer homeownership opportunities
through a “condo conversion” program as part of the zoning code revision underway. The City
will adopt an ordinance setting clear guidelines for property owners who wish to convert existing
rental housing. Such an ordinance may require that property owners contribute to a fund for
affordable housing, limit the number of units that may be converted in a year and/or require that
certain underwriting standards are adhered to in order to protect potential buyers. The Agency
may also provide funding to assist property owners in rehabilitation, although this will trigger
relocation, replacement and other obligations.11 Once the ordinance has been adopted, staff can
leverage Blight Buster efforts and the Redevelopment Plan’s building conditions survey to
conduct targeted outreach efforts.
Some existing housing units are not suitable for rehabilitation and conversion to condominiums.
Other rehabilitation efforts are discussed below under Housing Rehabilitation.
10
These properties would have to satisfy existing open space, parking and other requirements for ownership housing.
11
Agency financial assistance for such rehabilitation would trigger CRL affordability and relocation requirements (see
Exhibit 5), as well as prevailing wage requirements.
The Agency should specifically prioritize and assist developments that incorporate workforce
and/or affordable housing to meet Agency housing requirements and the City’s housing
obligations and expand options for the local workforce. The successful development of affordable
housing involves overcoming several financial and procedural challenges. In addition to financial
and staff support, the Agency should also provide affordable housing developers with technical
assistance, preparing or reviewing applications for federal and state tax credits and identifying
other funding sources.
12
The vision for Folsom Boulevard, as presented in the Folsom Boulevard Specific Plan.
13
Market rate residential units are not eligible for funding through the Housing Fund, but may be assisted with other
redevelopment funds.
The Agency should rely on Blight Buster efforts and the Redevelopment Plan’s building
conditions survey to identify and target properties in need of substantial rehabilitation.
Agency assistance will augment existing City efforts to rehabilitate existing housing stock. Staff
will determine if Agency assistance should expand the City’s Emergency Loan Repair Program,
increasing the amount of funding available to each home or broadening the program to include
non-emergency repairs, or develop a complementary program.15
14
Use of Housing Fund will require that the improvements meet the definition of “substantial rehabilitation,” as
defined by the CRL. Additionally, the housing unit must be owned or occupied by a low to moderate-income
household, and a deed restriction is recorded against the unit.
15
The City already has an Emergency Repair Loan Program in place for homeowners whose household income is less
than 50 percent of the area median income. Eligible repairs under this program include those that correct health or
safety hazards, including water heater replacement, repair to plumbing or electrical systems, roof repair, and others,
not to exceed $5,000 for mobile homes and $7,500 for single family homes.
Redevelopment resources will be limited during the Agency’s early years, and as such, the
Agency should invest primarily in projects that generate tax increment, so as to have ample
funding down the road for the full range of community redevelopment projects Rancho Cordova
hopes to undertake. Publicly and non-profit owned community facilities do not pay property taxes
and therefore do not directly generate tax increment. The Agency should thus be opportunistic
and savvy about undertaking projects that provide community amenities and facilities within the
project area. This Strategic Implementation Initiative outlines how redevelopment tools can be
used to achieve that vision and foster community pride and identity, without undermining the
Agency’s long–term financial position.
As previously discussed, investment in projects that generate tax increment should be a priority
during the first Five Year Strategic Plan period, as Rancho Cordova must “prime the pump” for
future redevelopment activities and expend its limited resources wisely. Laying the foundation in
this case therefore involves setting expectations about where Agency time and funding should be
dedicated: community amenity projects able to generate tax increment, leverage outside resources
and address City goals. For example, community amenities within a catalyst project (i.e., public
plaza adjacent to a mixed-use development along Folsom Boulevard) or projects that are
supported by another public entity (i.e., White Rock Community Park renovation) should receive
more consideration. As the project area matures and tax increment grows, the Agency will have
greater resources and latitude to invest in community facilities and other public amenities,
without jeopardizing the fiscal strength of the project area.
As part of a private development project, these community amenities are able to meet
Rancho Cordova’s desire for better places and facilities, without depriving the Agency of needed
tax increment resources. While some public support may be necessary to achieve amenity and
catalyst projects more generally, leveraging private resources to make public investments go
much farther than they could independently.
During the next five years, the Agency should support the Planning Department in this visioning
process, especially as it relates to understanding the outcomes of the downtown planning efforts
and their implications for future action by the City and/or Agency. To start, Agency staff should
attend meetings to keep abreast of recommended policies and decisions made as well as increase
stakeholder awareness about how the development of Rancho Cordova’s downtown will help
promote redevelopment goals and vice versa.
The next step in the Convention Center project is to assess the market for such an undertaking
(demand, as well as the potential costs and revenues) and better define the characteristics of a
successful project in Rancho Cordova. This assessment should be completed within the first year
of the Strategic Plan as it will have important implications for future analyses of catalytic
opportunities.
Figure 3
Convention District Overlay
Rancho Cordova Redevelopment Strategic Plan
For example, E&ND staff is already working with Fire Department official to rebuild Fire Station
61. The new Fire Station will enhance fire services within the community, and it leverages the
support the Agency is already obligated to provide, such as capital projects undertaken by
Sacramento Metropolitan Fire District (SMFD).16 Another similar opportunity is renovations to
White Rock Community Park. In the near term, E&ND should consider itself a stakeholder in
these types of community projects, contributing knowledge and, when necessary and available,
limited resources to ensure community needs are met.
16
As part of the Redevelopment Plan adoption process, the Agency and SMFD signed a memorandum of
understanding and agreement to ensure that the establishment of the project area benefit both parties. The Agreement
requires the Agency to annually contribute funds (“Capital Improvement Contribution”) for joint capital projects that
benefit the Project Area, including the replacement of Station 61.
This Strategic Plan is a guide for how to strategically invest in projects that maximize long term
benefits and create the programs and systems Rancho Cordova needs to take full advantage of
redevelopment. The recommendations in this guide are based on best practices and include
innovative approaches to economic and neighborhood development. Key recommendations for
action items, phasing and staffing are summarized below by strategic implementation initiative.
Revitalize Corridors
Over the next five years, Rancho Cordova’s primary approach to corridor revitalization will
involve facilitating private sector investment along its key corridor, Folsom Boulevard. In order
to attract this investment, E&ND staff will need to streamline processes for new development,
assist key projects, particularly at catalyst sites, and provide support to business and property
owners. Projects that generate tax increment and leveraging partnerships and outside funding
sources should be prioritized, especially during these early years when redevelopment financing
is limited. Investments in projects that increase property values and tax revenues will “prime the
pump” for future redevelopment.
Foundational action items like creating a development ombudsperson, enhancing internal and
interagency coordination and addressing physical infrastructure needs along Folsom Boulevard
should be the E&ND’s first priorities. Once these are in place, staff can focus on promoting new
development and address the needs of business and property owners. Primary staff responsibility
should be within E&ND’s Economic Development Division, including the new development
ombudsperson position.
Strengthen Neighborhoods
Redevelopment in Rancho Cordova’s older neighborhoods will employ a two-fold approach:
improving neighborhood conditions and building neighborhood capacity. Improving physical
conditions is critical to alleviating blight and adverse conditions, thereby encouraging
reinvestment and increasing property values. In Rancho Cordova, the community will be involved
in prioritizing, designing and implementing improvement projects. Physical improvement
projects may include the installation of traffic calming mechanisms, planting street trees, utility
undergrounding, home improvement assistance, and/or improved recreational opportunities, as
prioritized by neighborhood residents. By involving residents in decision-making and
implementation, Rancho Cordova will build capacity among local leaders and associations. It
should also support neighborhood associations, events where residents can connect with each
other and with City staff, and identify and strengthen local resources.
Rancho Cordova must begin by establishing a solid foundation for housing activities and
redevelopment involvement in them. This involves developing the systems and programs needed
to meet housing goals and obligations and enhancing strategic partnerships with non-profit
housing developers, SHRA and potential funding sources. With this foundation in place, E&ND
staff will be able to focus on creating new housing and enhancing the existing housing stock.
Primary staff responsibility should be within E&ND’s Housing Division, by the Housing Services
Administrator and CDBG and Grants Specialist.
Much of the foundation for this initiative has already been laid through planning efforts like the
Folsom Boulevard Specific Plan. The next step is to focus on catalyst projects and ensure that
they provide the places and amenities that Rancho Cordova desires. Primary staff responsibility
should be within E&ND’s Economic Development Division, with significant assistance from
Housing, Neighborhood Services and Planning staff.
With these steps, Rancho Cordova will effectively and strategically employ redevelopment
resources to revitalize the project area and City.
Strongly
Required Recommended Deadline Notes
Reporting Requirements
Annual Report and Audit* The Annual Report and Audit is due 6 months after the end of the Fiscal Year. It should be sent to the State Controller's Office,
Housing and Community Development (Report on Housing Activities), the legislative body, and anyone who requests it in
X 31-Dec writing.
Compliance Audit X 31-Dec Audit must look for compliance with relevant Redevelopment Law, not simply review fiscal health and financial practices.
Fiscal Statement X 31-Dec
Report on Housing Activities X 31-Dec
Description of Blight Elimination X 31-Dec
Defaulted Agency-made Loans X (if applicable) 31-Dec Required to submit list of Agency-made loans of at least $50,000.
Property Inventory X 31-Dec
Statement of Indebtedness (SOI) X 1-Oct
Statement of Economic Interest X 1-Apr
Implementation Plan and Midterm Review X see notes Implementation Plans must be done every five years, with a midterm review somewhere during the 3rd year of the IP.
Strongly
Required Recommended Deadline Notes
Legal Documents and Tracking
Redevelopment Plans and Amendments X see notes Update when new and/or amended.
Bylaws X see notes Update when new and/or amended.
Conflict of Interest Reports economic interest of key officials and staff. Members of the legislative body have a conflict of interest and cannot
vote if they own property within 500 feet of a single project or a project area. It is important to track conflicts to ensure
quorum / votes on an issue. An agency must follow the procedure proscribed by the "rule of necessity" in there are not enough
people eligible for a vote (a random selection process for adding people back into the vote). This is technically a legislator's
responsibility, but staff and attorneys should try to notify legislators and/or give them warning that they should check their
X eligibility. See Map recommendation for tracking potential conflicts.
Codes X see notes Update when new and/or amended.
Statement of Economic Interest Forms X 1-Apr These must be completed each year by April 1st or as officials/staff members and/or land holdings change.
Map Maintaining a map of land owned by legislators with 500-foot radius helps staff and officials keep track of where officials
X see notes must recuse themselves.
Relocation Guidelines Must be updated as necessary to remain AT LEAST as rigorous as California's guidelines. If they were originally based on
X see notes California's guidelines, they should be updated to reflect changes in those guidelines.
Designated Newspaper of General Circulation X n/a Not required, but best practice is to have one or more designated for noticing.
Roster of Boardmembers This should be updated as board members change and the California Secretary of State must be sent an up to date version of
X see notes this roster.
Negotiated Pass Through Agreements X (if applicable) see notes Update if/when agreements are amended.
List of Key Ordinances/Resolutions X see notes Update as new ordinances/resolutions are passed.
Summary - Time and Fiscal Limits X see notes Update if/when limits change. Limits can be changed by the Legislative Body and/or State.
Summary - Pass Through Agreements Update when new payments come into being and/or old ones are amended. Especially useful for project areas with negotiated
X see notes pass through agreements or a mix of statutory and negotiated ones.
Strongly
Required Recommended Deadline Notes
Financial Documents and Tracking
Record Maintenance
Remittance Advice from County X n/a
Certificates of Assessed Value from County X n/a
Official Documentation of Base Assessed Value X n/a
List of Revenue Restrictions Revenue restrictions are proscribed in the CRL, but can also be established by Project Area, bond issuance and/or project-
X n/a specific agreements.
Financial Tracking
Annual Assessed Value by Component X n/a
Secured X n/a
Unsecured X n/a
State Board X n/a
Supplemental X n/a
Other X n/a
Annual TI received X n/a
by component X n/a
Secured X n/a
Unsecured X n/a
State Board X n/a
Supplemental X n/a
Other (Interest, Unitary Revenue) X n/a
by destination X n/a
Non-housing X n/a
Housing X n/a
County Administration fee X n/a
ERAF (if any) paid X n/a
Pass Through Payments (by entity) X n/a
2% Inflation Allocation Aka. Section 33676 allocation or payments. These are not technically tax increment revenues. Generally found in project
X n/a areas adopted from the mid-1980s through 1993 and thus may not be applicable.