CDC - 2009-20 - Five Year Implementation Plan for Redevelopment Project Area No. 1 and 2• 0
RESOLUTION NO. 2009-20
A RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION APPROVING THE PROPOSED FISCAL YEAR 2009
THROUGH FISCAL YEAR 2013 FIVE-YEAR IMPLEMENTATION PLAN
FOR THE ROSEMEAD REDEVELOPMENT PROJECT AREA NO.1
AND THE ROSEMEAD REDEVELOPMENT PROJECT AREA NO. 2
WHEREAS, the Rosemead Community Development Commission (the
"Commission") is a duly constituted redevelopment agency under the laws of the State
of California; specifically, the California Community Redevelopment Law (CCRL; Health
and Safety Code, Section 33000, et seq.), and the Commission is responsible for the
administration and implementation of redevelopment activities within the City of
Rosemead (the "City"); and
WHEREAS, the Commission established the Redevelopment Project Area No. 1
and the Redevelopment Project Area No. 2 upon a determination of blighting condition
in the City of Rosemead; and
WHEREAS, by its Ordinance no. 871, adopted February 10, 2009, the City
Council adopted merger amendment to the Redevelopment Plans for the Rosemead
Redevelopment Project Area No. 1 and the Rosemead Redevelopment Project Area
No. 2
WHEREAS, State Law requires every Redevelopment Agency to approve an
Implementation Plan outlining proposed activities for a five year period; and
WHEREAS, notice of the public hearing to review the Implementation Plan has
been published pursuant to Section 6063 of the Government Code and posted in at
least four permanent places with each project area for a period of at least three weeks;
and
WHEREAS, on this day the Commission held a public hearing on the proposed
Five-Year Implementation Plan for the period of July 1, 2009 - June 30, 2014.
NOW, THEREFORE, BE IT RESOLVED by the Rosemead Community Development
Commission as follows:
Section 1. The Commission hereby approves the FY 2009 through FY 2013
Five-Year Implementation Plan attached to and incorporated as part of this Resolution.
Section 2. The Secretary shall certify to the passage and adoption of this
Resolution, whereupon it shall take immediate effect and be in force.
PASSED, ADOPTED AND APPROVED this 25TH day of August 2009.
Margaret 91ark, Chairman
Attest:
Gloria Molleda, Secretary
Approved as to Form:
By:
Joe Me
Burke, Williams & Sorensen, LLP
Legal Counsel
•
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
0
I, Gloria Molleda, Commission Secretary of the City of Rosemead, do hereby certify that the
foregoing Resolution No. 2009.20 being:
A RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
APPROVING THE PROPOSED FISCAL YEAR 2009 THROUGH FISCAL YEAR 2013
FIVE-YEAR IMPLEMENTATION PLAN FOR THE ROSEMEAD REDEVELOPMENT
PROJECT AREA NO.1 AND THE ROSEMEAD REDEVELOPMENT PROJECT AREA
NO.2
was duly and regularly approved and adopted by the Rosemead Community Development
Commission on the 25th of August, 2009, by the following vote to wit:
Yes: Armenta, Low, Ly
No: Taylor
Abstain: Clark
Absent: None
Gloria Molleda
Commission Secretary
•
•
ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
STAFF REPORT
TO: THE HONORABLE CHAIRMAN AND COMMISSION MEMBERS
FROM: JEFF ALLRED, EXECUTIVE DIRECTOR
DATE: AUGUST 25, 2009 U N V
SUBJECT: COMMUNITY DEVELOPMENT COMMISSION FIVE-YEAR IMPLEMENTATION
PLAN
SUMMARY
State law requires all redevelopment agencies to adopt an Implementation Plan (IP) every five
years. An IP is designed to address activities within redevelopment project areas including
goals, projects, and programs to eliminate blight and to encourage economic vitality and the
development of affordable housing.
At the August 11, 2009 Community Development Commission meeting, the Commission was
presented with the FY 2009-2013 Five-Year Implementation Plan (IP) for consideration. The
August 11, 2009 staff report, Resolution No. 2009-20, and the Five-Year Implementation Plan
have been attached to this report for the Commissions use (Attachment A, B, and C
respectively). During that discussion, the Commission requested that staff provide additional
background information regarding the blight findings included in the IP.
Attached for the Commission's review, is a Unified Report (Attachment D) that was compiled for
the project area merger which was completed in February 2009. The Unified Report, among
other things, identified significant economic and physical blight in both project areas. This is
supported in Section 5 of the Report and in Appendix D which is a parcel by parcel blight
threshold matrix. The types of "blight indicators" are defined by Redevelopment Law and
include building deterioration, bars on windows/security fencing, poor site layout, graffiti,
boarded up windows and doors, building and safety code violations, fire hazards, inadequate
paint and weatherization protections, inoperable vehicles, etc. Each parcel was assessed in a
blight indicator test and given a weighted point value. While the findings indicate that significant
blight remains in the project areas, the varying degrees of the existence of blight is not
necessarily an indication of severely run-down or "slum-like" conditions.
Staff Recommendation
Staff recommends that the Community Development Commission adopt Resolution 2009-20
approving the FY 2009-2013 Five-Year Implementation Plan.
ANALYSIS
During the August 11, 2009 Community Development Commission meeting, the Commission
had several questions and concerns regarding the term "blight" and its existence in the project
areas.
ITEM NO.
APPROVED FOR CITY COUNCIL AGENDA:
• •
Community Development Commission
August 25, 2009
Page 2 of 3
If the Commission may recall, it adopted Ordinance No. 871 merging Project Area No. 1 and 2
on February 10, 2009. As part of the merger process, the Commission had to show that
significant blight remained in at least one (1) of the areas and be documented in a Unified
Report. Overall, the Unified Report documents that of the 1,387 parcels in the two (2) project
areas, 1,197 (86%) were found to have at least one condition of physical blight, and 241/6 were
found to have significant physical blight. Specific types of blight that were found in the
Commission's project areas include: building deterioration, bars on windows/security fencing,
poor site layout and inadequate ingress/egress, graffiti, boarded up buildings, fire hazards,
irregular parcel shapes and sizes, converted garages, unsafe stairs and walkways, inadequate
paint and weather protection, unpermitted construction, inoperable vehicles, and many other
conditions. Conditions are worse in Project Area No. 1, but significant blight remains in both
areas.
Section 33030-33039 of the California Health and Safety Code (Redevelopment Law) defines
and describes the physical and economic conditions that cause blight (see Attachment E).
While these conditions appear to be clearly defined, their practical application is subjective.
Therefore, as part of the project area merger process, the City's consultant created a blight
indicator matrix to test each parcel in both project areas for blight. The matrix can be found in
the Unified Report, Appendix D which has been attached to this report. Each of the 40
indicators are described and explained in the matrix in addition to their relation to
Redevelopment Law. In addition, each indicator was given a weighted value (by points)
depending upon its severity. For example, deteriorating exterior support walls, garage
conversions, and functional obsolescence were weighted more than bars on windows or
inadequate loading/docking or the presence of inoperable vehicles.
Once each parcel was subjected to the blight indicator test, they were given a weighted point
value. The blight determination was then made based upon that value. For example, if a
property were to have received at least 20 points, it was deemed blighted. On the other hand, if
a parcel suffered from chipped and peeling paint or other issues that did not exceed the 20 point
threshold, it was not deemed blighted.
It is important to realize that while the findings of the blight study showed that there is significant
blight remaining in the project areas, the varying degree of how blight is determined is not
always an indicator that the City is in "slum-like" conditions. The presence of blight, regardless
of its severity, is required to show the continued need for the redevelopment agency and its
activities.
The proposed IP meets all legal requirements, and that it sufficiently details current Commission
polices. The IP represents an accurate description of the programs intended to be undertaken
by the Commission over the next five (5) years. The IP establishes a nexus between the
Commission's goals and objectives, programs activities, and the purpose of redevelopment
which is to eliminate blight and to develop, preserve and rehabilitate affordable housing.
It is not the intent of the IP to restrict Commission activities as they relate to the goals and
objectives, programs, and expenditures outlined herein, since conditions, values, expectations,
resources, and the needs of the community may change from time to time.
• •
Community Development Commission
August 25, 2009
Page 3 of 3
LEGAL REVIEW
The attached Resolution has been reviewed and approved by the City Attorney.
ENVIRONMENTAL REVIEW
The FY 2009-2013 Implementation Plan is exempt from the California Environmental Quality Act
(CEQA) pursuant to Health & Safety Code section 33490(a)(1)(B). However, each individual
project, program, or expenditure discussed in the Implementation Plan will be considered a
"project" and the Commission will perform the appropriate level of CEQA review at the time
each project is before the Commission for consideration.
PUBLIC NOTICE PROCESS
This item has been noticed according to the California Health and Safety Code Section 33490.
Prepared by:
0
Michelle G. Ramirez
Economic Development Administrator
Su
Development Director
Attachment A:
August 11, 2009 Staff Report
Attachment B:
Resolution 2009-20
Attachment C:
Five Year Implementation Plan
Attachment D:
Unified Report
Attachment E:
Health and Safety Code Section 33030-33039
•
ATTACHMENT A
•
u
ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
STAFF REPORT
TO: -THE HONORABLE CHAIRMAN AND COMMISSION MEMBERS
FROM: JEFF ALLRED, EXECUTIVE DIRECTO
DATE: AUGUST 11, 2009
SUBJECT: COMMUNITY DEVELOPMENT COMMISSION FIVE-YEAR
IMPLEMENTATION PLAN
SUMMARY
Redevelopment Law requires that all redevelopment agencies adopt an Implementation
Plan (IP) every five years. An IP is designed to address activities within project areas
and includes project goals, activities (including affordable housing), and blight
elimination. In addition to adopting the IP, redevelopment law also requires that at least
once during the five-year period, a public hearing on the progress of the IP be held.
The Rosemead Community Development Commission last approved its' Five-Year
Implementation Plan in July 2005.
Staff Recommendation
.Staff recommends that the Community Development Commission conduct a public
hearing, take public testimony, and adopt Resolution 2009-20 approving the FY 2009-
2013 Five-Year Implementation Plan.
ANALYSIS
The purpose of a Five Year Implementation Plan is to draw a clear connection between
the agency's projects and the requirement under Redevelopment Law to eliminate
blight, and to address affordable housing.
The Rosemead Community Development Commission's FY 2009-2013 Five-Year
Implementation Plan includes programs and expenditures of the Commission and
provides an explanation of how these goals, objectives, programs, and expenditures will
eliminate blight within the project areas. The IP also describes the programs and
projects the Commission will undertake to fulfill its various affordable housing
obligations as defined by redevelopment law.
The CDC's goals will be to continue to improve the physical appearance and strengthen
the economic environment and enhance the community with safe, decent, and
affordable housing, supported by recreational, educational, and cultural opportunities.
ITEM NO.
APPROVED FOR CITY COUNCIL AGENDA:
• •
Community Development Commission
August 11, 2009
Pape 2 of 3
The majority of the projects and activities to be undertaken by the CDC have been
developed to meet some of the following keys goals:
• Promoted the economic revitalization of the commercial corridors in the Project
Areas
• Provide improved park facilities, public facilities and street improvements in the
Project Areas
• Provide an updated General Plan and Zoning Ordinance according to State law
• Promote affordable housing programs throughout the City
• Contribute to the improvement of the National Pollutant Discharge Elimination
System (NPDES)
To achieve these goals the IP purposes to undertake the following physical blight
elimination and economic revitalization programs:
• Design and construct needed public improvements (median upgrades, street tree
planting, street light projects, improved street signage, and other Public Works
improvement projects)
• Promote the revitalization and appropriate economic development within the
Project Areas
• Create housing opportunities for low- and moderate-income residents (Garvey
Senior Housing, First Time Homebuyer program, Owner-Occupied Rehabilitation
Program)
Staff believes that the IP meets all legal requirements, and that it sufficiently details
current Commission polices. The IP represents an accurate description of the programs
intended to be undertaken by the Commission over the next five (5) years. The IP
establishes a nexus between the Commission's goals and objectives, programs
activities, and the purpose of redevelopment which is to eliminate blight and to develop,
preserve and rehabilitate affordable housing.
It is not the intent of the IP to restrict Commission activities as they relate to the goals
and objectives, programs, and expenditures outlined herein, since conditions, values,
expectations, resources, and the needs of the community may change from time to
time.
LEGAL REVIEW
The attached Resolution has been reviewed and approved by the City Attorney.
ENVIRONMENTAL REVIEW
The FY 2009-2013 Implementation Plan is exempt from the California Environmental
Quality Act (CEQA) pursuant to Health & Safety Code section 33490(a)(1)(B).
However, each individual project, program, or expenditure discussed in the
Implementation Plan will be considered a"project" and the Commission will perform the
•
Community Development Commission
August 11, 2009
Paqe 3 of 3
appropriate level of CEQA review at the time each project is before the Commission for
consideration.
PUBLIC NOTICE PROCESS
This item has been noticed according to the California Health and Safety Code Section
33490.
Prepare by Mi he e G. Ramirez
Economic Development Administrator
unity Development Director
Attachment A: Resolution 2009-20
Attachment B: Five Year Implementation Plan
• •
ATTACHMENT B
• •
ATTACHMENT C
•
C
ROSEMEAD
COMMUNITY DEVELOPMENT COMMISSION
Five Year Implementation Plan
(FY 2009-10 to 2013-14)
E
ADOPTED:
• •
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
Reserved
Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY 2013-14 Five Year Implementation Plan
TABLE OF CONTENTS
1. INTRODUCTION
1
A. Organization
1
B. Requirements
2
• AB 1290
2
• AB 637
3
• SB 701
4
C. Project Area Background
4
• History of Commission
4
Project Area No. 1
5
Project Area No. 2
5
• Rosemead Housing Development Corporation
5
2. FIVE YEAR PLAN FOR THE ELIMINATION OF BLIGHT
7
A.
Background
7
• Commission's Goals
7
• Commission's Objectives
8
B.
Blight in the Project Areas
8
C.
Five Year Redevelopment Plan
11
• Redevelopment and Economic Redevelopment Activities
11
• Capital Improvements
11
• Circulation and Transportation Improvements
12
• Community Beautification and Visual Blight Removal
12
• Housing Component
12
D.
How the Commission's Proposed Goals, Objectives, Activities,
and Expenditures will Eliminate Blighting Conditions
13
E.
Five Year Financial Plan
14
• Tax Increment Revenues Available for Non-Housing Projects and
Activities
16
• Other-Commission and Non-Commission Revenues
16
F.
Five Year Expenditures
16
3. HOUSING COMPONENT 16
A. Requirements 17
• Commission's Statutory Affordable Housing Objectives 17
• Policy Declaration Regarding Targeting of Monies from the Housing
Fund according to Income Need 17
B. Replacement Housing 19
Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY 2013-14 Five Year Implementation Plan
C. Housing Production Requirements 19
• Law Restrictions on the Use of the Housing Funds 20
• Commission's Housing Activities/Use of Monies in the Housing Fund 21
• Housing Funds Deposits during the Implementation Plan Period 22
D. Housing Production Plan 22
E. Plan for affordable Housing 23
• Expenditure of Housing Funds, FY 2009-10 to FY 2013-14 24
4. PLAN ADMINISTRATION
24
• Implementation Plan Review
24
• Implementation Plan Amendment
24
• Financial Commitments Subject to Available Funds
24
• Monitoring of Affordable Housing
25
• Prevailing Wage Issues
25
• Redevelopment Plans/Conflicts
25
TABLES
1
Project Area Adoption Dates
4
2
Projected Revenues and Expenditures
15
3
Regional Housing Need Allocation
18
4
Regional Housing Need Allocations per SCAG
21
5
Housing Production and Affordable Obligation
23
Rosemead Community Development Commission Five Year Implementation Plan
•
FY2009-10 to FY2013-14 Five Year Implementation Plan
1. INTRODUCTION
Section 33490 of the California Community Redevelopment Law ("Law") requires that a
redevelopment Commission administering a redevelopment plan prepare and adopt a five year
implementation plan for its project areas. The principal goal of the implementation plan is to
guide a Commission in implementing its redevelopment program to help eliminate blighting
influences. In addition, the affordable housing component of the implantation plan provides a
mechanism for a redevelopment Commission to monitor its progress in meeting both its
affordable housing obligations under the Law and the affordable housing needs of the
community. In effect, the implementation plan is a guide, incorporating the goals, objectives,
and potential programs of a Commission for the five-year implementation plan period ("Planning
Period"), while providing flexibility so the Commission may adjust to changing circumstances
and new opportunities.
This document constitutes the FY 2009-10 through FY 2013-2014 Implementation Plan ("Plan")
for the Rosemead Community Development Commission ("Commission"). This Plan outlines
the programs of revitalization, economic development, and affordable housing activities for the
Commission for the Planning Period.
The Affordable Housing Production Plan is included in the Housing Component of the Plan and
covers historical and projected housing production in the Project Areas, the Commission's
affordable housing production obligation, and the Commission's plans to meet its housing
production obligation.
A. Organization
Generally, the Plan must contain the following information:
• Specific goals and objectives for the next five years for both housing and
non-housing activities.
• Specific programs and expenditures for the next five years for both housing
and non-housing.
• An explanation of how the goals, objectives, programs and expenditures will
assist in the elimination of blight and in meeting affordable housing
obligations.
Other information related to the provision of affordable housing, including the Commission's
housing replacement plan, if applicable, and its housing production obligation throughout the
life of the Project Areas.
Section 1 provides a basic discussion of the legal requirements, Project Areas Description
and Background, and goals and objectives for the Project Areas. Section 2 summarizes the
Commission's proposed non-housing activities, and related revenues and expenditures for the
next five years, and a description of the blighting conditions and how they will be alleviated
by the Commission's proposed activities. Section 3 addresses the affordable housing
activities and expenditures, and charts the Commission's progress in providing affordable
housing, along with the Affordable Housing Production Plan.
Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY2013-14 Five Year Implementation Plan
B. Requirements
For redevelopment plans adopted prior to January 1, 1994, the first implementation plan for
fiscal years 1995-1999 was required to be adopted by December 31, 1994. The next five
year implementation plan was adopted in 1999 by the Commission for years 2000-2004 and
in 2004 for the years 2005-2009. This Implementation plan represents the fourth
implementation plan prepared by the Commission and will cover the planning period of FY
2009-10 through FY 2013-14.
AB 1290 Requirements
AB 1290 added Section 33490 to the Health and Safety Code. This section requires
agencies to produce implementation plans every five years, beginning in 1994. Section
33490 has been amended numerous times since its original adoption. In accordance with
this section, the implementation plan must contain the following, if applicable to the
Commission:
Redevelopment Requirements
• Specific goals and objectives for each project area
• Specific programs, including potential projects for each project area
• Estimated expenditures to address the remaining blight in the Project Areas
• Explanation of how the goals and objective, programs, and expenditures will
eliminate blight within the project area
Housing Requirements
• An explanation of how the goals, objectives, and programs will achieve the
required housing production as well as an explanation of the expenditures from
the Low and Moderate Housing Set-Aside Fund ("Housing Funds") as set forth
in the Law. This explanation must include a detailed annual implementation plan
for each of the five years covered by the Implementation Plan in order for
performance to be measured.
The amount of money available in the Housing Fund, the amount of money
expected to be deposited during the next five years as well as plans for the using
the annual deposits to the Housing Fund.
• The estimated number of units to be provided over the next five years and ten
years to meet the Commission's fifteen percent (15%) inclusionary housing
requirements, if applicable.
• The number of qualifying very low, low, and moderate-income units that have
been produced in the project area, and the number of additional units that will be
required to meet the inclusionary housing requirements.
• The number of units that will be developed by the Commission, if any, including
the number of units that the Commission will make available for very low, low,
and moderate-income households.
• If a planned public improvement or development project will result in destruction
of existing affordable housing, an identification of proposed locations for their
replacement will be required (Health and Safety Code Section 33413).
Rosemead Community Development Commission Five Year Implementation Plan
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FY2009-10 to FY1013-14 Five Year Implementation Plan
• The Project Areas affordable housing production plan (Health and Safety Code
Section 33413(b)(4)).
Project Area No. 1 Final Housing Requirements
Pursuant to the Law Project Area No. 1 must address housing requirements as follows:
For a project area that is within six years of the time limit on the
effectiveness of the redevelopment plan established pursuant to Section
33333.2, 33333.6, 33333.7, or 33333.10, the portion of the
implementation plan addressing the housing responsibilities shall
specifically address the ability of the Commission to comply, prior to the
time limit on the effectiveness of the redevelopment plan, with
subdivision (a) of Section 33333.8, subdivision (a) of Section 33413 with
respect to replacement dwelling units, subdivision (b) of Section 33413
with respect to project area housing, and the disposition of the remaining
moneys in the Low and Moderate Income Housing Fund.
The Redevelopment Plan for Project Area No. 1 is effective through June 22, 2013;
therefore, the Commission must address the Commission's ability to comply with the
above referenced Sections of the Law dealing with replacement housing and remaining
low and moderate income housing funds. The Commission has not assisted in
developing housing units nor have privately developed housing units resulted in the need
for the Commission to provide replacement housing units. The Commission does not
currently have replacement housing obligations nor does it anticipate generating
replacement housing needs for Project Area No. 1 through the end of the effective term of
the Redevelopment Plan. In March 2009, the City Council adopted Ordinance No. 871
approving the merger of Project Area No. 1 and 2. The benefit of merging the two
project areas into one was the ability to spend tax increment funds generated in one area
in another within the City based on a finding of benefit resolution, approved by the
Commission Board.
AB 637 Requirements
AB 637 created additional housing requirements on redevelopment agencies. It
eliminated the sunset for most of the provisions in AB 1290 which had been in effect
since January 1, 1994. AB 1290 contained a number of modifications to the inclusionary
and production requirements contained in Section 33413(b) of the Health and Safety
Code. The issues addressed by AB 637 include:
■ Targeting housing funds.
• 100 percent of removed or destroyed affordable units need to be replaced instead
of 75 percent.
■ Commission must keep a list of those persons displaced and who are to be given
priority in the replacement housing plan.
• Establishes regulations of how and where Housing Funds may be used for onsite
or offsite improvements.
Rosemead Community Development Commission Five Year Implementation Plan
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• FY2009-10 to FY1013-14 Five Year Implementation Plan
■ Covenants increased from 10 to 45 years in the case of owner occupied units, and
from 15 to 55 years in the case of rental housing.
• Housing Funds monies are to be used only to the extent other reasonable means
of private or commercial financing is not reasonably available.
The Commission is required to spend the Housing Fund in at least the proportion of the
total housing need that these low to moderate-income groups represent, as determined for
the City pursuant to Section 65584 of the Government Code (Regional Housing Needs
Assessment). In addition, the commission shall expend over the duration of each
redevelopment implementation plan period, the money in the Housing Fund to assist
housing that is available to all persons regardless of age in at least the same proportion as
the population under 65 years of age relates to the total population of the community as
reported by the United States Census Bureau.
In accordance with Section 33490(a)(2)(A)(iii), the first time period to implement the
requirements for targeting of Housing Funds is on or before December 31, 2014, and
each ten years thereafter.
SB 701 Requirements
SB 701 clarifies how AB 637 is to be implemented. The Commission will have until
2014 to comply with the legal requirements outlined in AB 637.
C. Project Area Background
History of the Commission
The Rosemead Redevelopment Agency ("Agency") was established pursuant to the Law.
The Agency was activated by City Ordinance in 1972. On June 22, 1972, the Agency
adopted its first project area, Project Area No. 1, encompassing 511 acres. On June 27, 2000,
the Agency approved its second project area, Project Area No. 2, encompassing
approximately 203 acres. Together, these project areas cover approximately 714 acres of the
City, and include residential, commercial, industrial, and public land uses.
Table 1
Project Area Adoption Dates
Project Area
Adoption
Ordinance
Effective Date
Tax Increment
Timeframe to
Date
No.
Limit
Collect Tax
Increment
Project Area No. 1
June 22, 1972
340
June 2013
$249,245,938
June 22, 2023
Project Area No. 2
June 27, 2000
809
June 2030
None
June 27, 2040
In 2002, the City Council of the City of Rosemead ("City Council") adopted Ordinance No.
821, declaring the need for a Community Development Commission to function in the City.
The Commission was created in order that the City may have the option of operating and
governing its redevelopment Commission and its housing authority, under a single entity and
board. The Commission is also created and established for the purpose of exercising any
Rosemead Community Development Commission Five Year Implementation Plan
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• •
FY2009-10 to FY2013-14 Five Year Implementation Plan
other powers regarding community development which the City Council may desire to
delegate to the Commission subject to such conditions as may be imposed by the City
Council. The Commission oversees the operation and accountability for redevelopment
activities.
On February 10, 2009 the City Council adopted Ordinance No. 871 merging Project Area
No. 1 and 2. The merger allows the flexibility of tax increment funds generated in one
project area to be spent in either project area. This would allow exempt bond proceeds as
well as tax increment generated in project area 1 to be spent in project area 2 for various
capital improvement projects like street rehabilitation, public facilities renovations, and
economic development projects.
Project Area No. I
The Redevelopment Plan for Rosemead Project Area No. I was originally adopted by
Ordinance No. 340 and was amended as follows:
• December 9, 1986 by Ordinance No. 592 to increase the limitation on the number
of dollars allocated to the Commission and to re-establish eminent domain
authority to the Commission.
• October 9, 1991, the Commission prepaid its housing obligation for Project Area
No. 1 in the amount of $6,813,849.62. The Commission's 20% low to moderate
income housing set aside requirement has been reduced by $469,142 per year
through the 2021-22 fiscal year. This reduction was determined by analyzing the
yield on the Commission's outstanding bonds.
• December 20, 1994 by Ordinance No. 752 to bring it into conformity with the
requirements of Assembly Bill 1290.
• On January 22, 2002 by Ordinance No. 822 for the purpose of extending the
duration of the Plan's effectiveness.
Project Area No. 2
On June 27, 2000, the City Council approved the Redevelopment Plan for the Rosemead
Project Area No. 2 by Ordinance No. 809.
Rosemead Housing Development Corporation
On March 16, 1992, the Commission established the Rosemead Housing Development
Corporation (RHDC), a local non-profit housing development corporation organized under
the Section 501(c)3 of the Internal Revenue Code of 1986. The RHDC was established to
develop, construct, finance and assist with low and moderate-income housing and to assist
the Commission with redevelopment issues related to housing.
Rosemead Community Development Commission Five Year Implementation Plan
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• •
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
Rosemead Community Development Commission
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Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY 2013-14 Five Year Implementation Plan
2. FIVE YEAR PLAN FOR THE ELIMINATION OF BLIGHT
A. Background
This section describes the five-year non-housing redevelopment program, including a
summary of the deficiencies to be corrected, project and activity descriptions, and estimated
revenues and costs. As they are implemented, these projects and activities may be modified
over time to better serve the purposes of redevelopment. The cost estimates are preliminary
and subject to refinement as the Commission's redevelopment activities, planning and
implementation proceed. Some of these projects and activities may not be completed within
the next five years, and thus, related costs may not be incurred in the next five years.
Commission's Goals
Although the Commission has specific goals and objectives for each project area, the
redevelopment plans have a high degree of redevelopment policy and programmatic
consistency among them. The general redevelopment goals and objectives for the two
project areas have been consolidated into a set of mutual goals and objectives as follows:
• Eliminate blighting influences, including deteriorating buildings, incompatible
land uses, obsolete structures, and other environmental, economic, and social
deficiencies; improve the overall appearance of existing buildings, streets,
parking areas and other facilities, public and private; and assure that all
buildings, new and old, are safe for persons and business to occupy.
• Encourage the cooperation and participation of property owners, public agencies,
and community organizations, in the elimination of blighting conditions and in
the development of the project areas.
■ Encourage private sector investment in the project areas.
• Be sensitive to environmental concerns and considerations.
• Be sensitive to existing and planned patterns of development particularly in and
adjacent to the immediate vicinity of the Project Areas.
• Remove materials or facilities that impede development.
• Provide adequate parcels so as to encourage new construction by private
enterprise, thereby providing the City with an improved economic base.
■ Provide construction and employment opportunities in the development of new
facilities and by providing employment opportunities in the operation of new
industrial and commercial facilities.
■ Establish development criteria and controls for the permitted uses within the
project areas in accordance with modern and competitive development practices,
thus assuring the highest design standards and environmental quality.
• Encourage and foster opportunities for continued sustained growth of existing
City business sectors.
• Protect the health and general welfare of the project area residents by
rehabilitating and otherwise improving the supply of housing in the project areas.
• Ensure the long-term viability of the commercial portions of the project areas by
encouraging commercial rehabilitation and planned new commercial
developments.
Rosemead Community Development Commission Five Year Implementation Plan
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FY2009-10 to FY1013-14 Five Year Implementation Plan
■ Provide for new housing as required to satisfy the needs of the various age,
income and ethnic groups in the City, maximizing the opportunity for individual
choice.
• Provide new or improved public improvements and facilities, the absence or
inadequacy of which constitute an economic liability of the City, are
impediments to development, and which cannot be remedied by private or
governmental action without redevelopment.
• Provide for relocation assistance and benefits to businesses which may be
displaced, in accordance with the provisions of Law.
■ Achieve a physical environment reflecting a high level of concern for
architectural and urban design principles deemed important by the community.
• Provide a procedural and financial mechanism by which the Commission can
assist, complement, and coordinate public and private development,
redevelopment, revitalization, and enhancement of the community.
• Increase, improve, and preserve the community's supply of housing affordable to
very low, low and moderate income households.
Commission's Objectives
The following objectives are intended to provide a framework for efforts to attain the
goals outlined above:
• Beautify the City through appropriate Economic Development.
• Work with developers of major projects to facilitate the construction of attractive
and compatible developments within the community.
• Promote sales tax growth by attracting new businesses to the City, and retaining
and strengthening existing business and commercial centers.
• Redevelop sites throughout both Project Areas into viable commercial projects.
• Invest in Capital Improvement Projects to improve public infrastructures.
• Assist in the revitalization of Valley Boulevard and Garvey Avenue.
• Provide funding for affordable housing projects.
B. Blight in the Project Areas
The redevelopment tools contained in the Law are granted for use in a project area in order to
eliminate and prevent the prevalence of blighting conditions. A blighted area is one that
necessitates the creation of a redevelopment project area because the combination of
conditions in an area constitute a burden on the community and cannot be alleviated by
private enterprise, governmental action, or both. Law Section 33031 defines blight as
follows:
Physical Conditions that Cause Blight
• Unsafe/Unhealthy/Deteriorated Buildings - Buildings and structures that are unsafe
or unhealthy for people to live or work. The lack of deferred maintenance that results
in serious dilapidation and deterioration, faulty or, inadequate utilities, serious
building code violations, and construction that is vulnerable to serious damage from
seismic or geologic hazards.
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FY 2009-10 to FY2013-14 Five Year Implementation Plan
• Physical Conditions that Substantially Hinder the Economic Viability and Use
of Lots/Buildings - Conditions that prevent or substantially hinder the viable use or
capacity of buildings or lots. These conditions may be caused by buildings of
substandard, defective, or obsolete design or construction given the present general
plan, zoning, or other development standards
• Incompatible Land Uses - Adjacent or nearby uses that are incompatible with each
other and which prevent the economic development of those parcels or other portions
of the Project Area.
• Lots of Irregular Shape, Inadequate Size, and Under Multiple Ownerships - The
existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and developments that are in multiple ownership, given present
general plan and zoning standards and present market conditions.
Economic Conditions that Cause Blight
• Depreciated/Stagnant/Impaired Property Values - Depreciated or stagnant
property values or impaired investments, including, but not necessarily limited to
those properties containing hazardous wastes that require the use of Commission
authority as specified in Article 12.5 (commencing with Section 33459 of the
Law).
• High Business Turnovers and Vacancies/Low Lease Rates/Abandoned
Buildings/Vacant Lots - Abnormally high business vacancies, abnormally low
lease rates, high turnover rates, abandoned buildings, or excessive vacant lots.
• Lack of Neighborhood Commercial Facilities - A serious lack of necessary
commercial facilities that are normally found in neighborhoods, including
grocery stores, drug stores, and banks.
• Overcrowding - Serious residential overcrowding that has resulted in significant
public health or safety problems. As used in this paragraph, "overcrowding"
means exceeding the standard reference in Article 5 (commencing with Section
32) of Chapter 1 of Title 25 of the California Code of Regulations.
• Excess of Bars/Liquor Stores/Adult Businesses - An excess of bars, liquor
stores, or adult-oriented business that has resulted in significant public health,
safety, or welfare problems.
• High Crime Rates- A high crime rate that constitutes a serious threat to the
public safety and welfare of Project Area residents.
Bli2htin2 Conditions in the Proiect Areas
As part of the amendment to merge Project Areas No. 1 and 2 a blight survey was
conducted in 2008 of both project areas. The blight survey described the existing
physical and economic conditions of blight as provided by Law. Among the findings the
following blight remains in the project areas:
Physical Blight Conditions Present in the Project Areas
Deteriorated buildings are considered unsafe and unhealthy for persons to live or work, to
the extent that such conditions are caused by serious code violations, dilapidations and
deterioration caused by long-term neglect, faulty and inadequate construction and public
Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY 2013-14 Five Year Implementation Plan
infrastructure. Other physical deterioration, including peeling paint, hazardous electrical
wiring, leaking roofs, cracked plaster and other major structural deterioration are deemed
to be unhealthy and unsafe.
Approximately 11% of the parcels in the project areas, according to the City's Code
Enforcement Department, have major code violations. Serious deterioration and
dilapidation is observed in 53% of the parcels in both project areas and exhibited at least
one or more indicators of structural dilapidation or deterioration. Additionally,
approximately 9% of parcels exhibited one or more indicators of poor construction and
75% of parcels are affected by inadequate fire safety issues.
Approximately 55% all parcels in both project areas exhibited at least one or more
blighting conditions including code violations, deterioration, inadequate construction, and
faulty water systems that create an unhealthy and unsafe environment in which to live or
work.
Conditions that prevent or substantially hinder the viable use or capacity of buildings or
lots are also prevalent within the project areas. Approximately 81% of parcels exhibited
one or more indicators of such conditions including substandard, defective or obsolete
design or construction.
The existence of irregular, subdivided lots in multiple ownership whose physical
development has been impaired given present conditions was found in 8% of the parcels
in the project areas. Such conditions include narrow lots, excessively deep parcels, flag-
shaped and land land-locked parcels.
The remaining physical blight in the project areas is present in at least 85% of the parcels
within the project areas.
Economic Blight Conditions Present in the Project Area
Economic blight is described by Law and includes depreciated or stagnant property
values, residential overcrowding and poverty, inadequate retail and commercial facilities,
and crime and public safety risks. Economic blight can lead to an environment that
creates diminished economic opportunities to be undertaken by private entities or local
government agencies.
The 2008 blight survey, as part of the merger amendment, shows that economic blight
remains in the project areas. The project areas show economic conditions that diminish
the lasting positive efforts to improve economic standards of residents, limit effective
utilization of business and property resources, and hinder opportunities to realize
economic growth.
Existing conditions that indicate economic blight remains in the project areas include a
high poverty rate of 2.1 times greater than that of Los Angeles County, overcrowding
Rosemead Community Development Commission Five Year Implementation Plan
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FY1009-10 to FY2013-14 Five Year Implementation Plan
conditions affecting nearly one-half of all households in the project areas. Retail and
commercial facilities suffer from an abnormally high vacancy rate of 6.7% when
compared to the surrounding area which stands at 1.5%. Sales by retail merchandisers
are also comparably weak at 73% of the benchmark level for the area. In addition, the
existing retail is characterized by weak operators that contribute to a 50% sales leakage
from the project areas. A disproportionately high level of police activity also contributes
to the economic blight conditions remaining in the project areas.
C. Five-Year Redevelopment Plan
The Commission will undertake projects and activities in the Project Areas over the next five
years to alleviate blighting conditions and achieve its goals and objectives. These projects
and activities are described below.
Redevelopment and Economic Development Activities
The Commission will continue its effort to create economic activity through the use of
redevelopment activities. The projects are designed to promote revenue and employment
generating businesses in the Project Areas and include the following: business retention
and attraction, commercial rehabilitation, assistance with on-site and off-site public
improvement, and property acquisition, if necessary. The Commission will continue to
pursue redevelopment efforts along Valley Boulevard, Rosemead Boulevard, Glendon
Way, and Garvey Avenue within the Planning Period including, but not limited to, the
following potential sites:
• the development of the southeast comer of Valley Boulevard and Rosemead
Boulevard
• the development of the northeast comer of Valley Boulevard and Temple City
Boulevard
• the development of five parcels aggregating approximately 8.5 acres on the
southwest corner of Rosemead Boulevard and Glendon Way
• former auto auction site
Capital Improvements
Public infrastructure and facilities projects and activities will involve the construction and
installation of public improvements to upgrade the existing aged and/or deteriorated
infrastructure systems to support private investment.
Projects to improve the public infrastructure and facilities in the Project Areas may
include improvements to gateways, sewer and water systems, and utilities. The
Commission may also assist in funding the construction of new and rehabilitated public
facilities within or serving the Project Areas. Projects are intended to stimulate the
growth of existing and new businesses and reduce stagnant economic conditions.
In addition, the Commission assists in the administration of street maintenance and the
National Discharge Elimination System Program (NPDES) implementation and
compliance, provides plan check and inspection services, and works with other
departments and outside agencies on sub-regional transportation and public work issues.
Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY2013-14 Five Year Implementation Plan
Additional capital improvements projects that may be undertaken over the next five years
include:
• Open space development of Edison rights-of-way
• Annual Slurry Seal
• Citywide Curb Ramp Improvements
• Citywide Energy Efficiency Project
• -Installation of new street signs
• Tree Planting Project
• Synthetic turf at Rosemead High School
In addition, the Commission may undertake projects outside of the project area that
would provide a direct benefit to the project areas.
Circulation and Transportation Improvements
Circulation and transportation projects and activities will involve the construction and
installation of public improvements to upgrade existing roads and problematic circulation
and pedestrian accessibility issues. Several proposed projects are shown under the
"Capital Improvements" section. In addition, the Commission may undertake
neighborhood traffic safety improvements to help reduce traffic speeds, enhance
pedestrian crossing areas, and improve traffic safety around schools and highly active
pedestrian areas.
Community Beautification and Visual Blight Removal
Community beautification and visual blight removal projects and activities will alleviate
blighting conditions and provide physical improvements along commercial corridors.
Efforts will include landscaping, lighting, and street signage. Beautification initiatives
will be undertaken in both residential and commercial areas to provide visual linkages
between various areas of the City. As part of the beautification efforts, the Commission
will support improvements to the Rosemead Park Trails as well as projects outside of the
project area that would enhance the project area and improve safety. In addition, the
Commission intends to reactivate the Commercial Facade Rehabilitation Program. The
Commission believes that by providing financial incentives to commercial
owners/merchants located in the project area, it will be possible to improve the physical
appearance of Rosemead shop fagades and thus create a more attractive place for
consumers to shop.
Housing Component
The Commission will continue to utilize Housing Funds to increase and preserve
affordable housing for very low, low, and moderate-income households. Section 3
describes the planned housing activities by the Commission.
Rosemead Community Development Commission Five Year Implementation Plan
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FY2009-10 to FY2013-14 Five Year Implementation Plan
D. How the Commission's Proposed Goals, Objectives, Activities, and
Expenditures Will Eliminate Blighting Conditions
The Commission's proposed goals, objectives, programs and expenditures are designed to
eliminate blighting influences in the Project Areas. The Redevelopment activities aim to
alleviate the blighting conditions that interfere with the revitalization of the project areas by
improving economic conditions, stimulating private investment, improving public
infrastructure and facilities, and meeting the Commission's affordable housing obligation.
In general, the Redevelopment activities are designed to:
• Revitalize areas that exhibit adverse physical and economic conditions.
• Stimulate private investment and complementary development
• Improvement circulation, public infrastructure and public facilities.
• Provide tax increment funds for the redevelopment activities that are needed to
alleviate blighting conditions
• Produce affordable housing, both rental and ownership units.
The ongoing improvement of public infrastructures and facilities and the alleviation of blight
will signal to the private sector the Commission's commitment to improving the project
areas. These improvements will enhance the competitiveness of the businesses they serve.
The projects and activities makes evident the Commission's continuing interest in making
Rosemead a better place to live, work and conduct business. It will help create an
environment where property owners, businesses and outside developers have the incentive to
make and carry out long range plans.
The Commission is committed to enhancing the economic vitality of the project areas by
identifying the needs of the existing businesses and attracting new ones. Commercial
rehabilitation projects will enable existing business owners to upgrade their properties.
Business development activities will be aimed at reducing business vacancies by attracting
new tenants and owners and stabilizing current ones with rehabilitated and newly constructed
development in the project areas. This will enhance the feasibility of creating or enhancing
commercial facilities as well as enhance the competitiveness of the people they serve.
The Commission's circulation improvements will ameliorate circulation problems throughout
the project areas, making both pedestrian and vehicular traffic safer and more pleasant.
Infrastructure improvements will provide sufficient capacity to support private commercial
revitalization and new commercial and mixed-use development. Landscaping and
streetscape improvements beautify the streetscape, upgrade the appearance of the area, and
establish clear gateways that define the edges and boundaries of the district commercial
districts. Streetscape improvements also encourage increased investment from the private
sector by alleviating blighting conditions in the area.
Rosemead Community Development Commission Five Year Implementation Plan
13
• FY 2009-10 to FY2013-14 Five Year Implementation Plan
Economic development activities are also intended to help in the reduction of vacancies by
attracting new tenants and owners and expanding current business by facilitating
rehabilitation and new development in the project areas. In particular, the Commission is
targeting development along Valley Boulevard and Garvey Avenue that will enhance
economic activity.
The Commission will continue to support private investment efforts to directly address some
of the more serious blighting conditions within the project areas including deteriorated and
obsolete buildings. New or expanded commercial activity will enhance the economic vitality
and generate jobs within the project areas. Retail development will prevent further economic
decline and enhance access to goods and services for all Rosemead residents.
The Commission's Affordable Housing Program will allow the Commission to provide
increased and enhanced affordable housing opportunities for Rosemead residents. In
addition, the Commission's efforts will improvement project design and leverage federal,
state and private sources to develop high quality, attractive, affordable housing development
serving a diverse population.
E. Five-Year Financial Plan
Over the next five years, the Commission will undertake those activities that can be
financially supported by its revenue stream. The Commission must make statutory pass
through payments pursuant to Health and Safety Code Section 33607.7 as a result of an
amendment to the redevelopment plans for both Project Areas to remove the timeframe to
incur indebtedness. Additionally the Commission entered into a tax increment sharing
agreement with the Los Angeles County Consolidated Fire Protection District and the Los
Angeles County Public Library District. Per the Agreement the Consolidated Fire Protection
District receives 17% of gross tax increment and the Public Library District receives 4% of
gross tax increment.
The Commission projects revenues equaling approximately $29,364,437 for the five year
implementation plan period from three revenue sources:
• Annual tax increment revenues
• Bond issuance proceeds
• Other Commission and non-Commission revenues
The available revenues for non-housing projects and activities are summarized in the
following table.
Rosemead Community Development Commission Five Year Implementation Plan
14
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Tax Increment Revenues Available for Non-Housing Projects and Activities
As shown in Table 2, the tax increment revenues generated in the project areas (after
payment of pass-through payments, Commission administration, debt service, and housing
fund obligations) during the next five-year period are projected to be approximately
$27,102,277. The Commission is anticipating contributing $11,564,834 towards non-
housing projects and activities. However, in the light of the uncertainty with respect to State
cuts in local government funding and the uncertain local economy, it is possible that the
funding ability of the Agency could be less than what is predicted.
Other Commission and Non-Commission Revenues
Whenever possible, the Commission has been and will continue to leverage other funds in
connection with its redevelopment efforts including the targeting local, state and federal
funding sources to assist in financing eligible projects. As permitted by law, possible
funding sources include government grants and assistance programs, as well as private sector
sources. In addition, the City's development impact fees generated from new development
will be source of public infrastructure and facilities funding when feasible. The Commission
will also pursue funds from federal programs including the Community Development Block
Grant (CDBG) program and HOME Investment Partnerships (HOME) program, in addition
to state and county programs.
F. Five Year Expenditures
The nature and scope of the Commission's programs and expenditures in the Project Areas
have been shaped by the goals and objectives for the Project Areas, available revenues for
funding projects and activities, and blighting factors to be eliminated with each Project Area.
The estimated cost of the non-housing activities and projects for the implementation planning
period of FY 2009-10 to FY 2013-14 will be approximately $38,667,111 (see Table 2). The
funds will be spent on activities to alleviate blighting conditions including public
infrastructure and facilities, economic development activities, and community beautification
and visual blight removal projects.
As they are implemented, the projects and activities may be modified over time to better
serve the purposes of redevelopment. The cost estimates are preliminary and subject to
refinement as the planning and implementation proceed. Many projects and activities may
not be completed within the next five years of the Implementation Plan based on available
revenues, market conditions, community needs, priorities, and developer interest, and thus
the following budget represents initial funding of the program costs incurred in the next five
years. Additional revenues may become available for projects and activities for the Project
Areas through non-Commission sources.
3. HOUSING COMPONENT
This section of the Implementation Plan describes the obligations the Commission will undertake
pursuant to requirements under California Redevelopment Law. This housing component of the
Implementation Plan contains the following:
Rosemead Community Development Commission Five Year Implementation Plan
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FY2009-10 to FY2013-14 Five Year Implementation Plan
• An account of available Housing Funds and the estimated amounts to be deposited in the
Housing Fund during each of the next five years.
• A housing program that estimates the number of new, rehabilitated, restricted units to be
assisted during each of the next five years by the Commission and estimates of Housing
Fund expenditures for each of the next five years.
• A description of how the housing program will implement the requirements to spend the
Housing Funds over a ten year period for the various groups as required by
Redevelopment Law.
The Commission is also guided by the City of Rosemead's Housing Element, which is currently
being updated, as part of the General Plan. The goals, policies, and strategies described in this
section are intended to be implemented by the Commission.
A. Requirements
Commission's Statutory Affordable Housing Obligations
The Commission must allocate no less than twenty percent of its gross tax increment to the
Housing Fund for the purpose of increasing, improving and preserving the supply of housing
available to low and moderate income households.
In addition, Senate Bill 211 approved by the legislature in 2001 requires Agencies, on or
after January 1, 2001, to require housing units assisted with Housing Funds to remain
affordable for the longest feasible time, but no less than 45 years for owner occupied units
and not less than 55 years for rental units.
Project Area No. 1 does not have an inclusionary housing requirement and is not subject to
the housing production provisions of Section 33413 of the Law; however, it is subject to
replacement housing obligations and the expeditious expenditure of housing funds. The
Commission has not assisted in developing housing units nor have privately developed
housing units resulted in the need for the Commission to provide replacement housing units.
Approximately 0.4% of the total area of Project Area No. 2 is developed for residential use.
In the past five (5) years no dwelling units have been privately developed or developed as a
result of Commission participation; therefore, Project Area No. 2 does not currently have an
inclusionary housing production requirement.
Policy Declaration Regarding Targeting of Monies from the Housing Fund according to
Income Need
Pursuant to Section 33334.4, Housing Fund monies are required to be spent over the ten year
planning period of the Implementation Plan in at least the same proportion to the total
number of housing units needed for very low, low, and moderate income groups within the
community, as determined for the City pursuant to Section 65584 of the Government Code.
In accordance with Section 33490(a)(2)(A)(iii), the first time period to implant the
requirements for targeting of Housing Funds is on or before December 31, 2014, and each
ten years thereafter.
Rosemead Community Development Commission Five Year Implementation Plan
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FY2009-10 to FY2013-14 Five Year Implementation Plan
According to the Final Regional Housing Allocation Plan ("RHNA"), for the planning period
between January 1, 2006 and June 30, 2014, the housing for very low and low income
households represents 39% percent of the City's total housing need. The following table
shows the proposed fair share allocation for the different income groups.
Table 3
Regional Housing Need Allocation
Planning Period January 1, 2006-June 30, 2014
Income Level
Allocation
Targeting
Fair Share
Allocation
Fair Share
Targeting
Very Low
190
24%
190
43%
Low
119
15%
119
27%
Moderate
Above-Moderate
131
340
17%
44%
131
30%
Total
780
100
440
100%
Source: SCAG RHNA, 2007
As illustrated in the above table the Commission is required to spend 43% of its Housing
Funds on very low income households, and 27% and 30% on low and moderate income
households respectively.
As permitted under the Law, agencies are able to shift or reduce their income targeting
requirement if other locally controlled funds are available for those targeted income groups.
These additional funds, however, must not be used in combination with Housing Fund
monies and long term affordability must be met, 45-years for owner-occupied and 55-years
for rental housing. Such locally controlled funds include CDBG, HOME and fees received
by the city pursuant to inclusionary housing programs.
In addition, the Commission is to spend a defined minimum of Housing Fund monies during
this same period of time to assist persons regardless of age. This minimum is defined as
those persons under the age of 65. Based on the 2000 U.S. Census, the City of Rosemead,
proportion as identified in following table:
Housing Funds Expenditures
Age Proportionality Requirement
Age
Population Percentage
Less than 65 years
65 ears and over
47,820 89%
5,685 11%
Total
53,505 100%
Source: 2000 U.S. Census
Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY 2013-14 Five Year Implementation Plan
B. Replacement Housing
The Commission must replace any housing units that have been demolished or removed from
the affordable housing stock as a result of a redevelopment project or program, the
Commission must do so within four (4) years after they are removed from the market. The
replacement housing obligation is triggered when units are destroyed or removed by a
redevelopment project, which is subject to a written agreement with the Commission or
where financial assistance has been provided by the Commission. Vacant units that could
reasonably be expected to be occupied by low- or moderate-income households if occupied
must be replaced within four (4) years of their removal and may be located anywhere within
the territorial jurisdiction of the City.
When dwelling units are destroyed or removed after January 1, 2002, Section 33413(a)
requires that all the replacement units be available at affordable housing cost to the same
household income level as the households that were displaced from the destroyed or removed
units. Income limits for replacement units are equivalent to those for inclusionary units.
Pursuant to the Law, Section 33413(f)(1)(2), the Commission may replace destroyed or
removed dwellings with fewer units if the replacement units have a greater or equal number
of bedrooms and are affordable to household of the same income level as the destroyed or
removed units.
The Commission, at this time, has not removed or destroyed any residential units in the
Project Areas and has no plans to remove or destroy any units with in the next ten years. As
a result, the Commission has no obligation to replace any housing units and should the
Commission need to remove or destroy any units in the future they will follow all
requirements to replace those units.
C. Housing Production Requirements
Redevelopment project areas adopted on or after January 1, 1976 and territory added to
project areas by amendments adopted on or after January 1, 1976 must meet the affordable
housing production requirements. As part of the Implementation Plan, agencies must adopt a
plan showing how the Commission intends to meet its housing production requirement
(Housing Production Plan).
Project Area No. 1 was originally adopted on June 27, 1972 by the Rosemead City Council
and is not subject to the housing production provisions of Section 33413 of the Law;
however, it is subject to replacement housing obligations and the expeditious expenditure of
housing funds.
Project Area No. 2 adopted on June 27, 2000 is subject to housing production provisions. In
addition, the plan must be consistent with the community's Housing Element and must cover
the following time periods:
■ Production over ten year compliance period (FY 2009-10 through FY 2019-20)
• Production through the life of the Redevelopment Plan (though FY 2030)
Rosemead Community Development Commission Five Year Implementation Plan
19
• •
FY2009-10 to FY2013-14 Five Year Implementation Plan
Prior to the time limit on the effectiveness of a redevelopment plan, at least 30 percent (30%)
of the new or substantially rehabilitated housing developed by the Commission in Project
Area No. 2 must be restricted for low- and moderate-income households, with 50 percent
(50%) of the total restricted units reserved for very low-income households.
Not less than 15 percent (15%) of the housing proceeds by public or private entities other
than the Commission within Project Area No. 2 must be restricted for low- and moderate-
income households, with 40 percent (40%) of the total restricted units reserved for very low-
income households.
Prior to January 1, 2002, the units must be price restricted for the longest feasible time but
not less than the period of time the land use controls of the redevelopment plan remain in
effect. For owner-occupied housing, current law provides a limited exception to this
covenant requirement by allowing a non-qualifying sale of an affordable production unit
provided that the Commission replaces the unit within three (3) years at the same income
level as the original. After January 1, 2002, units must remain affordable for the longest
feasible time, but no less than 55-years for rental units and 45-years for the homeownership
unit.
The Implementation Plan must include the following information regarding the
Commission's housing production obligations for Project Area No. 2:
• The number of units of very low-, low- and moderate-income housing which have been
developed within the project area which meet the production requirements;
• An estimate of the number of new, substantially rehabilitated, or price restricted
residential units to be developed or purchased within the project areas, both over the life
of the redevelopment plan and during the next ten years;
• An estimate of the number of units of very low- low-, and moderate-income housing
required to be developed within project areas in order to meet the production
requirements;
• An estimate of the number of Commission developed residential units which will be
developed during the next five years; and
• An estimate of the number of Commission developed units for very low-, low-, and
moderate-income households during the next five years.
Within Project Area No. 2, approximately 10% of the property is designated in the City's
General Plan as mixed-use residential. Therefore, the Commission anticipates that there is
the potential for development submittals within the mixed use overlay zone in Project Area
No. 2 over the next five years. The anticipated number of units is difficult to determine at
this time because the overlay zone allows both residential and commercial development.
Market conditions are the major factor in determining the ultimate use of this property.
Law Restrictions on the Use of the Housing Fund
As of January 1, 2002, there are additional restrictions on the use of monies from the
Housing Fund. Redevelopment agencies are now required to spend Housing Funds in
proportion to the community's need as defined in the City's Housing Element.
Rosemead Community Development Commission Five Year Implementation Plan
20
•
FY2009-10 to FY2013-14 Five Year Implementation Plan
The City of Rosemead's Housing Element, adopted by the City Council and certified by the
State Department of Housing and Community Development in 2002, concluded that there
was a need for 202 very low-income units, 132 low-income units, and 155 moderate-income
units. The date presented in the following table indicates the percentage of funds from the
Housing Fund to be spent with each income category over a 10-year time frame.
Notwithstanding this requirement, funds required to be expended within a higher income
category can be utilized for a lower income category.
Table 4
Regional Housing Need Allocations per SCAG
2000 Housing
Element'
2007 RHNA'
Income Level
Allocation'
Targeting
Allocation'
Tar etin
Very Low
Low
Moderate
202
132
155
41%
27%
32%
190
119
131
43%
27%
30%
Total
489
100%
440
100%
(1) SCAG RHNA for 1998-2005
(2) SCAG RHNA for 2006-2014
The Southern California Association of Governments has determined that for the planning
period of 2006 through 2014, the City of Rosemead will necessitate 190 units for very low-
income households and 250 for low- and moderate-income households.
Commission Housing Activities/Use of Monies in the Housing Fund
The Commission has initiated the following redevelopment activities to increase housing
opportunities and eliminate blighted conditions.
Rosemead Housing Development Corporation (RHDC)
The RHDC is responsible for the oversight of two senior housing facilities in which the
Commission allocates approximately $250,000 annually towards the financing, operation,
and management of the two sites.
• Angelus Senior Housing Project
A 51-unit, very low-income senior housing built in 1995. The project is
fully occupied with rents at $250 per month for one person one bedroom
and $300 per month for two person's one bedroom.
• Garvey Senior Housing Project
A 72-unit, very low-income, senior housing projected completed in 2002.
This project is owned and operated by the RHDC. The project had a cost
of $7,456,000. The project is fully occupied with rents at $250 per month
for one person one bedroom, $300 per month for two person's one
bedroom, and $450 per month for two person's two bedroom.
Rosemead Community Development Commission Five Year Implementation Plan
21
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
Housing Program and Projects
The Commission helps offset the cost of purchasing affordable units through the City's
HOME Community Housing Development Organization (CHDO) Program. The City is
required to enter into an Agreement with a CHDO for the production of affordable
housing using the 15% CHDO set-aside funding as required under the Home Investment
Partnerships (HOME) entitlement grant. Partnering with the Commission allows for
additional funding under this program to acquire housing units for low to moderate-
income renters.
Housing Fund Deposits during the Implementation Plan Period
The Commission is projected to receive approximately $3.1 million in tax increment to be
deposited in the Housing Fund over the next five years to implement housing activities. The
Commission intends to spend all of its available funds within the planning period.
D. Housing Production Plan
Housing Production Plan Obligations for Proiect Area No. 2 (2002-2009)
The Commission does not have any current housing obligation since no new or substantially
rehabilitated units were built within the Project Area since its adoption in 2002.
Housing Production Obligations (FY 2009-10 to FY 2029-30)
Project Area No. 2 is primarily commercial with approximately 0.4% of the area designated
in the City's General Plan as residential. In addition, the Commission has currently
suspended any residential construction under the mixed use zoning. Therefore, the
Commission anticipates that over the life of Project Area No. 2 that no new or substantial
rehabilitated housing units will be produced; and therefore, the Commission will have no
affordable housing obligations. The Commission, however, intends to spend the Housing
Fund monies on the creation and preservation of affordable housing for very-low-, low- and
moderate-income households as called for in the Housing Element and as part of the
Regional Housing Needs Allocation.
Housing Production Compliance (FY 2009-10 to FY 2029-30)
The Commission anticipates creating an additional 10 affordable housing units for very-low
income households within the planning period to be located in Project Area No. 1. The
creation of 10 units over the life of Project Area No. 1 plus the 131 units previously created
will meet the Commission's housing production requirements of the expeditious expenditure
of the Housing Fund.
Rosemead Community Development Commission Five Year Implementation Plan
22
• 0
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
Table 5
Rosemead Community Development Commission
Housing Production and Affordable Obligation
Housing Production
Affordable Obligation
Affordable Production
Sumlus(Dagcit)
New
Substatial
Rehabiliation
Total
Very Low LgwlMod Total
Very Low Low/Mod
Total
Very Low
Low/Mod
Total
Hi tonal Production
PA No 1'
Prior to 2009
123
0
123
0 0 0
123 0
123
123
0
123
Historical Proiect
Area No. 2
Prior to 2009
0
0
0
0 0 0
0 0
0
0
0
0
PA No. 1
FY2009/t0-2017113
0
10
10
0 0 0
10 0
10
10
0.
10
Probected Production
PA No. 2
FY 2009/10 - 2014115
FY 2014/15 - 2019120
FY 2014115 - 2030
0
0
0
0
0
0
0
0
0
0 0 0
0 0 0
0 0 0
0 0
0 0
0 0
0
0
0
0
0
0
0
0
0
0
0
0
~.~a. 4au.
Total Rroduclion,rs7"`"
.._e123.aLJnu~f>„10rkt :i _:133a
~ r" °iv ~'d'1" r
,ns':..w>a0m"3~d?.~'•~0~'+v4
~
m`a't'133:.;,~"4~0~~133~
L
ti133~Y,0~,„-~.~z,133±1':
(1) Robed Prey No. 1 acopfedin 1972 is not subod of h0usng onad o en requiements
(2)Nc new x substantial, mhabilah,d unts a-e expectetl to be codmed over the de of fhe coot( area, therefore no aflxCbb projWfon, w4 be craafen
E. Plan for Affordable Housing
The Rosemead Community Development Commission, during the Implementation Plan
planning period, will concentrate on activities that help the Commission meet its housing
goals and objectives. The affordable housing activities planned to be undertaken by the
Commission will advance and support the overall goals of the Housing Element as part of the
City's General Plan. The Housing Element sets forth the following goals:
• Protect existing stable, single-family neighborhoods throughout the City.
• Encourage the development of a range of housing types in a range of prices
affordable to all Rosemead residents.
• Encourage the maintenance and upgrading of existing housing stock to ensure
decent, safe and sanitary homes for all Rosemead residents.
• Support federal and state laws that prohibit discrimination in housing on the basis
of age, sex, or race.
The Commission plans to spend its Housing Funds in proportion to the need for the specific
income groups as. required by Law. The Commission will continue to encourage the
preservation and development of housing affordable to those income groups with the greatest
need. The Commission will leverage its Housing Fund monies in order to maximize the
number of affordable units produced and will partner with a non-profit affordable housing
developer to produce at least 10-units within the planning period for very-low-income
households. The Commission anticipates that these units will be located within Project Area
No. 1.
The Commission will also utilize HOME funds to provide first-time home buyer loans to
low-income households.
Rosemead Community Development Commission Five Year Implementation Plan
23
• FY2009-10 to FY2013-14 Five Year Implementation Plan
Expenditures of Housing Funds, FY 2009-10 to FY 2013-14
The Commission plans to spend the $3.2 million of Housing Funds over the next five years;
and will therefore, use all of its Housing Fund monies. The Commission also intends to use
the Housing Fund in proportion to the needs for each income category as set forth in the
Housing Element.
4. IMPLEMENTATION PLAN ADMINISTRATION
The Commission shall be responsible for administering this Implementation Plan and for
monitoring redevelopment activities or programs undertaken pursuant to this Plan.
Implementation Plan Review
At least once within this Implementation Plan's five-year term, the Commission shall
conduct a public hearing and hear testimony of all interested parties for the purpose of
reviewing the adopted redevelopment plans and the corresponding Implementation Plan and
evaluating the progress of the redevelopment projects. The public hearing shall be held no
earlier than two years and no later than three years after the date of adoption of this
Implementation Plan. The Commission may choose to conduct a single public hearing
applicable to all adopted project areas described in this Implementation Plan, or may conduct
separate public hearings for each project area.
This Implementation Plan covers the Commission's activities in the redevelopment project
areas from January 1, 2009 through December 31, 2014. Consistency of the information
contained in the Implementation Plan and the Redevelopment Agencies Financial
Transactions Report and the HCD Annual Report of Housing Activity of Community
Redevelopment Agencies is important. Comparing the information reported each year to the
State Controller's Office and to HCD to the information within the Implementation Plan will
assist the Commission's Staff in monitoring the progress the Commission is making in
achieving its goals and objectives for redevelopment and housing activities. This will make
preparing the staff report for the mid-term review and efficient process.
Notice of the public hearing to review the redevelopment plans and Implementation Plan
shall be published pursuant to Section 6063 of the Government Code and posted in at least
four permanent places within each project area for a period of at least three weeks.
Publication and posting of the notice shall be completed not less than 10-days prior to the
date set for hearing.
Implementation Plan Amendment
Pursuant to Redevelopment Law Section 33490, this Implementation Plan may from time to
time be amended after holding a public hearing on the proposed amendment.
Financial Commitments Subject to Available Funds
The Commission is authorized to utilize a wide variety of funding sources for implementing
each Redevelopment Plan. Such funding sources include but are not limited to financial
assistance from the City, State of California, federal government, property tax increments,
Rosemead Community Development Commission Five Year Implementation Plan
24
• FY2009-10 to FY2013-14 Five Year Implementation Plan
interest income, Commission bonds secured by tax increment or other revenues, or any
legally available revenue resource. Although the sources of revenue utilized by the
Commission are generally deemed to be reliable from year to year, such funds are subject to
legislative, program, or policy changes that could reduce the amount or availability of the
funding sources upon which the Commission relies.
Monitoring of Affordable Housing
Pursuant to Section 33418, the Commission is required to monitor, on an ongoing basis, any
housing affordable to persons and families of low- or moderate-income developed or
otherwise made available through any provision of the Redevelopment Law.
As part of this monitoring, the Commission will require owners or mangers of affordable
housing units to submit an annual report to the Commission. The annual reports will include
for each rental unit the rental rate and the income and family size of the occupants, and for
each owner-occupied unit whether there was a change in ownership from the prior year and,
if so, the income and family size of the new owners. The income information required by
this section shall be supplied by the tenant in a certified statement on a form provided by the
Commission. Redevelopment Law states that information on income and family size is
required to be reported by the tenant and shall be the only information on income or family
sizes that owner or manager will be required to submit in the annual report to the
Commission.
Section 33418(b) states that the information obtained by the Commission from owners and
managers of affordable housing must be included in any reports required by law to be
submitted to the HCD or the State Controller. In addition, Section 33418(c) finds the
Commission must adequately fund its monitoring activities as needed to insure compliance of
applicable laws and agreements in relation to affordable units. For purposes of defraying the
cost of complying with these monitoring requirements and the HCD Report required to be
filed with the State Controller's Report, the Commission can establish and impose fees upon
owners of properties monitored pursuant to the Redevelopment Law.
Prevailing Wage Issues
Since the Commission's approval of the last Implementation Plan, the California Legislature
has amended Labor Code Section 1720 et seq. to require payment of prevailing wages for
private improvements which are financially assisted by the Commission or City whether for
commercial, industrial, office, or housing uses. There is a very limited exception that applies
to the construction or rehabilitation of affordable housing assisted by a redevelopment
Commission using its Housing Fund which is the only source of public funding for such
development. In order to qualify for the exception there can be no other federal or state
assistance or mortgage credit certificates or state or federal low income housing credits.
Redevelopment Plans/Conflicts
If there is a conflict, which exist between this Implementation Plan and any one or all of, the
respective Redevelopment Plans or any other City or Commission plan or policy, the
applicable redevelopment plan shall control.
Rosemead Community Development Commission Five Year Implementation Plan
. 25
• FY 2009-10 to FY 2131-14 Five Year Implementation Plan
Reserved
Rosemead Community Development Commission Five Year Implementation Plan
26
• •
ATTACHMENT D
r
February 10, 2009
0
REPORT TO THE CITY COUNCIL
FOR THE
MERGER AMENDMENT TO THE
REDEVELOPMENT PLANS FOR
THE ROSEMEAD
REDEVELOPMENT PROJECT
AREAS NOS. 1 AND 2
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
UFI I GRC Redevelopment Planning
3111 North Tustin Street, Suite 230
Orange, CA 92865
(714)283-9334 • FAX (714)283-5465
www.urbanfuturesinc.com
0 0
•
Report to the City Council
Prepared for the
Merger Amendment to the Redevelopment Plans for the Rosemead
Redevelopment Project Area Nos. 1 and 2
Prepared by:
URBAN FUTURES, INC. GRC REDEVELOPMENT PLANNING
In Cooperation with the:
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
February 2009
0
THIS PAGE INTENTIONALLY LEFT BLANK
•
•
•
REPORT TO THE CITY COUNCIL FOR THE MERGER
AMENDMENT TO THE REDEVELOPMENT PLANS
FOR THE ROSEMEAD REDEVELOPMENT PROJECT
AREA NOS. 1 AND 2
TABLE OF CONTENTS
1.0 INTRODUCTION ..............................................................................1
1.1 Definitions ...............................................................................1
1.2 Background and Purpose of the Merger Amendment ............3
1.3 Description of the Project Areas and Status of its Land
Use Controls ...........................................................................4
2.0 REQUIREMENTS OF LAW
...13
2.1
Requirements of CCRL Section 33352
...13
2.2
Requirements of CCRL Section 33451.5
...15
2.3
Definitions of Blight - CCRL Section 33031
...16
2.4
Requirements of CCRL Section 33486
...17
3.0 METHODOLOGY USED TO GATHER AND ANALYZE DATA
USED IN THIS REPORT
...19
3.1
Introduction: Discussion of Data Sources and Hierarchy
of Use
...19
3.2
Use of Data Sources for Each Hierarchy
...19
3.3
Methodology Used to Gather Information from Each
Data Source
...20
3.3.1 Field Reconnaissance
...20
3.3.2 Primary Research and Document Research
...21
3.3.3 Professional Experience
...21
3.4
Methodology Used to Analyze the Data
...22
3.4.1 Discussion of Definitions of Conditions which
Cause Blight
...22
3.4.2 Methodology Used to Identify and Analyze
Incidence and Extent of Blight ....................................24
3.4.2.1 Blight Severity Weighting by Parcel .............24
3.4.2.2 Blight Severity Weighting by Irregular
Parcel ization 26
3.4.2.3 Blight Severity Weighting: Conclusion .........27
3.4.3 Methodology Used to Analyze Data Derived from
Primary and Secondary Sources ................................27
Z00PIn AcbveftsemeaM02 0ca R to CCIRpt to CC 02.00.doc
n
u
11
3.4.4 Methodology Used to Determine Blight, and
Necessity 27
3.4.4.1 Methodology to Establish Blight (Layers
1 and 2) ........................................................27
3.4.4.2 Methodology to Establish Necessary and
Essential Parcels for the Elimination of
Remaining Blight (Layer 3) ...........................28
4.0 REASONS FOR THE SELECTION OF THE PROJECT AREA .....31
5.0 DESCRIPTION OF THE PHYSICAL AND ECONOMIC
CONDITIONS IN THE PROJECT AREA(S) .....................................33
5.1 Physical Conditions Described .............................................33
5.1.1 Buildings in Which it is Unsafe or Unhealthy for
Persons to Live or Work .............................................33
5.1.1.1 Serious Code Violations ...............................34
5.1.1.2 Serious Dilapidation and Deterioration 34
5.1.1.3 Construction that is Vulnerable to
Serious Damage
..37
5.1.1.4 Faulty or Inadequate Water Utilities
..39
5.1.1.5 Statement that there are Unhealthy and
Unsafe Buildings and that Significant
Blight Remains in the Project Areas
..40
5.1.2
Conditions That Prevent or Substantially Hinder
the Viable Use or Capacity of Buildings or Lots
..40
5.1.3
Statement that there are Conditions in the Project
Areas Which Substantially Hinder the Viable Use
or Capacity of Buildings or Lots and that the
Incidence of these Conditions is Significant
..43
5.1.4
The Existence of Irregular, Subdivided Lots in
Multiple Ownership Whose Physical Development
has been Impaired Given Present Conditions
44
5.1.5
Statement that there are Irregular, Subdivided
Lots in Multiple Ownership Whose Physical
Development has been Impaired Given Present
Conditions and that the Incidence of these
Conditions is Significant
..45
5.1.6
Statement Providing Compelling Evidence There
are a Substantial Number of Parcels in the Project
Areas that Suffer from Indications of Physical
Blight and that Such Blight is Significant
45
5.2 Economic Conditions Described
..46
5.2.1 Poverty and Residential Overcrowding
...........47
5.2.1.1 Prevalence of Poverty
...........47
5.2.1.2 Prevalence of Overcrowding
...........50
5.2.2 Adequacy of Commercial Facilities
...........52
5.2.2.1 Abnormally High Vacancy Rate
...........52
ii 1
5.2.2.2 Serious Lack of Adequate Retail-
Commercial Facilities
..53
5.2.3 Public Safety and Crime
..57
5.2.3.1 Police-Related Crime Risk
57
5.2.3.1.1 Project Area No. 1
..59
5.2.3.1.2 Project Area No. 2
..60
5.2.4 Statement of Significant Economic Blight
..60
5.3 Statement Providing Compelling Evidence That
Conditions of Physical and Economic Blight Are
Significant Throughout the Project Areas
..62
6.0 MAP OF THE PROJECT AREAS SHOWING PORTIONS OF THE
PROJECT AREAS NO LONGER BLIGHTED, PORTIONS THAT ARE
BLIGHTED, AND PORTIONS THAT ARE NECESSARY AND
ESSENTIAL FOR THE ELIMINATION OF REMAINING BLIGHT 65
7.0 DESCRIPTION OF PROJECTS OR PROGRAMS PROPOSED
TO ELIMINATE REMAINING BLIGHT ............................................69
8.0 DESCRIPTION OF HOW THE PROJECTS AND PROGRAMS
WILL IMPROVE OR ALLEVIATE CONDITIONS OF BLIGHT........ 71
9.0 REASONS WHY THE PROJECTS AND PROGRAMS CANNOT
BE COMPLETED WITHOUT THE MERGER AMENDMENT ...........73
10.0 PROPOSED METHOD OF FINANCING THE PROJECTS
AND PROGRAMS ..........................................................................75
10.1 Amount of Tax Increment Revenues Projected to be
Generated as a Result of the Merger Amendment ...............75
10.2 Sources and Amounts of Moneys Other than Tax
Increment Revenues that are Available ................................75
10.3 Reasons that Remaining Blight Cannot be Reversed or
Alleviated Without the Use of Tax Increment Available
because of the Merger Amendment 75
11.0 AMENDMENT TO THE CURRENT IMPLEMENTATION PLAN............ 77
12.0 NEIGHBORHOOD IMPACT REPORT ...........................................81
12.1 Relocation .............................................................................81
12.2 Traffic Circulation ..................................................................81
12.3 Environmental Quality ..........................................................81
12.4 Availability of Community Facilities and Services .................81
12.5 Effect on School Population and Quality of Education 82
12.6 Property Assessments and Taxes ........................................82
a;
12.7
The Number of Dwelling Units Housing Persons and
Families of Low- or Moderate-Income Expected to be
Destroyed or Removed from the Low- and Moderate-
Income Housing Market through Implementation of the
Merger Amendment
..82
12.8
Number of Persons and Families of Low- or Moderate-
Income Expected to be Displaced by the Project
..82
12.9
General Location of Housing to be Rehabilitated,
Developed, or Constructed
..82
12.10
The Number of Dwelling Units Housing Persons and
Families of Low- or Moderate-Income Planned for
Construction or Rehabilitation, Other than Replacement
Housing
83
12.11
Projected Means of Financing Proposed Dwelling Units
for Persons and Families for Low- and Moderate-Income
Housing
83
12.12
Projected Timetable for Meeting Rehabilitation and
Replacement Housing Objectives
..83
13.0 METHOD OR PLAN FOR RELOCATION .......................................85
14.0 ANALYSIS OF THE PRELIMINARY PLAN ....................................87
15.0 REPORT AND RECOMMENDATIONS OF THE PLANNING
COMMISSION ................................................................................89
16.0 SUMMARY REFERRED TO IN SECTION 33387 91
17.0 REPORT REQUIRED BY SECTION 65402 OF THE
GOVERNMENT CODE ...................................................................93
18.0 REPORT REQUIRED BY SECTION 2151 OF THE PUBLIC
RESOURCES CODE ......................................................................95
19.0 REPORT OF THE COUNTY FISCAL OFFICER AND
ANALYSIS OF SAID REPORT .......................................................97
iv I
0 •
LIST OF FIGURES
Figure 1 - Vicinity Map
Figure 2 - Project Areas Map
Figure 3 - General Plan Land Use Map
Figure 4 - Existing Land Use Map
Figure 5 - Blight Summary Map
Figure 6 - Blighted Parcels and Necessary and Essential Parcels......
LIST OF TABLES
TABLE 1 HIERARCHY SOURCES AND USES, FINDINGS REQUIRED
TABLE 2 DILAPIDATION AND DETERIORATION
TABLE 3 INADEQUATE CONSTRUCTION
TABLE 4 CONDITIONS THAT PREVENT OR HINDER VIABLE USES
TABLE 5 ECONOMIC CONDITIONS
LIST OF APPENDICES
Appendix A-
Methodology Hierarchy
Appendix B -
Blight Indicators
Appendix C -
Minimum Threshold Photographic Samples
Appendix D -
Blight Threshold By Parcel
Appendix E -
Summary of Blight Conditions
Appendix F -
Appendices Describing Economic Blight
5
7
9
..11
..63
..67
......20
......34
......38
......41
......47
v I
•
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•
vi I
• • Report to the City Council
Rosemead Community Development Commission
1.0 INTRODUCTION
Due to limited financial capabilities to address conditions of blight, the Rosemead Community
Development Commission (the "Commission") has initiated the process of amending its two
existing redevelopment areas, Project Area No. 1 and Project Area No. 2, to merge them into
one (the "Merger Amendment'). The proposed Merger Amendment is being processed by the
Commission pursuant to the California Community Redevelopment Law (CCRL; Health and
Safety Code, Section 33000, et seq.) and all applicable laws and ordinances.
CCRL Section 33485 provides, in part, that mergers of redevelopment project areas are
"desirable as a matter of public policy if they result in substantial benefit to the public and if they
contribute to the revitalization of blighted areas through the increased economic vitality of such
areas and through increased and improved housing opportunities in or near such areas." This
Report to the City Council includes evidence to support these goals and has been prepared in
accordance with the applicable requirements of CCRL Sections 33451.5 and 33352.
1.1 DEFINITIONS
The following bold terms shall have the following meanings unless the context in which
they are used clearly requires otherwise:
"AGA" means Alfred Gobar Associates, real estate economic consultants retained by
the Commission to assist it to complete the adoption of the Merger Amendment.
"Blight Indicators" means the list of 40 conditions identified in Appendices A, B and C,
and more fully described in Section 3.0 of this Report. Blight Indicators are indications of
those conditions that cause physical and economic blight based upon the definitions of
such conditions established in CCRL Sections 33030 and 33031.
"Blighted Area" means that portion, or portions, of either Project Area which contain
significant blight (as defined in CCRL Section 33031) and which may contain lands,
buildings, or improvements which are not detrimental to the public health, safety or
welfare, but whose inclusion is found necessary for the effective redevelopment of the
area of which they are a part (as defined in CCRL Section 33321).
"CCRL" means the California Community Redevelopment Law (Health and Safety Code
Section 33000 et seq.) as currently drafted or as it may be amended from time to time.
"City" means the City of Rosemead.
"City Council" means the Rosemead City Council. The members of the City Council
are also the members of the Commission Board.
"Commission" means the Rosemead Community Development Commission.
"Commission Board" means the Board of Directors of the Commission. The members
of the Commission Board are also the members of the City Council.
"County" means the County of Los Angeles, State of California
1 1
Merger Amendment to the Redevelopment Plans
for the Rosemead Redevelopment Project Area Nos. 1 and 2
"deterioration" or "physical deterioration" means the cumulative and deleterious
effects of wear and tear on a structure over time. Such deterioration may be the result of
use or excessive use of a structure, or of the effects of the elements on a structure,
which use or effects have not been rectified through a program of ongoing and adequate
maintenance. Deterioration includes both conditions of "dilapidation" and "deterioration"
as set forth in CCRL Section 33031(a)(1).
"Existing Plans" means the Redevelopment Plans for Rosemead Redevelopment
Project Area No. 1 and Rosemead Redevelopment Project Area No. 2.
"Field Reconnaissance" means the reconnaissance completed by UFI (and AGA) of all
parcels in either Project Area, and is more completely described in Section 3.0 of this
Report.
"functional obsolescence" means a loss in value resulting from defects in design, or
changes that, over time, have made some aspect of a structure obsolete by current
standards.
"FY" means fiscal year and runs from July 1 of any given calendar year to June 30 of
the subsequent year.
"General Plan" means the present City of Rosemead General Plan, adopted on
November 24, 1987, as it has been amended from time to time.
"Improved Area" means a portion of either Project Area that is no longer blighted as
provided in CCRL Section 33451.5(c)(1).
"LMI Fund" means the Low and Moderate Income Fund of the Commission established
pursuant to CCRL Section 33334.3.
"Merged Redevelopment Plan" means the redevelopment plan as proposed by this
Merger Amendment.
"Merger Amendment" means the proposed merger of the Existing Plans, as defined
below. Under the CCRL, a merger is processed as an amendment to the subject
redevelopment plans.
"Metroscan" means First American Real Estate Solutions software program allowing
access to records of the County Assessor. First American Real Estate Solutions
provides the following caveat: "Information compiled from various sources. Real Estate
Solutions makes no representations or warranties as to the accuracy or completeness
contained in [any] report."
"Planning Commission" means the Rosemead Planning Commission.
"Project Area(s)" means one or both of Project Area No. 1 or Project Area No. 2.
"Project Area No. 1" means the territory contained within the boundaries of Rosemead
Redevelopment Project No. 1, and is calculated to include about 510 acres.
"Project Area No. 2" means the territory contained within the boundaries of Rosemead
Redevelopment Project No. 2, and is calculated to include about 205 acres.
2 1
•
• Report to the City Council
Rosemead Community Development Commission
"Redevelopment Plan for Project Area No. 1" means the Redevelopment Plan for
Rosemead Redevelopment Project Area No. 1, originally adopted on June 22, 1972, by
Ordinance No. 340, and subsequently amended three times: December 9, 1986, by
Ordinance No. 592; December 20, 1994, by Ordinance No. 752; and January 22, 2002,
by Ordinance No. 822.
"Redevelopment Plan for Project Area No. 2" means the Redevelopment Plan for
Rosemead Redevelopment Project Area No. 2, adopted on June 27, 2000, by Ordinance
No. 809.
"Report" or "Report to the City Council" means this report to the legislative body,
which includes the information required for a Preliminary Report (CCRL Section
33344.5), for the State Departments of Housing and Community Development, and
Finance (CCRL Section 33451.5), and for the legislative body (CCRL Section 33352).
"State" means the State of California.
"Tax Increment" means the funds to be allocated to the Commission from either Project
Area pursuant to CCRL Section 33670.
"UFI" means Urban Futures, Inc., redevelopment consultants retained by the
Commission to assist the processing of this Merger Amendment.
"Zoning Ordinance" means the zoning ordinance in the City in effect at the time of the
adoption of the Merger Amendment and as it may be amended from time to time. The
Zoning Ordinance is codified as Title 18 of the Municipal Code.
1.2 BACKGROUND AND PURPOSE OF THE MERGER AMENDMENT
The Rosemead City Council (the "City Council") adopted the Redevelopment Plan for
Redevelopment Project Area No. 1 on June 22, 1972, by Ordinance No. 340. That
Redevelopment Plan has been amended three times: on December 9, 1986, by
Ordinance No. 592, to establish the tax increment collection limit and to establish an
eminent domain sunset date; on December 20, 1994, by Ordinance No. 752, to comply
with provisions of Assembly Bill 1290; and on January 22, 2002, by Ordinance No. 822,
to eliminate the date restriction on establishing loans, advances and indebtedness. The
territory within Project Area No. 1 includes approximately 510 acres.
The City Council adopted the Redevelopment Plan for Redevelopment Project Area No.
2 on June 27, 2000, by Ordinance No. 809. The territory within Project Area No. 2
includes about 205 acres.
The Commission is proposing the Merger Amendment to provide it greater financial
flexibility in making improvements as well as streamlining the administrative process.
Doing so will increase the Commission's ability in implementing redevelopment projects
and programs, designed to: upgrade public facilities and infrastructure, promote and
facilitate economic development and job growth, and generally improve the quality of life
for residents, and business and property owners within the limits of the Merged Project
Area specifically, and the City, overall.
The Merger Amendment will not affect the boundaries, or the time or financial limits, of
either Project Area.
3 1
Merger Amendment to the Redevelopment Plans •
for the Rosemead Redevelopment Project Area Nos. 1 and 2
1.3 DESCRIPTION OF THE PROJECT AREAS AND STATUS OF ITS LAND
USE CONTROLS
Figure 1 locates the City roughly at the northeast corner of the 1-10 and 1-605
interchange, about 20 miles east of downtown Los Angeles. Nearby communities
include the cities of Covina, West Covina, El Monte, and Irwindale.
Figure 2 shows the location of the two Project Areas and their relationship to the overall
City. Figure 3 shows General Plan land use designations within the Project Areas, while
Figure 4 shows current land uses identified during the Field Reconnaissance.
Upon final adoption of the Merger Amendment, the General Plan will continue to govern
land use policy within the Project Areas. Implementation of the Merged Redevelopment
Plan will be consistent with land use designations permitted by the General Plan and
Zoning Ordinance, as they now exist and as they may be amended from time to time.
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Rosemead Community Development Commission LEGEND
PROPOSED MERGER AMENDMENT TO L,1 Rosemead City Boundary
THE REDEVELOPMENT PLANS FOR THE ROSEMEAD
REDEVELOPMENT PROJECT AREA NOS. 1 AND 2 - Freeways
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Rosemead Community Development Commission
PROPOSED MERGER AMENDMENT TO
THE REDEVELOPMENT PLANS FOR THE ROSEMEAD
REDEVELOPMENT PROJECT AREA NOS. I AND2
FIGURE 3
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Rosemead Community Development Commission
LEGEND
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PROPOSED MERGER AMENDMENT TO
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Rosemead Redevelopment Projects
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REDEVELOPMENT PROJECT AREA NOS.1 AND2
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• • Report to the City Council
Rosemead Community Development Commission
2.0 REQUIREMENTS OF LAW
In order to complete the Merger Amendment, the Commission will follow the provisions of
Articles 4 and 16 in the CCRL, and must provide at least the following:
Preliminary Report to affected taxing agencies pursuant to CCRL Section 33344.5.
Report to the State Departments of Finance, and Housing and Community Development,
pursuant to CCRL Section 33451.5
Report to the legislative body pursuant to CCRL Section 33352
The Preliminary Report and the Report to the State Departments of Finance, and Housing and
Community Development were combined into one document called the "Unified Report," which
was prepared and transmitted as required by law. The report to the legislative body is this Report
to the City Council, and is part of the evidentiary record for the proposed Merger Amendment.
CCRL Section 33352 requires that "[e]very redevelopment plan submitted to the agency to the
legislative body shall be accompanied by a report." It then provides a list of required elements
to be included in the report. Pursuant to CCRL Section 33457.1, only to "the extent warranted
by a proposed amendment to a redevelopment plan, the reports and information required by
[CCRL] Section 33352 shall be prepared and made available to the public prior to the hearing
on such amendment." This Report to the City Council, therefore, includes only those
components which are "warranted" by the proposed Merger Amendment.
In addition, CCRL Section 33451.5 outlines the specific elements required for an amendment to
merge two or more project areas. Therefore, the provisions of CCRL Section 33451.5 will apply
in the preparation this Report to the City Council for most elements, but certain provisions of
CCRL Section 33352 are also applicable.
2.1 REQUIREMENTS OF CCRL SECTION 33352
CCRL Section 333,52 is outlined below.
§33352
Every redevelopment plan submitted by the agency to the legislative body
shall be accompanied by a report containing all of the following:
(a) The reasons for the selection of the project area, a description of the
specific projects then proposed by the agency, a description of how these
projects will improve or alleviate the conditions described in subdivision (b).
(b) A description of the physical and economic conditions specified in
Section 33031 that exist in the area that cause the project area to be blighted.
The description shall include a list of the physical and economic conditions
described in Section 33031 that exist within the project area and a map showing
where in the project the conditions exist. The description shall contain specific,
quantifiable evidence that documents both of the following:
(1) The physical and economic conditions specified in Section 33031.
(2) That the described physical and economic conditions are so
prevalent and substantial that, collectively, they seriously harm the entire project
area.
13 E
Merger Amendment to the Redevelopment Plans
for the Rosemead Redevelopment Project Area Nos. 1 and 2
(c) An implementation plan that describes specific goals and objectives of
the agency, specific projects then proposed by the agency, including a program
of actions and expenditures proposed to be made within the first five years of the
plan, and a description of how these projects will improve or alleviate the
conditions described in Section 33031.
(d) An explanation of why the elimination of blight and the redevelopment of
the project area cannot reasonably be expected to be accomplished by private
enterprise acting alone or by the legislative body's use of financing alternatives
other than tax increment financing.
(e) The proposed method of financing the redevelopment of the project area
in sufficient detail so that the legislative body may determine the economic
feasibility of the plan.
. (f) A method or plan for the relocation of families and persons to be
temporarily or permanently displaced from housing facilities in the project area,
which method or plan shall include the provision required by Section 33411.1 that
no persons or families of low and moderate income shall be displaced unless and
until there is a suitable housing unit available and ready for occupancy by the
displaced person or family at rents comparable to those at the time of their
displacement.
(g) An analysis of the preliminary plan.
(h) The report and recommendations of the planning commission.
(i) The summary referred to in Section 33387.
(j) The report required by Section 65402 of the Government Code.
(k) The report required by Section 21151 of the Public Resources Code.
(I) The report of the county fiscal officer as required by Section 33328.
(m) If the project area contains low- or moderate-income housing, a
neighborhood impact report which describes in detail the impact of the project
upon the residents of the project area and the surrounding areas, in terms of
relocation, traffic circulation, environmental quality, availability of community
facilities and services, effect on school population and quality of education,
property assessments and taxes, and other matters affecting the physical and
social quality of the neighborhood. The neighborhood impact report shall also
include all of the following:
(1) The number of dwelling units housing persons and families of low or
moderate income expected to be destroyed or removed from the low- and
moderate-income housing market as part of a redevelopment project.
(2) The number of persons and families of low or moderate income
expected to be displaced by the project.
(3) The general location of housing to be rehabilitated, developed, or
constructed pursuant to Section 33413.
(4) The number of dwelling units housing persons and families of low or
moderate income planned for construction or rehabilitation, other than
replacement housing.
(5) The projected means of financing the proposed dwelling units for
housing persons and families of low and moderate income planned for
construction or rehabilitation.
(6) A projected timetable for meeting the plan's relocation, rehabilitation,
and replacement housing objectives.
14
• Report to the City Council
Rosemead Community Development Commission
(n) (1) An analysis by the agency of the report submitted by the county as
required by Section 33328, which shall include a summary of the consultation of
the agency, or attempts to consult by the agency, with each of the affected taxing
entities as required by Section 33328. If any of the affected taxing entities have
expressed written objections or concerns with the proposed project area as part
of these consultations, the agency shall include a response to these concerns,
additional information, if any, and, at the discretion of the agency, proposed or
adopted mitigation measures.
(2) As used in this subdivision:
(A) "Mitigation measures" may include the amendment of the
redevelopment plan with respect to the size or location of the project area, time
duration, total amount of tax increment to be received by the agency, or the
proposed use, size, density, or location of development to be assisted by the
agency.
(B) "Mitigation measures" shall not include obligations to make
payments to any affected taxing entity.
2.2 REQUIREMENTS OF CCRL SECTION 33451.5
CCRL Section 33451.5 is outlined below.
§33451.5
(a) This section shall apply only to proposed plan amendments that would
do any of the following:
(1) Change the limitation on the number of dollars of taxes which may
be divided and allocated to the redevelopment agency.
(2) Change the limit on the amount of bonded indebtedness that can be
outstanding at one time.
(3) Change the time limit on the establishing of loans, advances, and
indebtedness to be paid with the proceeds of property taxes received pursuant
to Section 33670.
(4) Change the time limit on the effectiveness of the redevelopment plan.
(5) Change the boundaries of the project area.
(6) Merge existing project areas.
(b) No later than 45 days prior to the public hearing on a proposed plan
amendment by an agency or the joint public hearing of the agency and the
legislative body, the agency shall notify the Department of Finance and the
Department of Housing and Community Development by first-class mail of the
public hearing, the date of the public hearing, and the proposed amendment.
This notice shall be accompanied by the report required to be prepared pursuant
to subdivision (c).
(c) No later than 45 days prior to the public hearing on a proposed plan
amendment by the agency or the joint public hearing by the agency and the
legislative body, the agency shall prepare a report that contains all of the
following:
(1) A map of the project area that identifies the portion, if any, of the
project area that is no longer blighted, the portion of the project area that is
blighted, and the portion of the project area that contains necessary and
essential parcels for the elimination of the remaining blight.
(2) A description of the remaining blight.
(3) A description of the projects or programs proposed to eliminate any
remaining blight.
(4) A description of how these projects or programs will improve the
conditions of blight.
15
• i
Merger Amendment to the Redevelopment Plans
for the Rosemead Redevelopment Project Area Nos. 1 and 2
(5) The reasons why the projects or programs cannot be completed
without the plan amendment.
(6) The proposed method of financing these programs or projects. This
description shall include the amount of tax increment revenues that is projected
to be generated as a result of the proposed plan amendment, including amounts
projected to be deposited into the Low and Moderate Income Housing Fund and
amounts to be paid to the affecting taxing entities. This description shall also
include sources and amounts of moneys other than tax increment revenues that
are available to finance these projects or programs. This description shall also
include the reasons that the remaining blight cannot reasonably be expected to
be reversed or alleviated by private enterprise or governmental action, or both,
without the use of the tax increment revenues available to the agency because
of the proposed amendment.
(7) An amendment to the agencys implementation plan that includes,
but is not limited to, the agency's housing responsibilities pursuant to Section
33490. However, the agency shall not be required to hold a separate public
hearing on the implementation plan pursuant to subdivision (d) of Section 33490
in addition to the public hearing on the amendment to the redevelopment plan.
(8) A new neighborhood impact report if required by subdivision (m) of
Section 33352.
(d) Upon receiving the report, the Department of Finance shall prepare an
estimate of how the proposed plan amendment will affect the General Fund. The
Department of Finance shall determine whether the amendment will affect the
need for school facilities.
(e) Within 21 days of the receipt of the report, the Department of Finance or
the Department of Housing and Community Development may send any
comments regarding the proposed plan amendment in writing to the agency and
the legislative body. The agency and the legislative body shall consider these
comments, if any, at the public hearing on the proposed plan amendment. If
these comments are not available within the prescribed time limit, the agency
and the legislative body may proceed without them.
(f) The Department of Finance or the Department of Housing and
Community Development may also send their comments regarding the proposed
plan amendment to the Attorney General for further action pursuant to Chapter 5
(commencing with Section 33501).
2.3 DEFINITIONS OF BLIGHT- CCRL SECTION 33031
CCRL Section 33352(b) states that this Report shall include "[a] description of the
physical and economic conditions specified in [CCRL] Section 33031 that exist in the
project area." CCRL Section 33031 is stated below:
§33031
(a) This subdivision describes physical conditions that cause blight:
(1) Buildings in which it is unsafe or unhealthy for persons to live or
work. These conditions may be caused by serious building code violations,
serious dilapidation and deterioration caused by long term neglect, construction
that is vulnerable to serious damage from seismic or geologic hazards, and faulty
or inadequate water or sewer utilities.
(2) Conditions that prevent or substantially hinder the viable use or
capacity of buildings or lots. These conditions may be caused by buildings of
substandard, defective, or obsolete design or construction given the present
general plan, zoning, or other development standards.
16
• 0 Report to the City Council
Rosemead Community Development Commission
(3) Adjacent or nearby incompatible land uses that prevent the
development of those parcels or other portions of the project area.
(4) The existence of subdivided lots that are in multiple ownership and
whose physical development has been impaired by their irregular shapes and
inadequate sizes, given present general plan and zoning standards and present
market conditions.
(b) This subdivision describes economic conditions that cause blight:
-(1) Depreciated or stagnant property values.
(2) Impaired property values, due in significant part, to hazardous
wastes on property where the agency may be eligible to use its authority as
specified in Article 12.5 (commencing with CCRL Section 33459).
(3) Abnormally high business vacancies, abnormally low lease rates, or
an abnormally high number of abandoned buildings.
(4) A serious lack of necessary commercial facilities that are normally
found in neighborhoods, including grocery stores, drug stores, and banks and
other lending institutions.
(5) Serious residential overcrowding that has resulted in significant
public health or safety problems. As used in this paragraph, "overcrowding"
means exceeding the standard referenced in Article 5 (commencing with Section
32) of Chapter 1 of Title 25 of the California Code of Regulations.'
(6) An excess of bars, liquor stores, or adult oriented businesses that
has resulted in significant public health, safety, or welfare problems.
(7) A high crime rate that constitutes a serious threat to the public safety
and welfare.
This section did not appear to provide an appropriate definition of "overcrowding."
Further, CCRL Section 33030(c) provides that "[a] blighted area that contains the
conditions described in [CCRL Section 330311 may also be characterized by the
existence of inadequate public improvements or inadequate water or sewer utilities.
2.4 REQUIREMENTS OF CCRL SECTION 33486
CCRL Section 33486 requires that before two or more redevelopment plans may be
merged, the City Council must find, based on substantial evidence, that both of the
following conditions exist:
1. Significant blight remains within one of the project areas
2. This blight cannot be eliminated without merging the project areas and the
receipt of property taxes
Evidence of both conditions will be presented in the remainder of this Report.
17 f
•
Merger Amendment to the Redevelopment Plans
for the Rosemead Redevelopment Project Area Nos. 1 and ?
*
THIS PAGE INTENTIONALLY LEFT BLANK
18
• • Report to the City Council
Rosemead Community Development Commission
3.0 METHODOLOGY USED TO GATHER AND
ANALYZE DATA USED IN THIS REPORT
3.1 INTRODUCTION: DISCUSSION OF DATA SOURCES AND
HIERARCHY OF USE
This Report presents evidence which was gathered and analyzed in a manner sufficient
to meet or exceed threshold conditions set forth in the CCRL, and in various appellate
court cases which bear upon redevelopment plan adoption/amendment actions. The
method used to gather, analyze, and report upon such evidence is discussed below.
The evidence presented in this Report is derived from four sources:
1. The Field Reconnaissance
2. A review of primary research and secondary source documents completed by
UFI and AGA'
3. Interviews and testimonials of key City/Commission department staff
4. UFI's professional experience with redevelopment and generally accepted
planning principles.
The evidence so gathered2 is divided into three hierarchies based upon the degree to
which the source of the data can be related specifically to any given parcel, with the
most parcel-specific layer identified as "Layer 1," the next most parcel-specific identified
as "Layer 2," and the least parcel-specific identified as "Layer 3." Data used to evidence
blight are found in Layers 1 and 2, while data and experience used to show necessary
and essential parcels are found in Layer 3. Appendix A graphically illustrates the
hierarchal nature of the data used to evidence blight and necessity.
3.2 USE OF DATA SOURCES FOR EACH HIERARCHY
Data used in each of the three hierarchies are derived from one or more of the four
sources identified above. Table 1 below provides a graphic description of the sources
and uses of data for each hierarchy and each type of finding required of the City Council
identified above.
1 The role assumed by AGA in the development of this Unified Report is limited to research and analyses of
economic blight. Please reference Section 5.2 of this Report for the AGA analysis and conclusions regarding the
presence of economic blight in the Project Area.
2 All "raw" field data generated by UFI and AGA are incorporated herein by this reference.
19 l
Merger Amendment to the Redevel• ent Plans •
for the Rosemead Redevelopment Project Area Nos. 1 and 2
TABLE 1
HIERARCHY SOURCES AND USES, FIN
DINGS REQUIRED
FINDINGS -REQUIRED TO BE MADE BY THE CITY COUNCIL ?
HIERARCHY},;. ;
DATA SOURCE
_
BLIGHT NECESSARY AND ESSENTIAL
iq p
i
Layer 1
Field Reconnaissance/Interviews
Field Reconnaissance/Primary/Document
Layer 2
Research/Interviews
Primary and Document Research/Professional
Layer 3
Experience/Interviews
3.3 METHODOLOGY USED TO GATHER INFORMATION FROM EACH
DATA SOURCE
3.3.1 Field Reconnaissance
The Field Reconnaissance provides data relating to the type, severity, and
amount of physical conditions and, to some extent, economic conditions, which
the City Council may rely upon to make appropriate findings about the presence
of remaining physical and economic blight in the Project Areas.3 UFI conducted
the Field Reconnaissance in March 2008.
The Field Reconnaissance was conducted during daylight hours by one or more
teams of two individuals in an automobile and/or by foot. Field notes were
recorded on copies of assessor's parcel maps and included such items as the
condition of primary structures capable of containing a major land use activity;
the condition of public infrastructure including streets, curbs, gutters and
sidewalks; inappropriate, or conflicting land uses; indications of criminal activity
such as graffiti; and the general condition of neighborhoods. For reasons of cost
and respect for privacy, the surveyors were cautious about entering onto private
property and did not enter into the interiors of buildings. All notes and other data
generated during the Field Reconnaissance are incorporated herein by this
reference and are on file at the offices of UFI.
In preparation for the Field Reconnaissance, senior UFI staff has defined a set of
40 physical conditions determined to be adverse to the public health, safety and
welfare ("Blight Indicators"), and derived from a review of the following sources:
CCRL Section 33031(a) (physical) and (b) (economic)
The 1997 Uniform Housing Code
The 2001 Uniform Building Code
A list of these 40 Blight Indicators was provided to the field team both as written
definitions (see Appendix B) and as a catalog of photographs (see Appendix C)
each of which shows a "minimum threshold" of severity for the appropriate Blight
3 Data collected during the Field Reconnaissance is used to provide evidence to allow the City Council to make
findings relating to CCRL Sections 33030(c) and 33031(a) and (b) relating to findings of remaining blight in the
Project Areas.
20
• • Report to the City Council
Rosemead Community Development Commission
Indicator. A review of Appendices A, B and C will show that the catalog of Blight
Indicators is intended to provide a standard set of conditions and is not
necessarily tailored to any specific community; consequently, there may be Blight
Indicators listed or photographed in these Appendices which are not specifically
relevant to either Project Area. It should be noted that if the field team did not
find a case of any one or more of the 40 Blight Indicators, that Blight Indicator(s)
would not be shown on the field reports or reflected in this Report.
During the Field Reconnaissance the field team noted two types of information
for each parcel within either Project Area; the primary and any secondary (if
applicable) land uses for that parcel, and the specific Blight Indicator(s), if any,
which met or exceeded the minimum defined and photographic thresholds
described above .4
Appendix D provides a table of all Blight Indicators identified for each parcel
located within the Project Areas.
3.3.2 Primary Research and Document Research
As described above, various agencies collect data on physical and economic real
property conditions in the course of their business. This data is available to the
researcher in various media: print, database, oral interview, anecdotal, and
photographic media to list a few. These data are well-suited to determining
historic rates, area-wide conditions, and blighting "influences." However, use of
these data is limited primarily because reporting district boundaries are generally
not coterminous with the boundaries of a project area. As a consequence,
proper use of these data often requires interpolation to rationalize differing
geographies, time spans, and data sets. The different types of data used in the
preparation of this Report are listed below and by this reference are incorporated
herein:
• The General Plan
• The Zoning Ordinance to determine applicable building capacities, lot size
standards, parking ratios, set back requirements, etc., for each land use
type
• Service dispatch for police and fire response calls
• U.S. Census
• Staff interviews
• First American Real Estate Solutions (Metroscan)
3.3.3 Professional Experience
Summaries of the qualifications of staff members who participated in the Field
Reconnaissance and/or subsequent review and analysis of data are provided
below. This Report, including the Field Reconnaissance, was completed by UFI
4 For instance, an exterior wall that exhibits a major crack indicates a weakening in the foundation which will lead
to failure and would be noted as a Blight Indicator. On the other hand, many stucco structures in earthquake prone
California exhibit small cracks in their exterior walls which may be considered cosmetic and do not indicate the
potential for failure. The major crack is a "Blight Indicator," the smaller crack is not.
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and AGA staff under the general direction of Mr. Jon Huffman, Managing
Principal, UFI, and Mr. Alonzo Pedrin, Principal, AGA, respectively. Participating
professional UFI staff included Mr. Paul Schowalter, Principal; Mr. Ryan Bensley,
Planner, Mr. Jung Seo, Planner, and Ms. Kathren Young, Assistant Planner.
Mr. Huffman holds a Bachelor of Architecture Degree from the University of
Oregon, a Masters of Landscape Architecture Degree from the California State
Polytechnic University, Pomona and Certificates in Real Estate Appraisal from
the California State University, Fullerton, and has personally participated in over
80 field reconnaissances and managed over 175 redevelopment plan adoptions
and amendments. Mr. Schowalter holds a Bachelor of Architecture Degree with
an Urban Design Emphasis from the California State Polytechnic University,
Pomona and has personally participated in over 100 field reconnaissances and
provided analysis and document preparation in over 150 redevelopment plan
adoptions and amendments in California.
Mr. Bensley holds a Bachelor of Arts Degree in Geography from the California
State University, Long Beach, and has completed numerous field investigations
for UFI and has over six years' experience with municipalities in Southern
California and the private real estate sector.
Mr. Seo holds a Bachelor of Engineering in Architecture and Urban Planning
from the Handong University, South Korea, and a Master of Planning from the
University of Southern California, and has helped to make a site analysis and
projections for several redevelopment projects. Ms. Young holds a Bachelor of
Arts in Environmental Analysis and Design from the University of California,
Irvine, and has participated in field investigations and GIS activities.
Mr. Pedrin holds a Bachelor of Urban and Regional Planning from California
State Polytechnic University, Pomona, a Masters of Business Administration from
the University of California, Irvine, and has been the project manager and senior
research analyst for numerous private and public sector studies since 1986.
UFI and AGA use their professional experience and expertise as identified above
and that of Commission staff and other professionals, including Commission
legal counsel, to derive reasonable and professionally defensible definitions of
terms used in the CCRL (see Section 3.4.1 of this Report) and subsequently
tests these definitions against the evidence gathered during the Field
Reconnaissance and through examination of the secondary evidence. Such
analysis might include interpreting real estate trends, determining necessity for
effective redevelopment (based upon generally accepted planning principles),
rationalizing apparently conflicting data, and selecting comparable data sets of
parcels from within the Project Areas, and from outside the Project Areas.
3.4 METHODOLOGY USED TO ANALYZE THE DATA
3.4.1 Discussion of Definitions of Conditions which Cause
Blight
While the recently adopted SB 1206 has "clarified" certain definitions of blight,
the CCRL still does not define the specific conditions which cause physical or
economic blight through the use of any quantifiable metrics or minimum threshold
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conditions. Such core terms as "prevalent," "substantial," or "necessary", are not
defined. Therefore, it becomes incumbent upon the City Council to make its own
determination as to how the "facts on the ground" do, or do not, fit definitions of
these terms.
For instance, CCRL Section 33031(a)(1) lists "dilapidation and deterioration" as
one of the physical conditions that "may" cause blight. SB 1206 has stated how
dilapidation and deterioration may be "caused" (through "long-term neglect,
construction that is vulnerable to serious damage from seismic or geologic
hazards, and faulty or inadequate water or sewer utilities.") but still does not state
what, exactly, is dilapidation and deterioration. Nor, after an exhaustive
document search, can any cohesive and specific definition be found in the
planning or real estate literature. For instance, the U.S. Census provides that
"dilapidated housing does not provide safe and adequate shelter. It has one or
more critical defects; or has a combination of intermediate defects in sufficient
number to require extensive repair or rebuilding; or is of inadequate original
construction. Critical defects result from continued neglect or indicate serious
damage to the structure. Unfortunately, this definition was found in the 1960
Census (Series HC (3)-68, p. x) and cannot be found in subsequent census
reports. UFI research has found countless "definitions" of deterioration or
dilapidation, but none which provide a quantifiable and indisputable description of
what makes a structure either deteriorated or dilapidated.
Furthermore, during the 2006 State Legislative Session, the legislature had an
opportunity to adopt legislation which provided specific metrics to define blight,
thereby taking away local discretion as to what "blight" actually meant. While the
legislature modified certain descriptive statements in CCRL Section 33031 to
further provide guidance to local legislative bodies, it specifically chose not to
adopt hard standards. Consequently, it remains the province of the local
legislature, using the descriptive terms found in the CCRL to specifically find that
an area is or is not a blighted area. It is, in short, up to each legislative body to
examine the evidence before it to determine if the evidence, in its entirety, is
sufficient for it to make a finding of blight.
A dictionary definition of "dilapidation" is "to bring into a condition of decay or
partial ruin"; "deterioration" means "the action or process of deteriorating" while
"deteriorate" means "to become impaired in quality, functioning, or condition.i5
Both definitions, as well as the Census definition, provide for the:
• Potential that the deterioration or dilapidation might not be based upon
any one condition, but rather a series of lesser conditions which together
cause the condition ("partial," "impaired," "a combination of intermediate
defects")
• Exacerbating effect of these conditions over time ("to bring into," "to
become," "continued neglect").
In fact, the legislature has clarified its intention in SB 1206 that dilapidation and
deterioration may be caused by "long-term neglect.„ Therefore, it follows the
legislature must have intended a "condition which causes blight" need not, by
5 Merriam Webster's Collegiate Dictionary, Tenth Edition.
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itself, be found to be "blight," but rather may be one of many conditions which,
when added together, cause blight as defined in the CCRL.
For instance, chipped or peeling paint, per se, is not "blight" and a structure
whose only deleterious condition is chipped or peeling paint would not be
considered "blighted." However, chipped or peeling paint may be found in
combination with a number of other, "conditions which cause blight" each of
which, alone, might not be "blight.4 If a sufficient number of these conditions
exist on one or more structures on a parcel, the legislative body of a community
may appropriately find the parcel is blighted unless it could also determine that
private enterprise or governmental action, or both, would rectify this situation in a
reasonable period of time. The point at which private enterprise or governmental
action can no longer rectify a situation "without redevelopment" is the point at
which a parcel is blighted pursuant to CCRL Section 33031 and is in an area
which is blighted pursuant to CCRL Section 33030(b).
The discussion in the balance of this Section 3.4 describes the methodology
used to "quantify" deleterious conditions in a manner which will allow the
legislative body to make findings of blight on specific parcels pursuant to CCRL
Section 33031.
3.4.2 Methodology Used to Identify and Analyze Incidence
and Extent of Blight
3.4.2.1 Blight Severity Weighting by Parcel
The first step in the process to analyze field data is to determine a level of
severity for each Blight Indicator (see Section 3.3.1 "Field
Reconnaissance" for a description of Blight Indicators). In UFI's opinion
not all Blight Indicators merit equal weight when determining whether a
parcel actually exhibits conditions which cause blight. For instance, and
as described above, a parcel with a structure whose only Blight Indicator
is chipped or peeling paint would not be considered "blighted";
conversely, a parcel with a structure whose only Blight Indicator is
severely deteriorated exterior walls which could be in danger of imminent
collapse could be considered "blighted."
Additionally, it should be noted that a number of economic Blight
Indicators (found in CCRL Section 33031(b)) are considered such only to
the extent that they exist on more than one parcel in any given area. For
instance, CCRL Section 33031(b)(3) lists "[a]bnormally high business
vacancies, abnormally low lease rates, or an abnormally high number of
abandoned buildings," and CCRL Section 33031(b)(6) lists "excess of
bars, liquor stores, or adult-oriented businesses that has resulted in
significant public health, safety, or welfare problems" as indicators of
economic conditions that cause blight. Therefore, while one bar or one
retail establishment with a low lease rate presumably is not a condition
that causes blight, the cumulative effect of a number of such conditions is
6 While paint may become chipped in a relatively short period of time, paint peels and weathers over a "long-term"
if the condition is neglected.
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considered to be such a condition, assuming the case can also be made
that these conditions lead to problems of public safety and welfare.
To respond both to specific physical and economic conditions that cause
blight and to the cumulative effect of a number of conditions which
together cause blight, each of the 40 Blight Indicators is assigned one of
five possible "values" by senior UFI staff. The "values" were assigned as
described below.
There are three Blight Indicators whose presence on a parcel of land
would, by itself, allow the City Council to make a finding that the specific
parcel is "blighted" (hereafter termed "Primary Blight Indicators"). These
Primary Blight Indicators are identified in Appendices A, B and C as
exterior structural walls which are deteriorated to such an extent they are
likely to collapse and cause severe structural failure, incompatible land
uses, and irregular parcelization.7
Senior UFI staff has identified a second series of 10 Blight Indicators
which are considered to be half as serious as the Primary Blight
Indicators and, as such, are given a value which is half that given to the
Primary Blight Indicators. Examples of these Blight Indicators found in
Appendices A, B and C are: additions not permitted, fire hazards, garage
conversion (not permitted), or inadequate or impaired access to building
exits.
A third series of 17 Blight Indicators is considered by UFI to be only a
fourth as serious as the Primary Blight Indicators and, as such, are given
a value of one quarter that given to the Primary Blight Indicators.
Examples of these Blight Indicators found in Appendices A, B and C are:
apparent electrical hazards, occupied structures with one or more
openings boarded up, inadequate loading or docking facilities (industrial
uses only), obstruction of the public right-of-way, or unsafe or missing
stairways or walkways.
A fourth series of nine Blight Indicators is considered to be only a tenth as
serious as the Primary Blight Indicators and, as such, are given a value of
one tenth that given to the Primary Blight Indicators. Examples of these
Blight Indicators found in Appendices A, B and C are: bars on windows or
doors, defective outdoor walls or fences, fenestration issues, or presence
of security fencing.
Finally, there is one Blight Indicator, Inadequate Public Improvements
(PUI) which, for two reasons, is not assigned any Blight Points. In the
first place, CCRL Section 33030(c) does not specifically identify a PUI
condition as "blight." Secondly, the negative effects of inadequate public
improvements do not necessarily accrue to any individual parcel, but
7 Conditions of incompatible land uses (CCRL Section 33031(a)(3)) and irregular parcelization (CCRL Section
343031(a)(4)) are not fully identified in the field. These conditions are not identified in Appendix B inasmuch as they
are more a function of relationships among land uses or the.shape of parcels than a function of observable
deficiencies.
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rather to the block or neighborhood in which they are located. Conditions
of Inadequate
After having established the relationships among the various importance
levels of Blight Indicators, it becomes a matter of calculation to actually
establish the values. In this particular case, any parcel which receives a
total value of 20 or more "points" may, with one exception described
below, be considered by the City Council to be "blighted" as that term is
used in the CCRL. Consequently, the Primary Blight Indicators were
assigned a value of 20 points by UFI, meaning that the presence of any
one of the Primary Blight Indicators on any given parcel would be
sufficient to allow the City Council to find that parcel to be blighted, as
defined. In descending order, those Blight Indicators which were half as
serious as the Primary Blight Indicators were assigned a value of ten
points, the next series of Blight Indicators were assigned a value of five
points, and the final series of Blight Indicators were assigned a value of
two points, one tenth that of the Primary Blight Indicators.
However, it is not necessarily true that any parcel which accumulates ten
of the least serious Blight Indicators would necessarily be found by the
legislative body to be blighted. Therefore, in UFI's opinion, in order to be
considered as a blighted parcel, any such parcel must accumulate 20
points as described above and must contain at least one Blight Indicator
which is valued at five or more points.
3.4.2.2 Blight Severity Weighting by Irregular Parcelization
This condition of blight relates to the difficulty of providing for rationalized
development where there are irregular lots, under separate ownership,
which cannot be developed as a whole. This situation occurs when these
irregularly formed lots have been sold to various individuals, each of
whom retains his/her own property rights to develop when and how
she/he wishes, subject only to municipal regulation and his/her
perceptions of value.
CCRL Section 33031(a)(4), however, provides that a physical condition
which causes blight consists only of those subdivided lots which are in
multiple ownership, and whose irregular shape or inadequate size impairs
their development given present standards. This Report identifies these
subdivided lots as follows:
All parcels in the subject area are culled to determine which, if any, are of
substandard size pursuant to the Zoning Ordinance. Any such parcels in
zones which do not have a minimum lot size are further reviewed to
determine if present market conditions would likely preclude their
development or improvement. This set of "inadequate size" parcels is
then reviewed by UFI senior staff to determine if, based upon general
planning practice and present conditions, any subset would be irregular in
shape. Parcels which are adjacent to parcels in this "inadequate
size/irregular shape" subset are then reviewed to determine if there might
be common ownerships such that, if viewed together, they might no
longer be of inadequate size or irregular shape. All parcels which are
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simultaneously of inadequate size, irregular shape, and in multiple
ownership are then identified as exhibiting the physical condition that
causes blight identified in CCRL Section 33031(a)(4).
3.4.2.3 Blight Severity Weighting: Conclusion
Structures on parcels which have received at least 20 blight points and
exhibit one Blight Indicator totaling at [east five points may be found by
the legislative body to exhibit physical deterioration or are otherwise
substandard or are functionally obsolete and are unsafe or unhealthy for
persons to live or work in. As discussed earlier, these structures
generate negative influences on neighboring properties, which may or
may not demonstrate on-site blight indicators, so that the value of these
adjacent or nearby properties are negatively affected by their proximity to
these structures. All these conditions allow the legislative body to make
findings of blight for these, and neighboring, specific parcels.
3.4.3 Methodology Used to Analyze Data Derived from
Primary and Secondary Sources
Successful interpretation of primary and secondary sources provides area-wide
evidence of both physical and economic blight which the City Council may use to
make its findings of blight. Whereas data from the Field Reconnaissance are
parcel-specific, data derived from primary and secondary sources tend to be
area-wide and more generalized.
The City Council may rely upon the evidence derived and analyzed during this
phase of the blight documentation process to make the finding that the blight
remaining in the Project Areas is significant.
3.4.4 Methodology Used to Determine Blight, and Necessity
3.4.4.1 Methodology to Establish Blight (Layers land 2)
A review of Table 1 shows that conditions which cause blight (physical
and economic) are evidenced through the Field Reconnaissance ("Layer
1 and a review of primary and document research ("Layer 2").
Making a finding that a portion of a community is blighted is not an easy
task for at least two reasons:
The definition of a blighted area is not specifically provided in the CCRL.8
Appellate court decisions have found fault with: (a) the "conclusionary"
nature of the discussion found in the documents under appellate review
a For instance, a blighted area may contain parcels "which are not detrimental to the public health, safety and
welfare" (CCRL Section 33321), i.e., parcels which are not blighted; CCRL Section 33030(b)(1) requires that the
conditions of blight defined in CCRL Section 33031 be "prevalent" and "substantial" yet does not directly define these
terms but rather simply describes what they "cause;" a blighted area need not exhibit all conditions identified in CCRL
Section 33031, but only "[o]ne or more" of each of the physical and economic conditions (CCRL Section 33030(b)(2));
one of the four conditions of physical blight identified in CCRL Section 33031 is arguably economic in nature
(condition "(4)" which includes "present market conditions") while three of the seven conditions of economic blight
identified in CCRL Section 33031 are arguably physical in nature (conditions "(3)," "(4)," and "(6)").
27
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upon which legislative bodies have relied to make findings of blight, (b) an
insufficient amount of such blight evidenced in the proposed project area,
and (c) the apparent "boilerplate" nature of the assertions made in the
evidentiary material.
It therefore becomes incumbent upon each respective legislative body to
carefully and expressly identify the specific conditions which, together,
negatively affect a proposed redevelopment project area to the degree
specified by law so the legislative body can find that, together, they are
prevalent and substantial (for territory to be made subject to
redevelopment) or significant (for territory already subject to
redevelopment pursuant to a redevelopment plan being amended) and
they place an undue burden on the community. In order to be in the
position to do this, the legislative body must have before it a thorough and
complete record, more objective than subjective, more analytical than
anecdotal, whose conclusions are drawn from an objective analysis of the
evidentiary record and not, to paraphrase one appellate court finding,
from the consultant's word processor.
3.4.4.2 Methodology to Establish Necessary and Essential
Parcels for the Elimination of Remaining Blight
(Layer 3)
While results of the Layer 1 and 2 blight analyses described above will
allow the legislative body to determine the existence of blight for most of
the Added Territory, the case remains that there may be certain parcels,
or more probably groups of parcels, which neither exhibit the deleterious
conditions uncovered in the Layer 1 Field Reconnaissance or the Layer 2
data analysis. If it can be shown that these parcels or groups of parcels
are "necessary for effective redevelopment," they may be included within
the Added Territory even if they do not exhibit conditions of blight. Such
parcels may be found to be necessary for effective redevelopment if:
Their exclusion would create a "hole in the donut" making planning
and implementation efforts ineffective
Their inclusion provides for more rational development parcels
• Their exclusion would create an artificially complicated or irrational
boundary line
In large measure the determination whether parcels are necessary for
effective redevelopment has to do with:
Whether their exclusion would add an undue burden on the ability
of the redevelopment agency to plan for and implement its
programs in an effective and efficient fashion (a determination
which the legislative body would make based upon the
professional advice from consultants and its own staff)
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Whether or not their exclusion would add an undue burden on the
ability of the redevelopment agency to provide for low- or
moderate-income housing (a determination which the legislative
body would make based upon its own political considerations as
well as professional advice from consultants and its own staff).
Consequently, identifying such parcels is more a process of applying and
articulating professional expertise in a specific project area context than
analyzing data and drawing conclusions.
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4.0 REASONS FOR THE SELECTION OF THE
PROJECT AREA
The Merger Amendment does not add territory to either Project Area; therefore, this Report to
the City Council does not contain information regarding the reasons for the selection of the
Project Area because those reasons remain intact as when each project area was selected and
each redevelopment plan was adopted.
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5.0 DESCRIPTION OF THE PHYSICAL AND ECONOMIC
CONDITIONS IN THE PROJECT AREA(S)
CCRL Section 33352(b) requires this Report to the City Council to include a description of the
physical and economic blight that remains in the Project Areas. The description shall include a
list of the blighting conditions - with specific, quantifiable evidence - and a map showing where
the conditions exist.
5.1 PHYSICAL CONDITIONS DESCRIBED
The purpose of this section is to describe the existing physical conditions as provided for
in CCRL Section 33031(a) within the two Project Areas (pursuant to CCRL Sections
33352(b) and 33451.5(c)(2)). Information contained in this Section will be used to
document that the blight remaining in the Project Areas is significant (pursuant to CCRL
Section 33486).
5. 1.1 Buildings in Which it is Unsafe or Unhealthy for Persons
to Live or Work
Deteriorated buildings are considered to be unhealthy or unsafe for persons to
live and work in to the extent such conditions are caused by serious building
code violations, serious dilapidation and deterioration caused by long-term
neglect, construction that is vulnerable to serious damage from seismic or
geologic hazards, and faulty or inadequate water or sewer utilities and, as such,
constitute a physical condition that causes blight in accordance with CCRL
Section 33031(a)(1). Such buildings suffer some form of physical deterioration
which is dangerous to inhabitants; peeling paint is -often lead-based and
dangerous to the health of occupants (especially given the age of the buildings
involved); hazardous electrical wiring is a serious fire hazard; leaking roofs,
cracks around windows and doors, cracked plaster and loose joints all potentially
lead to bodily injury, illness, or, in extreme cases, death. Cracked windows are
an obvious indication of an unhealthful environment; boarded up windows do not
provide the light and ventilation which, ever since the late 1800's, have been
understood to be necessary for healthy living and working conditions. Taken
altogether, these unsafe and unhealthy conditions resulting from physical
structural deterioration will be seen to form a basis for remaining physical blight
found in the Project Areas.
The State legislature at CCRL Section 33031(a) has found that serious
dilapidation and deterioration is one of the "physical conditions that cause blight"
and that such conditions, when present, cause buildings to be "unsafe or
unhealthy for persons to live or work." Inasmuch as State law provides the nexus
between deterioration and dilapidation and unhealthy and unsafe conditions, one
of the conditions causing blight, evidence of such deterioration and dilapidation
will, in and of itself, be evidence of blight, although the following discussion
additionally draws the direct link between observed conditions and how those
conditions result in buildings that are unsafe or unhealthy to live or work in.
Since this section discusses those blighting factors in the built environment which
make buildings unsafe or unhealthy for persons to live or work in, the emphasis
will be on the effects that serious deteriorated and dilapidated building conditions
33 1
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have on human health and safety and not on how they negatively affect the built
environment. Consequently, discussion of physical blight in this section is limited
to its effect on human habitation.
5.1.1.1 Serious Code Violations
According to the City's Code Enforcement Department, of the 1,387
individual parcels in the two Project Areas, 148 parcels (11% of all
parcels) have had more than one code violation on it. The bulk of these
violations are related to unpermitted construction, which constitutes a
very serious health and safety issue. The older areas, particularly those
in Project Area No. 1, are the greatest concern because they include a
large number of renters and multiple families in one residence. This
increases the risk for unsafe or unhealthy conditions if these unpermitted
structures fail.
5.1.1.2 Serious Dilapidation and Deterioration
"Deterioration" has already been defined in Section 1.1 of this Report.
That definition is commonly used in the appraisal profession. Cumulative
and deleterious effects of wear and tear on a structure over time are
exhibited in many ways. As described above, specific Blight Indicators
relating to "Deterioration" found on each parcel are identified in Appendix
D.9
Specific occurrences of serious health and safety issues, and a
description of each type that was found in the Project Areas, are shown in
Table 2 below.
Apparent Electrical Hazards
Includes any visible electrical wires, wire connections, electrical boxes that are
loose, disconnected, dangling, etc., and/or electrical wiring types that are outdated
and would not be permitted under current codes. Faulty electrical wires lead to
increased risks for fire and electrocution. While some fires may be localized,
others, especially when coupled with the poor maintenance of structures and large
number of unpennitted structures, may be fatal.
These conditions also make structures vulnerable to serious damage primarily due
to their potential for conflagration. Such damage to a structure tends to be total;
i.e., even a structure which has been only partially burned often needs to be
completely rebuilt. In cases where a fire does not break out, the damage to
appliances and other electric devices caused by electrical shortages qualifies this
condition as making the structure vulnerable to serious damage.
9 These conditions are identified and defined in Appendix A.
16
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DILAPIDATION TABLE 2
`i 1 ~L', ` y 1 { S - I pi .kf J~u1' , Y
( I L
"
; It ,
,
t
'1 N rA ,,Y}l
, fe # or, Parcels ; I ~
z
~
~
s
l S
Blight Ind
cators x '
Project Area Project Area
i
No Z
_x
Appurtenant Deteriorated Structures
22
2
These uninhabited structures may have been originally permitted but are currently
deteriorated or dilapidated. An appurtenant structure typically would only have
been a minor construction to, say, house an outdoor hot water heater, or be a
small lean-to. However, regardless of how minor an appurtenant structure may be,
its deteriorated condition strongly indicates that it was constructed of substandard
material which was unable to withstand normal weathering and wear and tear.
Exterior Structure Support Walls
1
2
This includes exterior structural support walls that are deteriorated to such an
extent that the structure they support may collapse, which constitutes severe
health and safety, economic disinvestment, and aesthetic issues.
Defective Fence, Block Wall, or Planter
184
13
Includes wood, chain link, or other material fences, concrete block walls, large
planter boxes, etc. that are deteriorated. Deterioration may include deteriorated
paint, missing or broken sections, lurching, leaning, cracking, or loose concrete
blocks. Not only is this condition a safety and security issue, but there is also
potential harm and liability if anyone gets injured from the damage. Additionally, a
yard fence is the primary visual statement from the public way. While aesthetics
are not specifically a condition of blight, it is well understood both among the
general population and within the planning profession that "visual blight" is an
important factor in the perceived success of failure of a neighborhood. The scruffy
appearance of these fences or walls throughout the Project Area, themselves,
creates a form of external obsolescence which starts to characterize a
neighborhood as "blighted."10
Fenestration
53
29
As identified in Appendix C, deficient fenestration is called out when windows and
doors are decayed, have missing hardware, glass is cracked, sills need attention,
or the placement of the opening is inappropriate. The presence of such issues is a
specific factor in the ultimate deterioration or dilapidation of a structure.
In addition, the standard concept of "The Broken Window Effect", which is widely
accepted in professional planning literature, points strongly to a very high degree
of correlation between apparent building abandonment and crime. 11
Fire Hazards
14
6
Fire hazards in this context relate to structures made of old, dried wood, lack of fire
retardant, site issues (overgrown vegetation, high piles of dried out yard waste or
tires, accumulation of other flammable wastes, etc.) or other conditions which
could lead to a fire. Fires, however caused, are cleady unsafe and unhealthy and
are therefore a condition which causes physical blight.
This indicator represents severe health & safety issues and economic
disinvestment as fires will damage property and may even cost lives.
10 For instance, the Dunn Foundation, whose mission is to increase public understanding of the contribution
community appearance makes to our quality of life, believes "community appearance must be acknowledged as a
vital factor in promoting economic growth and increasing the livability of communities."
(HttpJ/www.dunnfoundahon.org)
11 Wilson, James Q. and Kelling, George L., "Broken Windows", The Atlantic, Boston, Mass., March, 1982.
35 1
0
Merger Amendment to the Redevelopment Plans
for the Rosemead Redevelopment Project Area Nos. 1 and 2
TABLE 2
DILAPIDATION AND DETERIORATION
Ar l~ .P Yl T YS l\S 'S '.7
4. Y -Y'
k.'" jt ~ -
t t Blight Indicators4
Protect Area
Protect Area
Deteriorated Fixtures or Mechanical Equipment
35
7
This condition is often characterized by "swamp coolers" or wall air conditioners
that are precariously attached to windows and/or are propped up on crates or
jeryrigged "supports." These fixtures are heavy and the potential for them to fall
and either hurt some individual or further destroy the structure to which they are
attached is substantial. This potential is exacerbated in the event of an
earthquake.
It also includes severely deteriorated outdoor mechanical equipment, ventilation
units (includes post-construction ventilation pipes probably inserted after the
structure was constructed).
In addition to safety risks, these deteriorated fixtures, mechanical equipment, or
HVAC systems can be costly to replace and tend to lower the value of the
property.
Foundation Problems
5
3
Includes severe cracks in the foundation of the structure which could lead to
collapse. This condition usually needs a catalyst (i.e. earthquake) to cause more
severe structural damage, however natural settling of buildings and sites as well as
expansion/contraction due to temperature change can also exacerbate this
problem.
Potential for Infestation
32
8
This is evidenced through large accumulations of trash and debris, which are known
habitats for rodents and insects. This can be a breeding ground for communicable
diseases and are considered a serious danger, especially to young children and the
elderly.
Inoperable Vehicles
154
13
Evidence of inoperable vehicles includes flat tires, spider webs, out-of-date
Note that 297
Note that 39
registrations, overgrown weeds around the tires, and/or vehicles on blocks.
inoperable
inoperable
This is a property maintenance issue that speaks to the pervasive nature of urban
vehicles were
vehicles were
decay and the health and safety of residents. For instance, California Vehicle
observed on
observed on
Code Section 22669(d) allows for the immediate removal of any inoperable vehicle
these 154
these 13 parcels.
because such vehicles may be declared a hazard to public health, safety, and
parcels.
welfare. Furthermore, the high incidence of this phenomenon indicates an
impaired investment, as an owner to allow an inoperable vehicle to remain on his
or her parcel is a direct indication of the owner's belief in the value of that parcel.
Overgrown Vegetation
63
13
Trees which over arch roofs become fire hazards and run the risk of roof and
structural damage in the event of a severed limb. Yards with heavy shrubs, tall
grasses, out of control ivy beds become breeding grounds for rodents and, after one
of Southern California's common droughts, a fire hazard. Overgrown vegetation
might also hide street signs or interfere with electrical lines. IN addition, this
condition is indicative of neglected property maintenance and is a factor in lowering
property values.
Paint-related Issues
306
68
Chipped and peeling paint is an example of a blighting condition which, in
conjunction with the other Blight Indicators above and below, becomes an
overwhelming condition of blight as it indicates that fundamental property
maintenance issues have been sorely lacking.
36 11
• Report to the City Council
Rosemead Community Development Commission
TABLE 2
DETERIORATION
DILAPIDATION AND
Blight Indicators ; sw b r
Protect Area
Profeck Area
,
-
`
`
{Y
4r -
:
W
t't0 't
No Z
.
'w
.
t
t,
3_.
, x.y s-r
i Y:,.
.
Damaged Roof
65
18
Roofs offer protection against the elements and, when deteriorated or damaged,
structures run the risk of internal water damage, which weakens the integrity of the
structure, and exposure to wind, drafts, and vermin or insects. In the most severe
cases, roof damage can lead to its collapse, rendering the structure uninhabitable
and potentially fatal.
Deteriorated Secondary Structures
95
14
A deteriorated secondary structure strongly indicates fundamental property
Note that 102
Note that 18
maintenance issues are sorely lacking and/or that it was constructed of
secondary
secondary
substandard material, which was unable to withstand normal weathering and wear
structures were
structures were
and tear.
observed on
observed on
these 95parce/s.
these 14 parcels.
Unsafe Stairs or Walkways
32
3
Includes stairways or walkways are deteriorated (often evidenced by broken steps,
unevenness, etc.), missing handrails, have no traction on the surface (creating the
danger of being slippery when wet), or have obstacles limiting access to their safe
usage. Unsafe exterior stairs are an obvious hazard to persons entering and
exiting structures and become even more dangerous in the event of a need for
rapid evacuation of a structure. Unsafe stairways or walkways limit access to
structures & are dangerous to walk on, especially with young children or the
elderly.
Inadequate Weather Protection
115
30
Includes holes in exterior surfaces or large areas of exposed bare wood. This type
of blight shows economic disinvestment since repairs (sometimes fairly expensive)
are required for the structure. Additionally, holes in walls or mofs and bare wood
have some health and safety issues associated to it (i.e. moisture can get inside of
the walls causing dry rot, fungus, etc.).
Of the 1,387 individual parcels in the two Project Areas, 739 parcels (53%
of all parcels) exhibited one or more indication of structural dilapidation or
deterioration discussed in this subsection.
Note that a number of the blighting conditions listed above provide direct
examples of long-term neglect. Such items as broken or deteriorated
fences or walls, deteriorated fixtures or mechanical equipment,
foundations, peeling or chipped paint, worn and inadequate roofs or roof
structures, unsafe or missing stairways, and deteriorated weather
protection do not happen overnight. Rather they slowly manifest
themselves, as if accreted from the very structures they deface, over
years of neglect, poor maintenance, or abandonment.
5.1.1.3 Construction that is Vulnerable to Serious Damage
Unsafe and unhealthy conditions can also be found on properties where
inadequate construction or certain alterations creates significant blight.
37
Merger Amendment to the Redevelopment Plans
for the Rosemead Redevelopment Project Area Nos. 1 and 2
Specific Blight Indicators relating to "Construction" that were observed on
each parcel are identified in Appendix D.
Specific occurrences of construction that is vulnerable to serious damage,
and a description of each type that was found in the Project Areas, are
shown in Table 3.
TABLE 3
INADEQUATE CONSTRUCTION
Blight Indlcators y~ _
pro ect Area'
Pro ect
r
a,
ei
Unpermitted Addition (occupied)
38
1
Includes construction that is affected by poor quality workmanship and/or faulty
materials, suspect construction techniques, or that violates local building codes.
Unpermitted room additions become a health and safety issue to the extent that
such additions are not made to code, which puts occupants at risk.
Unpermitted construction is a serious condition and one which can cause untold
problems. For instance, the California Real Estate Inspection Association, in a
press release dated August, 2005 provides that "[n]on-permitted work is frequently
performed by unlicensed individuals. Few unlicensed individuals are competent in
all areas of building and safety, especially where electrical wiring is concemed.
Professional home inspectors see countless non-permitted additions and report
most have significant problems. Although the finished projects may appear
satisfactory, defects and code violations of various kinds often belie an attractive
finished surface."
Unpermitted Addition (unoccupied)
60
5
Unpermitted additions that are not regularly inhabited make the structure (both itself
and, in the case of an addition, to the main structure to which it is attached)
vulnerable to serious damage For example, a number of "carport" constructions
were located over existing driveways in front of the existing garage. Were these
structures to fail, not only would the carport structure itself collapse, but the main
structure itself would certainly be damaged and the supporting wall may even
collapse. In either case, serious damage would accrue both to the carport structure
itself and to the main structure as a result of the faulty use of a construction
material or inadequate construction.
Boarded Occupied Structure
12
5
Includes the permanent boarding of one or more windows or doors. Occupied
structures with boarded-up openings are unhealthy to residents and visitors due to
the reduction in light and ventilation. Additionally, boardings are not always
professionally completed, generating the potential for loose boards, exposed nails,
or jagged edges. Based upon the need for fresh air and light within structures, the
Uniform Building Code has consistently required a minimum ratio between room
floor area and exterior opening (or, for interior rooms, ventilation fans). When such
openings are boarded up, the specific room, by definition, becomes an unsafe and
unhealthy environment.
Boarded Unoccupied Structure
3
3
Includes the permanent boarding of one or more windows or doors on structures
that are apparently unoccupied. As with those above, many are not always
professionally completed, generating the potential for loose boards, exposed nails,
or jagged edges. Buildings that are boarded and unoccupied for extended periods
of time show an economic disincentive and negative aesthetic impact.
38
0 Report to the City Council
Rosemead Community Development Commission
TABLE 3
INADEQUATE
Pa
rcels"d
.
a
t „~Bhght Indicators ~ > ~ _ "
~r~r r~ + -
Prolect
'Area
Rrotect
~
,
1
,
Area N
2
'
1
,
o.
,
Faulty Construction Materials
2
D
Poor construction materials are typically chosen to lower construction costs.
Unfortunately, these tend to fail or deteriorate more rapidly than more standard
materials. This indicator also represents health and safety issues since there is a
greater chance of structural failure with faulty construction materials in the event of
earthquakes, floods, etc.
Faulty construction materials cannot easily be replaced without gutting the entire
structure and "starting over." Such materials make any structure extremely
vulnerable to serious damage by their very nature.
Impaired Access to Building Exits
7
1
This condition includes buildings with insufficient exits according to the Uniform
Building Code or exits blocked by vehicles, trash bins or items being stored on the
other side of the exit door. In the case of a fire, people could be trapped in the
building and be burned or killed, creating a substantial health and safety risk.
Of the 1,387 individual parcels in the two Project Areas, 120 parcels (9%
of all parcels) exhibited one or more indication of poor construction
discussed in this subsection.
Note that a number of the blighting conditions listed above provide direct
examples of vulnerability to serious damage, particularly in the event of a
seismic event. Such items as room additions or other structures that
have not been permitted may be found to be directly responsible for
structural collapse, while conditions such as faulty construction materials
or impaired or inadequate access to building exits will indirectly cause
serious damage if the seismic event is strong enough or if they are found
in combination with other blighting conditions.
5.1.1.4 Faulty or Inadequate Water Utilities
According to City officials, most of the two Project Areas are affected by
four very serious conditions:
Substandard fire hydrants that are not up to code
Insufficient spacing of fire hydrants
Structures greater than the minimum distance from a fire hydrant
Inadequate fire flows, which is the amount of water and water pressure
that comes out of a fire hydrant
When hydrants and fire flows are below standard, there is inadequate
service to stop fires, which puts numerous people and structures at risk.
These problems are an immediate threat to life safety and property
damage in the two Project Areas.
39 1
0
Merger Amendment to the Redevelopment Plans
for the Rosemead Redevelopment Project Area Nos. 1 and 2
According to City officials, of the 1,387 individual parcels in the two
Project Areas, an estimated 1,040 parcels (75% of all parcels) are
affected by the inadequate fire safety issues discussed in this subsection.
5.1.1.5 Statement that there are Unhealthy and Unsafe
Buildings and that Significant Blight Remains in the
Project Areas
A review of Appendix D shows, and as-demonstrated above, unsafe and
unhealthy conditions come in multiple forms within the Project Areas.
Generally, such conditions as serious code violations, deterioration, and
inadequate construction, and a faulty water system were found to create
buildings that are unsafe or unhealthy in which to live or work. Overall,
55% of the parcels in the Project Areas exhibited at least one of these
conditions.
Based upon this information, the City Council may make the finding that
the incidence of remaining blight, as defined in CCRL Section
33031(a)(1), is significant.
5.1.2 Conditions That Prevent or Substantially Hinder the
Viable Use or Capacity of Buildings or Lots
The physical blight caused by structures of substandard, defective or obsolete
design or construction is created by many of the same conditions as those which
make these buildings unsafe or unhealthy for persons in which to live or work. A
"substandard" or "defective" structure will be substandard or defective specifically
because, for instance, electrical hazards, deteriorated exterior structural support
walls, or non-permitted garage conversions make it substandard or deficient or
because its design is either substandard in and of itself or has become obsolete
due to changing demands or requirements. Not coincidentally, these Blight
Indicators, as well as many others, act to make structures unhealthy or unsafe to
inhabitants while, at the same time, making the structure itself substandard or
defective. On the other hand, an "obsolete" structure may not be unhealthy or
unsafe; it may simply not be either "viable" or it may be "substantially prevented"
from being viable.
Because conditions identified in CCRL Section 33031(a)(2) are, in many ways,
similar to those identified in CCRL Section 33031(a)(1), much of the evidence
utilized in this portion of the Report has already been addressed in Section 5.1.1,
the evidence here is used to show its negative impact on the viable use of
buildings and land parcels rather than its negative impact on human health and
safety. When reviewing the below discussion, please refer to Appendix E which
graphically shows the degree of blighting conditions, by parcel, which
cumulatively prevent or hinder the viable use or capacity of buildings or lots in the
two Project Areas. As described above, a breakdown of the Blight Indicators
found on each parcel is found in Appendix D.
Specific occurrences of serious issues, and a description of each type that was
found in the Project Areas, are shown in Table 4 below.
40 1
0 Report to the City Council
Rosemead Community Development Commission
TABLE 4
CONDITIONS .-HINDER VIABLE USES
k xr
s t
or P
' y
arcels;
r
,
,
Blight Indrea4ors o
n~M ~ `
Pro
ect
P
~otect
_
,
t
Area"NoW1
_
,
'Aie6
No
2.
,
.
Adult Businesses and Payday Lenders/Pawn Shops
1
4
Adult businesses may attract criminal behavior into the neighborhood. There has been
much literature on the negative effects of adult businesses, including liquor stores and
bars, linked to crime. The cumulative effects of numerous such businesses in a relatively
small area become a significant blighting issue.
Individually, payday lenders or pawn shops are minor examples of economic
disinvestment. Collectively, several such establishments show economic disinvestment.
Bars on Doors and/or Windows
690
80
Metal bars covering doors and/or windows is a significant indicator of a high crime area
as well as a potential fire escape hazard. Even if the local crime rate is low, bars on
windows gives an area an unsafe look, which reduces values and is an economic
disincentive to invest in the area.
Functional Obsolescence
9
4
Often found in converted buildings where the converted uses are incompatible with the
design and layout of the building. This indicator is principally economic disinvestment.
Typically, the building floor plan, water and waste systems, and parking facilities were not
designed for the adopted re-use of the building and do not serve the present use well.
While the design of these structures may have been appropriate at one time, now their
design is obsolete given present zoning standards and building codes. Functional
obsolescence is a major contributor in determining if a structure is viable or not. The way
a structure "functions" precisely dictates its viability. For instance, a structure designed to
function as a 25,000 square foot grocery store would be viable when such stores were
"typical", however, as grocery stores grew to 35,000 and 42,000 square feet, the structure
become non-viable as a grocery store and of reduced viability as any other commercial
use. 12 Similarly, three-bedroom, one bathroom residences become less viable as
modem designs call for three-bedroom, two and a half bathroom residences. Again, a
residential property built on a residential street that has transitioned into a commercial
street will no longer serve a residential use appropriately but will not be property designed
for a commercial use.13 The small grocery store, the under-bathed residence, the house
on the "main drag" all function at a lower level of viability than similar structures whose
design more closely fits the current needs of a grocery store, a family or a commercial
establishment.
Graffiti
340
85
Similar to bars on windows and/or doors, graffiti indicates a high crime area with the
likelihood of gang activity or other anti-social behavior. This type of vandalism is one of
the most-recognized indicators of a blighted area.
" Note, however, that smaller "niche" grocery stores are returning to viability. The older 25,000 square foot grocery store may
still be viable, however, depending upon its location it still might not return to its original viability.
13 The fact that some residences have been retrofitted to commercial uses does not gainsay the argument; such retrofits are
not the norm and those that are retrofitted tend to be occupied by second tier commercial uses such as tarot reading, etc.
41 1
•
Merger Amendment to the Redevelopment Plans
for the Rosemead Redevelopment Project Area Nos. 1 and 2
CONDITIONS
Blight Indicators 'I~ i , F~,a
" ~ k
`project
Project
n
~E k 4
`Area No 1
Area N
2
,
o:
Garage Conversions
12
1
A garage conversion speaks both to overcrowding and to the potential for improper
construction. Unpermitted garage conversions can also become a health and safety
issue to the extent that such conversions are not made to code.
In addition, these garage conversions degrade the design of a structure, typically a single
family residence, which included covered, off street parking for at least one and often two
automobiles. Local codes require garage parking for single family residences, therefore,
the deletion of these garages from the single family residence makes their current design
illegal and inadequate, such a departure from standard design hinders the viable use of
the structure. Further, to the extent that covered, garage space is unavailable, residents
will park their cars either on the lot (thereby hindering the use and capacity of the lot as
well) or on the street (causing more congestion on the public right-of-way).
Poor Site Ingress/Egress
66
27
Poor site ingress and egress is a function of substandard site design and hinders the
viability of a parcel in at least three ways. A parcel is fully viable only to the extent that it
can be accessed from the public way or navigated once accessed. To the extent such
access or internal layout is substandard or inconvenient, the viable use of the parcel
diminishes. Secondly, points of access to a parcel or the location of structures on a
parcel dictate parking, access to structures, view-ways, potential for additional
development, etc. These considerations, in turn, help determine the building "coverage"
for the parcel. Less coverage means less use and, consequently, lower viability. Finally,
poor ingress/egress is a direct safety hazard as emergency vehicles are slowed, and
sometimes prevented, from arriving at their intended destination.
Inadequate Loading or Docking Facilities
23
0
Related to functional obsolescence, inadequate loading/docking facilities are evidenced
through supply trucks blocking rights-of-way or unloading at a distance from the
loading/docking facility.
The structure was not constructed with facilities which provide for a smooth transition of
products from the point of origin to the structure, which puts a particular property at an
economic disadvantage. Also, trucks at these buildings often block public rights-of-way,
producing a potential health and safety issue.
Poor Construction Quality
14
12
A significant part of the economic value of any structure is decreased by how the building
is constructed. The use of less-expensive materials (such as corrugated steel) and
construction techniques decrease the value of the structure since the value present from
excellent construction quality is never there.
Poor construction quality is an example of economic disinvestment since costs were cut
during the construction phase, producing a poorer quality product
Deteriorated or Absent Private Infrastructure
122
29
These involve driveways, walkways, etc. that are either unpaved or deteriorated, which
demonstrates an economic disinvestment.
42 1
•
• Report to the City Council
Rosemead Community Development Commission
TABLE 4
• C014DITIONS THAT PREVENT •-HINDER VIABLE USES
1 w f t `
" „
~
#or Parcels
,r
y
r i o Blight Indicators:, r
Project
Protect -
'
Area No 1
,
,
A~eaNo
-12
.
.
Poor Site Layout
153
42
The improper placement of structures on a parcel goes directly to substandard site design
and hinders the carrying capacity of the site. Often, poor site layout will evolve from a
series of ad hoc constructions over time where subsequent uses cannot be
accommodated in the original structure. Additional structures are built where and as
immediately convenient with no thought to the ultimate development potential for the site.
In summary, the total development on the site is dense enough to preclude additional
development, but not so dense as to fully utilize the full capacity of the site.
Security Fencing
523
46
Security fencing is often indicative of high crime in an area and, when it exceeds certain
heights, can be illegal itself. As with other visible forms of crime prevention, such as bars
on windows, security fences give an area an unsafe look, which reduces values and is an
economic disincentive to invest in the area. In addition, they can hinder or prevent
emergency personnel from reaching their intended destination.
Substandard Design
11
3
This condition is different (and more difficult to rectify without redevelopment) than other
forms of blight described above. If a well-designed structure begins to exhibit signs of
deterioration, it still retains a potential for viable use which may be retrieved by
rehabilitation. However, the value in a poorly designed structure cannot be "retrieved"
simply by rehabilitation since the greater value was never present As a consequence, a
building which would otherwise exhibit one level of use, because of its poor or antiquated
design, exhibits a lesser level of use.
Substandard design leads as much to economic "blight" as it does to physical blight.
Even though an older building may be structurally sound, absent any other indications of
value its functionally obsolete interior layout will force a rental or sales discount, thereby
creating economic characteristics further exacerbating conditions of blight. In short,
substandard design will permanently devalue a property + either by making it less
marketable or by requiring expensive redesign and rehabilitation or reconstruction. Such
design deficiencies tend to become deleterious over time, leading either to "bootlegged"
improvements or actual abandonment. Regardless of whether or not a structure is
sound, substandard design will lead to rental discounts and/or sale prices that lead to
disinvestment, causing conditions characterizing blight. It is highly unlikely that private
enterprise acting alone will not value such buildings as designed, as served by public
infrastructure, and as built to the degree it would value other buildings with more modem
amenities. In short, the viable use of these poorly designed structures is "hindered."
Of the 1,387 individual parcels in the two Project Areas, 1,120 parcels (81 % of all
parcels) exhibited one or more indication of conditions that prevent or
substantially hinder the viable use or capacity of buildings or lots discussed in
this subsection.
5.1.3 Statement that there are Conditions in the Project Areas
Which Substantially Hinder the Viable Use or Capacity
of Buildings or Lots and that the Incidence of these
Conditions is Significant
A review of Appendix D and the above text will show that conditions caused by
substandard, defective, or obsolete design and construction which prevent or
43
Merger Amendment to the Redevelopment Plans
for the Rosemead Redevelopment Project Area Nos. I and 2
substantially hinder the viable use or capacity of buildings or lots exist throughout
the two Project Areas. Generally, such conditions as adult businesses, high
crime indicators, obsolescence, poor construction, and site layout issues were
found to create an area that is at an economic disadvantage, which substantially
hinders the viable use of the area. Overall, 81% of the parcels in the Project
Areas exhibited at least one of these conditions.
Based upon this information, the City Council may make the finding that the
incidence of blight as defined in CCRL Section 33031(a)(2) in the Project Area is
significant.
5.1.4 The Existence of Irregular, Subdivided Lots in Multiple
Ownership Whose Physical Development has been
Impaired Given Present Conditions
CCRL Section 33031(a)(4) provides that a physical condition which causes blight
consists of subdivided lots which are: i) in multiple ownership; and ii) whose
irregular shape; and iii) whose inadequate size; iv) impairs.their development; v)
given present: (a) general plan; (b) zoning standards; and (c) market conditions.
This requirement is inclusive rather than contingent; i.e., each such subdivided
lot must exhibit all of conditions (i) through (v) and condition (v) accrues only if
one of factors (a) through (c) is present. This Report identifies these subdivided
lots in the following fashion:
All parcels of "inadequate size" based on the City's zoning standards were noted.
Where zoning standards do not include a minimum lot size, UFI uses its
professional experience to identify inadequate lot sizes. Irregular-shaped parcels
were also identified in this manner. These parcels have been selected based
upon the fact that full development of them would be impaired from an economic
efficiency point of view.
A traditional method of determining the "carrying capacity" of a parcel of land is
to determine maximum building "envelope" available on that parcel after parking,
landscaping, setbacks, and other limiting factors have been considered. Parking,
especially on land whose intrinsic value does not make underground parking
economically feasible, tends to be the major consideration as to the size of the
building envelope. Parking layouts demand specific minimum dimensions to
accommodate turning radii, standard parking spaces, and efficient traffic flow.
Where parcels are of regular shape, the land designer is able to efficiently
accommodate these demands. Where parcels are of irregular shape, the
designer must waste that irregular portion of the lot which cannot accommodate
these demands. That wasted portion represents lost building envelope and,
consequently, lost economic value from development.
Generally, such conditions as lots narrower than allowed under the Zoning
Ordinance, excessively deep parcels, flag-shaped parcels, and landlocked
parcels were found. Of the 1,387 individual parcels in the two Project Areas, 106
parcels (8% of all parcels) fit all criteria for designation as blighted parcels
pursuant to CCRL Section 33031(a)(4).
44
•
0 Report to the City Council
Rosemead Community Development Commission
5.9.5 Statement that there are Irregular, Subdivided Lots in
Multiple Ownership Whose Physical Development has
been Impaired Given Present Conditions and that the
Incidence of these Conditions is Significant
A review of Appendix D and the above text will show that parcels of irregular
shape or size exist throughout the two Project Areas. Overall, 106 of the parcels
in the Project Areas exhibited this condition. Based upon this information, the
City Council may make the finding that the incidence of blight as defined in CCRL
Section 33031(a)(4) in the two Project Areas is significant.
5.1.6 Statement Providing Compelling Evidence There are a
Substantial Number of Parcels in the Project Areas that
Suffer from Indications of Physical Blight and that Such
Blight is Significant
A review of the information provided above and in Appendices D and E will show
that there are a substantial number of parcels in the Project Areas that are
affected by conditions of blight. In fact, of the 1,387 individual parcels in the two
Project Areas, 1,183 parcels (85% of all parcels) have at least one physical blight
characteristic.
The diffusion of the physical conditions which cause blight throughout the Project
Areas identified above make a successful effort on the part of private enterprise
acting alone to eradicate blight ineffective and a successful effort on the part of
government acting alone problematic unless the proposed Merger Amendment is
approved because the greater financial flexibility provided to the Commission
from a merger will generate additional means to make improvements.
Pursuant to the methodology set forth in this Report, in order to be considered by
the City Council as a parcel which exhibits physical blighting characteristics, that
parcel must exhibit two conditions with reference to the 20-point scale: i) the
parcel must have at least one Blight Indicator that reaches a level of seriousness
to equal at least 5 points, and ii) the parcel must have a sufficient number of
Blight Indicators so that their combined total equals at least 20 points.
Figure 5 shows those parcels in the Project Areas that fit this category and
exhibit sufficient evidence of physical blight such that the City Council could
make a determination, based upon the evidence contained in this Report and
graphically illustrated in Figure 5, that these properties exhibit conditions of
physical blight. Of the 1,387 parcels in the two Project Areas, 328 (24%) exceed
20 blight points. By comparison, only 190 parcels (14%) were found with no
blight points. Therefore, the amount of physical blight that remains in the Project
Areas is significant.
The presence of these serious conditions throughout the two Project Areas, in
the concentrations identified above and graphically reflected in Appendix E,
shows that the blight identified is not something which occurred over the past
year, or even the past several years. They represent a burden on the community
which mere "paint up, fix up" or other sorts of minimally corrective programs
cannot successfully address. The long-term neglect evident in the record
included herein is clear.
45
• •
Merger Amendment to the Redevelopment Plans
for the Rosemead Redevelopment Project Area Nos. I and 2
While municipal resources such as the City's General Fund or CDBG funds will
continue to be marshaled to address specific instances when and as they
become overwhelmingly apparent, only locally wielded instruments such as
redevelopment can continue to address the root causes of area-wide
vulnerability. This is the fundamental reason for the proposed Merger
Amendment as the increased financial flexibility of the Commission will be
needed to address these concerns.
5.2 ECONOMIC CONDITIONS DESCRIBED
The purpose of this section is to describe and evaluate economic conditions within
Rosemead Project Area No. 1 and Rosemead Project Area No. 2 recognized to
contribute to blight. The Project Areas are being evaluated in terms of blight that
remains present as indicated by selected economic conditions.
Economic conditions known to cause "blight" are explicitly defined in the Health and
Safety Code and reflect a diverse range of circumstances such as depreciated or
stagnant property value, residential overcrowding and poverty, inadequate retail-
commercial facilities, and crime and public safety risk. In contrast to the many physical
attributes of blight, related economic circumstances may not be as readily evident from a
visual inspection of the Project Areas. Such economic circumstances, nonetheless,
contribute to an environment that can effectively create economic dislocation or diminish
the fruit of efforts undertaken by private entities or the local government agency. This
section discusses economic conditions describing the Project Areas to determine
whether such circumstances cause a reduction or lack of proper utilization to such an
extent they indicate significant blight remains.
The approach used to evaluate circumstances that indicate economic blight remains in
the Project Areas relies on a comparison of conditions evident within the Project Areas
and corresponding conditions describing other portions of the City of Rosemead, the
Western San Gabriel Valley Region, or Greater Los Angeles County region. Alternate
reference areas are used to evaluate blight conditions because the Project Areas include
a unique concentration of certain land use activities intended to serve large portions of
the community, if not the community in its entirety. As such, the Project Areas play a
significant role in serving community economic needs.
The Project Areas encompass approximately 572 net acres (excluding street right-of-
way area) and account for about 22.0 percent of corresponding net acreage describing
the City of Rosemead as a whole, as summarized below:
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Rosemead Community Development Commission
ECONO
Total Net
TABLE 5
MIC
-
et
% Of
Ci ,
Existing Land Use
Acrea e t
L
a
Land Use
Land Use
Residential-Sin le Famil
1,601.6
18.2%
6.5%
Residential-Multi-Famil
140.9
M
6.1%
24.6%
Residential-Mobile Home
15.3
.
1.0%
37.2%
Retail-Commercial
290.7
33.4%
657%
Industrial
82.6
3.19%16
25.3
4.4%
30.6%
Office Professional
106.2
4.0%
97.1
17.0%
91.4%
Public
205.3
7.7%
97.4
17.0%
47.5%
Quasi-Public
104.8
4.0%
5.9
1.0%
5.7%
Vacant
25.0
0.9%
11.2
2.0%
44.8%
Open Space
24.9
0.9%
0.0
0.0%
0.0%
ncultural
51.8
2.0%
0.0
0.0%
0.0%
Net Totals:
2,649.0
100.0%
572.2
100.0%
21.6%
Note:' Total Net Acreage excludes street ri ht-of-wa and other selected public right-of-ways.
Source: LA Countv Assessor, Gooqle Earth; Alfred Gobar Associates.
As the above comparison of land use illustrates, blight conditions that remain within the
Project Areas have the potential to significantly affect conditions throughout the larger
Rosemead community. A substantial share of retail-commercial and employment-
generating land use that serves the community is concentrated within the Project Areas.
5.2.1 Poverty and Residential Overcrowding
5.2.1.1 Prevalence of Poverty
Poverty reflects a structural economic deficiency that affects nearly every
community to various degrees. Poverty conditions tend to fuel
disincentives for market-driven investment and limit economic growth of
individual households, the resident community as a whole, and even local
businesses. Poverty is an attendant condition to overcrowding. Incident
rates of overcrowding are substantially higher among households with
incomes up to 200% of the federal, defined poverty level or below the
State median income. Substantially higher rates of overcrowding among
households with income exceeding the poverty level may indicate
households are slow to use added income to escape from overcrowding,
because they prefer to use their still relatively limited finances for more
urgent priorities. [Journal of the American Planning Association, v. 62
(Winter'96) p. 66-84]
When poverty conditions are prevalent, economic objectives of
households and businesses face inordinate challenges. Increased risk of
failure faces individual households that undertake property improvements
(i.e., home repair, home remodeling, etc.) because a disproportionate
number of surrounding households lack financial resources to respond in
47
MergerAmendment to the Redevelopment Plans •
for the Rosemead Redevelopment Project Area Nos. 1 and 2
like manner. Property improvement by local merchants and landlords
(i.e., property maintenance, center/store remodeling, etc.) also face
increased risk of failure often because the effort is not echoed by enough
adjoining businesses to have meaningful long-term impact in the
community. When poverty conditions are prevalent, risk of inadequate
commercial facilities is elevated because a disproportionate share of
households lack the financial resources to support business investments
aimed at providing a convenient selection of products and services
needed by economically disadvantaged residents (such as consumer
merchandise, personal services, adequate housing conditions, health
insurance, banking and financial services, etc.).
The U.S. Bureau of Census is one of the two federal agencies that
calculate poverty income levels (the U.S. Department of Health and
Human Services prepares similar calculations) to determine the number
of American households living in poverty. The Census prepares poverty
income calculations annually and utilizes such calculations to provide a
comprehensive assessment of poverty households as part of the
decennial Census. The poverty level is determined from a nationwide
survey, without adjustment of geographic differences, and in 2000 ranged
(on a weighted average basis) from $8,794 per year for a single-person
household to $17,603 per year for a four-person household. Due to the
rigid method used to calculate poverty since the 1960's, poverty income
levels currently recognized by the federal government are under
increasing scrutiny due to their inability to accurately assess the
proliferation of economically distressed households within a given region.
The failure to increase the poverty thresholds as incomes have grown
(adjusted for inflation) means those who fall below the poverty line are
worse off relative to the typical (median) family now than they were 30
years ago (Economic Policy Institute - Washington D.C.; Poverty and
Household Budgets FAQ-www.epi.org).
About 96.0 percent of residential land use acreage within the Project
Areas is located in Project Area No. 1 (138 out of 144 acres). The
methodology used to evaluate conditions of poverty and overcrowding is
summarized as follows. Poverty data describing Project Area No. 1
households is based on the 2000 Census-latest comprehensive data
describing household poverty and overcrowding for non-standardized
Census geographies. Poverty and overcrowding data is reported by the
Census according to Block Groups-the smallest geographic reporting
unit used to measure conditions endemic of the individual Census Blocks
being grouped together. Distinct sub-areas that make up residential
portions of Project Area No. 1 and Census Block Groups are compared to
select the best-fit physical match possible for analysis. The physical
alignment and overlap of Block Group and Project Area No. 1 boundaries
are evaluated to determine the extent conditions that describe all Block
Group households are indicative of study area conditions.
A Census-based assessment of poverty in Project Area No. 1 is
summarized in Appendix F-1, in terms of the share of households living in
poverty, share of population living in poverty, and other selected poverty
48
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Rosemead Community Development Commission
characteristics. Appendix F-1 describes the best-fit assignment of several
Census Block Groups (Block Group No's: 4336.01-1; 4336.01-2; 4824.01-
1; 4824.01-3; and 4825.03-1) used to represent the vast majority of
residential units within Project Area No. 1. As shown, 24.8 percent of
Project Area No. 1 households live in poverty conditions compared to
19.1 percent of all households throughout the City and 15.1 percent
throughout the County. In effect, the proportion of poverty level
households living within Project Area No. 1 is 1.64 times greater than is
true for the County overall.
The significance of poverty as a detrimental influence is also evident in
terms of affected population. In May 2006, the Public Policy Institute of
California released results of its 2004 study of poverty in California that
compared the 24 largest counties in California against a Statewide official
poverty rate of 13.0 percent and national poverty rate of 12.0 percent.
Officially, 16.0 percent of Los Angeles County residents lived in poverty
during 2004, which ranked the County fourth highest among the 24
largest counties in the State. By comparison, the proportion of residents
within the City of Rosemead (22.8 percent) and Project Area No. 1 (26.3
percent) that were living at or below the poverty level at the time of the
Census was substantially higher than was true for Los Angeles County
(17.9 percent). Despite a decline in the share of Los Angeles County
residents living in poverty between 2000 and 2004, data in Exhibit V-1
provides a strong indication that a disproportionately high share of Project
Area No. 1 residents continue to live in poverty.
Further review of the data in Appendix F-1 indicates "family' households
also make up a disproportionate share of poverty households living in
Project Area No. 1. A family includes a householder and one or more
people living in the same. household who are related to the householder
by birth, marriage, or adoption. In Appendix F-1, family households are
divided in "Married-Couple Family Households" and "Single Parent Family
Households." Family households that live in poverty account for 20.9
percent of all households in Project Area No. 1, a level 2.1 times higher
than the County average. The incidence of single-parent families living in
poverty within Project Area No. 1 is also very high. Single-parent families
that live in poverty account for 9.8 percent of all family households within
Project Area No. 1, a level 1.9 times higher than the County average.
Appendix F-2 provides a bar graph comparison of the share of Project
Area No. 1 residents that live at or below the poverty level and at
alternate income levels described as a ratio of the federal poverty level.
The graphic comparison clearly shows that the City of Rosemead as a
whole hosts a disproportionately higher share of households living near or
below the federal poverty-level than is true of Los Angeles County, which
ranked 4th in the State as having the highest share of poverty
households. Also evident from the bar graph comparison is that a
disproportionate share of City households impacted by poverty conditions
are concentrated within Project Area No. 1. The high concentrations of
Project Area No. 1 households that live in poverty conditions strongly
suggest the probable rate of overcrowding is also significantly higher than
49
Merger Amendment to the Redevelopment Plans 0
for the Rosemead Redevelopment Project Area Nos. 1 and 2
is true for the City of Rosemead or Los Angeles County. Finally, the high
incidence of poverty in Project Area No. 1 also suggests an inordinate
share of households suffer a lack of financial resources needed to
adequately invest in maintenance and upkeep of residential properties, to
pay for other household expenses fundamental to a quality standard of
living (transportation, medical, educational, cultural, etc.), and to create
opportunities for socioeconomic advancement.
5.2.1.2 Prevalence of Overcrowding
The economic health of the Project Areas can be affected by
overcrowded conditions in the same manner residents and businesses
can be displaced from healthy economic growth when an area is
impacted by poverty. Residential overcrowding is widely recognized as
an important housing problem, and per room density of people (persons
per habitable room - PPR) reflects a common standard used to measure
the incidence of overcrowding. Habitable rooms are recognized to
include bedrooms, living rooms, dining rooms, etc., but exclude kitchens,
baths, hallways, and garages. Section 33031 (b) (5) cites overcrowding
as an economic condition indicative of blight. The particular PPR
standard used to measure overcrowding has changed over time. The
conventional standard applied by local and federal governments in 1940
was 2.00 PPR, but it was lowered to 1.50 PPR by 1950 and down to 1.00
PPR in 1960. [Journal of the American Planning Association, v. 62
(Winter '96) p. 66-84] The U.S. Department of Housing and Urban
Development currently defines "overcrowding" as housing that has more
than 1.00 PPR and "severe overcrowding" as housing with more than
1.50 PPR. A prevalence of overcrowded housing conditions is also
indicative of individuals and families who are economically disadvantaged
and more likely to be exposed and/or impacted by social challenges
(unemployment, alcohol and substance abuse, crime, truancy, language
and literacy deficiencies, etc.) that contribute to blight within a local
environment.
The research approach that guided the analysis of poverty conditions
closely reflects the methodology used to evaluate occupancy. Appendix
F-3 provides a detailed comparison of household occupancy in Project
Area No. 1, the City of Rosemead, and throughout Los Angeles County.
Described is the proportionate mix of households according to distinct
levels of occupancy per habitable room and by type of tenure. For all
occupied housing (both owner and renter households), the proportion of
overcrowded Project Area No. 1 households with 1.01 to 1.50 PPR (17.2
percent) is 2.2 times higher than the County as a whole (7.9 percent). By
contrast, the proportion of severely overcrowded Project Area No. 1
households with more than 1.5 PPR (28.0 percent) is 1.9 times higher
than Los Angeles County as a whole (15.0 percent). As a matter of
perspective, the indicated rate of severe overcrowding within Project Area
No. 1 (28.0 percent) is more than 10 times greater than the corresponding
rate for the United States (2.7 percent). The prevalence of overcrowded
housing within Project Area No. 1 exceeds the Countywide average, while
the corresponding incidence of severely-overcrowded housing is also
significantly higher than is true for the region.
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Rosemead Community Development Commission
Homeownership is a significant factor that contributes to social and
economic stability within a community and to the long-term potential for
discretionary household investment in the maintenance and care of
property. The level-payment structure that characterizes traditional long-
term mortgages enables middle-income owner households to redirect
future income to upgrade property improvements, add living space, or
redirect accumulated equity into a larger home. In a setting such as
Project Area No. 1 where poverty is prevalent, the portion of future
household income that can be redirected to non-essential spending,
including significant flooring, fixture, and furnishing upgrades or larger
living quarters to host extended family, is substantially less than for non-
poverty households. Poverty conditions previously discussed serve to
increase the probability overcrowded housing conditions will persist. The
share of Project Area No. 1 owner households that suffer from severely
overcrowded living conditions (17.6 percent) is 2.4 times the level that is
true for Los Angeles County (7.4 percent). As a result, homeowner
residents living in Project Area No. 1 are significantly more likely to
remain in severely overcrowded housing conditions than is true in other
areas of Rosemead or Los Angeles County.
Neighborhoods with a heavy mix of renter households tend to host a
transient population base, which most often demands a higher level of
police protection service. In addition, land owner maintenance of property
tends to erode in the neighborhoods heavily dominated by low-income
renter households. Renters are much more prone to crowding than are
owners. [Myers, Dowell.; Baer, William C.; Choi, Seong-Youn. 1996 The
Changing Problem of Overcrowded Housing. Journal of American
Planning Association., v.62 (Winter '96) p. 66-84]. Renter-occupied
housing accounts for 56.5 percent of all occupied housing in Project Area
No. 1. The overall share of renter-occupied housing in Project Area No. 1
is slightly higher than is true for the City of Rosemead (51.2 percent) or
Los Angeles County as a whole (52.1 percent). Although Project Area
No. 1 hosts a moderately high share of renter households, the share of
renter-occupied households that are severely overcrowded (36.0 percent)
is 1.6 times greater than is true for the County (22.0 percent).
A high concentration of severely overcrowded rental housing combined
with the transient nature of rental living creates an adverse and
substantial property maintenance challenge for landlords and likely
contributes to a disproportionately high rate of police response activity.
Appendix F-4 provides a graphic comparison of household occupancy
within Project Area No. 1, the City of Rosemead, and Los Angeles County
according to the alternate number of occupants per room. As shown, the
share of severely overcrowded households (1.51 or more occupants per
habitable room) is significantly greater in Project Area No. 1 than is true
for the County. The share of overcrowded households (1.01 to 1.50
occupants per habitable room) is also significantly higher in Project Area
No. 1 than is true for the County.
51 j
Merger Amendment to the Redevelopment Plans •
for the Rosemead Redevelopment Project Area Nos. 1 and 2
5.2.2 Adequacy of Commercial Facilities
Retail-commercial facilities within the Project Areas constitute an important
concentration of businesses intended to serve consumer needs within the
Rosemead community. Whether or not retail-commercial facilities within the
Project Areas adequately serve consumer need is influenced by a multitude of
factors including share of retail throughout the community hosted within the
Project Areas, variety of stores in operation, merchandising strength of retailers,
and base of resident-consumers served, to name a few. Factors recognized
under California Redevelopment Law that indicate existing retail-commercial
facilities are inadequate include abnormally high vacancy rates, abnormally low
lease rates, high number of abandoned buildings, and serious lack of commercial
facilities that normally serve neighborhoods.
Retail-commercial development within the City of Rosemead as a whole is not
plagued by a high number of abandoned buildings or abnormally low lease rates,
but conditions describing vacancy and sales performance indicate existing retail-
commercial facilities are not adequately serving the needs of consumers in City
neighborhoods. Nearly two-thirds of all existing retail-commercial development in
Rosemead is located within the Project Areas. In addition, nearly 60.0 percent of
all land use activity within Project Area No. 2 consists of retail-commercial
development and Project Area No. 2 also hosts the largest supply of retail-
commercial space serving the community. Consequently, this blight analysis not
only serves to determine the adequacy of retail-commercial facilities in Project
Area No. 2 but also provides a reasonably good assessment of the overall retail
sector in Rosemead and its ability to serve consumer need in the community.
5.2.2.1 Abnormally High Vacancy Rate
A field audit of more than 1.0 million square feet of existing retail-
commercial space within Project Area No. 2 was conducted in June 2008
and identified an overall vacancy rate of 6.7 percent. Pro forma
schedules used to evaluate the income value of investment property
commonly uses a vacancy rate allowance of 5.0 percent to describe
stabilized operating conditions. Whether or not the level of retail-
commercial vacancy that describes commercial facilities within Project
Area No. 2 is abnormally high depends on vacancy rates describing a
large base of contemporary retail properties competing in the surrounding
region. Appendix F-5 compares the current vacancy rate describing
neighborhood-community retail space throughout Western San Gabriel
Valley and the greater Los Angeles Metro area and the corresponding
vacancy rate within Project Area No. 2. As shown, the current vacancy
rate within Project Area No. 2 (6.7 percent) is nearly 4.5 times higher than
is true for similar retail-commercial space in the Western San Gabriel
Valley region.
Appendix F-6 provides a graphic comparison of the vacancy trend for
neighborhood-community retail space throughout Western San Gabriel
Valley since the beginning of 2004 and the current vacancy rate
describing retail-commercial space in Project Area No. 2. As shown,
effective vacancy within Project Area No. 2 is abnormally high in
52
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Rosemead Community Development Commission
comparison to existing conditions and established trends describing retail
facilities within a relevant competitive setting.
5.2.2.2 Serious Lack of Adequate Retail-Commercial
Facilities
Retail-commercial adequacy, measured in terms of the ability to serve the
needs of consumers residing within a relevant trade area, is not only
defined by number of storefronts that are represented but also the
competitive strength of retail merchandisers occupying existing storefront
locations. A retail-commercial business plagued by weak sales
performance strongly suggests the retailer may lack sufficient floor space,
offer inferior products or services, or is not otherwise able to effectively
merchandise in a way that appeals to consumer needs and preferences.
When a retail-commercial district (such as Project Area No. 2) includes
several weak retailers, the anchoring strength (ability to pull in shoppers
from the surrounding area) is also weakened, and potential sales are lost
to other competing centers and districts. Consequently, a serious lack of
adequate retail-commercial facilities can exist when a retail center, retail
district, or community retail sector is characterized by a proliferation of
relatively weak competitors. In this regard, a retail-commercial district
may not have a serious lack of storefronts represented but lack of
effective retailers able to adequately serve consumer needs of the
surrounding area.
The City of Rosemead hosts about 57,500 residents, which constitute
consumers demanding products and services commonly provided in
retail-commercial space. The overall supply of retail-commercial space
within Project Area No. 2 exceeds 1.0 million square feet (Refer to
Appendix F-5) and arguably constitutes the largest aggregation of
storefront activity serving consumer needs within the Rosemead
community. Appendix F-7 provides a bar graph comparison of the mix of
occupied retail-commercial storefronts audited within Project Area No. 2.
The bar graph summarizes the mix that describes 276 occupied
storefronts classified according to 10 store-group categories. The bar
graph also illustrates the corresponding mix of storefronts that typifies a
contemporary neighborhood-community retail center or district, based on
a large sampling of retailers as reported in the Urban Land Institute -
2006 Dollars and Cents of Shopping Centers. Store group categories
identified in the bar graph are further distinguished in terms of businesses
engaged in merchandising the sale of retail products (core sales tax
generating activity); businesses engaged in providing consumer-business
services (incidental sales tax generating activity); and businesses
engaged in professional practices and other non-retail office services
(negligible sales tax generating activity).
As shown in Appendix F-7, Project Area No. 2 is distinguished from a
typical neighborhood-community retail district by a significant undersupply
of apparel-shoe and food-grocery storefronts and relative oversupply of
furniture-appliance-electronic and dining-drinking-snack/beverage
storefronts. Project Area No. 2 is further distinguished by an oversupply
of storefront activities involving consumer-services (nail salons, auto
53 1
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Merger Amendment to the Redevelopment Plans
for the Rosemead Redevelopment Project Area Nos. I and 2
repair, etc.) and professional services (tax accounting, medical
practitioner, etc.). In terms of overall storefront representation, Project
Area No. 2 includes a moderate oversupply of storefronts providing
consumer-business services but substantial oversupply of storefronts
used to conduct office-based activities. A proliferation of office-based
activities within a retail complex tends to weaken its competitive appeal
and drawing strength because the storefront merchandising focus is
diluted by a heavy office orientation, which limits the opportunity to
combine multiple shopping objectives into a single trip as is possible in a
competitive retail district.
The State Board of Equalization (SBOE) provides regular reporting of
taxable sales transacted at retail and other businesses outlets within a
County or City. SBOE reporting of taxable sales activity for "retail outlets"
closely describes retail-commercial storefronts categorized as "retail
merchandising" activities during the field audit of Project Area No. 2
(Refer to Appendix F-7). The latest reporting data available from the
SBOE indicates there were a total of 558 retail outlets in Rosemead in
2006. By comparison, the field audit identified 137 retail merchandising
storefronts in Project Area No. 2 as of mid-year 2008. In effect, roughly 1
out of every 4 retail outlets within the City of Rosemead is located within
Project Area No. 2. Consequently, SBOE reporting of taxable sales
performance for all retail merchandising establishments throughout City
can provides some insight about the adequacy of retail-commercial
facilities within the Project Areas.
Appendix F-8 summarizes an inflow-(outflow) analysis of retail potential in
2006 based on the mid-year resident population of the City of Rosemead.
The primary objective of an inflow-(outflow) analysis is to identify total
taxable retail sales that city-based retailers should achieve (potential) if
the City's retail sector is effectively serving consumer needs of Rosemead
residents. Appendix F-8 identifies the actual level of taxable sales
realized by City-based retail outlets; potential sales activity suggested by
the resident population of Rosemead; and the corresponding inflow or
(outflow) of potential sales activity. Identified sales potential is
conservatively based on the 2006 effective level of per capita sales
describing all of Los Angeles County ($9,287 per capita), which is about
11.0 percent lower than the corresponding average for all of Southern
California ($11,438 per capita). Potential retail sales represented by the
resident population of Rosemead amounts to $532 million in taxable
sales, but City-based retailers have only been able to attract $256 million
in taxable sales. During 2006, City-based retailers, including retail
merchandisers within Project Area No. 2, failed to attract $275 million in
taxable sales, or 52.0 percent of expenditure potential representing
consumer need of City residents.
It is important to note, the City's existing retail sector is failing to
adequately serve consumer need for all store-type activities tracked by
the SBOE. As a whole, the City's retail sector is seriously lacking in its
ability to adequately serve the retail consumption needs of its resident
population. Given Project Area No. 2 and Project Area No. 1 account for
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Rosemead Community Development Commission
two-thirds of existing retail-commercial land use within the City, weak
sales performance evident from a review of SBOE data provides a
reasonably good indication about the adequacy of retail-commercial
facilities within the Project Areas.
A more specific evaluation of commercial adequacy, however, is possible
by comparing results of the June 2008 in-field audit of retail-commercial
facilities in Project Area No. 2 against a special tabulation prepared for
the City Finance Department that identifies store-specific sales tax
revenue generated in 2007. Appendix F-9 summarizes the general
results and data parameters guiding the location specific analysis of
commercial adequacy. A total of 276 occupied storefront locations were
identified by the field audit, including 137 retail merchandising businesses
(core sales tax generating activity) and 139 storefront businesses
providing consumer services or other non-retail services (activities
generating incidental and negligible sales tax). A special tabulation
prepared for the City Finance Department provided sufficient 2007 sales
tax data to evaluate 110 retail merchandising storefront businesses
matching results from the field audit. A total of 80.0 percent of all retail
merchandising storefronts and occupied floor space was evaluated in
terms of benchmark levels of sales performance used to evaluate the
adequacy of existing operations.
As shown in Appendix F-9, "Weak" or "Marginal" retail merchandisers
(stores with effective sales performance less than 75.0 percent and 90.0
percent of a corresponding benchmark reference) account for 62.0
percent of all retail merchandising storefront locations and 47.0 percent of
corresponding floor space existing within Project Area No. 2. By
comparison, "Strong" retail merchandisers (stores with effective sales
performance greater than 120.0 percent of a corresponding benchmark
reference) only account for 13.0 percent of retail merchandising storefront
locations and 26.0 percent of corresponding floor space. In short,
existing retail-commercial facilities within Project Area No. 2 are
dominated by weak or marginal retail operators.
Sufficient sales tax data was not available to evaluate all existing retail
merchandising storefront locations within Project Area No. 2. Appendix
F-10 identifies the proportionate share of storefront businesses evaluated
(dark blue versus light blue area) for selected store group categories used
to distinguish retail merchandisers, consumer service providers, and other
non-retail service providers. As shown, the analysis of retail sales
performance includes the vast majority of existing retail merchandising
businesses. Consumer-business service establishments and office-
based service activities are not included in this analysis, due to a lack of
available sales reporting data.
Appendix F-11 provides a detailed comparison of sales performance for
distinct groupings of retail merchandising activity in Project Area No. 2
and benchmark indices describing broad-based measures of market
performance. Overall, the benchmark level of sales performance used to
evaluate the adequacy of retail-commercial facilities is equal to $282 per
square foot ($282/SF) across a wide spectrum of merchandising
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for the Rosemead Redevelopment Project Area Nos. 1 and 2
activities. This benchmark reference reflects a median level of sales
performance describing an extensive sampling of neighborhood-oriented
retailers as reported in the Urban Land Institute - 2006 Dollars and Cents
of Shopping Centers. By comparison, the effective level of sales
performance describing all retail merchandisers in Project Area No. 2 is
equal to $207/SF, or about 73.0 percent of the level of sales used to
describe an adequate performing retail district that serves a
neighborhood-community oriented trade area.
The overall level of sales performance within Project Area No. 2 is
significantly influenced by a select number of strong operators that
account for 13.0 percent of retail merchandising storefronts and 26.0
percent of occupied retail space. Excluding these strong operators, the
effective level of sales performance that describes at least 62.0 percent of
retail merchandising storefront locations and 47.0 percent of occupied
space is equal to $81/SF, or only 29.0 percent of the benchmark
reference. Essentially, the majority of storefront locations occupying
nearly one-half of retail-commercial space within Project Area No. 2 are
weak retail operators lacking the ability to achieve a level of sales
performance commensurate with a retail district that adequately serves
the needs and preferences of consumers residing in surrounding
neighborhoods and the community.
Appendix F-12 illustrates the effective sales performance for an alternate
grouping of distinct retail merchandising activity in Project Area No. 2
described as an index of the corresponding benchmark performance level
used to evaluate retail adequacy. As shown, the overall level of relative
sales for each distinct group of retail merchandising activity is significantly
below the corresponding performance benchmark with the exception of
general merchandising and drug store activity, and limited-service
restaurant activity. The relatively strong sales performance that describes
general merchandising activity can be attributed in part to Redevelopment
program efforts aimed at renovating and updating the old Montgomery
Ward shopping center at the intersection of Rosemead Boulevard and the
1-10 Freeway. Relatively strong sales performance describing limited-
service and quick-serve restaurants reflects the inherent operating
strength of many national and regional chain outlets and a few strong
independent operators.
Excluding these two merchandising groups, effective sales performance
describing the vast majority of activity within retail-commercial facilities of
Project Area No. 2 is substantially below the corresponding benchmark
describing a median level of performance. More than 60.0 percent of the
retail merchandising storefronts within Project Area No. 2 are plagued by
substantially weak sales performance, and Citywide data indicates local
retailers are failing to attract more than 50.0 percent of expenditure
potential reflecting resident demand for merchandising products. These
factors provide a strong indication that retail-commercial facilities are
seriously lacking in the ability to adequately serve consumer needs and
preferences of residents living in surrounding neighborhoods and
throughout the Rosemead community.
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5.2.3 Public Safety and Crime
Public Safety is a top priority of governance due to its influence on critical
socioeconomic factors including the quality of life for area residents, operating
success of local businesses, and general economic health of the community.
Police protection services constitute the most common form of public safety
affecting the socioeconomic wellbeing of a community and the single-most costly
of public safety services that the City of Rosemead must provide in response to
taxpayer demands. Consequently, police protection services monopolize a
substantial share of relatively limited fiscal resources available to the City as it
seeks to respond to heightened demand for such protection.
The City Police Department is composed of safety personnel, equipment, and
safety program operations, which constitute a form of readiness capacity
available to the community through a structure of police patrol districts, or beats.
As such, mobilization of police resources in response to a call for service
effectively monopolizes a portion of available readiness capacity for the duration
of the response call. The interim monopoly of readiness capacity is an
operational aspect of providing police protection that is managed in the form of
second responders, mutual aid, back-up patrol, etc. When a given locale
generates a disproportionate number of calls for service (relative to other land
uses of a similar nature), it burdens the City's ability to provide satisfactory
readiness capabilities for the community at large. In effect, a locale that
generates a disproportionately high rate of service calls is itself a public safety
risk but also increases the public safety risk for other areas of the community
because it unduly monopolizes readiness capacity and places an economic-fiscal
burden on limited City resources.
Estimates of public safety requirements often rely on a personnel index (e.g.
sworn officers per 1,000 population) to calculate funding resources required per
increment of development activity. Population-based estimates fail to consider
service demands represented by nonresidential forms of land use such as retail
complexes and offices. In a given location, both nonresidential and residential
land uses drive police protection service demand. Alfred Gobar Associates
employs a methodology that assigns the incidence of public safety response on
the basis of demand per increment of land use served. This approach reflects
the notion that different forms of land use demand different levels of protective
service and associated resources. For example, the amount of protection
demanded per acre of low-density residential housing is different than demanded
for an acre of retail development. The following assessment of police protection
services demanded throughout the City and within the Project Areas reflects an
assessment of City response capacity, further distinguished on the basis of land
use activity served.
5.2.3.1 Police-Related Crime Risk
Appendix F-13 summarizes the incidence rate of response call activity per
acre of developed land use throughout the City. The identified rate (calls
per acre) describes incidence of demand for police protection services
generated by various forms of land use and building development over a
12-month period ending July 2008. The City of Rosemead contracts
Police services through the Los Angeles County Sheriff, which maintains
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dispatch record logs of response activity out of its Temple City Sub-
Station. The Temple City Sub-Station is the administrative and dispatch
center used to provide Sheriff protection services in the surrounding
unincorporated of West San Gabriel Valley and five contract cities,
including City of Rosemead. Sheriff dispatch records chronicle Police
response activity by address location in each area served (whether
initiated by a citizen call for service or officer-initiated response while on
patrol). Dispatch records indicate the City of Rosemead generated a total
of 65,475 responses to 44,082 unique incidents, including multiple officer
response activity, during the past year. This volume of response activity
equates to an average incident rate of 24.72 Police responses per acre of
land use area served. As shown, the incidence of demand describing
Police response activity varies by form of land use served, ranging from a
high of 45.30 responses per acre of retail-commercial development to
less than 1.00 responses per acre of vacant or undeveloped property.
A citywide incident rate of response activity (relative measure of demand
for police protection services) generally provides a reasonably good
overview assessment of the level of Police service required in a
community in order to deter or intervene crime-related public safety risk.
Response call activity, however, can vary significantly from community to
community due to the complex nature of land use, social conditions, and
fiscal influences. Some communities require a higher level of deterrence
and intervention in order to address the threat of crime and public safety
risk. A review of Police activity describing a range of communities of
varying size and population density provides a good benchmark reference
about the level of response activity that should be reasonably expected in
order to protect residents, businesses, visitors, and various forms of land
use from the threat of crime within a community.
Appendix F-14 details the incident rate of Police response activity per
acre of land use describing a diverse selection of California communities
arranged in ascending order on the basis of population density. Although
the City of Rosemead hosts less than 60,000 residents, it is densely
populated (over 14,000 persons per square mile). The selection of
identified communities is based on previous economic blight and fiscal
impact studies conducted by Alfred Gobar Associates during the past
seven years and provides a reasonably good indication about the level of
Police protection serviced (defined on the basis of response call activity)
required by alternate forms of land use in different community settings
(rural, suburban, urban).
Also shown in Appendix F-14, is the average incident rate of response
activity for all selected communities combined (overall average);
communities serving a relatively dense population base indicative of a
urban setting (population density exceeding 6,000 persons per square
mile); and the City of Rosemead (not included among tabulated results for
the selected communities). The incidence rate of activity for all land use
combined (both vacant and developed land) within the City of Rosemead
(24.72 annual calls per acre) is 2.77 times higher than the corresponding
rate for selected communities with an urban population density (8.93
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annual calls per acre). Rosemead is virtually built out while some of the
reference communities include significant amounts of natural open space
and vacant land, which effectively reduces the overall incident rate of
Police activity. On an adjusted basis (excluding natural open space,
agricultural, and vacant land), the average incident rate of Police
response activity describing Rosemead (25.43 annual calls per acre) still
remains 1.93 times higher than the corresponding rate describing other
densely-populated communities (13.20 annual calls per acre).
The comparison in Appendix F-14 clearly indicates the level of Police
service used to address crime, the threat of crime, and related public
safety risk throughout the City of Rosemead is substantially higher than
can be reasonably expected for similar land use in a comparable urban
setting. On a comparative basis, Police response activity throughout the
City of Rosemead is disproportionately greater than expected and
strongly suggests the community as a whole is affected by substantial
and prevalent crime and public safety risk. The high level of Police
activity that distinguishes Rosemead also indicates a broader benchmark
reference would provide a more relevant measure to determine the extent
land use within the Project Areas is impacted by significant crime and
public safety risk.
5.2.3.1.1 Project Area No. 1
Appendix F-15 summarizes the analysis crime and public safety
risk within Project Area No. 1 in terms of two alternate projections
of response call activity and the actual level of response call
activity indicated by address specific dispatch records provided by
Los Angeles County Sheriff. For the existing mix of land use in
Project Area No. 1, two alternate projections of response activity
are identified based on the incident rate of response that
describes the City of Rosemead as a whole (9,992 annual
response calls) and incident rate of response that typifies similar
land use within an urban setting (6,491 annual response calls).
Projected call activity is compared against actual activity (9,540
annual calls) to determine the extent Project Area No. 1 is
impacted by excessive crime and public safety risk. Actual Police
response activity in Project Area No. 1 is comparable to the level
of call activity that should be expected based on a citywide rate of
demand. With respect to activity describing comparable land use
in an urban setting, Project Area No. 1 generates nearly 1.5 times
the level of response activity that should be required to provide an
acceptable level of protections against crime and related public
safety risks. The comparative analysis described above is
illustrated in Appendix F-16. As shown, the level of response
requested by citizens and business concerned for their protection,
as well as officers initiating a call in response to crime or
suspicious activity, significantly exceeds the level of service
required for comparable land use in an urban setting.
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5.2.3.1.2 Project Area No. 2
Appendix F-17 summarizes a comparative analysis of projected
and actual Police response activity for Project Area No. 2. This
comparison reflects the same type of analysis applied to Project
Area No. 1 (Refer to Appendix F-15). As shown, the actual rate of
response call activity indicated by Sheriff dispatch records is 1.45
times higher that should be expected based on the
disproportionately high level of service demand for the City of
Rosemead and over 2.2 times higher than should be expected for
comparable forms of land use in an urban setting. Results of this
analysis are graphically illustrated in Appendix F-18. As shown,
Police response call activity required to protect the large number
of commercial businesses in Project Area No. 2 substantially
exceeds the level of service that should be required to adequately
protect similar forms of land use in an urban setting.
The public safety analysis described above indicates crime and
the threat of crime remains substantial and prevalent throughout
the Project Areas and is requiring a disproportionately high level of
response activity on the part of the City of Rosemead. The overall
level of response activity required is excessive, in terms of fiscal
and economic resources the community should be reasonably
expected to commit to adequately prepare similar land use
activities in an urban setting. The disproportionately high level of
Police response activity in the Project Areas represents an undue
monopoly of limited fiscal resources that places an economic
burden on the community and reduces the level of public
protection residents and businesses outside the Project Areas
area effectively receive.
5.2.4 Statement of Significant Economic Blight
Economic circumstances exist within the Project Areas that serve to diminish
lasting positive efforts to improve economic standards of area residents, limit
effective utilization of business and property resources, and unduly burden
opportunities to realize significant economic growth. Existing conditions that
indicate significant economic blight remains in the Project Areas are summarized
below:
The Project Areas are unavoidably influenced by socioeconomic
circumstances affecting the lives of households living below the poverty
level. Poverty is an attendant condition to overcrowding evidenced by
substantially higher incident rates of overcrowding among households
with incomes up to 200% of the federal defined poverty level. The
proportion of poverty level households residing within the Project Areas is
2.1 times greater than is true for Los Angeles County.
A substantial share of the Project Area's households is impacted by
overcrowded housing conditions (17.2 percent), and the share of
households impacted by severely overcrowded housing conditions is
even more prevalent (28.0 percent). The incidence of severe
overcrowding within the Project Areas is 1.9 times greater than is true for
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Los Angeles County. As a matter of perspective, the rate of severe
overcrowding within the Project Areas is more than 10 times the
corresponding rate for the United States (2.7 percent). Additionally, the
rate of severe overcrowding among owner households in the Project
Areas (17.6 percent) is 2.4 times greater than is true for Los Angeles
County (7.4 percent), while the corresponding rate of severely
overcrowded renter households (36.0 percent) is 1.6 times greater than
the County (22.0 percent). Overcrowded housing adversely affects living
conditions of nearly one-half of all households within the Project Areas.
Retail-commercial facilities within Project Area No. 2 suffer from
abnormally high vacancy (6.7 percent) when compared to the
corresponding vacancy rates that describe competitive neighborhood and
community-oriented centers throughout Western San Gabriel Valley (1.5
percent). This abnormally high level of vacancy is an indication that
retail-commercial facilities throughout Project Area No. 2 reflect functional
deficiencies that do not exist at competing facilities within the surrounding
area.
Retail merchandisers within Project Area No. 2 are characterized by a
weak overall level of sales performance ($207 per square foot) equal to
73.0 percent of the benchmark level ($282 per square foot) used to
describe a reasonably effective retail district serving consumer needs in
the surrounding neighborhood and community. Effective performance of
existing retail is significantly influenced by a few strong competitors.
Excluding a relatively limited number of strong competitors, effective
sales performance drops substantially for more than 60.0 percent of retail
merchandising storefront locations within Project Area No. 2 ($81 per
square foot) to a level equal to 29.0 percent of corresponding benchmark
used to describe adequately performing retail facilities. Retail-commercial
space in Project Area No. 2 exceeds 1.0 million square feet but is
dominated by relatively weak operators that contribute to an overall
leakage of sales exceeding 50.0 percent of potential sales support
represented by consumer residents of the community.
A comparison of Police response records for the City of Rosemead and
other comparable California communities indicates Rosemead is
impacted by a heightened level of crime and public safety risk. Overall,
the rate of Police response activity demanded per acre of developed land
use within the City of Rosemead is 1.93 times higher than required for
similarly dense communities. Different land uses can be expected to
demand alternate levels of Police protection. Even after controlling for
land use mix, Project Area No. 1 requires a level of Police protection
activity (described in terms of response calls) that is 1.46 times higher
than should be reasonably expected to protect residents and businesses
in a comparable urban setting. Project Area No. 2 requires a level of
Police protection activity that is 2.23 times higher than should be
reasonably expected. The disproportionately high level of Police
response activity within the Project Areas constitutes an undue monopoly
of limited fiscal resources that places an economic burden on the
community and reduces the level of public protection residents and
businesses outside the Project Areas area effectively receive.
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Existing circumstances described above reflect conditions that remain and
constitute a serious liability that is significant enough to constitute a serious
economic blight and fiscal burden within the Project Areas and larger Rosemead
community.
5.3 STATEMENT PROVIDING COMPELLING EVIDENCE THAT
CONDITIONS OF PHYSICAL AND ECONOMIC BLIGHT ARE
SIGNIFICANT THROUGHOUT THE PROJECT AREAS
A review of the information provided above and in Appendices D, E and F show that
there are a substantial number of parcels in the Project Areas that suffer from serious
conditions of remaining blight.
Based upon this information, the City Council may make the finding that the incidence of
physical and economic blight as defined in the CCRL in the two Project Areas is
significant.
62 1
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Rosemead Community Development Commission
PROPOSED MERGER AMENDMENT TO
THE REDEVELOPMENT PLANS FOR THE ROSEMEAD
REDEVELOPMENT PROJECT AREA NOS. 1 AND 2
FIGURE 5
BLIGHT SUMMARY MAP
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Cumulative Blight Weighting
(CCRL Section 33031.(a)&(b))
C 0-19
20 or Abova
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Rosemead Community Development Commission
6.0 MAP OF THE PROJECT AREAS SHOWING PORTIONS
OF THE PROJECT AREAS NO LONGER BLIGHTED,
PORTIONS THAT ARE BLIGHTED, AND PORTIONS
THAT ARE NECESSARYAND ESSENTIAL FOR THE
ELIMINATION OF REMAINING BLIGHT
Based upon the information generated for this Report to City Council, there are portions of the
Project Areas, primarily the southern portion of Project Area No. 1, and the southern and
northern portions of Project Area No. 2, that do not exhibit any blight characteristics. Figure 6
identifies these areas as the "Areas No Longer Blighted." The balance of the Project Areas
consists of parcels that the City Council may find to be blighted because they reach the
threshold of blight as described herein (identified on the map as "Areas that are Blighted"), and
parcels which are necessary and essential for the elimination of the remaining blight because
they exhibited conditions of blight but not to sufficient levels (identified on the map as Necessary
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66
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Rosemead Community Development Commission
PROPOSED MERGER AMENDMENT TO
THE REDEVELOPMENT PLANS FOR THE ROSEMEAD
REDEVELOPMENT PROJECT AREA NOS. 1 AND 2
FIGURE 6
BLIGHTED PARCELS AND
NECESSARY AND ESSENTIAL PARCELS
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N alighted! Paroels
= Necessary and Essental Parcels
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Rosemead Community Development Commission
7.0 DESCRIPTION OF PROJECTS OR PROGRAMS
PROPOSED TO ELIMINATE REMAINING BLIGHT
This Report to the City Council recognizes the Commission has previously adopted lists of
proposed projects and programs when Project Area Nos. 1 and 2 were adopted. Additionally,
the Commission has identified proposed projects and programs within its current and past
Implementation Plans, prepared pursuant to CCRL Section 33490. All of these documents are
on file with the City Clerk and hereby incorporated by reference.
Generally, these projects and programs fall into three main categories:
• Development assistance
• Public improvements
• Housing programs
The proposed Merger Amendment will not change the list of projects and programs; therefore,
no further discussion is required.
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Merger Amendment to the Redevelopment Plans
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8.0 DESCRIPTION OF HOW THE PROJECTS AND
PROGRAMS WILL IMPROVE OR ALLEVIATE
CONDITIONS OF BLIGHT
As with the projects and programs outlined above, the description of how these programs will
address blight was generated when the two Project Areas were adopted and also included in
the past and current Implementation Plans. Generally, the Commission's continuing program of
redevelopment is designed to alleviate the most prevalent conditions of blight that remain in the
Project Areas. The Commission cannot solely eliminate all remaining conditions of blight.
However, the Commission intends to continue to act as a catalyst to spur the private sector to
further assist in the revitalization of the Project Areas.
Development assistance programs will assist in the elimination of blight in a number of areas,
including alleviating the most deteriorated and obsolete structures in the Project Areas. This
program will also assist in the alleviation of economic blight by reversing conditions of impaired
investment. The resulting increase in property values and the tax increment revenue will
provide one of the main funding sources for future improvements.
A public improvement program will fund improvements designed to strengthen the Project Areas
and will provide environmental benefits as well. These improvements will specifically address
the lack of adequate fire hydrants, hydrants spacing, and other important infrastructure items
that are needed to not only protect local residents and businesses, but attract new uses.
Housing programs will continue to implement one of the major goals of the CCRL, which is to
increase, improve, and preserve low- and moderate-income housing. In attaining this goal, the
Commission will also alleviate certain blighting conditions in both Project Areas. Development
of new and the rehabilitation of existing housing will enhance the economic vitality of the entire
city.
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9.0 REASONS WHY THE PROJECTS AND PROGRAMS
CANNOT BE COMPLETED WITHOUT THE MERGER
AMENDMENT
As with most issues, the lack of sufficient funding is the primary reason the list of projects and
programs cannot be addressed by the Commission without the Merger Amendment. Without
the adoption of the Merger Amendment, improvements in both Project Areas will suffer as tax
increment generated in one project area must remain in that area. This limitation hinders the
Agency's ability to complete the projects and programs discussed in this Report to the City
Council as one project area may "outperform" the other at any given time. The proposed
Merger Amendment substantially increases the Commission's efforts to eliminate blight and
provide affordable housing by sharing a common pool of revenue.
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10.0PROPOSED METHOD OF FINANCING THE
PROJECTS AND PROGRAMS
Similar to other chapters above, the proposed Merger Amendment does not change any of the
financial aspects of the Existing Plans except that tax increment revenue attributed to each
individual project area may be allocated to the entire merged area. However, in accordance
with CCRL Section 33486 (b)(2), if the Commission has an existing indebtedness incurred in a
particular project area, tax increment revenue from that project area shall be first used to comply
with the terms of the indebtedness.
10.1 AMOUNT OF TAX INCREMENT REVENUES PROJECTED TO BE
GENERATED AS A RESULT OF THE MERGER AMENDMENT
The proposed Merger Amendment will not change any existing projections of tax
increment to be generated in the Project Areas. These estimates are included in the
existing documents adopted by the City Council, which have been incorporated by
reference.
10.2 SOURCES AND AMOUNTS OF MONEYS OTHER THAN TAX
INCREMENT REVENUES THAT ARE AVAILABLE
The proposed Merger Amendment will not change the existing description of other
sources of funds for continued redevelopment of the two Project Areas. This information
was included in the existing documentation when the two Project Areas were adopted,
as well as the past and current Implementation Plans, all of which have been
incorporated by reference.
10.3 REASONS THAT REMAINING BLIGHT CANNOT BE REVERSED OR
ALLEVIATED WITHOUT THE USE OF TAX INCREMENT AVAILABLE
BECAUSE OF THE MERGER AMENDMENT
The proposed Merger Amendment will not change the use of tax increment funds, with
the exception that revenue from the two Project Areas will be combined. A description of
the use of tax increment was included in the existing documentation when the two
Project Areas were adopted, as well as the past and current Implementation Plans, all of
which have been incorporated by reference.
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11. 0 AMENDMENT TO THE CURRENT IMPLEMENTATION
PLAN
CCRL Section 33451.5(c)(7) requires the Commission to include an amendment to the current
Implementation Plan that includes, but is not limited to, the Commission's housing
responsibilities pursuant to CCRL Section 33490.
The Merger Amendment proposes to combine tax increment revenues from Project Area Nos. 1
and 2, and will not increase limits or any other financial aspect of the Existing Plans. Therefore,
no changes to the basic elements of the Implementation Plan are needed.
However, CCRL Section 33487 requires the following related to low- and moderate-income
housing:
§33487
(a) Subject to subdivisions (a) and (b) of Section 33486, not less than 20 percent of
all taxes that are allocated to the redevelopment agency pursuant to Section 33670 for
redevelopment projects merged pursuant to this article, irrespective of the date of
adoption of the final redevelopment plans, shall be deposited by the agency in the Low
and Moderate Income Housing Fund established pursuant to Section 33334.3, or which
shall be established for purposes of this section. The agency shall use the moneys in
this fund to assist in the construction or rehabilitation of housing units that will be
available to, or occupied by, persons and families of low or moderate income, as defined
in Section 50093, and very low income households, as defined in Section 50105, for the
longest feasible time period but not less than 55 years for rental units and 45 years for
owner-occupied units. For the purposes of this subdivision, "construction and
rehabilitation" shall include acquisition of land, improvements to land; the acquisition,
rehabilitation, or construction of structures; or the provision of subsidies necessary to
provide housing for persons and families of low or moderate income, as defined in
Section 50093, and very low income households, as defined in Section 50105.
(b) The agency may use the funds set aside by subdivision (a) inside or outside the
project area. However, the agency may only use these funds outside the project area
upon a resolution of the agency and the legislative body that the use will be of benefit to
the project. This determination by the agency and the legislative body shall be final and
conclusive as to the issue of benefit to the project area. The Legislature finds and
declares that the provision of replacement housing pursuant to Section 33413 is of
benefit to a project. The Legislature finds and declares that expenditures or obligations
incurred by the agency pursuant to this section shall constitute an indebtedness of the
project.
(c) If moneys deposited in the Low and Moderate Income Housing Fund pursuant to
this section have not been committed for the purposes specified in subdivisions (a) and
(b) for a period of six years following deposit in that fund, the agency shall offer these
moneys to the housing authority that operates within the jurisdiction of the agency, if
activated pursuant to Section 34240, for the purpose of constructing or rehabilitating
housing as provided in subdivisions (a) and (b). However, if no housing authority
operates within the jurisdiction of the agency, the agency may retain these moneys for
use pursuant to this section.
(d) If the agency deposits less than 20 percent of taxes allocated pursuant to
Section 33670, due to the provisions of subdivisions (a) and (b) of Section 33486, in any
fiscal year, a deficit shall be created in the Low and Moderate Income Housing Fund in
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an amount equal to the difference between 20 percent of the taxes allocated pursuant to
Section 33670 and the amount deposited in that year. The deficit, if any, created
pursuant to this section constitutes an indebtedness of the project. The agency shall
eliminate the deficit by expending taxes allocated in years subsequent to creation of the
deficit and, until the time when that deficit has been eliminated, an agency shall not incur
new obligations for purposes other than those set forth in Section 33487, except to
comply with the terms of any resolution or other agreement pledging taxes allocated
pursuant to Section 33670 that existed on the date of merger pursuant to this article.
(e) Notwithstanding subdivision (d) of Section 33413, any agency that merges its
redevelopment project areas pursuant to this article shall be subject to subdivisions (a)
and (c) of Section 33413.[which states:]
§33413
(a) Whenever dwelling units housing persons and families of low or moderate
income are destroyed or removed from the low- and moderate-income housing market
as part of a redevelopment project that is subject to a written agreement with the agency
or where financial assistance has been provided by the agency, the agency shall, within
four years of the destruction or removal, rehabilitate, develop, or construct, or cause to
be rehabilitated, developed, or constructed, for rental or sale to persons and families of
low or moderate income, an equal number of replacement dwelling units that have an
equal or greater number of bedrooms as those destroyed or removed units at affordable
housing costs within the territorial jurisdiction of the agency. When dwelling units are
destroyed or removed after September 1, 1989, 75 percent of the replacement dwelling
units shall replace dwelling units available at affordable housing 'cost in the same or a
lower income level of very low income households, lower income households, and
persons and families of low and moderate income, as the persons displaced from those
destroyed or removed units. When dwelling units are destroyed or removed on or after
January 1, 2002, 100 percent of the replacement dwelling units shall be available at
affordable housing cost to persons in the same or a lower income category (low, very
low, or moderate), as the persons displaced from those destroyed or removed units.
(c) (1) The agency shall require that the aggregate number of replacement dwelling
units and other dwelling units rehabilitated, developed, constructed, or price restricted
pursuant to subdivision (a) or (b) remain available at affordable housing cost to, and
occupied by, persons and families of low-income, moderate-income, and very low
income households, respectively, for the longest feasible time, but for not less than 55
years for rental units, 45 years for home ownership units, and 15 years for mutual self-
help housing units, as defined in subparagraph (C) of paragraph (1) of subdivision (f) of
Section 33334.3, except as set forth in paragraph (2). Nothing in this paragraph
precludes the agency and the developer of the mutual self-help housing units from
agreeing to 45-year deed restrictions.
(2) Notwithstanding paragraph (1), the agency may permit sales of owner-
occupied units prior to the expiration of the 45-year period, and mutual self-help housing
units prior to the expiration of the 15-year period, established by the agency for a price in
excess of that otherwise permitted under this subdivision pursuant to an adopted
program that protects the agency's investment of moneys from the Low and Moderate
Income Housing Fund, including, but not limited to, an equity sharing program that
establishes a schedule of equity sharing that permits retention by the seller of a portion
of those excess proceeds, based on the length of occupancy. The remainder of the
excess proceeds of the sale shall be allocated to the agency, and deposited into the Low
and Moderate Income Housing Fund. The agency shall, within three years from the date
of sale pursuant to this paragraph of each home ownership or mutual self-help housing
unit subject to a 45-year deed restriction, and every third mutual self-help housing unit
subject to a 15-year deed restriction, expend funds to make affordable an equal number
of units at the same or lowest income level as the unit or units sold pursuant to this
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paragraph, for a period not less than the duration of the original deed restrictions. Only
the units originally assisted by. the agency shall be counted towards the agency's
obligations under Section 33413.
(3) The requirements of this section shall be made enforceable in the same
manner as provided in paragraph (7) of subdivision (f) of Section 33334.3.
(4) If land on which the dwelling units required by this section are located is
deleted from the project area, the agency shall continue to require that those units
remain affordable as specified in this subdivision.
(5) For each unit counted towards the requirements of subdivisions (a) and (b),
the agency shall require the recording in the office of the county recorder of covenants or
restrictions that ensure compliance with this subdivision. With respect to covenants or
restrictions that are recorded on or after January 1, 2008, the agency shall comply with
the requirements of paragraphs (3) and (4) of subdivision (f) of Section 33334.3.
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12.ONEIGHBORHOOD IMPACT REPORT
The proposed Merger Amendment is administrative and fiscal in nature and proposes no
changes to planning, development or redevelopment activities. Therefore, the Merger
Amendment will have no significant negative impact on the neighborhoods included within the
Project Areas. In fact, because the intent is to provide greater financial flexibility, the proposed
Merger Amendment is expect to yield only positive results through the elimination or alleviation
of blight.
12.1 RELOCATION
Because the Merger Amendment is administrative and fiscal in nature and proposes no
changes to planning, development or redevelopment activities, the Merger Amendment
would have no impact on relocation activities, which were discussed previously when the
Project Areas were adopted.
The Commission has previously approved and adopted a plan and method of relocation
for both Project Areas. The methods for assisting any displaced persons are the State
of California Relocation Assistance and Property Acquisition Guidelines, which are
incorporated herein by reference. The Commission has no current plans or proposed
activities that are foreseen to require any relocation as further explained in Chapter 5.8.7
below. The Commission is required to, and fully intends to, comply with all federal and
state laws and regulations regarding the relocation of persons and families as required
by Commission actions.
12.2 TRAFFIC CIRCULATION
Because the Merger Amendment is administrative and fiscal in nature and proposes no
changes to planning, development or redevelopment activities, the Merger Amendment
would have no impact on traffic, which was discussed previously when the Project Areas
were adopted.
12.3 ENVIRONMENTAL QUALITY
Because the Merger Amendment is administrative and fiscal in nature and proposes no
changes to planning, development or redevelopment activities, the Merger Amendment
would have no significant adverse environmental impacts.
All development or Commission activity will be reviewed by the City for design
compatibility with adjacent land uses and impact upon adjacent properties. In addition, a
more-specific environmental analysis of future major projects will take place as specified
projects are proposed for implementation and as necessary and required by CEQA.
12.4 AVAILABILITY OF COMMUNITY FACILITIES AND SERVICES
The Merger Amendment is not expected to create any adverse impacts on existing
community facilities and services since its entire affect will be to provide expanded
funding options for redevelopment projects, some of which provide for the development
and/or redevelopment of community facilities. Approval of the proposed Merger
Amendment is expected to positively influence and reduce the demand, as well as
increase the effectiveness of all safety services.
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12.5 EFFECT ON SCHOOL POPULATION AND QUALITY OF EDUCATION
Because the Merger Amendment is administrative and fiscal in nature and proposes no
changes to planning, development or redevelopment activities, the Merger Amendment
would have no impact on school population or the quality of education, which were
discussed previously when the Project Areas were adopted.
12.6 PROPERTY ASSESSMENTS AND TAXES
The Merged Redevelopment Plan will continue to be funded principally through
incremental property tax financing and not through special assessment, new taxes or
general funds. The ad valorem property tax rate will not be affected by the Merger
Amendment.
The continued revitalization of the Project Areas may have a positive effect on the
market value of properties in adjacent neighborhoods, resulting in some increase in
assessed valuation as properties change ownership and are reassessed.
12.7 THE NUMBER OF DWELLING UNITS HOUSING PERSONS AND
FAMILIES OF LOW- OR MODERATE-INCOME EXPECTED TO BE
DESTROYED OR REMOVED FROM THE LOW- AND MODERATE-
INCOME HOUSING MARKET THROUGH IMPLEMENTATION OF THE
MERGER AMENDMENT
The Merger Amendment is administrative and fiscal in nature and no immediate
destruction of dwelling units housing persons and families of low- or moderate-income is
contemplated; therefore, no dwelling units are expected to be removed from the low- and
moderate-income housing market as a result of the Merger Amendment.
12.8 NUMBER OF PERSONS AND FAMILIES OF LOW- OR MODERATE-
INCOME EXPECTED TO BE DISPLACED BY THE PROJECT
The Merger Amendment is administrative and fiscal in nature and no displacement is
contemplated; therefore, no persons are expected to be removed from the low- and
moderate-income housing market as a result of the Merger Amendment.
12.9 GENERAL LOCATION OF HOUSING TO BE REHABILITATED,
DEVELOPED, OR CONSTRUCTED
Generally, housing to be rehabilitated, developed, or constructed within the Project
Areas, pursuant to CCRL Section 33413, will be located in existing residentially
designated areas and will not change as a result of this Merger Amendment.
Identification of specific residential units to be rehabilitated and specific development or
construction sites will be based upon site availability and user needs. Development
activities will be affected by market demand, cost and availability of funds.
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12.10 THE NUMBER OF DWELLING UNITS HOUSING PERSONS AND
FAMILIES OF LOW- OR MODERATE-INCOME PLANNED FOR
CONSTRUCTION OR REHABILITATION, OTHER THAN
REPLACEMENT HOUSING
The Merger Amendment is administrative and fiscal in nature and will not change
housing programs for persons and families of low- or moderate-income is contemplated;
therefore, no changes are expected in the number of dwelling units for persons and
families of low- and moderate-income.
The Commission will comply with CCRL Section 33413 and other applicable statutes.
12.11 PROJECTED MEANS OF FINANCING PROPOSED DWELLING UNITS
FOR PERSONS AND FAMILIES FOR LOW- AND MODERATE-INCOME
HOUSING
The Merger Amendment is administrative and fiscal in nature and no changes in the
financial methods for low- and moderate-income housing are contemplated.
12.12 PROJECTED TIMETABLE FOR MEETING REHABILITATION AND
REPLACEMENT HOUSING OBJECTIVES
Housing needs in the Project Areas subject to the Merged Redevelopment Plan will be
addressed in accordance with the Housing Element of the General Plan and the Existing
Plans.
All replacement housing obligations will be met as rapidly as is feasible, and in any
event, by not later than four (4) years following the destruction or removal of dwelling
units housing persons or families of low- and moderate-income from the low- and
moderate-income housing market as part of the Merged Redevelopment Plan.
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13.01METHOD OR PLAN FOR RELOCATION
The Merger Amendment does not modify any of the plans or methods of relocation of property
owners and businesses provided in either redevelopment plan, as required by CCRL Section
33411.1. Therefore, no additional discussion is necessary for this item.
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14.OANALYSIS OF THE PRELIMINARY PLAN
Because the Merger Amendment does not change the boundaries of either Project Area, no
Preliminary Plan was required. Therefore, an analysis of the Preliminary Plan is not necessary.
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15.0REPORT AND RECOMMENDATIONS OF THE
PLANNING COMMISSION
On December 15, 2008, the Rosemead Planning Commission found the Merger Amendment to
be in conformance with the City's General Plan, and recommended to the City Council that the
Merger Amendment be approved. The Planning Commission's report and recommendation was
forwarded to the Commission, and is included under Tab 5 of the binder for the public hearing.
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16.OSUMMARY REFERRED TO IN SECTION 33387
The Merger Amendment does not change the Commission's authority to acquire property by
eminent domain in either Project Area. For this reason, a Project Area Committee was not
formed, and no further discussion is warranted.
In lieu of a Project Area Committee, Commission staff and consultants conducted a public
workshop on January 22, 2009, to discuss the proposed Merger Amendment and answer
questions. About 10 people attended the workshop, which was held in the City Council
Chambers.
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17.0REPORT REQUIRED BY SECTION 65402 OF THE
GOVERNMENT CODE
This report required by Gov. Code Section 65402 is included in the report and recommendation
of the Planning Commission, which is located under Tab 5 of the binder for the public hearing.
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18.0REPORT REQUIRED BY SECTION 2151 OF THE
PUBLIC RESOURCES CODE
It was determined by the preparation of an Initial Environmental Study that a Negative
Declaration would adequately describe the environmental effects of adoption of the Merger
Amendment and would comply with the State CEQA Guidelines. This determination was made
because the Merger Amendment will not:
• Change the boundaries of the either Project Area
• Change time or financial limitations of either Project Area
• Add new redevelopment projects or programs
• Change any existing, or create any new, fiscal agreements with any affected taxing
agency
• Extend the effective life of either Redevelopment Plan
The Negative Declaration and Initial Study prepared for the Merger Amendment are
incorporated and included in Tab 3 of the Public Hearing binder.
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19.0REPORT OF THE COUNTY FISCAL OFFICER AND
ANALYSIS OF SAID REPORT
Because the Merger Amendment does not alter boundaries, or extend time or financial limits,
there was no report received from the County Fiscal Officer as required by CCRL Section
33328. Therefore, no further discussion is necessary regarding this item.
Each affected taxing agency was notified and instructed to contact Commission staff if any
additional information was needed or if there were any questions. Representatives from Los
Angeles County have met with Commission staff and toured the two Project Areas. There is
concern from the County that the Commission may be doing more than a simple merger, but
that is not the case as has been outlined throughout this Report to the City Council. The
Commission is open to any discussion with the County if there are outstanding issues.
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•
APPENDIX A -
METHODOLOGY HIERARCHY
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0
APPENDIX B -
40
BLIGHT INDICATORS
0 0
METHODOLOGY HIERARCHY
PROJECT AREA DELINEATION METHODOLOGY:
Identification and assessment of degree of urbanization,
blight indicators and minimum standard thresholds
Layer 1 Plus Layer 2 Must Equal
Substantial and Prevalent Blight
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•
APPENDIX C -
0
MINIMUM THRESHOLD PHOTOGRAPHIC SAMPLES
•
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•
.
0 0
Blight Indicators: "Minimum Threshold Standards" Catalog
ANPA -Additian Not Permitted (Room Addition/Alteration, etc)
ANPB- Patio Cover (or other minor construction) Not Permitted AS -Appurtenant Structure
AEH - Apparent Electrical Hazards
AB- Adult Business
AEH-Apparent Eleetrieal Hazards
11
Blight Indicators: "Minimum Threshold Standards" Catalog
FBW - FmcdBlock WO/Other outdoor waB structures FCM- Faulty Construction Materials
BAR- Ban an Doors/Windows
BO -Boarded Occopied
BU- Boarded Unoccupied
ESW - Exterior Structure Sapport Walls
Blight Indicat • : "Minimum Threshold Standards" Catalog
FH-Fire Hazard
FND-Foundation
FND-Foundation
FO- Fractional Obsolescence (ad hoe change of use)
FEN- Fenestration -windows, screens, doors
FME-Deteriorated Firtares/Mechanical Equipment/HVAC
0 •
Blight Indicators: "Minimum Threshold Standards" Catalog
G - Graffiti
D.D - Inadequate Loading/Docking Facilities
IE -Poor Site Ingress/Egress (including emergency vehicle access)
GC - Garage Conversion Not Permitted
D.D - Inadequate Loading/Docking Facilities
IEX - Inadequate or impaired access to Building Exits
• •
Blight Indicators: "Minimum Threshold Standards" Catalog
DIP- Potential of Infestation of Rodmts or Insects
i Imo'
IP-Irregdar Parrd
OV- Overgrowndimardons Vegetation
IV-Inoperable Vehicles
IV - bnoperable Vehides
OPR- Obstruction of Public ROW
J
Blight Indicators: "Minimum Threshold Standards" Catalog
OV - Overgrawu/Harardous Vegetation
PSL - Poor Site Layont
PDL- Presenm of Payday Lenders or Pawn Shops
P - Paint-related issars
PRI- Deteriorated/Absmt Private Infrastructure
PQ- Poor Coustraction Quality/Cor eapted Steel/Building Type
Blight Indicators: "Minimum Threshold Standards" Catalog
R-Roofs
R-Roofs
SS - Secondary Structures
PIII- Deterionted/Abseut Public Infrastructure Street, Curb, Parlong
SCF-Security Fencing
SD - Substandard Design (structure)
•
Blight Indicators: "Minimum
UM- Apparent Unreinforeed Masonry
•
Threshold Standards" Catalog
WP- Weather Protection
UST- Unsafe Missing Stairways or Walkways
• •
APPENDIX D -
BLIGHT THRESHOLD BY PARCEL
THIS PAGE INTENTIONALLY LEFT BLANK
• •
The following matrix identifies by parcel number (left column) the
acronyms (top row) for the 40 blight indicator codes and the
values assigned to each parcel (more completely defined in
Appendix A) used in the blight analysis contained in this Report.
C
THIS PAGE INTENTIONALLY LEFT BLANK
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APPENDIX E -
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SUMMARY OF BLIGHT CONDITIONS
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Rosemead Community Development Commission
PROPOSED MERGER AMENDMENT TO
THE REDEVELOPMENT PLANS FOR THE ROSEMEAD
REDEVELOPMENT PROJECT AREA NOS. 1 AND 2
APPENDIX E
SUMMARY OF BLIGHT CONDITIONS
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LEGEND
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Freeways
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Resemead Redevelopment Pmjed
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rn Pmjed Area No.2
Cumula0ve Blight WeightN
(CCRL Section 3303L(a)&(b))
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•
APPENDIX F -
APPENDICES DESCRIBING ECONOMIC BLIGHT
THIS PAGE INTENTIONALLY LEFT BLANK
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APPENDIX F-1
CENSUS 2000 POVERTY LEVEL HOUSEHOLDS AND POPULATION
PROJECT AREA NO.1 (SOUTH PROJECT AREA;
ROSEMEAD,CA
Project
Area No. 1
City Of
Rosemead
Los Angeles
County
Households and Poverty:
Share of Occupied Households
At Or Above Poverty Level
75.2%
80.9%
84.9%
Below The Poverty Level
24_8%
19.1%
15.1 %
100.0%
100.0%
100.0%
Family Structure Of Poverty Households
Non-Family Households
3.9%
2.8%
5.2%
Married-Couple Family Households
11.1%
9.8%
4.8%
Single Parent Family Households
9.8%
6.5%
5.1%
All Households
24.8%
19.1%
15.1%
Indexed Against City
1.30
1.00
0.79
Indexed Against County
1.64
1.26
1.00
Household Population And Ratio Of Income-To-Poverty:
Population Living At Indicated Poverty Ratio
Under 0.50
9.2%
7.9%
8.0%
0.50 To 0.99
17.1%
14.9%
9.9%
1.00 To 1.49
15.6%
15.3%
12.0%
1.50 To 1.99
14.1%
12.0%
10.1%
2.00 And Over
44.0%
49.8%
60.1%
100.0%
100.0%
100.0%
Age Structure Of Poverty Population:
Share of Population Below Poverty
26.3%
22.8%
17.9%
Indexed Against City
1.15
1.00
0.78
Indexed Against County
1.47
1.27
1.00
Age Composition
11 Years and Younger
24.6%
23.9%
27.3%
12 To 17 Years
12.5%
13.2%
11.0%
18 To 64 Years
54.7%
57.3%
56.2%
65 Years and Older
8.3%
5.6%
5.6%
Source: U.S. Census Bureau; Alfred Gobar Associates.
Rosemead Ez ibifs Values 7-081/29/2009
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APPENDIX F-3
CENSUS 2000 OVERCROWDED HOUSING CONDITIONS
PROJECT AREA NO.1 (SOUTH PROJECT AREA;
ROSEMEAD,CA
Project
Area No. 1
City Of
Rosemead
Los.Angeles
County
Tenure Of Occupied Households:
Owner Occupied
43.5%
48.8%
47.9%
Renter Occupied
56.5%
51.2%
52.1%
Occupancy Of All Households:
0.50 or less occupants per room
22.8%
26.1%
46.2%
0.51 to 1.00 occupants per room
32.0%
33.4%
30.8%
1.01 to 1.50 occupants per room
17.2%
16.3%
7.9%
1.51 to 2.00 occupants per room
14.3%
12.7%
7.4%
2.01 or more occupants per room
13.7%
11.4%
7.6%
Overcrowded Households
17.2%
16.3%
7.9%
Severly Over-Crowded Households
28.0%
24.1%
15.0%
Indexed Against City
1.16
1.00
0.62
Indexed Against County
1.86
1.60
1.00
Occupancy Of Owner-Occupied Households:
0.50 or less occupants per room
31.4%
37.5%
58.0%
0.51 to 1.00 occupants per room
34.7%
35.6%
28.4%
1.01 to 1.50 occupants per room
16.3%
13.8%
6.2%
1.51 to 2.00 occupants per room
9.7%
7.3%
4.3%
2.01 or more occupants per room
7.9%
5.8%
3.1%
Over-Crowded Owner Households
16.3%
13.8%
6.2%
Severly Over-Crowded Owner Households
17.6%
13.1%
7.4%
Indexed Against City
1.34
1.00
0.57
Indexed Against County
2.37
1.76
1.00
Occupancy Of Renter-Occupied Households:
0.50 or less occupants per room
16.2%
15.3%
35.4%
0.51 to 1.00 occupants per room
29.9%
31.4%
33.0%
1.01 to 1.50 occupants per room
18.0%
18.7%
9.6%
1.51 to 2.00 occupants per room
17.8%
17.8%
10.2%
2.01 or more occupants per room
18.2%
16.8%
11.8%
Over-Crowded Renter Households
18.0%
18.7%
9.6%
Severly Over-Crowded Renter Households
36.0%
34.6%
22.0%
Indexed Against City
1.04
1.00
0.64
Indexed Against County
1.63
1.57
1.00
Source: U.S. Census Bureau: Alfred Gobar Associates.
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• 0
APPENDIX F-13
INCIDENCE OF POLICE RESPONSE - CITY OF ROSEMEAD
FOR EXISTING DEVELOPED AND VACANT LAND
-Land Use Classification
Existing
Land Use
Acreage
Non-Aaric Distribution
Share Of Share Of
Acreage Response
Calls Per
Acre Of
Land Use'
Residential
1,758
67,7%
69.6%
25.91
(Res. Dist.)
(Res. Dist.)
SFD V-Low (0.5-2.9)
20
1.1%
0.6%
13.34
SFD Low (3.0-4.9)
501
28.5%
19.5%
17.78
SFD Mad (5.0-8.0)
1,081
61.5%
73.8%
31.11
MFA Med (8.1-14.9)
100
5.7%
3.8%
17.34
MFA High (15-35+)
41
2.3%
1.7%
19.34
Mobile Home Parks
15
0.9%
0.5%
15.34
Commercial-Retail
Commercial-Office/Prof Svcs
Industrial/Comm'I-Mfg
Institutional
Civic/Administrative
Educational
Hospital/Congregate/Etc.
Developed Open Space
Public Parks/Playgrounds/Etc.
Private Parks/Grounds
Golf Courses
291
11.2%
20.1%
45.30
106
4.1%
3.9%
23.90
83
3.2%
1.6%
12.35
310
11.9%
4.5%
9.47
25
1.0%
0.4%
9.47
Natural/Passive Open Space
Hillsides/Canyons/Etc.
Other Passive Use Areas
C i rc/Ag r i c. /Drainage/ Etc.
Vacant/Undev. Properties
Land Use Totals
0.0% 0.0%
52 2.0% 0.0% 0.01
25 1.0%
2,649 100.0%
0.0% 0.95
100.0% 24.72
Note:
Estimate of existing land use based on the total acreage calculations given to the
consultants by Hogle Irelmd coupled via Google Earth aerial photography.
2 Describes the annual incident rate of police activity generated per acre of land use activity based
on a total volume of 65,475 responses to 44,082 unique incidents, including multiple responses
and officer initiated responses during the 12-month period ending July 2008.
Source: City of Rosemead; State Dept.of Finance; Hogge-Ireland; Alfred Gobar Associates
Rosemead Exhibits Values 7-081/29/2009
•
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APPENDIX F-15
INCIDENT RATE OF POLICE PROTECTION SERVICE
CITY OF ROSEMEAD - PROJECT AREA NO. 1
Land Use Activi
Agricultural
Single-Family
Multi-Family Residential
Mobile Home
Retail-Comm'I
Office-Comm'I
Industrial
Public
Quasi Public
Vacant
Projected Service Demand
Actual Service
Acres Citywide Demand Benchmark Demand
In Project Incident Rate Projected Incident Rate Projected
Area No. 1' Per Acre Calls Per Acre Calls
Ratio of Actual Versus Projected
Note:
' Total acreage exludes parcelized right of way acres.
0.0
0.01
0 i
0.01
0
102.6
17.78
1,824 i
13.39
1,374
29.9s
17.34
518
11.91
356
5.7
15.34
88
9.92
57
100.7 €
45.30
4,561 i
29.03
2,923
85.6 €
23.90
2,046
10.86
929
22.3 €
12.35
276
7.80
174
68.8 €
9.47
651 €
9.47
651
2.6 €
9.47
24 i
9.47
24
4.1 i
0.95
4 i
0.64
3
422.3
23.66
9,992
0.65
6,491
9,540 € 9,540
0.95 : 1.00: 1.46 :1.00
Source: City of Rosemead Police Department; Los Angeles County Sheriff; Alfred Gobar Associates.
Rosemead Exhibits Values 7-08 1129=09
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APPENDIX F-17
INCIDENT RATE OF POLICE PROTECTION SERVICE
CITY OF ROSEMEAD - PROJECT AREA NO. 2
Acres
Citywide Demand
Benchmark Demand
In Project
Incident Rate
Projected
Incident Rate
Projected
Land Use Activity
Area No. 2'
Per Acre
Calls
Per Acre
Calls
Agricultural
0.0
€ 0.01
0
0.01
0 i
Single-Family
1.3
€ 17.78
22
13.39
17
Multi-Family Residential
0.3
17.34
5
i 11.91
4 i
Mobile Home
0.0
€ 15.34
0
9.92
0
Retail-Comm'I
94.9
45.30
4,297
29.03
2,754
Office-Comm'[
11.5
23.90
275
i 10.86
125
Industrial
2.9
12.35
36
i 7.80
23
Public
28.6
9.47
271
i 9.47
271
Quasi Public
3.3
i 9.47
32
i 9.47
32
Vacant
7.1
0.95
7
0.64
5
Projected Service Demand:' 149.9 32.99 4,945 ` 21.56 3,231
I- I
L
I Actual Calls In Reference Area I
Actual Service
7,208
7,208
Ratio of Actual Versus Projected
Note:
' Total acreage exludes parcelized right of way acres.
1.45 : 1.00
2.23: 1.00
Source: City of Rosemead Police Department; Los Angeles County Sheriff; Alfred Gobar Associates.
Rosemead Exhibim Values 7-081I2MOO9
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ATTACHMENT E
0 0
CA Codes (hsc:33030-339) • Page 1 of 4
HEALTH AND SAFETY CODE
SECTION 33030-33039
33030. (a) It is found and declared that there exist in many
communities blighted areas that constitute physical and economic
liabilities, requiring redevelopment in the interest of the health,
safety, and general welfare of the people of these communities and of
the state.
(b) A blighted area is one that contains both of the following:
(1) An area that is predominantly urbanized, as that term is
defined in Section 33320.1, and is an area in which the combination
of conditions set forth in Section 33031 is so prevalent and so
substantial that it causes a reduction of, or lack of, proper
utilization of the area to such an extent that it constitutes a
serious physical and economic burden on the community that cannot
reasonably be expected to be reversed or alleviated by private
enterprise or governmental action, or both, without redevelopment.
(2) An area that is characterized by one or more conditions set
forth in any paragraph of subdivision (a) of Section 33031 and one or
more conditions set forth in any paragraph of subdivision (b) of
Section 33031.
(c) A blighted area that contains the conditions described in
subdivision (b) may also be characterized by the existence of
inadequate public improvements or inadequate water or sewer
utilities.
33031. (a) This subdivision describes physical conditions that
cause blight:
(1) Buildings in which it is unsafe or unhealthy for persons to
live or work. These conditions may be caused by serious building code
violations, serious dilapidation and deterioration caused by
long-term neglect, construction that is vulnerable to serious damage
from seismic or geologic hazards, and faulty or inadequate water or
sewer utilities.
(2) Conditions that prevent or substantially hinder the viable use
or capacity of buildings or lots. These conditions may be caused by
buildings of substandard, defective, or obsolete design or
construction given the present general plan, zoning, or other
development standards.
(3) Adjacent or nearby incompatible land uses that prevent the
development of those parcels or other portions of the project area.
(4) The existence of subdivided lots that are in multiple
ownership and whose physical development has been impaired by their
irregular shapes and inadequate sizes, given present general plan and
zoning standards and present market conditions.
(b) This subdivision describes economic conditions that cause
blight:
(1) Depreciated or stagnant property values.
(2) Impaired property values, due in significant part, to
hazardous wastes on property where the agency may be eligible to use
its authority as specified in Article 12.5 (commencing with Section
33459).
(3) Abnormally high business vacancies, abnormally low lease
rates, or an abnormally high number of abandoned buildings.
http://www.leginfo.ca.gov/cgi-binldisplaycode?section=hsc&group=33001-34000&file=33... 8/12/2009
0 0
CA Codes (hsc:33030-339) • Page 2 of 4
(4) A serious lack of necessary commercial facilities that are
normally found in neighborhoods, including grocery stores, drug
stores, and banks and other lending institutions.
(5) Serious residential overcrowding that has resulted in
significant public health or safety problems. As used in this
paragraph, "overcrowding" means exceeding the standard referenced in
Article 5 (commencing with Section 32) of Chapter 1 of Title 25 of
the California Code of Regulations.
(6) An excess of bars, liquor stores, or adult-oriented businesses
that has resulted in significant public health, safety, or welfare
problems.
(7) A high crime rate that constitutes a serious threat to the
public safety and welfare.
33035. It is further found and declared that:
(a) The existence of blighted areas characterized by any or all of
such conditions constitutes a serious and growing menace which is
condemned as injurious and inimical to the public health, safety, and
welfare of the people of the communities in which they exist and of
the people of the State.
(b) Such blighted areas present difficulties and handicaps which
are beyond remedy and control solely by regulatory processes in the
exercise of police power.
(c) They contribute substantially and increasingly to the problems
of, and necessitate excessive and disproportionate expenditures for,
crime prevention, correction, prosecution, and punishment, the
treatment of juvenile delinquency, the preservation of the public
health and safety, and the maintaining of adequate police, fire, and
accident protection and other public services and facilities.
(d) This menace is becoming increasingly direct and substantial in
its significance and effect.
(e) The benefits which will result from the remedying of such
conditions and the redevelopment of blighted areas will accrue to all
the inhabitants and property owners of the communities in which they
exist.
33036. It is further found and declared that:
(a) Such conditions of blight tend to further obsolescence,
deterioration, and disuse because of the lack of incentive to the
individual landowner and his inability to improve, modernize, or
rehabilitate his property while the condition of the neighboring
properties remains unchanged.
(b) As a consequence the process of deterioration of a blighted
area frequently cannot be halted or corrected except by redeveloping
the entire area, or substantial portions of it.
(c) Such conditions of blight are chiefly found in areas
subdivided into small parcels, held in divided and widely scattered
ownerships, frequently under defective titles, and in many such
instances the private assembly of the land in blighted areas for
redevelopment is so difficult and costly that it is uneconomic and as
a practical matter impossible for owners to undertake because of
lack of the legal power and excessive costs.
(d) The remedying of such conditions may require the public
acquisition at fair prices of adequate areas, the clearance of the
areas through demolition of existing obsolete, inadequate, unsafe,
and insanitary buildings, and the redevelopment of the areas
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suffering from such conditions under proper supervision, with
appropriate planning, and continuing land use and construction
policies.
33037. For these reasons it is declared to be the policy of the
State:
(a) To protect and promote the sound development and redevelopment
of blighted areas and the general welfare of the inhabitants of the
communities in which they exist by remedying such injurious
conditions through the employment of all appropriate means.
(b) That whenever the redevelopment of blighted areas cannot be
accomplished by private enterprise alone, without public
participation and assistance in the acquisition of land, in planning
and in the financing of land assembly, in the work of clearance, and
in the making of improvements necessary therefor, it is in the public
interest to employ the power of eminent domain, to advance or expend
public funds for these purposes, and to provide a means by which
blighted areas may be redeveloped or rehabilitated.
(c) That the redevelopment of blighted areas and the provisions
for appropriate continuing land use and construction policies in them
constitute public uses and purposes for which public money may be
advanced or expended and private property acquired, and are
governmental functions of state concern in the interest of health,
safety, and welfare of the people of the State and of the communities
in which the areas exist.
(d) That the necessity in the public interest for the provisions
of this part is declared to be a matter of legislative determination.
33038. It is found and declared that blighted areas may include
housing areas constructed as temporary government-owned wartime
housing projects, and that such areas may be characterized by one or
more of the conditions enumerated in Sections 33031 to 33034,
inclusive.
33039. The Legislature of the State of California recognizes that
among the principal causes of slum and blighted residential areas are
the following factors:
(a) Inadequate enforcement of health, building, and safety laws.
(b) The fact that the limited financial resources of many human
beings who inhabit them make only this type of housing available to
such persons.
(c) Racial discrimination against persons of certain groups in
seeking housing.
(d) The neglect of absentee landlords.
It is, therefore, declared to be the public policy of this State
that, in order to cope with the problems of the rehabilitation of
slum or blighted areas, these factors shall be taken into
consideration in any rehabilitation or redevelopment program. It is
further declared to be the public policy of this State that such
rehabilitation or redevelopment programs shall not be undertaken and
operated in such a manner as to exchange new slums for old slums or
as to congest individuals from one slum to another slum.
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