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CC - Item 3I - Project Area No. 1 and 2 Merger• ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: OLIVER CHI, CITY MANAGER DATE: MARCH 10, 2009 SUBJECT: PROJECT AREA NO. 1 and 2 MERGER - SECOND READING AND ADOPTION OF AN ORDINANCE APPROVING AND ADOPTING THE MERGER AMENDMENT TO THE REDEVELOPMENT PLANS FOR THE ROSEMEAD REDEVELOPMENT PROJECT AREA NO.1 AND THE ROSEMEAD REDEVELOPMENT PROJECT AREA NO. 2 SUMMARY At its February 10, 2009 meeting, the City Council introduced an ordinance that approves and adopts the merger of Project Area No. 1 and 2. The benefit of merging project areas is the ability to spend tax increment funds generated in one area in another. In the City of Rosemead, this would allow tax exempt bond proceeds as well as tax increment generated in Project Area No. 1 to be spent in Project Area No. 2 for various capital improvement projects like street rehabilitation, public facilities renovations, etc. Staff Recommendation Staff recommends that the City Council adopt Ordinance No. 871, on second reading, approving the Merger Amendment to the Redevelopment Plans for the Rosemead Redevelopment Project Area No. 1 and the Rosemead Redevelopment Project Area No. 2. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: Michelle G. Ramirez Economic Development Administrator ITEM NO. 3 APPROVED FOR CITY COUNCIL AGENDA: 0 City Council Report March 10, 2009 • Page 2 of 2 Brian ki Assistan Manager Attachment A - February 19, 2009 City Council Agenda Report Attachment B - Ordinance No. 871 • 0 • ROSEMEAD CITY COUNCIL STAFF REPORT • TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: OLIVER CHI, CITY MANAGER ~,'t b onyi/j DATE: FEBRUARY 10, 2009 v u SUBJECT: PUBLIC HEARING ON THE PROJECT AREA NO. 1 and 2 MERGER SUMMARY On November 20, 2007, the Rosemead Community Development Commission ("Commission") approved a professional services agreement with Urban Futures Incorporated commencing the merger of. Project Area No. 1 and 2 ("Merger). The benefit of merging project areas is the ability to spend tax increment funds generated in one area in another. In the City of Rosemead, this would allow tax exempt bond proceeds as well as tax increment generated in Project Area No. 1 to be spent in Project Area No. 2 for various capital improvement projects like street rehabilitation, public facilities renovations, etc. Staff Recommendation Staff recommends that the City Council conduct a public hearing, review, consider, and adopt the Resolution 2009-03 and the City Ordinance No. 871. located within tabbed Sections 8(c) and 9, respectively, of the Evidentiary Record prepared for the Public Hearing on the proposed amendment (the "Merger Amendment") to the Redevelopment Plans for the Rosemead Redevelopment Project Area No. 1 and Rosemead Redevelopment Project Area No. 2 (the "Plans" and the "Project Areas," respectively). ANALYSIS The Commission, a redevelopment agency activated in accordance with the California Community Redevelopment Law (CCRL; Health and Safety Code, Section 33000 et seq.), is proposing the Merger Amendment to the Plans for the Project Areas for the sole purpose of merging the two Project Areas, as permitted by and in accordance with CCRL provisions, into one project area (the "Merged Project Area"). The Commission's objective in merging the Project Areas is to provide it with greater financial flexibility in making improvements as well as streamlining the administrative process from the present somewhat duplicative process of administering two separate Project Areas. No physical boundary changes are proposed for the Project Areas and the Merger Amendment is, therefore, administrative and fiscal in character. • ITEM NO---I-A. APPROVED FOR CITY COUNCIL AGENDA: • City Council Report February 10, 2009 Page 2 of 5 Pursuant to the provisions of the CCRL and the California. Environmental Quality Act (CEQA), the City Council notified the affected taxing entities, property owners, business owners, tenants and residents within the Project Areas of a public hearing on the Amendment and the related Negative Declaration of Environmental Impact (the "Negative Declaration"), prepared in accordance with CEQA requirements, to be held by the City Council on February 10, 2009 at 7:00 p.m. The Commission has duly noticed and will also hold a public hearing on the Merger Amendment and the Negative Declaration on February 10, 2009 at 6:00 p.m. Commission staff has recommended that the Commission approve the Merger Amendment and the related Negative Declaration, and that the Commission forward the Merger Amendment and the Negative Declaration to the City Council with the Commission's recommendation that the City Council consider approval of the Negative Declaration and adoption of the Merger Amendment. The Redevelopment Plan for Project Area No. 1 was originally adopted on June 22, 1972 by City Council Ordinance No. 340, then subsequently amended three times in: December 9, 1986 by Ordinance No. 592; December 20, 1994, by Ordinance No. 752; and January 22, 2002, by Ordinance No. 822. The Redevelopment Plan for Project Area No. 2 was adopted on June 27, 2000, by Ordinance No. 809. • While there have been improvements in the Project Areas since adoption of the Plans, substantial blighting conditions still exist. Such conditions include but are not limited to, the existence of unproductive and/or underutilized properties; properties characterized by deteriorated structures or health hazards, defective design, faulty arrangement, stagnant economic conditions and low property values, and inadequate infrastructure. The foregoing combination of blighting conditions continues to cause a reduction of, or lack of, proper utilization of the respective Project Areas that cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. Merging the Project Areas will allow the Commission to more effectively implement each Plan and to carry out the goals and objectives for each Project Area by providing a more flexible financial tool for the completion of public improvements, and the implementation of redevelopment programs necessary to alleviate the remaining blighting conditions in the Project Areas. Staff has distributed a document containing the Public Hearings Evidentiary Record (hereafter referred to as the "Record" - Attachment A) to each Commission Board/City Council member. The Record includes, among other items, the Merger Amendment, a Negative Declaration of Environmental Impact (the "Negative Declaration"), the Commission's Report to the City Council, related Resolutions, and the adopting City Ordinance. The following is a brief discussion of the contents of the Record: 0 • City Council Report February 10, 2009 Pace 3 of 5 Tali 1 -Commission and City Council Public Hearings Procedures The Public Hearings Procedures outline respective Commission and City Council actions and procedures necessary for each body's consideration and approval or adoption of the Merger Amendment. Tab 2 - Amendment to Merge Rosemead Redevelopment Project Area No. 1 and Redevelopment Project Area No. 2. The Merger Amendment specifically sets forth modified text for the respective sections of the Plans for the Projects as proposed to be changed by the Merger Amendment; legal descriptions of the respective Project Areas; and a map of the Projects Areas. Tab 3 - Notice of Intent to Adopt Negative Declaration, Negative Declaration, and Related Initial Study for the Merger Amendment Tab 3 contains the Notice of Intent to Adopt Negative Declaration, Negative Declaration, and related Initial Study/Environmental Checklist for the Merger Amendment which has been completed in accordance with the California Environmental Quality Act, commonly known as "CEQA." This document was prepared as part of the redevelopment plan amendment process and is based on. the findings contained in the Initial Study/Environmental Checklist, also included in this section, which was prepared for the Merger Amendment, and included herein. Based upon the assessment completed for the Initial Study, a finding was made that the Merger Amendment would not have a significant effect on the environment beyond those impacts addressed, and mitigated as appropriate, by CEQA compliance previously completed for the Projects. As of the date the Evidentiary Record was prepared, no comments have been received in response to the CEQA documents. Tab 4- Commission's Report to the City Council The Report to the City Council (the "Report to Council") describes, among other things, the deficient physical and economic conditions within the Project Area(s) and why this blight cannot be alleviated without merging the Project Areas into one Merged Project Area. The Report further assesses the economic feasibility of the Merger Amendment. Generally, as evidenced in the Report to the City Council, substantial conditions of blight remain in at least one of the Project Areas. The Commission anticipates merging the Project Areas, thereby eliminating duplicative administrative efforts and combining tax increment, will further the Commission's efforts to alleviate conditions of blight within the Merged Project Area; and the merger will help the Commission to continue its efforts to: i) implement the General Plan and facilitate creation of a more cohesive and better functioning community; ii) improve existing community services and facilities as necessary, and provide new services as necessary to complement redevelopment; iii) improve circulation, utilities, and other infrastructure deficiencies; iv) spur additional economic development and job growth, and v) provide additional affordable housing n LJ • City Council Report February 10, 2009 Page 4 of 5 Tab 5 - Planning Commission Report and Recommendation on the Merger Amendment Tab 5 of the Record contains the Planning Commission's report on the Merger Amendment with respect to its relationship to the City's General Plan (the "General Plan"), including the Planning Commission's recommendation to the Commission and City Council. In this report, the Planning Commission found that the Merger Amendment does not affect, and furthermore, is consistent with the General Plan, because the Merger Amendment does not make changes to the General, Plan land use designations in the Project Areas, or to other General Plan controls or limitations. Tab 6 - Meetings Held With, and Information Transmitted to Home Owners, Property Owners, Residents and Business Tenants, and Taxing and Environmental Entities Tab 6 of the Record contains information prepared for presentation at one public workshop, and transmitted to all affected persons and/or entities in accordance with the CCRL. It also contains information transmitted to all affected taxing and environmental entities in accordance with the CCRL. Tab 7 - Commission Resolution No. 2009-02 Approving the Report to Council • and Transmitting Said Report and the Merger Amendment to the City Council This section contains the Commission's Resolution No. 2009-02 approving the Report to the City Council (see Tab 4 above for further discussion) and authorizing the transmittal of the Report to the City Council and the Merger Amendment to the City Council for that body's subsequent action. This Resolution is considered before the opening of the Commission's Public Hearing. Tab 8, Items A through C - Commission Resolution No. 2009-03 Considering and Adopting the Negative Declaration, Commission Resolution No. 2009-04 Approving the Merger Amendment, and City Council Resolution No. 2009.03 Considering and Adopting the Negative Declaration This section of the Record contains the Commission's Resolution No. 2009-03 and the City Council's Resolution No. 2009-03 Considering and Adopting the Negative Declaration prepared for the Merger Amendment, as well as the Commission's Resolution No. 2009-04 approving the Merger Amendment and recommending that the City Council approve and adopt the Merger Amendment. Tab 8, Item D - Community Development Commission Resolution Authorizing Initiation of the Merger Amendment, and related CEQA Compliance; Making a Determination that Formation of a Project Area Committee is Not Required for the Merger Amendment This section contains the Commission's Resolution concerning initiation of the Merger Amendment and other items. 0 • City Council Report February 10, 2009 Papa 5 of 5 Tab 9 - Proposed City Council Ordinance No. 871 Approving and Adopting the Merger Amendment Tab 9 of the Record is the Proposed City Ordinance No. 871, which approves and adopts the Merger Amendment which the City Council, if it so desires, may introduce for first reading upon close of its Public Hearing. PUBLIC NOTICE PROCESS Notice of the public hearing was published in the San Gabriel Valley Tribune on January 13, 2009, January 20, 2009, January 27, 2009, and February 3, 2009, as well as through the regular agenda notification process. LEGAL REVIEW The attached Resolutions have been reviewed and approved by the Rosemead Community Development Commission's Attorney. Prepared by: La it- Michelle G. Ramirez • Economic Development Administrator Submitted by: J O-L ~ Brian Saeki wf'- Assistant City Manager Attachment A - Evidentiary Record 40 • ORDINANCE NO. 871 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD APPROVING AND ADOPTING THE MERGER AMENDMENT TO THE REDEVELOPMENT PLANS 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, in accordance with procedures codified in the CCRL, by its Ordinance No. 340 adopted June 22, 1972, the City Council of the City of Rosemead (the "City Council") adopted the Redevelopment Plan for the Rosemead Redevelopment Project Area No. 1 ('Plan No. 1" and "Project Area No. 1," respectively); and subsequently amended Plan No. 1 on December 9, 1986, by Ordinance No. 592, December 20 1994, by Ordinance No. 752 and January 22, 2002, by Ordinance No. 822; and WHEREAS, by its Ordinance No. 809, adopted June 27, 2000, the City Council adopted the Redevelopment Plan for the Rosemead Redevelopment Project Area No. 2 ('Plan No. 2" and "Project Area No. 2," respectively); and WHEREAS, Ordinance Nos. 340, 592, 752, 822 and 809 (the "Original Ordinances"), including the findings and determinations made by the City Council therein, are made part hereof by reference, and are final and conclusive, there having been no action timely brought to question the validity of Plan No. 1, as amended, and Plan No. 2 (collectively, hereafter, Plan No. 1 and Plan No. 2 are referred to as the "Original Plans") for Project Area No. 1 and Project Area No. 2 (the "Original Project Areas"); and WHEREAS, pursuant to CCRL Article 12, commencing with Section 33450, the City Council, by ordinance, may amend a redevelopment plan any time after its adoption upon the recommendation of the Commission; and in accordance with CCRL Article 16, commencing with Section 33485, the City Council may, by amendment of each affected redevelopment plan, "merge" redevelopment project areas if such mergers result in substantial benefit to the public and contribute to the revitalization of blighted areas through the increased economic vitality of those areas and through increased and improved housing opportunities in or near such areas; and 0 • WHEREAS, Commission has prepared a proposed amendment (the "Merger Amendment") to the Plans for the sole purpose of merging the Original Project Areas (hereafter, as proposed to be amended by the Merger Amendment, the Original Project Areas are referred to as the "Merged Project Area,"); and the Merger Amendment does not change any other aspect of the Original Plans or the Merged Project Area; and WHEREAS, the Commission has caused an initial environmental study to be prepared and based thereon it has been determined by the Commission and the City Council that a negative declaration of environmental impact (the "Negative Declaration") be adopted for the Merger Amendment in accordance with the provisions of the California Environmental Quality Act ("CEQA Statutes," Public Resources Code Section 21000 at seq., and "CEQA Guidelines," 14 California Code of Regulations, Section 15000 et seq.; collectively, the CEQA Statutes and the CEQA Guidelines are referred to as "CEQA") in response thereto; and WHEREAS, in accordance with CCRL, Sections 33344.5 and 33344.6, the Commission has caused a Unified Report for the Merger Amendment to be prepared and transmitted to each affected taxing entity as well as to the State Departments of Finance and Housing and Community Development in conformance with CCRL Section 33451.5; and • WHEREAS, the City Council has received the Merger Amendment from the Commission, a copy of which is on file in the Office of the City Clerk, 8848 E. Valley Boulevard, Rosemead, California, 91770, and which is entitled, "Amendment to Merge Rosemead Redevelopment Project Area No. 1 and Project Area No. 2", and WHEREAS, in accordance with the provisions of CCRL, Sections 33457.1 and 33452, the City Council has also received the Commission's Report to the City Council on the Merger Amendment, including, among other things: i) the reasons for amending the Original Plans; ii) a description of the physical and economic conditions existing in the Merged Project Area; iii) a map of the Merged Project Area that identifies the portions of the Merged Project Area that are no longer blighted, the portions that remain blighted, and the portions that contains necessary and essential parcels for the elimination of remaining blight, iv) descriptions of the projects and programs to eliminate remaining blight and how these projects and programs will improve conditions of blight v) reasons why projects and programs cannot be completed without the Merger Amendment; vi) proposed method of financing these projects and programs; vii) amendment to the current implementation plan; and viii) neighborhood impact report; all as required by CCRL 33451.5; which Report was approved by the Commission by its Resolution No. 2009-02, February 10, 2009, and WHEREAS, pursuant to CCRL Section 33347, the Planning Commission of the City has filed with the City Council its report (the "Conformity Report") required by CCRL Section 33346 that the MeFgeF Amendment does not affeGt and 06 GGR606t8Rt With the Gity's General Plan, and recommending approval and adoption of the Merger Amendment; and 2 • WHEREAS, the City Council and the Commission, respectively, held public hearings on February 10, 2009, in City Council Chambers, Rosemead City Hall, 8838 East Valley Boulevard, Rosemead, California, 91770; and WHEREAS, notice of said respective public hearings was duly and regularly published in the City's and Commission's newspaper of record in general circulation in the City, once a week for three successive weeks prior to the date of such respective public hearings, and a copy of said notice in English, Chinese, Vietnamese and Spanish, was mailed by first class mail to each last known assessee, as shown on the last equalized assessment roll of the County of Los Angeles, for each parcel in the Merged Project Area, and to all known residents and businesses located on each parcel in the Merged Project Area, not less than thirty (30) days prior to the date of commencement of the respective public hearings, and affidavits of such publications and such mailings are on file with the City Clerk and/or the Agency; and WHEREAS, copies of the notice of public hearings were mailed by certified mail, return receipt requested to the governing body of each identified taxing agency (as defined under CCRL Section 33353.2) as required by law; and WHEREAS, the Commission, as "Lead Agency" (as defined in CEQA Statutes), has reviewed, approved and adopted the Negative Declaration prepared pursuant to CEQA and • CCRL requirements by its Resolution No. 2009-03 on February 10, 2009; and WHEREAS, the City Council has reviewed and considered the Negative Declaration and adopted the Negative Declaration for the Merger Amendment prepared pursuant to CEQA and CCRL requirements by its Resolution No. 2009-03 on February 10, 2009; and WHEREAS, the Commission has approved the Merger Amendment by its Resolution No. 2009-04 on February 10, 2009, and has recommended the City Council approve and adopt the Merger Amendment; and WHEREAS, the City Council has considered the report and recommendation of the Planning Commission, the Agency's Report and recommendation to the City Council , the Merger Amendment, the Negative Declaration, and the public input received from the community at the public hearings, and has provided an opportunity for all persons to be heard regarding the Merger Amendment and the Negative Declaration, and has received and considered all evidence and testimony presented for or against any and all aspects of the Merger Amendment; and has made written findings in response to each written objection (if any) of an affected property owner or taxing entity filed with the Commission or with the City Council prior to or at the Commission's public hearing or the City Council's public hearing on the Merger Amendment; and the City Council for the Merger Amendment, the Planning Commission's Conformity Report, 1011 the legal descriptions and map of the Merged Project Area, the Negative Declarations forthe 3 • Declarations for the Merger Amendment, and other appropriate public documents are on file in the Office of the City Clerk, Rosemead City Hall, 8838 E. Valley Boulevard, Rosemead, California 91770, and are available for public inspection; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The above facts are true and correct and a substantive part of this Ordinance. Section 2. The document entitled, "Amendment to Merge Rosemead Redevelopment Project Area No. 1 and Project Area No. 2" (referred to herein as the "Merger Amendment"), on file in the office of the City Clerk and attached hereto as Exhibit A, is hereby incorporated by this reference. Section 3. The purposes and intent of the City Council are to eliminate conditions of blight in the Merged Project Area and to help prevent their reoccurrence by undertaking all appropriate redevelopment projects in accordance with the CCRL to contribute to the revitalization of blighted areas through increased economic vitality of those areas and through increased and improved housing opportunities in or near such areas. Section 4. Based upon the evidence in the record, including but not limited to the Commission's Report to the City Council for the Merger Amendment in accordance with • CCRL Sections 33352 and 33457. 1, and all documents referenced therein, and evidence and testimony received at the City Council public hearing, the City Council hereby makes the following findings and determinations as warranted by the Merger Amendment: A. Amending the Original Plans by adopting the Merger Amendment is necessary and desirable to complete redevelopment of the Merged Project Area and to increase the probability of achieving the goals and objectives of the Original Plans in the Merged Project Area. B. Significant conditions of blight remain within portions of the Merged Project Area which might not be alleviated without adoption of the Merger Amendment. Such conditions documented during the adoption process of the Merger Amendment within the Merged Project Area include, but are not limited to: the existence of buildings in which it is unsafe and unhealthy for persons to live or work, including buildings which exhibit dilapidation and deterioration, the existence of factors that prevent or substantially hinderthe economically viable uses or capacity of buildings or lots, the existence of subdivided lots of irregular from and shape and of inadequate size for proper usefulness and development that are in multiple ownership, depreciated or stagnant values or impaired investments, inadequate public improvements, inadequate parking facilities, defective design/physical construction, deterioration, obsolescence, and public service issues. This finding is based, in part, on the information contained in Section 4.0 of the Report to Council, describing the remaining physical an economic conditions o blight an providing compelling evidence a • such conditions are still significant in the Merged Project Area, and on that fact that governmental action available to the City, without merging the Original Project Areas, would 4 • Original Project Areas, would be insufficient to cause significant correction of the remaining blighted conditions in the Merged Project Area. This finding is based on the Commission's Report to Council for the Merger Amendment, which describes the blight remaining in the Merged Project Area, evaluated by recent analyses undertaken by the Commission as a part of the Merger Amendment process, wherein the foregoing combination of blighting conditions causes a reduction of, or lack of, proper utilization of the Merged Project Area that cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without merging the Original Project Areas. The Merger Amendment will help the Agency to more effectively implement the Original Plans, including their goals and objectives, within or of benefit to the Merged Project Area, by providing important fiscal flexibility in administering projects throughout the Merged Project Area help accomplish the construction of public improvements, and to facilitate implementation of Commission economic development and affordable housing programs, that are necessary to lessen the remaining blighting conditions found in the Merged Project Area. This finding is further based on the City Council's earlier findings contained in the Original Ordinances for the Original Plans, which found each of the Original Project Areas to be predominantly urbanized as described above. The decisions by the City Council in connection with the adoption of the Original Ordinances are final and conclusive and after those adoption dates, it has been, is and shall be presumed that the territory included in 0 Original Project Areas, and therefore in the Merged Project Area, is urbanized. C. Amending the Original Plans by adoption of the Merger Amendment provides the Agency a fortified redevelopment tool, helping it redevelop the Merged Project Area in conformance with the provisions and intent of the CCRL, and in the interests of the public peace, health, safety and welfare. Implementation of the Original Plans as amended by the Merger Amendment will assist in fulfilling the objectives of the CCRL by helping to eliminate conditions of blight within the Merged Project Area. The Original Plans provide for, among other things the following redevelopment actions: 1. Acquisition, installation, development, construction, reconstruction, redesign, replanning, or reuse of streets, utilities, curbs, gutters, sidewalks, street lighting, landscaping, and other public improvements, facilities, utilities or other structures. 2. Acquisition and disposition of property acquired for uses in accordance with the Original Plans. 3. Redevelopment of land by private enterprise or public agencies for uses in accordance with the Original Plans. 4. Construction and improvement of recreational facilities community facilities. • parking facilities and other public uses. 5 5. Acquisition, preservation, construction, or rehabilitation or other provision of housing for low and moderate-income families, seniors and handicapped individuals. 6. Financing of the construction of residential, commercial and industrial buildings and the mortgage financing of residential, commercial and industrial buildings, as permitted by applicable State and local laws, to increase the residential, commercial and industrial base of the City and the number of temporary and permanent jobs within the City. 7. In appropriate cases, rehabilitation of structures and improvements or development of vacant land by present owners, their successors and the Agency for uses in accordance with the Original Plans. 8 Demolition or removal of buildings and improvements; site preparation. 9. Management of any property acquired under the ownership and control of the Agency. 10 Such other actions as may be permitted by law. The Merger Amendment provides that Original Project Areas are merged. . Such merger will result in substantial benefit to the public and will 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. For financing purposes and for any other purposes permitted or required by law, the Original Project Areas are merged and together shall be called the "Rosemead Merged Project Area" D. The adoption and carrying out of the Original Plans, as amended by the Amendment is economically sound and feasible. This finding is based on the fact that the purpose of the Merger Amendment is to merge the Original Projects which will enable the Commission to more effectively administer and implement redevelopment projects and programs in the entire Merged Project Area because it will allow the Commission to, i) move tax increment dollars within the Merged Project Area, and ii) have greater flexibility with respect to long-term projects financing. The Merger Amendment will enable the Commission to use tax increment and other revenues being generated within the Original Project Areas to fund needed projects and programs to eliminate existing blighting conditions within the Merged Project Area which are presently underfunded. Should the Commission find it necessary and appropriate, revenues being generated from within the Merged Project Area could be combined to pay future debt service on one or more larger bond issues. The City Council finds the Merged Project Area will benefit from the implementation of the Merger Amendment because a greater number of Commission projects and programs can be successfully completed, thereby facilitating the achievement of Commission objectives • discussed within the Original Plans. 6 • The finding that the Original Plans as amended by the Merger Amendment are economically sound and feasible is further based, on information provided in Section 5.0 of the Commissions Report to City Council and on the fact that under the Merger Amendment the Commission will now be authorized to seek and use a variety of potential financing resources, including the issuance of tax allocation notes and bonds secured by property tax increment; that the nature and timing of public redevelopment assistance will depend on the amount and availability of such financing resources, including tax increment, generated by new investment in the Merged Project Area; that under the Original Plans, as amended by the Merger Amendment, no public redevelopment activity in the Merged Project Area can be undertaken unless the Commission can demonstrate that it has adequate revenue to finance the activity; and that the financing plan included within the Commission's Report to the City Council demonstrates that sufficient financial resources will be available to carry out the Original Plans as amended by the Merger Amendment. E. The Merger Amendment is consistent with the General Plan of the City, including, but not limited to, the Housing Element of the General Plan, which substantially complies with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This finding is based on the finding of the Planning Commission that the Merger Amendment conforms to the General Plan for the City as set forth in its Resolution No. 08-33 adopted December 15, 2008. • F. The carrying out of the Original Plans as amended by the Merger Amendment would continue to promote the public peace, health, safety and welfare of the City and would effectuate the purposes and policies of the CCRL. This finding is based on the fact that redevelopment will benefit the Merged Project Area by continuing to correct significant conditions of blight and by coordinating public and private actions to stimulate development and improve the economic and physical conditions of the Merged Project Area, and by increasing employment and housing opportunities within the City. G. The Commission proposes no displacement of families and persons; the Original Plans, as proposed to be amended by the Merger Amendment, do not provide the Commission with the authority to acquire property in the Merged Project Area. In the event of any displacement in the future, the Commission has a feasible method and plan for the relocation of families and persons displaced, temporarily or permanently, from housing facilities in the Merged Project Area. The Commission also has a feasible method and plan for relocation of businesses. This finding is based upon the fact that in conjunction with the adoption of each of the Original Plans, the Commission adopted individual plans for relocation of families, persons and businesses who may be displaced by Commission projects. The relocation plans a ~ depted f^.'h O„g al P1 P and e g c or relocation assistanee within the Merged n~-,-~R Project Area according to law, and such assistance, including relocation payments, constitutes a feasible method for relocation. 7 • H. The Commission proposes no displacement of families and persons; the Original Plans, as proposed to be amended by the Merger Amendment, do not provide the Commission with the authority to acquire property in the Merged Project Area. In the event of any displacement in the future, there are, or shall be provided, within the Merged Project Area or within other areas not generally less desirable with regard to public utilities and public and commercial facilities and at rents or prices within the financial means of the families and persons who might be displaced from the Merged Project Area, decent, safe and sanitary dwellings equal in number to the number of and available to such displaced families and persons and reasonably accessible to their places of employment. 1. The finding and determination required by CCRL Section 33367(d)(9) is not warranted by the Merger Amendment because the Merger Amendment does not alter the boundaries of the Original Project Areas. The City Council previously found and determined for the Original Project Areas that all noncontiguous areas are either blighted or necessary for effective redevelopment and are not included for the purpose of obtaining the allocation of taxes from the area pursuant to CCRL Section 33670 without other substantial justification for their inclusion. J. The finding and determination required by CCRL Section 33367(d)(10) is not warranted by the Merger Amendment because the Merger Amendment does not affect the boundaries of the Original Project Areas. The City Council previously found and determined in the Original Ordinances that inclusion of any lands, buildings, or improvements which are • not detrimental to the public health, safety or welfare is necessary for the effective redevelopment of the entire area of which they are a part, and any such area is not included solely for the purpose of obtaining the allocation of tax increment revenues from such area pursuant to CCRL Section 33670 without other substantial justification for such inclusion. K. The elimination of blight and the redevelopment of the Merged Project Area could not reasonably be expected to be accomplished by private enterprise acting alone, or by governmental action, or both, without the aid and assistance of the Commission. This finding is based upon the existence of blighting influences, as described in the Reports to the City Council prepared for the Original Projects and the Original Ordinances and on the continued existence of significant blight as described in the Report to Council for the Merger Amendment, which Reports include a lack of adequate public improvements and facilities, and the inability of individual owners and developers to economically remove these blighting influences without substantial public assistance available pursuant to the CCRL. L. The finding and determination required by CCRL Section 33367(d)(12) is not warranted by the Merger Amendment because the Merger Amendment does not affect the boundaries of the Original Project Areas. The Commission previously documented that the Original Project Areas are predominantly urbanized areas as defined in CCRL Section • accordance with CCRL Section 33344.4, which demonstrated that not less than eighty percent (80%) of the land in each of the Original Projects has been or was developed for 8 • urban uses, was an integral part of one or more areas developed for urban uses which were surrounded or substantially surrounded by parcels which had been or were developed for urban uses, or contained parcels that had been subdivided into an irregular form or shape, and were of inadequate size for proper usefulness and development, and were in multiple ownership M. The finding and determination required by CCRL Section 33367(d)(13) is not warranted by the Merger Amendment because the Merger Amendment does not alter any time limitations in the Original Plans. The City Council previously found and determined in the Original Ordinances that the time limitations contained in the Original Plans are reasonably related to the proposed projects to be implemented in the Original Project Areas and to the Commission's ability to eliminate blight within the Original Project Areas. N. The implementation of the Original Plans, as amended by the Merger Amendment, will continue to improve or alleviate the physical and economic conditions of blight remaining in the Merged Project Area, as described in the Report prepared pursuant to CCRL Section 33352. This finding is based, in part, on information contained in Section 4 of the Report to Council which describes the physical and economic conditions of blight in the Original Project Areas and in Sections 1 and 5 which describe how implementation of the Plan will improve or alleviate these conditions. This finding is based upon the fact that in conjunction with the adoption of each of the Original Plans, the Commission determined in its Reports to Council for the Original Plans, also prepared pursuant to CCRL Section 33352, that implementation of the Original Plans would improve or alleviate the physical and economic conditions of blight in the Original Project Areas. Section 5. The City Council is satisfied that permanent housing facilities will be available within three years from the time occupants of the Merged Project Area, if any, are displaced, and that, pending the development of such facilities, there will be available to any such displaced occupants adequate temporary housing facilities at rents comparable to those in the City at the time of their displacement. T Section 6. Written objections to the Merger Amendment filed with the Commission or the City Council before or at the Commission public hearing or the City Council public hearing on the Merger Amendment, as such meetings may be continued from time to time, and oral objections (if any) presented to the Commission or City Council at their respective public hearings having been considered and, in the case of written objections received from Merged Project Area property owners and affected taxing agencies, having been responded to in writing, all such objections are hereby overruled. Section 7. By its Resolution No. 2009-03, dated February 10, 2009, the City Council has adopted the Negative Declaration for the Merger Amendment, a copy of which is on file in the affing of the Cnrnrnission and On the pffirQ of the City Clerk, fiAding that no mitigation • measures or mitigation monitoring program is required as a condition of Merger Amendment adoption. 9 Section 8. Ordinance No. 340, adopted June 22, 1972, and subsequently amended by Ordinance No. 592, December 20 1994, by Ordinance No. 752 and January 22, 2002, by Ordinance No. 822, is hereby amended to revise the Redevelopment Plan for Project Area No. 1 in accordance with the Merger Amendment. Ordinance No. 809, adopted June 27, 2000, is hereby amended to revise the Redevelopment Plan for Project Area No. 2 in accordance with the Merger Amendment. That certain "Amendment to Merge the Rosemead Redevelopment Project Area No. 1 and Project Area No. 2," and the map contained therein, a copy of which is on file in the office of the Commission and the office of the City Clerk, having been duly reviewed and considered, is hereby incorporated into this Ordinance by reference and made a part hereof, and as so incorporated is hereby designated, approved, and adopted as the official Merger Amendment to the Original Plans, redevelopment plans adopted in accordance with the CCRL, for. the Merged Project Area. Section 9. In order to implement and facilitate the effectuation of the Merger Amendment hereby approved, this City Council hereby: (a) pledges its cooperation in helping to carry out the Merger Amendment, (b) authorizes and directs the various officials, departments, boards, and agencies of the City having administrative responsibilities in the Merged Project Area likewise to cooperate to such end and to exercise their respective functions and powers in a manner consistent with redevelopment of the Merged Project, (c) stands ready to consider and take appropriate action upon proposals and measures designed to effectuate the Merger Amendment, and (d) declares its intention to undertake 40 and complete any proceeding, including the expenditure of moneys, necessary to be carried out by the City under the provisions of the Merger Amendment. Section 10. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Commission, whereupon the Commission is vested with the responsibility for carrying out the Merger Amendment. Section 11. The City Clerk is hereby directed to record with the County Recorder of the County of Los Angeles a description(s) of the land within the Merged Project Area and a statement that the Original Projects have been merged under the CCRL. Section 12. The City Clerk is hereby directed to transmit a copy of the description and statement recorded by the City Clerk pursuant to Section 9. of this Ordinance, a copy of this Ordinance, and a map(s) or plat(s) indicating the boundaries of the Merged Project Area, to the Auditor-Controller and Assessor of the County of Los Angeles, to the governing body of each of the taxing agencies which receives taxes from property in the Merged Project Area, and to the State Board of Equalization, within thirty (30) days following the adoption of the Merger Amendment. Section 11. The City Clerk is hereby authorized and directed to certify to the passage of this Ordinance and to cause the same, or a summary thereof, to be published in a newspapel of geneld! cilculation which is published and chculated in the City. 0 10 Section 12. If any part of this Ordinance, or the Merger Amendment which it approves, is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance or of the remaining portion of the Merger Amendment, and this City Council hereby declares that it would have passed the remainder of the Ordinance, or approved the remainder of the Merger Amendment, if such invalid portion thereof had been deleted. Section 13. This Ordinance shall be in full force and effect thirty (30) days after adoption. PASSED, ADOPTED AND APPROVED this 10'h day of March 2009. John Tran Mayor ATTEST: Gloria Molleda City Clerk C1 APPROVE AS TO FORM: Joe Montes City Attorney 0 11