Low-income apartment project at Savi Ranch

An agreement to allow a low-income apartment project at Savi Ranch has been approved by City Council members acting as directors of the Yorba Linda Redevelopment Agency.

Forty-three units will be built on 3.2 acres once occupied by a Mitsubishi and Chevrolet dealership along East Park Drive, one of 13 sites--two at Savi Ranch and 11 in the city’s westend--the council identified in 2009 for potential high-density housing.

The number of apartments is based on a maximum density of 10 units per acre, plus a 35 percent “density bonus” allowed by state law, for a 13.5 units-per-acre total, Pam Stoker, the city Housing and Redevelopment Manager, told council members earlier this month.

A proposal to allow up to 30 units per acre at the site was placed on the November 2010 ballot as Measure Z and lost by only 197 votes, 13,344 to 13,147. A second vote on the issue might be set for a June election, as noted in the city pact with a non-profit housing corporation.

If a new ballot is scheduled and is successful, the agreement with National Community Renaissance of California would be modified to reflect the higher density. A majority of westside voters favored Measure Z last year, while a majority of eastsiders were opposed.

National Community Renaissance spent $44,752 promoting a “yes” vote on Z. The only publicly stated opposition was Planning Commissioner Mark Abramowitz’s Letter to the Editor published online by this newspaper. Council fired Abramowitz the next month.

Affordability of the apartment units would be ensured “for extremely low, very low and low-income residents” for 99 years, according to Stoker’s report to council. The project mix would include 15 three-bedroom, 22 two-bedroom and six one bedroom units.

The city’s Redevelopment Agency would loan project developers $5 million for property acquisition and $3.2 million for construction, out of an estimated total $18.8 million cost.

Agency funding comes from “tax increment,” the increase in property taxes collected due to development since the creation of the city project area, 2,640 eastside acres designated in 1983 and 344 westside acres added in 1990, out of the city’s total 11,125 acres.

Normally, some of the increased property taxes would flow into the city’s general fund to pay for added police protection and other costs new homes and businesses would require, but the agency takes all the increase, except for “pass through” payments to other taxing agencies, such as the county and several school, water and special interest districts.

Of course, the city hopes to make up the difference for the general fund in added sales tax revenue generated by new business development but a down economy and a still sluggish recovery have left recent sales tax income flat or lower than in past years.

One note of optimism, however, comes in a “mid-year budget update” to the council by city Finance Director Dave Christian, who noted July through December 2010 sales tax revenue showed anticipated fiscal year 2010-11 income could be $5.4 million, $400,000higher than expected but still below 2000-01 and 2001-02 levels.

According to a “schedule of performance” in the agreement with National Community Renaissance, construction would take 18 months with completion slated in April 2014.

City, school officials respond to Brown's budget

Two key elements of Gov. Jerry Brown’s state budget plan—calling a special election to extend higher income, sales and vehicle taxes and eliminating redevelopment agencies—have drawn specific responses from local city and school district officials.

In unanimous votes, Placentia-Yorba Linda school trustees supported placing a “revenue extension measure” on a June ballot, and City Council members initiated four procedures to “safeguard” funds held by the city’s 27-year-old Redevelopment Agency.

School trustees advocated putting a measure on a June election ballot calling for a five-year extension of previously adopted “temporary” tax increases “to protect our schools and students by making education a priority in our state.”

Among 10 “whereas” clauses in a recently adopted resolution is one that notes “the governor’s budget proposal to limit further cuts to schools … is dependent on voter approval of an extension of existing temporary tax increases.”

Superintendent Dennis Smith told trustees the district could lose up to $330 per average daily attendance or an equivalent of about $8 million in 2011-12 after cutting about $30 million the past five years “should this special election not take place or fail to pass.”

City actions focus on preserving funds held by a Redevelopment Agency that collects “tax increment” revenue from 2,984 of the city’s 11,125 acres. The “increment” is the increase in property taxes after creation of a redevelopment project area.

The city’s project area includes 2,640 acres on the eastside designated in 1983 and 344 acres on the westside designated in 1990. Annual income is approximately $21 million.

In the first of four votes, council members, who also serve as Redevelopment Agency directors, authorized City Manager and agency Executive Director Steve Rudometkin to quickly repay $6 million in loans the agency owes the city, if the agency is dissolved.

“The agency’s ability to use tax increment to repay the existing city loans will be placed in limbo if the governor’s plan is adopted,” Finance Director Dave Christian told council, adding that officials want to be able to “turn on a dime,” depending on Brown’s proposal.

In a second vote, the council and agency committed $10.1 million to three projects to create a “contractual obligation” to pay for the work, if the state dissolves the agency.

The projects include the $2.5 million cleanup of underground gas station contamination at Imperial Highway and Lemon Drive, a $2.4 million Savi Ranch sign replacement and $5.2 million for possible acquisition, relocation and demolition of Town Center housing.

In a third vote, the council and agency authorized staff to begin steps to issue agency bonds to finance Town Center infrastructure projects. The agency can sell about $20 million in bonds based on current tax increment revenue, according to Christian, who noted consultants recently pegged possible infrastructure costs at about $29 million.

Finally, council authorized a Yorba Linda Housing Authority, with council members serving as commissioners--but without any additional pay, stipends or fringe benefits.

The housing body could administer the $21.4 million estimated 2010-11 balance in the agency’s low and moderate income housing fund, should the state dissolve the agency.