City of Culver City, California
Agenda Item Report
Meeting Date: 12/07/09 Item Number: A-2
REDEVELOPMENT AGENCY BOARD AGENDA ITEM: Receive and File a
Memorandum on Eminent Domain Amendment Feasibility and Direct Staff to Issue
Requests for Proposal for Redevelopment and Environmental Consultants for
Redevelopment Plan Amendment Services
Contact Person/Dept.: John Fisanotti
Glenn Heald
Phone Number: (310) 253-5767
(310) 253-5752
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification Notice was published in the Culver City News on November 26 and
December 3, 2009 and by E-Mail to Meetings and Agendas – Redevelopment Agency by
12/04/09.
Department Approval:
Sol Blumenfeld (11/24/09)
Agency General Counsel Approval:
Murray O. Kane (11/24/09)
Chief Financial Officer Approval:
Mark Scott (by N. Kimball) (12/01/09)
Executive Director Approval:
Mark Scott (12/02/09)
RECOMMENDATION:
Staff recommends that the Redevelopment Agency Board (Board) (1) receive and
file a memorandum on eminent domain amendment feasibility and (2) direct staff to
issue a request for proposals for redevelopment and environmental consultants for
redevelopment plan amendment services affecting Component Areas 3 and 4 in
order to extend the time limit for the potential use of eminent domain.
BACKGROUND:
Pursuant to the Redevelopment Plan, the authority for the Redevelopment Agency
(Agency) to use eminent domain expires on December 23, 2010 in all four
component areas of the Culver City Redevelopment Project. If the Board wishes to
extend the authority beyond that date, the Redevelopment Plan must be amended.
When required, the Agency has used eminent domain to complete property
acquisition where a negotiated purchase cannot be achieved and the required
findings can be made. The Agency has not and cannot use eminent domain to
acquire residential properties. This same restriction is expected to be continued
should the eminent domain authority be extended.
On February 2, 2009, the Board approved a contract with UFI/GRC Redevelopment
Planning (the “Consultant’) to conduct a preliminary feasibility study to determine if
there appears to be sufficient evidence to support the findings necessary to amend City of Culver City, California
Agenda Item Report
the Redevelopment Plan. The Board chose to seek a preliminary feasibility study to
obtain an opinion of whether the requisite findings necessary for an amendment
could be made.
DISCUSSION:
Amending the Redevelopment Plan, in accordance with the requirements of the
California Health and Safety Code|1010|, can be a lengthy and costly process (the
consultant cost for doing the required studies and preparing the necessary
documents could be as much as $100,000.)
As detailed in the Memorandum (see Attachment No. 1), pursuant to California
Redevelopment Law, it must be found that: significant blight|1010| remains and that the
blight cannot be eliminated without the use of eminent domain. The preliminary
study concludes “In general, our analysis indicates that sufficient blight remains in
the four existing redevelopment project areas to justify extending non-residential
eminent domain authority for the statutory maximum of twelve years.”
As alluded to above time limit extensions for continued use of eminent domain are
limited by law to a maximum of 12 years. However, in three of the four component
areas the redevelopment project will expire in less than 12 years. Therefore, the
maximum extension which could be considered is:
Component Area Expiration Extension____________
No. 1 July 26, 2014 3½ years
No. 2 December 28, 2014 4 years
No. 3 November 25, 2018 8 years
No. 4 December 23, 2022 12 years
Redevelopment often requires assembling a development site from a group of
smaller adjoining parcels within the Redevelopment Project Area. The inability to
acquire a critical piece can stop a vitally needed project. Eminent domain provides a
necessary tool to accomplish land assembly. Moreover, there are tax benefits
through condemnation that can be conferred to property owners. Thus, an Agency
that is seeking to have all the tools of redevelopment at its disposal would be
disadvantaged without the authority to use eminent domain to acquire parcels and
relocate occupants. Again, the Agency does not currently posses the authority to
use eminent domain for residential parcels nor is it proposed to create that authority
|1010| California Redevelopment Law (Health & Safety Code Section Division 24, Part 1, Chapter 4, Article
12, commencing with §33450 et seq.) details the steps necessary to amend a Redevelopment Plan
for the Redevelopment Project. In this particular case, an added requirement would be evidence for
the record to support findings that: A) Significant blight remains within the project area; and B) That
this blight cannot be eliminated without the use of eminent domain. |1010| Refer to pages 2 and 3 of Attachment No. 1 for the conditions of blight as defined in California
Redevelopment Law. City of Culver City, California
Agenda Item Report
in the contemplated extension period if such an extension period is ultimately
adopted by the Board.
The Consultant’s report preliminarily concludes that there is sufficient evidence of
blight in each of the four Component Areas of the Redevelopment Project to extend
the time limit on the use of eminent domain, though the timeframes vary by project
area from 3 1/2 to 12 years.
Based upon the Consultants’ preliminary conclusions and the expiration dates of the
various project areas, staff recommends the Board focus on renewing the eminent
domain authority in Project Areas 3 and 4. The use of eminent domain is best
justified in Component Areas 3 and 4, since there are fewer opportunities for land
assembly and eliminating blight in areas 1 and 2. By eliminating Component Areas
1 and 2 from consideration, the Agency would achieve a savings in the cost of the
amending the plan. The savings would come primarily from reduced field work,
somewhat reduced analytical costs and reduced administrative costs such as
printing and mailing.
If the Board approves moving forward with the RFP process, staff will seek
proposals from qualified redevelopment and environmental consultants for the work
necessary to amend the Redevelopment Plan in Component Areas 3 and 4, and
present the results to the Board for consideration (currently projected for the first half
of 2010).
FISCAL ANALYSIS:
As a necessary tool of redevelopment, eminent domain can provide increased land
value and increased tax revenues. For example, a projection of the possible
increase in assessed valuation and the corresponding increase in tax increment was
calculated in Attachment No. 2. The calculation analyzes a new two-story
commercial development which is projected to result in an average increase of
334% over the average of current assessed values. This equates to new tax
increment of approximately $72,000 per acre of new development per year to the
Agency (tax increment is distributed 80% to commercial/industrial funds and 20% to
the Low- and Moderate Income Housing Set Aside Fund). If the Agency’s eminent
domain authority is not extended the opportunity to capture the monies resulting
from this increased tax increment may be lost.
An initial budget of $100,000 for the necessary consultant and environmental
services, needed to properly process a redevelopment plan amendment is
recommended. Some funds are available in the Agency’s budget for fiscal year
2009-10 in account No. 59190400.619800. If the decision is made to proceed with
obtaining proposals for consultant services, staff will recommend a budget
amendment after the proposals have been received and the actual costs are known.
City of Culver City, California
Agenda Item Report
ATTACHMENTS:
1. Memo dated July 15, 2009, from UFI/GRC Redevelopment Planning
2. Projection of future tax increment income to the Agency
MOTION:
That the Redevelopment Agency Board:
1. Receive and file a memorandum, dated July 15, 2009 from UFI/GRC
Redevelopment Planning on the feasibility of amending the Redevelopment
Plan for the Culver City Redevelopment Project to extend the time limit for the
use of eminent domain; and,
2. Direct the Executive Director to issue a request for proposals for
redevelopment and environmental consultants for redevelopment plan
amendment services to extend the time limit on the use of eminent domain in
Component Areas 3 and 4.
12/07/09
Receive and File a Memorandum on Eminent Domain
Amendment Feasibility and Direct Staff to Issue Requests
for Proposal for Redevelopment and Environmental
Consultants for Redevelopment Plan Amendment Services.
MEETING DATE:
AGENDA ITEM:
ATTACHMENTS
Pages
1. Memo dated July 15, 2009, from UFI/GRC Redevelopment Planning 1-11
2. Projection of future tax increment income to the Agency 12-13Financial Advisors
Redevelopment & Planning
Economic Development
Compliance Administration & Training
Management Advisors
Continuing Disclosure
Memo
ATTACHMENT 1
vg. ,77
URBAN
FUTURES
N P L
UFT / GRC
3111 N. Tustin Street, Suite 230
Orange, CA 92865-1753
Telephone: (714) 283-9334
Fax: (714) 283-9319
To: John Fisanotti
From: Ernie Glover
Date: July 15, 2009
RE: Eminent Domain Amendment Feasibility
Introduction
This memorandum examines the potential for amending Culver City's existing redevelopment project
areas to extend eminent domain authority on properties used for non-residential purposes. The
following recommendations are based on a generalized field analysis of remaining blight conditions
performed by Lin IGRC Redevelopment Planning, and upon interviews with Redevelopment Agency and
City departmental staff members.
In general, our analysis indicates that sufficient blight remains in the four existing redevelopment
project areas to justify extending non-residential eminent domain authority for the statutory maximum
of twelve years.
Recommendation
Authorize Redevelopment Agency staff to begin the plan amendment program by recruiting a
redevelopment plan amendment consulting firm in conformance with Redevelopment Agency
procedures. The eminent domain amendment should be limited to extension of eminent domain
authority on property used for non-residential purposes only All forms of legal residential use would be
exempted from eminent domain, with the possible exception of care-taker dwellings associated with
non-residential uses such as industrial development_
An eminent domain extension program could take up to twelve months, but can usually be completed in
six to nine months depending on the issues and controversy involved.
-1-Criteria for Extending Eminent Domain Authority
Sections 33333.4(a)(3)(A) and (B) of the Health and Safety Code (the "Community Redevelopment Law"
or "CRL") set the basic requirements for the extension or re-institution of eminent domain authority in
redevelopment project areas. The Agency must find, based on substantial evidence, that significant
blight remains in the Project Areas, and that the blight cannot be eliminated without the use of eminent
domain. In short there must be a nexus between the remaining blight documented for the amendment
and the use of eminent domain.
Note that the adoption of Proposition 99 in 2008 significantly limited eminent domain use by
redevelopment agencies. This proposition excluded, with certain exceptions, owner-occupied
residences from a redevelopment agency's authority to acquire property through eminent domain. It is
proposed herein to extend the Agency's eminent domain authority, but only to include properties used
for non-residential purposes. As an example, an apartment along a commercial corridor would be
excluded, but a commercial use would not be excluded.
Conditions of Blight
The CRL divides conditions of blight into physical and economic. Blight surveys and documentation are
aimed at identifying the presence and extent of these following conditions, although not all need to be
present to substantiate prevalent or significant blight.
Physical Blight
According to CRL Section 33031(a), the following conditions are the physical characteristics that cause
blight:
• 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.
• 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.
• Adjacent or nearby incompatible land uses that prevent the development of those parcels or
other portions of the project area.
• 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.
-2-Economic Blight
In addition to having conditions of physical blight, redevelopment areas must also exhibit at least one
condition of economic blight. According to CRL Section 33031(b), the following conditions are the
economic characteristics that cause blight:
• Depreciated or stagnant property values
• Impaired property values, due in significant part, to hazardous wastes on property where the
agency may be eligible to use its authority
• Abnormally high business vacancies, abnormally low lease rates, or an abnormally high number
of abandoned buildings
• A serious lack of necessary commercial facilities that are normally found in neighborhoods,
including grocery stores, drug stores, and banks and other lending institutions
• Serious residential overcrowding that has resulted in significant public health or safety problems
• An excess of bars, liquor stores, or adult-oriented businesses that has resulted in significant
public health, safety, or welfare problems
• A high crime rate that constitutes a serious threat to the public safety and welfare.
A blighted area that contains the conditions described above may also be characterized by the existence
of inadequate public improvements or inadequate water or sewer utilities.
Project Area Analysis
The following sections assess in general terms the remaining conditions of blight in each of the City's
four Component Areas. 'This is not intended as a detailed or definitive blight analysis; rather, it is
intended to show that sufficient blighting conditions appear to remain in the Project Areas, and that
these observed conditions would justify more detailed analysis.
Component Area 1 ("SlausoniSepulveda")
Component Area 1 (see Figure 1) is the oldest of the Agency's redevelopment project areas, and will
expire in July 2014. As with the other Component Areas, current eminent domain authority will expire
on December 23, 2010. An eminent domain extension will allow the Agency to commence eminent
domain proceedings in this Component Area through July 26, 2014.
Land uses in this Component Area include commercial and office development, with some residential
uses on Playa Street. The office development is modern, Class A, in character. The Westfield
Shoppingtown Mall (Fox Hills Mall) is currently being significantly upgraded. However, commercial
The four original redevelopment project areas were merged into a single project area in 1998. At that time the
original project areas were renamed Component Areas.
-3-development along Slauson Avenue, including a Penny's, a Circuit City, and the Hooman Toyota/Scion
automobile dealership all seem to be vacant. There is a concentration of older, obsolete industrial and
service commercial development northwest of Sepulveda Boulevard. Lot consolidations is this latter
area may be necessary to effect a redevelopment program.
Blighting Condition Observed Conditions
Physical Conditions of Blight
1. Buildings in which it is unsafe or unhealthy for
persons to live or work.
Code enforcement has identified issues in the
western corner of the Component Area west of
Sepulveda.
2. Conditions that prevent or substantially hinder
the viable use or capacity of buildings or lots.
Obsolete lot pattern and building design hinders
reinvestment.
3. Adjacent or nearby incompatible land uses
that prevent the development of those parcels
or other portions of the project area.
No significant issues
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.
Obsolete parcelization pattern hinders
development pursuant to general plan and zoning.
Economic Conditions of Blight
5. Depreciated or stagnant property values No significant indicators of depreciated values, but
suspected in areas with closed stores near Slauson
and Sepulveda.
6. Impaired property values, due in significant
part, to hazardous wastes on property where
the agency may be eligible to use its authority
No significant issues observed, but may be some
hazardous waste issues in the area east of
Sepulveda and south of Slauson.
7. Abnormally high business vacancies,
abnormally low lease rates, or an abnormally
high number of abandoned buildings
Business vacancies high north of mall due to
economic downturn and closures of major
retailers.
8. A serious lack of necessary commercial
facilities that are normally found in
neighborhoods, including grocery stores, drug
stores, and banks and other lending
institutions
None observed.
9. Serious residential overcrowding that has
resulted in significant public health or safety
problems
None observed.
10. An excess of bars, liquor stores, or adult-
oriented businesses that has resulted in
significant public health, safety, or welfare
problems
None observed.
-4-Blighting Condition Observed Conditions
11. A high crime rate that constitutes a serious
threat to the public safety and welfare.
None observed or reported by Police Department.
Component Area 2 ("Overland/Jefferson")
The second oldest of the four Component Areas, Component Area 2 will expire on December 28, 2014,
but current eminent domain authority will expire on December 23, 2010. An extension of eminent
domain authority will allow the Agency to commence eminent domain proceedings through December
28, 2014.
Component Area 2 generally lies along Jefferson Boulevard from Sepulveda Boulevard north to Pearson
Street. (See Figure 1.) Land uses in the Component Area are predominantly residential north of
Overland Avenue, and a mix of commercial development and older residential development south of
Overland Avenue. There is obsolete commercial development along Overland Avenue north of Jefferson
Boulevard, and along Jefferson west of Dobson Way. Apartment buildings south of Kinston Avenue are
in need of significant re-investment according to code enforcement staff. A relatively new community
commercial center lies along Jefferson Boulevard.
The following table summarizes significant remaining conditions of blight observed in Component
Area 2.
CRL Blighting Condition Observed Conditions
Physical Conditions of Blight
1. Buildings in which it is unsafe or unhealthy for
persons to live or work.
Code enforcement has identified issues in
apartment buildings south of Kinston Avenue.
2. Conditions that prevent or substantially hinder
the viable use or capacity of buildings or lots,
Obsolete lot pattern and building design hinders
reinvestment along Jefferson Boulevard in the
vicinity of Overland Avenue.
3. Adjacent or nearby incompatible land uses
that prevent the development of those parcels
or other portions of the project area.
No significant issues
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.
Obsolete parcelization pattern hinders
development pursuant to general plan and zoning,
especially along Jefferson Boulevard in the vicinity
of Overland Avenue.
-5-CRL Blighting Condition Observed Conditions
Economic Conditions of Blight
5. Depreciated or stagnant property values Potentially depreciated property values were
observed in along Jefferson Boulevard in the
vicinity of Overland Avenue. This is especially the
case where parcelization patterns hinder new
investment.
6. Impaired property values, due in significant
part, to hazardous wastes on property where
the agency may be eligible to use its authority
No significant issues observed.
7. Abnormally high business vacancies,
abnormally low lease rates, or an abnormally
high number of abandoned buildings
No significant issues observed.
8. A serious lack of necessary commercial
facilities that are normally found in
neighborhoods, including grocery stores, drug
stores, and banks and other lending
institutions
None observed.
9. Serious residential overcrowding that has
resulted in significant public health or safety
problems
None observed.
10. An excess of bars, liquor stores, or adult-
oriented businesses that has resulted in
significant public health, safety, or welfare
problems
None observed.
11. A high crime rate that constitutes a serious
threat to the public safety and welfare.
None observed or reported by Police Department.
Component Area 3 ("Washington/Culver")
Component Area 3 will expire on November 25, 2018, but current eminent domain authority will expire
on December 23, 2010. An extension of eminent domain authority will allow the Agency to commence
eminent domain proceedings through November. 25, 2018.
This Component Area includes most of the commercial and industrial territory east of Overland Avenue,
including land between Culver Boulevard and Venice Boulevard east of Elenda Street. (See Figure 1.)
Land uses in Component Area 3 are complex, and include Culver City's downtown area, the
predominantly industrial/heavy commercial eastern end of the City, and older strip commercial
development mostly along Washington Boulevard.
There has been significant re-investment in this area over the past decade, including the re-emergence
of the downtown area and significant rehabilitation along Washington Boulevard. Continuing significant
-6-conditions of observed blight were concentrated along Washington Boulevard east of Culver Boulevard,
and in the Hayden industrial tract. Issues in the Hayden industrial tract include internal circulation
issues, and older, run-down industrial buildings.
Very low water pressure and substandard hydrant spacing along Washington Boulevard east of Main
Street result in fire safety issues in this area.
The table below summarizes significant remaining conditions of blight observed in Component Area 3.
CRL Blighting Condition Observed Conditions
Physical Conditions of Blight
1. Buildings in which it is unsafe or unhealthy for
persons to live or work.
Code enforcement has identified issues
concentrated east of Hargis Street and in the
vicinity of National Boulevard and Washington
Boulevard. Very low water pressure and
substandard hydrant spacing contribute to fire
safety issues.
2. Conditions that prevent or substantially hinder
the viable use or capacity of buildings or lots,
Obsolete lot pattern and building design hinders
reinvestment along portions of Culver Boulevard,
mostly east of the downtown area, and along
Washington Boulevard west of Overland Avenue.
3. Adjacent or nearby incompatible land uses
that prevent the development of those parcels
or other portions of the project area.
Incompatibility issues may occur in the older
industrial areas near the east end of Washington
Boulevard.
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.
Obsolete parcelization pattern hinders
development pursuant to general plan and zoning
along commercial strips on Washington Boulevard
west of Overland Avenue and along Culver
Boulevard mostly east of the downtown area.
Economic Conditions of Blight
S. Depreciated or stagnant property values Depreciated property values are in evidence east
of the Culver Boulevard/Washington Boulevard
intersection. This is evidenced by abandoned
commercial uses, vacant buildings, and apparent
lack of re-investment. Obsolescence also is an
indicator of depreciated property values, in that
reinvestment is difficult, which reduces market
values for properties,
6. impaired property values, due in significant
part, to hazardous wastes on property where
the agency may be eligible to use its authority
No significant issues observed, but soils
contamination may occur in older industrial areas.
-7-CRI. Blighting Condition Observed Conditions
7. Abnormally high business vacancies,
abnormally low lease rates, or an abnormally
high number of abandoned buildings
Significant business vacancies were noted in the
eastern end of the Component Area.
8. A serious lack of necessary commercial
facilities that are normally found in
neighborhoods, including grocery stores, drug
stores, and banks and other lending
institutions
None observed.
9. Serious residential overcrowding that has
resulted in significant public health or safety
problems
None observed.
10. An excess of bars, liquor stores, or adult-
oriented businesses that has resulted in
significant public health, safety, or welfare
problems
None observed.
11. A high crime rate that constitutes a serious
threat to the public safety and welfare.
None observed or reported by Police Department.
Component Area 4
Adopted in 1998, this Component Area comprises multiple sub-areas linking the other three Component
Areas, along Washington Boulevard west of Component Area 3, and along Sepulveda Boulevard. (See
Figure 1.) An eminent domain extension would authorize the Agency to commence eminent domain
proceedings through December 23, 2022. Component Area 4 is set to expire in 2028.
The predominant land use in Component Area 4 is older strip commercial intermixed with scattered
multiple-family development and some institutional uses. A new Costco-anchored shopping center is
located at the far western extent of Washington Boulevard.
Significant remaining blight is evident throughout the Component Area. The parcelization pattern
throughout the Component Area is obsolete for modern commercial and residential development
standards, which is reflected in a lack of new construction or significant new investment. The Culver
City/Los Angeles city boundary line splits lots along the south side of Washington Boulevard west of
Zanja Street, which results in service issues and may contribute to lower property values. There are also
significant building code issues, which would lead to public health and safety problems in the area.
The Sepulveda Boulevard portion of Component Area 4 has a consistently obsolete strip commercial
development pattern. There appears to be a strong automobile commercial orientation, especially
north of Washington Boulevard. As with other portions of the Component Area, the Sepulveda
Boulevard strip is dominated by small, narrow, older commercial lots under multiple ownership. The
size and shape of these parcels makes them difficult to develop given modern commercial building and
development standards.
-8-CRL Blighting Condition Observed Conditions
Physical Conditions of Blight
1. Buildings in which it is unsafe or unhealthy for
persons to live or work.
Code enforcement has identified issues
concentrated east of along
2. Conditions that prevent or substantially hinder
the viable use or capacity of buildings or lots,
Obsolete lot pattern and building design hinders
reinvestment along portions of Culver Boulevard,
mostly east of the downtown area, and along
Washington Boulevard west of Overland Avenue.
3. Adjacent or nearby incompatible land uses
that prevent the development of those parcels
or other portions of the project area.
Incompatibility issues may occur in the older
industrial areas near the east end of Washington
Boulevard.
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.
Obsolete parcelization pattern hinders
development pursuant to general plan and zoning
along commercial strips on Washington Boulevard
west of Overland Avenue and along Culver
Boulevard mostly east of the downtown area.
Economic Conditions of Blight
5. Depreciated or stagnant property values Depreciated property values are in evidence east
of the Culver Boulevard/Washington Boulevard
intersection. This is indicated by abandoned
commercial uses, vacant buildings, and apparent
lack of re-investment.
6. Impaired property values, due in significant
part, to hazardous wastes on property where
the agency may be eligible to use its authority
No significant issues observed, but soils
contamination may occur in older industrial areas.
7. Abnormally high business vacancies,
abnormally low tease rates, or an abnormally
high number of abandoned buildings
Significant business vacancies were noted in the
eastern end of the Component Area.
8. A serious lack of necessary commercial
facilities that are normally found in
neighborhoods, including grocery stores, drug
stores, and banks and other lending
institutions
None observed.
9. Serious residential overcrowding that has
resulted in significant public health or safety
problems
None observed.
10. An excess of bars, liquor stores, or adult-
oriented businesses that has resulted in
significant public health, safety, or welfare
problems
None observed.
11. A high crime rate that constitutes a serious
threat to the public safety and welfare.
None observed or reported by Police Department.
-9-How Eminent Domain Authority Helps Alleviate Remaining Blight Conditions
The CRL requires that amendments to extend eminent domain authority document that there is
significant remaining blight in the affected redevelopment project area, and that eminent domain
authority is necessary to remediate the blighting conditions. Since eminent domain allows the Agency
to assemble parcels for future development aimed at alleviating blighting conditions, the blighting
conditions that eminent domain could remediate include those that may require property acquisition by
the Agency.
These conditions could include:
• Assembly of small parcels to form a larger parcels meeting modern development standards
• Assembly of parcels to help remediate health and safety issues
•
Assembly of parcels or easements for the purpose of building modernization or rehabilitation
• Parcel acquisitions for public purposes or to remediate health and safety problems, as
appropriate
Note that a redevelopment plan's having eminent domain authority does not mean that such authority
will ever be used.
Potential Plan Amendment Schedule
As mentioned earlier in this memorandum, redevelopment plan amendments to extend eminent
domain take between six and nine months, but can require up to one year if there are significant public
issues.
The following is a general schedule for completing an eminent domain amendment.
Week Activity
1 Agency Board Authorizes Contract
4 Contract Signed, Work Begins
4-12 Research and Mapping
19 Draft Documents Delivered to Agency Staff
27 Environmental Documents Circulated
33 Public Notices of Hearing Mailed and Published
Final Documents Available for Public Review
35 Community Meeting
37 Joint Public Hearing, Ordinance Amending Plan Introduced
39 City Council Approves Ordinance Amending Plan
-10-
‘bLEGEND
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MI Area No. 1
MI Area No. 2
0 Area No. 3
Area No. 4 `AU
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Culver City Redevelopment Agency
PLAN AMENDMENT
FEASIBILITY ASSESSMENT
REDEVELOPMENT PROJECT AREAS MAP
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FIGURE 1ATTACHMENT 2
Sample Sites for Redevelopment
Sample Site "A"
21,330 s.f. assembled site in Commercial General Zone
Proposed new commercial space: New 2 story New 4 story
Estimated New Assessed Value: $ 5,119,200 $ 10,238,400
Less Existing Assessed Value: $1,318,098 $1,318,098
Net Increase in Assessed Value 3,801,102 $ 8,920,302
Sample Site "B"
30,786 s.f. assembled site in Commercial General Zone
Proposed new commercial space: New 2 story New 4 story
Estimated New Assessed Value: $ 7,388,640 $ 14,777,280
Less Existing Assessed Value: $2,675,714 $2,675,714
Net Increase in Assessed Value 4,712,926 $ 12,101,566
Sample Site "C"
24,987 s.f. assembled site in Commercial General Zone
Proposed new commercial space: New 2 story New 4 story
Estimated New Assessed Value: $ 5,996,880 $ 11,993,760
Less Existing Assessed Value: $1,421,934 $1,421,934
Net Increase in Assessed Value 4,574,946 $ 10,571,826
Sample Site "D"
48,577 s.f. assembled site in Commercial General Zone
Proposed new commercial space: New 2 story New 4 story
Estimated New Assessed Value: $ 11,658,480 $ 23,316,960
Less Existing Assessed Value: $3,253,556 $3,253,556
Net Increase in Assessed Value 8,404,924 $ 20,063,404
Sample Site "E"
25,000 s.f. assembled site in Commercial General Zone
Proposed new commercial space: New 2 story New 4 story
Estimated New Assessed Value: $ 6,000,000 $ 12,000,000
Less Existing Assessed Value: $2,689,656 $2,689,656
Net Increase in Assessed Value $ 3,310,344 $ 9,310,344
Total Net Increase in Assessed Value 24,804,242 $ 60,967,442
Assumptions: New Bldg footprint = 60% of lot size
New assessed value = $200/s.f. of building s.f.
12_Average Increase through Redevelopment Two-Story Four-Story
Total Increased Assessed Value $24,804,242 $60,967,442
Increased Assessed Value per Acre' $7,189,635 $17,671,722
Increased Assessed Value per Site $4,960,848 $12,193,488
Increased Tax Increment $248,042 $609,674
Increased Tax Increment per Acre 2 $71,896 $176,717
Increased Assessed Value in Percentage 334% 667%
Total Increased Assessed Value/Total Square Feet x 43,560
'Total Increase Tax Increment/Total Square Feet x 43,560