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RA Resolutions 04-01 Thru 08-01_2004 - 2008 REDEVELOPMENT AGENCY RESOLUTIONS 04-01 THRU 08-01 2004-2008 RESOLUTION NO.08-01 to A RESOLUTION OF THE CUPERTINO REDEVELOPMENT AGENCY kDOPTING AN OPERATING BUDGET FOR FISCAL YEAR 2008-09 BY RATIFYING ESTIMATES OF REVENUES TO BE RECEIVED IN EACH FUND AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS AND SETTING FORTIS CONDITIONS OF ADMINISTERING SAID BUDGET WHEREAS,the orderly administration of municipal government is dependent on the establishment of a sound fiscal policy of maintaining a proper ration of expenditures within anticipated revenues and available monies; and WHEREAS,the extent of any project or program and the degree of its accomplishment, as well as the efficiency of performing assigned duties and responsibilities,is likewise dependent on the monies made available for that purpose;and WHEREAS,the City Manager has submitted his estimates of anticipated revenues and fund balances, and has recommended the allocation of monies for specified program activities; NOW,THEREFORE, BE IT RESOLVED that the Cupertino Redevelopment Agency does hereby adopt the following sections as a part of its fiscal policy: Section 1: The estimates of available fund balances and anticipated resources to be received in the Redevelopment Agency fiord during fiscal year 2005-09 as submitted by the City Manager i,.nis proposed budget and as have been amended during the budget study sessions are hereby ratified. Section 2. Thcre is appropriated from the fund the sum of money as determined during the budget sessions for the purposes as expressed and estimated for each department. Section 3. The City Manager is hereby authorized to administer and transfer appropriations between Redevelopment Agency accounts within the Operating Budget when in his opinion such transfers become necessary for administrative purposes. Section 4. The Director of Administrative Services shall prepare and submit to the Cupertino Redevelopment Agency a quarterly revised estimate of Operating Revenues. Section 5. The Director of Administrative Services is hereby authorized to continue appropriations for operating expenditures that are encumbered or scheduled to be encumbered at year end. Resolution No. 08-01 Page 2 PASSED AND ADOPTED at a regular meeting of the Cupertino Redevelopment Agency this 17th day of June 2008,by the following vote: Vote Members of the Redevelopment Agency AYES: Sandoval, Mahoney, Santoro,Wang,Wong NOES: None ABSENT: None ABSTAIN: Non-, APPROVED: -- .i Chair,Redevelopment Agency ATTEST: Secretary h; RESOLUTION NO. 07-02 ® A RESOLUTION OF THE CUPERTINO REDEVELOPMENT AGENCY ADOPTF'', ` 1N OPERATING BUDGET FOR FISCAL YEAR 2007-08 'j - i PING ESTIMATES OF REVENUES TO BE RECEIVED IN EA(-' Nil AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED A, ` °$•'ITIE,' AND ACCOUNTS AND SETTING FORTH CONDII IONS O.' kDMINISTERING SAID BUDGET WHEREAS, the orderly actmi..;= .EAtion of municipal government is dependent on the establishment of a sound fiscal poly-y of r:►aintaining a pro^er ration of expenditures within anticipated revenues and available mores; and WHEREAS,the extent of any project or program and the degree of its accomplishment, as well as the efficiency of performing assigned duties and responsibilities,is likewise dependent on the monies made available for that purpose; and WHEREAS,the City Manager has submitted his estimates of anticipated revenues and fund balances,and has recommended the allocation of monies for specified program activities; NOW,THEREFORE,BE IT RESOLVED that the Cupertino Redevelopment Agency does hereby adopt the following sections as a part of its fiscal policy: Section 1: The estimates of avalable fund balances and anticipated resources to be received in the Redevelopment Agency fund during fiscal year 2007-08 as submitted by the City Manager in his proposed budget and as have:been amended during the budget study sessions are herby ratified. Section 2. There is appropriated from the fund the sum of money as determined during the budget sessions for the purposes as expressed and estimated for each department. Section 33. The City Manager is hereby authorized to administer and transfer appropriations between Redevelopment Agency accounts within the Operating Budget when in his opinion such transfers become necessary for administrative purposes. Section 4. The Director of Administrative Services shall prepare and submit tG the Cupertino Redevelopment Agency a quarterly revised estimate of Operating Revenues. Section 5. The Director of Administrative Services is hereby authorized to continue al,,propriations for operating expenditures that are encumbered or scheduled to be encumbered at year end. Resolution No. 07-02 Page 2 PASSED AND ADOPTED at a regular meeting of the Cupertino Redevelopment Agency -nis 19th day of June 2007,by the following vote: Vote Members of the Redeveloprr:'.ent Aeency AYES: Sandoval,Mahoney, Wang NOES: None ABSENT: None ABSTAIN: Santoro,Wong APPROVED: Cha'inr.an,Redevelopment Agency ATTEST: Secretary RESOLUTION NO. 07-01 A RESOLUTION OF THE CUPERTINO REDEVELOPMENT AGENCY STATING THE INTENTION OF THE BOARD TO ALLOCATE 50%OF DISCRETIONARY FUNDS TO BE EARMARKED FOR INFRASTRUCTUr E AND TENANT IMPROVEMENTS IN THE CUPERTINO SQUARE PROJECT AREA WHEREAS, the Cupertino Square Project Area is currently in development with major planned improvements; and WHEREAS, such planned improvements will produce future tax increments which can be utilized for investment back into the project area; and WHEREAS, the owners of Cupertino Square ha; v requested tax increment monies to assist in the financing of these infrastructure and tenant improvements; and WHEREAS, a infrastructure improvements were planned as a part of the original Cupertino Square redevelopment; NOW,THEREFORE, BE IT RESOLVED that the Cupertino Redevelopment Agency does hereby state its intent to allocate 50%of discretionary funds from the Redevelopment Agency future tax increment to be earmarked for infrastructure and tenant improvements,based on the estimates in Schedules A and B(attached). PASSED AND ADOPTED at a regular meeting of the Cupertino Redevelopment Agency this 5th day of dune 2007,by the following vote: Vote Members of the Redevelopment Agency AYES: Kwok, Lowenthal, Sandoval, Wang, Mahoney NOES: None ABSENT: None ABSTAIN: None APPROVED: Ahairman, Redev pment Agency ATTEST: Secretary Schedule A Real Property Value Added Cupertino Square.Redevelo nt Project Ci of Cupertino 000•s Omitted Value 1 2 3 4 _ 6 Devel2MEnt Description Added 2005-06 2006-07 2007-08 2008-09 2009-2010 010-2011 ki AMC 16 Theatre 70,000 70,000 - 2 Parlun Structures At M s and)CP 30,000 30,000 3 Hotel 30,000 30,000 4 North West Housing(150 Units 75,000 i Gav 75,000 5 Rose Bowl Retae a 120,000 120,000 6 2 restarrants 8,000 8,000 7 Retail in front of Penneys 5,000 _ 5,000 8 12 food court units S250K each 3,000 3,000 9 Zale`s improvements,etc 4,000 4,000 10 ITs-30 tennants(4,000 su ft*30*5175/11 ' 2i,000 _ 21 t'00 H food court im rowments 1,000 1rppp 12 ITs-30 tennants(4,000 su ft*30*5175/11 'I—IMO-0 21,000 Total Real Property Value _ 388,000 0 1()0,000 13,000 134 000 141,000 0 Total Real Pro Value(Inflated) 3.00°io _ Cumulative Value with Prop 13 Increases _ 102.00% Per 40 m bon 6om NUm Rohde,GenwW Mgr.C permro S9uare-SOW RDA du k-emar Vroochi 5-07.ds Schedule B Tax 1icremeM Revenue Projertoa Cupertino Square Redevelopment Project Ctly of CuperdR0 0•s Omi _ Gross L Base Total Total Total lncmnW1 Increment HotmV Tax Tar I Tier 2 Tic 3 Statutury Net City SCC Net FiscalInflationary New Real Petscral Project Over Base tevenue(I Set Aside Revenue Pass Thru Pass TvzuPamTuu Pass Tax blWtio*Avmlab! Year Growth Pmmjects Prorerty Property) Value 3116,13E ###9W -25.0V/.A4erHS.a-18,75°/. -15.75°i -10.S0'/• Thnnyh Revenue 1 2000,01 0 (,284) 0 0 2 200:-02 0 (31 0 0 ? 2W2-03 0 (I00; 0 0 4 2003-04 0 (99) 0 0 5 2004-05 0 (59) 0 0 6 2003.06 1OZ500 102,5W 4,215 106,715 0 0 0 0 0 0 0 0 0 (105) (159, 0 7 200E-07 1OZ500 2,050 104,550 4,215 )08.765 0 0 a 0 0 0 0 0 0 8 2007-08 104,550 2,091 100,0p0 206,641 4,215 210.9% 94,721 986 (246) 749 (185) 0 0 (115) (175) 0 65 9 2008-09 106.641 2,133 115,0D0 223,774 4 215 2T7,989 111,853 1,164 1 (218) 655 (138) (184) 233 (�) 873 (218) 0 0 (218) 655 (438) (184) ?? 10 20MIO 108.774 2,175 251,300 362,249 4,215 366,464 250,329 2.605 (651) 1.954 (488) 0 0 (488) 1.465 (46D) (193) 812 11 2010-11 110.949 2,219 397,326 510,494 4,215 514.709 398,574 4,147 (1,037) 3,110 (778) 0 0 (rig) 2,333 (483) (202) 1.648 12 2011-12 113,169 2,263 405,271 520,704 4,215 524.919 408,784 4,253 (1,08) 3,190 (793) 0 0 (748) 2,393 On (212) I,673 13 2012-13 115.432 2,309 413,378 531,119 4.215 535,333 419,198 4,362 (1,090) 3.271 (818" 0 0 (8181 2,453 (532) (223) 1,698 14 2013-14 117,740 Z355 421,E+16 541,741 4215 545,956 429.820 4,472 (1,118) 3.354 (11") 0 0 (939) Z516 (S39) (234) 1.722 15 2014-15 120,095 Z402 430,078 552,575 4,215 556,790 440,655 4,585 (1.146) 3,4?9 (860) 0 0 (C60) 2,579 (587) (246) 1,746 16 2015-16 122,497 Z450 438,680 563,627 4,215 567.842 451,707 4.700 (1,175) 3,525 (881) 0 0 (831) 2,60 (616) 258) 1,769 17 2016-17 124,947 2,499 447,454 574,899 4,215 579.114 462,979 4.817 (1,204) 3,613 (905) 0 0 (903) 2,710 (647) (271) 1.791 18 2017-18 127,446 2,549 456.40.3 586,397 4,215 59Q612 474,477 4.937 (1,234) 3,70 (926)® 0 (1,7(3) 1,999 (679) (285) 1.0-45 19 2018-)9 129,995 Z600 465,5?1 509,125 4,215 602,340 486.205 5.059 (1.265) 3,794 (949) ('197) f (1,745) Z049 (713) (299) 1,03E 20 2019-20 13ZS95 7-652 474,841 610,089 4,215 614303 498,168 5,183 (1,296) 3,868 (972) (316) () (1,798) Z099 (749) (314) 1.036 21 2020-21 135,247 2,703 494,338 62Z290 4,215 626,505 510,369 5,310 (1,328) 3,98? (996) (m') 0 (1,832) 2,151 (787) (330) 1.0?4 22 2021-22 137,952 2,759 494,0J3 634,735 4,215 638,950 522.815 5.440 (1,360) 4,080 (1,020) (857) 0 (1.877) 2,203 (826) (346) 1 031 23 2022-23 140,711 2.814 503,9D5 647,43A 4.215 651.645 535.310 5,572 (4393) 4,179 (1,045) (87d) 0 (),922) Z257 (867) (363) 1,026 24 2023-24 143,525 2,870 513,994 660,379 4,215 664.594 543,458 5,707 (1,427) 4,280 (1,070) (899) 0 (3,969) 2,311 (911) (382) 1,019 23 2024-23 146,395 2.9'_8 524,263 673.586 4.213 677,80I 561,666 5,844 (1,461) 4,383 (1,096) (92D) 0 (2,016) Z367 (956) (401) 1.010 26 2025-26 149,32-4 2,986 534,748 687,058 4,215 691.773 375.1.48 5,984 (1,496) 4,488 (1,122.) (943) 0 (2,065) 2,424 (1,004) (421) 999 27 2026-27 152,310 3,0, 545,443 700,799 4,215 703,014 S88,C79 6.127 (1,332) 4,595 (1,149) (965) 0 (7,114) Z482 (1,054) (442) 996 28 2027-29 155,356 3,10, 556,352 T4,815 4,215 719,030 602-895 6.27.1 (1,568) 4,703 (1,176) (988) 0 (2,1(A) Z541 (1,107) (464) 970 29 202F-9 158,461 3.169 567,479 729,112 4,215 733,327 617,191 6.422 (1,605) 4,8I6 (1,204) (1,0I1) 0 (2,216). 2,601 (1,162) (487) 952 30 2029-30 161 6 2 3 2i3 578 829 743 694 4 215 747 63177.3 6 774 1 6" 49140 (1,231) (1,035) 0 268 2,662 (1,220) 61 l 931 ?I 2030?1 164,865 3,297 590,40E 758,568 4,215 762,783 646647 6,718 (1,682) 5,04E (1,262) (1,060) 0 (y321) 2,725 32 2011-32 168,162 3,36? 602.214 773,739 4,213 777.954 661,819 6,886 (1,722) 5,165 (1,291) (1,085) 0 (2,376) 2,789 33 2032-1? 171,525 3,411 614258 789,214 4,215 791,429 677,29-4 7.047 (1,762) 5,285 (1,321) (1,110) 0 (2,431) 2,854 34 2033-14 174.956 3,499 626,543 804,998 4,215 809.21-4 693,078 7.211 (1,80) 5,409 (1,35Z) (1,136) 0 (2,488) Z921 35 203435 17C,455 3.569 639.074 82),098 4.215 825313 709,178 7.379 (I.A5) 5,5?4 (094) (1,162) 0 (2,546) 2,998 36 2035-36 )82,024 3,640 651,953 837,520 4,215 841.735 725,600 7,350 (1,887) 5,662 (1,416) (1,189) 0 (2,605) 3,0% 37 2036.37 185,665 3,71? 664,89? 854,270 4.215 858.485 742.350 7.724 (1,931) 5,793 (1.448) {1,217) 0 (2.635) 3,128 38 2037-38 189.378 3,788 67'1 W 871,356 4,215 875.571 759,435 7.902 (1�) 5.926 ('1,482) (),245j 830 (3,556) Z371 39 2038-39 393.165 3,861 691:754 888,783 4,215 89'_998 776.96.4 8.083 (2,021) 6,062 (1,516) (1,273) 349) (3,07) ZP--5 40 2039-40 197,029 3,941 705,589 906,539 4,215 9'10.774 79 WII 8,268 (2067) 6,201 (1,550) (1,302) (V-3) (3.721) 2.480 4) 2040.41 200,969 4.019 719,701 924,690 4,215 928,905 8IZ769 8.457 (2,114) 6,344 (1,586) (1,332) (888) (3,806) Z537 42 2041 42 204,989 4,IG0 734,095 943,184 4,215 947,399 831,261 8.649 (2.I62) 6,487 (1.6ZI) (1.362) (908) (3,892) 2595 43 204243 209,088 4,182 748.777 96ZO47 4,215 966,262 8S0.127 8.846 (2,211) 6,614 (1,659) (1,393) (929) (3,981) 2,654 44 2043 44 213,270 4.265 763,753 981,289 4.215 98S.503 869,368 . 9.046 (2,261) 6,754 (1.696) (1.425) (950) (4.071) 2,714 45 2044-05 21753E 4351 779028 NOW 4,215 1#WAWW. 88 9 1 W? (1,734) (1,457) 1971) (4162) 2775 TOTAL([BARS630) 110.524 (27.631) 82,1193 (20,72i) 01.723) 0 (32,446) 50.446 (17.195) (7,S68) 26,224 TOTAL([EAR36-45) 229.551 (57,388) 172,163 (43,041) (30.470) (7,193) (80.7a?) 91,460 (I7.195) (7,568) 26,224 kgna Growth'/.- 2% 1t City coat ire_ 5.01io (11 frunms lxe-!989 Property tax override:County (2)Imba las staff eosu,audit,coruultvaA and (3)Includes pan of the SCC eonrieraral obligation- Retirement Levy(03881/6)and County Library an economic)RDA division stweiff oo a only;ro annexation costs included Prepared by Kayser Marston Associates,Inc. filename.RDA-tax increment projections 5-07.ds.TI_Summary w formuias;m91200T 3:41 Ptak R.W RESOLUTION NO.06-02 A RESOLUTION OF THE CITY OF CUPERTINO REDEVELOPMENT AGENCY APPROVING THE 2006-2010 IMPLEMENTATION PLAN WHEREAS, the Cupertino City Council approved and adopted the Vallco Redevelopment Plan on August 21, 2000 for the Vallco Redevelopment Project Area(the "Project Area"); and WHEREAS, in compliance with Health and Safety Code Section 33490, Redevelopment Agencies must conduct a public hearing on and adopt an implementation plan every five years identifying goals and objectives of the Agency. WHEREAS,staff has presented to the Agency Board a proposed Implementation Plan, a copy of which is on file with the Agency Secretary; and WHEREAS, on the date of this resolution,the Agency has conducted and concluded a duly noticed public hearing on the Implementation Plan in accordance with Health and Safety Code Section 33490; and WHEREAS,the Agency finds that the Impiementation Plan, with any modifications as considered and approved in connection with the public hearing,constitutes a statement of the Agency's goals and objectivef: for the Project Area, a summary of the specific programs and proposed expenditures proposed to be made by the Agency during the next five years,and an explan-don of how the goals and objectives,projects, and expenditures will eliminate blight within the Project Area and imp?ement the affordable housing regulations of the Community Redevelopment Law; and WHEREAS,pursuant to Health and safety Code Section 33490, approval of the Implementation Plan does not constitute a project for purposes of the California Environmental Quality Act(CEQA), and therefore no environmental documentation is mquired pursuant to CEQA. NOW,THEREFORE, BE IT RESOLVED,that the City of Cupertino Redevelopment Agency Board hereby approves and adopts the Implementation Plan for the Cupertino Vallco Redevelopment Project 2006-2010. BE IT FURTHER RESOLVER, that this resolution shall take immediate effect from and after its passage. e ® Resolution No. 06-02 PASSED AND ADOPTED at a regular meeting of the Cupertino Redevelopment Agency this 6th day of December 2006,by the following vote: Vote Members of the Redevelopment Agency AYES: Wang, Kwok, Lowenthal, Mahoney,Sandoval NOES: None ABSENT: None ABSTAIN: None APPROVED: Ch ' an,Redevelop t Agency ATTEST: Secretary 2 CUPERTINO VALLC® REDEVELOPMENT PROJECT FIVE YEAR IMPLEMENTATION PLAN 2006 -2010 Vallco Fashion Park at Wolfe Road,prior to new construction and upon oompletion of the AMC Theater i Adopted December 6 ! 2006 Prepared by City of Cupertino Redevelopment Agency TABLE OF CONTENTS Paae A. introduction 1 1. Interpretation 1 2. Project Area Description 2 3. Project Area Accomplishments 2 4. Five-year Goals and Objectives 4 B. SpeciFc Programs, Potential Projects and Estimated Expenditures 6 for the Next Five Years 1. Expenditures 7 2. How the Projects, Programs and Expenditures will Eliminate Blight 8 C. Housing Activities I. Overview of Legal Requirements 9 2. Statutory Requirements for Housing 10 3.Targeting Housing Funds According to Need 11 4. Duration of Affordability 12 5. Replacement Housing Requirement 13 6. Ten Year Housing Production Plan 13 7. Affordable Housing Production Requirement 14 8. Housing Preduction Through Affordability Covenants 14 9. Housing Fund Reserves 14 10. Housing Programs 14 11. On-Going Monitoring of Residential Development and Housing 15 Fund Expenditures Tables and Figures Table 1 Summary of Vallco Cupertino Redevelopment Plan Timeline 2 and Fiscal Limits Table 2 Project Area Goais and Objectives and Related Programs 5 Table 3 Projected Tax Increment 6 Table 4 Estimated Agency Expenditures 2006 through 2010 8 Table 5 Blight Conditions 8 Table 6 ABAG Regional Fair Share Allocations 1999-2006 11 Table 7 Housing Fund Exp;- dilture Requirements Non-Age 12 Restricted Housing Table 8 CRL Affordable Housing Cost Definitions 12 Table 9 Projected blousing Development, Cupertino Vallco 14 Redevelopment Project Area Figure 1 Project Area 3 A. INTRODUCTION Vallco Fashion Park Shopping Center opened in September 1976 and was considered one of the South Bays premier shopping centers and one of the largest.. By May of 2000, the number of shops had declined from 170 to 118. What had produced almost 25% of the City's total sales tax now produces only about 11%. The extent of tenant vacancies, the physical deterioration of the property, the outdated site plan and the significant decline in tax revenue resulted in physical and economic blight that was adversely affecting the image of Cupertino and its economic future. On August 21, 2000 tha City of Cupertino Redevelopment Agency Board adopted the Cupertino Vallco Redevelopment Plan with its primary goal of facilitating the redevelopment, revitairzation and rehabilitation of the Valloo Fashion Park Shopping Center back into a vibrant regional destination retail center through private development and public assistance with infrastructure and parking facilities. Section 33490 of California Community Redevelopment Law ("CRLI requires that redevelopment agencies prepare an implementation plan every five years detailing the goals and objectives of the Agency detailing how it intends to implement its Redevelopment Plan during the five-year period. The implementation plan must contain the following information: • Speck goals and objectives for the five-year period including potential capital projects and estimated expendi sires planned during the period. • An explanation of how the goats, objectives, programs, and expenditures will eliminate blight. • A plan describing how to implement the use of Low and Moderate Income Housing Funds (the "Housing Fund') required to be set-aside under redevelopment law for use to create, rehabilitate, or preserve low and moderate income housing and meet 0 the Agency's affordable housing production requirements. In short, the Plan sets the direction the agency will take over a five-year period. It shall serve as a useful document and blueprint for the public in terms of understanding the programs the Agency intends to pursue. This document constitutes the five-year plan for the period of 2006 through 2010. 9. Interpretation The Cupertino Vallco Redevelopment Agency Implementation Plan (the "Implementation Plan") is intended to provide general guidance for the implementation of the Agency's programs and activities. The Agency expects that particular constraints and opportunities, not fully predictable at this time, will arise in the course of undertaking the programs and activities described in this Implementation Plan over the next five years. Therefore, this Plan is intended to serve as a flexible guide for the Agency and the community with the understanding that the implementation of the programs and strategies outlined in this document may vary over the next five years in their precise timing, scope, cost and expenditure depending on the circumstances and available resources for implementing this Plan. 2. Project Area Description The Project Area encompasses Vallco Fashion Park Shopping Center("Vallco")and the adjacent Rose Bowl site, which is situated at Vallco Parkway and Wolfe Road (Figure 1). The Project Area is contained within a three block area bound by 1-280 to the north, Stevens Creek Boulevard to the south and is intersected by Wolfe Road (the "Project Area"). Vallco is the largest shopping mail in the City with 1.13 million square feet of retail space. Anchor stores include JC Penney, Sears and Macy's. Table 1 Summary of Vallco Cupertino Redevelopment Plan Time and Fiscal Limits Total Acres 64- Date of Adoption Au ust 21 2000 Time Limits Incurring Debt August21,2020 Plan Effectiveness(Project August 21,2030 ActM ies TI Collection/Repayment of August 21,2045 Debt Eminent Domain AuSqst 21 2012 Financial Limits Tax Increment Cap None Bond Limit $42 610 000 3. Project Area Accomplishments Under the 2000 Implementation Plan, the Agency contemplated issuing Tax Allocation Bonds to help finance infrastructure improvements including parking facilities. Due in part to the technology "dot com" bust, Silicon Valley experienced an economic recession, and commercial property values plummeted. Office vacancy rates were as high as 20% and vacancy at the Vallco Shopping Center was at 31%. As a result, during that period there was little to no tax increment revenue generated within the Project Area to support debt service for bonded indebtedness or any kind of meaningful redevelopment projects or programs. During that period the City worked with the owners of the Vallco Center to amend the 1991 Development Agreement between the City and the Vallco Shopping Center owners that resulted in the following: a. Issued entitlements and building permit for the construction of a 16- screen cinema and new parking facilities scheduled to open by the end of 2006. 2 Stevens Creek Blvd. e I Wheaton Ih ilk + Valh:o Pkwy � � a w i Amhuist Dr. slop ca pr b ' I Aubum p 0 a -.v3mv io3 r®li d 3snow b. Executed an amendment to the 1991 Development Agreement between the City of Cupertino and Vaiico International Shopping Center, LLC on October 4, 2004 to allow 138,760 square feet of new retail space, 204 residential units and a new parking structure (see rendering below of Wolfe RoadNallco Parkway intersection). • y c. Executed an amendment to the 1991 Development Agreement between the City of Cupertino and Vallco International Shopping Center, LLC on October 18, 2005 to provide for a minimum 100-room hotel on the northeast portion of the Project Area. d. Authorized the creation of a new position in the Community Development Department to be hired in 2006 to manage redevelopment and economic development activities. 4. Five Year Goals and Objectives The programs and projects proposed in this implementation Plan are intended to facilitate the achievement of the Agency's goals and objectives as stated in the Redevelopment plan. The Agency's projects and programs fall under three main categories: infrastructure improvements, economic development programs and the facilitation of affordable housing in the community. The relationship between the goals and objectives and the proposed projects and programs within the Project Area are provided in Table 2. 4 Table 2 PROJECT AREA GOALS AND OBJECTIVES AND RELATED PROGRAMS CUPERTINO VALLCO REDEVELOPMENT PROJECT REDEVELOPMENT PROJECT REDEVELOPMENT GOALS&OBJECTIVE PROJECTS AND PROGFLWS (2006-2010) (As identified in the Redevelopment Plan) INFRASTRUCTURE ECONOMIC LOW AND MODERATE IMPROVEMENTS DEVELOPMENT INCOME HOUSING PROGRAMS' (Packing structure,street (Man expansion, improvemems,other inGastctuture rehaM'litatiort and tenant & tic' vements attraction . Establish a planning and implementation f amewnrk to ensure proper X X redevelopment Eliminate and prevent the spread of blight and deterioration in accordance X with the City's General Plan,specific tan and local codes Plan, redesign,and redevelop underdeveloped or pntrriy developed X X areas that are underudiized or improperly utilized Strengthen the economic base by the redevelopment and rehabilitation of X X structures and the installation of noodcd site im vemmts Promote new private sector investment to facilitate the rcvitalizetiun of an X irnpurtant commercial center Eliminate certain environmental deficiencies such as nnauffteietl padting, X public impruvemenls,facilitates and utilities adversely wing the Project Area ,- Create and develop local job opportunities and preserve the existing X employment base — Provide improved housing for individuals/families of low-and X moderate•income within Ci limits Provide assistance to building owners in financing necessary renovations to meet X current codes and standards 1 May include a Business Attraction and Retention Program,a Sttnefront Rehabilitation Program and a Facade Entrancement Propam. 5 B. SPECIFIC PROGRAMS, POTENTIAL PROJECTS AND ESTIMATED EXPENDITURES FOR THE NEXT FIVE YEARS The Implementation Plan must provide specific programs, including potential projects and estimated expenditures for the next five years. Table 3 illustrates estimated revenues available during this Plan period. Based on projected revenues from new development within the Project Area, the Agency anticipates revenues being strong enough to issue approximately$10,000,000 in Tax Allocation Bonds(TAt3s)in 2008/09. At that time, the City and the Agency will evaluate the impacts of annual debt service payments on both the Agency and the City before committing to any long term debt obligations. For purposes of this Plan, it is assumed bond proceeds will be available for programs and projects. Listed in Table 4 are the programs planned by the Agency for the next five years, as well as the estimated expenditures and timing of the actions.The programs correspond specifically to the goals and objectives listed in Table 2. "These projects are dependent on the assumptions in this Plan and market demand. Therefore, these programs and expenditures should be viewed ar, a guide to the direction of the Agency that may require some mid-curse corrections. As required under redevelopment law, the Agency will review, and possibly amend the Plan within two to three years based on any changed conditions or economic circumstances. Table 3 Projected Tax Increment 2008-2010 FY 2005M FY 20D6/O7 .FY 2007108 FY 2008109 FY2009110 Funds from Non-Housing Cash Balance 0 19.651 47 426 89,991 130,415 Tax Incremeni from Er6stin Assessed Value 185,677 212,002 216.242 627.385 1.968.085 Tax Increment from New Development 0 0 410,000 1,327 5 00 350.000 Less:County Admin Fee 849 969 3,244 9,411 29.521 Net Ta•,increment to Agency 184,828 230,684 575.572 2 035 516 2,418 979 Less:Pass Through Payments 46,207 53,001 156,560 488,733 579.521 Less:ERAF 6,286 Less:25%Housing Set Aside 46,419 53,001 156,560 488.733 579,521 Non-Housing Increment to Agency 85 916 124,683 262.452 1,058,050 1,259,937 City Debt Repaid _ _ 250,000 Less:Debt Service(Non-Housing Fund) 750 CIM 750 000 Less: en Admin(Non-HousingFund 6ti,265 167,438 172,461 177 635 1 964 Tax Increment Balance 19 659 42 7 69 991 130 15 76 9T3 Assumptions 1. 2%inflation factor for tar iniremant revenues 2. Accounts for new Redevelopment/Economic Devmopment Potion binning in 0"7 3. New development in o7m is from naw taneplex and parking structures 4. New development in osio9 is from 204 resldendal units and 138.760 sgft of reta8 5. New development in 09110 from 137 from four-story hotel 6 1. Expenditures Expenditures for the five-year period are estimated at$14,940,105 as set forth in Table 4. Of the total, approximately$9,000,000 is expected to be used for public Infrastructure including parking facilities, road improvements, and utility improvements.Approximately $1,500,000 will be expended in debt service payments on the TABs. The Agency will set aside approximately $1,336,671 in its Housing Fund for facilitating affordable housing in the community and approximately $1,000,000 will be spent on economic development programs. The Agency is obligated to pass through to the tax entities who share in'the property tax in the Project Area, such as school districts and public utilities, 25% of the Agency's net tax Increment totaling approximately$1,336,671. And approximately $753,864 will be spent on Agency administrative costs primarily supporting a full-time staff person who will manage the Redevelopment Agency activities as well as economic development duties. a. Infrastructure Improvements In order to accommodate the additional retail traffic as a result of the proposed expansion and revitalization of the ' Valico Mali, certain infrastructure improvements will be necessary. The Agency proposes the construction -of parking facilities and roadway improvements within the next five years within the Project Area. The construction of parking facilities would serve both new as well as existing commercial uses within the Project Area. Roadway projects will Iclude, but are not limited to, reconstruction of streets, expansion of utility infrastructure capacity, and streetscape improvements. b. Economic Development Program As part of on-going efforts to attract and retain businesses and jobs, and revitalize the commercial businesses within the Project Area, the Agency intends to implement an economic development program including a commercial facade enhancement program, a business attraction and recruitment program and a storefront rehabilitation program. c. low and Moderate Income Housing Programs The Agency will implement several programs designed to ensure the utilization of the required 25%tax increment set-aside for the construction, rehabilitation and preservation of low-and moderate-income housing both within the Project Area and in Cupertino neighborhoods outside the Project Area. Specific programs may include the development of an affordable housing strategy, establishment of a first time homebuyees program, and establishment of a home rehabilitation loan program. T 7 Table 4 Estimated Agency Expenditures 2006 through 2010 Projects/Programs 2006 2007 2008 2009 2010 5 year Total 2008 Identified Public Projects $0 $0 $0 $4.500.000 $4,500,000 $9,000,000 Discretionary $0 $0 , $0 $500A00 $500,000 $1,000,000 Projects/Programs I Affordable Housing $46,419 $53,001 $156,560 $488,733 $627,833 $1,336,671 Programs Public Agency $46,419 $53,001 $156.560 $488,733 $627,833 $1,336,671 Pass thru Payments TA Bond Debt Service $0 $0 so $750,000 $750.000 $1,500,000 Administration $66,265 $167,43a $172,461 $177,635 $182.964 $766,763 Total Expenditures $91,886 $261,463 $451,427 $6,803,459 $7,049,779 $14,940,105 2. flow the Projects, Programs and Expenditures will eliminate blight The goals, objectives, and programs established as part of the Redevelopment Plan are designed to alleviate blighting conditions in the Project Area. The elimination of blighting conditions will occur through the elimination of deficiencies in the infrastructure, the development of parking facilities,the facilitation of new development, and the rehabilitation of existing properties in the Project Area. The linkages between the programs and the blighting characteristics found are illustrated below in Table 5. Table 5 Blight Conditions !r- REDEVELOPMENT BLIGHTING PROJECTS AND PROGRAMS I CONDITIONS 2006-2010 INFRASTRUCTURE ECONOMIC IMPROVEMENTS DEVELOPMENT PROGRAMS Fa(lors that effect the economic viability of buildings or lots(including X X substandard design,inadequate size and lack ofparking) Parcels of irregular form,shape and X size under Multiple ownership Depreciated or stagnant property X X values Low lease rates and high business X X turnover/vacancies C. HOUSING ACTIVITIES This section describes the Housing Component of the Implementation Plan for the Valloo Cupertino Project Area and summarizes the Agency's housing obligations pursuant to the legal requirements under California Redevelopment Law (CRL). These sections also provide an overall framework for the Agency's housing goals, policies, and programs. Under the Redevelopment Plan and the initial 2000 Five Year Implementation Plan period, no housing was contemplated in the Project Area. That situation has changed as approximately 204 housing units have been approved under amendments to the 1991 development agreement with the owners of the Vallco Shopping Center. Therefore, the Redevelopment Agency will have housing production requirements under CRL. In addition to the CRL requirements, the Redevelopment Agency must satisfy terms of a settlement agreement with the Cupertino Citizens For Affordable Housing in resolution of a lawsuit brought about in connection with the adoption of the Redevelopment Plan in 2000. These requirements go beyond what CRL requires and this Implementation Plan is in compliance with the provisions of that settlement agreement. The settlement terms are as follows: • The Agency must deposit 25%of its annual tax increment into the housing fund (rather than 20%as required under CRL). • The Agency must spend 20% of the amount deposited into the Housing Find (5%of total tax increment collected)to provide housing affordable to extremely low-income persons, who are persons with household incomes not exceeding 30% of area median income. (CRL does not have a requirement for extremely low-income households). • The Agency must provide five affordable housing units (at specified affordability levels) for each 100,000 square feet of non-residential area added within the Project Area if financial assistance from the Agency has been provided (there is no comparable requirement in CRL). • The Agency must satisfy specified requirements for leveraging the use of Housing Fund monies, providing affordable housing monitoring reports to the legal representative for the "Cupertino Citizbns For Affordable Housing" group, and including certain provisions in agreements for the provision of affordable rental units. 1. Overview of Legal Requirements The housing portion of the Implementation Plan is required to set forth specific goals and objectives for the five year planning period, outline specific programs and expenditures planned for the five years, and explain how the stated goals, objectives, programs, and expenditures will produce affordable housing units to meet these obligations. The CRL requires that an implementation plan include the following components: 9 . • An explanation of how the goals, objectives, programs, and expenditures set forth in implementation Plan will implement the housing requirements of the CRL, including a housing program for each of the five years of the Implementation Plan. • The total number of housing units projected to be developed, rehabilitated, price-restricted, assisted, or destroyed for three time periods: (1) on an annual basis for the next five years, (2) in aggregate over a ten-year period, and (3) in aggregate for the remaining life of the redevelopment plan. • Identification of proposed locations for replacement housing, which the Agency would be required to produce if a planned project would result in the destruction of existing affordable housing. • Estimates of deposits into the Housing Fund during the next five years and the Agency's plans for utilizing those funds for affordable housing. • A Housing Production Plan, per AB 315, and a determination as to whether housing production will meet the affordable inclusionary requirement. 2. Statutory Requirements for Housing This section summarizes the major statutory requirements for affordable housing imposed on redevelopment agencies by the CRL and provides background information and analysis regarding affordable housing needs and conditions in the Project Area and overall commun°ty. a. Housing Production Requirement— Specified minimum percentages of new or substantially rehabilitated housing units in a project area are to be made available at a specified affordable housing cost. This requirement applies to redevelopment plans which were either adopted, or which added territory by amendment, after 1976(Section 33413). b. Housing Fund Requirement — Redevelopment agencies are required to expend specified percentages of tax increment revenue for provision of affordable housing(Section 33334.2). c. Replacement Housing Requirement — Agencies must replace, within four years, housing units removed from the housing stock as a result of redevelopment activities(Section 33413). Under California Community Redevelopment Law, 15% of all the housing units constructed or substantially rehabilitated within a Redevelopment Project Area (the "Project Areal must be made affordable to low and moderate-income persons. Of the 15% requirement, at least 6% must be for very low-income persons (up to 50% of county median income) with the balance for moderate-income persons (up to 120% of county median income). This requirement must be met every 10 years, and a Redevelopment Agency must adopt an Affordable Housing Production Plan every ten years that indicates how the requirement will be met for the next decade and how it will be met over the {Ife of the redevelopment Plan. CRL requires a Redevelopment Agency to set aside at least 20% of its tax increment collected for the purposes of increasing, improving, and preserving the community's supply of low and moderate income housing.The Cupertino Redevelopment Agency has a greater responsibility to 10 set -aside no less than 25% of its tax increment for affordable housing under the terms of the Settlement Agreement. Of that 25% set-aside, the Agency must earmark 5% for creating or przserving extremely low housing (housing for persons earning 30% of the County median income). 3. Targeting housing Funds According to Need Through requirements that became effective in January 2002, the Agency must target its Housing Fund expenditures to produce units affordable to very low, low, and moderate income households in at least the same proportion to the community's unmet need, using the regional fair share allocation as a benchmark to satisfy this requirement. This benchmark establishes ten-year "targeting compliance period" used to allocate Housing Fund expenditures distinct from the ten-year "production compliance period" in the AB 315 Plan used to guide the production of affordable housing. However, CRL legislation encourages agencies to synchronize these two ten- year compliance periods. Because the Cuper~uno Redevelopment Agency is under the further obligation of earmarking at least 20% of its housing set-aside funds for extremely low income persons, that percentage will be taken out of the funds available for moderate-income persons. Based on ABAG's"Fair Share" Regional Housing Needs Determination for the City of Cupertino, the table below indicate3 that at a minimum, the Agency must target at least 33%of its Housing Fund moneys to the production of very- low income units and at least 16% to low-income units. Additionally, under the terms of the Settlement Agreement, the Agency must earmark 20% of its Housing Fund monies for extremely low-income units. Combined,the Agency must provide 69%of its Housing Fund monies for extremely low, very low and low-income units. Table 6 ABAG Regional Fair Share Allocations 1999-2006 City of Cupertino Targeting Re uirements by Income Level Total Housing Percentage Income Level Units Needed Extreme) Low 30%rMl 20% Very Low 50%AMl 412 33% Low 50-80%AMl 198 16% Moderate 80-1200!6 AM) ' 644 31% Total 1254 100% Recent law now requires that redevelopment agencies assist housing for persons regardless of age in at least the same proportion that the community's population under age 65 boars to the total population of the community. The table below describes the City of Cupertino's population as of the Census 2000: ti Table 7 Housing Fund Expenditure Requirements Non-Age Restricted Housing Targeting Requirements by Age Group Po ulation—CI of Cupertino Age Group Number Percent Under65 44,986 81% ears 65+years 5,560 11% Total 50,546 100% The table indicates that the Housing Fund money invested in senior housing should not exceed II% of the total Housing Fund expenditures during the targeting compliance period. The law establishes a maximum allocation of funds according to a population's age distribution but does not, however, establish a minimum allocation of funds in this manner. Housing assisted by Housing Fund moneys must be available to low and moderate - income families at an affordable housing cost in accordance with the CRL. For housing assisted by Housing Funds, the following affordable housing cost definitions apply: Table 8 CRL Affordable Housing Cost Definitions Rental Housing 9wnersht Housing Income Level `% Income %of Area %Income %of Area Spent on Median Spent on Median Housing Income Housing Income Extremely 30% 30% 30% 30% Low _ Very Low 30% 50% -30% 50% Low 30% 60% 30% 70% Moderate 30% 110% 35% 110% 4. Duration of Affordability The CRL requires that affordability covenants be recorded with respect to Housing Fund-assisted new and substantially rehabilitated housing units, replacement housing units, and project area production housing units. These affordability covenants must remain in effect for a minimum duration of 55 years for rental units and 45 years for owner-occupied units. 5. Replacement Housing Requirement The Replacement Housing Requirement applies to project areas established by redevelopment plans (or areas added by amendments) adopted on or after January 1, 1976, and merged project areas regardless of the date of establishment of the individual project areas subsequently merged. When residential units sheltering households earning at or below 120 percent of median income are destroyed or removed, or are no longer affordable due to agency action, an agency must replace within four years those units with an equal number of replacement units which have an equal or greater number of bedrooms. Since there are no residential dwelling units in the Project Area, there is no replacement housing requirement contemplated. 6. 'Ten Year Housing Production Plan In satisfying the requirements of the AB 315 plan, this section will demonstrate how the City of Cupertino Redevelopment Agency will meet its housing production obligations established over, the following time periods: (1) the historical life of the redevelopment plan, (2) the 10-year 42000-2010" production compliance period, and (3) production over the life of the redevelopment plan. As required by the CRL, this document includes estimates of the number of new residential units within the Project Area and the number of affordable housing units, which will be developed in order to meet the requirements of the CRL. It is assumed that all of the housing units produced will be developed by entities other than the Agency. The new affordable housing units created within the Redevelopment Project Area will create decent, safe and sanitary housing units for very low, low and moderate-income persons. All such units will be price restricted for the longest possible period, however, in no case less than the period of the land use restrictions of the Redevelopment Plan or the minimum periods required for use of Housing Fund monies as applicable. It is projected that there will be 204 units constructed in the Project Area during the 2006 to 2010 Implementation Plan period, during the ten year housing production period of 2000 to 2010, and over the life of the redevelopment project. Because the Project Area is predominantly a commercial district, it is not anticipated that any more residential- units will be constructed in the Project Area over the life of the redevelopment project. Therefore, Table 9 illustrates the number of affordable housing units required over the life of the Project Area. 13 Table 9 Projected Housing Development Cupertino Vallco Redevelopment Project Area Affordable Production Projected Total Very Low Very Low, Project Completion Date Units Low,A Mod Rose Bowl Spring 2008 204 13 18 I 7. Affordable Housing Production Requirement Given the number of residential units projected within the redevelopment project area during the 2000 to 2010 housing production compliance period, the Agency has an obligation to ensure that 31 units are made affordable and at least 13 of those units are made affordable to very low-income households. 8. Housing Production through Affordability Covenants Agencies may satisfy their inclusionary housing.production obligation by purchasing or acquiring long-term affordability covenants on existing multifamily units that are presently affordable to low and moderate-income households or on currently affordable multifamily units that are not expected to remain affordable. This method cannot be used to satisfy more than 50%of units required to be affordable and not less than 50% must be affordable to very low-income households. 9. Housing Fund Revenues Pursuant to CRL, the Agency is required to include in its Implementation Plan a report on the amount available in the Housing Fund and estimates of deposits in the Housing Fund during the next five-year peric d. At fiscal year end FY2004/05, there was a balance of $39,425. It is projected that the Agency will deposit approximately $1,336,671 (as illustrated in Table 4)into the Housing Fund during the period of 2005 to 2010 from tax increment revenues. These funds can be used both within and outside the Redevelopment Project Area. 10. Housing Programs Policy 3-6 of the Housing Element of the General Plan identifies the Agency's Housing Fund as a source of revenue to be used to assist the City in creating affordable housing. Implementation Program #16 of the Housing Element requires that the Agency establish policies and objectives directing the expenditure of the housing funds for extremely low, very low, low and moderate-income housing. Over the next five years the Agency will work with the City to efficientty and effectively expend its Housing Fund revenues to create affordable housing consistent with the City's Housing Element. The Agency will consider the following housing programs in furtherance of those goals and objectives: 14 a. First Time Homebuyer Program The Agency will consider establishing a First Time Homebuyer Program to help low and moderate income households achieve home ownership in Cupertino. This could be in the form of down payment assistance or second and third mortgages. b. Home Rehabilitation Program This ;Ls a program that offers low interest loans to low income and senior homeowners who cannot afford necessary health and safety repairs to their homes. c. Affordable Housing Incentive Program This is a program that could provide financial incentives te. residential developers to provide a higher percentage of inclusionary housing than required by assisting with closing the affordability gap. d. Land Acquisition The Agency will evaluate the opportunities to partner with non-profit housing developers to acquire land and/or, write down development costs to create affordable housing. 11. On-Going Monitoring of Residential Devedorpmentt and Housing Fund Expenditures An important element for the Agency will be the ongoing monitoring of construction within the Project Area. This will be necessary to keep track of the new housing units produced and compare this to the number of units estimated, thus determining the number of affordable units required. The ongoing monitoring is a relatively simple procedure for the Agency. This is a result of the small size of the Project Area,the limited amount of residential development;and the limited amount of new development taking place. More important will be the monitoring and tracking of housing fund expenditures. While the Agency may have limited responsibility in housing production due to the limited residential development within the Project.Area, the Agency will be required to track housing fund expenditures to ensure it is satisfying both its CRL requirements as well as its obligations under the Settlement Agreement while assisting the City in meeting its housing production requirements over the life of the Redevelopment Agency. G:planning/vallco/Vallco Redevelopment Plan REVISED 11-14-W 15 RESOLUTION NO. 06-01 A RESOLUTION OF THE CUPERTINO REDL , ELOPMENT AGENCY ADOPTING AN OPERATING BUDGET FOR FISCAL YEAR 2006-07 BY RATIFYING ESTIMATES OF REVENUES TO BE RECEIVED IN EACH FUND AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS AND SETTING FORTH CONDITIONS OF ADMINISTERING SAID BUDGET WHEREAS, the orderly administration of municipal government is dependent on the establishment of a sound fiscal policy of maintaining a proper ration of expenditures within anticipated revenues and available monies; and WHEREAS,the extent of any project or program and the de-&Tee of its accomplishment, as well as the efficiency of performing assigned duties and responsibilities, is likewise dependent on the monieF made available for that purpose; and WHEREAS, the City Manager has submitted his estimates of anticipated revenues and fund balances, and has recommended the allocation of monies for specified program activities; NOW,THEREFORE, BE IT RESOLVED that the Cupertino Redevelopment Agency does hereby adopt the following sections as a part of its fiscal policy: Section 1: The estimates of available fund balances and anticipated resources to be received in the Redevelopment Agency fund during fiscal year 2006-07 as submitted by the City Manager in his proposed budget and as have been amended during the budget study sessions are hereby ratified. Section 2. There is appropriated from the fund the sum of money as determined during the budget sessions for the purposes as expressed and estimated for each department. Section 3. The City Manager is hereby authorized to administer and transfer appropriations between Redevelopment Agency accounts within the Operating Budget when in his opinion such transfers become necessary for administrative purposes. Section 4. The Director of Administrative Services shall prepare and submit to the Cupertino Redevelopment Agency a quarterly revised estimate of Operating Revenues. Section 5. The Director of Administrative Services is hereby authorized to continue appropriations for operating expenditures that are encumbered or scheduled to be encumbered at year end. Resolution No. 06-01 2 PASSED AND ADOPTED at a regular meeting of the Cupertino Redevelopment Agency this ® 20th day of June 2006, by the following vote: Vote Members of the RedeveloRment Agency AYES: Lowenthal, Nang, Kwok,Mahoney, Sandoval NOES: None ABSENT: None ABSTAIN: None APPROVED: <;�:Za '4' 'a Chairman,Redevelopment Agency ATTEST: Secretary i 4 RESOLUTION NO.05-02 A RESOLUTION OF THE CUPERTINO REDEVELOPMENT AGENCY STATING THE INTENTION OF THE BOARD TO ALLOCATE 25%OF DISCRETIONARY FUNDS TO BE EARMARKED FOR A PARKING STRUCTURE IN THE VALLCO PROJECT AREA WHEREAS,the Vallco Project Area is currently in development with major planned improvements; and WHEREAS, such planned improvements will produce future tax increments which can be utilized for investment back into the project area; and WHEREAS,the owners of Vallco have requested tax increment monies to assist in the financing of one of two parking structures; and WHEREAS, a parking structure was planned as a part of the original Vallco redevelopment; NOW,THEREFORE, BE IT RESOLVED that the Cupertino Redevelopment Agency does hereby state its intent to allocate 25%of discretionary funds from the Redevelopment Agency future tax increment to be earmarked for a parking structure,based on the estimates in Schedules A an6 B(attached). PASSED AND ADOPTED at a regular meeting of the Cupertino Redevelopment Agency g Y this 6th day of September 2005,by the foI°awing vote: Vote Members of the Redevelopment Agency AYES: Kwok, Lowenthal, Sandoval, Wang,James NOES: None ABSENT: None ABSTAIN: None A'PRO . Ch an, Redevelopment Agency ATTEST: h'JL Secretary ® Scheduls A Tax Increment Revenue Projection Vatbco Fashion Park Redevelopment Protect City of Cupertino 00Ws Omitted . Gross Total Total Tttal Increment Incte t Housing Tax Tier t Tier 2 Tier 3 Statutory Net Fiscal ' Real Inflationary New Real Personal Project Over Base 2evenus(1 Set Aside Revenue Pass Thru Pess Thru Pass Thru Pass Tax Year GraMh Value $116,135 1.04050`9 -25.00% After HSA -2020% -16.80% -11.20% Through Revenue 6 2005-06 102,500 102,500 4,215 106,715 0 0 0 0 0 0 0 0 0 7 2006-07 102,500 2,050 104,550 4,216 108,765 0 0 0 0 0 0 0 0 0 8 2007-08 104,550 2,091 169,744 276,385 4,215 280,600 164.465 1,711 (428) 1.283 (342) 0 0 (342) 941 9 2008-09 106,641 2,133 3g8,730 418.504 4,215 422,719 306,583 3,190 (797) 2,392 (638) 0 0 (638) 1,754 10 2009-10 tu8,774 2,175 315.924 426,874 4,215 431,089 314,953 3,277 (819) 2,458 (655) 0 0 (655) 1,802 11 2010-11, 110.949 2,219 322,243 435,411 4,215 439,626 323.491 3,366 (841) 2.524 (673) 15 0 (688) 1,837 12 2011-121 113,168 2,263 328,688 444.119 4,215 448,334 332,199 3,457 (864) 2,592 (691) (30) 0 (721) 1,872 13 2312-13 115,432 2,309 335,281 453.002 4,215 457,217 341,081 3,549 (887) 2.662 (710) (46) 0 (754) 1,907 14 2013-14 117.740 2,355 341.967 462.062 4.215 466.277 350,141 3,643 (Sill) 2,732 (729) (62) 0 (789) 1,944 15 2014-151 120.095 2,402 348.806 471.303 4,215 475,518 359,383 3,739 (935) 2,805 (748) (78) 0 (824) 1,981 16 2015-16 122,497 2,450 355.762 480.729 4,215 484,944 368,809 3,837 (959) 2,878 (767) (94) 0 (860) 2,019 17 2016-17 124,947 2.499 362.848 490,344 4.215 494.559 378,423 3,937 (984) 2,953 (787) (111) 0 (896) 2,057 18 2017-18 127,446 2,549 370,156 500.151 4.2.5 504,366 388.230 4,040 (1,010) 3.030 (808) (123) 0 (933) 2.097 19 2018-19 123.995 2,600 377.559 510,164 4,215 514,369 398.233 4.144 (1,036) 3.108 (829) (146) 0 (971) 2,137 20 2019-20 132.595 2652 385.110 520,357 4.215 524.572 408.436 4,250 (1,052) 3,187 (850) (163) 0 (1,010) 2.178 21 202C-21 135,247 2.705 392,812 530,764 4,215 534,979 418,843 4,358 (1,090) 3.269 (872) (182) 0 (1,049) 2,219 22 2021.22 137.952 2,750 400,668 541,379 4,215 545,594 429,459 4,469 (1,117) 3,351 (894) (200) 0 (1,089) 2,262 23 3022-23 140,711 2,814 408.682 552.207 4,215 556,422 440,286 4,581 (1,145) 3,436 (916) (219) 0 (1,130) 2,309 24 2023-24 143,525 2.870 416,855 563,251 4.215 567,466 451,330 4,696 (1,174) 3,522 (939) (238) 0 (1,172) 2,350 25 2024-25 146,995 2,928 425.193 574.516 4,215 578,731 462.595 4,813 (1,203) 3.610 (963) (258) 0 (1,215) 2,395 26 2025-26 149,323 2,986 433,696 586,006 4.215 590,221 474,086 4,933 (1,233) 3,700 (987) (278) 0 (1,259) 2,441 27 2026-27 162,310 3,046 442,370 597.726 4,216 601,941 485.806 5,055 (1,264) 3,791 (1,011) (299) 0 (1,303) 2,488 26 202726 155,356 3,107 451.218 609.681 4.215 613,896 497.760 5,179 (1,295) 3.884 (1.036) (320) 0 (1,348) 2,536 29 2028-29 158.463 3,169 460,242 621,874 4,215 626,089 509,954 5.306 (1,327) 3,980 (1,061) (341) 0 (1,394) 2,586 30 2029-30 161,632 3,233 469.447 634,312 4,215 638,527 522,391 5,435 1,359 4.077 -(1,087) (363 0 (1,442 2,635 r; 30 20 -31 164.865 3.297 478,838 646,998 4.215 651,213 535,078 5,567 (1,392) 4,176 (1,113) (385) 15 {1,504) 2,671 2031-32 168,162 3,363 488.413 659,938 4,715 664,153 548,018 Z,702 (1,426) 4,277 (1,140) (407) (30) (1,568) 2,709 33 203".-33 171,525 3,431 498,181 673,137 4,215 677,352 561,216 5,839 (1,460) 4,380 (1,168) (430) (45) (1,633) 2.747 34 2033-34 174.956 3,499 508.144 686,599 4,216 690.814 574,679 5,980 (1,495) 4.485 (1,196) (454) (61) (1,699) 2,7Q5 35 2034-35 178,455 3.569 518,307 700,331 4,215 704,546 588.411 6,122 (1,531) 4,592 (1,224) (478) (77) (1,767) 2,825 36 2035-36 182,024 3,640 528.674 714,334 4,215 718,553 602,418 6,268 (1,567) 4.701 (1,254) (502) (93) (1,836) 2.865 37 2036-37 185,665 3,713 539.247 728,625 4,215 732,840 616,704 6,417 (1,604) 4,813 (1,283) (527) (110) (1,906) 2.906 38 2037-38 189.376 3.768 650.032 743,197 4,215 747,412 631,277 6,568 (1,642) 4,926 (1,314) (553) (127) (1,978) 2,948 39 2038.39 193,165 3,863 561,033 750.061 4.215 -62,276 646,141 6,723 (1,681) 5,042 (1,345) (579) (144) (2,052) 2,991 40 2039-40 197.029 3.941 572,253 773,223 4215 777,438 661,302 6,881 (1,720) SAS1 (1,376) (605) (162) (2,126) 3,034 41 2040.41 200.969 4,019 583.698 78S.687 4,215 792,902 676,767 7,042 (1,760) 5,261 (1,408) (632) (180) (2,203) 3,079 42 2041-42 204.989 4,100 595,372 804,461 4.215 808,676 692,540 7,206 (1,801) 5404 (1,441) (660) (198) (2,280) 3,124 43 2042-43 209.088 4.182 607280 820,550 4215 824,765 708,630 7,373 (1,843) 5.530 (1,475) (688) (217) (2,360) 3,170 44 2043.44 213.270 4,265 619,425 06,961 4.215 841.176 725.041 7.544 (1,886) 5,658 (1,509) (717) (236) (2,44i)l 3,218 45 2044-45 217,536 4.351 031,814 853,700 4,215 857.916 741 780 7,718 1930 5,789 (1,544) 746 256 (2,523)1 3,266 TOTAL(YEARS 6-30) 94,966 (23,741) 71,224 (18,993) (3,569) 0 (22,483) 48,742 TOTAL(YEARS 6-45) 193,917 (48,479) 145,438 (38,783) (11,935) (1.951) (52.359) 93,079 (1)Includes pre-1989 property taxOwmide:County Retirement Levy(.0388%)and County Library Retirement Prepared by Keyser Marston Associates,Inc. Riename:Vallco RDA-cupertino ti projupdatevais.xis;TI Summary;91112005;3:56 PM;RJW Schedule A-1 Real Property Value Added Valico Fashion Park Redevelopment Project City of Cupertino (000's Omitted) Value 1 2 3 4 5 6 Development Description Added 2005-06 2006-07 2007-08 2008-09 2009-2010 2010-2011 1 AMC 16 Theatre 20,000 20,000 2 Parking Structures At Macy's and JCP 20,000 20,000 3 Hotel 50,000 50,000 4 North West Housing(150 Units). 75,000 75,000 5 Rose Bowl Retail/Garage 120,000 120.000 Total Real Property Value 285,000 0 0 160,000 125,000 0 0 Total Real Property Value(Inflated) 3.00% 0 0 169,744 136,591 0 0 Cumulative Value with Prop 13 Increases 102.00% 0 0 169,744 309,730 315,924 322,243 Prepared by Keyser Marston Associates,Inc. Filename Valico RDA-cupertino ti projupdatevals.xis;TI_Detail;8/31/2005;5:32 PM;RJW Seheduh,8 • Tax Increment Revenue Projection VaRro Fashion Park Redevelopment Project City of Cupertino 000's Omitted Gross Total Total Tots' increment anent Housing Tax Tier t Tim 2 Tim 3 Statutory Net CRY SCC Net Fiscal Beal InRaRonary New Reef Personal Pmjsct Over Base Revenue(1 Set Aside Revenue Pass Thor Pass Thru Pass Thru Pass Tax x�n6hne0hNgatlonl Avallebfe Year Pro Grow4n Pro , Pm Valve 1116.135 1.04050% -25.W% Ater HSA -20.00% -16.W% -1120% ThroughRevenue 3 tntxement 1 2000-01 0 (284) 0 0 2 2001-02 0 (39) 0 A 3 2002-03 0 (100) 0 O I 4 2003-04 0 ( 0 U 5 2004.05 0 (69) 0 0 b 2005-06 102,500 102.500 4215 106.715 0 0 0 0 0 0 0 0 0 (to5) (159) 0 7 2006-07 102,500 2.060 104,550 4.215 108,765 0 0 0 0 0 0 0 0 0 (110) (167) 0 8 2007-08 104,550 2.091 169,744 276.385 4,215 280.600 164,465 1,711 (428) 1,283 (342) 0 0 (342) 941 (115) (175) 0 9 2008-09 106,641 2.133 309,730 418,504 4,215 422,719 308,583 3,190 (797) 2.392 (638) 0 0 (638) 1.754 (436) (184) 957 10 2009-10 108,774 2.176 315,924 426.874 4.215 431.089 314,953 3,277 (811) 2,458 (655) 0 0 (6%) 1.802 (460) (193) 1.149 11 2010-11 110,949 2.219 322,243 435,411 4,215 439.626 323,491 3.366 (841) 2.524 (673) r15 0 (688) 1,837 (4,83) (203) 1,151 12 2011-12 113,168 2.263 328.688 444,119 4.215 448.334 332.199 3,467 (864) 2,592 (691) (30) 0 (721) 1.872 (501) (213) 1.152 13 2012-13 115.432 2.309 335.261 453.002 4.215 457,2117 341.081 3,549 (881) 2,662 (710) (46) 0 (754) 1.907 1,532) (224) 1.151 14 201344 117.740 2,355 341.967 462.062 4.215 468.277 350,141 3.643 (911) 2.732 (729) (62) 0 (789) 1,944 (560) (235) 1,149 15 2014-15 i20,O95 2,402 348.806 471,303 4.215 475,510 359,383 3.11W (935) 2.805 ±i241 (78) 0 (824) 1.981 (587) (247) 1.147 16 2015-16 122,497 2.450 355.782 480.729 4.215 484.944 368,809 3,837 (959) 2,878 j767) (94) 0 (860) 2,019 (616) (259) 1,144 17 2016.17 124,947 2,499 362.898 490,344 4.215 494.559 378,42.3 3,937 (984) 2.953 (787) (111) 0 (896) 2.057 (647) (272) 1.138 18 2017-19 127.446 2.549 370,156 500,151 4.216 504,366 388230 4,040 (1,010) 3,030 (800) (128) 0 (933) 2.097 (679) (285) 1,133 19 2018-19 129,995 2.600 377,559 510,154 4.215 614,369 398,2213 4,144 (1,036) 3.108 (829) (146). 0 (971) 2.137 (714) (300) 1.123 20 2019-20 132,595 2.652 365,110 520,357 4,215 524.572 406,435 4,250 (1,062) 3,187 (850) (1F3) 0 (1,010) 2.178 (749) (315) 1,114 21 2020-21 135.247 2.705 392.812 530.764 4.215 534.979 418,1343 4.358 (1.090) 3,269 (872) (182) 0 (1,049) 2,219 (787) (331) 1.101 22 2021-22 137.952 2.759 400,668 541,379 4,216 545,594 420,459 4,469 (1,117) 3,351 (894) (200) C (1.089) 2262 (826) (347) 1,089 23 2022-23 140,711 2.814 408,682. 552,207 4,215 556,422 440,286 4.581 (1,145) 3,436 (916) (219) 0 (1,130) 2305 (867) (365) 1.073 24 Z023.24 143,525 2.870 416.855 663,251 4.215 567,466 451,330 4.696 (1,174) 3,522 (939) (238) 0 (1,172) 2.350 (911) (383) 1.056 25 2024-25 146,395 2,928 425.193 574,516 4.215 578,131 462,595 4.813 (1,203) 3,610 (963) (258) 0 (1,215) 2.395 (956) (402) 1.037 26 2025-26 149,323 2.986 433.696 586,006 4,215 590.221 474,086 4,933 (1,233) 3,700 (987) (278) 0 (1,259) 2.441 (1,004) (422) 1.015 27 2026-27 152,310 3,046 442,370 597.726 4215 601,941 4115,806 5,055 (1,264) 3,791 (1,011) (299) 0 (1,303) 2,488 (1,054) (443) 991 28 2027.28 155,356 3.107 451,218 609,631 4.215 613.896 497,760 5,179 (1,295) 3,884 (1,036) (320) 0 (1,348) 2,536 (1107) (465) 964 29 2028.29 158.463 3,169 460,242 621,874 4.215 626.089 509.954 5.306 (1.327) 3,980 (1,061) (341) 0 (1,394) 2,585 (1,163) (489) 934 30 2029.30 161,632 3,233 469,447 634.312 4.2115 08.627 522,391 5.435 (1,359) 4.077 1,087 363 0 1,442 2.635 1,221 513 9C1 31 2030-31 164,865 3.297 478,836 646,998 4,215 651,213 635,078 5.567 (1,392) 4.176 (1,1131 (385) 15 (1,504) 2.671 32 2031.32 168,162 3,363 488,413 659,938 4,215 664,153 548,Ota 5,702 (1.426) 4,277 (1,140) (407) (30) (1,568) 2.709 33 2032-33 171.525 3,431 498,181 673,137 4.215 677,352 561,216 5,839 (1,460) 4.380 (1.168) (430) (45) (1,633) 2.747 34 2033.34 174,956 3,499 508,144 686,599 4;'15 690.614 574,679 5,980 (1,495) 4,485 (1,196) (454) (61) (1,699) 2,785 35 2034-35 178,455 3,569 518,307 700,331 4.215 704.546 588,411 6.122 (1,531) 4,592 (1,224) (478) (77) (1.767) 2.825 36 2035.36 182,024 3,640 528,674 714.338 4,215 716,553 602.418 6,268 (1,567) 4,701 (1,254) (502) (93) (1,826) 2,865 37 20311-37 185.665 3,713 539,247 728,625 .4,215 732.840 616,704 6.417 (1,604) 4.813 (1,283) (527) (110) (1,906) 2,906 38 2037-38 189,378 3.786 550.032 743.197 4215 747.412 631.277 6.568 (1,642) 4,926 (1,314) (553) (127) (1,978) 2,948 39 2038.39 193,165 3,863 561.033 758,061 4.215 762,276 645,141 6.723 (1,381) 5,042 (1,345) (579) (144) (2,052) 2.991 40 2039.40 197.029 3,941 572,253 '173.223 4.215 777,438 661,302 6,881 (1.720) 5,16t (1,376) (605) (1621 (2,(26) 3,034 41 2040-41 200.969 4,019 583.698 788.687 4,216 M902 078.767 7.042 (1,760) 5,281 (1,408) (632) (180) (2,703) 3.079 42 2041-d2 204,989 4,100 595,272 804,461 4,215 808.676 692.540 7,206 (1,801) 5,404 (1,441) (660) (198) (2,260) 3,124 43 2042.43 209,008 4.182 607,280 820,550 4,215 824.765 706.e30 7,373 (1,843) 5.530 (1,475) (688) (217) (2,360) 3,t'� 44 2043-44 213.210 4.265 619.425 835,951 4.215 841,176 725,041 7.544 (1,886) 5.658 (1,509) (717) (236) (2,441;1 4,218 45 2044-45 217,536 4.351 631814 853,700 4.215 857915 741780 7118 1,930 5,788 1,544 746 258 2,5-,L 3,288 TOTAL(YEARS6.30) 94,968 (23,741) 71,224 (18,993) (3,569) 0 (22,483) 49.742 (14,287) (6,124) 20.869 TOTAL(YEARS 6-0C) 193.917 (48,479)145.436 (38,783) (1 t,935) (1,951) (62,359) 93.079 (1)Irmfudes pre-1989 properly lax override:County (2)includes staff costs,audil,consultants and (3)Includes part of the SCC contractual obligation- Retirement Levy(.0388%)and County Library Retirement an ecorlomleMDA division sheriff cost only;no annexation Costs included Prepared by Keyser Marston Associates,hoc. Filename:Vasty RDA-cupenino net projections w-o annex.xls;TI Summary;9/112005;1:43 PM;RJW List of Affected Taxing Agencies and Projected Project Area Base Year(1999100)Revenues Vallco Redevelopment Project Area Projected Projact Area share of Project Area Base Year Total Be"Year Property Tair Base Year Assessed Values(11 Revenue Rovenue(2) 1 County $27,815.168 $278.152 23.95% 2 County Library S4.998,716 $49.097 4.30% 3 City of Cupertino $2,596.794 $25,968 224% 4 Cupertino Elementary School District $28,689.526 $286,895 24.70% 5 Frenwnt Llmon High School Disind $19,374AU $193.749 16.6b% 6 Foothill Community Cogege $7,396,152 $712.962 6.37% 7-County Office of Education $3,W8.741 SX087 3.11% 6 Central Fire District $17526,307. $175,263 15.09% 9 Mid-Perimula Open Space District $1,808.194 $18,082 1.56% 10 SCVWD-North Central $1,122.864 $11.229 0.97% 11 SCVWD - S207,315 SZO73 0.18% 12 Say Area Air C aety Management District $214.826 $2.146 0.18% 13 SCVWD=State Water Project $616.922 $6.169 0.53% 14 �CVWD-Zone W-4 $159.014 $1.590 0.14% Totals. - $116,135,419 $1,161,354 100.00% Notes: (1)County of Santa Clara Finance Agency-Ccntroller-Treasurer Dept.(1998-99)inflated 3%. (2)Share during first 10 years of Plan. Share graduates in year 11 and again in year 31. PREPARED BY:KEYSER MARSTON ASSOCIATES,INC. FILENAME:cupertinotaxentitieswils.xis;Taxing Agencies;8/29)2005;8:41 AM;RTK RESOLUTION NO.05-01 A RESOLUTION OF THE CUPERTINO REDEVELOPMENT AGENCY ADOPTING AN OPERATING BUDGET FOR FISCAL YEAR 2005-06 BY RATIFYING ESTIMATES OF REVENUES TO BE RECEIVED IN EACH FUND AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS AND SETTING FORTH CONDITIONS OF ADMINISTERING SAID BUDGET WHEREAS, the orderly administration of municipal government is dependent on the establishment of a sound fiscal policy of maintaining a proper ration of expenditures within anticipated revenues and available monies; and WHEREAS,the extent of any project or program and the degree of its accomplishment, as well as the efficiency of performing assigned duties and responsibilities,is likewise dependent on the monies made available for that purpose; and WHEREAS,the City Manager has submitted his estimates of anticipated revenues and fund balances,and has recommended the allocation of monies for specified program activities; NOW,THEREFORE,BE IT RESOLVED that the Cupertino Redevelopment Agency does hereby adopt the following sections as a part of its fiscal policy: Section 1: The estimates of available fund balances and anticipated resources to be received in the Redevelopment Agency fund during fiscal year 2005-06 as submitted by the City Manager in his proposed budget and as have been amended during the budget study sessions are hereby ratified. Section 2.. There is appropriated from the fund the sum of money as determined during the budget sessions for the purposes as expressed and estimated for each department. Section 3. The City Manager is hereby authorized to administer and transfer appropriations between Redevelopment Agency accounts within the Operating Budget when in his opinion such transfers become necessary for administrative purposes. Section 4. The Director of Administrative Services shall prepare and submit to the Cupertino Redevelopment Agency a quarterly revised estimate of Operating Revenues. Section 5. The Director of Administrative Services is hereby authorized o continue appropriations for operating expenditures that are encumbered or scheduled to be encumbered at year end. Resolution No. 05-01 Page 2 PASSED AND ADOPTED at a regular meeting of the Cupertino Redevelopment Agency this 21 st day of June 2005,by the following vote: Vote Members of the Redevelopment Agency AYES: Kwok, Sandoval,Wang, James NOES: None ABSENT: Lowenthal ABSTAIN: None APP ED: J airman,Redevelopment Agency ATTEST: Secretary ,' RESOLUTION NO. 04-01 ® A RESOLUTION OF THE CUPERTINO REDEVELOPMENT AGENCY ADOPTING AN OPERATING BUDGET FOR FISCAL YEAR 2004-05 BY RATIFYING ESTIMATES OF REVENUES TO BE RECEIVED IN EACH FUND AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS AND SETTING FORTH CONDITIONS OF ADMINISTERING SAID BUDGET WHEREAS,the orderly administration of municipal government is dependent on the establishment of a sound fiscal policy of maintaining a proper ration of expenditures within anticipated revenues and available monies; and WHEREAS,the extent of any project or program and the degree of its accomplishment, as well as the efficiency of performing assigned duties and responsibilities, is likewise dependent on the monies made available for that purpose; and WHEREAS,the City Manager has submitted his estimates of anticipated revenues and fund balances, and has recommended the allocation of monies for specified program activities; NOW,THEREFORE, BE IT RESOLVED that the Cupertino Redevelopment Agency does hereby adopt the following sections as a part of its fiscal policy: Section 1: The estimates of available fund balances and anticipated resources to be received in the Redevelopment Agency fund during fiscal year 2004-05 as submitted by the City Manager in his proposed budget and as have been amended during the budget study sessions are hereby ratified. Section 2. There is appropriated from the fund the sum of money as determined during the budget sessions for the purposes as expressed and estimated for each department. Section 3. The City Manager is hereby authorized to administer and transfer appropriations between Redevelopment Agency accounts within the Operating Budget when in his opinion such transfers become necessary for administrative purposes. Section 4. The DiTI:ctOr of Administrative Services shall prepare and submit to the Cupertino Redevelopment Agency a quarterly revised estimate of Operating Revenues. Section 5. The Director of Administrative Services is hereby authorized to continue appropriations for operating expenditures that are encumbered or scheduled to be encumbered at yearend. Resolution No. 04-01 Page 2 PASSED AND ADOPTED at a regular adjourned meeting of the Cupertino Redevelopment Agency this 21 st day of June 2004,by the following vote: Vote Members of the Redevelopment Agency AYES: James,Kwok, Lowenthal, Sandoval, Wang NOES: None ABSENT: None ABSTAIN: None APPROVED: Chairman,Rede opment Agency ATTEST: Secretary