Item 8 - Future Redevelopment Funding AGENDA REPORT SUMMARY
TO: Honorable Mayor and Members of the City Council
Honorable President and Members of the
Board of Education
FROM: James L. Bowersox, City Manag~'~
DATE: June 15, 1995
SUBJECT: Future Redevelopment Funding
The Poway Redevelopment Agency was formed in 1983 with a focus on improving conditions
within the Paguay (pronounced Poway) Project Area. Upon adoption of the Redevelopment
Plan, the City of Poway and Poway Unified School District embarked upon a relatively
unique partnership of developing a number of joint use projects. During the ensuing
rears, playing fields were improved at Pomerado, Midland, lierra Bonita, and Twin Peaks
schools; middle school gyms were built at Twin Peaks and Meadowbrook; the Performing
~rts Center, football stadium, and baseball field were built at Poway High School.
Because of the enormous success of the Poway Redevelopment Agency, these improvements
were completed ten years earlier than originally projected.
In 1991, it was becoming apparent that the Redevelopment Agency was reaching its
~rojected debt cap. The attached report gives a summary for future redevelopment
funding plans.
In conclusion, steps have been taken to prepare the Redevelopment Agency to meet the
needs of both the project area and other agencies participating as partners. As soon
as the economy sufficiently improves, the Agency is prepared to proceed with the
implementation of the Paguay Redevelopment Plan.
ACTION
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CITY OF POWAY
AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
Honorable President and Members of the Board of Education
FROM: James L. Bowersox, City Man~
DATE: June 15, 1995
SUBJECT: Future Redevelopment Funding
BACKGROUND
The Poway Redevelopment Agency was formed in 1983 with a focus on improving
conditions within the Paguay (pronounced Poway) Project Area. Upon adoption of
the Redevelopment Plan, the City of Poway and Poway Unified School District
embarked upon a relatively unique partnership of developing a number of joint use
projects. During the ensuing years, playing fields were improved at Pomerado,
Midland, Tierra Bonita, and Twin Peaks schools; middle school gyms were built at
Twin Peaks and Meadowbrook; the Performing Arts Center, football stadium, and
baseball field were built at Poway High School. Because of the enormous success
of the Poway Redevelopment Agency, these improvements were completed ten years
earlier than originally projected.
In 1991, it was becoming apparent that the Redevelopment Agency was reaching its
projected debt cap. That is, the repayment of bonds and other debt used to
construct various projects would equal the cap of $408 million by the time the
existing debt was repaid. At the same time, an extensive study was completed
which determined that there were a large number of projects remaining to be
completed. This included not only those of the City, but also those of the Poway
Unified School District, the County of San Diego, the Palomar Community College
District, the Palomar/Pomerado Hospital District, and the County Office of
Education. Therefore, in cooperation with the other public agencies, the
Redevelopment Agency processed a plan amendment in June 1993 to raise the
financial cap from $408 million to $3.5 billion. The subsequent adoption of a
new redewlopment law, AB 1290, may limit the cap to $1.8 billion. In
anticipation of amending the plan, in May 1993, the Agency sold a bond issue that
not only refinanced existing bonds but also maximized bonding capacity under the
old cap. Part of the proceeds of the 1993 bond issue were set aside for the
benefit of the partner agencies. Poway Unified School District received $4.5
million. In all cases, this payment of the 1993 bond proceeds was intended to be
leveraged as a match for other funding. The Poway Unified School District
intended to match state funds for improvement of older schools in Poway.
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Future Redevelopment Funding
June 15, 1995
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FINDINGS
Despite an ongoing lawsuit with the Legal Aid Society which was won at the trial
court level by the Redevelopment Agency, the Agency has proceeded to implement
the amended plan. However, like any redevelopment plan, its financial success
depends upon the growth of assessed valuation within the project. During the
course of the recession, there has been less development than projected, lowered
assessments on developed properties and fewer resales. As a result, the
financial projections of the Redevelopment Agency have been revised. It had been
anticipated that future bonds secured by tax increment would be issued every two
years following the adoption of the plan amendment, i.e. 1995, 1997, 1999. At
this time, it appears that it will be either 1997 or 1998 before sufficient tax
increment will exist to issue bonds. Attached for your review as Exhibit 1 is a
copy of a table prepared in conjunction with a report to the State as a
requirement of AB 1290 describing the financial condition of the Redevelopment
Agency.
CONCLUSION
In conclusion, steps have been taken to prepare the Redevelopment Agency to meet
the needs of both the project area and other agencies participating as partners.
As soon as the economy sufficiently improves, the Agency is prepared to proceed
with the implementation of the Paguay Redevelopment Plan.
Attachment: Exhibit 1 - Table
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Exhibit 1 JUN 15 1995 ITE~