(13)AR 091807 Rancho Mill Revelopment Area

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ITEM #13 CITY COUNCIL AND REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the City Council and Redevelopment Agency Board Meeting of September 18, 2007 TO: Honorable Mayor and Councilmembers Honorable Chairperson and Boardmembers FROM: Candace E. Cassel, Economic Development Directq.`— SUBJECT: Consideration and Approval of City Resolution and Agency Resolution No. 865 Approving a Loan By and Between the Redevelopment Agency for the City of Colton and the City for the Rancho Mill Redevelopment Project Area and Budget Adjustment for Fiscal Year 2007-08. DATE: September 5, 2007 BACKGROUND On June 13, 1994, the Redevelopment Agency for the City of Colton ("Agency") adopted Ordinance 0-13-94, which adopted the Redevelopment Plan for the Rancho/Mill Redevelopment Project Area ("Redevelopment Plan"). Redevelopment provides for the Agency to receive tax increment (an increase in assessed valuation over the base year) to fund projects in the project area that assist in the elimination of blight. The Redevelopment Plan and California Community Redevelopment Law set forth various methods by which the Agency can assist in the elimination of blight. In order to receive tax increment for redevelopment purposes, the Agency needs to create debt by selling bonds or entering into agreements. Failure to incur debt will result in the Agency's inability to collect tax increment generated by the project area. On September 6, 2003 the City and Agency approved Resolutions R-100-03 and 819, respectively, approving a loan between the City and the Agency in the amount of $500,000 for the purpose of funding projects within the Rancho/Mill Project Area. That loan was fully repaid on June 30, 2007. A Citizens Advisory Committee (CAC) was formed to identify projects for the Rancho/Mill Project Area in December 2003 after the first $500,000 loan was made. Participation on the CAC was voluntary and included all property owners and business owners located in the project area who wished to participate. Projects completed or nearing completion using monies from the first $500,000 loan were identified by the (CAC) and included: • Landscape Project at Mill Street and Rancho Avenue • Landscape Project at C Street and Rancho Avenue • Traffic Signalization at Rancho Avenue and Citrus Street • Home Beautification Grant Program assisting four (4) residents • Curb, Gutter, Sidewalk and Drainage Improvements at ■ 6th Street between Hanna and Acacia ■ Pennsylvania from Citrus to Johnston ■ 7th Street from Olive to Oak ■ B and 7th Street R:\Administration\Meetings\2007 Meetings\September 18, 2007\Loan Agreement RMill Staff Report091807 final cc.doc