Simi Valley Community Development Agency Successor Agency/Oversight Board

Meeting Agendas and Staff Reports

Resolutions Adopted by the Oversight Board

Recognized Obligations Payment Schedules (ROPS)

The following Recognized Obligations Payment Schedules have been approved by the California Department of Finance:

For the period of January 1, 2012 - June 30, 2012
For the period of July 1, 2012 - December 31, 2012
For the period of January 1, 2013 - June 30, 2013
For the period of July 1, 2013 - December 31, 2013
For the period of January 1, 2014 - June 30, 2014
For the period of July 1, 2014 - December 31, 2014
For the period of January 1, 2015 - June 30, 2015
For the period of July 1, 2015 - December 31, 2015
For the period of January 1, 2016 - June 30, 2016

Dissolution of the Simi Valley Community Development Agency

The City of Simi Valley formed the Simi Valley Community Development Agency in 1974. The Agency was established to provide a tool to eliminate blighted conditions and thus ensure Simi Valley's economic base would grow and remain healthy through the provision of new public improvements, commercial and industrial developments, and the provision of affordable housing.

On June 28, 2011, the Governor signed two pieces of legislation that affect all 400 redevelopment agencies in the State of California. ABX1 26 and ABX1 27, which were trailer bills to the State of California's 2011-12 Budget, add Parts 1.8, 1.85, and 1.9 of Division 24 of the Health and Safety Code and became effective immediately.

ABX1 26

ABX1 26 (the "Dissolution Act") is a bill that mandated the dissolution of all redevelopment agencies in California as of October 1, 2011. The Dissolution Act provides that all financial activities of the redevelopment agency are restricted to enforceable obligations, no new actions could be taken to further encumber the redevelopment agency, and cities were to prepare for the intended dissolution of the agency.

The Dissolution Act further provides that a Successor Agency shall be created to administer the enforceable obligations of the redevelopment agency and otherwise wind up the agency's affairs, subject to review and approval by an oversight board.

ABX1 27

The second bill, ABX1 27, provided that a redevelopment agency may continue in operation beyond October 1, 2011 if a city that has a redevelopment agency adopts an ordinance agreeing to comply with and participate in the Alternative Voluntary Redevelopment Program (Program). As a condition of the redevelopment agency's continued existence and as part of the Program, the city is required to make certain annual payments to the county auditor-controller beginning in Fiscal Year 2011-12.

Lawsuit Regarding these Bills

On August 11, 2011, the League of California Cities and the California Redevelopment Association filed a lawsuit with the California Supreme Court challenging the State's actions. On December 29, 2011, the Supreme Court found ABX1 26 constitutional, allowing for the dissolution of redevelopment agencies, and found ABX1 27 unconstitutional. Therefore, all redevelopment agencies will be dissolved under the Dissolution Act, and none will have the opportunity to opt into the Program to allow continued existence. As established by the Court, the effective date for the dissolution of redevelopment agencies is February 1, 2012.

Successor Agencies

As of February 1, 2012, redevelopment agencies were replaced with successor agencies that are responsible for the winding down of the affairs of the former redevelopment agencies including disposing of assets and continuing payments of enforceable obligations. Enforceable obligations are considered to be bonds, loans, payments required by governments, court judgments and settlements, legal contracts and agreements, and contracts necessary for continued administration.

On January 30, 2012, the Simi Valley City Council elected to serve as the Successor Agency to the Simi Valley Community Development Agency. The Successor Agency is responsible for all assets, properties, contracts, leases, records, buildings, and equipment and manages their sale and disposition. The proceeds generated from the disposition of all redevelopment agency assets are distributed to all taxing entities through the normal tax rate distribution. As part of its duties, the Successor Agency will continue to prepare Recognized Obligations Payment Schedules (ROPS) that list the debts of the former redevelopment agency and ensure payments are made.

Oversight Board

As provided in the Dissolution Act, all actions of the Successor Agency are monitored, and in some cases approved, by an Oversight Board. The Oversight Board is generally intended to supervise the activities of the Successor Agency. However, the California Department of Finance (DOF) oversees actions of the Oversight Board, and the DOF has the authority to disapprove or modify an action by the Oversight Board.

The Oversight Board has a fiduciary responsibility to holders of Enforceable Obligations of the former redevelopment agency. Additionally, in somewhat of a conflict with the responsibility to holders of Enforceable Obligations, the Oversight Board has a fiduciary responsibility to the taxing agencies that benefit from the distribution of property tax and other revenues created from Agency assets.

Below are links to agendas of the Oversight Board meetings, items of business considered by the Successor Agency and Oversight Board, and Recognized Obligations Payment Schedules (ROPS).

Simi Valley Community Development Agency - Historical Perspective

The Agency has administered redevelopment activities within Simi Valley since 1980 and many activities have led directly to the alleviation or elimination of blight conditions. Additionally, the Agency's activities have also acted as catalysts for development, thereby leading to the indirect alleviation of blight conditions and leading to improvement of the Project Areas and the City of Simi Valley as a whole.

While the larger capital improvement projects have a noticeable impact in the community, smaller capital improvement projects funded through the Agency have resulted in the continuity of services to residents and businesses in the City as well as facilitated the flow of vehicular traffic to ensure conformance with the City of Simi Valley's standard of a Level of Service "C" or better at all intersections. Smaller capital improvements include the replacement or rehabilitation of sanitary sewer lines, storm drain lines, intersection improvements including installation of traffic signals and the upgrade of existing traffic signals, road widening, street reconstruction and repaving, and landscaping within the public right-of-way.

Large Capital Projects

Since being activated in 1980, the Agency has successfully financed, in whole or in part, numerous large capital projects. These projects include:

Madera Road/118 Freeway interchange improvements
Madera Road extension north of Easy Street
Cochran Street Extension project east of Madera Road
Cochran Street widening between Tapo Street and Stearns Street
Alamo Street widening between Sycamore Drive and Tapo Street
Boys & Girls Club of Moorpark & Simi Valley facility
Two expansions of the Simi Valley Senior Center
Simi Valley Police Department facility
Simi Valley Cultural Arts Center
Department of Motor Vehicles facility
Development Services Building remodel
Simi Valley City Hall and Expansion
First Street improvements at Southern Pacific Railroad crossing
Tapo Canyon Road at-grade crossing

Public Improvements

The Agency also participated in the Phase I Public Improvements of the Tapo Street Revitalization project, which included new landscaping and irrigation, median improvements, street lighting, sidewalk improvements, and street overlay.

The Agency was instrumental in the development of the Simi Valley Town Center in 1993, the Agency Board authorized the purchase of approximately 33 acres of property located within the West End component of the Merged Tapo Canyon and West End Project Area at the northeast corner of First Street and the 118 Freeway. Through the course of negotiations with the developer of the Simi Valley Town Center, the Corti-Gilchrist Partnership and the Finley Group (together known as Simi Valley Towncenter, LLC), the Agency's parcel was a key component in the financial structure that facilitated the development of the Simi Valley Town Center.

In order to convey the property to Simi Valley Towncenter, LLC, the parties entered into a Disposition and Development Agreement (DDA). In exchange for the Agency's property, the Developer was obligated to construct approximately 250,000 square feet of commercial retail space including an anchor store of not less than 110,000 square feet of gross leasable area. Approval of the DDA facilitated the development of the Agency's property and ensured the property was developed in accordance with the Merged Tapo canyon and West End Project Area's Development Plan. Without the Agency's acquisition of the 33-acre parcel and involvement in the project, it is unlikely that the Simi Valley Town Center would have been built.

Private Industry Investment

The Agency's assistance in the completion of major infrastructure improvements has stimulated investment by private industry too. This private investment resulted in the development of the Voit Simi Business Park (Simi Commerce Center), the Tapo Canyon Business Park, and numerous other commercial and industrial projects that have been constructed within the Agency's Project Areas.

The Agency's involvement has also stimulated substantial private investment in commercial projects that benefit the community as a whole. These commercial projects include the Civic Center Plaza, El Paseo Simi, and Simi at the Plaza. These centers provide critical venues for Simi Valley's retail base, providing employment opportunities as well as sales tax revenue to sustain the City of Simi Valley.

The Agency has leveraged private sector funds by providing matching grants to property owners under the Tapo Street Facade Renovation Program, which was initiated in 1997, and the Los Angeles Avenue Facade Renovation Program, which was initiated in 2003.

Facade Renovation Grants

Since its inception, the Tapo Street Facade Renovation Program has awarded over $750,000 in Facade Renovation Grants for more than two dozen projects along the Tapo Street corridor. These funds have leveraged more than $1.7 million in additional private investment for these projects, for a grand total of nearly $2.5 million in investment into Simi Valley. On average, each Program dollar spent has leveraged approximately $2.31 in private investment.

Since its inception, the Los Angeles Avenue Facade Renovation Program has awarded approximately $750,000 in Facade Renovation Grants for 18 projects along the Los Angeles Avenue corridor. These funds have leveraged approximately $4 million in additional private investment for these projects, for a grand total nearly $5 million in investment into Simi Valley. On average, each Program dollar spent has leveraged approximately $5.32 in private investment.

Affordable Housing Program

With respect to the Agency's Affordable Housing Program, the following are highlights of the Agency's housing accomplishments:

Senior Rent Subsidy Program: This program provides rental assistance to very low-income senior households throughout the City. A monthly average of 41 senior households, who are on the Area Housing Authority of the County of Ventura's Section 8 waiting list, receive rental assistance through this program.
Senior Mobile Home Rent Subsidy Program: This program assists very low- and low-income senior households who pay more than 30% of their adjusted gross income for space rent, and who have been affected by recent space rent increases in the City's mobile home parks. On average, approximately 23 senior households are assisted every month in three mobile home parks located within the City.
Security Deposit and Eviction Prevention Program: This program has been administered through a contract with Community Action of Ventura County, a non-profit organization, since 2005 and has assisted 89 households. Of the total served, 40 households received Security Deposit assistance, and 49 households received Eviction Prevention assistance.
First-Time Homebuyer Program: This program provides funding to first-time homebuyers in order to enable them to afford homeownership. To date, a total of 148 first-time homeowners have been assisted.
Home Rehabilitation Loan Program: This program provides low interest deferred loans to homeowners to provide for health and safety related home repairs. Since 1981, the Agency has coordinated over 725 home rehabilitation loans.
Affordable Housing Program: To date, the Agency has created 2,025 affordable housing units (both rental and for-sale units), with another 320 units approved but unbuilt.

It is estimated that the Agency's activities have created approximately 10,000 employment opportunities in Simi Valley.

Budget and Funding

Based upon the Agency's most recent budget, the Agency funded approximately $3.9 million in redevelopment projects and activities on an annual basis. These projects and activities range from streets and roads rehabilitation and sewer replacement to facade renovations and the planned Under One Roof project.

Dissolution eliminated funding for these and other such projects. Additionally, all economic development activities, including the Shop Simi Valley First program, City marketing and economic development efforts, and support to the Simi Valley Chamber of Commerce, were funded through the Agency. If they continue, these programs and projects will become the financial responsibility of the City of Simi Valley General Fund.

City of Simi Valley, CA

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