THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF ,

FIVE-YEAR IMPLEMENTATION PLAN [HEALTH & SAFETY CODE SECTION 33490] (FY2000 – FY2004)

FOR

BEACON STREET REDEVELOPMENT PROJECT

MARCH 15, 2001

I. BACKGROUND AND INTRODUCTION

The Beacon Street Redevelopment Project is located in the community of San Pedro, situated between the Palos Verdes hills and the main channel of the Los Angeles Harbor. The Los Angeles Harbor is the third largest international shipping port and container cargo terminal in the world (after Singapore and Hong Kong), currently moving 7.1 million cargo containers annually. The 60-acre Project Area encompasses sixteen (16) blocks generally bounded by the Southern Pacific Railroad right-of-way along Harbor Boulevard on the east, Seventh and Fifth Streets on the south, Centre and Mesa Streets on the west and Second and Third Streets on the north. The project area’s topography gently slopes downward from its western boundary at Mesa Street, approximately 80 feet above sea level, to its eastern border along Harbor Boulevard, about 15 feet above sea level.

The Redevelopment Project was initially adopted by the on April 21, 1969 to reverse the “skid row” type conditions of a physically blighted and economically depressed seaport town. The once thriving maritime commerce in San Pedro had declined dramatically after World War II. In 1969, Beacon Street was a deteriorated slum. Streets were dotted with vacant, boarded-up stores. The majority of remaining businesses were pawnshops, transient hotels, bars, and liquor stores. There were inadequate affordable housing opportunities for low- and moderate-income families. Port-related commerce was at a minimum and the waterfront was not being utilized to its potential. In a 1968 structural survey, 92 percent of the 217 buildings within the project area were determined to be structurally substandard and beyond rehabilitation.

The Community Redevelopment Agency was called upon to eliminate blight through land assembly, foster new economic growth both locally and overseas and implement specific roadway and sidewalk improvements in order to create a new business and civic center environment that would promote tourism and

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 1 benefit from waterfront activities. A total of 209 individually owned parcels were acquired for redevelopment activities. The Plan was amended on February 22, 1971; August 29, 1980; and December 17, 1986.

Over the years, a San Pedro Community Development Advisory Committee (CDAC) had been established by the local Councilperson to provide input and guidance, particularly to residential relocation and replacement housing activities of the Agency. The CDAC is called upon when needed by the local Council person.

II. SPECIFIC GOALS AND OBJECTIVES OF THE AGENCY FOR THE PROJECT AREA AND HOW THEY WILL HELP TO ELIMINATE BLIGHT IN THE PROJECT AREA

A. Redevelopment Plan Goals

Identified below are the goals and objectives of the Beacon Street Redevelopment Plan which provide the basis in developing the Annual Budget and Work Program.

1. The elimination and prevention of the spread of blight and deterioration and the renewal, redevelopment, and restoration of the project to the extent permitted by law and specified in the Redevelopment Plan.

2. The removal of structurally substandard buildings, to permit the return of the Project area land to economic use and new construction.

3. The elimination of certain environmental deficiencies, including among others, inadequate street layout; overcrowding or improper location of structures on land; conversions to incompatible types of uses, obsolete building types; detrimental land uses or conditions, such as incompatible uses, and structures in mixed use; unsafe, congested, poorly designed, or otherwise deficient streets; inadequate public utilities or community facilities contributing to unsatisfactory living conditions or economic decline, and other equally significant environmental deficiencies.

4. The provision of land for needed public facilities within a proposed Civic Center area.

5. The achievement of changes in land use through the development of a new pedestrian connection between the Central Business District and the waterfront and the further provision for new water oriented commercial development in the Project area.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 2

6. The removal of impediments to land disposition and development through the assembly of land into reasonably sized and shaped parcels served by an improved street system and improved public facilities.

7. The achievement of an environment reflecting a high level of concern for architectural and urban design principles.

8. The expansion of employment opportunities in the Community.

9. The creation of new sites for residential development and the provision of a substantial number of housing units for families with low to moderate incomes.

B. How the Goals and Objectives Will Help to Eliminate Blight

The enumerated redevelopment goals established in 1969 continue to be applicable today, more than 30 years later. Redevelopment efforts have produced affordable housing for very low-, low- and moderate-income families, removal of structurally sub-standard buildings, changes in land use to encourage new port related commercial uses, provision of land for needed public facilities, and expansion of employment opportunities. Redevelopment activities have transformed the once physically and economically deteriorated, high-crime area of San Pedro into a modern downtown community with the potential to become an upscale, regional tourist and visitor destination.

III. SUMMARY OF PAST ACCOMPLISHMENTS

A. Summary of Accomplishments from 1969 to the Present

1. Housing

a. New Construction

To date, a total of 303 rental housing units have been developed with Agency assistance, all of which are affordable to low- and moderate-income Individuals. These consist of Harbor Towers, 180 units affordable to low-income seniors; Verdes del Oriente, 113 units available to low- and moderate-income families and New Hope Courtyard Apartments, 10 units affordable to very low-, low- and moderate-income persons and designed to accommodate physically handicapped or critically ill persons with AIDS.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 3 Project New Hope is located outside of the Project area at 1124 S. Palos Verdes Street in San Pedro.

b. Residential Rehabilitation Outside the Project Area. The Agency assisted in the conversion of the Don Hotel located at 105 East “I” Street in Wilmington. This 127 room residential hotel was converted into 57 one-bedroom units affordable to very low-income senior citizens.

2. Public Improvements and Open Space

Third, Fifth, Sixth and Centre Streets and Harbor Boulevard were widened and improved to provide an adequate street layout for increased commercial growth and development. Fifth Street was realigned and Sixth Street was reconstructed to enhance pedestrian use. New street lighting, street trees and storm drains were installed throughout the Project area.

Open space improvements include the John S. Gibson, Jr. Park, American Merchant Marine Veterans Memorial and a landscaped public plaza lined with shade trees adjacent to San Pedro City Hall.

3. Commercial Development and Government Facilities

More than 580,000 square feet of commercial and port-related office space has been developed, including the 122,000 square foot Port of Los Angeles Administrative Office Building at 425 S. Palos Verdes Street and 29,500 square foot Port of LA Plaza and World Tot Childcare Center at 100 W. Fifth Street. Major redevelopment accomplishments have also included the 232-room Sheraton San Pedro Peninsula Hotel and the 275,000 square foot Pacific Place office building and its adjacent 785-space parking structure. The attached Development Status map identifies and locates commercial office and retail developments completed since inception of the Project.

4. Historic Preservation of Benefit to Downtown San Pedro

In an effort to enhance the cultural diversity of the San Pedro community and reinvigorate its Downtown retail corridors along Fifth and Sixth Streets, the Agency completed acquisition, with federal Community Development Block Grant (CDBG) funds, of two properties containing architecturally and historically significant structures. These properties are located a very short distance outside of the project area and are significant because they contribute to the San Pedro Commercial District, an area eligible for listing in the National Register of Historic Places. They were later

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 4 conveyed to the City of Los Angeles for renovation, operation and cultural programming.

a. The Warner Grand Theater, located at 478 West Sixth Street, was built in 1931 by Warner Brothers Pictures in the tradition of grand movie palaces of its day. It is one of the last remaining examples of a neighborhood picture palace containing 18,750 square feet with a fifty-foot high ceiling. It was declared a cultural historic monument by the City in 1982 and in January 1999, it was placed on the National Register of Historic Places. The Agency purchased the historic property in 1996 under the direction of the City Council for $1.12 million utilizing an allocation of CDBG funds. The Agency later conveyed the 1,562-seat theater to the City Cultural Affairs Department for extensive rehabilitation to meet current building and safety code requirements.

b. The Croatian Cultural Center, located at 643 South Pacific Avenue, is currently undergoing major seismic, ADA compliance and building code renovation by the City Department of General Services. In March 1997, the City Council allocated $600,000 of CDBG funds for the acquisition and rehabilitation of the Croatian Cultural Center. The Agency acquired the 19,500 square foot property for $421,798 on behalf of the City’s Cultural Affairs Department. The remaining funds of $178,202 were transferred to the Department of General Services for the building’s rehabilitation. The architecturally ornate former Citibank building is being refurbished to include a second level mezzanine.

5. Transportation

To meet additional parking needs as a result of increased patronage to the above mentioned cultural facilities, the Agency completed development of a 50 space surface parking facility at the intersection of Sixth and Mesa Streets, owned by the City of Los Angeles, and located outside of the Beacon Street Project Area. The artistically designed public parking lot with sidewalk oriented community space and information kiosk complements the many art galleries, retail, boutique and coffee shops along Sixth and Seventh Streets in the adjacent retail district.

B. Summary of Progress Under the Previous Five-Year Implementation Plan (adopted August 18, 1994; amended May 4, 1995; effective FY1995 – FY1999)

A total of $12,486,203 was actually expended during the previous Five Year Plan period for the following activities:

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 5

1. Construction of Housing Units for Very Low-, Low- and Moderate Income Households

The projects listed below were carried out during the previous Five Year Plan reporting period to meet state mandated low- and moderate-housing set aside requirements utilizing Beacon Street Housing Trust Funds. It was anticipated that Agency staff labor and other related costs would be expended to produce at least ten new units affordable to very low-, low- and moderate-income households. There are no vacant properties remaining within the project area designated for residential use or available for residential development. Therefore, the following Agency assisted residential developments, located outside of the project area, were undertaken:

a. New Hope Courtyard Apartments (aka Project New Hope)

New Hope Courtyard Apartments, located at 1124 South Palos Verdes Street, was completed in 1997 and provided 10 units affordable to very low- and moderate-income persons who are physically disabled and/or afflicted with AIDS. The project is fully occupied and provides six 2- bedroom and four 1-bedroom floor plans with 22 parking spaces. The Agency assisted in the acquisition and provided development “gap” financing. Total development cost was approximately $1.9 million derived from the following revenue sources: $352,958 from Los Angeles Housing Department; $1,200,000 from the Agency derived from the Beacon Street Housing Trust Fund ($578,300); Los Angeles Housing Harbor Industrial Center Trust Fund ($140,500); Bunker Hill Housing Trust Fund ($478,242); and $350,000 from the Developer. During the previous Five Year Plan period, $685,893 had been expended by the Agency. The Los Angeles Coastal Commission required full subterranean parking for the 22 spaces which caused a substantial increase in development costs. The Project was developed by Project New Hope and the Episcopal Church of the Diocese of Los Angeles.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 6 b. Acquisition of the La Salle and West SRO Hotels

Although not specifically identified in the previous (1994) Five Year Plan, the Agency acquired the La Salle and West Hotels, two Single Room Occupancy (SRO) hotel properties located at 253-257 W. 7th Street and 237-245 W. 7th Street respectively, across the street from the Beacon Street Redevelopment Project. The La Salle has 108 SRO units with commercial office space on the ground level and the West Hotel has 19 vacant SRO units and a commercial restaurant and bakery. The La Salle Hotel was acquired for $1,456,764 derived from $787,180 in Federal Home Funds and $669,584 of Los Angeles Harbor Housing Trust Funds. The Agency appropriated $712,120 of Beacon Street Housing Trust Funds for the West Hotel, of which $550,442 had been expended for acquisition and related costs during the previous Five Year Plan period.

These properties were purchased in anticipation of the proposed Regal Cinemas complex being developed on Parcel H-2, across the street within the project area, and in an effort to help stabilize the Downtown area by coordinating the development of these three properties. The SRO hotels are maintained for the Agency by Barker Management Company and the Agency has been negotiating with Centre Street Development Partners/Selleck Properties for re-use of both SRO hotels and development of the H-2 Parcel.

c. Rehabilitation of the Don Residential Hotel in Wilmington

The Don Hotel, located at 105 E. “I” Street in Wilmington, was built in 1929. This 4-story, mixed use building contained 127 residential hotel rooms (of which only 20 rooms had been occupied at the time of the Agency’s assistance) and 20,736 square feet of ground floor commercial space. The developer, 105 E. “I” Street, L.P., has converted the original 127 SRO rooms into 57 one-bedroom apartments affordable to very low-income elderly persons. Renovation was completed in August 1999 utilizing $2,788,135 in Agency assistance derived from the following sources: $1,517,953 in HOME Fund; $475,017 in Beacon Street Housing Trust Fund; $795,165 in Los Angeles Harbor Housing Trust Fund. The Don Hotel was fully occupied by December 1999. A furniture store and restaurant occupying 11,620 square feet of ground floor space have been retained. The remaining 9,116 square feet of ground floor space has been converted to community-serving social and recreational facilities and

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 7 tenant-serving common areas. Total development cost was approximately $6 million of which, $475,017 of Beacon Street Housing Trust Funds had been expended during the previous Five Year Plan period. This project was also a recipient of federal low income housing tax credits.

2. Expansion of the Port of Los Angeles (POLA) Administrative Headquarters

The previous Five-Year Implementation Plan anticipated an expenditure of $108,000, of which $3,470 was expended, for staff labor and legal costs associated with preparation of a development agreement for the expansion of POLA facilities onto Parcel J-1 (3rd and Palos Verdes Streets). However, no activity has taken place related to the subject expansion.

3. Regal Cinema

The previous Five-Year Plan anticipated an expenditure of $122,000 for Agency labor costs associated with facilitating new office development on Parcel H-2. No funds were expended for this use. However, Agency efforts pursued a retail development proposal instead.

In 1997, working closely with the Office of the Fifteenth Council District and the Mayor’s Office of Economic Development, CRA staff commenced negotiations with Regal Cinema, a Tennessee based theater chain, for development of a 12-screen movie theater and off site parking on Agency-owned Parcel H-2. In 1998, the Los Angeles City Council approved an allocation of CDBG funds and Section 108 Loan assistance to facilitate the development. In October 1999 Regal abandoned its development plans for Parcel H-2. The movie theater industry was experiencing an over- saturation of theater developments across the nation. Subsequently, Regal encountered financial difficulties. In January 2000, staff issued a Request for Qualifications to solicit a replacement developer for Parcel H-2 and for the La Salle and West SRO Hotels. The Agency entered into 180-day exclusive negotiations with Centre St. Development/Selleck Properties on June 14, 2000. These negotiations expired on December 14, 2000. A total of $731,671 was expended during the previous Five Year Plan period.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 8 4. Development of Mesa Street Public Parking Lot

In 1998, the Agency completed development of a 50-space surface parking facility at the intersection of Sixth and Mesa Streets in cooperation with City of Los Angeles Department of Transportation (LADOT). The artistically designed public parking lot complements the many art galleries, boutiques and coffee shops along Sixth and Seventh Streets in the adjacent retail district. The Agency expended a total of $2,415,252 during the previous Five Year Plan period for site acquisition, demolition, relocation, design and construction of this parking facility. LADOT had reimbursed the Agency $600,000 towards the cost of the Mesa Street parking lot improvements, and through a Cooperation Agreement, owns and operates the public parking lot.

5. Sheraton LA Harbor Hotel

In 1994, the Agency approved the sale of the Sheraton LA Harbor Hotel (previously known as the Sheraton San Pedro Peninsula), to a new owner. Although not specifically mentioned in the previous Five Year Plan, $63,205 was expended to monitor the operation of the 232-room hotel located at 601 S. Palos Verdes Street between Sixth and Seventh Streets, monitor payments by the previous owner, Goldrich and Kest, on a $2 million land sale note held by the Agency and repayment of $500,000 in operating deficit loans.

6. Project Financing

The previous Five Year Plan anticipated $2,182,000 of project financing costs, primarily debt service on the Beacon Street Series A bonds. Actual expenditures during this period were $6,376,000. The $4,194,000 variance is primarily due to the unanticipated defeasance of the Series A bonds, which was accomplished in FY99 with the issuance of the Series A Refunding bonds. The defeasance resulted in $416,000 total debt service savings.

7. Project Administration

The Previous Five-Year Plan anticipated approximately $2.0 million for program delivery, administrative support and technical staff review of private development proposal requests, preparation of federal or local grant applications, monitoring of previously approved development Agreements, environmental review pursuant to CEQA, site office facility costs, maintenance and rental of Agency-owned properties, community meetings, and general legal services.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 9 Listed below are objectives that were not specifically identified in the previous Five-Year Plan, but $989,176 was expended for general administration and $135,132 for response to development opportunities during this period, all related to carrying out the goals of the Redevelopment Plan.

a. Agency efforts to Re-Use the Vacant Pacific Trade Center Office Building

The Pacific Trade Center is an eleven story, 110,000 square foot office building located at 255 West Fifth Street (at Palos Verdes Street) which has been vacant for more than ten years. The building was constructed in the 1960’s and was the former headquarters for Logicon, Inc. a software development company that moved to new Class A office space at Pacific Place (222 W. Sixth Street).

(1) Agency staff supported a proposal by the Harbor Watts Economic Development Corporation (HWEDC) to re- use the building to serve as business “incubator” space for import-export and foreign trade enterprises, and office space for POLA-sponsored business and trade outreach programs. The property owner continues to market the building to attract these types of tenants.

(2) In response to the Metropolitan Transportation Authority (MTA) 1998 Call for Projects, the Agency submitted a grant application for development of the San Pedro Transit Center at the Pacific Trade Center site. In 1999, the Agency was awarded a $2.439 million grant allocation for the development of six bus bays, retail space and a public parking facility. The grant allocation was intended to serve as an incentive and joint development opportunity to redevelop the property and fulfill a public transportation need. The proposed Transit Center would provide a central transfer point for riders of local and commuter buses serving the South Bay, West Los Angeles and operated by MTA, LADOT (DASH, Commuter Express service), City of Long Beach Transit, and City of Torrance Bus Lines and possibly Palos Verdes community bus services. Agency staff has been working with the current property owner, interested buyers of the property and representatives of interested office tenants to incorporate the Transit Center component in their plans.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 10 b. Agency Acquisition Assistance for Cultural Facilities Development outside the Project Area

In an effort to enhance the cultural diversity of the San Pedro community and reinvigorate Downtown San Pedro’s retail corridors along Fifth and Sixth Streets, the Agency completed acquisition of two properties described below. These properties contained architecturally and historically significant structures and were acquired with an allocation of federal Community Development Block Grant (CDBG) funds. These properties are located outside of the project area and were later conveyed to the City of Los Angeles for renovation, operation and cultural programming.

(1) The Warner Grand Theater, located at 478 West Sixth Street, was acquired by the Agency in 1996 under the direction of the City Council for $1.12 million utilizing an allocation of CDBG funds. The Agency later conveyed the 1,562-seat theater to the City Cultural Affairs Department for extensive rehabilitation to meet current building and safety code requirements. Backstage dressing rooms, restrooms and showers were constructed to facilitate performances by small and medium sized professional companies. The underutilized movie house was transformed into a performing arts venue for the Los Angeles Philharmonic Orchestra, Moscow Chamber Orchestra and other notable performing groups. During the previous Five-Year Plan, a total of $1,344,622 was expended on this project.

(2) The Croatian Cultural Center, located at 643 South Pacific Avenue, was acquired by the Agency in 1997 under the direction of the City Council with a $600,000 allocation of CDBG funds. The Agency acquired the 19,500 square foot property for $421,798 on behalf of the City’s Cultural Affairs Department. The remaining funds of $178,202 were transferred to the Department of General Services for the building’s rehabilitation. The facility has undergone major seismic, ADA compliance and building code renovation. The architecturally ornate, former Citibank building is being refurbished to include a second level mezzanine. The original 5,400 square feet has been enlarged to approximately 8,000 square feet to accommodate a community and historic archival center for the Croatian Cultural Center of , a local non-profit organization. The facility will provide a home for Croatian art and cultural programs and a library for Croatian literature, art

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 11 and music. Renovation work is anticipated to be completed by April 2001. During the previous Five-Year Plan, a total of $426,255 was expended on this project.

c. Pearls of Los Angeles Tourism Study and Master Plan

In an effort to increase business for Downtown San Pedro, the Agency submitted a grant application and in 1998 was awarded a U.S. Department of Commerce Economic Development Administration (EDA) grant of $150,000 to retain a consultant to examine physical development constraints in promoting tourism in five communities (namely Chinatown, Little Tokyo, Olvera Street, Watts and San Pedro), considered the Pearls of Los Angeles (LA). In April 2000, the Agency awarded a $77,500 contract to Economic Research Associates (ERA) and Barrio Planners to commence this analysis. The firm is subcontracting with a designated non-profit organization from each community to gather input, inventory and map points of interest and public transportation access to visitor destination points. The San Pedro Chamber of Commerce is assisting ERA in the development of this Study. It is anticipated that a Comprehensive Cultural Tourism Master Plan will be completed in FY01, intended to link and cross promote the five Pearl communities, as well as develop a strategy to facilitate tourism from Downtown Los Angeles to the Harbor in San Pedro and to Watts. Beacon Street Tax Increment ($12,500 and labor) will be used to meet Beacon Street’s portion of the required EDA funding match. During the previous Five-Year Plan period, $1,791 was expended on this effort.

d. Expansion Study of the Beacon Street Redevelopment Project

In response to community requests, Agency staff commenced a study to investigate the possible expansion of the Beacon Street Project Area boundaries to address underutilized and deteriorated portions of the Pacific Avenue Corridor between O’Farrell and 24th Streets. In 1997, the City Council provided approximately $500,000 of CDBG funding to conduct a planning and feasibility analysis for establishing a new redevelopment project area, focusing on the Pacific Avenue Corridor, that would abut the existing Beacon Street Redevelopment Project Area. The proposed

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 12 Pacific Corridor Redevelopment Project is underway as a separate objective. During the previous Five Year Plan period, $941,329 derived from CDBG and CRA Special Revenue funds had been expended for this effort. The plan is expected to be adopted in FY02.

IV. SPECIFIC PROJECTS AND EXPENDITURES PROPOSED TO BE MADE DURING THE NEXT FIVE YEARS AND HOW THEY WILL HELP TO ELIMINATE BLIGHT IN THE PROJECT AREA

The FY2000-2004 Five Year Implementation Plan for the Beacon Street Redevelopment Project will continue to carry out activities to promote San Pedro as a regional destination point for tourism and business. Resource projection estimated for the next Five Year Plan period is approximately $10,065,100 which assumes $1,370,400 million in proceeds from a tax allocation bond anticipated to be issued in FY2004.

A. West Hotel $103,000

1. Project and Expenditures

The Agency will continue to fund property management activities provided by Barker Management related to maintaining the vacant 19 room West Hotel located at 237-245 W. 7th St. in San Pedro, and an adjoining 30 space surface parking lot. Rent is collected from a restaurant and bakery warehouse tenant located on the ground floor. The property is envisioned to be sold. Future commercial or mixed-use development of this property will be coordinated with the future development of the LaSalle Hotel and Parcel H-2 properties. The total projected expenditure for this program is approximately $103,000 during FY2000-2004.

2. Elimination of Blight

Re/use or demolition of this property will enhance the redevelopment efforts of the Beacon Street Project Area to reinvigorate Downtown San Pedro by providing a cleaner and aesthetically pleasing environment and facilitating new development on this and adjacent sites.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 13 B. La Salle Hotel $306,100

1. Project and Expenditures

The Agency will continue to fund property management activities provided by Barker Management related to maintaining the La Salle Hotel located at 253-257 W. 7th St. in San Pedro. The La Salle has 108 SRO units, 37 of which are occupied, and one occupied business space. General maintenance and repairs to the building are paid from rental income received. However, there is insufficient rental income to pay for all these costs and for any unanticipated repairs. Beacon Street Housing Trust Funds are allocated to supplement this activity. The property is envisioned to be sold. Future commercial and/or residential development of this property will be coordinated with the future development of the West Hotel and Parcel H-2 properties. Beacon Street and L.A. Harbor Housing Trust Funds are anticipated to provide relocation assistance to the remaining SRO residents. The total projected expenditure for this program is approximately $306,100 during FY2000-2004.

2. Elimination of Blight

Re/use or demolition of this property will enhance the redevelopment efforts of the Beacon Street Project Area to reinvigorate Downtown San Pedro by providing a cleaner and aesthetically pleasing environment and facilitating new development on this and adjacent sites.

C. Response to Housing Opportunities $820,700

1. Project and Expenditures

To ensure conformance with appropriate plans and requirements, Agency staff, beginning in FY02, will review residential and/or mixed-use building permit applications for proposals per CEQA and will complete any closeout activities required for previously completed residential projects. The Agency will also advocate development and provide financial incentives for the development of artist loft housing. The total projected expenditure for this program is approximately $820,700 during FY2000-2004 estimated to produce eight units affordable to very low-, low- and moderate- income households.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 14

2. Elimination of Blight

This objective aims to increase the supply and improve the quality of housing for all income and age groups through the creation of new sites for residential development.

D. Centre Street Mixed Use Development $2,139,400

1. Project and Expenditures

Agency efforts will continue to secure a replacement developer for Parcel H-2 (the former Regal Cinema site) and the La Salle and West SRO hotel properties owned by the Agency. In order to preserve the federal CDBG financing previously allocated (approximately $1,850,000) to the Regal Cinema development, Agency activities will include developer selection, completion of an agreement, environmental clearance, monitoring design and construction of a residential, commercial or mixed-use development that will promote patronage to Downtown San Pedro particularly during evenings and weekends. The total projected expenditure for this program is approximately $2,139,400 during FY2000-2004.

2. Elimination of Blight

This development will redevelop a parcel of land which has been vacant for more than 30 years and serve as a catalyst to revitalize Seventh Street, characterized by a number of vacant, older buildings and storefronts in need of revitalization.

E. San Pedro Transit Center and Retail Development $2,810,500

1. Project and Expenditures

Agency efforts will continue to identify an appropriate site in the San Pedro Downtown area for the development of an MTA funded ($2.439 million allocation) Transit Center that will accommodate up to six bus bays, 15,000 square feet of retail space and a 200-space public parking facility. Agency activities will include entering into agreements with an Owner Participant and MTA, environmental clearance, and monitoring design and construction of the San

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 15 Pedro Transit facility. The total projected expenditure for this program is approximately $2,810,500 during FY2000-2004.

2. Elimination of Blight

Coordination of transit systems and related development projects address the redevelopment purpose of improving circulation as well as seeking quality urban design. Development of the Transit Center with retail space will centralize bus service from six different transit operators, improve bus service, facilitate transfers, minimize bus and vehicular conflicts and attract new investment to a vacant or underutilized site.

F. Joint Development and/or Future Planning Coordination with Port of Los Angeles $500,000

1. Project and Expenditures

The Agency will implement activities that will improve access by the community to the waterfront and provide community participation in joint development opportunities. Agency planning efforts will coordinate future development to reinvigorate Old Downtown San Pedro and improve linkage to the World Cruise Ship Terminal, Ports O’ Call Village and 22nd Street industrial site, about to undergo major redevelopment by the Port of Los Angeles. Staff will pursue tenants for vacant office buildings that are related to employment opportunities generated from the Port of Los Angeles cargo expansion project. The Ports of Los Angeles and Long Beach plan to triple their cargo capacity from 7.1 million containers to 24.3 million by the year 2020.

2. Elimination of Blight

The result of this cooperative effort is intended to improve the public’s visual and physical access to the waterfront, increase tourism to the area, enhance the community’s historic maritime image as a regional destination and further enhance the unique character of San Pedro, promoting the re-use of vacant or underutilized older commercial buildings and storefronts whose present conditions contribute to existing blight.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 16 G. Pearls of Los Angeles Tourism Plan and Implementation $134,000

1. Project and Expenditure

Completion of a comprehensive Cultural Tourism Master Plan by ERA and Barrio Planners is anticipated in FY2001. Agency activities will include seeking funds to implement the study findings that will link and cross promote the communities of San Pedro, Watts, Chinatown, Little Tokyo and Olvera Street, identified as the “Pearls of LA.” The total expenditure for this program is approximately $134,000 during FY2000-2004.

2. Elimination of Blight

The result of this study is intended to increase tourism to the area and linkage to other points of interest in San Pedro which will increase retail patronage for Downtown San Pedro. Implementation of the Pearls of Los Angeles Tourism Plan will provide and serve the community’s needs and further enhance the unique character of San Pedro, promoting the re-use of vacant or underutilized older commercial buildings and storefronts whose present condition contribute to existing blight.

H. Commercial Incentives Program $500,000

1. Project and Expenditure

The Agency proposes to initiate a Commercial Incentives Program that will attract new businesses to San Pedro particularly tenants for the vacant storefronts along Fifth and Sixth Streets, and the vacant spaces at Pacific Trade Center and the Evergreen Office Building. This new program would be coordinated with the marketing efforts of the San Pedro Business Improvement District (BID), Chamber of Commerce, and joint development and planning efforts of the Port of Los Angeles. Agency assistance contemplated could provide grants or assistance for tenant improvements or exterior façade work.

2. Elimination of Blight

The provision of financial incentives to retain or expand businesses in the project Area is undertaken with the goal of retaining and creating jobs, while strengthening the area’s tax base and bringing commercial structures into compliance with current building codes and retail practices.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 17

I. Project Financing $2,022,600

1. Project and Expenditures

As of June 30, 1999, the principal balance on the Project’s Tax Allocation Bonds was $4,350,000. The final maturity date of the outstanding bonds will be in FY2015. The total projected expenditure during FY2000-FY2004 is $2,022,600 which includes $1,868,000 principal and interest and $154,600 for administrative costs associated with administering the project’s financial resources, including short and-long-term financial cash management, debt repayment, administration and repayment of outstanding tax allocation bonds and issuance and administration of debt instruments.

The last date for the Project to incur debt is January 1, 2004. Agency staff anticipates issuance of a tax allocation bond in FY2004 in which to provide additional resources to carry out activities identified in this Five Year Plan.

2. Elimination of Blight

The Agency is obligated to pay debt services cost related to debt incurred by the project in the form of tax allocation bonds and inter- Agency agreements. Administration of the project’s financial resources ensures that such resources are used in compliance with the Community Redevelopment Law and in furtherance of the physical and economic revitalization of the project area.

J. Project General $728,800

1. Project and Expenditure

Administering a redevelopment project entails Agency staff activities associated with formulating and carrying out the Annual Work Program and Budget, preparing reports, technical and legal review, property management and leasing, operation of the site office, responding to public inquiries and providing public information. Agency activities will also include efforts to promote San Pedro and the Agency’s revitalization efforts.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 18

2. Elimination of Blight

Administration of the Project ensures that redevelopment activities are carried out in compliance with the Community Redevelopment Law and in furtherance of the physical and economic revitalization of the project Area.

V. HOW GOALS, OBJECTIVES, PROJECTS AND EXPENDITURES WILL IMPLEMENT THE REQUIREMENTS OF HEALTH & SAFETY CODE SECTIONS 33334.2, 33334.4, 33334.6 AND 33413. [Section 33490(a)(1)]

A. Among the goals and objectives of the Agency, the provision of housing units for households with low- to moderate-incomes will implement the affordable housing requirements.

B. The development of New Artist Loft Housing with an estimated expenditure of $820,700 is estimated to produce at least 8 very low-, low- and moderate- income units. These 8 units are to be incorporated into the H-2 Parcel or outside of the Project area at the La Salle Hotel and will implement the affordable housing requirements.

C. The balance of the Project’s housing trust funds or $409,100 will be used to maintain and pay for property management expenses related to the La Salle and West Hotels located outside the Project Area. Beacon Street Housing Trust Fund and L.A. Harbor Housing Trust Fund are anticipated for relocation assistance to La Salle Hotel SRO residents which is pending redevelopment or re-use.

D. The goals and objectives, projects and expenditures will implement the affordable housing requirements of Sections 33334.2, 33334.4, 33334.6 and 33413 as follows:

· Increase, Improve and Expand the Supply of Low- and Moderate-Income Housing. [Section 33334.2 and 33334.6].

The housing to be developed as described above, plus debt service and administrative costs, will utilize approximately $1,230,500 in funds from the Beacon Street Low- and Moderate-Income Housing Trust Fund. All the housing will be subject to recorded covenants that will restrict the housing to low-, very low- or moderate-income persons or families at affordable rents for the longest feasible time but not less than 40 years, pursuant to the Agency's Housing Policy.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 19

· Proportion of Very Low-, Low- and Moderate-Income Housing. [Section 33334.4].

The Agency assisted housing units to be developed or rehabilitated will be affordable to the very low-, low- or moderate-income households in the following proportions: No less than 30% very low-income; no more than 30% moderate- income; and the balance very low- and low-income. This proportion of very low-, low- and moderate-income units exceeds the proportion of the total number of housing units needed for these income groups (which are not being provided by other governmental programs) bears to the total number of units needed for persons of very low-, low- and moderate- income in the City.

· Estimate of Housing Production Figures and Use of Low- and Moderate-Income Housing Fund [Section 33490(a)(2)].

The current estimated housing production figures and proposed uses of the Beacon Street Redevelopment Project Low- and Moderate-Income Housing Trust Fund are attached as Tables I and II.

· Replacement Housing [Section 33413(a)].

Section 33490(a)(3) requires that if the Implementation Plan contains a project that will result in the destruction or removal of dwelling units that will have to be replaced pursuant to subdivision (a) of Section 33413, the implementation plan shall identify proposed locations suitable for the required replacement dwelling units. The Agency is pursuing the development of sites outside of the Project Area, and, therefore does not anticipate that any low- or moderate-income dwelling units in the Beacon Street Redevelopment Project Area will be destroyed or removed from the low- and moderate-income housing market during the period of this Five-Year Implementation Plan.

· Inclusionary Housing [Section 33413(b)(4)].

Section 33413(b)(4) requires the Agency to adopt a plan to comply with the inclusionary housing requirements of Section 33413(b)(1) and (2).

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 20

Since adoption of the Redevelopment Plan, staff estimates that 293 new housing units have been constructed within the Project Area. All 293 units were developed through Agreements with the Agency and were deed and income restricted: 180 units are affordable to low-income seniors and 113 are affordable to low- and moderate-income families. None were developed by the private sector. The Inclusionary Housing section requires that 15% of the total new units built (44) be affordable to low- or moderate-income families of which not less than 40% of this designation or 18 units be affordable to very low-income households. This requirement has been exceeded by the Agency.

The Inclusionary Housing Plan follows.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 21 BEACON STREET REDEVELOPMENT PROJECT

INCLUSIONARY HOUSING PLAN California Health and Safety Code Section 33413(b)(4)

1. HOUSING PRODUCTION SINCE ADOPTION OF REDEVELOPMENT PLAN

A. Number of new or substantially rehabilitated residential units developed in the Project Area by public or private entities or persons other than the Agency since adoption of the Redevelopment Plan (At least 15% of total shall be available at affordable housing cost to persons and families of low- or moderate-income, of which not less than 40% shall be available to very low-income households):

Units Percentage Market Rate: -0- -0- Moderate-Income: 96 33% Low-Income: 197 67% Very Low-Income: -0- -0- TOTAL: 293 100%

B. Number of new or substantially rehabilitated residential units developed by the Agency (inside or outside the Project Area) since the adoption of the Redevelopment Plan (At least 30% of total shall be available at affordable housing cost to persons and families of low- or moderate-income, of which not less than 50% shall be available to very low-income households):

Units Percentage Market Rate: -0- -0- Moderate-Income: 96 26% Low-Income: 197 55% Very Low-Income: 67 19% TOTAL: 360 100%

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 22

2. ESTIMATES OF HOUSING PRODUCTION DURING THE NEXT 10 YEARS

A. Estimate of the number of new or substantially rehabilitated residential units to be developed in the Project Area by public or private entities or persons other than the Agency during the next 10-year period. (At least 15% of total shall be available at affordable housing cost to persons and families of low- or moderate-income, of which not less than 40% shall be available to very low- income households).

The Agency does not anticipate developing any affordable housing units within the Project Area.

B. Estimate of the number of new or substantially rehabilitated residential units to be developed by the Agency (inside or outside the Project Area) during the next 10-year period. (At least 30% of total shall be available at affordable housing cost to persons and families of low- or moderate-income, of which not less than 50% shall be available to very low-income households):

The Agency anticipates facilitating the development or rehabilitation of approximately 8 units of housing at the La Salle Hotel.

FY2000 - FY2004 FY2005 – FY2009

Units Percentage Units Percentage Market Rate: - 0 - 0 % -0- -0- Moderate-Income: 2 25% -0- -0- Low-Income: 2 25% -0- -0- Very Low-Income: 4 50% -0- -0- TOTAL: 8 100% -0- -0-

C. Estimate of the number of long-term affordability covenants on existing multifamily units, restricting the cost of renting or purchasing those units, that the Agency plans to purchase or otherwise acquire or cause by regulation or agreement during the next 10-year period (indicate if such units are located outside the Project Area):

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 23 FY2000 - FY2004 FY2005 - FY2009

Units Units Moderate Income: 0 0 Low-Income: 0 0 Very Low-Income: 0 0 TOTAL: 0 0

3. ESTIMATES OF HOUSING PRODUCTION DURING THE REMAINING PERIOD OF THIS PLAN

A. Estimate of the number of new or substantially rehabilitated residential units to be developed in the Project Area by public or private entities or persons other than the Agency during the remaining period of the Redevelopment Plan. (At least 15% of total shall be available at affordable housing cost to persons and families of low- or moderate-income, of which not less than 40% shall be available to very low-income households):

July 1, 1999 to January 20, 2020

Units Percentage Market Rate: -0- -0- Moderate-Income: -0- -0- Low-Income: -0- -0- Very Low-Income: -0- -0- TOTAL: -0- -0-

B. Estimate of the number of new or substantially rehabilitated residential units to be developed by the Agency (inside or outside the Project Area) during the remaining period of the Redevelopment Plan. (At least 30% of total shall be available at affordable housing cost to persons and families of low- or moderate-income, of which not less than 50% shall be available to very low- income households):

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 24

July 1, 1999 to January 20, 2020

Units Percentage Market Rate: -0- -0- Moderate-Income: 2 25% Low-Income: 2 25% Very Low-Income: 4 50% TOTAL: 8 100%

C. Estimate of the number of long-term affordability covenants on existing multifamily units, restricting the cost of renting or purchasing those units, that the Agency plans to purchase or otherwise acquire or cause by regulation or agreement during the remaining period of the Redevelopment Plan (indicate if such units are located outside the Project Area):

July 1, 1999 to January 20, 2020

Units Moderate Income: 0 Low-Income: 0 Very Low-Income: 0 TOTAL: 0

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 25 TABLE I ANNUAL HOUSING TRUST FUND PROGRAM Section 33490 (a)(2)

HOUSING PRODUCTION 2000 2001 2002 2003 2004

Housing Units to be 0 0 0 0 8 developed

Housing Units to be 0 0 0 0 0 substantially rehabilitated

Housing Units to be price 0 0 0 0 0 restricted thru acquisition of covenants (existing housing)

Housing Units to be 0 0 0 0 0 otherwise assisted by the CRA e.g., Rent Subsidies

Housing Units to be 0 0 0 0 0 destroyed as a result of redevelopment

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 26 TABLE II ANNUAL HOUSING TRUST FUND PROGRAM SECTION 33490 (a) (2)

LOW- AND MODERATE- INCOME HOUSING FUND 2000 2001 2002 2003 2004

STARTING BALANCE $33,100 $164,400 $135,800 $107,400 $290,200

$132,000 $172,700 $179,400 $182,800 $530,500 Annual Deposits – Total

(A) 20% Tax Increment $126,900 $165,700 $170,900 $176,300 $523,900 Deposits

(B) Interest/Other Income $5,100 $7,000 $8,500 $6,500 $6,600

Total Available $165,100 $337,100 $315,200 $290,200 $820,700

Funds to be spent or 2000 2001 2002 2003 2004 committed annually (A or B)

(A) To pay Debt Service on 0 0 0 0 0 Bonds Used for Affordable Housing*

(B) For Affordable Housing $700 $201,300 $207,800 0 $820,700

Funds to be transferred to 0 0 0 0 0 Housing Authority or Another Public Entity

Funds to be accrued for $164,400 $135,800 $107,400 $290,200 0 specific projects**

* FY04 deposit includes $342,600 set aside from the proceeds of a new tax allocation bond issue.

Beacon Street Redevelopment Project March 15, 2001 Proposed Five-Year Implementation Plan (FY2000-2004) Page 27