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Agency N~e: ACHIEVEMENT E. MPL. E Proiect Type: NEW CONSTRUCTION- OWNER OCCUPIED Pena Adobe Redevelopment Agency Contact: Martina Besiow (831) 453-9623 Project Name: Paradise Avenue Project Description During FY 2000-01, construction of 12 homes on Paradise Avenue was completed. Apex Enterprises, which specializes in community self-help projects, was the developer, assisting 12 families in the construction of their new homes. The homes took 10 months to build. The families' work on the homes was converted into "sweat equity" valued at $15,000. The first mortgage was fi.om CHFA. Families were also given an affordable second mortgage. The second and tkird mortgage loans were funded by LMIHF and HOME funds. History The City of Pena Adobe snuggled for several years over what to do about the Paradise Avenue area. The City tried to encourage development in the area by rezoning a large portion of the area for multi-family use, and twice attempted to create improvement districts. None of these efforts were successful and the area continued to deteriorate, sparking growing concern among city officials and residents. At the point that the Redevelopment Agency became involved, there was sigrfificant ill will between the residents of the Paradise Avenue area and the City. The Pena Adobe Community and Economic Development Agency introduced the project in 1995 with discussions of how the Agency could become involved in improving the blighted residential neighborhood centering on Paradise Avenue. This area is in the core area of town and was developed with disproportionately narrow, deep lots, based on a subdivision plat laid in 1920. Residents built their homes on the street fi.ontages of Sunset and Paradise Avenues leaving large back-lot areas that were landlocked and unsuitable for development, having no access to either Avenue. The Agency worked with 24 property owners to purchase portions of their properties. Over several years, the Agency purchased enough property to complete a tract map creating access and lots for building. Other non-profits have created an additional twelve affordable homes. Agency Role The Agency played the central role. The Paradise Avenue Project is a classic example of successful redevelopment. All elements of blight were present: irregular, land-locked parcels without access; numerous property owners; development that lagged behind that of the surrounding municipal property; high development cost due to need for installation of street improvements, utilities, a storm drain system, and undergrounding of a flood control creek; and a low-income neighborhood in which property sale prices would not support high development costs. The Agency determined that the best development for the area would be single-family owner-occupied homes. The Agency bonded its tax increment to fund the off-site improvements. A tract map was completed providing for the installation of the street improvements, utilities, storm di-ainage, and the undergrounding of Javier Creek. These improvements cost the Agency approximately $1.5 million. In lieu of using the eminent domain process, the Agency negotiated with 22 property owners to purchase portions of their property, allowing for access to the landlocked parcels. This helped foster trust and good will during the course of the negotiations. The Project got undem'ay once sufficient property was purchased. California Redevelopment Agci, cies- Fiscal Year 2000-2001 HCD-C (7/1/01) Page 9 of 8