090704 Jt PH Adoption Amend Merger SA Redvlp Proj Areas

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6. What areas are determined to have the greatest need? All of the Project Areas have needs. How the Agency addresses those needs in the near term is defined in the Agency's Five -Year Implementation Plan. Also, Agency funding and projects are determined annually as part of the City's budgeting process. 7. Explain the 5 -year plan. The Agency adopts an Implementation Plan every five years for the upcoming five -year period. The Implementation Plan identifies the Agency's near -term goals, objectives, projects, programs and expenditures. It is during the public review and hearing process in which the Agency's activities are identified. 8. Six areas have been defined with projects to be redeveloped, so at the public hearing would all of us be given a list of projects? And, do we get to vote on which projects get approved? The Public Hearing is only for the Merger, or in other words the ability to combine tax increment from the Project Areas and allocate revenues anywhere within the Merged Project Area. The Merger does change the projects that the Agency is currently proposing to undertake. There is not a list of projects that are proposed to be undertaken other than what is identified in the Implementation Plan, which is programmatic in nature. The Agency will be conducting a community outreach effort to prioritize projects as part of the City's application for Federal grants. This process, which begins this year, will also be utilized to help define the projects and programs to be incorporated in the upcoming five -year Implementation Plan. There is not a vote on the proposed projects but the Implementation Plan will be adopted at the close of a public hearing which will be posted and noticed provided in the newspaper three weeks in advance of the hearing. 9. Can any one project borrow from another project? Is there a cap? When projects are merged the increment is combined. The Agency does not have to pay back increment generated from one project that is spent in another. In other words, tax increment can be spent anywhere within the Merged Project Area without borrowing the money. There is not a cap on the amount of money that be utilized from one project area or allocated to another project area. However, any existing debt or obligations in any one - project area must be met before money from that project area can be spent in another. It does not mean that all the debt must be repaid but that on -going obligations (debt payments) are made before money from a project area can be allocated to another. Supplement to the Report to the City Council for the Keyser Marston Associates, Inc. Merger of the Santa Ana Redevelopment Projec"EXHIBIT 4 Page 9 PA04080105NTA:CK:Ip 19090.003,007/08 /26/04 4 -27