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REGULAR MEETING Thursday, June 1, 2017 10:00 a.m. – 12:00 p.m. SCAG Main Office 818 W. 7th Street, 12th Floor Policy Committee Room B Los Angeles, CA 90017 (213) 236-1800 If members of the public wish to review the attachments or have any questions on any of the agenda items, please contact Tess Rey-Chaput at (213) 236-1908 or via email at [email protected]. Agendas and Minutes for the CEHD Committee are also available at: http://www.scag.ca.gov/committees/Pages/default.aspx SCAG, in accordance with the Americans with Disabilities Act (ADA), will accommodate persons who require a modification of accommodation in order to participate in this meeting. SCAG is also committed to helping people with limited proficiency in the English language access the agency’s essential public information and services. You can request such assistance by calling (213) 236-1908. We request at least 72 hours notice to provide reasonable accommodations and will make every effort to arrange for assistance as soon as possible. COMMUNITY, ECONOMIC & HUMAN DEVELOPMENT COMMITTEE
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REGULAR MEETING COMMUNITY ECONOMIC HUMAN · PDF fileCommunity, Economic, and Human Development Committee Members – June 2017 Members Representing *Regional Council Member 29. Hon.

Mar 06, 2018

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Page 1: REGULAR MEETING COMMUNITY ECONOMIC HUMAN · PDF fileCommunity, Economic, and Human Development Committee Members – June 2017 Members Representing *Regional Council Member 29. Hon.

 

REGULAR MEETING Thursday, June 1, 2017 10:00 a.m. – 12:00 p.m. SCAG Main Office 818 W. 7th Street, 12th Floor Policy Committee Room B Los Angeles, CA 90017 (213) 236-1800 If members of the public wish to review the attachments or have any questions on any of the agenda items, please contact Tess Rey-Chaput at (213) 236-1908 or via email at [email protected]. Agendas and Minutes for the CEHD Committee are also available at: http://www.scag.ca.gov/committees/Pages/default.aspx SCAG, in accordance with the Americans with Disabilities Act (ADA), will accommodate persons who require a modification of accommodation in order to participate in this meeting. SCAG is also committed to helping people with limited proficiency in the English language access the agency’s essential public information and services. You can request such assistance by calling (213) 236-1908. We request at least 72 hours notice to provide reasonable accommodations and will make every effort to arrange for assistance as soon as possible. 

COMMUNITY, ECONOMIC & HUMAN DEVELOPMENT COMMITTEE

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Community, Economic, and Human Development Committee Members – June 2017

Members Representing

Chair* 1. Hon. Rex Richardson Long Beach District 29

Vice Chair* 2. Hon. Vartan Gharpetian Glendale District 42

3. Hon. Al Austin, II Long Beach GCCOG

4. Hon. Stacy Berry Cypress OCCOG

5. Hon. Wendy Bucknum Mission Viejo OCCOG

6. Hon. Juan Carrillo Palmdale North L.A. County

7. Hon. Jeffrey Cooper Culver City WSCCOG

8. Hon. Rose Espinoza La Habra OCCOG

9. Hon. Kerry Ferguson San Juan Capistrano OCCOG

* 10. Hon. Margaret E. Finlay Duarte District 35

11. Hon. Debbie Franklin Banning WRCOG

12. Hon. Julie Hackbarth-McIntyre Barstow SANBAG

13. Hon. Tom Hansen Paramount GCCOG

14. Hon. Bill Hodge Calexico ICTC

15. Hon. Cecilia Hupp Brea OCCOG

* 16. Hon. Bill Jahn Big Bear Lake District 11

17. Hon. Robert “Bob” Joe South Pasadena Arroyo Verdugo Cities

* 18. Hon. Barbara Kogerman Laguna Hills District 13

* 19. Hon. Sabrina LeRoy San Manuel Band of Mission Indians

Tribal Government Regional Planning Board

* 20. Hon. Victor Manalo Artesia District 23

21. Hon. Anni Marshall Avalon GCCOG

* 22. Hon. Michele Martinez Santa Ana District 16

23. Hon. Joseph McKee Desert Hot Springs CVAG

24. Hon. Bill Miranda Santa Clarita SFVCOG

* 25. Hon. James Mulvihill San Bernardino District 7

* 26. Hon. Steve Nagel Fountain Valley District 15

27. Hon. Edward Paget Needles SANBAG

* 28. Hon. Erik Peterson Huntington Beach District 64

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Community, Economic, and Human Development Committee Members – June 2017

Members Representing

*Regional Council Member

29. Hon. Jim Predmore Holtville ICTC

* 30. Hon. John Procter Santa Paula District 47

31. Hon. Sonny R. Santa Ines Bellflower GCCOG

* 32. Hon. Andrew Sarega La Mirada District 31

33. Hon. Becky Shevlin Monrovia SGVCOG

* 34. Hon. Tri Ta Westminster District 20

* 35. Hon. Donald P. Wagner Irvine District 14

36. Hon. Mark Waronek Lomita SBCCOG

37. Hon. Frank Zerunyan Rolling Hills Estates SBCCOG

Page 5: REGULAR MEETING COMMUNITY ECONOMIC HUMAN · PDF fileCommunity, Economic, and Human Development Committee Members – June 2017 Members Representing *Regional Council Member 29. Hon.

COMMUNITY, ECONOMIC AND HUMAN DEVELOPMENT COMMITTEE AGENDA

JUNE 1, 2017

i

The Community, Economic and Human Development (CEHD) Committee may consider and act upon any of the items listed on the agenda regardless of whether they are listed as Information or Action Items. CALL TO ORDER & PLEDGE OF ALLEGIANCE (The Honorable Rex Richardson, Chair) PUBLIC COMMENT PERIOD – Members of the public desiring to speak on items on the agenda, or items not on the agenda, but within the purview of the Committee, must fill out and present a speaker’s card to the Assistant prior to speaking. Comments will be limited to three (3) minutes. The Chair may limit the total time for all comments to twenty (20) minutes. REVIEW AND PRIORITIZE AGENDA ITEMS

CONSENT CALENDAR Time Page No. Approval Item 1. Minutes of the April 6, 2017 Meeting Attachment 1 Receive and File 2. Status Update on Implementation of Indirect Mobile

Source Measures in 2016 South Coast Air Quality Management Plan (AQMP)

Attachment 7

3. Updates on Housing-related Legislation Attachment 9 4. 2017 Meeting Schedule of the Regional Council and

Policy Committees Attachment 12

INFORMATION ITEMS 5. Draft Program for the 28th Annual Demographic

Workshop – June 26, 2017 (John Cho, SCAG Staff)

Attachment 15 mins. 13

6. SCAG Enhanced Infrastructure Financing District

(EIFD)/ Community Revitalization and Investment Authority (CRIA) Technical Assistance and Web Tool Demonstration (Kimberly Clark, SCAG Staff)

Attachment 25 mins. 17

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COMMUNITY, ECONOMIC AND HUMAN DEVELOPMENT COMMITTEE AGENDA

JUNE 1, 2017

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INFORMATION ITEMS - continued Time Page No. 7. Remediation of Brownfield Sites and the Potential for

Building Future Affordable Housing (Matt Winefield, Founder and CEO, Winefield & Associates; Greg Trimarche, Partner, Ring Bender)

Attachment 45 mins. 26

CHAIR’S REPORT (The Honorable Rex Richardson, Chair)

STAFF REPORT (Ma’Ayn Johnson, SCAG Staff) FUTURE AGENDA ITEM/S ANNOUNCEMENT/S ADJOURNMENT The next regular meeting of the CEHD Committee is scheduled for Thursday, July 6, 2017 at the SCAG Los Angeles Office. There will be no meeting in August 2017.

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______________________________________________________________________________

COMMUNITY, ECONOMIC & HUMAN DEVELOPMENT COMMITTEE of the

SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS

April 6, 2017 Minutes

______________________________________________________________________________ THE FOLLOWING MINUTES ARE A SUMMARY OF ACTIONS TAKEN BY THE COMMUNITY, ECONOMIC & HUMAN DEVELOPMENT COMMITTEE. AN AUDIO RECORDING OF THE ACTUAL MEETING IS AVAILABLE FOR LISTENING. The Community, Economic & Human Development Committee held its meeting at SCAG’s downtown Los Angeles office. A quorum was present. Members Present Hon. Stacy Berry, Cypress OCCOG Hon. Wendy Bucknum, Mission Viejo OCCOG Hon. Carol Chen, Cerritos GCCOG Hon. Kerry Ferguson, San Juan Capistrano OCCOG Hon. Margaret Finlay, Duarte District 35 Hon. Vartan Gharpetian, Glendale District 42 Hon. Bill Hodge, Calexico ICTC Hon. Bill Jahn, Big Bear Lake (Chair) District 11 Hon. Robert Joe, South Pasadena Arroyo Verdugo Cities Hon. Barbara Kogerman, Laguna Hills District 13 Hon. Sabrina Leroy San Manuel Band of Mission Indians Hon. Michele Martinez, City of Santa Ana District 16 Hon. Larry McCallon, Highland (Vice-Chair) District 7 Hon. Bill Miranda, City of Santa Clarita SFVCOG Hon. Steve Nagel, City of Fountain Valley OCCOG Hon. Ed Paget , Needles SBCTA Hon. Erik Peterson, Huntington Beach District 64 Hon. Jim Predmore, Holtville ICTC Hon. John Procter, Santa Paula VCOG Hon. Rex Richardson, Long Beach District 29 Hon. Sonny Santa Ines, Bellflower GCCOG Hon. Becky Shevlin, Monrovia SGVCOG Hon. Donald Wagner, Irvine District 14 Hon. Mark Waronek, Lomita SBCCOG Hon. Frank Zerunyan, Rolling Hills Estates SBCCOG Members Not Present Hon. Al Austin, Long Beach GCCOG Hon. Jeffrey Cooper, Culver City WSCCOG Hon. Rose Espinoza, City of La Habra OCCOG Hon. Debbie Franklin, Banning WRCOG

AGENDA ITEM NO. 1

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Members Not Present (Cont’d) Hon. Tom Hansen, City of Paramount GCCOG Hon. Joe Lyons, City of Claremont SGVCOG Hon. Victor Manalo, Artesia District 23 Hon. Julie Hackbarth-McIntyre, Barstow SBCTA Hon. Joe McKee, City of Desert Hot Springs CVAG Hon. Susan McSweeney, Westlake Village LVMCOG Hon. Andrew Sarega, City of La Mirada District 31 Hon. Tri Ta, Westminster District 20 CALL TO ORDER & PLEDGE OF ALLEGIANCE Hon. Bill Jahn, Chair, called the meeting to order at approximately 10:00 AM and asked the Hon. Wendy Bucknum to lead the Committee in the Pledge of Allegiance. PUBLIC COMMENT PERIOD Richard Koosa, an advocate of affordable housing, spoke in support of strong leadership in state legislation fostering affordable housing. REVIEW AND PRIORITIZE AGENDA ITEMS There was no reprioritization of the agenda. ACTION ITEMS 1. Election of 2017-18 CEHD Chair and Vice Chair Joe Silvey, General Counsel, opened the election for the 2017-18 CEHD Chair and Vice-Chair noting that advance call for nominations was made several weeks ago. Mr. Silvey announced two candidates nominated for the Chair position, Hon. Rex Richardson and Hon. Barbara Kogerman. Mr. Silvey then announced that the Vice-Chair position was uncontested with only one candidate nominated, Hon. Vartan Gharpetian. Mr. Silvey requested other nominations from the floor for either Chair or Vice-Chair. Noting none, nominations were closed. Paper ballots were distributed to the members to cast their votes. The ballots were counted and the votes were recorded as follows: Chair Position: Richardson – Bucknum, Ferguson, Finlay, Gharpetian, Jahn, Joe, Leroy, Martinez, Miranda, Paget, Predmore, Procter, Richardson, Shevlin, Wagner, Waronek, Zerunyan Kogerman – Berry, Chen, McCallon, Nagel, Peterson, Santa Ines Vice-Chair Position: Gharpetian – Berry, Bucknum, Chen, Ferguson, Finlay, Gharpetian, Jahn, Joe, Leroy, Martinez, McCallon, Miranda, Nagel, Paget, Peterson, Predmore, Procter, Richardson, Santa Ines, Shevlin, Wagner, Waronek, Zerunyan

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Mr. Silvey announced that Hon. Rex Richardson will serve as the 2017-18 CEHD Chair and Hon. Vartan Gharpetian will serve as Vice-Chair. 2. SCAG Sustainability Planning Grants Program Update Marco Anderson, SCAG staff, stated that on September 29, 2016, the Regional Council approved the guidelines and scoring criteria for the 2016 Sustainability Planning Grant (SPG) program. Staff subsequently released the SPG Call for Proposals and received a total of 139 project proposals requesting approximately $35.5M across all project categories and types by the November 18, 2016 deadline. On February 2, 2017, the Regional Council approved staff award recommendations and authorized staff to begin contacting project sponsors in order to develop and release RFPs for fifty-four (54) projects totaling approximately $9.6M. Staff committed to return to the Regional Council to recommend funding for proposals that can be modified to better align with available funding sources. Eleven (11) additional jurisdictions have now committed to work with SCAG and ensure their projects are eligible. Staff has also prepared a Phase II list of projects from jurisdictions that were not recommended for awards in Phase I.

A MOTION was made (McCallon) to recommend to the Regional Council the approval of eleven (11) additional cities for Phase I funding of the Sustainability Planning Grant (SPG) program and begin development and release related Request for Proposals (RFPs); and approve a Phase II SPG project list subject to future funding availability. The MOTION was SECONDED (Finlay) and APPROVED by the following vote:

AYES: Berry, Bucknum, Chen, Ferguson, Finlay, Gharpetian, Jahn, Joe, Leroy, McCallon, Nagel, Paget, Peterson, Predmore, Procter, Richardson, Santa Ines, Shevlin, Wagner, Waronek, Zerunyan NOES: None ABSTAIN: Miranda Approval Item CONSENT CALENDAR 3. Minutes of the March 2, 2017 Meeting Receive and File 4. Update Regarding 2016 South Coast Air Quality Management Plan (AQMP) Adoption 5. 2017 Meeting Schedule of the Regional Council and Policy Committees

A MOTION was made (Finlay) to approve the Consent Calendar. The MOTION was SECONDED (Paget) and APPROVED by the following vote:

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AYES: Berry, Bucknum, Chen, Ferguson, Finlay, Gharpetian, Jahn, Joe, Leroy, McCallon, Miranda, Nagel, Paget, Peterson, Predmore, Procter, Richardson, Santa Ines, Shevlin, Wagner, Waronek, Zerunyan NOES: None ABSTAIN: None INFORMATION ITEMS 6. SCAG GIS Services Program: New Pilot Internship Initiative Javier Aguilar, SCAG staff, provided an overview of the new Pilot Initiative of SCAG GIS Service Program. The program is designed to assist member jurisdictions in need of GIS resources and technical capacity enhancement to effectively participate in the RTP/SCS development process to address regional planning issues. The GIS Pilot Initiative sent SCAG interns to work directly with SCAG member agencies on a pre-defined scope of work. Since initiation this Pilot has been implemented in nine (9) SCAG member jurisdictions. In order for SCAG to effectively evaluate the program, the following representatives spoke on behalf of their jurisdictions to share their experiences: David Lopez, Associate Engineer, City of Baldwin Park Mario Suarez, Principal Planner, City of Colton Jeff Hook, Principal Planner, Jurupa Valley Julia Gonzales, Deputy Planning Director, City of Pico Rivera Tom Oliver, Associate Planner, City of Los Alamitos Marilyn Simpson, Principal Planner, City of Irwindale Danielle Bram, Director, Center of Geographic Studies, CSUN 7. SCAG Post-Housing Summit Initiatives Ma’Ayn Johnson, SCAG staff, provided an overview of initiatives planned as a follow-up to the SCAG Housing Summit, which was held in October 2016. The purpose of the housing summit was to address causes of California’s housing crisis and offer solutions for more housing to be built. SCAG is proposing three (3) housing initiatives to address many of the issues surrounding the housing crisis, including legislative changes, additional planning and technical assistance, and continuing to partner with State and Federal agencies. The goal of these initiatives is to promote housing development in our local communities. 8. Overview of the Regional Housing Needs Assessment (RHNA) Process Ma’Ayn Johnson, SCAG staff, stated that the RHNA process is a complex process outlined in State housing law to ensure that the ongoing statewide housing crisis is addressed at the local and regional level. A council of governments such as SCAG is tasked by the State to determine the RHNA allocation for each of its jurisdictions, which includes all cities and unincorporated counties. The 5th RHNA allocation, which was adopted in October 2012, covers the planning period October 2013 through October 2021. The 6th RHNA cycle will cover the planning period October 2021 through October 2029, and will be adopted at the latest by October 2020. While the RHNA

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allocation is not a building quota, it is a requirement on all jurisdictions to plan for future housing need based on household growth. 9. SCAG SB 375 Regional GHG Target Recommendations for the 2020 RTP/SCS and Beyond Frank Wen, SCAG staff, stated that SB 375 requires California Air Resources Board (CARB) to set GHG remission reduction targets for each California Metropolitan Planning Organization (MPO), including SCAG. The law also requires CARB to update the targets every eight (8) years. SCAG’s current targets for 2020 and 2035 are 8% and 13% respectively. The targets were issued by CARB in September 2010. CARB is in the process of updating the reduction targets for the subsequent round of the RTP/SCS. SCAG is coordinating with the other large MPOs to develop target recommendations for submission to CARB. CHAIR’S REPORT Chair Jahn welcomed the newly elected Chair and Vice-Chair, and stated that he looks forward to working with each of them in the coming year. The Chair encouraged members to support SCAG’s paperless initiative by accessing agendas on line in lieu of receiving paper copies in the mail. Hard-copies of the agenda will continue to be available at the meetings. Chair Jahn encouraged members to register for the 2017 Regional Conference and General Assembly being held on May 4 & 5, 2017 at the J.W. Marriott in Palm Desert. Contact Tess Rey-Chaput or Linda Jones. Registration is free for elected officials and city managers. STAFF REPORT Ma’Ayn Johnson, SCAG staff, thanked Hon. Bill Jahn and Hon. Larry McCallon for their service as Chair and Vice-Chair respectively over the past year. FUTURE AGENDA ITEMS There were no agenda items presented. ANNOUNCEMENTS There were no announcements presented. ADJOURNMENT The Chair adjourned the meeting at approximately 12:00 PM. Minutes Reviewed By: Ma’Ayn Johnson, Housing Program Manager

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DATE: June 1, 2017

TO: Regional Council (RC) Community, Economic, and Human Development Committee (CEHD) Energy and Environment Committee (EEC) Transportation Committee (TC)

FROM: Hasan Ikhrata, Executive Director, (213) 236-1944, [email protected]

SUBJECT: Status Update on Implementation of Indirect Mobile Source Measures in 2016 South Coast Air Quality Management Plan (AQMP)

EXECUTIVE DIRECTOR’S APPROVAL: RECOMMENDED ACTION: Receive & File. EXECUTIVE SUMMARY: Per the directions of the Boards of the South Coast Air Quality Management District (SCAQMD) and the California Air Resources Board (ARB), the SCAQMD staff held an introductory working group meeting on May 8, 2017 to start the implementation of the indirect mobile source measures in the 2016 South Coast Air Quality Management Plan (AQMP). This staff report presents a summary of the working group process. STRATEGIC PLAN: This item supports SCAG’s Strategic Plan, Goal 1: Improve Regional Decision Making by Providing Leadership and Consensus Building on Key Plans and Policies; Objective a) Create and facilitate a collaborative and cooperative environment to produce forward thinking regional plans. BACKGROUND: As previously reported, the SCAQMD and ARB adopted the 2016 South Coast AQMP respectively in March 2017. The 2016 AQMP includes five indirect mobile source measures seeking emission reductions from new development and redevelopment projects (EGM-01), marine ports (MOB-01), railyards (MOB-02), warehouses (MOB-03), and commercial airports (MOB-04). As part of its adoption, the SCAQMD Governing Board directed its staff to undertake a stakeholder process and draft for its consideration an indirect source rule for non-aircraft sources at commercial airports by February 2019. As part of the ARB adoption, the ARB Board directed its staff to report on concepts for an indirect source rule and any alternatives to control pollution from large freight facilities including ports, railyards, warehouses and distribution centers by February 2018. To implement the directions of the SCAQMD and ARB Boards, the SCAQMD staff held an introductory working group meeting on May 8, 2017. The purpose of the meeting was to lay out and seek stakeholder input on a working group process. The following is a summary of the working group process based on the introductory working group meeting.

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AGENDA ITEM NO. 2
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1. Five Working Groups Will Be Formed:

a. New Development and Redevelopment Projects b. Marine Ports c. Railyards d. Warehouses e. Commercial Airports

2. Composition of the Working Groups:

a. SCAQMD staff aims to have balanced stakeholders representation in each working group b. The composition of the working groups will be similar to that of the 2016 AQMP Advisory Group

3. Format and Schedule of the Working Group Meetings

a. Each working group meeting will include an SCAQMD staff presentation and roundtable discussion with conference-call capability

b. Multiple meetings per working group will be held over the next year starting in June 2017 c. The meetings will follow the indirect mobile source measures schedule specified in the 2016 AQMP

with staff recommendations to the SCAQMD Governing Board in March 2018.

4. Key Considerations and Objectives of the Working Groups a. To balance improved air quality/public health and healthy economy b. To follow a collaborative process to seek voluntary measures where possible and pivot to formal

rulemaking if necessary c. To identify strategies to implement the indirect mobile source measures d. To identify metrics for assessing implementation progress e. To develop mechanisms to ensure any voluntary emission reductions are federally creditable

SCAG staff will actively participate in and closely monitor the working group process and will report back to the Regional Council and Policy Committee(s) as appropriate. FISCAL IMPACT: Work associated with this item is included in the current FY16-17 Overall Work Program (025.SCG0164.01: Air Quality Planning and Conformity). ATTACHMENT: None

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DATE: June 1, 2017

TO: Community, Economic and Human Development (CEHD) Committee

FROM: Hasan Ikhrata, Executive Director, 213-236-1944, [email protected]

SUBJECT: Updates on Housing-related Legislation

EXECUTIVE DIRECTOR’S APPROVAL: RECOMMENDED ACTION: For Information Only - No Action Required. EXECUTIVE SUMMARY: As part of its post-Housing Summit initiatives and housing program, SCAG is monitoring housing-related legislation and has summarized several of them in this report. SB 2 (Atkins), SB 3 (Beall), and ACA 4 (Curry) concern permanent sources of funding for housing construction or mechanisms to do so. SB 35 (Weiner) and AB 1505 (Bloom) concern local zoning and land use regulations to increase affordable housing supply. STRATEGIC PLAN: This item supports SCAG’s Strategic Plan; Goal 1: Improve Regional Decision Making by Providing Leadership and Consensus Building on Key Plans and Policies; Objective A: Create and facilitate a collaborative and cooperative environment to produce forward thinking regional plans. BACKGROUND: SCAG, in partnership with over thirty-four (34) non-profit, private and public entities, held a Housing Summit on October 11, 2016 to address causes of California’s housing crisis and offer solutions for more housing to be built. One of SCAG’s post-Housing Summit initiatives is to support more housing and affordability through legislative changes, particularly at the state level. At its January 17, 2017 meeting, SCAG’s Legislative/Communications & Membership Committee (LCMC) reviewed and discussed housing principles to promote further development of housing and affordable housing both in the SCAG region and throughout the State. Several principles were discussed, including preserving local input and control and the recognition that new funding for housing should support affordable housing in a variety of ways, such as supporting revision to local zoning regulations, rehabilitate existing units, and providing subsidies for housing construction. Similar to the discussion at the Housing Summit, the LCMC supported the primary principle of establishing a permanent source of funding for affordable housing. These principles will work in conjunction with other local government proposals from the League of Cities, California State Association of Counties (CSAC), and other organizations to incentivize development of housing while preserving housing and land use decision making at the local level.

AGENDA ITEM NO. 3

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Below is a summary of several key bills currently before the State Legislature that SCAG is monitoring as part of its housing program. ACA 4 (Curry) ACA 4 is a proposed amendment to the Constitution of the State to require a fifty-five percent (55%) vote threshold for infrastructure and affordable housing bonds. Currently, a two-third (2/3) majority is required for these bonds to pass. At the local level, this amendment could help initiatives aimed to build and preserve housing and associated infrastructure. ACA 4 is referred to the Assembly Committee on Local Government and Appropriations Committee. No hearing scheduled. SB 2 (Atkins) SB 2, also known as the Building Homes and Jobs Act, will assess a $75 fee on real estate recorded documents, excluding those documents associated with real estate sales. Transactions involving the sale of commercial and residential real estate are exempt from the fee. Fifty percent (50%) of collected fees will be distributed directly to local governments to address local needs while the remainder will be allocated by the State on a competitive basis. SB 2 has passed two policy committees, Senate Transportation and Housing Committee (9-3), Senate Governance and Finance Committee (5-2), and the Senate Appropriations Committee (7-0), and is currently held on suspense file. SB 3 (Beall) SB 3 would enact the Affordable Housing Bond Act, which if adopted by California voters at the November 8, 2017 general election would authorize a $3 billion bond issuance to finance various existing housing programs as well as infill infrastructure financing and affordable housing matching grant programs. Bond funds would be expended for new construction or preservation of affordable housing, infill infrastructure, farmworkers housing, and other housing programs. SB 3 has passed two policy committees, Senate Transportation and Housing Committee (10-2), Senate Governance and Finance Committee (5-2), and the Senate Appropriations Committee (7-0), and is currently held on suspense file. SB 35 (Wiener) SB 35 would require multi-family housing developments that meet certain specific planning objectives, such as infill location and a certain percentage of affordable units, to be subject to a streamlined, ministerial approval process by a jurisdiction. This bill would also limit the authority of a jurisdiction to impose parking requirements on projects that qualify for the streamlined process. This process would apply in jurisdictions where an insufficient number of permits have been issued as reported in their respective annual progress report to the California Department of Housing and Community Development (HCD), which reports building activity in comparison to the Regional Housing Needs Assessment (RHNA) allocation. SB 35 passed Senate Transportation and Housing Committee (7-3), Senate Governance and Finance Committee (4-2), and is referred to Senate Appropriations Committee, hearing scheduled May 22. SCAG has not taken a position on this bill.

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AB 1505 (Bloom) AB 1505 would additionally authorize the legislative body of any city, county, or city and county to adopt ordinances to require, as a condition of development of residential rental units, that the development include a certain percentage of affordable residential rental units, also known as “inclusionary zoning.” Currently jurisdictions can adopt such an ordinance for rental units, but due to prior State court decisions that a time and resource-intensive nexus study must be conducted. This bill would clarify a jurisdiction’s ability to adopt inclusionary housing requirements for new market-rate rental development. AB 1505 has passed the State Assembly 47-24 and is currently referred to Senate Transportation and Housing Committee, no hearing scheduled. FISCAL IMPACT: Work associated with this item is included in the Fiscal Year 2016-17 Overall Work Program (Project Number 080.00153.04: Regional Assessment). ATTACHMENT: None

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2017 Meeting Schedule

Regional Council and Policy Committees

All Regular Meetings are scheduled on the 1st Thursday of each month

(Approved by the Regional Council 09-01-16)

Executive/Administration Committee (EAC) 9:00 AM – 10:00 AM

Community, Economic and Human

Development Committee (CEHD)

10:00 AM – 12:00 PM

Energy and Environment Committee (EEC) 10:00 AM – 12:00 PM

Transportation Committee (TC) 10:00 AM – 12:00 PM

Regional Council (RC) 12:15 PM – 2:00 PM

January 5, 2017

February 2, 2017

March 2, 2017

April 6, 2017

May 4 – 5, 2017 (SCAG Regional Conference and General Assembly, JW Marriott Desert Springs)

June 1, 2017

July 6, 2017

August 3, 2017 (DARK)

September 7, 2017 (Note: League of California Cities Annual Conference, Sacramento, CA; Sep. 13 - 15)

October 5, 2017

November 2, 2017

December 7, 2017 (SCAG 8th Annual Economic Summit --- in lieu of the regularly scheduled

Regional Council and Policy Committees’ Meeting 

AGENDA ITEM NO. 4

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DATE: June 1, 2017

TO: Community, Economic and Human Development (CEHD) Committee Energy and Environment Committee ( EEC) Transportation Committee (TC) Regional Council (RC)

FROM: John Cho, Senior Regional Planner; 213-236-1847; [email protected]

SUBJECT: Draft Program for the 28th Annual Demographic Workshop – June 26, 2017

EXECUTIVE DIRECTOR’S APPROVAL: RECOMMENDED ACTION: For Information Only – No Action Required. EXECUTIVE SUMMARY: SCAG staff will provide an overview of the program and key topics that will be presented and discussed at the 28th Annual Demographic Workshop, which will be jointly held with the University of Southern California (USC) Sol Price School of Public Policy, on June 26, 2017 at USC. The demographic workshop is free to all SCAG RC and policy committee members. STRATEGIC PLAN: This item supports SCAG’s Strategic Plan; Goal 4: Develop, Maintain and Promote the Utilization of State of the Art Models, Information Systems and Communication Technologies; Objective b: Develop, maintain and enhance data and information to support planning and decision making in a timely and effective manner. BACKGROUND: SCAG and the USC Sol Price School of Public Policy will jointly host the 28th Annual Demographic workshop at the USC campus in the newly completely Trojan Grand Ballroom between 8:30 a.m. and 3:30 p.m. on June 26, 2017. This year’s workshop program is developed under the main theme, “Volatile Demographics: How High and How Low?” The workshop will provide new insights and research on demographic changes that we are facing. Registration is free for Regional Council and Policy Committee members. The first panel will feature new trends and assumptions in fertility rates. Dr. Walter Schwarm, Research Manager in the Department of Finance will present the newly released population projection focusing on fertility rate and other components. Dr. Dowell Myers, Professor and Director of the Population Dynamics Research Group in the Sol Price School of Public Policy at USC, and Dr. Gretchen M. Livingston, Senior Researcher in Pew Research Center, will provide their perspective of fertility rates.

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The second panel will feature new trends in immigration, workforce, and housing. Panelists are: Dr. Frank Wen, Acting Director of Land Use & Environmental Planning, SCAG; Dr. Audrey Singer, Senior Fellow, Urban Institute; and Melinda Coy, Housing Policy Specialist, California Housing and Community Development. The third panel will feature robots and the potential impact in labor market and in our communities. Panelists are: Dr. Maja Mataric, Chan Soon-Shiong, Professor of Computer Science, Neuroscience, and Pediatrics in the Viterbi School of Engineering at USC, will introduce socially assistive robotics as means of improving human quality of life. Dr. Milind Tambe, Professor of Computer Science & Industrial and Systems Engineering Departments in the Viterbi School of Engineering at USC, will present how artificial intelligence (AI) can be used for social good. Lastly, Sean Kane, Associate Partner at McKinsey & Company will present the potential displacement impact on employment by AI and robots. As a luncheon keynote speaker, Dr. Elizabeth Rhodes, Research Director for the Basic Income Project, Y Combinator Research, will introduce Universal Basic Income (UBI) which is a form of social security that is given to individuals unconditionally. Afternoon roundtables will provide participants with new information about how to work with several demographic topics: Census and big data; Projecting K-12 Public School Enrollments; SCAG GIS/big data/General Plan/ EIFD data; and Accessory dwelling units and the impact on household estimation and projection, Supporting partners of the SCAG/USC demographic workshops include US Census Bureau, California State Census Data Center, Department of Finance (DOF), Department of Housing and Community Development (HCD), and USC Population Dynamics Research Group. FISCAL IMPACT: Work associated with this item is included in the current FY 2016-17 Budget under 800-0160.04. ATTACHMENT: Draft Program for the 28th Annual Demographic Workshop, June 26, 2017.

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28th Annual Demographic Workshop (5-23-2017): Volatile Demographics: How High and How Low?

Monday, June 26, 2017 AGENDA AM 8:00 Registration/Continental Breakfast

8.30 Welcome/Introductions Jack Knott, Dean, Sol Price School of Public Policy, USC Hasan Ikhrata, Executive Director, Southern California Association of Governments Hon. Margaret E. Finlay, Councilmember, City of Duarte, President, Southern California Association of Governments James T. Christy, Regional Director, Los Angeles Regional Office, U.S. Census Bureau

8:45 Demographic Trends Under Trump’s Administration & New Demographics Dowell Myers, Professor and Director of the Population Dynamics Research Group, Sol Price School of Public Policy, USC

9:10 Panel 1: Fertility Rate: How Low Can It Go? Louise Rollin-Alamillo, Research Analyst, Office of Health Assessment and Epidemiology, Los Angeles County Department of Public Health Dowell Myers, Professor and Director of the Population Dynamics Research Group, Sol Price School of Public Policy, USC Ethan Sharygin, Demographer, State Census Data Center, California Department of Finance

10:10 Coffee Break 10:20 Panel 2: Immigration, Workforce, and Housing: How Big A Change? What

Additional Labor Can Be Cultivated? Audrey Singer, Senior Fellow, Urban institute Frank Wen, Acting Director, Land Use & Environmental Planning, Southern California Association of Governments Megan Kirkeby, Policy Research Specialist, California Department of Housing and Community Development

11:20 Panel 3: Robots: How Big A Change? Maja Matarić, Vice Dean for Research, Viterbi School of Engineering Director, Robotics and Autonomous Systems Center (RASC) University of Southern California

Milind Tambe, Founding Co-director, CAIS Center for AI in Society Professor, Computer Science & Industrial and Systems Engineering Departments University of Southern California Sean Kane, Associate partner, McKinsey & Company

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PM 12:20 Working Lunch 12:40 Luncheon Keynote Speech

Elizabeth Rhodes, Research Director for the Basic Income Project, Y Combinator Research

1:40 Greetings

Ethan Sharygin, Demographer, State Census Data Center, California Department of Finance

1:50 Afternoon Roundtables: Applying Big Data in Demographics Table 1 – Census and Big Data, (Luz M Castillo) Table 2 – SCAG GIS/Big Data (Kimberly Clark, Tom Vo) Table 3 – Volatile Demographics? LAUSD Plans for Short and Long Range

Enrollment Horizons (Valerie Edwards & Mary Ehrenthal Prichard) Table 4 – Accessory Dwelling Unit and its application in planning (Deborah

Diep & Paul McDougall) Table 5 – Population Projection/ City Level Population Projection Model (Ethan

Sharygin, Simon Choi) Table 6 – State/County Population Estimates (Phuong Nguyen)

3:00 Takeaways of Roundtables, Questions & Answers 3:30 Concluding Remarks

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DATE: June 1, 2017

TO: Community, Economic and Human Development (CEHD) Committee Energy and Environment Committee (EEC) Transportation Committee (TC) Regional Council (RC)

FROM: Kimberly Clark, Regional Planner Specialist, Research and Analysis, 213-236-1844, [email protected]; Derek Hung, Temporary Assistant Regional Planner, Research and Analysis, 213-236-1849, [email protected]

SUBJECT: SCAG Enhanced Infrastructure Financing District (EIFD)/ Community Revitalization and Investment Authority (CRIA) Technical Assistance and Web Tool Demonstration

EXECUTIVE DIRECTOR’S APPROVAL: RECOMMENDED ACTION: For Information Only – No Action Required EXECUTIVE SUMMARY: Senate Bill 628 and Assembly Bill 2, enacted into law in 2014 and 2015, respectively, empower local jurisdictions to form Enhanced Infrastructure Finance Districts (EIFDs) and establish Community Revitalization and Investment Authorities (CRIAs) to finance infrastructure investment through tax increment financing. EIFDs and CRIAs are the major economic development strategies and financing mechanisms after the dissolution of Redevelopment Agencies (RDAs) in February 2012, and SCAG has developed a tool for project sponsors to evaluate the viability of establishing an EIFD or CRIA for a given project area. Los Angeles County MTA (Metro) will also be using SCAG’s criteria, data sets and tools for their upcoming Transit Oriented Development (TOD) Planning Grant Program, and SCAG will be providing support at several trainings to be held this month. SCAG will also be hosting a Toolbox Tuesday training session at our main headquarters on June 27th at 10am to assist all regional stakeholders with SCAG’s new tool. Staff will provide a EIFD/CRIAs web tool demonstration to the Committee members. STRATEGIC PLAN: This item supports SCAG’s Strategic Plan, Goal 1: Improve Regional Decision Making by Providing Leadership and Consensus Building on Key Plans and Policies; Objective: a) Create and facilitate a collaborative and cooperative environment to produce forward thinking regional plans. BACKGROUND: A. Economic Development Options in the Post-RDA Era Following the dissolution of RDAs in 2012, numerous legislative bills were introduced to guide and ensure as much as possible an orderly dissolution process, and to provide local government with other

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potential structures to use tax increment finance for local economic development. Among them were SB 628, signed into law on September 29, 2014 and AB 2, signed into law on September 22, 2015, empower local jurisdictions to form Enhanced Infrastructure Finance Districts (EIFDs) and establish Community Revitalization and Investment Authorities (CRIAs) to finance infrastructure investment through tax increment financing. EIFDs and CRIAs are the two major economic development strategies and financing mechanisms after the dissolution of RDAs through infrastructure investment, and as required by AB2 specifically aim to produce affordable housing and target those investments and improvements at disadvantaged communities, or blight areas. The provisions set forth by AB 2 have similarities to the redevelopment agencies and projects that were dissolved in February 2012. Similar to the former redevelopment agencies, this authority can use tax increment financing to fund its programs. However, AB 2 requires that the taxing entities in the plan area, such as counties and special districts, must agree to divert tax increment funds to the authority. AB 2 also requires that at least 25 percent of all tax increment revenues received by the authority must be deposited into a separate Low and Moderate Income Housing Fund and used by the local authority for purposes of building or preserving the local supply of affordable housing. Prior redevelopment law required 20 percent set aside for affordable housing. The bill also requires that the local authority to make relocation provisions for persons displaced by a plan and replace certain housing units destroyed or removed as part of the plan. B. SCAG Efforts and Partnership with Metro Consistent with SCAG’s current and past priorities to support legislation to enhance economic development opportunities for local government, provide tools to help achieve further economic turnaround and growth, SCAG retained Kosmont Companies to advise on how SCAG can promote and facilitate the use of both EIFDs and CRIAs to achieve the goals of economic development through sustainable infrastructure investment and affordable housing construction. To assist local jurisdictions in evaluating the viability of establishing an EIFD/CRIA, SCAG developed a screening criteria and interactive tool that allows anyone to dive deep into local assessor’s parcel taxation data and other factors essential to the establishment of an EIFD/CRIA. We will be hosting a Toolbox Tuesday training session on June 27th at 10am at SCAG’s Main Office, and video conferencing to our regional offices will be provided. Building on this work, Metro will be using SCAG’s criteria as an essential factor in their new Transit Oriented Communities Tax Increment Financing (TOC TIF) Pilot Program, which will fund Los Angeles County municipalities seeking to study the feasibility of forming TIF districts located within a one-half mile of Metrolink, Metro Rail, or Metro Transitway/Bus Rapid Transit stations and adjacent transit corridors. This partnership is part of SCAG and Metro’s commitment to supporting Transit Oriented Communities (TOCs) – compact, bikeable and walkable corridors centered on transit. TOCs go beyond a typical Transit Oriented Development (TOD) by considering a broader community context. TIF districts can be a critical component of creating TOCs as they can fund community serving infrastructure, including better first and last mile connections to transit, affordable housing, and other amenities such as open

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space, community centers and libraries. Having the appropriate infrastructure and community services located near accessible quality transit supports our shared goals of increasing ridership, reducing vehicle miles travelled and contributing to a healthier, more sustainable Southern California. Applicants are required to perform an initial screening of their proposed TIF district using SCAG’s online EIFD/CRIA Technical Assistance Application to ensure that the feasibility study area meets the State’s legal requirements for EIFD and/or CRIA formation, and also that the targeted area has the capacity to generate enough investment and tax increment to support the desired projects. Please see Attachment 1 for more information on SCAG’s Screening Criteria and tool. Attachment 2 provides additional information on upcoming trainings that will be held this month for Metro’s TOC TIF Pilot Program. FISCAL IMPACT: Work associated with this item is included in the current FY OWP under 150-4096A.02, Regional Growth and Policy Analysis. ATTACHMENTS: 1. SCAG EIFD/CRIA Screening Criteria 2. Metro TOD Planning Grant Workshops + SCAG Toolbox Tuesday (June 27th)

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The analyses, projections, assumptions, rates of return, and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results. Project pro forma and tax analyses are projections only. Actual results may differ materially from those expressed in this analysis.

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Appendix: District Screening Criteria Detail

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The analyses, projections, assumptions, rates of return, and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results. Project pro forma and tax analyses are projections only. Actual results may differ materially from those expressed in this analysis.

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Screening Criteria Detail

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a) Confirm that lead agency receives Finding of Completion from DOFb) Certify no SA assets under litigation (if any) will benefit from district formationc) Comply with State Controller's asset transfer review

1. EIFD/CRIA Successor Agency Prerequisites

2. Economic Development Potential

a) Is a specific project planned that may spur economic development (e.g. new rail stop, TOD, proposed industrial development)?

b) Will projected development in project area at buildout create $100 million or more in increased assessed value in first 5 years?

c) Is there adequate undeveloped or re-developable land in project area necessary to support planned development?

d) Do early-stage developers in project area plan to break ground on projects within 2 years of potential district formation?

e) What is value of projects between years 5 and 15? Overall project value?

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The analyses, projections, assumptions, rates of return, and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results. Project pro forma and tax analyses are projections only. Actual results may differ materially from those expressed in this analysis.

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Screening Criteria Detail(Continued)

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a) Is there zoning in place to support planned development types? Is there an approved specific plan for the area?

b) Does the current zoning support mixed-use and transit-oriented development?c) What densities for housing does the current plan allow?

4. Project Location and Infrastructure Needs

a) Where is project located? High-Quality Transit Area? Transit Priority Area?b) Is project in proximity to strategic projects listed in RTP?c) What jurisdictions benefit from the project?d) What type of infrastructure is needed to support project? Is it regional in nature?e) Are there requirements for development of affordable housing within the project area?f) What are estimated project costs and timing of infrastructure needs?g) Is the necessary infrastructure identified in a capital improvements program or

environmental documentation (e.g. specific plan EIR)?h) Is the infrastructure project approved? If so, when is expected completion/delivery date?i) Does needed infrastructure cross jurisdictional boundaries (e.g. bus or light rail service)?j) Has funding been approved for the infrastructure improvements?

3. Current Zoning and Density in Project Area

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The analyses, projections, assumptions, rates of return, and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results. Project pro forma and tax analyses are projections only. Actual results may differ materially from those expressed in this analysis.

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5. Potential Infrastructure Financing Solutions

a) How much property tax increment does the lead agency capture?̶ If > 15 cents: Generally able to form district on their own̶ If < 15 cents: May have to find partners or alternative funding sources

b) Are other affected taxing entities (e.g. county or special districts other than schools) willing to contribute increment or other financial resources (e.g. grant monies)?

c) What other financial resources are available to support the district (e.g. development impact fees, CFD revenues, sales tax, hotel/TOT tax)?

d) Will early-stage developers be willing to provide seed capital or a loan to support district formation?

e) Is project eligible to apply for Greenhouse Gas Reduction Fund (GGRF) grant? If so, which type? Will SCAG assist in application?

f) Are planned improvements eligible for PACE financing such as energy efficiency upgrades or seismic retrofits?

g) For regional infrastructure projects, will other jurisdictions/agencies pledge increment or financial resources towards infrastructure construction? If so, how much?

h) Is project area a Disadvantaged Community (may qualify for CRIA formation)? If yes, proceed to Criteria #6.

Screening Criteria Detail(Continued)

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The analyses, projections, assumptions, rates of return, and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results. Project pro forma and tax analyses are projections only. Actual results may differ materially from those expressed in this analysis.

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a) 80% of land in project area by census tract must have median household income <80% of statewide median

b) Must meet at least 3 of the following conditions:̶ Non-seasonal unemployment 3% higher than statewide median̶ Crime rates 5% higher than statewide median̶ Deteriorated or inadequate infrastructure̶ Deteriorated commercial or residential structures

c) Alternative qualification as former Military Base or designation as Disadvantaged Community per CalEPA EnviroScreen tool

7. Technical Screening

6. CRIA Eligibility

a) Does a former Redevelopment Agency Project Area's boundaries cover part or all of the potential EIFD project area?

b) Does the Successor Agency have enforceable obligations identified in the Recognized Obligation Payment Schedule (ROPS)? If so, what obligations and how much?

c) Has the county auditor/controller where the EIFD is located provided direction as to how tax increment will flow to the EIFD?

Screening Criteria Detail(Continued)

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Metro is launching Round 5 of its Transit Oriented Development Planning Grant Program (TOD Grant) to fund the advancement of comprehensive transit supportive planning in Los Angeles County. The TOD Grant will fund the following:

1) Adoption of transit supportive regulatory plans, using the Transit Supportive Planning Toolkit, and

2) Transit Oriented Communities Tax Increment Financing (TIF) District pilot program feasibility studies.

Please visit www.metro.net/projects/tod to download the TOD Planning Grant Program Guidelines. Metro will review application requirements at the following workshops:

Metro Headquarters Los Angeles – Wednesday, June 7th, 1–4 pm

One Gateway Plaza, Henry Huntington Room, 3rd Floor Los Angeles, CA 90012 Parking is available off Vignes Street. Please bring ticket with you for validation. Transit options include Metro Red, Purple, Gold, and Silver Lines.

Gateway Cities Council of Governments – Tuesday, June 20th, 1–4 pm

16401 Paramount Boulevard, Clearwater Building Paramount, CA 90723 Parking is available on site.

San Gabriel Valley Council of Governments – Thursday, June 22nd, 1–4 pm Transit Supportive Planning/TIF Combined Workshop 602 East Huntington Drive, Suite B, Shamrock Conference Room Monrovia, CA 91016 Parking is available on site.

SCAG Headquarters Los Angeles – Tuesday, June 27th, 10 am–12 pm Transit Supportive Planning/TIF Combined Workshop 818 W 7th Street, Boardroom, 12th floor Los Angeles, CA 90017 Parking lot entrance on Flower Street off of 7th Street Transit options include 7th /Figueroa station on Metro Red, Purple, LADOT, Metro buses Please contact Desiree Portillo Rabinov at 213.922.3039 with any questions.

Metro Transit Oriented Development Planning Grant Program ROUND 5 WORKSHOPS

Transit Supportive Planning/TIF Combined Workshop

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DATE: June 1, 2017

TO: Community, Economic and Human Development (CEHD) Committee

FROM: Ma’Ayn Johnson, Senior Regional Planner, 213-236-1975, [email protected]

SUBJECT: Remediation of Brownfield Sites and the Potential for Building Future Affordable Housing

EXECUTIVE DIRECTOR’S APPROVAL: RECOMMENDED ACTION: For Information Only - No Action Required. EXECUTIVE SUMMARY: To address the statewide housing crisis, many jurisdictions are looking at infill opportunities, including brownfield remediation and development, as a strategy to increase housing supply and affordability. Mr. Matt Winefield, CEO and founder of Winefield & Associates and Greg Trimarche, partner with the law firm Ring Bender, will speak on the remediation process for brownfield sites and their possible potential for accommodating residential development of all types in the future. STRATEGIC PLAN: This item supports SCAG’s Strategic Plan; Goal 1: Improve Regional Decision Making by Providing Leadership and Consensus Building on Key Plans and Policies; Objective A: Create and facilitate a collaborative and cooperative environment to produce forward thinking regional plans. BACKGROUND: To address the statewide housing crisis, many jurisdictions are looking at infill opportunities, including brownfield remediation and development, as a strategy to increase housing supply and affordability. Mr. Matt Winefield, CEO and founder of Winefield & Associates and Greg Trimarche, partner with the law firm Ring Bender, will speak on the remediation process for brownfield sites and their possible potential for accommodating residential development of all types in the future. This topic was requested by a member of the CEHD Policy Committee. Winefield & Associates, Inc. is an investment firm that specializes in the acquisition of contaminated sites in infill areas and manufacturing areas in industrial parks, particularly in Los Angeles and Orange counties. Post-remediation, their properties have clean values ranging from $2 million to $20 million. Mr. Winefield is an engineer and businessman who has been supporting the redevelopment of contaminated properties since 1989.

AGENDA ITEM NO. 7

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FISCAL IMPACT: Work associated with this item is included in the Fiscal Year 2016-2017 Overall Work Program (WBS Number 16-080.SCG00153.04: Regional Assessment). ATTACHMENTS: 1. AB 440 Handout 2. PowerPoint Presentation

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Redeveloping Environmentally & Financially Distressed Properties

Southern California Association of GovernmentsJune 1, 2017

Matt Winefield, MS, MBA, PEWinefield & Associates, Inc.

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Agenda• Investor Site Selection Criteria• Environmental Remediation 101• Environmental Funding Resources• Recent Brownfields Projects• Questions• Legal Tools to Address Abandoned

Sites (Greg Trimarche)

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90,000 Sites

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Plan View of Contaminants

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Soil Vapor Extraction with Air Sparging

Other Common Remediation Tools:• Thermal Desorption• Excavation/Dredging• Pump & Treat• Solidification/Stabilization• Bioremediation

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Clean Value $1,000,000 $3,000,000 $5,000,000 $10,000,000

Contamination

Soil with HC 50% 25% 15% 10%

Soil with CS 60% 30% 20% 15%

Soil with HC & CS 70% 35% 25% 18%

GW with HC 90% 40% 30% 20%

GW with CS Fugetaboutit 45% 35% 25%

GW with HC & CS Fugetaboutit 50% 40% 30%

Legend:CS = Chlorinated Solvents (e.g., PCE and TCE)GW = GroundwaterHC = Hydrocarbons (e.g., gasoline, diesel, and benzene)

Preliminary Offers:Contaminants vs. Percent Price Reduction

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Federal Funding – US EPA

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State Funding – State Water Resources Control Board

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My Environmental Funding Guru

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Index 5-Year Annual Return

Treasury Bill 1.5%

Commercial Mortgage 5.5%

Dow Jones 10.3%

Morning Star Real Estate 10.5%

NASDAQ 11.8%

Morning Star Health Care 18.0%

Contaminated Real Estate > 20%

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Turning Polluted Properties Into ProfitsNew York Times, Wealth Matters, By Paul Sullivan, Feb. 26, 2016

Decades ago, Ideal Uniform Rental operated a dry cleaner in Garden Grove, Calif., and some of the solvents it used leaked into the ground and the water supply.

The contaminants traveled downhill to the city’s vehicle maintenance yard and mayhave crossed the street to Woodbury Elementary School.

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Rev. 973 v. John Mouren-Laurens, Leach Oil, Et al.

18 years of litigation between property owner (Rev 973) and operators with 1000s of PRPs

Remediation Estimate = $17 MM Clean Property Value = $6 MM

SO, WHY DID I OFFER $3MM FOR THE PROPERTY?

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West Coast Choppers Note Purchase, Long Beach CA

Matt Winefield, MS, MBA, PEPresidentWinefield & Associates, Inc.Mobile: [email protected]

Acquiring Distressed Notes and Contaminated Properties in the US

Got dirty dirt? Let’s talk…

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