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Pre-development Process
Steps that may have to be taken by
the city before a brownfield can be redeveloped. Includes environmental remediation,
demolition, and gaining legal control of the site.
Pro Forma
Financial
projections including an income statement for a real estate project that shows capital
costs, operating revenues and expenses, and return on investment over a single or longer
number of years.
Project Area Committee (PAC)
A PAC is a committee elected by and
composed of residential owners and tenants, business owners and existing community
organizations in a redevelopment project area. If a PAC is required to be formed, a
redevelopment agency must consult with the PAC during and after the plan adoption process.
Property Tax
Property
taxes are calculated at about 1.5 percent of the current market value.
Prospective Purchaser Agreement
Prospective Purchaser Agreements
expands the circumstances under which an environmental regulator will serve and agree not
to sue a buyer of a property for existing contamination in exchange for an appropriate
cash or work contribution to the clean up of the property, or indirect benefits such as
potential environmental improvements, economic and social factors such as jobs,
infrastructure, increased tax base, and opportunities for disadvantaged groups.
Proposal
That
which is offered for consideration or acceptance.
Proposed Plan
A public participation requirement
of SARS in which EPA summarizes for the public the preferred cleanup strategy, the
rationale for the conference, reviews the alternatives presented in the detailed analysis
of the remedial investigation/feasibility study, and presents any waivers to cleanup
standards of CERCLA §121(d)(4) which may be proposed. This may be prepared either as a
fact sheet or as a separate document. In either case, it must actively solicit public
review and comment on all alternatives under Agency consideration.
Quit Claim Deed
A
document that releases a party from any interest in a piece of real estate.
Redevelopment Agency
A public body which exercises
governmental functions and has the powers prescribed in the Community Redevelopment Law
composed of either the legislative body of the community or members appointed by the
legislative body. Redevelopment agencies may be established by single cities or by groups
of cities. The redevelopment agency board may be the same as the city council or it may be
appointed by elected officials.
Request
For Proposals (RFP’s)
RFP’s ask
developers, for– or non-profit, for a detailed proposal of how they would develop a
site. The responses should include materials on market feasibility, urban design,
architecture, community appropriateness, financial performance, as well as detailed
statement of the developer’s past experience and qualifications.
Restrictive
Covenant
A
restriction on the use of the land usually set forth in the deed.
Return
of Equity
Measured
by the ratio of net cash flow to equity (net cash flow/equity).
Secured Creditor
A
lender who holds a security interest in collateral to ensure repayment of an
obligation.
Secured Creditor Exemption
A U.S. EPA rule attempting to
clarify the extent to which lenders may be held liable for cleanup costs under Superfund
at a result of foreclosing on a property. The rule was successfully challenges in February
1994, when a federal court determined that EPA had no authority to interpret questions of
liability.
Soft
Costs
A term used
for the expenses associated with consultant, legal, and permit fees, as well as
pre-leasing and contingency estimates. The amount and type of soft costs are included in a
pro forma.
Subordinated Financing
In brownfields redevelopment,
financing that is subordinated to the permanent mortgage holder, who has first title on
the property.
Tax Credit
An incentive that a developer can
use for having businesspersons and investors invest in a development project. It reduces
the tax liability of the investor by reducing their taxable income by a variable
percentage (depends on their taxpayer’s bracket). The Tax Reform Act of 1986 provides
a state volume limitation that gives the authority to determine the project that are
eligible for these credits.
Tax Increment Financing
Tax Increment Financing is the
authority under California’s redevelopment law for local redevelopment agencies to
pay for redevelopment projects with the future property tax revenue expected from the
development. In other words, to attract development, redevelopment agencies can offer to
finance redevelopment activities such as land acquisition, demolition, environmental
cleanup, and public infrastructure expansion or maintenance. These projects are designed
to increase the value of private property within the area, increasing overall property tax
revenues. It is this increase in tax revenue, or "tax increment", that pays for
development.
Title
A written document showing that the
owner has the rights to or ownership and possession of a property.
Title Search
A check of public title records to
ascertain that the seller is the legal owner and that there are no claims or liens against
the property.
Use Permit
A use permit is a type of variance
that permits an otherwise unacceptable use on the property without changing the zone.
Variance
A variance is a kind of permit that
is sought to sue an area within a specific site for the purpose other than what is already
allowed by its zoning requirement as set by the local agency.
Warranty Deed
A type of deed used to convey real
property in which the grantor makes formal assurance as to the quality of title to the
property. Warranty deeds, both general and special, are commonly used to convey real
estate.
Zoning
A measure enacted by the city or
county governments which divide a community into districts or zones within which permitted
and special uses are established, as well as regulations governing lot size, building
bulk, placement, and other development standards. The zoning ordinance consists of two
parts, the text and map.
Zoning Ordinances
A local law that contains detailed
standards and procedures to implement the general plan. The ordinance divides the city
into various zoning districts with different land uses permitted in those districts.
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