The Uncertain Future of Redevelopment Projects in Lake Forest State Supreme Court Ruling Abolishes Redevelopment Agencies throughout California
A recent California Supreme Court ruling upholding State legislation abolishes redevelopment agencies and places the future of redevelopment activities in Lake Forest in jeopardy. The legacy of redevelopment agencies throughout the state can be seen in revitalized redevelopment project areas, economic growth, creation of jobs, increased property values, and attraction of new businesses. In Lake Forest, the legacy of the Redevelopment Agency can be seen throughout the Redevelopment Project Area, which extends along El Toro Road from the I-5 freeway to Trabuco Road. Over the years, Lake Forest has utilized its Redevelopment Agency responsibly and successfully to make significant contributions to the local community, such as transforming El Toro Road from an unattractive, traffic congested thoroughfare featuring a vacant, dilapidated K-Mart building to the revitalized “Arbor on El Toro” commercial district, home to The Orchard and Home Depot shopping centers.
Redevelopment builds relationships. Redevelopment activities are based on relationships. The Lake Forest Redevelopment Agency has fostered public-private partnerships, working with local business owners as they reinvest in the local community. These partnerships have helped attract new businesses to the City – with recent additions including SmartCo, The Habit, Bru Grill, and Café Rio. Unfortunately, because of the ruling, the Agency has had to indefinitely postpone the potential public-private partnership to improve access to the Hunter Court shopping center, home to Ross, CVS, Petco, and Café Rio. The Agency’s proposed investment of $250,000 in the necessary off-site improvements would have leveraged private investment by the property owner, allowing the owner to focus their financial resources on improving the parking lot and buildings.
Redevelopment supports infrastructure. In addition to revitalizing the project area, the Redevelopment Agency has helped the City complete important roadway projects. Earlier this year, the Lake Forest Redevelopment Agency contributed over $3 million to fund construction of three streetscape and traffic calming projects that are currently underway – Jeronimo Road, Rockfield Boulevard, and El Toro Road. Unfortunately, they will likely be the last projects assisted by the Agency. As a result, a number of projects that were in the works are now being re-evaluated. The Agency was forced to freeze negotiations with the OC Public Library regarding a joint funding agreement for exterior remodeling and parking lot improvements at the El Toro Branch Library. The Agency is also now limited in how it can sell and provide for the development of a 2-acre parcel next to the railroad tracks that was previously a source of blight and concern for local property owners. The Agency has had to halt plans to rehabilitate an Agency-owned four-unit apartment building that would have contributed to its neighborhood stabilization program.
Redevelopment keeps local tax dollars local. In addition to benefiting Lake Forest, successful Agency projects have generated sales and property taxes that benefit other community agencies. Over the past five years, the Lake Forest Redevelopment Agency generated $5 million for the Saddleback Valley Unified School District and $970,870 for the South Coast Community College District. These funds were used by the districts to pay for operations and facility improvements.
Redevelopment had a role in our community. All the projects that have been completed in Lake Forest, as well as those that were underway, have proven that redevelopment is one of the most powerful tools cities possess to build and improve communities. Despite the ruling, the City remains fiscally sound. With or without a Redevelopment Agency, the City will continue to pursue projects to maintain the high quality of life in Lake Forest that make it an ideal location to live, work and play.
The City is proud of the achievements of the Lake Forest Redevelopment Agency and the opportunities it has provided to the community. The City is hopeful that new legislative initiatives may allow for the reestablishment of these great community partners.
Lake Forest Redevelopment Funds on the Chopping Block?
You may have heard the recent uproar in cities throughout the state in response to Governor Jerry Brown’s 2011-2012 fiscal year budget, which includes the elimination of all 425 redevelopment agencies throughout the state, including Lake Forest’s. Why should you care? Because in Lake Forest, redevelopment builds and improves our community, promoting job growth and property values. Redevelopment also revitalizes and improves infrastructure and properties within the redevelopment area through projects such as the following:
El Toro Road Landscape and Improvement Project • Remedied traffic congestion • Beautified the roadway • Enhanced the pedestrian orientation of the corridor • Encouraged private property owners to reinvest in the area • Resulted in the creation of the “Arbor on El Toro” commercial district that includes The Orchard and the Home Depot Shopping Center
The Orchard and Home Depot Shopping Centers • Transformed dated and dysfunctional properties into new shopping centers • Provided additional retail, dining, and services to local residents • Provided a regional attraction and community focal point
Community Improvements • New traffic signals and storm drains • Development of a community room at the El Toro Library
Potential Upcoming Projects • Improvements to the El Toro Branch Library exterior and site • Landscape, lighting, and street improvements on Jeronimo Road, Rockfield Blvd., and El Toro Road
Last year, the State of California passed legislation, which required a payment of $1.2 million from the Lake Forest Redevelopment Agency, and a total of $1.7 billion from redevelopment agencies statewide, to help balance California’s budget. That was $1.2 million that came from a portion of the property taxes generated by the properties located in the Redevelopment Project Area in Lake Forest that should have been used by our community for our community. For example, the Agency shares its funds with the local school district. Over the past five years, the Lake Forest Redevelopment Agency generated $5,383,935 for the Saddleback Valley Unified School District and $ 970,870 for the South Coast Community College District. These funds were used by the districts to pay for operations and facility improvements.
Following the State’s take of local funds last year, voters statewide overwhelmingly passed Proposition 22 in the November election by 61% of the vote, to prevent the Legislature from raiding redevelopment agencies again. The League of California Cities believes the Governor’s plan violates the will of voters who supported Proposition 22, and has issued a press release stating their intention to fight the Governor’s Plan.
Although Lake Forest continues to remain fiscally sound, without a Redevelopment Agency in Lake Forest there will be significantly fewer funds available to put towards important redevelopment projects. Redevelopment projects are important to our community because they eliminate blight by improving public infrastructure and promoting revitalization of property, thereby advancing economic revitalization along El Toro Road.
If you want to get involved, call and write to your local elected official and let them know how you feel about the potential elimination of your Lake Forest Redevelopment Agency.
Senator Mimi Walters 24031 El Toro Road #210 Laguna Hills, CA 92653 (949) 457-7333
Assemblyman Donald P. Wagner 3 Park Plaza, Suite 275 Irvine, CA 92614 (949) 863-7070
Fresh & Easy Grand Opening Celebration
Fresh & Easy celebrated it grand opening on February 9, 2011. The celebration included many Lake Forest residents, the Lake Forest City Council Members, City staff, Fresh and Easy employees, and representatives from the Lake Forest Chamber of Commerce. Mayor Pro Tem Mark Tettemer presented a certificate to Thomas Chau, the store manager, welcoming Fresh & Easy to the city. Fresh & Easy celebrated their grand opening with a $1,000 donation to the Families Forward Organization. Megan Market, Development and Communications Manager for Families Forward, accepted the donation and stated that Families Forward would be using the donation to purchase food items at Fresh & Easy for families in need.
Fresh & Easy offers fresh food at low prices. It prides itself on using only high quality products and offers Fresh & Easy brand products containing no added trans-fats, artificial colors, or flavors. In addition to Fresh & Easybrand items, the store also offers a wide variety of national brand-name products. Fresh & Easy also strives to be energy efficient and minimize its environmental impact, reducing its overall cost and therefore offering lower prices to its customers.
The new Fresh & Easy is located near the intersection of Trabuco Road and El Toro Road at 22475 El Toro Rd. It re-tenanted half of the 30,000 square foot building formerly home to Vons. The other half will be tenanted by Walgreens and will open in the coming months. In addition to the renovations completed by Fresh & Easy, property owner/developer “Business Properties”, owned by Bud Smull, renovated the entire 75,000 square foot center. Working with the City of Lake Forest and Lake Forest Redevelopment Agency, Business Properties used the Craftsman-style architecture found in The Arbor and US Bank Building as the inspiration for the renovation project. The enhanced architectural features include entirely new facades, upgraded landscaping, a revamped parking lot, new signs and a pedestrian walkway, constructed by Butler Construction.
For more information on Fresh & Easy contact them at (949) 859-6051 or visit them online at www.freshandeasy.com. Check out Fresh & Easy today!
Lake Forest McDonalds Remodel Nears Completion
The McDonalds on Bridger Road in Lake Forest will be reopening February 1, 2011. The $900,000 remodel, which began on December 3, 2010, will bring an updated look to the 40 year old building. Renovations include a new Craftsman style facade featuring earth tone paint, brick and stone, and new cornice and tower roof elements, consistent with the Orchard shopping center. Improvements will also include a new parking lot, menu board, storage location, and larger cashier booth. The improvements will create architectural consistency with other recently renovated projects (SmartCO and Walgreens/Fresh & Easy Shopping Center) in the Redevelopment Project Area.
Click here to view the Orange County Register Article about the McDonalds Renovation.
McDonald’s Renovation is Underway
The McDonald’s, located at 23861 Bridger Rd, has started construction on the complete renovation to the buildings exterior. Originally built in the 1970’s, the current building featured a traditional McDonald’s franchise look, with a mansard roof and red and white facade. The building will undergo a complete renovation is part of a company-wide rebranding effort. Once construction is complete, the improvements will include, repaving and restriping the parking lot, a new menu board, a 187 sq ft addition to the building to accommodate a new storage area and cash booth, new exterior earth-tone paint, brick and stone accents, wooden trellises, and enhancements to the roof including a new tower and cornice elements. The improvements will make the McDonald’s building consistent with the Craftsman architectural theme found throughout the Project Area.
Smart & Final Expansion Complete
Smart & Final has completed its renovations and expansion. The building, located in the Twin Peaks shopping center on El Toro Road, originally constructed in the 1970s and went under a dramatic transformation to become the new home of “Smart Co.”. Interior improvements included combining an additional tenant suite adding floor space for new merchandise as well as a deli counter and bakery. Also, the exterior improvements included architectural enhancements consistent with the Home Depot Center and the Orchard and feature stone veneer columns, a prominent overhead trellis, and also two new shed roofs and a gable roof. New landscaping and a pedestrian walkway in front of the store furture complement the fresh-new look of the building.
El Toro Road/Trabuco Road Shopping Center
Business Properties, the owner of the approximately seven-acre shopping center located on the southwest corner of El Toro Road and Trabuco Road, commenced renovations of their property which will welcome two new tenants; Walgreens and Fresh & Easy.
Walgreens and Fresh & Easy will be re-tenanting the vacant tenant space in the center formally occupied by Vons. The 31,000 square foot tenant space will be divided between the two new tenants. The proposed architectural improvements to the center include a hipped roof, earth-tone colors, ledge stone veneer base columns, and Craftsman lighting fixtures.
The proposed project will also enhance the landscaping along the main driveway and parking lot with the addition of over 50 trees, shrubs and potted plants. Along with the enhanced landscaping the project will include a primary entryway into the center to provide pedestrian access directly from El Toro Road, and feature a meandering sidewalk and two decorative arbor structures. When completed, the improvements will significantly enhance the appearance of the shopping center. Construction will continue for the next few months with Fresh & Easy expected to be open for business sometime in November and Walgreens opening in 2011.
Redevelopment Agency Supplemental Educational Revenue Augmentation Fund Payment
On May 10, 2010, the Lake Forest Redevelopment Agency was required to make a Supplemental Educational Revenue Augmentation Fund Payment (“SERAF”) to the State of California totaling $1,209,535. The payment was required as a result of a bill, ABX4-26, passed by the State legislature shifting $2.05 billion in local redevelopment funds to the State. For more information about ABX4-26, click here . For more information about the City of Lake Forest Redevelopment Agencies, click here.
HABIT BURGER NOW OPEN IN LAKE FOREST
Irvine based Habit Burger has now opened its second Orange County restaurant in The Orchard Shopping Center suite formerly occupied by Johnny Rockets. The casual restaurant has both indoor and outdoor dinning, and specializes in charbroiled hamburgers, sandwiches, shakes and malts. For a menu and more information, please visit http://www.habitburger.com/.
CAFE RIO MEXICAN GRILL GRAND OPENING IN HUNTERCOURTSHOPPING CENTER
The City of Lake Forest is proud to welcome Cafe Rio as the newest restaurant in the Redevelopment Project Area. Located at 24312 Rockfield Boulevard, at the corner of El Toro Road, the restaurant features a menu inspired by the Rio GrandeValley regions of Northern Mexico, Texas, and New Mexico. Encompassing a completely renovated façade, the restaurant occupies the space formerly leased by PC Club Lake Forest. This is the first location in California for the popular Utah-based chain. For a menu and more information about the restaurant, please visit http://www.caferio.com/.
Previously vacant building Newly renovated façade
SUSHI IZAKAYA GRAND OPENING
The City of Lake Forest welcomed its newest restaurant, Sushi Izakaya Rei, to the Orchard shopping center on November 20, 2009. A grand opening celebration and ribbon cutting event was held and was attended by the City of Lake Forest, representatives from the Lake Forest Chamber of Commerce, and staff from Congressman John Campbell’s office. Sushi Izakaya Rei specializes in casual style Japanese cuisine and is located at 23702 El Toro Rd, Unit S6A. For more information, contact the restaurant at (949) 770-3280 and http://www.sushiizakayarei.com/.
HOOTERS RESTAURANT GRAND OPENING
Hooters Restaurant celebrated its grand opening on Friday, November 13, 2009. The City of Lake Forest, representatives from the Lake Forest Chamber of Commerce, and staff from Congressman Tom Campbell’s office were on hand to present certificates welcoming Hooters to the city. The celebration included a tour of the facility and appetizers for attendees.
Hooters is located at located at 24356 Swartz Drive, near the intersection of El Toro Road and the San Diego Freeway.The new 3,500 square foot location includes 29 high definition flatscreen televisions and seating that can accommodate up to 256 guests.The restaurant replaces a pad building that was vacant for several months. As a result, the restaurant will continue to enhance the economic diversity of the Project Area and represents the continued redevelopment of the El Toro Square retail center and the El Toro Road commercial corridor.
DENNY'S RESTAURANT
In May 2009, the Agency approved a new Denny’s Restaurant located in the Bell Tower shopping center. The project consisted of interior and exterior façade modifications including new paint, stonework, and awnings. The restaurant, which is immediately adjacent to El Toro Road, replaced the vacant Baker’s Square Restaurant. Additionally, the building incorporates the El Toro Project Area’s Craftsman-style architecture and a significantly improved appearance. The restaurant’s nationwide name recognition and successful operations at other locations will provide an economic boost to the shopping center and the Project Area.
The first phase in demolition of the former K-Mart building began on March 10, 2005, with the adjacent buildings demolished in November 2005. Final grading was completed in spring 2006 with new construction of the Home Depot Office/Retail center starting in May 2006. Construction of the Home Depot Office/Retail center, featuring Craftsman-style elements was completed in 2006. The Buchheim family, who owns this 15-acre site and their development partner, Greg McClelland of GDM, LLC, built a new Craftsman style shopping center that features restaurants and shops along with a Home Depot. Home Depot held its grand opening in November of 2006. Several of the businesses displaced by redevelopment of the property returned to the new retail shops. Returning tenants included Beautiology (formerly El Toro Beauty Supply), Watch Tech, Mr. Wok, Rite Price Pharmacy, and Baskin Robbins. New tenants include Wachovia Bank, Coffee Bean & Tea Leaf, Chipotle Mexican Grill, Sport Clips, and Batteries Plus.
Renovation of the former Saddleback Valley Plaza began in December 2004. WESTRUST, one of California’s leading retail developers, now owns the entire site and has transformed it into a premier shopping destination called “The Orchard at Saddleback.” This new 279,000 square foot center incorporates the Craftsman’s style of architecture and includes a central “Main Street with large areas dedicated to plazas and gathering places. The first phase of new buildings opened during the fall of 2005 with tenants that included Petsmart, Shoe Pavilion, and Home Goods. Phase II construction began in February 2006 and was completed by 2007. The premiere center is now a cornerstone feature in The Arbor. Phase II brought a variety of dining, shopping, and service venues. It furthered the success of Phase I with shops that are home to Ralph’s, Lucille’s Smokehouse BBQ, Carino’s Italian Grill, Boneheads, Pier 1, and the “Main Street Stores.” Click here to view pictures of The Orchard Groundbreaking Celebration, demolition and the start of the rebuild construction
