R-349
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RESOLUTION NO. ~
(Redevelop~ent Agency)
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
SANTA MONICA AWARDING $3,700,000 PROMISSORY NOTE OF
ITS SANTA MONICA DOWNTOWN REDEVELOPMENT PROJECT TO
THE BEST BIDDER AND REJECTING ALL OTHER BIDS
WHEREAS, the Redevelopment Agency of the City of Santa Monica (the
"Agency"), by Resolution No. 348 adopted April 11, 1978, authorized the sale
of a $3,700,000 Pro~issory Note for the Agency's Downtown Redevelopment Project
(the "Note") and directed that a Notice of Bids for the Note be published in
the manner specified In said resolution; and
WHEREAS, pursuant to said resolution and to the Notice InViting Bids,
sealed bids for the purchase of the Note were received, publ icly opened, examined
and read, and the contents thereof have been duly communicated to the Agency and
a tabulation thereof has been entered into the minutes
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. Each of said bids has been fully considered by the Agency
in conformance With the terms of the Notice Inviting Bids, and on the basis of
the lowest net interest cost determined In the manner specified In said Notice,
It appears to this Agency that the bid of
Union Bank
attached hereto, marked Exhibit A and ma~e a part hereof, shows the lowest net
interest cost.
SECTION 2. Said bid of
Un Ion Bank
be and the same is hereby accepted, and the Note is hereby awarded in accordance
With the terms of said bid.
SECTIO~ 3. All bids other than the one accepted in Section 2 hereof
are rejected.
SECTION 4. The Secretary of the Agency is hereby authorized and
directed to make immediate delivery of the check accompanying each rejected bid
to each unsuccessful bidder.
SECTION 5
The interest rates on the Note are hereby fixed at the rates
stated in the bid incorporated herein in Section 2 hereof.
SECTION 6. The Secretary of the Agency is hereby authorized and directed
to deliver the Note to the successful bidder upon payment therefor.
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-.::T l.\T ::J: <> N" ~.A.. N" ::a::
April 17, 1978
Redevelopment Agency of
The City of Santa Monica
Interest Cost In Accordance With the Above Bid:
Total Interest Cost (Assuming
Delivery ~4Y 1, 1978):
$3,652,250.00
5.8912%
Average Interest Rate:
Respectfully submitted,
UNION BAN
~<<~
~ '$.J
opk' son
sident
JOF:RH:ss
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SA~T\ \IONICA-80.!9-9
Bowne of SF. Ine, (415) 86-1-2300
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Redevelopment Agency
of the
City of Santa Monica
(Los Angeles County, California)
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OFFICIAL STATEMENT
Relating to
$5,700,000
Ocean Park Redevelopment Project
Tax Allocation Bonds, Series 1984
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THE DATE OF THIS OFFICIAL STATEMENT IS SEPTEMBER 11, 1984
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ProD! of September 4, 1984
SA:'>JTA 1\lONICA-8049-9
Bowne of 5.F , Ine. (415) 864-2300
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CITY OF SANTA MONICA
City Council
Ken Edward5, Mayor
Dolores M Press, A-fayor Pro Tempore
James P Conn
DaVId G Epstem
Wilham H Jennmgs
ChnstlOe E Reed
Denms Zane
Redevelopment Agency
Ken Edwards, Chw.rman
Dolores M Press, Vice ChaJrman
James P Conn
David G Epstem
Wilham H J enmngs
Chnstme E. Reed
DennIs Zane
John Jahh, Actmg City Manager and Actmg Agency Executive Director
C M DennIs, Director of Fmance
Mark Tlgan, Dlfector oj Commumty arui Economic Development
Emesto R Flores, EconomIC Development ~lyfanager
Robert M Myers, Cay Attorney
Lmda A Moxon, Deputy City Attorney
Ann M Shore, ClI)' Clerk and Agency Secretary
Special ServIces
Mornson & Foerster, Los Angeles
BOND COUNSEL
Weiser, Kane, Ballmer & Berkman. Los Angeles
SPECIAL COUNSEL
Katz:. HolliS, Coren & AsSOCiates, Inc , Los Angeles
FISCAL CONSULTANT
Bank of Amenca ~ T & SA. Los Angeles
FISCAL AGENT
Pame Webber Incorporated, San FranclS(;O
FINANCING CONSULTANT
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GALLEY 3-
Proot of August 30. 1984
SA~TA }'IOKICA-8049-9
Bowne of SF. Inc. (415) 864-2300
(LETTERHEAD TO COME)
September 11. 1984
TO WHOM IT MA Y COKCER~
The purpose of thiS OfficIal Statement ]5 to furrush mfonnatlOn regardmg S5.700.000
par value of tax allocation bonds to be Issued by the Redevelopment Agency of the Cay
of Santa MOllica (the "'Agency") to provIde add]tlOnal funds to aid In financmg redevelop-
ment projects known as Ocean Park Project :-';os 1(a) and l(b)
The matenal contaIned lfl th]S OffiCial Statement was prepared by Pame Webber
Incorporated as financmg consultant to and under direction of the Agency (WhICh firm Will
receive compensation from the Agency contingent upon sale and delIvery of the bonds and
w/uch firm has been given penmss]on by the Agency to bid on the bonds) for the mformatlon
of all who mIght become holders of the bonds descnbed herem
All of the followmg summanes of the Resolutton, the Commumty Redevelopment Law.
other applicable legislation. the Redevelopment Plans and other documents are made
subJect to the proV]SIOnS of such documents and legislatIOn, and do not purport to be
complete statements of any or all such proVlSlon~ Reference]s hereby made to such documents
on file With the Agency for further mformatlon m connection thereWith
The covenants of the Agency are fully set forth In ResolutiOn No , and thIS
OffiCIal Statement does not constitute a contract ",-nh purchasers of bonds Any statements
herem mvolvmg matters of opmiOn or estunates. whether or not so designated. are to be
construed as provlSlonal rather than factual
The opmlon of Morrison & Foerster, Los Angeles, California. approvmg the valIdity of
the bonds will be made available to the purchasers at the hme of ongtnal dehvery of the
bonds (See "The Senes 1984 Bonds-Legal Oplfllon")
The executIon and dehvery of thiS OffiCial Statement have been authorIZed by the Agency
REDEVELOPMENT AGE "iCY OF THE
CITY OF SANTA MO....IC>\
KEN Enw ARDS
Chairman
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Prool 01 AUlust 30, 1984
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SA:';TA "\10NICA-8049-9
TABLE OF CONTENTS
Page
TABLES A:-';D SCHEDULES
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Praaf 01 August 30. 1984
SANTA ~!ONICA-8049-9
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REDEVELOPMENT AGENCY
OF THE CITY OF SANTA MONICA
OCEAN PARK REDEVELOPMENT PROJECT
TAX ALLOCATION BONDS, SIRI ES 1984
Introduction
The ConsntutIOn and statutes of the State of Cabfonua proVIde for financmg of redevelopment projects
through the ISsuance of tax allocatlon bonds Such bonds are payable from property taxes collected from
WIthin a project area upon the Increase In assessed valuation of land. Improvements. personal and utIlIty
property as explaIned In greater detaIl herem PartiCIpatIon by the Federal Government III the cost of
redevelopment proJecr financmg IS also permuted and $7,945,000 In grants have been receIved for the
Ocean Park ProJect under the now dlscontmued Title I Urban Renewal Program
The Redevelopment Agency of the City of Santa MOnIca (the "Agency") was actIvated on August 13.
1957 by actIOn of the CIty CounCIl pursuant to the Commumty Redevelopment Law WIth the approval of
the CounCIl. the Mayor appointed the origInal five members of the Agency Simultaneously WIth Its creatIOn
Appointive members contmued to serve untIl May 1972 when the CounCIl declared Itself to be the Agency
and assumed all the rIghts, powers, dutIes. pnvileges and InmlUmneS vested In a redevelopment agency
The Ocean Park Project is the lll1tial prOject undertaken by the Agency The Ocean Park area was
first deSIgnated for study as a potential redevelopment project In Apnl 1958 when apphcatlOn was made
to the Federal government for survey and planmng funds With these moneys. the Agency staff commenced
preparatIOn of formal plans for an area encompassing some tlurty acres In the southwest corner of the
City In October of 1959. as a result of the budgetary reductIon In the amount of Federal funds aVailable
for redevelopment, the Ocean Park Project was dIvided mto two separate projects so that at least one
could go forward WIth the moneys allocated to the Agency The resIdentlal portIon of the Ocean Park
Project became ProJect No 1 (a) and was gIVen pnonty, while the commercIal area mvolvmg about ten acres
was deSignated Project No. 1 (b)
Ocean Park Project No 1 (a) was estabhshed WIth the adoptlon of the Redevelopment Plan for
ProJect ~o l(a) (the "1(a) Plan") by the CIty CouncIl on June 30.1960 and Ocean Park ProJect No I (b)
was established With adoptIon of the Redevelopment Plan for Project No I(b) (the "I(b) Plan") by the
Ctty CounCIl on January 24, 1961, In each case followmg requisite studies and heanngs by the PlaTlT11Tlg
COmmISSIOn, Agency and CIty CounCil Amendments subsequently have been made to both the I ( a) Plan
and the 1 (b) Plan, pnncipally to change permitted land uses
Ocean Park ProJect Nos I (a) and 1(b) (heremafter referred to collectIvely as the '.Ocean Park
Redevelopment Project" or the "Project") are bounded on the northwest by Ocean Park Boulevard. on the
northeast by ~eIlson Way, on the southeast by Barnard Way and on the southwest by State beaches and
parkmg lots of the Slate and aty
In March 1965 the Agency sold $1,415,000 of Ocean Park Project No I(a) Tax AllocatIon Bonds. the
proceeds of which were used for SIte improvements and payment to the City for ItS acqulS1tlOn and clearance
of property for street realIgnment These bonds were retrred III 1975. ten years III advance of thetr scheduled
malUnty No other bonds have been Issued for eIther of the two projects
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SA:VTA ~ZOl'\ICA-8049-9
Bowne of 5 F , Ine. (41-5) 864-2300
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The Project area encompasses approximately 30 acres and presently contalOs two 17 -story hIgh me
apartment bUlldmgs of 250 UDlts each, two semor cItizens complexes. Phases I and 2 of Sea Colony. a
condommlUm development with 230 umts and open space used as an mtenm park Proposed development.
whtch the CalIfornia Coastal CommiSSIOn has conditionally approved. mcludes replacement of the llltenm
park and open space wnh 153 condomlnmm umts, a tn-level subterranean and surface garage for 328 vehIcles.
one sWlmmmg pool and SIX spas. SIX tenllls courts. two paddle ball courts. one basketball court, walkways.
landscaplOg and a six-acre public park On August 17. 1983. the developer. Domllllon Property Company.
the CIty and the Agency executed an Amended Sale~ Agreement for Sale of Land for Pnvate Development
which IIlcorporates the condItIons of the Coastal CommIssIon's pern11l (See "The Ocean Park Redevelopment
Project-Proposed Development ")
Proceeds of the $5,700.000 Ocean Park Redevelopment Project Ta>; AllocatIOn Bonds. Senes 1984
(the "Senes 1984 Bonds"), will be used to fund mterest to October 1, 1985. to establiSh a Reserve Account
In the amount of maximum annual debt service. to pay costs of Issuance, Includmg the debt servIce msurance
premIum, If such msurance IS aV8.Ilable, and. together WIth other moneys, to pay the costs of public Improve-
ments and other costs necessary to the redevelopment of the Project area or reqUired by the Coastal Com~
mission permit. mcluding the acquiSItion and constructIOn of a pubhc park and the acquisition of land for
low and moderate mcome housmg
Under a constitutionally authoTlzed statutory process. all property taxes collected on any Increase
ill the assessed valuahon of land. Improvements, personal property and public UtUllY property In the ProJ-
ect area over that shown on the assessment roll for the base year (the 1959/60 assessment roll for Project
1(a) and the 1960/61 assessment roll for Project l(b)) may be pledged to repayment of mdebtedness
incurred In Project redevelopment Resolullan No , adopted September 11, 1984, which authorizes
the Issuance of the Series 1984 Bonds. pledges from such taxes ("Tax Revenues") the portion thereof
which constitutes, on a nonculnulatlve twelve-month baSIS endmg each October 1, an amount equal to 125%
of twelve-month debt sen'lce on the Senes 1984 Bonds and any additIOnal panty bonds (collectively, the
"Bonds") less any amounts then on deposll In the Interest Account and In the Pnnclpal Account plus an
amount. 1f any, necessary to mamtain the reqUIred Reserve Account balance ("Pledged Tax Revenues")
so long as any Bonds remam outstanding or unprOVIded for All Pledged Tax Revenues whIch are tn excess
of the amounts needed for annual debt service on the Bonds and amounts. If any. necessary to m8.Intam the
mimmum balance (maximum annual debt servIce) m the Reserve Account may. under certam conditions.
be used by the Agency for any redevelopment purpose
The 1984/85 tax roll for the Project reflects an Increase III assessed valuation of 582,344,921 over
the combmed base rolls of 513,145,576 and Tax Revenues of $861.000 are to be received Because of the
reSIdential nature of the Project, only S 150 of business Inventory replacement revenue was allocated by the
State ill 1983/84 Tax Revenues for subsequent years as prOjected by the Fiscal Consultant are shown In
Schedule 2 herem Pledged Tax Revenues will be apphed to payment of debt service on the Senes 1984 Bonds
as shown on Schedule 3 Remammg Tax Revenues, and any Pledged Tax Revenues m excess of debt servIce.
may be patd to the Agency and used for allY lawful purpose Tax Revenues due tn 1984/85 would have
covered tnaxnnum annual debt service on the Senes 1984 Bonds at an estimated 10 25 % tnterest rate by
1 26 times (For diSCUSSion of certam factors whIch mIght substanllally reduce Tax Revenues see "The Senes
1984 Bonds-Property Tax and Appropnatlon LlmltatJons" )
Santa MOllica is located on the PacIfic Ocean, 16 miles west of downtown Los Angeles The SIXth
largest CIty m Los Angeles County, ItS populatIOn on January 1. 1984 was estimated at 93,100 compared
WIth 88,314 at the tune of the 1980 census. The CIty IS known for Its excellent resldentJal neighborhoods
and equable climate and IS a center for electromcs. engmeenng, research and development, and allied
mdustnes
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Proof of September 4. 1984
SAXTA ~IONICA-8049-9
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THE SERIES 1984 BONDS
Authority for Issuance
The Senes 1984 Bonds were authorlZed pursuant to Resolution No of the Agency adopted
September 11, 1984 (the "Resolution") m full conformity with the ConstitutIOn and laws of the State of
CalJforrua, includmg the Community Redevelopment Law. bemg Part 1 of DIVISion 24 of the Health and
Safety Code of the State of CalifornIa (the "Law") and acts amendmg or supplementmg that Law
Description of the Bonds
The Senes 1984 Bonds consist of an aggregate prmclpal amount of $5,700,000 of the deno1Tllnation
of $5,000 or any mtegral multiple thereof, are dated October 1, 1984, are numbered consecunvely from 1
upward and mature on October 1 as shown below Interest IS payable semiannually on Apnl 1 and 0cto-
ber I each year Pnnclpal IS payable at the Secuntles SerVIces DIVISIOn of the Fiscal Agent of the Agency
m Los Angeles, California Interest wtll be paid by check or draft maIled to the owners of the Senes 1984
Bonds whose names appear on the regtstry books of the Fiscal Agent 15 days pflor to each Interest pay-
ment date
The serial Senes 1984 Bonds mature annually October 1, 1987 to October 1, 1999, inclUSive, and
term Senes 1984 Bonds mature October I, 2006, as set fonh m the followmg table
Principal PrrnClpal
Year AmoLlnt Year AmoLlnt
. 1987 S 95,000 1994 $ 190,000
1988 105,000 1995 210,000
1989 115,000 1996 235,000
1990 130,000 1997 255,000
1991 145,000 1998 285,000
1992 155,000 1999 310,000
1993 175,000
2006 3,295,000
Redemption Features
The Senes 1984 Bonds maturmg on or before October 1, 1994 are not subject to call and redemption
pnor to matunty. The Senes 1984 Bonds due on and after October 1, 1995 are subject to redemption,
at the optlOn of the Agency, from any source of funds, as a whole, or lD part in IDverse order of matunty
and by lot wltlun a matunty, on any mterest payment date on and after October 1, 1994, at the follow-
mg redemption pnces (computed upon the pnnclpal amount of the Senes 1984 Bonds called for redemp-
oon) together With accrued mterest to the date of redemption
RedemptIOn Dale
RedemptIon
Pnce
October I, 1994 and ApnJ 1, 1995
October I, 1995 and Apnl I, 1996
October 1, 1996 and Apnl1, 1997
October I, 1997 and April L 1998
October L 1998 or thereafter
102 %
10 Ph
101
Iom-'2
100
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Notice of redemptIon wIll be mailed to registered owners of affected Senes 1984 Bonds.
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Proof of August 30, 1984
SA:'\ITA \IONICA-8049-9
Bowne of SF, Inc. (415) 864-2300
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The term Bonds matunng on October 1, 2006 (except 5620.000 thereof scheduled to be paId at matu-
rity) are subject to mandatory redemptIOn m pan by lot pnor to their maturity date at the pnnclpal amount
thereof, plus accrued mterest thereon, m the followmg milllmum amounts on October 1 of each of the foUo\Ving
years
PrincIpal PrincIpal
Year AmotJnt Year Amount
2000 $345,00{} 2003 $460.000
200t 380.000 2004 5tO,000
2002 420,000 2005 560,000
Registration
The Senes 1984 Bonds wIll be Issued as fully registered bonds without coupons Ownership may be
changed upon the registration books mamtamed by the Fiscal Agent
Tax Status
The opmlOn of Bond Counsel referred to below will state that Interest on the Sefles 1984 Bonds IS
exempt from Federal mcome taxes and from State of Cahfomia personal illcome taxes under eXlstmg statutes.
reg:t1lauons, rulings and coun deCISions
Legal Opinion
The legal Opl1110n of Mormon & Foerster, Los Angeles, Cahfornla, Bond CounseL approvIng the valIdity
of the Series 1984 Bonds WIll be made avaIlable to purchasers at the time of ongmal delivery of the Senes
1984 Bonds, and a copy thereof wIll be pnnted on each bond
The legal OpIQlOn IS only as to legalIty and IS not mtended nor IS It to be mterpreted or rehed upon as
a disclosure document or an express or Implied recommendatIon as to the mvestmem quality of the Senes
1984 Bonds
Legality of Bonds for Investment and to Secure Public Deposits in California
SectIon 33663 of the Law proVides generally that the State and all publIc officers, mumcIpal corporatJons,
politIcal subdiVIsions and publIc bodIes, as weU as banks, bankers, trust compames, savmgs banks. mSUfance
compames and vanous other financial mstltutIons and fiduclanes may legally mvest funds WlthlO their control
In bonds or other obltgatlOns issued by a redevelopment agency Such bonds and other obltgatIons are also
made authonzed securIty for all public depoSIts
The Supeflntendent of Banks of the State of CalifornIa has ruled that bonds of a redevelopment agency
are by SaId statute, ebgIble for Investment by savmgs banks In CalIforma
Disposition of Bond Proceeds and Other Available Funds
The Resolution prOVIdes that proceeds from the sale of the Senes 1984 Bonds Will be allocated as follows
(a) To the Interest Account wIthm the Ocean Park Redevelopment Project Ta\: Allocation Bonds
Debt Service Fund (the "Debt ServIce Fund"), an amount which together With any accrued mterest and
premIUm received upon the sale of the Senes 1984 Bonds Will equal the amount of Interest payable to
and mcludmg October L 1985.
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PlOof of August 30. 1984
SAl\lA :\1ONICA-S049-9
Bowne of 5 F . Inc. (41.5) 864-2300
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(b) To the Reserve Account wlthm the Debt Sef\'lce Fund, zn amount equal to maximum annual
debt service on the Senes 1984 Bonds
(c) To the Ocean Park Redevelopment Project Tax AllocatIon Bonds Recevelopment Fund (the
"Redevelopment Fund") the balance of proceeds
The Agency expects to apply proceeds of the Senes 1984 Bonds m the amounts as follows
Reserve Account ReqUirement (Senes 1984 Bonds)
Funded Interest (1 year @ 1025%)
Allowance for D\scount BId (2 50% )
Bond Insurance PremIUm
Costs of Issuance
Redevelopment Fund
Total
S 681.000
584.250
142500
142500
100.000
4,049,750
55,700,000
The Reserve Account
Moneys m the Reserve Account WIll be WIthdrawn and used by tbe Fiscal Agent solely for the purpose
of replemshmg the Interest Account or the PnnCIpal Account m the event of any defiCiency m either account,
or of paymg the mterest on or pnnclpal of or redemptIon premIUms, If any, on the Senes 1984 Bonds and
any panty bonds (heremafter collectIvely referred to as "Bonds") If no other Agency moneys are lawfully
available therefor, or for the purpose of retIrIng all of the Bonds then outstandmg
A mlllllDum balance equal to maXImum annual debt serVIce on the Bends Will be maIntamed In the
Reserve Account Should the amount m the Reserve Account be less than the reqUIred mlmmum balance,
the Fiscal Agent wlll restore the balance by transfer of moneys from the Debt Service Fund Any moneys In
the Reserve Account III excess of the mImmum balance sball be transferred to the Debt Sen1ce Fund
The Redevelopment Fund
Moneys In the Redevelopment Fund may be used for the purpose of paymg any portion of the costs of
the Project. Includmg the cost of Improvements and other costs which may not benefit the Project exclUSively
but WhICh are necessary to the redevelopment of the Project and the dlSFosllIon of land therem. the repayment
of any advances made by the CIty and the necessary expenses m connectIon With the l~suance of the
Senes 1984 Bonds
Pledge and Allocation of Taxes
Under proViSions of the Cahforma ConstItutiOn and the Law, taxes on all taxable property III the Project
area leVIed by any taxmg agency when collected Will be dIVided as follows
(I) An amount each year equal to that amount whlch would have been produced by the. then
current tax rates apphed to the assessed valuatIOn of such property wlthm the Project area last equalIzed
pnor to the effective date of the ordmance approving the respectIve Redevelopment Plans (the 1959/60
assessment roll of the County for Project 1 (a) and the 1960/61 assessment roll for Project I (b))
wIll be paId mto the funds of the respectIve taxing agenCies.
(2) Taxes (mcludmg all payments. reimbursements and subventIons, If any. specIfically attnbutable
to ad valorem taxes lost by reason of tax exemptIons and tJ'I. rate hmltanons) receIved over and above
that amount ("Tax Revenues") wIll be depOSited III a speCial fund of the Agency
Under the ResolutIon, the Bonds are payable from and secured by a portIon of the proceeds thereof
and by a pledge of that portion of the first Tax Revenues received by the Agency equal to 125% of the
annual debt servIce on the Bonds for each 12-month penod endmg October 1 (less any amounts then on
depOSit m the Interest Account and PrmcIpal Account), plus an amount, If any, necessary to mamtaIn the
reqUired Reserve Account balance ("Pledged Tax Revenues") so long as any of the Bonds are outstandmg
or unproVided for
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P,uf of August 30, 1984
SAKTA :-'IONICA-8049-9
Bowne of SF. Inc. (415) 864-2300
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The Agency has no power to levy and collect taxes. and any leg'slanve property tax de-emphasIs or
provIsion of addltJonal sources of Income to taxmf! agenCies havmg the effect of reducmg the property tax
rate must necessanly reduce the amount of Tax Revenues and might therefore reduce the amount of Pledged
Tax Revenues that would otherwise be aVailable to pay the prmcIPal of and Illterest on the Senes 1984 Bonds
(See "The Senes 1984 Bonds-Property Tax and AppropnatIon LlffiltatIons" ) Likewise, broadened property
tax exemptions or any hmltatlOn on. or voluntary reductIOn 10, the rate of taxatIOn by taXing agenCIes could
have a simIlar effect
The Debt Service Fund
The Resolution provides that the Debt Service Fund Will be held by ,he Fiscal Agent Pledged Tax
Revenues will be deposIted 10 the Debt Service Fund and will be set aSide 10 the foIlowmg speCial accounts
wlthm the Debt Service Fund m the folIowmg order of pnonty
(1) Interest Account-On or before March 31 and SeJ'ltember 30 of each year. begmmng on March
31, 1986, an amount which. together wIth any money already contamed m the Interest Account. IS equal
to the aggregate amount of mterest becommg due and payable on all outstandmg Bonds on the next
mterest payment date
(2) PrmcIpal Account-On or before September 30 of each year, begmmng on September 30,
1987, an amount which. together With any money already contamed ill the Pnnclpal Account. 15 equal to
the pnnclpal amount of Bonds matunng or reqUIred to be redeemed through mandatory call on the next
succeedmg pnnclpal payment date. October 1
(3) Reserve Account-On or before September 30 of each year. ~n amollnt that wllI mamtam the
Reserve Account at an amount equal to maximum annual debt setvlce
(4) Holdmg Account-On or before September 30 of each year, begtnmng on Seplember 30, 1985.
all money then remammg ill the Debt SelV'lCe Fund after the above-described transfers have taken place.
to be used (I) to repleOlsh the Interest Account, the Prmclpal Account arid the Reserve Account. m such
order. or (n) to pay pnnclpal of or mterest or redempnon premiums. If any. on the Bonds III the event
no other money of the Agency IS lawfully aVaIlable therefor
Any excess money In the Holling Account shall, at the Agency's directIOn, be (I) used for redemptIOn
of any Bonds subject to call and redemptJon; (2) used for the purchase of Bonds at public or pflvate sale
at such pnces as the Agency in its discretIon may determme, or (3) If Tax Revenues equal to 125% of
annual debt serVIce have been deposited m the Debt Service Fund m such year (or If debt service for such
year was fully funded from Bond proceeds), the Reserve Account balance equals maximum annual debt
service and the Agency IS not then In default, transferred to the Agency and used for any lawful purpose
When suffiCIent funds have been placed With the Fiscal Agent to redcem all outstandmg Bonds, no
further Pledged Tax Revenues Will be allocated to the Fiscal Agent by !he Agency
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Property Tax and AppropriatIOn Limitations
Article XIlI A of the California Constitution
SectIon 1 of Article XIII A h1Tllts the max:lffium ad valorem tax on real property to 1 % of full cash
value (as defined ill SectIon 2), to be collected by the counties and apponlOned accordmg to law SectIon
2 of Article XIII A defines "full cash value" to mean "the County Assessor's valuation of real property as
shown on the 1975/76 tax: bill under 'full cash value' or, thereafter, the appraised value of real property
when purchased, newly constructed, or a change 10 ownership has occurred after the 1975 assessment"
The full cash value may be adjusted annually to reflect 1OflatlOn at a rate not to exceed 2% per year, or
reductIOn III the consumer pnce mdex or comparable local data. or reduced 10 the event of dechnmg property
value caused by damage, destructIon or other factors The California State Board of Equalization has adopted
regulatlOns, bmdmg on county assessors. mterpreung the meanmg of "change m ownershIp" and '"new
constructIon" for purposes of determmmg full cash value of property under Amcle XIII A
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Pro~f Qf August 30, 1984
SAXTA ~[OKICA-8049-9
Bo\yne of SF. Ine , (415) 864-2300
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A proposed lilinatIve measure which will appear on the ~ovember 1984 ballot would. If approved by
the voters. amend Article XIII A and Impose funher hmIlanons on taxmg agenCies (See "The SerIes 1984
Bonds-Property Tax and AppropnalJon Lumtauons-November ImtlatIve'" )
Implemenrrng Leg/slatlOn
LegIslauon enacted by the CalIfornIa Legislature to Implement Article XIII A (Statutes of 1978.
Chapter 292. as amended) provides that notwIlhstandlllg any other law, local agencIes may not levy any
property tax except to pay debt Sef\1Ce on mdebtedness approved by the voters prIor to July L 1978, and
that each county WIll levy the maxImum tax perm1lted by ArtICle XIII .-\ of $4 00 per S I 00 of assessed
valuatIon (based on the traditIonal practJce of usmg 25% of full cash value as the assessed value for tax
purposes) The leglslatlOll further prOVided that. for the 1978/79 fiscal year only, the tax levy by each
county was to be apportJoned among all taxmg agencies withIn the county III proportion to theu average
share of taxes le"'1ed m certaIn prevIOus years The apportIOnment of property taxes In fiscal years after
1978179 has been reVised pursuant to Statutes of 1979, Chapter 282 which prOVides relIef funds from
State moneys begmmng in fiscal year 1979/80 and IS deSIgned to pro.lde a permanent system for shanng
State taxes and budget surplus funds With local agencies Under Chapter 282. cItIes and countIes receive
about one-third more property tax revenues collected under ProposItion 13 mstead of direct State aId School
dIstrIcts receive a correspondmgly reduced amount of property taxes. but receive compensatIon directly
by the State and are given addIlJonal relIef Chapter 282 does not affect the denvatJon of the baSIC tax levy
(54 per 5100 assessed valuation) and the bonded debt tax rate EffectIve for the 1981/82 fiscal year. assessors
In California no longer record propeny values on the tax rolls at the assessed value of 25 % of market values
All taxable property IS shov,,1 at full market value Consequently the ta'{ of 54 per 5100 of assessed value
IS expressed as SI per $100 of taxable value In confoIDllty With thiS change of procedure, all taxable propeny
value mcluded m thIS OffiCIal Statement (except as noted) IS shown at 100% of market value and all tax
rates reflect the $1 per 5100 of taxable value
Future assessed valuatIOn growth allowed undel Article XIII A (new construction. change of ownership.
2% value growth) wIll be allocated on the baSIS of'snus" among the ]UnsdICttOns that serve the ta.x rate
area wlthm which the growth occurs Local agencies and schools will share the growth of "base"' revenues
from the tax rate area Each year's growth allocatIon becomes part of each agency's allocatIOn In the
followmg year The Agency IS unable to predict the nature or magmtude of future revenue sources which
may be prOVIded by the State to replace lost property tax revenues SectlOn 4 of Article XIII A prohibits
the Jevymg of any other ad valorem property tax above the hmIts set III Section 1, even With the approval
of the affected voters
The legIslatIvely prescnbed method of county assessors Illcreasmg real propeny valuatIon to reflect
the mflatlonary rate (but not to exceed 2% per year), commenclllg With the 1976/77 tax year. has been
upheld by the CahforDla Court of Appeal. but would be changed as a result of passage of the proposed
amendment to ArtIcle XIII A (See "November InItIatlve", below)
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'ruut 0' Augusl 30, '984
SA;\'TA MONICA-8049-9
Bowne of S.F , Inc, (415) 864-2300
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Busmess lnvenrory Exemption
LegLSlatlon enacted m 1979 and m 1980 abolished the assessment and taxation of busmess mventory
property and provided for replacement revenue, III part, for local agencies, mcludmg redevelopment agenCies
The Legislature has now enacted SB 794 (Statutes of 1984. Chapter 447). effectIve for the 1984/85
fiscal year, repealIng the prOVisions for State replacement revenue described above. but holdmg redevelopment
agencies harmless from the loss of such replacement revenue thrOUgh other State payments ("specIal sub-
ventIons") The speCIal subventions would be m amounts equal to the difference between the prevlOusly
receIved busmess Inventory replacement revenue and revenue denved by virtue of supplemental assessments
(discussed below) If m any year, however, the prevIous year's revenue from the supplemental tax roll
exceeds the former amount of busmess mventory subventIOn revenue. that prIor year's excess w1l1 be credited
agaInst the speCial subventIOn due
. Because of the reSidential nature of the Ocean Park Redevelopment Project. the amount of the replace-
ment revenue recelVed by the Agency has been mlmmal In each fiscal year (approXimately S 150)
Supplemental hen Dates
Leglslafton enacted last year (Statutes of 1983, Chapter 498) proVides for the supplemental assessment
and taxation of property as of the occurrence of a change of ownership or completlOn of new construction
PrIor law authoTlzed assessment only as of the March I tax hen date next follOWIng the change and thus
delayed the reallZanon of mcreased propeny taxes from the new assessments for up to 14 months Chapter
498 thus would have proVIded Increased revenue to redevelopment agencies to the extent that new constructIon
Or changes of ownership occur wlthm the boundaries of redevelopment projects pnor to the March 1 hen
date SubsequentleglslatlOn (Statutes of 1983, Chapter 1120). however, requued that the revenue generated
by these supplemental assessments be allocated solely to school distrIcts for the next two fiscal years. with
the eXceptIon of a small amount willch would be proVided to counties as reimbursement for IDcreased admrn-
lstratlve costs The recently enacted Chapter 447 (see "Busmess Inventory ExemptIon", above). limits the
allocatIon to school dlstncts to the 1983/84 fiscal year only Thus. effectIve for the 1984/85 fiscal year,
redevelopment agencies wIll be eligible to receive potential increases m revenues as prOVided m Chapter 498
(Additional mformahon concerning the Impact of thiS legIslatIOn IS contained In AppendiX B)
Article XIII B of the Callforma ConslltutlOn
Anlcle XIII B lImits the annual appropriations of the State and any City, county, school distnct,
authonty or other polItIcal subdlVlslon of the State to the level of appropnatIons for the pnor fiscal year, as
adjusted for changes m the cost of living, population and services rendered by the governmental entIty The
"base year" for establIshmg such appropnatIon lImIt IS the 1978/79 fiscal year and the limIt IS to be adjusted
annually to reflect changes in populatIon. consumer prices and certaIn mcreases In the cost of services proVided
by these public agenCIes
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Proof of August 3D, 1984
SA~TA ~1ONICA-8049-9
Bowne of SF, IDc, (415) 864-2300
GALLEY 13-
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AppropnatIons sub}e<;t to Article XIII B mclude generally the proceeds of taxes leVied by the State
or other entity of local government. exclusIve of cenam State subventions. refunds of taxes, benefit pay-
ments from retirement, unemployment mSUTanCe and disabIlity insurance funds "Proceeds of taxes" mclude,
but are not lImited to, all tax revenues and the proceeds to an entity of government from (1) regulatory
licenses. user charges. and user fees (but only to the extent such proceeds exceed the cost of proVldmg
the service Or regulanon), and (2) the mvestment of tax revenues Article XIII B Includes a requirement
that If an entity's revenues In any year exceed the amounts permitted to be spent. the excess would have
to be returned by revISIng tax rates or fee schedules over the subsequent two years To the extent such
tax revenues are reVised. Tax Revenues may be affected, SInce taxes allocated to the Agency are generated
by taxes leVied by certam taxmg agencies havmg junsmctIon Wlthm the Project area
Section 33678 of the Law prOVides that the allocation of taxes to a redevelopment agency for the purpose
of paymg pnnclpal of, or mterest on, loans. advances, or mdebtedness shall not be deemed the receipt by the
agency of proceeds of taxes leVied by Or on behalf of the agency WIthin the mearung or for the purposes of
Article XIII B, nor shall such ponlOn of taxes be deemed receipt of proceeds of taxes by, or an appropnatlon
subject to the limItation of, any other publIc body Wlthm the meanmg or for the purpose of ArtJcle XIII B
or any statutory proVIsIOn enacted m implementation thereof While the Agency would thus appear to be
excluded from the lImitatIOns of ArtIcle XIII B, the questIon of the constItutIonalIty of SectIOn 33678 IS
currently before the Callfonua appellate courts In two pendmg cases UntIl the Issue lS deCided by the
appellate courts, the Agency can gIve no assurance a, to the constitutIOnalIty or scope of SectIOn 33678
However, based upon an analYSIS of the ConstitutIOn and laws of the State of CalifornIa, Bond Counsel IS
of the opmlOn that the Call1ornia Supreme Court should hold that the Tax Revenues are not proceeds of
taxes wtthm the meaning of Article XIII B
November 1984 Imtiatlve
Arncle XIII A and Article XIII B were adopted pursuant to measures quahfied for the ballot pursuant
to California's constitutional initlattve process From tIme to tIme, other lmtiative measures could be adopted
by CalIfornIa voters The adopllon of any such mmalIves 1Tllght cause the Agency to receive reduced revenues.
or to Increase e'l:pendltures, or both One of the authors of the initIative that led to the adoptJon of Article
XIII A has qualIfied an IDIllatIve (Proposition 36) for the November 1984 general electIOn
If enacted, among the proVISIons of the resultmg constltutJonal amendment affectmg the Agency would
be the requrrement that values on the 1978/79 tax rolls be reconCiled to any annual mfiatlOnary
adjustments (lirruted to a maximum of 2,0% aIlllually) to real propeny values used m creatmg that year's
roll (I e, 1975/76 values and subsequent years' values for property wluch changed ownership or was newly
constructed) ThiS would result In a reductIOn of 1978/79 values and would affect the values of each parcel
In the Project area for each subsequent year. unless or untIl such parcel was reassessed under the proVISIOns
of Amcle XIII A The IIDtiatlve also would reqUire the refundmg of all property taxes paId, plus mterest, m
excess of the amount which would have been reqUired With the lower values The InitiatIve does not melude
any prOVISions for the method of refundmg moneys should such an action become necessary. State legislatIOn
would be reqUIred to estabhsh such a method
The Agency IS unable to predict whether tlus proposed mlt1atIve Will be adopted or to determme With
absolute cenamty tbe measure's finanCial Impact on the Agency, However. the Agency's Fiscal Consultant
has estImated that the adverse unpact of the proposed ImtlatIve w1l1 result In a one-tIme refund amount,
mcluding mterest, of 579,512, and an annual reduction In tax mCrement revenues of approxImately S8,315
m fiscal year 1984/1985 and thereafter (See AppendIX B ) Tax Revenues projected by tbe Fiscal Consultant
shown In Schedule 2 do not reflect the estImated adverse Impact of the proposed InItiatIve
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Proof of August 30, 1984
SAl\TA ~IONICA-S049-9
Bowne of SF. rne . (41.:;) 864-2300
GALLEY 14-
Issuance of Additional Bonds
Addll10nal ta'l: allocation bonds on a panty with the Senes 1984 Bonds ("Panty Bonds") may be Issued
provided
(a) The Agency shall be In compliance with all covenants set forth III the Resolution,
Cb) Tax Revenues (exclusive of State of Caltforma business Inventory subvention pa}mems)
received or to be received from the most recent assessed valuatIon of taxable property III the Project area
(as reported by the AudItor-Controller of Los Angeles County) and upon the most recently established
tax rates, are at least equal to 125 % of maximum annual debt service on all Bonds to be outstandmg
followmg Issuance of the Panty Bonds,
(c) Proceeds are depoSited to raiSe the mlOlmum balance in the Reserve Account to Lts requIred
level of maximum annual debt service and the balance (except for premIUm. accrued Interest and
funded Interest. If any, and except for any portion of such proceeds to be used to refund a portion of
the outstandmg Bonds) IS deposited III the Redevelopment Fund,
Cd) The Panty Bonds mature on October 1 and mterest IS payable April I and October I
each year
Investment of Funds
AU moneys held by the Agency or the Fiscal Agent pursuant to the ResolutIOn must be secured at all
times by oblIgatIOns elIgIble to secure depOSits of public moneys and must be of a market value at least
equal to the amount reqUired by law
Moneys In the Redevelopment Fund and the Debt Service Fund (mcludlOg the Accounts therem)
may. and upon wntten request of the Agency WilL be Invested In Federal Secuntles (as defined In the
ResolutIOn) or negotIable certificates of depOSit Issued by a natIonally or state chartered bank Investment
of moneys III the Debt Service Fund, Interest Account and PnnClpal Account must mature pnor to the
date on which the money represented by such mvestment IS estImated to be. required to be paId out under
the ResolutIon Moneys In the Reserve Account may, and upon wntten request of the Agency. shall be
!Dvested !D Federal Secuntles (as defined In the Resolution) which shall mature not later than ten years
from the date of purchase nor later than the final matunty of the Bonds All lllvestment !Dcome received
pnor to completIon of the financmg of the PrOject shall be deposited 10 the Redevelopment Fund and all
Investment lllcome received thereafter shall be deposited In the Debt Sen;lce Fund
Other Covenants
Other covenants of the Agency under the ResolutIOn are sumrnanzed below
(a) The Project will be completed \Vlth all practJcable dispatch In a sound and economical man-
ner and In accordance With the I (a) and 1 (b) Plans and the Law ;-':0 amendment to the Plans w1l1
be made which would substantIally 1D1palr the secunty of the Senes 1984 Bonds or the nghts of
Bondholders
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Proal 01 August 3D, 1984
SA~TA ~rO!\ICA-8049-9
Bowne of SF, Inc , (415) 864.2300
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(b) The Agency Wll! punctually pay, or cause to be paid, the pnnclpal and mterest to become
due on the Senes 1984 Bonds, and wIll comply with the reqUirements of the Law for the annual filmg
of a statement of mdebtedness With the Auditor-Controller of LDS Angeles County
(c) ~o other obhgatlons payable from Ta.x Revenues WIll be Issued havmg a hen upon the Tax
Revenues supenor to tbe lien of the Senes 1984 Bonds. and Panry Bonds may only be Jssued as pro-
Vided m the ResolutIOn
(d) The Agenc)' wIll at all tImes keep. or cause to be kept. proper and current books and
accounts (separate from other records and accounls} m which complete and accurate entnes wIll
be made of all transactIons relatmg to the Project and the Tax Revenues and the Pledged Tax Reve-
nues. and wIll prepare Wlthm 180 days after the close of each fiscal year a complete finanCIal state-
ment coverIng the Project and Tax Revenues and Pledged Tax Revenues certIfied by a certified
pubhc accountant selected by the Agency, copies of which WIll be furnished to any Bondholder upon
request
(e) The Agency wIll punctually pay. or cause to be paid, any lawful governmental charges
Imposed and all vahd claims for labor, matenals and supplies whIch If unpaid mIght become a lien
or charge which might Impair the security of the Senes 1984 Bonds
(n The net proceeds realIzed by the Agency from any eminent domam proceedmgs agamst
the Agency Will be treated as Tax Revenues
(g) The Agency Will not dIspose of more than 10% of the land area III the Prolect to pubhc
bodies or other entltJeS whose property IS tax exempt (other than property shown by the ] (a) and
l(b) Plans In effect at the date of adoptIOn of the Resolution as planned for pubhc use) If as a result
of such actIOn the secunty of the Senes 1984 Bonds or the nghts of the Bondholders would be sub-
stantially lmpmred
(h) The Agency will not use Bond proceeds In such a ma:lOer as to cause the Scnes 1984
Bonds to be classIfied as arbItrage bonds wlthm the meanmg of SectIon 103 ( c) of the Internal Reve-
nue Code of 1954, as amended, and the Income Tax RegulatIOns Issued thereunder
The ResolutIon also proVides that whenever any property m the Prolect area has been redeveloped
and thereafter IS leased by the Agency to any person or persons, the property shall be assessed and taxed
ID the same manner as pnvately-owned property, as reqUIred by SectIOn 33673 of the Law
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Remedies
Any Bondholder has the nght by mandamus or other appropnate remedy to compel the performance
by the Agency and Its members of the duties Imposed by the ResolutIon and by the Law
Refunding Bonds
The Senes 1984 Bonds may be redeemed and pald pnor to matunty, or paid at matumy. from pro-
ceeds of refundmg bonds Issued pursuant to law.
Amendment of the Resolution
The ResolutIon may be modified or amended WIth the ,,,ntten consent of holders of 60% of all Senes
1984 Bonds then outstandmg (exclUSive of Senes 1984 Bonds owned by the Agency or the City of Santa
MOnIca) No modIficatIon or amendment shall extend the matunty or mterest payment date. reduce the
mterest rate. redemption premIUm or prmclpal amount payable. advance the redemptIOn date or change
the monetary medIUm of payment Without the express consent of the holder of the Senes 1984 Bond
affected, and no modificatIon or amendment shall reduce Ihe percentage of consent reqUIred for amend-
ment or modificatIon The Resolutlon may be modified or amended Without Bondholders consent to con-
fer addItional nghts or powers upon the Fiscal Agent or to cure amblguJtIes or defects
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Proof of Sepfemller S, 1984
SANTA :\lONICA-8049-9
Bowne of SF., Inc, (415) 864-2300
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Bonds Not a Debt of the City of Santa Monica
The Senes 1984 Bonds are not a debt of the City of Santa MOnica, the State of California, or any of its
political subdivISIons.. and neither said City, State nor any of Its pol1l1cal SUbdIVIsions IS ltable therefor The
Senes 1984 Bonds do not constItute an indebtedness Wlthm the meanmg of any constItutIonal or statutory
debt ltmlt or restnction
REDEVELOPMENT AGENCY OF
THE CITY OF SANTA MONICA
Authority and Personnel
The Redevelopment Agency of the CIty of Santa Monica was actIvated on August 13. 1957, by action
of the City Council pursuant to the Commuruty Redevelopment Law With the approval of the CouncIl. the
Mayor appomted the ongmal five members of the Agency simultaneously WIth Its creatIon AppomtJve
members contmued to serve untIl May 1972 when the Council, pursuant to Section 33200 of the Commumty
Redevelopment Law as amended by California Statutes 1970. Chapter 1392, declared itself to be the Agency
and assumed all the nghts, powers, dunes. pnVlleges and ImmumtIes vested In a redevelopment agency
The current chaIrman of the Agency IS Mayor Ken Edwards who was elected to the City Council for a
four-year term m 1981 and was voted to hIS current posltlon m 1983 to serve for two years Mayor Edwards
IS a probation officer With the County of Los Angeles Mayor Pro Tempore Dolores Press IS VIce Chairman
of the Agency An offiCial with the Ret3.1l Clerks Umon. Ms Press was elected to the City Councllm April
1981 Other members of the Agency are the Rev James P. Conn who was elected to the City Counctl ID
Apnl 1981 and serves as mmlster at the Ocean Park Methodist Church; Denms Zane, a school teacher, who
was elected to hIS first term to the City CounCil In Apn11981, DaVid G Epstem. an attorney and commumty
orgaruzer, who was elected to the Clty CounCil III Apnl 1983, Wilham H. Jenmngs, an attorney. who IS
servmg hiS second term on the City COlmcil havmg been re-elected m April 1983; and Chnsnne E. Reed, a
homemaker and CitIzen actiVIst. servIllg her thIrd term on the CIty Council havmg been re-elected In Apfl11983
The Agency has no permanent employees and mstead relies upon City staff and outSIde consultants for
planmng, engmeenng. fiscaL legal, housmg development, mamtenance and property management senices
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Proof of AugUSl 30, 1984
SA.'JT\ ~[O\'"ICA-8049-9
Bowne of SF, Inc, (4151 864.2300
GALLEY 17-
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Powers
Redevelopment III the Stare of California is earned out pursuant to the Commumtv Redevelopment Law
(SectIon 33000 et seq of ,he Health and Safet) Cede) Secnon 33020 of the Law defines redevelopment as
the plannmg, development, replannmg. redesign, clearance, reCO'lstructIon or rehabIlltatlon. or any eomblOatIon
of these, of all or part of a survey area and the provIsion of such resldenlIaL commerciaL mdustnal. publIc or
other structures or spaces as may be appropnate or nece~sary III the mterests of Ihe general welfare. lllc1udmg
recreanonal and other facIlltJes IOcldental or appurte:Jant to them
The Agency IS charged \Vllh the responsibIlIty for elImmatlOn of blight through the process of redevelop-
ment Generally, thiS process 15 culmmated when the Agency disposes of land for development by the prIvate
sectOr, but before thIS can be aCComplIshed, the Agency must complete the process of acqumng and assemblmg
the necessary sites. relocatmg reSidents and busmesses, demolIshmg ti,;: detenorated ImprOVements, gradmg
and prepanng the sites for purchase by developers and proVIdIng for anclIlary off-slte Improvements
All powers of the Agency are vested m ItS seven members The Agency exercises governmental functIOns
In carrymg out projects and has suffiCiently broad authonty to acqUIre, develop. admmlster and sell or
lease propeny, mcIudlOg the fight of emment domam and the nght to Issue bOilds and expend then proceeds
The Agency can clear bUlldlOgs and other Improvements. can develop as a bUlldlllg site any real
propeny owned or acqUired, and m connection With such development ~an cause stre;:ts, highways and
sidewalks to be constructed or reconstrucled and pubhc utilitIes to be lllstalled
The Agency may, out of the funds avaIlable to It for such purposes, pay for all or part or the value
of land and the cost of bUildings, facll1l1es. structures or other Improvements to be pubhcly owned and
operated. to the extent that such Improvements are of benefit to the project area and no other reasonable
means of financmg IS avallable The Agency must sell or lease remmlllng property wlthm a prOject for
redevelopment by others In stnct conformity with the redevelopment plpn, and may speCify a perIOd wlthm
whIch such redevelopment must begm and be completed
Tax Allocation financing
The Law proVides a SUitable means for financmg redevelopment projects based upon an allocation of
taxes collected wlthm a project area The assessed valuation of a project area ~as{ equalized pnor to adoptIon
of the redevelopment plan, or base roll, IS establIshed and, C'l:cept for :lny penod dutIng which the assessed
valuatIOn drops below the base year level. the taxlOg bodIes thereafter receive the taxes produced by the
levy of the current tax rate upon the base roll Taxes collected upon any mClease m assessed vdluatton over
the base roll may be pledged by a redevelopment agency to Ihe repayment of any mdebtedness Incurred In
financmg or refinancmg the project Redevelopment agenCIes themselves have no authonty to levy taxes and
must look speCifically to the allocation of taxes produced as above mdlcated
Any propeny tax de-emphaSIS or prOVISion of addItIonal soarces of revenue to taxmg agencle<; havmg
the effect of redUCIng the property tax must necessanly reduce the amount of taxes that would othern'lse be
avallable to redevelopment agencies Llkevv"1se. broadened property tax exemptIOns could have a ~Imllar effect
(See "The Senes 1984 Bonds-Property Tax and Appropnatlon LUnItalJonsU)
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Other Projects
The Agency has one other active redevelopment project. the Downtown Redevelopment Project, wblch
was created With tbe adoption of OrdInance)/o 1021 of the City Counell on January 13, 1976 The Down-
town Project contams 10 acres and IS bounded by Second and Founh Streets. Broadway and Colorado A.venue
It contams a regional shoppmg center. Santa MOllica Place, of 510,000 square feet with two major tenants
and more than 100 speCialty shops The Agency sold 514.470,000 of Downtown Redevelopment Project
Parkmg Lease Revenue Bonds III 1978 to finance constructIOn of two garages provldmg 2,030 parkmg spaces
for the project
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Proof of AUIUSI 311, 1984
SAKTA \IONICA-8049-9
Bowne of SF. Inc, (41j) 864-2300
GALLEY 18-
THE OCEAN PARK REDEVELOPMENT PROJECT
Background
The Ocean Park Redevelopment Project IS the IDlnal project undenaken by the Redevelopment Agency
of the CIty of Santa MODIca The Ocean Park area was first designated for study as a potential redevelopment
project ill Apnl 1958 when applicatIOn was made 10 the Federal government for survey and plannmg funds
WIth these moneys, the Agency staff commenced preparatIOn of formal plans for an area encompassmg some
thrrty acres m the southwest comer of the City In October of 1959. as a result of the budgetary reducnon
In the amount of Federal funds aVaIlable for redevelopment. the Project was dIVided mto two separate
projects so that at least one could go fonvard wIth the moneys allocated to the Agency The resIdential portJOn
of the Ocean Park Project became Project No 1 (a) and was giVen pnonty. whIle the commercial area
Involvmg about ten acres was deSignated PrOject No 1 (b)
The Redevelopment Plan for Project No l(a) was approved by the City CouncIl on June 30, 1960 and
the Redevelopment Plan for Project No 1 (b) was approved by the CIty Council on January 24, 196 L m
each case followmg reqUIsite studIes and heanngs by the Planmng COIDOllsslOn, Agency and City CounCil
Amendments SUbsequently have been made to both Plans, pnnclpally to change permitted land uses
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P,oof of August 30. 1984
SA:"<TA ~mNICA-8049-9
Bowne of SF, Inc, (41.5) 864-2300
GALLEY 19-
Location and Surrounding Area
The Project compnses approxImately thrrty acres and IS located near Santa MODica's boundary with the
City of Los Angeles (VeIDce) and adjacent to the publ1c beach, The Project IS bounded on the northwest by
Ocean Park Boulevard. on the northeast by Neilson Way. on the southeast by Barnard Way. and on the
southwest by State beaches and parkmg lots of the State and City
Situated Wlthlh a mile and a half of the pnnclpal shoppmg and commercial areas of Santa MODIca, the
Project IS only sixteen miles from downtown Los Angeles and one mIle from the westerly termmus of the
Santa Momca Freeway, which affords easy access to the extenSive freeway ne!\\ork lmkmg major cmes of the
County with adjacent population centers
The surroundmg neighborhood IS composed of one- two- and three-story structures, mostly residential
One block east of the ProJect. along Mam Street. a sIgnificant resurgence of commerCial activities has occurred
with many restaurants, boutiques, and specialty stores now located there
Current Development
The Agency and DommlOn Property Company (formerly Lmcoln Property Company) had agreed to
an anginal sales agreement in 1977 for pomons of the Project on which market rate housmg, an on-site park,
off-Site beach Improvements and affordable housmg were to be developed Phase I of the market rate housmg
was completed ill 1980 (Sea Colony I and Sea Colony II) when disputes arose between the panles resultIng
in litigation
Two plans were developed to resolve the litigatIon, both of whIch received conditional approval from
the Coastal CommISSIOn. and the City, Agency and DommlOn Property Company ("Dominion") entered into
an Amended Sales Agreement for Sale of Land for Pnvate Development m August 1983 The alternate
plan selected by the City! Agency prOVides for 153 market rate condommwms (Sea Colony III), a 5 89-acre
on-site publIc park, off-Site beach Improvements and development of affordable housmg off-Site The
purchase pnce for the Sea Colony III site remaInS at the ongmally agreed upon 52.139.320 Other terms and
conditions are
DomlDlon Will develop Sea Colony III as 153 market rate condomimums
2 DommlOD wIll be responSible for Implementation of the Housing Assistance and RehabilItatIon
Program ("HARP") to proVide 80 umts of affordable housmg wlthm the Ocean Park coastal zone
Dommion Wlll contnbute the HARP structures to a chaTItable orgamzatIon deSignated by the City, IT
the contnbunon IS tax deductIble. WIthin two years from completion of Sea Colony III DommlOn IS
oblIged to expend $3,000,000 cash equity on the acqwsltlOn and rehabilItation of the HARP structures
3 The City will execute a public works contract and commence construction of the on-Site park
occupymg 589 acres Wltlun 120 days of conveyance of the Sea Colony III SIte to DommIon ThIS park
IS planned to contam SIX tenrus courts, two paddle tenms courts, one basketball conn, a play area and
pedestnan paths DommlOn IS to pay to the City $1,000,000 wlthm 30 days of the later of the execution
of the contract, commencement of constructIon or conveyance of the Sea Colony III site to DomwlOn
The park IS to be substantially completed wlthm 12 months from executIon of the public works contract
4, The City wIll execute a public works contract and commence constructlOn of the beach
Improvements wlthm 120 days of conveyance of the Sea Colony III site to DommlOn and will complete
such construction wlthm 12 months DommlOn is to pay to the City $ 1.000,000 under the same terms
as (3) above Major components of the off-sIte park and beach Improvements expected to cost
$4,000,000 mc1ude
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Proof of September 4. J 964
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a A redesigned and separaled bIkepath and pedestnan promenade extendmg from Bay
Street to the south city llIDlt
SA:\TA ~fONICA-8049-9
Bowne of SF, Inc. (415) 864-2300
.
b A 3 5-acre lmeaT park extendmg from Crescent Bay Park to the south City bmIt
c ExpansIOn of the eXIsting park at the foot of Ocean Park Boulevard to 4 0 acres. additIon
of 1 5 acres of parkmg and redeSign of concession and restroom facllltles, shade pavIllions, new
plCOlC areas and children"s play area
d RedesIgn of the entrance to the beach parkmg lot at Ocean Avenue and Ocean Park
Boulevard to expedIte movement of waItmg vehIcles
e RedeSign and repavmg of the entire parkmg area from Crescent Bay Park to the south
city hmlt and IDlProvement In pedestpan access to the beach
f. Improvements ro vanous streets m the area to llI1prove traffic clrculatJon
5 The Agency IS reqUIred to construct at least 55 unIts of housmg affordable to low and moderate
mCOIDe persons withm the area bounded by Plco and Lmcoln Boulevards. the city boundanes and the
PacIfic Ocean Such housmg IS to mclude a substantial number of famIly umts and IS to be commenced
WIthin one year of the start of frammg for Sea Colony III (expected to be January 1985). Affordable
housmg for low and moderate mcome persons IS defined by State law to be for those ha\lng mcomes
of less than 120% of the area median adjusted for famuy SIZe Site acqUIsItIon costs are esnmated at
$2,200,000 at three or more scattered sites ConstructIon costs are estlmated at approxunately 560,000
per urnt, or $3,300,000 Estimates assume one, two and three bedroom umts with an average umt size
of 850 square feet and a total bundmg area of 45,000 square feet Based upon a mIX of rent levels
at 25% of household IDcome, pnvate sector financmg of 52,000,000 could be supponed leavlOg approXI-
mately $3,500.000 to be proVided by the Agency The Agency expects development to be undertaken
by a not-far-profit sponsor
The Coastal CommISSIon III Its Notice of Intent dated May 26, 1983, reqUires that the Agency
put up letters of credIt In the amount of $1.000.000 for parkmg lot Improvements and $500,000 for
the on-SIte park before a per1Tllt WIll be Issued and requIres DomlDlon to lffiplement and complete the
HARP before a certJficate of occupancy for Sea Colony III WIll be Issued Height h1Tllts and vehicular
access reStnctlOns are also imposed
If Domlmon commences construction In January 1985 as expected, all unitS of Sea Colony III
should be completed by November 1986 and approximately $44,4{)O.OOO of addltJonal assessed valua-
tIon \vIII be added to the Project's tax rolls over the next several years (see Table 2 of AppendiX B)
The City and Agency expect to fimsh theu respectIve developments by November 1986
Proceeds of the Senes 1984 Bonds depoSited ill the Redevelopment Fund (estimated to be
$4,049,750) Will be used by the Agency to pay portions of the above me-nl1oned public Improvements
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- Ploof of Augusl 3D, 1984
SA~TA ~IO:-J"ICA-8049-9
BO,^Tle of S F _ Ine, (41.5) 864-2300
GALLEY 21-
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ESTIMA TED TAX REVENUES AND BOND RETIREMENT
Estimated Tax Revenues
Monevs denved each vear from Ihe levy and collectIOn of taxes on any Increase In the assessed valuatlon
of land, l~provements, p;rsonal property -and pubhc utlhty property I~ Ihe Project over and above the
1959/60 base roll for Project l(a) and the 1960/61 base roll for Prolect 1 (b) for such property are to
be allocated to the Agency. and a portion of those taxes ("Pledged Tax Revenues") are to be applIed to
the payment of mterest and pnnclpal of the Senes 1984 Bonds and for mamtenance of a minimum Reserve
Account balance equal to maximum annual debt service on all outstandmg Bonds Excess money III the
Debt Sen1.ce Fund may be used to purchase or call Senes 1984 Bonds pnor to matunty (See "The Senes
1984 Bonds--The Debt Service Fund~HoldIng Account ") Under cenam specified conditions the Agency
may Issue Panty Bonds (See "The Sefles 1984 Bonds-Issuance of AdditIonal Bonds ")
The Assessor of Los Angeles County win assess all real property In the Project (except pubhc utility
property) at 100% of fun cash value as defined m ArtIcle XIII A of the CahfornIa ConstJtutJon (see "The
Senes 1984 Bonds~Propeny Tax and AppropnatIon LimitatIons") Pubhc utIhty property IS assessed by the
State Board of EqualtzatlOn Shown below IS the combmed base roll assessed value of the Project area as
compared to the 1983! 84 assessed value As a result of the reSIdential constructIOn already completed m
the area, the Project enloys an mcremental assessed value of $82.344,921 for the 1984/85 fiscal year
SCHEDULE 1
REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
OCEAN PARK REDEVELOPMENT PROJECT
1984/85 INCREMENTAL TAXABLE VALUE
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1984/85 1984/85
Taxable Sase Year Incremental
Value ValLle Value
Secured
Land $34,395,101 $ 2,294.640 $32,100.461
Improvements 60,271,531 7,812,200 52,459,331
Personal Property 748,940 631,640 117,300
Total Secured 95.415,572 10.738,480 84,677,092
Less Exemptions 120,080 (120,080 )
~et Secured S95,415572 510,618.400 $84.797,172
Unsecured
Land $ $ $
Improvements 8,880@ 1,006,876 (997,996)
Personal Property 66,O45@ 1.521,272 (1,4S5,227}
Total Unsecured 74,925 2,528,148 (2,453,223 )
Less EXempllons 972 (972)
"'et Unsecured S 74,925 S 2,527,176 S (2,452,251 )
Total Secured and Unsecured 595,490,497 $13,145576 $82,344,921
Tax Revenue at SI 045375 per $100@ $ 860,813
CD Values shown for Fiscal Year 1984i85 are based on unequahzed taxable values reported by Ihe Los Angeles County
Auditor-Controller Reported values have been reduced by $3S 1.572 to exclude Identlfied unsecured assessmenls mcorrecth
Included m the lotal ProJecr area value
@ The tax rate shown for 1984i 85 IS an estimated rale based on the hlslofIcal declme m the tax overTlde rate smce
1978179
Source Katz' HollIS, Coren & AssOCiates, Inc. AUgLl5t 21. 1984
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Proof of August 3D, 1984
SAXTA ~10NICA-8049-9
Bow-ne of S F < Ine, (415} 864-2300
GALLEY 22-
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Any property tax levied by the County on real propeny becomes a hen on that property. A tax levIed
on personal propeny does not become a lien agamst the personal property, but may become a hen on cenaIn
real property owned by the owner of the personal property and located \vnhm Los Angeles County
Every tax whlch becomes a hen on real property has pnonty over all other liens on the real property,
arlsing pursuant to State law, regardless of the tIme of the creatIOn of other hens
In CalIfornia, property which IS subject to ad valorem taxes ]s clasSified as "secured" or "unsecured"
Secured and unsecured properues are entered on separate pans of the assessment roll mamtamed by the county
assessor, The "secured roll" is that part of the assessment roll contammg State assessed propeny and
property the taxes on which are a hen on real property suffiCient, m the OpInIOn of the assessor, to secure
payment of the taxes. Other property IS placed on the "unsecured roll"
The method of collectmg delinquent taxes IS substantially different for the two classIficatIOns of property
The taxlflg authonty has four ways of collectmg unsecured personal propeny taxes (1) filmg a CIVIl actIOn
agamst the taxpayer; (2) fihng a cendicate m the office of the county clerk spectfymg certam facts In order
to obtain a judgment lien on certam property of the taxpayer, (3) filing a certificate of delinquency for
record in the county recorder's office, m order to obtam a hen on cenam property of the taxpayer. and
(4) seIZUre and sale of personal property, Improvements or possessory mterests belongmg or assessed to
the assessee The exclUSive means of enforcmg the payment of delInquent taxes m respect of propeny on
the secured roll IS the sale of the property securIng the taxes to the State for the amount of taxes which
are delmquent.
A 10% penalty is added to delmquent taxes which have been leVied In respect of propeny on the secured
roll In additIon, property on the secured roll With respect to which taxes are delmquent IS sold to the State
on or about June 30 of the applicable fiscal year Such property may thereafter be redeemed by payment of
the delInquent taxes and a delInquency penalty, plus a redemptIOn penalty of 1 5 % per month to the tIme of
redemption If taxes are unpaid for a penod of five years or more. the property IS deeded to the Stale and
then IS subject to sale by the county tax collector A 100/,; penalty also :!ttaches to delInquent ta,xes m respect
of property on the unsecured roll and, further, an addlt1ona] penalty of 1.5% per moath begInS to accrue m
respect of such taxes begmnmg the first day of the third month fol1owmg the delinquency date
The valuation of property lS determmed as of Marcil 1 each year and mstallments of taxes le\1ed upon
secured property become delInquent on the followmg December 10 and Apnl 10 Taxes on unsecured propeny
are due March 1 and become delinquent August 31, and such taxes are levIed at the prIor year's secured tax
rate. It has been the Agency's experIence that the Tax Revenues (exclUSive of busmess mventory replacement
revenues) are receIved apprOXlmately 45% by January 15 and 45% through May 30. and the remamder
through August of the iollowmg fiscal year
Among the larger taxpayers located m the Project are the followmg whose properties comprISe
apprOXimately 49% of the total assessed value
Assessee
1984/850
Taxable Value
Use
General Telephone ,
Santa Momca Shores
Lmcoln Property Company (DornlDlon Property Company)
Nielson VIlla
Choa Property
Lundsberg Propeny
Gaehe PropertIes ,
Cahforma First Bank
Pomt Fermm Productlons
Fmdlay Ltd
Total
$16,656,340
13.116.332
10,686,782
1.723,126
1,014,937
858,883
821,941
816,000
759.084
746.895
547,200,320
1: lIhty
Resldenllal Apartments
Resldenllal Condommlums
Semor Cltlzen ReSidentIal
Resldenlial Condominiums
Resldenlial Condommmms
ReSIdentIal Condommmffis
ReSidential CondomlDmffi
Res]denllal CondomlDlum
Resldenllal CondomInIUm
@ ValuatIons shown are based on the State Board of EquallzatlOn's and the Los Angeles County Assessor's unequalIzed
1984/85 tax rolls
Source, Katz, HoDls, Coren & AssOCiates, lne
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Proor or August 30, t 984
SA:;.tTA ~WNICA-8()49-9
Bowne of SF, Inc, (415) 864-2300
GALLEY 23-
Over the past SIX years. the Agency has receIved Tax Revenues m the foUowmg amounts
Tax Revenues
Fiscal Prolect PrOject
Year No 1 (a) No 1(b) Total
1978/79 S 92,347 S S 92,347
1979/80 139,657 2.730 142,387
1980/81 281,180 81.158 362,338
1981/82 488,458 174,432 662.890
1982/83 545.530 223,811 769,341
1983/84~ 547.756 233,486 781.242
'CD Actual tax receipts, per Los Angeles County Auditor-Controller reports, Includmg busmess InVentory replacement
revenue (apprOXImately $150 annually) and pnor year redemptiOn payments
@Recelpts through August 17, 1984
Source Katz, HollIS, Coren & ASSOCIates, Inc
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SCHEDULE 2-
REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
OCEAN PARK REDEVELOPMfENT PROJECT
PROJECTED TAX REVENUES
(aDOs Omitted)
TOlal Value Over
Fiscal Real New Devel- Total Other Total Base of Tax
Year Properly.::!) opment@ Real Property Value 813,146 Revenue@
1984/85@ $ N/A $ N/A S 78,430 S17,061 ') 95.491 S 82 345 S 861
1985/86 78,430 2,139 80,569 17,061 97,630 84,484 872
1986/87 80,569 11,315 91,885 17,061 108.946 95,800 975
1987/88 91,885 9,969 101.854 17,061 118,915 105.769 1.062
1988/89 103,891 13,167 117.058 17,061 134,119 120.973 1,210
1989/90 119,399 7.878 127.277 17,061 144,338 13 1.l92 1.312
1990/91 129,822 0 129,822 17,061 146.883 133.737 1,337
1991192 132,419 0 132,419 17,061 149.480 136.334 1,363
1992193 135.067 0 135,067 17.061 152.128 138,982 1390
1993/94 137,768 0 137.768 17.061 154,829 141.683 1.417
1994/95 140,524 0 140,524 17.061 157.585 144439 1.444
<!: No trended growth has been assumed In F,scal Years 1985/86. 1986187 or 1987/88 In 1988/89 and thereafler.
an annual mflauonary mcrease equal to the maxImum mflahonary rale allowable under Artlcle XIIIA of the CalIfornia
ConstItutIon (two percent) has been assumed
@See Schedule of Taxable Value Added (Table 2)
@ Excludes Busmess Inventory Replacement revenue
@ Based on 1984/85 taxable values as reported by Los Angeles County Audnor-Conlroller, adJusled 10 reflect the
elImmatlon of unsecured assessments Incorrectly mcluded In IOtal Project value
Source Katz, HolliS, Coren & ASSOCIates, Inc
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Section 33675 of the Health and Safety Code
Section 33675 of the Law requITes each redevelopment agency to file With the county audItor, not later
than the first day of October of each year, a statement of mdebtedness certIfied by the chief fiscal officer of
the agency for each redevelopment plan which provides for the allocation of taxes The statement of indebted-
ness IS required to contain the date On which the bonds were delIvered, the pnnclpal amount, term. purpose
and mterest rate of the bonds and the oUlstandmg balance and amount due on the bonds Similar infor-
matIon must be given for each loan, advance or mdebtedness that the agency has mcurred or entered into
to be payable from tax increment The Agency has covenanted to comply With the annual filIng requirements
of thiS Section. (See "The Senes 1984 Bonds-Other Covenants".)
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Proof of AUIIISl 3D. 1984
SA]'\TA ~IONICA-8049-9
BO\vne of S F Inc. (415) 864-2300
GALLEY 24-
Section 33675 also provides that payments of tax allocations from the county audItor to tbe agency
may not e'(ceed tpe amounts shown on the agency's statement of mdebtedness The Secnon funher pro-
VIdes that the statement of Indebtedness IS prima facle eVidence of the mdebtedness of the agency, but
that the county auditor may dIspute the amount of mdebtedness shown on the statement 111 certam cases
and the disputed amount may be Withheld from allocation and payment to the agency ProvISIon IS made
for tIme lImits under whIch a dIspute can be made by the county auditor as well as proVISIOns for a deter-
nunatlon of the proper dispOSItIon of the matter by the Supenor Court m a declaratory rehef action The
Issue m any such actIon shall mvolve only the amount of the mdebtedness and not the validity of any
contract or debt mstrument, or any expendlture pursuant thereto Payments to a trustee under a bond
resolution or mdenture or payments to a pubhc agency 1U cormectlOn With payments by such public agency
pursuant to a bond Issue shall not be disputed In any actIOn under the Section
Debt Service
Schedule 3 below shows the projected debt service coverage of the Senes 1984 Bonds, which uses an
estimated borrowmg rate of 1025% and assumes that Ta>;: Revenues are receIved as shown m Schedule :2
~o purchase m the open market or early redemptIOn of Senes 1984 Bonds IS assumed
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SCHEDULE 3
REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
OCEAN PARK REDEVELOPMENT PROJECT
$5,700,000 TAX ALLOCATION BONDS, SERIES 1984
ESTIMATED ANNUAL DEBT SERVICE
Period Projected Total
EndIng Tax Par Value Debt Cover.
October 1 Revenues'::!> Outstandtng@ 1 nlereslG:; Prlnclpal1! ServIce age
1985 $ 861.000 $5,700,000 S 584,300 $ S 584,300 147'(
1986 872,000 5,700,000 584.300 584,300 149
1987 975,000 5,700,000 584.300 95,000 679.300 144
1988 1,062,000 5,605.000 574,500 105,000 679,500 156
]989 1,2]0,000 5,500.000 563,800 115.000 678,800 178
1990 1,312,000 5,385,000 552,000 130,000 682,000 192
1991 1,337,000 5,255,000 538,600 145,000 683,600 196
1992 1.363,000 5,110,000 523,800 155,000 678,800 201
]993 1,390,000 4,955,000 507,900 175.000 682,900 204
1994 ],417,000 4,780,000 490,000 190,000 680.000 208
1995 1,444,000<]) 4590,000 470,500 210,000 680500 212
1996 1,444,000 4,380,000 449,000 235,000 684,000 :.> 11
1997 1,444.000 4,145,000 424,900 255,000 679.900 212
1998 1,444,000 3,890,000 398,700 285,000 683.700 211
1999 1,444.000 3,605,000 369,500 310,000 679500 213
2000 1,444,000 3,295,000 337.700 345,000 682.700 212
2001 1,444,000 2,950,000 302,400 380,000 682,400 212
2002 1,444,000 2.570,000 263,400 420.000 683,400 211
2003 1,444,000 2.150,000 220,400 460,000 680,400 212
2004 ],444,000 1.690,000 173,200 510.000 683.200 21J
2005 1,444,000 1,180,000 121.000 560,000 681.000 212
2006 1,444,000 620,000 63,600 620,000 683,600 211
59,097,800 $5,700000 $14,797,800
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CD From Schedule 2-
o BegInmng of penod
@ At an assumed rate of 10 25%
@ Senal matLJnl1es and mandatory PnnClpal Account redemptIons
@ Assumed to remam constant 199.5 and thereafter
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Proof 01 August 30, 1984
SA:'>JTA ~lONICA-8049-9
Bowne of SF, Inc. (415) 864-2300
GALLEY 2.5-
THE CITY
General
The City of Santa Momca IS situated on the western sIde of Los Angeles County bordered by the
City of Los Angeles on three sides and by the Pacific Ocean to the west Santa Monica encompasses an
area slIghtly greater than eight square miles and has an eSTImated current populatIOn of 93.100 persons
which makes It the SIXth largest city In Los Angeles County
The Santa Momca Freeway passes through the approximate center of the City on an east-west course
and provides duect connectIOn With downtown Los Angeles, approximately 16 miles to the east About
SIX mtles southeast of the City IS the Los Angeles InternatIOnal Airport, which IS eaSily acceSSible VIa the
San Diego Freeway, about one mile beyond the eastern border of Santa MOnIca on a north-south course
The clImate IS generally mild With an average mean temperature of about 62= (F) Extremes range
from an average 1Tllmmum temperature of 560(F) to an average high of 680(F) Ramfall has averaged
about 14". ElevatIon ranges from sea level to 400 feet above sea level
Santa MODIca IS a center of electromc, engmeenng. research and allIed mdustrles Among Its largest
maDufactunng employers are G & H Technology (electromc assembly), Paper Mate (pens), and Lear-
Siegler (aerospace) General Telephone, St John's Hospital, Santa MOllica Hospital, and the Rand Cor-
poratIOn (research) are the largest non-manufactunng employers III Santa Momca
City Finances
Table L taken from the City's audited annual finanCial reports, proVides a companson of general
city income and expenses dunng the last five years
TABLE 1
CITY OF SANTA MONICA
GENEhAL FUND
SUMMARY OF REVENUES AND EXPENDITURES
YEARS ENDED JUNE 30
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60
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64
65
66
67
1979 1980 1981 1982 1983
Revenues and Transfers
Propeny Taxes $ 2,431.381 S 3,499 000 S 4.290.000 $ 5,383,939 S 6.518.796
Other Local Taxes 9519,468 12,934.000 15,066.000 17.130.467 17,070.847
Licenses and Permits 803.181 1,141,000 1.462.000 1,473.807 3,498710
Fmes, Forfeitures and PenaflIes 1.057.364 1.466.000 1 601,000 2,203,766 3,051,209
Interest and Rents 2.148,342 2,154,000 1.521.000 2.521.751 3,515,399
Revenue from Other AgenCies 2.206552 9,606.000 3.665,000 1.644,610 95.630
Charges for Current Services 3,287,222 2,040.000 2 208.000 1.809.634 763.361
Olher Revenue 451.848 684.000 383,000 1.851l.508 431,722
Transfers from Other Funds 3,299,928 900,000 7.041.338 640.160
Sulnotal 525,205,286 533524.000 531,096,000 541.067,820 $35.585,834
Expenditures and Transfers.
Pu bhc Safety $ 7,860,455 S 8,416,000 $10.818.000 512,179508 $12.739.678
Health, Welfare and Retirement 3,370,781 3.105,000 3.657,000 5.472,327 3.806,750
Parks. RecreatIOn and Culture 3,012.861 2.856.000 4,103.000 5,129 109 4.459.036
General Services 3,690.808 3,212.000 5,273.000 5,035.493 5.096,858
Engmeermg and Development 562,413 415,000 425,000 584,497 593,966
MIscellaneous 5,793,980 12.137.000 7.483.000 9.321.729 7,679,105
Transfer to Other Funds 487,000 65,028
Subtotal $24,291,298 $30,628.000 $31,759.000 537,722,663 534.440,421
Excess (DefiCiency)
Revenues Over Expenditures $ 913,988 S 2,896,000 S (663,000) 5 3.345.157 S 1,145,413
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Fund Balances and Reserves . S 12.5 86, 844 $15.482.844 $14,819,844 518,165,001 519,310.414
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Source CIty of Sama MOllIca Fmance Department
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Proaf of August 30, 1984
SAXTA !l.fONICA-8049-9
Bowne of S,F , Inc, (415) 864-2300
GALLEY 26---.
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Assessed valuatlon lD the City has shown a consistent growth pattern dunng the past eight years
mcreasmg from 51.698,084,000 In 1975/76 (convened to current assessment practIce w~ere total assessed
valuation equals 100% of market value and not 25% of market value as was the case m 1975/76) to
$3,950,329,000 m 1982/83 Table 2 provides a record of assessed valuatIons. tax rates. leVies, collec-
tIons and delmquenCle~
TABLE 2
CITY OF SANTA MONICA
ASSESSED VALUATIONS, TAX RATES. SECURED LEVIES.
COLLECTIONS AND DELINQUENCIES
Fisca!
Year
Tax Rates
(Per $100
Total Assessed Valuation) City Uncollected Percent
Assessed Secured Current Delin.
ValLlallon City Total Tax levy Levy quen!
S 350,220,000 51 19 $1052 53.787.502 $ 55.405 15%
424,521.000 1 19 1088 4,323.980 5 1.3 94 12
425,196,000 1 15 1081 4.461.742 37,565 8
504.438,000 105 1012 4.865,467 78,185 16
499,191,000 4 Sl 1.610,262 58,291 36
653,717,000 436 2,998,286 103,082 34
735,093,000 430 3,689.342 146.587 40
3,495.380,000CD 107 4,475,494 222,218 SO
3,950,329,00O::D 106 5182,774 251.227 48
4,38I504,QOOQ) 109 5.70S,064 292,511 51
1974175
1975176
1976177
1977/78
1978179
1979/80
1980/81
1981/ 82
1982/83
1983/84
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(!) Market Value (4 times pre.198Jl82 basIS of assessment)
Government and Administration
The City of Santa MOllica was Incorporated m 1886 and subsequently adopted Its CIty Charter m
1945 In 1947 a counCll-manager form of government was set up followmg a vote of the City's reSidents
and approval by the California legislature The City Council consists of seven members WIth overlappmg
terms of four years ElectIons are held every two years, at which time three Councll members or four
CounCil members are elected After each electIon, CounCIl members select one of their group to act as
Mayor, who then preSides over CounCil meetmgs
The City CouncIl. appomts, to serve at its pleasure, a City Manager who serves as Chief Executive
Officer and IS responSible for supervISIng day-to-day operations of the City and for carrymg out poliCies
set by the Council
Members of the CIty CounCIl are also members of the Agency as descnbed 10 an earlIer sectIOn of
thIs OffiCial Statement
Labor Relations
The City has adopted a procedure by which Its employees meet and confer With the City on all nego-
tiable matters under the Meyer-Mlhas-Brown Act.
Of the 1,2515 permanent City employees, most are represented by one of nme Unions, mcludmg
300 by the Teamsters Umon, 290 by the MUDlclpal Employees ASSOCiatIOn, 164 by the TransportatIon
Urnon, 144 by the Santa M01JJca Pohce Officers AssocIation and 92 by the Santa MomC3 Firefighters
ASSOCiation
There are currently multI-year contracts ID effect thrQugh JUDe 1985 and 1986. The CIty has not
expenenced IDtenuption ID CIty services due to labor dlsputes_
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Proof of AqgUSI 30. 1984
SA::\T >\. ~10NICA-8049-9
Bowne of SF, Ine, ! 415) 864-2300
GALLEY 27-
Building Activicy
Durmg 19i9/80, Santa MOnIca Issued oUlldmg perlTIlts wIth a record total valuanon of SI59.158.755
In contrast wIth Santa MODica's hlstoncal de'ie1opment actiVity, recenl years have brought an mcreased
level of commerCial and mdustnal bUllding actIVIty Santa MODIca's Ideal climate has attracted a sub-
stantial amount of new office development as older small commerCial bUIldmgs are replaced WIth modem
office bUlldmgs
Table 3 below IS a summary of total bm]dmg penmts lssued by the CIty as well as the revenue co]-
lected by the City for processmg applIcations The slowdown m Santa MOnIca's bUl]dmg actI~'Ity m 1982
and 1983 reflects the economic recessIOn which affected the constructIon mdustry nauonwlde Recovery
began ill 1983 and contmues In ]984 Valuanon of bUlldmg permits Issued In the first SIX months of 1984
totalled $42.114,000 Decreases In actlV1ty may also have resulted from uncertamty regardmg develop-
ment standards as a review and reVISIOn of the City's long range land use plan was undenaken AdoptIon
of the proposed Land Lse Plan by the Cay Council IS anticIpated In Fall ]984
TABU: 3
SANTA MONICA BUilDING ACTIVITY
1979/80
1981/82
1983184
1982183
1980/81
Total Permits Licenses. Approvals
Issued
Valuation of Bmldmg Permits Issued
Commercial
Resldentlal
8532
6,.1.44
7.250
9,869
7,786
5112.970 022 565.008.536 5 98,816,508 515810,628 $45,280.161
46.188.733 34,0]2,753 17,080.376 9,575.323 14,801.900
5159.158.755 599.021.289 $115,896.884 525.385.951 560.082,061
S 948.461 S 788,733 S 583,331 S 323.545 S 431.775
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Total
Construction PermIt Fee and Receipts
(Excludes Taxes)
Retirement System
Employees of the City are partiCIpants In the State's PublIc Employees' Retirement System (PERS)
under prOVISions of a contract between that system and the CIty The City has particIpated m PERS Since
July 1. 1944 Contnbunons to PERS are made by both employees and the City The City's cost vanes
based on whether the employee IS claSSified In the "Safety" (police, fire, etc) or "Mlscellaneous" (all
other) category As of July 1, 1983. Santa MODIca had 244 active, 53 maclIve and 236 retIred m the
Safety category and \vlll contribute an amount equal to 32 11 % of the 1983! 84 annual payroll for Safety
category employees, or 52.585.900 There are 999 active, 308 InactIve and 432 retired employees m the
Miscellaneous group for which the CIty will contnbute 1250% of the estimated 1983/84 payrolL or
S2.531,300
These contnbutIons by the CIty mclude amounts necessary to fund PERS's costs for both current
benefits and to fully amortize vaoous unfunded liabilItIes totalhng $36.943,300 not later than the year
2001 Safety membershIps account for $17,540.100 of the total unfunded hablhty
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Proof of August 30, 1984
SA:\"TA ~1ONICA-8049-9
Bowne of SF. Inc, (415) 864-2300
GALLEY 28
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Self-Supporting Operations
Santa MOnica operates an aIrport bus lme, cemetery. and pier and provides water and sewer service
A portion of the net mcome from these enterpnses IS transferred annually to the general fund A five-year
history of operanons 1S shown m Table 4 followmg
The Santa Monica Airport IS a 215-acre gener"l aViation airport, located at the southeastern edge of
the City It IS the base for approxunately 550 aircraft The City rents an average of 150 to 200 of Its own
aIrcraft tIe-down spaces. and also recelVes commJsslons on fuel sold at the Alrpon, operatIons which help
make the arrport a profit-makmg venture
In 1984. the City'S 136 buses carrIed almost 13 8 m11hon revenue passengers. while travelIng 3 9
mdhon m11es Ridership Jncreases every year due to excellent coverage (a bus route operates wIthm a
quarter-mile of almost every resident) and low cost (regular fares are 50~ V'mh discount fares aVaIlable
for the elderly, handicapped and students through the purchase of tokens) The City's Transportation
Department has also sponsored charter and excursion programs
The Woodlawn Cemetery Mausoleum was purchased by the City m 1976 and IS operated as a self-
supportmg enterpflse competitIve With comparable pnvate facIlities It IS located m the southeastern portion
of the CIty
The Water Department of Santa Momca IS operated as a self-supportlDg enterprise About 45 % of
the City's water IS supplIed by its 0'k"Il wells. stored III over 16 acres of well field~ .md reservOir grounds
on City-owned property mSlde and outside the City lImits The remammg 55% of the water 1S purchased from
The Metropolitan Water Dlstnct of Southern CalIfornia The City's modern. automated system debvers over
15 million gallons per day to 15,500 water accounts, at a cost of less than 22e per ton The CIty's own water
chemIst 5uperv1ses oyer 1,700 separate water qual1ty and safety tests per month in State-hcensed labora-
tones, to ensure that the highest standards are met before delIvenng the water to the customer's tap.
The Santa Momca Pier IS a Los Angeles County hlstoncal landmark buI!t at the turn of the century,
It currently contams vanous restaurants, amusement and other retaIl establIshments Its restoration and
reconstructIOn IS the object of a multI-mIllIon dollar reJuvenallon project, the first phase of whlch lS underway.
The PIer's famous 1900-vlDtage carousel has been completely restored Also meluded 1D Phase I of the
project IS the construction of a new entry-way to the PIer 10 contam a chlldren's park. deck space extensIOn
and add1ll0nal retatl space Constructlon IS scheduled to commence 10 Wmter 1985 FeaSibility analyses are
under review as to the actual reconstructlon of the Pier Further testmg wtll be done over the next several
months Once the prOject IS completed. It IS anticipated that addmonallmprovements wlll be made to the Pier
Sewage treatment IS prOVIded for the City by the Los Angeles County Samtatlon DJStnct's Hypeflon
Plant, located In El Segundo One sewer lIft plant eXists wlthm the City boundarIes Sewage treatment lS
self-supportmg from sewer trearment fees based on the amount of water consumed by the customer
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SAKTA :\1O:\'ICA-8049-9
Bowne of SF. Inc. (41.5) 864-2300
Proot 01 AagllSl 30, 1984
GALLEY 29
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TABLE 4
CITY OF SANTA MONICA
MAJOR UTILITY OPERATIONS
REVENUES AND EXPENDITURES
FISCAL YEARS ENDING JUNE 30
1978/79 1979/80 1980181 -981/82 1982/83
A,rport
Gross Revenue 579 491 S 814.000 $ 9(;7000 $1.019.101 1.044377
Operatmg and Mamtenance Expen~e 352.103 557.000 473.000 448,755 543,882
Depreclallon 45,000 46.231 45.735
Transfers lIn} Out 181.602 571.000 (337.0001 382,114 269.840
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"et Income (Loss) S 786 $ 1314.0001 $ 831.000 " 142001 182 920
CapItal Oullar S 57.389 $ S 62.000 S
MUnICIpal Bus Line
Gross Revenue 5,992,089 7,092,000 8,498.000 9,141.612 :0.036.832
OperalIn!! and Maintenance Expense 5,992,089 7,092.000 8,498.000 9,141.612 10.036.832
Depreclalion 41i7,305 827.000 838.000 982.255 1.225.689
"iel Income (Loss) ( 467.305) (821.000) (838.000 ) (982.455 ) ( 1.225,6891
CapItal Outlay S 1,030, IT:! $5,673.000 S 2,732 .000 S 469,284 $ 8,352.902
MUniCIpal Cemetery
Gross Revenue 313,448 274.000 312.000 330.162 385.569
Operanng and \.famtenance Expense 250.283 264.000 323.000 368.497 428.041
DepreCiatIOn 7.266 5,223
Transfers nn) Out (]5.Q00) (81.2141
"et Income (Loss) 63,165 25.000 (11,0001 35,613 147.6951
Capital Oullay $ 11.000 5.000 S 5.210 S
Water
Gross Revenue 3,749.646 2,936.000 3.481.000 8,135.556 7.813.727
Operacrng and Mallltenance Expense 3.303.327 2,648.000 3.388.000 4.327.538 4.566.319
DeprecIatIon 741.063 1.183.000 I 388,000 415,266 412,149
Transfers (In) Out (1,659,000 ) (550001
:--;el Income (Loss) $ 1294,744) S 764.000 $(1.295,000) 53.392.752 2.890.259
Capllal Ouday $ 864,151 S 689,502 $ 1.445.656 51.033 559 $ 892.051
Santa :\lollIca PIer
Gross Revenue 567,856 754.000 809.000 766,057 "'75.321
Opera[l1lg and lfam[enance Expense 470,5(}] 589,000 890,000 458.892 654.109
DepreCiation 59.239 44.762
Transfers rIn) Out (1.000 ) (25000)
l'o;et InCOme (Loss) $ 97.355 $ 166.000 S /81.0001 S 247 926 S 201.450
CapIlal Outlay S S 251.803 188.205 S 332.819 S 498.255
Sewers
Gross Revenue l.309.0oo 2,245.000 2.656,425 2.222.011
Operatmg and Mallltellance Expense 746.000 876.000 1.073.530 7493il
DepreCIatIon 102,279 114..19
Transfers (In) Oul 50.000 55,000
Ne[ Income 5 $ S 513,000 S U69.000 51,480,616 $ 1.303.22]
CaPItal Outlay S $ 30.106 S 348.958 $ 850,637 S 448.134
{D Water and Sewer Fund are combIned for 1978/79
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P,oof Qf AugUst 30, 1984
SA~TA ....W:-lICA-0049-9
Bo\'me of SF, Ine. (415) 864-2300
GALLEY 30
Direct and Overlapoing Debt
The CIty of Sama MOllica has no general obhgatIon bonds outstandmg. none are authonzed and the
City IS precluded by Article XIII A of the California Constitution from authonzmg such Indebtedness
Dlfect and overlappmg bonded mdebtedness IS shown III the followmg labulatlOn compiled by Callforma
Mumclpal Statistics, Inc , of San FranCISco. Cahforma
TABLE 5
DIRECT AND OVERLAPPING BONDED DEBT
CITY OF SANTA MONICA
Issuer
Percent
Applicable
Debt as of
October 9. 1984
Los Angeles County
Los Angeles County BUilding AuthOrIties
Los Angeles County Flood Control Dlstnct
).,fetropolItan Water DistrIct
Los Angeles CommuDlty College Dlstnct
Los Angeles eDIfied School DlstnCL
Santa MOOlca l:OIfied School DIstncI
City of Santa MODIca Parking Authonty and Redevelopment Agency
Total Direct and Overlappmg Bonded Debt
2 022 %
2022
2085
1 164
0010
0003
72 597
100
S 50S50
14,720665
6,133,201
5,331.248
326
3.203
2.123.462
17,595.0008
S45.957.655
RatIos to Assessed ValuatIOn @
Direct Debt
Total Debt
Per Capita RatIOS (population 93,100)
Direct Debt
Total Debt
Assessed Valuation
S 189
$ 494
545.327
042%
109%
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32
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34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Share of Authonz;ed and L'nsold Bonds
MetropolItan Water DIstrict
Los Angeles Counry Flood Control Dmnct
State School Budding Aid Repayable as of 10/9/84
$4.248.600
S 384,683
S
Q) Excludes Sene. 1984 Bonds to be .old
0$4.219,975,970 after deductIOn of 5161,527,785 tax mcrement allocatIOn
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2 Proof of Augusl 30, 1984
. GALLEY 31
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7
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27
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SA'\TA ~fONICA-8049.9
Bo,vne of SF, Inc. (415) S64-2.300
Economic Characteristics of Populatlon
FIgures concernmg !Dcome groupmg per household are shown m Table 6 The Oly of Santa yloTIlca has
a hIgher percentage of Its populatIOn m the hIgh Income group tl1an the 3ther areas It.s lower than the other
areas III the hIgher Imddle Illcome levels and meets or exceeds the other areas III low and moderate mcome
levels
TABLE 6
INCOME GROUPING FOR 1983
Income Per Santa Los Angeles Stale of United
Household Momca Cou nty California Slates
$ 0- 9,999 165% 172% 159% 188%
$10.000-19.999 233 220 21 3 235
520,000-34,999 295 285 29 I 307
535,000-49.999 157 179 190 169
$50,000 and over 150 144 142 10 I
Effective bUY-lOg IDcome III Santa MOUlca Increased by 34% between 1979 and 1983 compared to 38%
for Los Angeles County as a whole and 51 % for the State Santa MODIca's per household mcome was less
than Los Angeles County and the State of California but greater than the nanon as a whole (see Table 7
below)
It should be noted that per capita Income ID 1983 for Sanla MOnIca ($15,048) was higher than m Los
Angeles County (SlO,979), the State ($11.222), and the natIon ($9,890)
31
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37
38
39
40
41
42
43
44
45
46
47
48
49
SO
S1
52
TABLE 7
EFFECTIVE BUYING INCOME
(OOOomllled)
SaMa
Monica
Los Angeles
County
State of
California
Umted
Stales
Year
1979
1980
1981
1982
1983
MedIan Household
EffectIve Buymg Income 1983
(000 mcluded)
$ 921,440
988,098
1,094,342
1,239.248
L351.3 94
$188.288064
216.4.59.459
240,060.169
261.868,372
284.288.701
$1.618.642.884
1,814,166.815
2.012.116,899
2.169,679.437
2.329.209.922
$61,425,789
68,250.824
74.740,865
79.155,]46
84,749,032
$25,280
526.040
$23.420
$24.518
5a
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58
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61
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63
64
65
66
67
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2 Proof of Augusl 30, 1984
. GALLEY 32
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7
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13
14
15
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17
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19
20
21
22
23
24
26
26
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SA.\TA ~fONICA-S049-9
Bownl:' of SF. Ine, (415) 864-2300
In terms of retaIl sales between 1979 and 1983. Santa .\1omca IOcreased by 57o/c, well above the 23 %
to 30% IDcreases shown In Table 8 below for La> Angeles County and the State of CalIfornia Santa Momca
accounts for 1 2% of Los Angeles County's total population while Its retail saks volume represents over 2 3 %
of the County total One logical conclusIOn Is thai Santa MODIca serves as a retail center wnhm Los -\ngeles
County
TABLE 8
CITY OF SANTA MONICA
RETAIL SALES
(000 omitted)
Calendar
Year
Los Angeles
CountyQ:
Stale of
CallfornlaQ;
Santa
Monlca(i;
1979
1980
1981
1982
1983
S 87,270.460
94,210,919
101.665,786
102.008.817
113349875
$498,513
567.450
679.348
709,682
782.128
S27,264.393
29.706.332
31 724.831
31.081.240
33.570.253
Q; Source State Board of EqualizatIOn, Taxable Sale. III Callforma
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
61
52
Taxable transactIOns between 1979 and 1983 lUcreased by nearly 53%. whIch IS shghtly lov,er than the
lDcrease III volume of retaIl sales The larger lllcreases were noted m the General Merchamhse and the
Apparel categones, as shown m Table 9 followmg
TABLE 9
CITY OF SANTA MONICA
TAXABLE TRANSACTIONS 1979-1983
(000 omitted)
Type of BUSiness 1979 1980 198' 1982 1983
Apparel 5 28.210 5 34.613 S 51.653 S 53.473 S 54991
General merchandise 48.561 54,824 78.555 89,991 100.704
Eatmg and dnnkmg 85.836 104.383 115.347 125.200 130.675
Auto dealers and supplIes 131,382 137,283 159.455 172.918 213.121
All others 328.980 381,673 427,035 436.726 451.717
~
Totals 5622.969 5712.776 5832,045 5878.308 $95] .208
Source Cahforma State Board of Equahzalion
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60
61
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64
66
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67
1
2 Proof of Augusl 30. 1 S84
. GALLEY 33
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7
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SAXTA ~1O~ICA-8049-9
Bowne of SF. Inc, (41,5) 864-2300
Employment
Santa Momca's location In Los Angeles County, the second largest metropolitan area III the Umted
States, proVIdes access to vaned employment OpportullItIeS for Its CItizens. many of whom work outsIde
the City
The foUowmg Table 10 summanzes hlstoncal employment of nonagncultural wage and salary workers
In the Los Angeles-Long Beach metropolttan area over a five-year l'enod The figures presented are annual
averages whIch are estimated by the CalifornIa Employment Development Department The changmg employ-
ment figures reflect the growmg Importance of the serVIces sector
TABLE 10
LOS ANGELES-LONG BEACH METROPOUTAN AREA
ESTIMATED AVERAGE ANNUAL EMPLOYMENT BY INDUSTRY
NONAGRICULTURAL WAGE AND SALARY WORKERS
1979
1981
'983
1980
'982
~anufacturmg
RetaIl and Wholesale Trade
SerVIces
Government
Fmance, Insurance and Real Estate
Transportatlon. CommullIcatlons and Ctlhl1es
Construction
Mmeral Extraction
912.100
816900
829.300
482,900
234.600
200.800
122.400
13.000
3.612.000
916.100
820.700
857.100
475.300
239.300
201.400
122.400
14.400
3,646,700
924.900
814.100
808.700
482.800
224.200
198.300
119.800
12 000
-~
3584,800
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Total
Source State of Cahfom,a Employment Development Department
TABLE 11
LOS ANGELES COUNTY
ESTIMATED AVERAGE ANNUAL EMPLOYMENT AND UNEMPLOYMENT
OF RESIDENT LABOR FORCE
861.900
813.300
869.1 00
461.600
237.000
196.700
105.200
14,700
3.559 500
849.700
80B.200
882,700
462.000
235.900
194.200
94.600
12700
3.540.000
1979 1980 1981 1982 1983
Employed 3.447,000 3.544.000 3.481.000 3.432.000 3.377.000
Unemployed 202,000 250.000 258000 352.000 363.000
Total Work Force 3.649,000 3.794.000 3.739000 3.784000 3.740.000
Unemployment rate 55% 68% 69% 93<:;; 97%
Source Stale of Callforma Emplo\'ment Development Department
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85
66
67
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2 Proof of August 30, 1984
. GALLEY 34
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SA~TA ~IO:\ICA-8049-9
Bowne of SF, Inc. (415) 864-2300
Utilities and Community Facilities
Southern CahforflIa Gas Company IS the supplIer of natural gas to the Clt} and electncny IS offered
through the facllltles of Southern CahfoIDla Edison Company General Telephone Company proVIdes tele-
phone service
Santa MODIca has two major hospitals-Santa MOllica HospItal MedIcal Center and St Johns Hospital
Medical Center-plus numemus medIcal cllllICS and convalesc'='nt hosp'tals
The City has one mam hbrary and three branches, over 50 churches, two newspapers two radlO sta-
tIOns. a TV cable system. 22 savmgs and loan offices. 17 bank branches. ten parks, two playgrounds and a
mUnICipal pier
EducatIOnal facilIties In the City melude nine elementary schools. Iwo JUnior high schools. one high
school. a community college and a contmualIon school There are many other higher education Institu-
tIons located WIthin easy commutmg distance, such as the UnIversay of CalIforma at Los Angeles (UCLA).
the CnIversIty of Southern California (USC), CalIforma State UmversIty at Long Beach. CalIfornia State
UnrvcTSlty at Dommguez Hills and Loyola-Marymount Unl\'ersuy
T ransportatlon
Santa MOnIca is located adjacent to two pnncipal Cahfomm coastal highway routes and is bisected
by the Santa MOnIca Freeway, thus lInked to the Los Angeles Metropolitan Area and the Los Angeles
InternatIOnal AIrport
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
The Southern Cahfornla RapId Transit DIstnct's extensIVe network of bus routes meludes several
which serve the. Santa MOnica area and proVides mterface wIth other passenger carners. mcludmg Santa
~1onIca's bus system
The Los Angeles InternatIOnal Airport. only SIX mues from the City, IS the west's largest and bUSIest
commerCial airport It IS served by most major airlines as well as by numerous feeder hnes, charter ser-
vices and scheduled and non-scheduled aIr-freight carners Air traffic volume for calendar year 1983
lTIc!uded 33,095.648 passengers and 730,058 tons of aIr freight and mall
Deep water shIppmg facilities al Los Angeles and Long Beach Harbors are wlthm a short distance
from Santa MOnica
Los Angeles County IS studymg countYWide posslbllitIes for routes for a Metrorall system The CIty
has been actively Involved In diSCUSSions WIth the County. and Santa ;vIonIca IS bemg conSIdered for future
extenSIOns of the MetroraIl
56
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.
APPENDIX A
- f ..' ~( '_ . '._ .. ,/-. ,," > " . T " ''r'',1- ,~~._.:~ A.
r:;'1 PEAT
I ~ MARWICK
THE REDEVELOPMENT AGENCY OF r.-iE
CITY OF SANTA MONICA, CALIFORNIA
Combined Financial Statements
June 30, 1983
(With Accountants' Report Thereon)
.
.
.
r=1 PEAT
I ~ fv1AR\VICK
Peal. \lai""lck, \lllchell &. Co
Cel1ltied Pubhc ,>,ccDunlaOlS
555 SO'J~h F\""l\l.,~T S'l\..et
Los -\ngdcs. C~lltoml3 90lFl
The Members of the Redevelopment Agency of
the City of Santa Monica, California:
We have examined the combined balance sheet of the various funds and account
group of the Redevelopment Agency of the City of Santa Monica as of June 30,
1983 and the related combined statement of revenues, expenditures and changes
in fund balances (deficits) for the year then ended. Our examination was ~ade
in accordance with generally accepted auditing standards and, accord~ngly,
included such tests of the accounting records and such other auditing
procedures as we considered necessary 1n the circumstances.
In our op1nion, the aforementioned comb1ned flnancial statements present
fairly the flnancial position of the various funds and account group or the
Redevelopment Agency of the City of Santa ~onica at June 30, 1983 and the
results or operations of such funds for the year then ended, in confor~lty
with generally accepted accounting prlnc~ples applled on a basls conSiStent
with that of the preceding year.
-P~i: 7'1~ r10.i:{htf f &,
I I .
October 14, 1983
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.
WRITTEN CONSENT PURSUANT TO
GOVERNMENT CODE S53691(c)(2)
The Redevelopment Agency of the C1ty of Santa
Monlca hereby consents, as requ1red by Section 53691{c){2) of
the Government Code, to the acquisltion, as princ1pal, elther
alone or as a particlpant in a syndicate or other similar
account formed for the purpose of purchasing, directly or
indirectly, from the Agency all or any portlon of the
Agency's "Ocean Park Redevelopment Project Tax Allocation
Bonds, Ser1es 1984" by Paine Webber Incorporated, or to the
arrangement by said firm for such acqu1sitlon or
particlpatlon by a person controlling, controlled by, or
under common control wlth said flrm.
REDEVELOPMENT AGENCY OF CITY
OF SANTA MONICA
By 12. /11 ~
Secretary
Dated:
September 11, 1984
2
.
Project revenues
[ncremental p~opertJ [a~e5
Interest.
Rent
Ocher income
Total project revenues
T"E REDE~ELOP~ENT AGENCY OF THE
CITY OF S~~TA MONICA, CALIFURNIA
Combined State~nt of Reven~es, Expendieures
and Changes in Fund Balances (Deficits)
Year ended June 3D, 1983
Oo~ntown
Redevelooment
Project
S 843,080
450,41!>
I,L89,705
110,591
2,593,792
O~ean
Tax
Allocation
Fund
757,800
100,4&0
858,2&0
Park Redevelopmene Prolect
Federal Total
Allocation Ocean Park
Fund Redevelopwent
(R-37/44) froject
757,800
100,4&0
29,24\
29,241
.. H,,41
887,501
Total
(Memorandum.
only)
1,&UO,880
550,87&
1,189.705
139,832
3,481,293
Les. project expenditures
Program salarIes and administra-
tive r.09tS. including technical
and professional personnel 77 ,680 190,567 2,814 193,381 271,0&1
. Real estace acqui~ition 5,665 5,665 5,665
Interest 2,588,453 (100) 346,169 346,069 2,934,522
Site clearance and imp rov-ements 3,300 3,300 3,300
Relocation and co...n1ty
orga.niz;atlolJ 1,734 1,734
Reimbursed to Cicy for bond
payments 538,893 538,893
Bond principal paYment 190,000 190,000
Total project expenditures 3,396,760 199,432 348,983 548,415 3,945,17 5.
Excess (defiCiency) of
reven~e5 over {under)
expendicut'es (802,968) 658,828 (319,742) 339,086 (463,882)
F~nd balances (deficits) at
beginning of year (2,087,7110) 700,950 (3,873,6)0) (3,172,680) (5,260,380)
Fund balances (deficits) at
end of year $(2,890,&68) 1,359,718 (4,193,372) (2,833,594) (5,724,262)
.
See accompanying notes to combined financial statements.