R-401 (2)
,
.
.
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RESOLUTION NUMBER 401 (RAS)
A RESOLUTION OF THE SANTA MONICA REDEVELOPMENT
AGENCY DETERMINING CERTAIN PARKING AND PUBLIC IMPROVE~ENTS
TO BE OF BENEFIT TO THE DOWNTO~N REDEVELOPMENT
PROJECT AREA AND DETERMI~ING THAT NO OTHER
REASONABLE MEANS OF FINANCING SAID PARKING
AND PUBLIC IMPROVEMENTS IS AVAILABLE TO THE
CITY OF SAN7A MONICA; AUTHORIZING THE PAYMENT BY
THE AGENCY TO THE CITY OF SANTA MONICA OF
THE COST OF CONSTRUCTION AND INSTALLATION OF SUCH
PARKING AND PUBLIC IMPROVE~ENTSi AND APPROVING AND
AUTHORIZING THE EXECUTION OF A COOPERATION AND
REIMBURSEMENT AGREEMENT BETWEEN THE CITY AND
THE AGE~CY
WHEREAS, the Agency deslres to enter into a Cooperatlon and
Relmbursement AgrE'effient (attachE'd hereto as Exhlblt nAil) wlth thp
Clty of Santa Monlca regardlng paympnt to the Clty for the value
and cost of C?rtaln parklng and publlc lmprOVeffiE'nts of beneflt to
the Downtown Redevelopment ProJect Area; and
WHEREAS, Callfornla Health and Safpty Code SectIon 33445 re-
qUIrE'S thp AgE'ncy to determlnp that sald parkIng and. publlC lm-
prOVE'ffients arE' of beneflt to the RedE'vE'lopment ProJect Area prIor
to maklng said payments and that no othpr reasonable means of
f lnancing saId par kIng and publlc ImprOVPTIlents IS aval1ablp to
the CI ty i and
~.qHEREAS, Health and Safety Code SE>ctlon 33679 reqUIrE'S that
prlor ~o the cowffiltment by the Agpncy to use tax lncrpmpnt funds
J
for thf> purpose of paYlng all or part of the valuf> of the land
for and the cost of thp Installatlon and constructlon of any
publlcly owned bUlldlngs, the Clty CouncIl hold a publIC hE'arlng
to conSIder thf> maklng of such pay~ents by the Agpncy, thp benp-
f 1 t of such lmprovempn ts to thE" RedpvE'lopment Pro] pct Arpa, and
- 1 -
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.
.
thp avallablllty to thp CIty of alternatIvP means of flnanclng
such Improvements;
WHEREAS, on Dpcembpr 17, 1985, thp City CounCll and thp Agpn-
cy held a duly noticed publIC hearIng on the proposed payments by
the Agpncy;
WHEREAS, the> Issue of bpnpf 1 t to the Downtown Pro] pct Area,
and thp alternatIve means of financlng the 1mprovements have bee>n
conslde re>d in the> Report en tl tle>d "Summary Re>por t Per talnlng to
the Proposed Payment by the Santa MonIca Redevelopment Agency for
the Cost of CertaIn ParkIng and PublIC Improvempnts for the Benp-
fIt of the Downtown Re>development ProJPctft, attachpd hereto as
Exhlbit nBi" and
WHEREAS, thE> value and cost of saId publIC 1mprovempnts has
bpen, or wIII be, paId for In1tIally by the CIty,
NOW, THEREFORE, THE SA~.l"'rA MONICA REDEVELOPt<1E~T AGENCY DOES
HEREBY RESOLVE AS FOLLOnS:
SECTION 1. It is hereby determ1nE>O for the rpasons set forth
In Part IlIA of ExhIbIt "BII, that the park1ng and publIC Improve-
ments constructed and 1nstalled by thp Clty of Santa MonIca pur-
suant to sald CooperatIon and Relrnburspmpnt Agrppwpnt bptween thp
C1 ty and Agency, are of be-nef i t to tne Downtmm RedE'velopment
proJPct Area.
SECTION 2. The Agpncy hpreby determlnps for th? reasons set
for th 1n Par t I I IB of Ex hIbl t II BU that no other reasonablp means
of flnanclng sald parkIng and publlC Improvpmpnts IS avallablp to
thE' Clty-
SECTION 3. The Agency hereby authorlzes and approvE's paympnt
by It to thE' Cl ty of Santa MonIca as rPlmburseffient to thp Clty
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for thE" val UP and cost of the Installatlon and construction of
thE' lmprOVE'ments, as spt forth 1n thp abovp-n"fE're-ncE'd Cooppra-
t10n and Relmburspment AgreE"me-nt (Exhlblt "A").
SECTION 4. The Cooperat1on and Re1mburspme-nt AgrpE'ment IS
hereby approve-d; and the EXE'Cut1ve DlrE'ctor IS herE'by author1zod
to E'XPcute sald AgrE'ement on be-half of the AgE'ncy_
SECTION 5. The Age-ncy Secretary shall cprtlfy to the adop-
tlon of the Resolutlon, and thenceforth and thpreaftpr thp samE'
shall bp 1n full forcE' and pffpct.
APPROVED AS TO FORM:
By:
Agency Couns?l
rpsl
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.
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Adopted and approved this 17th day of December, 1985.
~~Li.~
. Chair~~rson -
I hereby certIfy that the foregolng Resolution No. 401(RAS)
was duly adopted by the Redevelopment Agency of the CIty of Santa
Monica at a meetIng thereof held on December 17, 1985 by the
folloWIng Agency vote:
Ayes:
EpsteIn, A. Katz, H. Katz, Mayor
Reed
Agency Members:
Noes: Agency Members:
Conn, Jennings, Zane
Abstain: Agency Members:
None
Absent: Agency Members:
None
ATTEST:
~ l~ 1.
U; L ---1 L /]) '--i---/ca
Secretary
\ -
- - '-....
EXHIBIT A
.
COOPERATIO::; AND REDIBURSE~'lENT AGREE:\IENT
FOR THE CONSTRCCTION OF PUBLIC IMPROVE:VIENTS
BY THE SANTA ?10NICA REDEVELOP:\lENT AGE~CY
DOWNTOWN REDEVELO PME}iT PROJECT
BY AND BETWEE:N
CITY OF SANTA },10}IICA
A~D
SANTA MONICA REDEVELOPMENT AGENCY
THIS AGREEMENT ~s entered into this day of , 198_, by
and between SANTA MO}.jlCA REDETI:LOP~,lENT AGENCY, a pU:>llc body corporate
and politic (the 11AgencylT), and the CITY OF SANTA ?iIOmCA, a munIcIpal corporation
(the "CitytJ), with reference to the following:
.
A. 'The Agency is undertaking certain activitIes necessary for the execution of
the Downtown Redevelopment Project (the lTProjectl1) under the provisions of the
California Community Redevelopment Law and pursuant to the Redevelopment Plan
for the Project, which Redevelopment Plan was adopted on January 13, 1976 by
Ordmance No. 1021 of the City CouncIl of the City of Santa ;iIonica;
B. The Agency cesires to cant-act wIth the City to periOL'ffi certain public
improvements ar1d facilities described herem in connection with the Project;
C. The Agency and the City Council have detet"~ined that said public
im?fOVements and facilities descrIbed in thIS Agreement are of benefit to the Project
and that no other reasonable means of financmg said im~rove'11ents IS avallable to the
City;
D. The City has paid or will pay for said street improvements on condition
that the Agencv reImburse the Citv for its costs.
~ ~
NOW, THEREFORE, the parties hereto 00 mutually agree as follows:
.
I.
[5100]
SCOPE OF SERVICES
The City shall cause to be designed. constructed and installed the fOllowing
public facilIties and improvements in a satisfactory and proper manner pursuant to
plans and sgecifications to be prepared by the City a.l1d submitted to the Agency for its
approval:
.
The Third Street Mall Par!dng and Public Improvements Plan. as ge'1erally
described in that certain Summary Report dated November 29. 1985, attached he!'eto,
labelled lIExhIbit All and incor;>orated herem by thIS reference.
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ll.
[5 200]
TD-iE OF PERFOR(>..lANCE
The services reqUIred pursuant to Sectlon 100 shall commence within a
reasonable time af~er Agency a!?!?roval of pla:.'1S thereior and shall be diligently
prosecuted by the City.
m. [S 300]
CO~IPE~SATION AND METHOD OF PAY:;IENT
A.
[S 3011
Compensation
The Agency shall pay the City for the actual as-:milt costs incu:-red by the City
fOl" the public improvement work set forth in Section 100 together wIth simple interest
at the rate of Ten Percent (10%) per aIl11um calculated from the time of the City's
payment of such costs. The City1s preparatlon of plans and speClfications and
performa.11.ce of all City supervisory and engmeering work shall be reimbursed by the
Agency at the City's actual costs including payroll costs, material, travelJ and other
related expenses, together vvith simple interest at the rate of Ten Percent (10%) from
the time of the City's accrual of such City staff costs, or the effective date of this
Agreement, T,vhichever occurs last.
B.
[5 3021
Maximum Compensation
The total compensation for all tvcrk performed under Section 100 shall not
exceed the sum of Seventeen :'vlillion Dollars ($17,0001000), (1985 Dollars), plus interest
calculated in accordance '!,'lith Section 301 above, v.,rithout further Agencya9proval.
.
C.
[5 303]
Method of PaYr:1ent
The Agency shall, conSIStent with the propel" and orce~ly im~leme:1.tation of the
RedeveloJ;lment Plan, pay the City from any fu.'1Cs which may then be legally available
to Agency therefor, including tax incl'ement payments and proceeds from the sale of
bonds. -
D.
[S 304]
Subordination or C~ty Inc.ebted."1ess
The indebtedness of the Agency to the City created by this Agreement is
subordinate to any ~ledge of tax increments to the bondholders of any tax increment
bonds which are or may be issued by the Agency and to any other indebtedness
incurl"ed by the Agency as reasonably necessary for the proper and orderly
implementation of the Redevelopment Plan.
IV.
[5 400]
UABIUTY AND L.'tDE:YIN:FICATION
.
In conter.1platicn of the provisions of Section 895.2 of the Gove!':1.ment Code of
the State of Caliiornia im!;)osmg certain tort liabllity jointly upon pu:,lic entIties solel:1
by reason of such entIties being parties to an agi"eement as defined by Section 895 of
said Code1 the partIes hereto, as between themselves. pursuant to the authorization
contained in Section 895.4 and 895.6 of said Code, will each assume the full liability
im~csed u~cn it, or any of its officers, agents or em~loyees by law for injury c2.used by
negligent or wrongful act or omISSIon occu:ring in the ~edormance of thIS Agreement
to the same extent ita.t such l1abllIty would be imposed in the abs€'1ce of SectIon 895.2
of saId Coce. To achIeve the above~tated purpose each 9arty Indemmfies and holds
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h3.r:nless the other party fer any loss, costs or exoense that may be imposed upon such
other party solely by virtue of said Sect~on 895.2. The provisIons of Section 2778 of
the CalIfornia CivIl Cede are ma.de a Dart hereof as if fully set forth herein.
I~ WITNESS WHEREOF, the parties ha.ve executed the Ag:-eement as of the date
first set out herein.
A TrEST:
CITY OF SAi'iTA i\10mCA
By:
Mayor
City Clerk
APPROVED AS TO FOR~l:
, ~
. ,I~
City Attorney
ATTEST:
SANTA :\IOl\i1CA REDEVELOP7tIENT
AGENCY
By:
Agency Secretary
ExecutIve DIrector
.
APPROVED:
Agency Counsel
k ~,
~ ~'- '"..
By:
Robert M. Myers
235/2-2
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DOWNTOWN REDEVELOPMENT PROJECT
SANTA MONICA, CALIFORNIA
SUMMARY REPORT PERTAINING TO THE PROPOSED PAYMENT
BY THE SANTA MONICA REDEVELOP~ENT AGENCY FOR THE COST
OF CERTAIN PARKING AND PUBLIC IMPROVE~ENTS FOR THE
BENEFIT OF THE DOWNTOWN REDEVELOP~ENT PROJECT
.
SANTA MONICA REDEVELOPMENT AGENCY
NOVEMBER 29, 1985
Exh~bit B
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TABLE OF CONTENTS
1.
Introduct~on
II.
Est~mat@d Tax Increment Funds Proposed
to Be Used to Pay Costs of Thlrd Street
Park~ng and Publ~c Improvements
III~
Facts Support~ng F~ndlngs
A.
The Thlro Street Mall Parking and
Public Improvements Are of BenefIt
to the ProJect Area
B.
Financing Altprnat~ves: No Other
Reasonable Means of Flnanclng thp
Thlrd Street Park~ng and Publ~c
Improvements IS Ava~lable to the
Cornmunlty
IV.
The Redevelopment purpose for WhlCh Tax
IncreffiPnt Funds arp Belng Used to Pay
for the Thlrd Street Parking and PubllC
Improvements
Exhlblt A -
Cooperatlon and Relmbusernent
Agreement betwe~n the Redevelopment
Agency and the Clty of Santa Monica
Ex h 1 bit B -
Slte Map
Ex hibl t C -
Excerpt of Thlrd Street Mall Speclflc
Plan Prellm~nary Plan - July, 1985
Constructlon Cost Estlmates
(for Parklng and FubI1C
Improvements)
PAGE
1
3
3
3
4
5
.
1.
INTRODUCTION
The Santa MonIca Redevelopn,ent Agency ("Agency") has prepared
thIS sun~~ry report pursuant to SectIon 33445 of the CalIfornIa
Conununl ty Redeve lopn,ent Law (Heal th and Safety Code See tions
33000 et se'1.).
ThIS surr~lary report sets forth certaIn detaIls of the ThIrd
Street Mall ParkIng and PublIC In-,proverr,ents Plan (the "Plan")
whIch pertaIns to the development of certaIn parkIng and publIC
iIl,proven,ents for the benefl t of the COIl,n-.unl ty as a whole, and the
Downtown RedevelopIl,ent ProJect (hereInafter "ProJectll) , In
partIcular.
Attached to this SUIl,IT,ary report as ExhIbIt "A", and Incorporated
hereIn by reference, IS a proposed CooperatIon and RelThburseThent
Agreen.ent ("Agreerr,ent") between the Agency and the CI ty of Santa
MonIca ("CIty") for the developThent of certaIn parkIng and publIC
lITlprOVeIT.ents for the benefI t of the Downtown Redevelopn.ent
Pro]ec t.
.
Pursuant to the Plan, the CIty In cooperatIon WIth the Agency
wIll rr,ake arrangeIT,ents to des 1 gn, construct and I nstall park Ing
and publIC lIT.prOVe[T,ents WhICh Include, but are not lirrllted to,
the folloWI ng ITla] or cOIT,ponents:
A. Open Space ImproveThents
The open space proJect IIT,proverr.ents Incorporate the follOWIng
elen-Ient s:
o OrganIzatIon of street furn! ture, landscape, sculpture,
and other elen-,ents to defIne a serIes of dIstInct ac-
tIvIty spaces along the Mall. Such may Include paSSIve
outdoor SIttIng areaS WIth shade trees and benches, for-
n,allzed dInIng and entertalnn,ent areas, sculpture garden
and art gallery paVIlIon, and chIldren's play area.
o COIT.mon logo, WhICh beconLes unIquely IdentIfIable WIth
the ThIrd Street Mall, to be incorporated on signs, en-
try structures, In forula t I on kIosks and d I rector les, ad-
ver tl senLents 1 and other eleu.ent s.
o
Pylons, ga teways, flag poles,
a t each street Inter see tl on
entrIes to the Mall.
or other des I gn eleu,ents
to defIne the prInCIpal
o
New landscape (trees and planters) to prOVIde shade,
color and emphaSIS, as approprIate, to the new functIon-
al uses on the utall.
.
o
Re-pavlng
an,ong the
of the
three
Mall
blocks
sur face area
and lInkages
to prOVide unIty
WIth perIpheral
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streets and locations
e tc. ) .
(e.g., Palisades Park, pier,
o
SpecIal paving treatIt,ents at the Mall's
with Wilshire, Santa MonIca, ArIzona, and
provide contInuIty among the three blocks.
Intersections
Broadway to
o New street furniture selected to create a sense of
unlfo!:!t,lty and therr,e for the Mall area. ThIS {t,ay In-
clude benches, trash receptacles, drinkIng fountains,
bollards, bIcycle racks, news racks, and bus shelters.
o Banners on light poles or other elerr,ents to create a
colorful, festIve envlronfuent.
o New lIghting fixtures to provIde a safe and functIonal,
as well as, festIve and eXCIting nIghttIme enVIronment.
o Introduction of pavilions Within the central portIon of
the 1300 block of the Mall for retaIL sales, art dls-
pI ay, and I nforu,a tl on.
o Slgnage unIfIed by graphiC deSIgn (color, SIze, letter-
I ng, shape, logo, etc.) to ldent I fy locatIons and uses
and prOVIde dIrectIons and InformatIon.
.
o
Passenger drop-offs at each cross street.
B. ASSOCIated Improvements
ASSOCI a ted wIth these Iu,oroveIl,ents would be the develoDIl,ent
~ .
of a plaza In the 1300 block as a central gatherIng space and
focal pOint for CO[T,[TIUnlty actiVIty. ThIS plaza should be
structured to faCILitate outdoor concerts, theatrIcal perfor-
mances, and exhIbItIons. 'DinIng areas should be concentrated
around thIS space and closely lInked to the adJacent shops
and uses.
.
It IS recoIT,ITlended that addI tlonal IITtprOVeIT,ents be In,pleIT,ented
along the IT.a]or open space corrIdors perIpheral to and ex-
tendI ng outward frOIT, the Mall. These I nclude the (1) re-
bUIldIng of the SIdewalks and parkIng areas located on ArIZO-
na Avenue to accou,rr,odate the weekly open-aIr farn,ers' IT.ar:'Cet
and establIsh a pedestrian proffienade lInking the ThIrd Street
Mall with PalIsades Park, (2) Introduction of streetscape
elements and slgnage along the streets WhICh CIrcumscrIbe and
bIsect the ThIrd Street Mall (WIlshire Boulevard, Santa Moni-
ca Bou levard, Broadway, Second Street, and Fourth Street),
and (3) IIT,prOVe[T.ent of alleys (Eas t and Wes t Mall Cou rts) to
faCILItate and prOVIde an attractIve and safe enVIronment for
pedes tr I an ac tI V I ty, as well as cont I nue t ruck and autoIT,ob lIe
delIverIes.
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C. Other Improvements
The Plan provides for the development of multi-level passage-
way structures linking the eXisting parlclog structures wIth
the Mall. These passageways n.ay Incorporate reta 11 uses at
the ground elevatlon and residential unl ts above. Assun.ing
that passageways would be Integrated Into the proposed hotel,
departn,ent store, and lIdeslgn-speclallty" center structures,
only three would be requIred to link the ren,aInIng parking
structures to the Mall.
The Plan provIdes for the modifIcatIon of the ground level of
the parkIng structures whlch are physlcally sUItable to ac-
commodate retaIl service and commercial uses frontIng on
Second and Fourth Streets.
D. CIrculation and ParKing
.
I n the 19 8 6-19 99 per I ad, proJected developn.ent In confornea nee
wlth the Plan Will necessitate the expansIon of the parkIng
supply for the ThIrd Street Mall and larger parkIng distrIct.
It IS recommended that certaIn of the eXIstIng parkIng struc-
tures be expanded to thel r full structural capacl ty by the
addItIon of three levels for an overall Increase of approxi-
mately 900 spaces.
II.
ESTIMATED TAX INCREMENT FUNDS OR PROCEEDS OF BONDS TO BE
USED FOR PAYMENT OF CONSTRUCTION OF PARKING, PUBLIC
FACILITIES AND IMPROVEMENTS.
Attached hereto as ExhIbIt "e", are estImated construction costs
(potentIal use of tax Increment funds or proceeds of bonds) for
the ThIrd Street Mall Parklng and PublIC In,proven.ent Plan (In
1985 dollars).
The Agency WIll pay the City for the actual as-bUIlt costs In-
curred by the CIty for approved publIC Improvement work together
WI th s In.ple I nterest at the ra te of ten percent (10%) per annUll.
calculated fron, the tlIl,e of the CI ty' s payrrLent of such costs.
The Clty1s preparatIon of plans and speclflclations and perfor-
It,ance of all C 1 ty superVIsory and eng 1 nee!: I ng wo rk shall be re Ill,..
bursed bY,the Agency at the City's actual costs IncludIng payroll
costs, ll,aterIal, travel, and other related expenses, together
WI th slI1-.ple Interest at the rate of ten percent (10%) front the
t lIT,e of the City's accrual of sue h Cl ty staf f costs, or the e f-
fectlve date of thIS Agreement, whichever occurs last.
.
I I 1.
FINDINGS
A. The ParkIng and PublIC FaCIlItIes and In,proverr.ents are
Of BenefIt to the Downtown Redevelopn.ent ProJect Area.
- 3 -
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.
.
The proposed park Ing and publI C IIl,pr overr,en ts refer red to 1 n
See tI on I I above and the a ttach[T,ents hereto WIll benefI t the
Downtown Redevelopment ProJect Area In that they wIll:
o AId In the elimInatIon of blIght by replaCIng or upgrad-
Ing deterIorated walkways, landscapIng and recreatIonal
areas;
o Attract prIvate development by aesthetIC improvements;
o Increase recreatIonal opportunItIes for residents of the
ProJect Area;
o FulfIll Agency oblIgatIons to IIl,prove traffIC CIrcula-
tIon, pedestrIan access and safety for the Downtown Re-
development ProJect Area.
o To the extent that such publIC Improvements are outSIde
the ProJect area, the l~proveffients wIll prOVIde a
healthy and safe enVlrOOffient WhICh attracts users In a
POSItIve way, and the presence of such users WIll pro-
VIde a better econorr,IC cllIt,ate and It,ore Jobs for reSl-
dents of the ProJect Area.
o
Pursuant to the Off-Sl te ParkIng Ease[T,ent and Perna t
Agreenlent dated Dece1i,ber 22, 1978 by and between the
CIty of Santa MonIca and Santa MonIca Place ASSOCIates,
the CIty, as Lessee to the Santa MonIca ParkIng AuthorI-
ty, dId grant to Santa MonIca Place ASSOCIates (and Its
heI r s, successor s and ass Ig nees) an easell.ent and pe rIl,I t
- to use not less than 278 eXIstIng parkIng spaces dIVIded
approxIrr,a te ly aqua lly between Park I ng Structures Nos. 2
and 5, located In the CIty'S Downtown Par~Ing and BUSI-
ness IIT.provenlent Dlstrlct. Such easen,ent and parlcIng
agreerr.ent was granted In order to allow Santa MonIca
Place ASSOCIates to con,ply WI th the parkIng requIrerr,ents
necessary for developIT,ent of the shoppIng center, Santa
MonIca Place, In the Downtown Redevelopn~nt ProJect
Area. Such easerr,ent and perrTll t I ncluded the r I gh t of
vehIcular and pedestrIan access to and egress froffi the
spaces together WI th arIght to use all other lrhprove..
ments and faCIlItIes related to the spaces as are neces-
sary for theIr use. PerIt,I ttees Il,ay Include, '....l thout
ll~ltatlon, agents, e~~loyees and representatIves of
Developer, departn,ent stores, space lease tenants and
any other Occupants of the ShoppIng Center - Santa MonI-
ca PlaceA
AccordIng to the ThIrd Street Mall SpeCIfIC Plan .. Tech-
nIcal Background Report, 17 Decerr.ber 1984, there IS
lImIted excess parkIng capaCIty In the Downtown ParkIng
and BUSIness Improvement DIstrIct, espeCIally In ParkIng
S truc ture No s. 2 and 5. ThI S lIlt,I ts the IT.arket poten-
tIal and bu Isness VI ab 111 ty for eXI stl ng and proposed
economIC actIVIty and general development In the area.
It IS also recognIzed that I t IS necessary to Ilt.prove
- 4 -
.
user access to the avaIlable parkIng through the cre-
atIon of pedestrIan accessways and Iffiproved securIty and
related amenItIes.
It should be noted that although the ThIrd Street Mall
area IS not withIn the desIgnated boundarIes of the
Downtown Redevelopment ProJect Area, It IS adJacent to,
and WI thin, the In.fT.edIate neIghborhood of the ProJect
Area. The Mall Irr.proven,ents wIll therefore provIde dl-
rect benefl t to the Downtown ProJect Area as well as
persons resIdIng, Vlslting or worklng In the Illtllcedlate
nelghborhood in WhICh the ProJect lS located.
Accordlngly, the use of Downtown tax Incren,ent for the
ThIrd Street Mall parkIng and publIc IDcproven,ents 15 of
benefI t to the Down town Redeve lopll,ent ProJec t Area.
B.
No Other
FaCIlItIes
Corr.n-.un 1 ty
Reasonable Means of
and Irr.proven,ents
FInancIng the PublIC
is AvaIlable to the
.
In CalIfornIa, rt,UnlcIpal or tax-exeIT,pt fInancIng has tradI-
tIonally taken one of two baSIC forn,s: general OblIgatIon
bonds or revenue bonds. General oblIgation bonds pledge ad
valoren. property taxes wIthout lIIl.It as to rate or anLounti
hence, they were hIghly regarded by Investors and con,rr.anded
the lowest bor rOWl ng rate because of the I r nLI n lIt,al cred 1 t
rlsk. However, ArtIcle XIIIA of the CalIfornIa constItutIon,
adopted In 1978, prohlblts Issuance of such general oblIga-
tIon bonds.
Revenue bonds are payable froIl. a specific revenue source
other than property taxes. These bonds have been used exten-
s 1 vely for f 1 nanc Ing \oJa ter, se\\Ter, or other u tIll ty systenls,
toll brIdges and alrports, where revenues of the enterprIses
a re reasonably well assured. However, the proposed In.prove-
llients wIll not generate any revenue, so such fInancIng IS not
feasIble.
.
The Ci ty' s general revenues are another poss Ible sou!:ce of
revenue for the proposed IIl.proverr,ents. However, toll OWl ng
the passage of PropositIon 13, severe straIns were placed on
the CIty'S revenueS because of the curtaIlment or wIthholdIng
from CItIes by the State of Callfornla of revenues tradItIon-
ally subvented to local governn,ent. Whlle SOllIe of these
sources have been returned to cltIes In the State's FY 1985-
86 budget, there 1 s no cer tal nty that the reduc tlon of the
subventlon stream might not reoccur. The fact of hIstorIcal-
ly dIIlLI nI shed revenue, uncer ta 1 n ty of future revenues, and
the need to prov I de a su 1 table level of servIce, dIctates
that if the CIty advances any of Its general operatIng
reserve for the proposed lIl,proven,ents, a IlLeans of recover 1 ng
the cost be ava i labIe fron. the Agency f rorr, tax I ncren,en t
revenues.
- 5
.
.
.
Tax i ncren.ent revenues or tax a lloca t 1 on bonds proceeds are
the only VI able Itiethod of f 1 nane 1 ng the proposed IIl.prove--
ments. Tax a lloca t Ion bonds are payable froIt, and secured
solely by tax revenues to be derIved fron. the ProJect Area
and the use of such revenues IS approprIate SInce the ProJect
Area WIll be benetI ted. Tax IncreIllent revenues are allocated
annually to the Agency to the extent ot Agency Indebtedness,
and are paId fro~ the portIon of taxes In excess of the as-
sessed valuatIon of that property in the base year of the
ProJect.
IV.
THE REDEVELOPMENT PURPOSE FOR WHICH TAX INCREMENT FUNDS
ARE BEING USED TO PAY FOR THE PUBLIC IMPROVE~ENTS.
The Redevelopn,ent Plan for the Downtown Redevelopn,ent ProJect
conteITtpl a tes that a nUIl,ber of publI c and pr I va te IIT,prOVernen ts
WIll be provIded to turn the Pr oJec t Area frou. s tagnan t and un-
derutIlized land to productlve use and an asset to the CIty.
AITtong the publIC lrr,provell,ents and utIlI tI es to be prOVIded In
connectIon WIth the redevelopment of the sIte as prOVIded for In
the Redevelopu.en t Plan 1 s the provI 51 on of park Ing and sIte prep-
aratIon necessltIes.
SInce the Redevelopn,ent Plan for the ProJect wa 5 adopted In 1976,
the Agency has been In the process of redevelopIng the VICInIty
of the SIte by plannIng and developIng necessary publIC I~prove-
rr.ents (such as parkIng and related faCIlItIes) and utIlItIes to
IIT.pr-ove the condItIon of Inadequate faCIlItIes WhICh were In,ped-
Ing on the developn,ent of the area. The Agency now proposes to
con tI nue that redevelopfT,ent effort by I ncreasI n9 the an.ount of
avaIlable parkIng, the eXIstIng publIC area amenIty appeal,
IT.arket potentIal, secur 1 ty, and overall access to the ProJect
Area.
The proposed Improveffients WIll encourage better use of the shop-
pIng center by ProJect Area reSIdents and persons resIdlng, vISt-
i ng or err,ployed In the IU.[l,edl ate ne Ighborhood In wh I ch the ProJ-
ect 15 located. The Agency seeks to further the purposes of re-
developnlent by Ihak I ng the area I110r e at tractl ve to Vl 5 1 tor sand
res Idents, thus expandIng elllploYIT,en t oppor tunI tles for J obl ess
and under-eIT,ployed per sons and prov Idl ng an env I r-onrr.en t for so-
CIal, economlC and psychologIcal growth and well-beIng.
It IS antICIpated that the parking and publIC In,proven,ents WIll
a ttrac t res Idents and VI s I tor s to the ProJect Area, WhI ch WIll
enhance the developl'l.ent of adJacent portIons of the ProJect Ar-ea
and therefore prOVIde dIrect benefl t to the Downtown Redevelop-
rr,ent ProJect.
pS 2sUIT,
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