R-394
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RESOLUTION NUMBER 394 (RAS)
A RESOLUTION OF THE SANTA MONICA REDEVELOPMENT
AGENCY DETERMINING CERTAIN PUBLIC FACILITIES
AND IMPROVEMENTS TO BE OF BENEFIT TO THE OCEAN
PARK REDEVELOPMENT PROJECT AREA AND DETERMINING
THAT NO OTHER REASONABLE MEANS OF FINANCING
SAID PUBLIC IMPROVEMENTS IS AVAILABLE TO THE
CITY OF SANTA MONICA AND AUTHORIZING THE PAYMENT
BY THE AGENCY OF THE COST OF CONSTRUCTION
AND INSTALLATION OF SUCH PUBLIC IMPROVEMENTS
WHEREAS,
the Agency desires to use Agency funds,
lncluding proceeds of tax allocatlon bonds, for payment of the
value and cost of certain publIc Improvements which will be of
benefIt to the Ocean Park Redevelopment Project Area; and
WHEREAS, California Health and Safety Code Section 33445
requires
that
said public
the
to
determine
Agency
improvements, whether inSide or outside a redevelopment
proJect area, are of benefit to such redevelopment project
area, or the lmmedlate neIghborhood in which such proJect is
located, prior to authorizlng said payments, and that no other
reasonable means of financing said public Improvements IS
available to the community; and
WHEREAS, Health and Safety Code Section 33679 requires
that prior to the commitment by the Agency to use tax
increment funds or bond proceeds for those public improvements
consisting of installation or construction of publICly owned
buildlngs Cother than parking facilities), the City Council
hold a public hearing to consider the making of such payments
by the Agency, the benefit of such improvements to the
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redevelopment project area} and the availabilIty to the
community of alternative means of financing such imp~ovements;
WHEREAS, on October 23, 1984, the CIty Council and the
Agency held a duly noticed public hearing on the proposed
payments by the Agency;
WHEREAS, pursuant to a judgment entered in the Superior
Court of Los Angeles on August 12, 1983, Agency and City are
legally obligated to fulfill the terms of an Amended Sales
Agreement for Private Development C"Amended Sales Agreement")
pertaining to the completion of development of the Ocean Park
Redevelopment Project Areaj and
WHEREAS, certain public beach improvements and an
on-site publIC park are among the legal obligations reqUired
to be fulfIlled by City and Agency pursuant to said Amended
Sales Agreement; and
WHEREAS, the issue of benefit to the Project Area, and
the alternative means of finanCIng such public improvements
have been cons idered in the Report ent 1 tied "Summary Report
PertaIning to the Proposed Payment by the Santa Monica
Redevelopment Agency for the Cost of CertaIn PubliC Beach
Improvements for the BenefIt of the Ocean Park Redevelopment
Project," attached hereto as ExhIbIt "A," and Incorporated
herein by reference;
NOW, THEREFORE, THE SANTA MONICA REDEVELOPMENT AGENCY
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. It IS hereby determined for the reasons set
forth In Part IlIA of ExhibIt "A"} that the publiC faCilIties
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and improvements to be constructed and installed by the Agency
as described in Exhibit "A" hereto, are of benefit to the
Ocean Park Redevelopment Project Area.
SECTION 2. The Agency hereby determines that, for the
reasons set forth In Part IIIB of Exhibit "A," no other
reasonable means of financing said public improvements is
available to the community.
SECTION 3. The Agency hereby authorIzes and approves
payment of $4,743,600.00 by It for the value and cost of the
Installation and construction of the publIC Improvements set
forth in ExhIbit "A" hereto.
SECTION 4. The Agency Secretary shall certify to the
adoption of this ResolutIon, and thenceforth and thereafter
the same shall be in full force and effect.
APPROVED AS TO FORM:
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By:
Agency Counsel
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Adopted and approved thIS 23rd day of October 1984.
~(j
ChaIrperson
I hereby certify that the foregoing ResolutIon No. 394(RAS)
was duly adopted by the Redevelopment Agency of the CIty of Santa
MonIca at a meetIng thereof held on October 23, 1984 by the
follOWIng Agency vote:
Ayes:
Agency Members:
Noes: Agency Members:
AbstaIn: Agency Members:
Absent: Agency Members:
Conn, EpsteIn, JennIngs, Press,
Reed, Zane and Mayor Edwards
None
None
None
ATTEST:
tL~A~
Secretary
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.ATTACHMENT TO RESOLUTION 394 (RAS) and
RESOLUTION 6928(CCS)
,
OCEAN PARK REDEVELOPMENT PROJECT
SANTA MONICA] CALIFORNIA
SUMMARY REPORT PERTAINING TO THE PROPOSED PAYMENT~
BY THE SANTA MONICA REDEVELOPMENT AGENCY FOR THE COST
OF CERTAIN PUBLIC BEACH IMPROVEMENTS FOR THE
BENEFIT OF THE OCEAN PARK R~DEVE~OPMENT p~OJECT
.
SANTA MONICA REDEVELOPMENT AGENCY
October 9, 1984
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TAB~E OF CONTENTS
paqe
I. Introduction 1
II. Estimated Tax Increment Funds Proposed to
Be Used to Pay Costs of Ocean Park Beach
Improvements 2
III. Facts Supporting Findings 2
A. The Ocean Park Beach Improvements Are
of Benefit to the ProJect Area 2
B. Financing Alternatives: No Other
Reasonable Means of FinanCing the
Ocean Park Beach Improvements is
Available to the Community
IV.
The Redevelopment Purpose for which Tax
Increment Funds are Belng Used to Pay
fo~ the Ocean Park Beach Improvements
Exhibit A - Site Hap
Exhlblt B - Excerpt of City Staff Report
Dated August 14, 1984
ExhIbit C - Construction Cost Estimates
(for Off-Site Public Improvements)
As Of August 20, 1984
Exhlbit D - Construction Cost Estimates (for
Public On-Site Public
Improvements - Excerpt from
January 24, 1984 City Staff
Report)
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I. INTRODUCTION.
The Santa Monica Redevelopment Agency C"Agency") has
prepared thIs summary report pursuant to Section 33445 of the
CalIfornIa Community Redevelopment Law [Health and Safety Code
Sections 33000 et ~~q.).
ThIS summary report sets forth certain details of the
Ocean Park Revised Beach Plan (the "Plan") whIch pertaIns to
the development of certaIn public faCIlities and improvements
for the benefit of the community as a whole, and Ocean Park
Redevelopment Project Area lCa) and l(b)(hereinafter
collectIvely "Project Area"), In particular.
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Pursuant to the Plan, the Agency wlll make arrangements
to deSign, construct and install publlc improvements which
include the following major components:
A. A new separated beachfront bikepath and pedestrian
promenade with a seatwall allowing rest and viewlng are~;
B. Expansion of an existing park located at the foot of
Ocean Park Boulevard, and creatIon of an additional 1.5 acres
of park spacej
C. AddItion of a new 3.5 acre linear park along Barnard
Way (extending from Crescent Bay Park to the South City
limits)j
D. Improvements to Beach ParKlng Lots, includIng
redeSIgn, repaving and improved vehicle and pedestrIan access;
E. Improvements to ~xisting pedestrian access paths and
landscaping;
F.
restroom,
Redesign and constructIon of food concession, publlC
shower and changing room faCilitIes;
G. Addition of plcnic areas, shade pavilIons and a
chlldrens' play area.
H. Various street and traffic Improvements for purposes
of lncreased traffic and pedestrian safety, facilitation of
trafflc flow and increased public access to beach areas.
The location of the proposed publ1C improv~ments 1S
shown on the Site Map, Exhibit "A."
Attached hereto as Exhibit "B," and Incorporated hereln
by reference, is the relevant portion of the City Staff Report
of August 14, 1984 settIng forth the specific detaIls of the
Ocean Park ReVIsed Beach Plan and proposed public improvements
to be deSIgned, constructed and Installed uSlng tax Increment
funds or proceeds of tax lncrement bonds.
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In addition to the public beach Improvements described
above} the Agency will make arrangements to design, construct
and install an on-site public park. Sa1d park shall occupy
5.89 acres InsIde the boundaries of the Redevelopment ProJect
Area and will contain six tenniS courts, two paddle tenniS
courts, one basketball court, a play area and pedestrian
paths.
II. ESTIMATED TAX INCREMENT FUNDS OR PROCEEDS OF BONDS TO BE
USED FOR PAYMENT OF ~ONSTRUCTION OF PUBLIC FACILITIES AND
IMPROVEMENTS.
Attached hereto as ExhIbi~ "C,~ and made a part hereof,
are the August 20, 1984 Construction Cost Estimates concernIng
the Ocean Park beach improvements whlch are outslde of the
Project Area ("Off-Slte~ Improvements).
AdditIonally attached hereto as Exhibit "D,u and made a
part hereof, are construction cost estimates for ~publlc
improvements whIch are inside the Project Area C~On-Site~
Improvements), consisting of a 5.69 acre on-site public park
which shall contain SIX tennis courts, two paddle tennis
courts, one basketball court, a play area and pedestrian
paths.
Estimated interest costs are also included. Such costs
pertain to interest arising on that portion of tax allocation
bond proceeds used for the described beach improvements.
III. FINDINGS.
A. THE PUBLIC FACILITIES AND ~HPROVEMENTS ARE v:
BENEFIT TO THE OCEAN PARK REDEVELOPMENT PROJECT AREA.
The proposed publlC faCIlities and improvements referred
to in Section II above and the attachments hereto will benefit
the Ocean Park Redevelopment Project Area in that they will:
( 1 )
upgrading
areas;
Aid in the elimination of blight by replaCing or
deteriorated walkways, landscaping and recreational
(2) Attract
lmprovementsj
private
development
by
aesthetiC
(3) Increase recreational opportunIties for reSIdents
of the Project Areas;
(4) Fulfill Agency oblIgations to improve traffiC
circulation, beach access and pedestrian safety for the Ocean
Park Redevelopment Project Area;
(5) Fulfill Agency obligations to comply with Coastal
Commlssion permit approval requIrementsj
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(6) To the extent that such publIC Improvements are
outsIde the Project areas, the Improvements wIll provIde a
healthy and safe environment which attracts users In a
posItive way, and the presence of such users will provide a
better economIC climate and more jobs for residents of the
ProJect Area.
(7) Pursuant to a judgment entered in the SuperIor
Court of Los Angeles on August 12, 1983, the Redevelopment
Agency of the City of Santa Monica, the City CounCil of the
CIty of Santa Monica, and the City of Santa Monica are legally
bound to comply with the terms and condItions of an Amended
Sales Agreement for Private D~velopment (the "Amended Sales
Agreement") between the City, the Agency and PaCific DominIon
Property Company for the completion of Phase II of the
development of Ocean Park Redevelopment Projects l(a) and lCb)
(hereinafter "Redevelopment Project Area"). SaId Amended
Sales Agreement set forth a choice of two permissible
development plans. The plan selected by the City and Agency
legally obligates CIty and Agency to develop an on-site~public
park and the public beach Improvements descrIbed herein.
Accordingly, the payment of such publIC improvements by the
Agency is of benefIt to the Redevelopment Project Area SInce
It fulfills legal obligations arisIng out of the development
of such Redevelopment ProJect Area.
B. NO OTHER REASONABLE MEANS OF FINANCING THE PUBLIC
FACILITIES AND IMPROVEMENTS IS AVAILABLE TO THE COMMUNITY.
In CalIfornIa, munIcipal or tax-exempt fInanCIng has
tradltlonally taken one of two basic forms: general
oblIgation bonds or revenue bonds. General obligatIon bonds
pledge ad valorem property taxes without lImit as to rate or
amount; hence} they were highly regarded by investors and
commanded the lowest borrowing rate because of their minimal
credIt risk. However, ArtIcle XIIIA of the CalIfornia
constItution, adopted In 1978, prohibits issuance of such
general oblIgation bonds.
Revenue bonds are payable from a speCIfIC revenue source
other than property taxes. These bonds have been used
extensively for financing water, sewer, or other utility
systems, toll bridges and airports, where revenues of the
enterprises are reasonably well assured. Issuance of
conventIonal revenue bonds generally requires a SImply
majority vote. However, the proposed improvements' Will not
generate any revenueJ so such financing is not feaSIble.
of
the
the
from
The City's general revenues are another possible source
revenue for the proposed improvements. However, follOWIng
passage of Propositlon 13} severe straIns were placed on
City's revenues because of the curtaIlment or withholding
CItIes by the State of CalIfornIa of revenues
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~radltionally subvented to local government. While some of
these sources have been returned to cities in the State's FY
1984-85 budget, there is no certainty that the reduction of
the subvention stream might not reoccur. The fact of
historically dlminished revenue, uncertainty of future
revenues, and the need to provide a suitable level of serVIce,
dIctates that lf the City advances any of its general
operating reserve for the proposed improvements, a means of
recovering the cost be avallable from the Agency from tax
increment revenues.
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Tax 1ncrement revenues or tax allocatIon bonds proceeds
are the only viable rnethoq of financing the proposed
improvements. Tax allocatIon bonds are payable from and
secured solely by tax revenues to be derived from the Project
Area and the use of such revenues is appropriate since the
ProJect Area will be benefitted. Tax increment revenues are
allocated annually to the Agency to the extent of Agency
indebtedness, and are paId from the portion of taxes in excess
of the assessed valuation of that property In the base ~ear of
the ProJect.
IV. THE REDEVELOPMENT PURPOSE FOR WHICH TAX INCREMENT FUNDS
ARE BEING USED TO PAY FOR THE PUBLIC FACILITIES AND
IMPROVEMENTS.
The Redevelopment Plans lea) and l{b) for the Ocean Park
Redevelopment ProJect contemplate that a number of public
improvements and facilities will ,be provided to turn the
Project Area from stagnant and underutilized land to
productive use and an asset to the City. Among the publIC
Improvements and utilities to be provided in connection with
the redevelopment of the Site as provided for in the
Redevelopment Plans are traffic signals; street improvements;
and similar site preparation necessities.
Since the Redevelopment Plan for Project l(a) was
adopted in 1960 and the Redevelopment Plan for Project lCb)
was adopted in 1961, the Agency has been in the process of
redeveloping the vicinity of the Site by plannIng and
developing necessary publ1C improvements Csuch as streets and
related faCILities) and utilities to remove the condItion of
inadequate facIlities which was impeding the development of
the area. The Agency now proposes to contlnue that
redevelopment effort by making the beachfront area a pOSItive
asset to the Project Area. A beachfront bikeway, pedestrIan
paths, landscaping, and additional park and recreational areas
are among the public improvements proposed to make the Project
Area and the surrounding community more attractive and viable.
The proposed beach improvements, WhICh are in close
proximity to the ProJect Area, will encourage better use of
such beachfront area which has been stagnant and lmproperly
utILIzed In the past due to deteriorated conditions. The
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Agency seeks to further the purposes of redevelopment by
making the area more attractive to visItors and ProJect Area
residents, thus expanding employment opportunlties for Jobless
and underemployed persons and to provide an environment for
social, economic and psychological growth and well-belng.
It 1S anticipated that the improved beach facilIties and
improvements will attract residents and visltors to the
Project Area, which will enhance the development of adJacent
portlons of the Project Area.
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