M-12/17/1985 (2)
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RESOLUTION NUMBER 401 (RAS)
A RESOLUTION OF THE SANTA MONICA REDEVELOPME~T
AGE~CY DETERMINING CERTAI~ PARKING AND PUBLIC IMPROVEMENTS
TO BE OF BENEFIT TO THE DOWNTOflN REDEVELOPMENT
PROJECT AREA AND DETERMINING THAT NO OTHER
REASONABLE MEANS OF FINANCING SAID PARKING
AND PUBLIC IMPROVE~ENTS IS AVAILABLE TO THE
CITY OF SANTA MONICA; AUTHORIZING THE PAY~ENT BY
THE AGENCY TO THE CITY OF SANTA MONICA OF
THE COST OF CONSTRUCTION AND INSTALLATION OF SUCH
PARKI~G AND PUBLIC IMPROVEMENTS~ AND APPROVING AND
AUTHORIZING THE EXECUTION OF A COOPERATION AND
REIMBURSEMENT AGREE~ENT BETWEEN THE CITY AND
THE AGENCY
~'VHEREAS, thE' AgE'ncy deslrps to entpr into a Cooperat1.on and
Rel~bursement Agrpernent (attachpo hereto as Exhlb1.t "A") wlth thp
C1.ty of Santa MO~1.ca regardlng paympnt to the C1.ty for the value
and cost of certaln park1.ng and publlC lmprovempnts of beneflt to
the Downtown Redevplopment ProJect Arpa: and
WHEREAS, Callfornla Hpalth anc Safpty Code S~ctlon 33445 re-
qu 1. T" 5 the Agency to dE" t~rmInp that sa ld par klng and publ1.c lffi-
provpments arp of beneflt to the Red~vplopment proJPct ArE'a prlor
to rnaklng sald paympnts and that no othpr reasonablp means of
f lnanc Ing sa 10 park1.ng ana publlC lrnprovpmen ts lS aval1ablp to
thp Clty; and
WHEREAS, Health and Safety Code Sectlon 33679 requITPs that
pr lor ':0 thp comml tm~n t by tnp Agpncy to usp tax lnc rpmpnt fund 5
J
for thp purpose of paYlng all or part of the valup of thp land
for and thE' cost of the ln5tallatlon and constructl.on of any
publlCly ownpd bUlldlngs I thp Clty CounCIl hold a publIc hparlng
to consIder thp rnaklng of such payments by thp Agpncy, the bpnp-
f 1 t of SUC:l 11.lprOVernpnts to thp Rpdpvplopmpnt ProJPct Arpa, and
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the avallablllty to thp Clty of alternatlvc> means of flnanCl.og
such ~mprovern@nts:
WHEREAS, on Dpeembpr 17, 1985, the Clty CounCll and the Agpn-
cy held a duly notlcpd publlC hearlng on the proposed pay~ents by
the Agf>oey:
WHEREAS, thE" issue of bpnE'f 1 t to the Downtown Pro] eet ArE"a,
and thE' alternatlve means of flnanclng the lrnprovements have ber?n
conslderE'd In thf> RE'port entl tlE'd "Summary RE'por t Pertalnlng to
the Proposed Payment by the Santa Monlca RedE've1opmpnt Agency for
the Cost of Certaln Parklng and PubllC IrnprovemE'nts for the Benp-
f 1 t of the Downtown RpdevE'loprnent Pro] ect", attached hereto as
Ex h 1;:' 1 t II B: nand
wHEREAS, the value and cost of sald publlC lmprOVemE'nts has
bepn, or wll1 be, pald for lnltlally by the Clty,
NO~'l, THEREFORE, THE SANT.Z\ 1'10:-JICA REDEVELOP~'lENT AGENCY DOES
HEREBY RESOLVE AS FOLLO~S:
SECTION 1. It lS hpreby dr?tprmlned for thp rpasans set forth
ln P3rt IlIA of Exhlblt "B", that thp parklng and publlC lmprove-
ffipnts constructed and lnstalled by the Clty of Santa MonIca pur-
suant to sald CooperatIon and Relmbursprnpnt AgrpP~pnt bpt~pen the
Cl ty and Agency, arp of benef 1 t to the Downtown Rpd E'velopmen t
ProJect Arf"a.
SECTION 2. The Agpncy hpreby dptermln?S for thp rpasons spt
for t~ in Par t I I IB of Ex hlbl t II B II that no othe r rpasonablp ffie:>ans
of fInancIng saId parklng and publIC lmprove~pnts lS avaIlablp to
thp Clty.
SECTION 3. Thp Agpncy hprpby authorlZPS and approvps paympnt
by lt to thE" Clty of Santa Monlca as rPlrnourspmpnt to thp CIty
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for thp valuE' and cost of the lnstallat~on and construct10n of
thE' lmprOVE"[1"ents, as set forth In thf'> above-referenced Cooppra-
t10n and RE'lmburSPffiE'nt AgrE'effient (Exhlb1t "A").
SECTION 4.
ThE" Cooperatlon and ReJ.ffiburspment AgrpE'ffient 1S
hereby approvpd i and thp EXE'cutl.ve Dlrpctor is herpby authorJ...zpd
to expcute sald Agreement on bphalf of thE' Agency.
SECTION 5. The Agpncy Spcretary shall cprtlfy to thE" adop-
tIon of thp RE'solutlon, and thenceforth and thpreaftpT thp same
shall be 1n full forcE' and pffpct.
APPROVED AS TO FOR~:
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By:
Agpncy Counsel
resl
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Adopted and approved this 17th day of December, 1985.
IL~Li.~
Chairperson --
I hereby certify that the foregoing Resolution No. 401(RAS)
was duly adopted by the Redevelopment Agency of the City of Santa
Monica at a meetlng thereof held on December 17, 1985 by the
following Agency vote:
Ayes:
Epsteln, A. Katz, H. Katz, Mayor
Reed
Agency Members:
Noes: Agency Members:
Conn, Jennlngs, lane
Abstain: Agency Members:
None
Absent: Agency Members:
None
ATTEST:
{;; d l 771..Ll pC 'L~
Secretary
EXHIBIT A
COOPERATION AND REI:,IBURSE:,..IE~T AGREE:','IENT
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'FOR THE CONSTRGC'TION O'F PUBLIC IMPROVE:,lE~TS
BY THE SANTA !\10NiCA REDEVELOP:;IE~T AGE};'CY
DOWNTOWN REDEVELOP~,'IENT PROJECT
,
J BY AND BETWEEN
CITY OF SANTA MomCA
Ai'lD
SANTA MONICA REDEVELOP~IENT AGENCY
THIS AGREm..IENT is entered into this day of ,198 ,by
and between SANTA MO}.j'1CA REDEVELOP:vIENT AGENCY, a PUDllC body cor!:,orate
and politic (the llAgencyt'), and the CITY OF SANTA ~tON1CA, a mu.'11cipal corporation
(the T1CityTl), w'ith reference to the following:
.
A. The Agency is uncertaking certain activities necessary for the execution of
the Downtown Redevelopment Project (the lIProJect") under the ~rovlslons of the
Caliiornia Commumty Redevelo9ment Law and pursuant to the Redevelopment Plan
for the Project, WhICh Redevelopment Plan was adopted on January 13, 1976 by
Ordbance No. 1021 of the City Counell of the City or Santa Momca;
B. The Jl.4ency cesires to cant-act witl1 the City to perform certain ~lUDlic
iml;>rovements and facIlities descrIbed herem in connection with the P:oject;
C. The Agency and the City Council ha.ve deter:nined that said public
improvem.ents and facilities descrIbed in thlS Agreement are of benefit to the P!'oject
and that no other reasonable means of financinO" said imDrOVer:1ents is avaIlable to the
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City;
D. The City has paid or will pay for said street improvements on condition
that the Agency reimburse the City for its costs.
NOW, THEREFORE, the parties he~eto do mutually agree as follows:
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I.
[5 100]
SCOPE OF SERVICES
The City st-all cause to be designed. const,ucted and installed the fallowing
public facll1ties and im~rovements in a satisfactory and proper" manner pursuant to
plans and specIfications to be pre~ared by the City and submItted to the Agency for its
approval:
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The ThIrd Street Mall Par!<ing and PublIc ImproveMents Plan. as gene!"ally
described ~n that certai:1 Sumi:1ary Re?ort dated November 29, 1985, attached hereto,
labelled tlE.Xhlblt Afl and Incorporated herem by t~lS :eference.
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II.
[5 200]
TIidE OF PERFO:a:YIANCE
.
'The services requIred pursuant to Sect.ion 100 shall commence within a
reasonable time af~er Agency approval of pla:.JS therefor and shall be diligently
prosecuted by the City.
ID. [5300]
COMPENSATION AND ~;lETHOD OF P AY11ENT
A.
[5 301]
Compefisation
'The Agency shall pay the City for the actual as-built costs incurred by the City
for the public improvement work set forth in Section 100 together with simple interest
at the rate oi Ten Percent (10%) per annUr:l calculated from the time of the City's
payment of such costs. 'The CityTs pre?aration of plans and specifications and
performance of all City supervisory and engmeel"ing work shall be reimbursed by the
Agency at the City's actual costs including payroll costs, material, travel, and other
related expenses, together with simple interest at the rate of Ten Percent (1095) from
the time of the Cityfs accrual or such City staff costs, or the effective date of this
Agreement, whichever occurs last.
B.
[S 302]
Maximum Compensation
The total comDensation for all work Derfor:ned under Section 100 shall not
exceed the sum of Seventeen :;lillion Dollao.-s ($17,000,000), (1985 Dollars)t plus interest
calculated in accorcance with Section 301 above, without further Agency approval.
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C.
[5 3031
Metr.od of Payr:-:ent
'The Agency shall, consistent i'nth the proper and orderly implementatlon of the
Redevelopment Plan, pay the City from any funGs w'hich may the:1 ':le legally available
to Agency therefor, i."1clud~ng tax increment payments and proceeds from the sale of
bonds.
D.
[5 304]
St:.borc.ination oi Citv Incebtedness
T
The inc.ebtedness of the Agency to the City created by thIS Agreement is
subordinate to any plecge 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
incurred by the Agency as reasonably necessary for the proper and crcerly
irnr;>lementanon or the Redevelopment Plan.
IV.
[5 400]
LIABILITY AND L.'iDE~~l~I:FICATION
.
In contemplaticn of the provisions of Section 895.2 of the Government Cac.e of
the State of Ca!1.fcrma impcsing certam tort liability jomtly upon publ..:.c entitles solely
by reason of such entities bemg parties to an as'~eement as cefir.ed by SectlOn 895 of
said Code, the parties hereto. as betwee:1 themselves. pursuant to the authorIzation
contained in Section 895.4 ar.d 895.5 of sald Code, 'NUl each assume the full liatnlity
impcsed upon lt, or a'1Y of lts officet's, a'3ents or employees by la.,v for Injury c~used by
negl..:.gent or wrongful act or omlSSlcn occ'Jr:-:ng m the performance of thIS Agreerr.ent
to the same ex:ent t~at such liability ~vould be imposed in the absence of SectIOn 895.2
of SaId Cace. To achleve the above-stated purpose each party ir:.de!"1mfies and holds
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h'1r.-:-aless the other party for any loss. costs or eX'Jense that may be imposed upon such
other Dartv solely bv vIrtue of said Sec~~on 895.2. The prOVIsIons of Section 2778 of
the Caiifo;~lla CiVIl Code are ma.de a Dart hereof as If fully set forth herem.
I}i WITNESS WHEREOF. the parties have executed the Agreement as of the date
first set out herein.
ATTEST:
CITY OF SANTA MONICA
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By:
CIty Clerk
Mayor
APPROVED AS TO FORM:
. !~;;. :":~!/i~t." '->; ~;"~- _ " ~':'~J'<:" - ~ -
City Attorney
ATTEST:
SANTA ?vIO~T!CA REDEVELOPi\lENT
AGENCY
By:
Agency Secretary
E.xecutIve DIrector
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APPROVED:
Agency COllnsel
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By:
Robert M. Myers
235/2-2
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I
DOWNTOWN REDEVELOPMENT PROJECT
SANTA MONICA, CALIFORNIA
SUMMARY REPORT PERTAINING TO THE PROPOSED PAYMENT
BY THE SANTA MONICA REDEVELOP~ENT AGE~CY FOR THE COST
OF CERTAIN PARKING AND PUBLIC D1PROVEt1ENTS FOR THE
BENEFIT OF THE DOWNTOWN REDEVELOPMENT PROJECT
.
SANTA MO~ICA REDEVELOPMENT AGE~CY
NOVEMBER 29, 1985
Exh~bit B
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TABLE OF CONTE~TS
1.
Introduction
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11.
Est~mated Tax Increment Funds Propos~d
to B~ Used to Pay Costs of Th~rd Street
Parking and Public Improvements
III.
Facts Supporting Flndings
A.
The Thlrd Street Mall Parklng and
Publlc Improvements Are of Beneflt
to the ProJect Area
B.
Financlng Alternatives: No Other
Reasonable Means of Flnanclng the
Thlrd Street Parking and PubllC
Improvements 15 Avallable to the
Communlty
IV.
The Redevelopment Purpose for which Tax
Increment Funds are Belng Used to Pay
for the Thlrd Street Parking and PubllC
Improvements
Ex hlbIt A -
Cooperation and Relmbus~ment
Agreement betwpen the Redevelopment
Agency and the CIty of Santa Monlca
Ex h Ib 1 t B -
S1te Map
Ex hi bit C -
Excerpt of Thlrd Street Mall SpecIfIC
Plan Prel~mlnary Plan - July, 1985
ConstructIon Cost EstImates
(for Parklng and PubliC
Improvements)
PA.GE
1
3
3
3
4
5
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I.
INTRODUCTION
The Santa Mon 1 ca Redeve 10plT,ent Agency ("Agency") has prepared
thIS sUIT,lT,ary report pursuant to Sectlon 33445 of the CalIfornIa
Con.rr-,unI ty Redeve lopn,ent Law (Heal th and Safety Code Sec tlons
33000 et seq.).
.
ThIS SUItUT,ary report s~ts forth certaIn detai ls of the Thlrd
Street Mall Park Ing and PublIC !It,P rovelT,en ts Plan (the "Plan")
WhICh pertalns to the development of certaIn parkIng and publIC
lIl,proven,ents for the benefI t of the COlT,mUnl ty as a whole, and the
Downtown Redevelopn,ent ProJect (hereInafter "ProJect"), In
partIcular.
Attached to this summary report as ExhIbIt "A", and lncorporated
hereIn by reference, lS a proposed CooperatIon and ReImburseffient
AgreelT.ent (IIAgreerrlent") between the Agency and the Ci ty of Santa
MonIca (IICIty") for the developffient of certaIn parkIng and publlC
IIllproverr,ents for the benefl t of the Downtown Redevelopn,ent
ProJect.
.
Pursuant to the Plan, the CIty ln cooperatIon WIth the Agency
WIll make arrangements to deSIgn, construct and Install parkIng
and publIC IIl,proven,ents WhICh Include, but are not llIl,I ted to,
the follOWIng maJor components:
A. Open Space Improvements
The open space proJect lrnprovernents lncorporate the follOWIng
e leIl,ents:
o OrganIzatIon of street furnIture, landscape, sculpture,
and other elerr,ents to def I ne a ser les of dI stInc t ac-
tlvlty spaces along the Mall. Such rr,ay Include paSSIve
outdoor SIttIng areas WIth shade trees and benches, for-
ma 11 zed dIn 1 ng and enterta Inn,ent areas, sculpture garden
and art gallery paVIlion, and chIldren's play area.
o COITlITlOn logo, WhI ch becon,es unIquely Ident If Iable WI th
the ThIrd Street Mall, to be Incorporated on SIgns, en-
try structures, In forrr,a t I on k I ask sand dI rector les, ad-
vert i sen,en ts, and ather elen,e nts.
o
Pylons, ga teways, fl ag pol es, or
at each street IntersectIon to
entrIes to the Mall.
other deSIgn elen,ents
defIne the prInCIpal
o
New landscape (trees and plan ter s) to provIde shade,
color and effiphasIs, as approprIate, to the new functIon-
al uses on the n~ll.
.
o
He-paVIng
an,ong the
of the
three
Mall
blocks
sur face area to prov 1 de ur.:. '::.i
and lInkages WIth perIpheral
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streets and locatlons
e tc. ) .
(e.g., PalIsades Park, pIer,
o
SpecIal paVIng treatrr.ents at the Mall's
WI th WIlshi re, Santa Monl ca, Ar I zona, and
provide contInuIty among the three blocks.
IntersectIons
Broadway to
o New street fUFnIture selected to create a sense of
unIforrrolty and' therr.e for the Mall area. ThIS !f.ay In-
clude benches, trash receptacles, drInkIng fountalns,
bollards, blcycle racks, news racks, and bus shelters.
o Banners on lIght poles or other ele[T.ents to create a
colorful, festIve envlron~ent.
o New lightIng fIxtures to prOVIde a safe and functIonal,
as T,\Iel1 as, festIve and eXCItIng nlghttln.e enVIronrr.ent.
o Introduction of paVIlIons WIthIn the central portIon of
the 1300 block of the Mall for retaIl sales, art dl s-
play, and Infor~atlon.
o Slgnage unIfIed by graphIC deSIgn (color, SIze, letter-
1 ng, shape, logo, etc.) to Iden t 1 fy loca tl ons and uses
and prOVIde dIrectIons and lnforffiatlon.
.
o
Passenger drop-offs at each cross street.
B. Assoc I ated In,proven.en ts
ASSOCIated WI th these Ill,prOVeIt,ents would be the developll,ent
of a plaza 10 the 1300 block as a central gatherIng space and
focal pOl nt for COIt.!lLunl ty actl VI ty. Thl s pI aza should be
structured to faCIlItate outdoor concerts, theatrIcal perfar-
ItLanCeS rand exh 10 I tIons. Dlnlng areas should be concentra ted
around thIS space and closely lInked to the adJacent shops
and uses.
.
It IS recoITLIT,ended that addl tlonal Inlproven,ents be D.pleIT,ented
along the rr.a)or open space corrIdors perIpheral to and ex-
tendIng outward froIl. the Mall. These Include the (l) re-
bUIldIng of the SIdewalks and parkIng areas located on ArIZO-
na Avenue to accon,Il,odate the weekly open-aIr farnlers' IT,arket
and establIsh a pedestrIan pro~enade lInkIng the ThIrd Street
Mall WI th PalIsades Park, (2) IntroductIon of streetsc3pe
elerr,ents and slgnage along the streets WhICh cIrcun,scrIbe and
bIsect the ThIrd Street Mall (WIlshIre Boulevard, Santa MonI-
ca Bou levard, Broadway, Second Street, and Fourth Street),
and (3) In.proven,ent of alleys (Eas t and Wes t Mall Courts) to
faCIlItate and prOVIde an attractIve and safe enVIron~ent for
pedestrIan actIVIty, as well as contInue truck and auto~oblle
delIverIes.
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C. Other- Irr.pr-overr,ents
The Plan provIdes for the developl'",ent of n.ul tI-Ievel passage-
way structures lInkIng the eXIstIng par!(;:Ing structures WIth
the Mall. These passageways n,ay I ncorpora te reta 11 uses at
the ground elevatIon and reSIdentIal unI ts above. Assun-.lng
that passageways would be lntegrated lnto the proposed hotel,
departn,ent store, afld IIdesIgn-specialI ty" center structures,
only three would be requlred to lInk the reITlaInIng parkIng
structures to the Mall.
The Plan prOVIdes for the modlflcatIon of the ground level of
the parkIng structures WhICh are physlcally sUltable to ac-
COIT.IT,oda te retaIl serVIce and COIT,n,e rc Ial uses frontIng on
Second and Fourth Streets.
D. ClrculatIon and ParkIng
.
I n the 1986-1999 per 1 od, prOJected deve loprr,ent 1 n con forIT,ance
WIth the Plan WIll neceSSItate the expanSIon of the parklng
supply for the ThIrd Street Mall and larger parkIng dIstrlct.
It IS rec0rMT,ended that certaIn of the eXIstIng parlung struc-
tures be expanded to theIr full structural capacI ty by the
addItlon of three levels for an overall Increase of approxl-
mately 900 spaces.
II.
ESTIMATED TAX INCREMENT FUNDS OR PROCEEDS OF BONDS TO BE
USED FOR PAYME~T OF CONSTRUCTION OF PARKING, PUBLIC
FACILITIES AND IMPROVE~E~TS.
Attached hereto as ExhIbIt lIell, are estl~ated constructIon costs
(potentIal use of tax lncrerr.ent funds or proceeds of bonds) for
the ThI rd Street Mall Park log and PublIC In,proverr,ent Plan (1 n
1985 dOllars).
The Agency WIll pay the CIty for the actual as-bUIlt costs In-
curred by the CIty for approved pub11C Improvement work together
WI th s IIT,p!e lnteres tat the rate of ten percen t (Hl %) per annurr,
ca lcul a ted fron. the t ItT,e of the CI ty IS payn,ent of such costs.
The CIty'S preparatIon of plans and specIflcIations and perfor-
mance of all CIty superVIsory and engIneerIng work shall be reITh-
bursed by.the Agency at the CIty'S actual costs IncludIng payroll
costs, n,a ter lal, travel, and other related expenses, together
WIth sIiT,ple Interest at the rate of ten percent (10%) froIT, the
tlffie of the CIty'S accrual of such CIty staff costs, or the ef-
fectIve date of thIS Agreeffient, whIchever occurs last.
.
111.
FINDINGS
A. The ParkIng and PublIC FaCIlItIes and Irr,provel1,ents are
Of Benef I t to the 00''':0 town Red evelopl1.ent Pro] ect Area.
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The proposed parkIng and publIC l~prove~ents referred to In
See tl on I I above and the at tachrr,ents here to wIll benefIt the
Downtown Redevelopn,ent ProJect Area In that they wIll:
o AId In the ellThlnatlon of bllght by replacIng or upgrad-
ing deterlorated walkways, landscapIng and recreatIonal
areas;
,
I
o At tract pr 1 va te developrr,ent by aesthet 1 C IIT,prOVen,ents;
o Increase recreatlonal opportunItles for reSIdents of the
ProJect Area;
o FulfIll Agency oblIgatlons to In,prove traffIC clrcula-
tlon, pedestrIan access and safety for the Downtown Re-
development ProJect Area.
o To the extent that such publIC In,proven,ents are outslde
the ProJect area, the Improvements WILL prOVIde a
heal thy and safe enVlronn,ent WhICh attracts users In a
POSItIve way, and the presence of such users WIll pro-
VIde a better econorr,IC clIn,ate and p,ore Jobs for reSl-
dents of the ProJect Area.
o
Pur suant to the Of f-S I te Park I ng EaselT.ent and PerIl,I t
Ag reelllent da ted Decen.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
hel r s, successor s and ass 19nees) an easen,ent and per:r.l t
to use not less than 278 eXIstIng parkIng spaces dIVIded
approxIrr,ately equally bet'Neen ParkIng Structures Nos. 2
and 5, located In the Clty'S Downtown ParkIng and BUSI-
ness Irrlproven,ent DJ.strIct. Such easen.ent and par'-clng
agreerr,ent was granted In order to allow Santa MonIca
Place ASSOCIates to co~ply WIth the par~Ing requlre~en~s
necessary for developIl,ent of the shoppIng center, Santa
MonIca Place, In the Downtown Redevelopr~nt ProJect
Area. Such easerr.ent and perITII t Included the rIght of
vehlcular and pedestrIan access to and egress fron, the
spaces together wlth a rIght to use all other I~prove-
~ents and faCIlitIes related to the spaces as are neces-
sary for theIr use. Pern,1 ttees n.ay InclUde, WI thout
IHhl ta tlon , agents, e!'ll!?loyees and representatl ves of
Developer, departrr,ent stores, space lease tenants and
any other occupants of the ShoppIng Center - Santa Moni-
ca Place.
AccordIng to the Third Street Mall SpeCIfIC Plan - Tech-
nIcal Background Report, l7 DeceIT.ber 1984, there IS
llffilted excess parking capacity In the Downtown ParkIng
and BUSIness lrr,proven,ent DIstrIct, espeCIally In ParkIng
Structure Nos. 2 and 5. ThIS lln,ItS the rr.arl{et poten-
tIal and bUlsness VIabIlIty for eXIstIng and proposed
econon,IC actIVIty and general developnlent In the area.
I tIs al so recog nl zed tha tIt I S necessary to 1IT.prove
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user access to the avaIlable parkIng through the cre-
at 1 on of ped estr 1 an accessways and l[T,pr oved secur I ty and
related an,enl tIes.
It should be noted that although the ThIrd Street Mall
area IS not Wl thIn the des Ignated boundar les of the
Downtown Redevelopn,ent ProJect Area, 1 t IS adJacent to,
and WIthIn, tlJ'e In..n,edlate neIghborhood of the ProJect
Area. The Mall i~prove~ents WIll therefore provlde dl-
rect benefl t to the Downtown ProJect Area as well as
persons reSIdIng, vis1tIng or workIng In the lIMI'.edlate
neIghborhood In WhICh the ProJect IS located.
AccordIngly, the use of Downtown tax lncren,ent for the
ThIrd Street Mall parking and publIC Improvements lS of
bene f 1 t to the Down town Redevelopn,ent ProJec t Area.
B.
No Other
FaCll1tles
COIT,IT,Unl ty
Reasonable Means of
and Irr,provel.l,ents
FInanCIng the PublIC
IS AvaIlable to the
.
In CalIfornIa, [T,unIcipal or tax-exell,pt fInanCIng has tradI-
tIonally taken one of two baSIC forIT,s: general obllgatlon
bonds or revenue bonds. General oblIgatIon bonds pledge ad
valorell, property taxes WIthout lln,lt as to rate or an,ount;
hence, they were hI gh ly regarded by 1 nvestor sand con,rr.anded
the 1000vest borrOWIng rate because of theIr :t,lnIIT,al credIt
rlsk. However, Artlcle XIIIA of the CalIfornIa constItutIon,
adopted In 1978, prohIbIts Issuance of such general oblIga-
tIon bonds.
Revenue bonds are payable front a spec 1 f IC revenue source
other than property taxes. These bonds have been used exten-
SIvely for fInanCIng water, sewer, or other utIlIty syste~s,
toll brIdges and airports, where revenues of the enterprIses
are reasonably well assured. However, the proposed Iffiprove-
ffients WIll not generate any revenue, so such fInanCIng IS not
feaslble.
.
The Cl ty' s general revenues are another pass Ible source of
revenue for the proposed Irrtprovep,en ts. However, folloWl ng
the passage of PropOSItIon 13, severe straIns were placed on
the Clty'S revenues because of the curtallIT.ent or WIthhOldIng
from cltles by the State of CalifornIa of revenues tradltlon-
ally subven ted to local governrr,ent. Wh lIe son,e 0 f these
sources have been returned to CItIes In the State's FY 1985-
86 budget, there IS no certainty that the reductIon of the
subventIon strea~ mIght not reoccur. The fact of hIstorIcal-
ly dur.! nl shed revenue, uncer tal nty of future revenues, and
the need to prOVIde a SUItable level of serVIce, dictates
that If the CIty advances any of lts general operatIng
reserve for the proposed In,proverr,ents, a IT,eans of recover Ing
the cost be avaIlable fran, the Agency fro[T, tax lnCre[T,ent
revenues.
- 5 -
.
.
.
. ~
Tax Incre~ent revenues or tax allocatIon bonds proceeds are
the only vIable ihethod of fInanCIng the proposed IIl,prove-
Itlents. Tax allocatlon bonds are payable fran-. 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 benefI ted. Tax 1 ncren,ent revenues are allocated
annually to the Agency to the extent of Agency Indebtedness,
and are paId froIT. ';TIe portIon of taxes 10 excess of the as-
sessed valuatIon or 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 IMPROVEMENTS.
The RedevelopITLent Plan for the Downtown Redeveloprr.ent ProJect
conterr.plates that a nurr,ber of publIC and prIvate IITlproverr.ents
WIll be prOVIded to turn the ProJect Area froIlI stagnant and un-
deru t IlIzed 1 and to produc tI ve use and an asset to the Cl ty.
Arr,ong the publIC IIllproverr.ents and utllItles to be prOVIded In
connectIon wlth the redevelop~ent of the SIte as prOVIded for In
the RedevelopltLent Plan 15 the provI S 1 on of park 1 ng and sIte prep-
aratIon neceSSItIes.
SInce the Redevelopment Plan for the ProJect was adopted In 1976,
the Agency has been In the process of redevelopIng the VICInIty
of the SIte by plannIng and developIng necessary publIC Improve-
n.ents (such as parkIng and related faCIlItIes) and utIlItIes to
InLprove the condl t Ion of Inadequa te fac III tIes ',olh Ich were lIl.ped-
Ing on the deve lopl'fLent 0 f the area. The Agency now proposes to
contInue that redevelopn,ent effort by IncreaSIng the an-.ount of
avallable parkIng, the eXIStIng publIC area a~enIty appeal,
n.arket potentIal, secur 1 ty, and overall access to the ProJect
Area.
The proposed lffiprovements WIll encourage better use of the shop-
pIng center by ProJect Area reSIdents and persons reSIdIng, vISt-
ing or err,ployed In the IIlLrr.edlate neIghborhood In WhIch the ProJ-
ect IS located. The Agency seeks to further the pur?oses of re-
developlllent by It,ak 1 ng the area rr.ore a ttracti ve to VIsItor sand
res Iden ts, thus expand 1 ng err.ployn,ent oppor tunI tl es for jobless
and undererrLployed per sons and provI dIng an env 1 ronn-,ent for so-
CIal, econorfllc and psychologIcal growth and well-.beIog.
It 15 ant IC Ipa ted that the pa rk Ing and publ1 c IIT.prOVe[ljents WIll
attract reSIdents and VISItors to the ProJect Area, WhICh WIll
enhance the development of adJacent portIons of the ProJect Area
and therefore prov 1 de dI rec t benefI t to the Down town Redevelop-
rr,ent ProJect.
ps 2SUIT,
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