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M-4/17/1978 ---- ~ ,~ -- ~ -" 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. . . ........ It . -.::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 PAGE NO 2 -J i 1 Pnof of August 30. t 984 2 3 GALLEY 1- SA~T\ \IONICA-80.!9-9 Bowne of SF. Ine, (415) 86-1-2300 . ~7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . Redevelopment Agency of the City of Santa Monica (Los Angeles County, California) 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 OFFICIAL STATEMENT Relating to $5,700,000 Ocean Park Redevelopment Project Tax Allocation Bonds, Series 1984 . 57 58 59 60 61 62 63 64 65 66 67 THE DATE OF THIS OFFICIAL STATEMENT IS SEPTEMBER 11, 1984 . . . ProD! of September 4, 1984 SA:'>JTA 1\lONICA-8049-9 Bowne of 5.F , Ine. (415) 864-2300 GALLEY 2- 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 1 2 3 . 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 tt 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 57 58 59 60 61 62 63 64 65 66 67 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 "'"Ith 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 t 2 3 . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 7 8 9 10 11 12 13 14 i5 16 17 18 19 20 21 22 23 24 25 26 27 57 58 59 60 61 62 63 64 65 66 67 Prool 01 AUlust 30, 1984 GALLEY 4- SA:';TA "\10NICA-8049-9 TABLE OF CONTENTS Page TABLES A:-';D SCHEDULES Bowne of SF. Ine, (415) 864-2300 Page 1 2 3 . 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . Praaf 01 August 30. 1984 SANTA ~!ONICA-8049-9 Bowne of SF, Ine. (415) 864-2300 GALLEY .5- 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 57 68 59 60 61 62 63 64 65 66 67 . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 2 SA:-,TTA ~ZOl'\ICA-8049-9 Bowne of 5 F , Ine. (41-5) 864-2300 Praot at Augusl 3D, 1984 GALLEY 6- 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 57 58 59 60 61 62 63 64 65 66 67 Proof of September 4. 1984 SAXTA ~IONICA-8049-9 Bowne of SF, Ine, (415) 864-2300 GALLEY 7- . 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 Cahforrua, 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 pnnclpal amount of $5,700,000 of the deno1Tllnation of $5,000 or any mtegral multiple thereof, are dated October 1, 1984, are numbered consecutively 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 ApnI I, 1996 October I, 1996 and Apnl 1, 1997 October I, 1997 and ApnI L 1998 October L 1998 or thereafter 102 % 10 Ph 101 Iom-'2 100 . Notice of redemptIon wIll be mailed to registered owners of affected Senes 1984 Bonds. . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 . 1 2 Prool of Aogost 30. 1984 SA:'\ITA \IONJCA-8049-9 Bowne of SF, Jnc. (415) 864-2300 GALLEY 8- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 The term Bonds matunng on October 1, 2006 (except 5620.000 thereof scheduled to be paid at matu- rity) are subject to mandatory redemptlOn 111 part by lot pnor to their maturity date at the pnnclpal amount thereof, plus accrued mterest thereon, m the followmg mmlmum amounts on October 1 of each of the foUo\Ving years PrincIpal PrincIpal Year AmotJnl Year AmotJnt 2000 $345.000 2003 $460.000 200t 380.000 2004 5tO,OOO 2002 420,000 2005 560,000 Registration The Senes 1984 Bonds wIiI be Issued as fully registered bonds without coupons Ownership may be changed upon the registratiOn books maIntaIned by the Fiscal Agent Tax Status The OpInlOn of Bond Counsel referred to below will state that Interest on the Senes 1984 Bonds IS exempt from Federal mcome taxes and from State of Cahfomia personal mcome taxes under eXlstmg statutes. regulations, rulings and court deCISions Legal Opinion The legal opIDlon of Mormon & Foerster, Los Angeles, Cahfornla, Bond Counsel. approvmg the valIdity of the Series 1984 Bonds WIll be made avaIlable to purchasers at the ume of ongmal delIvery of the Senes 1984 Bonds, and a copy thereof wIll be pnnted on each bond The legal opInIOn IS only as to legalIty and IS not mtended nor IS It to be mterpreted or relIed 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, mUnIcipal corporatIons. political subdiVISions and pubhc bodies, as well as banks, bankers, trust compames, savmgs banks. msurance compames and vanous other financial mstItutIons and fiduclanes may legally !Dvest funds wlthm their control In bonds or other oblIgations issued by a redevelopment agency Such bonds and other obligatIons are also made authonzed secunty for all publIc depoSits The Supenntendent of Banks of the State of CalIforma has ruled that bonds of a redevelopment agency are by sald statute, ebgIble for Investment by savmgs banks In Cal1forma 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 Interest and premIUm received upon the sale of the Senes 1984 Bonds Will equal the amount of mterest payable to and mcludlllg October 1. 1985. 57 58 59 60 61 62 63 64 65 66 67 . . 31 32 33 34 as 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 . 56 57 58 59 60 61 62 63 64 65 66 67 1 2 PlOof of August 30. 1984 SAl\lA :\1ONICA-S049-9 Bowne of 5 F . Inc. (41.5) 864-2300 GALLEY 9- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 (b) To the Reserve Account wlthm the Debt Sef\'lce Fund, zn amount equal to maxnTlum 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 In the amounts as follows Reserve Account ReqUIrement (Series t984 Bonds) Funded Interest (1 year @ 1025%) Allowance for DIscount BId (2 50% ) Bond Insurance PremIUm Costs of Issuance Redevelopment Fund Total S 681.000 584.250 142.500 142.500 100,000 4,049,750 55,700,000 The Reserve Account Moneys ill the Reserve Account wIll be withdrawn and used by tbe Fiscal Agent solely for the purpose of replemshmg the Interest Account or the PrInCIpal Account m the event of any defiCIency In eIther account, or of paY10g the mterest on or prInCIpal 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 retmng all of the Bonds then outstandmg A mIlllmum balance equal to maxImum annual debt serVIce on the Bends WIll be mamtamed In the Reserve Account Should the amount lTI the Reserve Account be less than the reqUIred mlTIlmUm balance, the FIscal Agent w111 restore the balance by transfer of moneys from the Debt Service Fund Any moneys m the Reserve Account III excess of the mInImUm balance shall be transferred to the Debt Sen1ce Fund The Redevelopment Fund Moneys m the Redevelopment Fund may be used for the purpose of paymg any portIon of the costs of the Project. mcludmg 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 dlSFoslt1on of land therem. the repayment of any advances made by the Cay and the necessary expenses III connecl1on WIth the I~suance of the Senes 1984 Bonds Pledge and Allocation of Taxes Under proVISions of the Cahforma ConstItutlOn and the Law, taxes on all taxable property m the Project area leVled by any taxmg agency when collected WIll be dIVided as follows (I) An amount each year equal to that amount whIch would have been produced by the. then current tax rates apphed to the assessed valuatIon of such property wlthm the Prolect area last equalized pnor to the effectlve date of the ordmance approving the respeclIve Redevelopment Plans (the 1959/60 assessment roll of the County for Project I (a) and the 1960/61 assessment roll for Project I (b)) will be patd mto the funds of the respectIve taxing agenCies. (2) Taxes (mcludmg all payments. re1mbursements and subvenl1ons. IT any. specIfically attrIbutable to ad valorem taxes lost by reason of tax exemptIons and ta'l. rate hmltallons) receIved over and above that amount ("Tax Revenues") will be depOSIted m 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-monrh penod endmg October 1 (less any amounts then on depOSIt 10 the Interest Account and Prmclpal Account). plus an amount, If any, necessary to mamtalll the reqUired Reserve Account balance ("Pledged Tax Revenues") so long as any of the Bonds are outstandmg or unproVIded for . . tI 1 2 P,uf of August 3D, 1984 SAKTA :-'IONICA-8049-9 Bowne of SF. Inc. (415) 864-2300 GALLEY 10-- 6 7 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 The Agency has no power to levy and collect taxes. and any leg.slanve property tax de-emphasIs or provISIon of additIonal sources of mcome to taxln,-! 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 prmclpal of and mterest on the Senes 1984 Bonds (See "The Senes 1984 Bonds-Property Tax and Appropnatlon Ll1Iutatlons" ) LIkewIse, broadened property tax exemptions or any hmltatIon on. or voluntary reductIOn m, the rate of taxatIOn by taXing agenCIes could have a sImrlar effect The Debt Service Fund The ResolutIOn provIdes that the Debt ServIce Fund WIll be held by ihe Fiscal Agent Pledged Tax Revenues wlll be deposIted 10 the Debt ServIce Fund and wlll be set aSIde m the followmg speCIal accounts wIthm the Debt ServIce Fund m the foIlowrng order of pnonty (1) Interest Account-On or before March 31 and SeJ'ltember 30 of each year. begrnOlng on March 31, 1986, an amount WhICh. together WIth any money already contamed 10 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, begmOlng on September 30, 1987, an amount WhICh. together WIth any money already contamed ill the Prmclpal Account. IS 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 WIll mamtam the Reserve Account at an amount equal to maXImum annual debt setvlce (4) Holdmg Account-On or before September 30 of each year. begrnmng on September 30, 1985. all money then remammg ill the Debt SerVIce Fund after the above-descrIbed transfers have taken place. to be used (I) to replelllsh the Interest Account, the Pnnclpal Account arid the Reserve Account. m such order. or (n) to pay pnncIpal 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 1D the Holling Account shall. at the Agency's dIrectIOn, be (I) used for redemption of any Bonds subject to call and redemptron; (2) used for the purchase of Bonds at publtc or pnvate sale at such pnces as the Agency in its dlscretron may determme, or (3) If Tax Revenues equal to 125% of annual debt serVlce have been depOSIted III 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 III default, transferred to the Agency and used for any lawful purpose When suffiCIent funds have been placed wah the FIscal Agent to redcem all outstandmg Bonds, no further Pledged Tax Revenues WIll be allocated to the FIscal Agent by !he Agency 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Property Tax and AppropriatIOn Limitations Article XIlI A of the California Constitution Section 1 of ArtIcle XIII A lImns the maxunum ad valorem tax on real property to I % of full cash value (as defined m Section 2), to be collected by the counnes and apportlOned 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 m ownershIp has occurred after the 1975 assessment" The full cash value may be adjusted annually to reflect mflatlOn at a rate not to exceed 2% per year, or reductlOn III the consumer pnce mdex or comparable local data, or reduced m the event of dechnmg property value caused by damage, destruction or other factors The California State Board of Equaltzanon has adopted regulatIons, bmdmg on county assessors. mterpreung the meanmg of "change III ownershIp" and '"new constructIon" for purposes of determlOlllg full cash value of property under Article XIII A 56 57 58 59 60 61 62 63 64 65 66 67 . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 -. 1 2 Pra~f af August 30. 1984 SAXTA ~[OKICA-8049-9 Bo\yne of SF. Ine , (415) 864-2300 GALLEY 11- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 A proposed lilinatlve measure whIch wIll appear on the ~ovember 1984 ballot would. If approved by the voters. amend ArtIcle XIII A and Impose further hnutanons on taxmg agenCIes (See "The SerIes 1984 Bonds-Property Tax and AppropnatJon Lumtauons-November ImtlalIve" ) Implemenrrng Leg/slatlOn Leglslauon enacted by the CalifornIa LegIslature to Implement Article XIII A (Statutes of 1978. Chapter 292. as amended) provides that notwtthstandmg any other law, local agenCIes may not levy any property tax except to pay debt Sef\1Ce on mdebtedness approved by the voters pnor to July 1. 1978, and that each counry WIll levy the maxImum tax perm1lted by ArtlCle XIII .-\ of $4 00 per S I 00 of assessed valuation (based on the tradlllonal practlee 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 wltlun the county III proportIon to thelT average share of taxes ]e\'1ed m certaIn prevIOus years The apportiOnment of property taxes In fiscal years after 1978119 has been reVised pursuant to Statutes of 1979, Chapter 282 WhICh prOVIdes rehef funds from State moneys begmmng in fiscal year 1979/80 and IS deSIgned to pro.1de a permanent system for sharIng 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 Proposlllon 13 mstead of direct State md School dIstrIcts receive a correspondIngly reduced amount of property taxes. but receive compensatIon directly by the State and are gIven addIfIonal relief Chapter 282 does not affect the denval10n of the baSiC tax levy (54 per $100 assessed valuatIon) and the bonded debt tax rate EffectIVe for the 1981/82 fiscal year. assessors In Cahforma no longer record property values on the tax rolls at the assessed value of 25 % of market values All taxable property IS shov.'I1 at full market value Consequently the ta'!: of 54 per SIOO of assessed value IS expressed as SI per $100 of taxable value In confoIDllty WIth thIS change of procedure, aU taxable propeny value Included III thIS OffiCIal Statement (except as noted) is shown at 100% of market value and all tax rates reflect the $ I per $ 100 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'SIlUS" among the ]UnsdICtlOns that serve the t3.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 leVYIng of any other ad valorem property tax above the lImIts set In SectIon I, even WIth the approval of the affected voters The leglslallvely prescnbed method of county assessors IncreaSIng real property valuation to reflect the mflatIonary rate (but not to exceed 2% per year), commencIng WIth the 1976/77 tax year. has been upheld by the Cahforfila Court of Appeal. but would be changed as a result of passage of the proposed amendment to ArtIcle XIII A (See "November ImtIatIve", below) 57 58 59 60 61 62 63 64 65 66 67 1 2 . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 46 49 50 51 52 53 . 'ruut Dr Augusl 3D, '984 SA;\'TA MONICA-8049-9 Bowne of S.F . Inc. (415) 864-2300 GALLEY 12- 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 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. repeahng 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 mventory replacement revenue and revenue denved by Virtue of supplemental assessments (dlscussed 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 pnor year's excess w1l1 be credited agamst the speCial subventIOn due . Because of the residentIal nature of the Ocean Park Redevelopment Project. the amount of the replace- ment revenue receiVed by the Agency has been mmrrnal m each fiscal year (approximately S 150) Supplemental hen Dates LegIslatron 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 completiOn of new construction Pnor law authonzed assessment only as of the March 1 tax hen date next follOWIng the change and thus delayed the realiZatIOn of mcreased property taxes from the new assessments for up to 14 months Chapter 498 thus would have proVided mcreased revenue to redevelopment agenCies to the extent that new constructIon Or changes of ownershIp occur withm the boundaries of redevelopment projects pnor to the March 1 hen date Subsequent legIslatIon (Statutes of 1983, Chapter 1120). however, requued that the revenue generated by these supplemental assessments be allocated solely to school dlstncts for the next two fiscal years. with the eXcephon of a small amount wluch would be proVided to counttes as reImbursement for mcreased admrn- Istratlve 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 wlll be eligible to receiVe potential increases in revenues as prOVided m Chapter 498 (Addltlonal mformatlOn concerning the Impact of thIS leg;slatlOn is contained m AppendIX B) Article XIII B of the Callforma ConstitutIOn ArtIcle XIII B hmits the annual appropriations of the State and any City, county, school distnct, authonty or other pollt1cal subdlVlsIon of the State to the level of appropnatIons for the pnor fiscal year, as adjusted for changes m the cost of hving, populatiOn and services rendered by the governmental enl1ty The "base year" for estabhshmg such appropnatlon hmlt IS the 1978/79 fiscal year and the limn IS to be adjusted annually to reflect changes in populal1on. consumer prices and certarn mcreases In the cost of services prOVIded by these public agenCIes 57 58 59 60 61 62 63 64 65 66 67 . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 - 1 2 Praaf af August 3D, 1984 SA~TA ~1ONICA-8049-9 Bowne of SF, Inc. (415) 864-2300 GALLEY 13- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Appropnahons sub}e<:t to Artlde XIII B mdude generally the proceeds of taxes leVied by the State or other entity of local government. exdusIve of certam State subventIons. refunds of taxes. benefit pay- ments from retirement, unemployment insuranCe and dIsability insurance funds "Proceeds of taxes" mclude. but are not bmlted to. all tax revenues and the proceeds to an entity of government from (l) regulatory hcenses. user charges. and user fees (but only to the extent such proceeds ex<:eed the cost of provldmg the service Or regulation). and (2) the mvesttnent of tax revenues ArtIde XIII B mcludes 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 revlsmg tax rates or fee schedules over the subsequent two years To the extent such tax revenues are reVised. Tax Revenues may be affected. smce taxes allocated to the Agency are generated by taxes leVied by certain taxmg agenCIes havmg junsmchon Wlthm the Project area Sechon 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 Indebtedness 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 portion of taxes be deemed receipt of proceeds of taxes by, or an appropnatlon subject to the l1mItatlon of, any other publIc body Wlthm the meanlllg or for the purpose of ArtIcle XIII B or any statutory provlSlon enacted 10 implementation thereof While the Agency would thus appear to be excluded from the hmItatlOns of Artlcle XIII B. the questIon of the constItUtlonahty of SectIOn 33678 IS currently before the CalIfonua appellate courts 10 two pendmg cases Vnld the Issue IS deCIded by the appellate courts, the Agency can gIVe no assurance as to the constltul1onahty or scope of Section 33678 However, based upon an analysIS of the Constltutlon and laws of the State of Cal1fomra. Bond Counsel IS of the opinIon that the CalIfornia Supreme Court should hold that the Tax Revenues are not proceeds of taxes Wlthm the meaning of Arncle XIII B November 1984 Imtiatlve Artlcle XIII A and Article XIII B were adopted pursuant to measures quahfied for the ballot pursuant to California's constitutional initlatlve process From tIme to lIme, other Imtiative measures could be adopted by CalIfornIa voters The adoptIon of any such IOmahves ooght 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 adoptIon of ArtIcle XIII A has qualIfied an IDltIatlVe (PropOSItIOn 36) for the November 1984 general electIOn If enacted, among the proVISIons of the resultmg constItutIonal amendment affectmg the Agency would be the requrrement that values on the 1978/79 tax rolls be reconCiled to any annual mflatlOnary adjustments (Hooted to a maximum of 2.0% annually) to real property values used 10 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 Article XIII A The IIDtiatIve also would require the refundmg of all property taxes paId, plus mterest, 1D excess of the amount which would have been reqUired With the lower values The InItlatlve does not IDclude 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 IDltiahve Will be adopted or to detennme With absolute certamty the measure's finanCial Impact on the Agency. However. the Agency's Fiscal Consultant has estImated that the adverse rmpact of the proposed ImtIatlve wIll result In a one-time refund amount, meluding lUterest, 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 the Fiscal Consultant shown 1D Schedule 2 do not reflect the estImated adverse Impact of the proposed InItiative 57 56 59 60 61 62 63 64 65 66 67 . 6 7 B 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 1 2 Proof of August 30, 1984 SAl\TA ~IONICA-S049-9 Bowne of SF. Inc. (41.:;) 864-2300 GALLEY 14- Issuance of Additional Bonds AddItional ta'\: allocatton bonds on a panty with the Senes 1984 Bonds ("Panty Bonds") may be Issued provided (a) The Agency shall be m compliance with all covenants set forth III the Resolunon. (b) Tax Revenues (exclusIve of State of Caltforma business mventory subventlon pa}ments) receIved or to be receIVed from the most recent assessed valuatIon of taxable property m 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 ralSe the mInimum balance in the Reserve Account to Its requIred level of maximum annual debt servIce and the balance (except for premIUm. accrued mterest and funded \Dterest. If any, and except for any portIon of such proceeds to be used to refund a portIOn of the outstandmg Bonds) IS deposIted m the Redevelopment Fund, (d) The Panty Bonds mature on October 1 and mterest IS payable Aprtl 1 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 (mcludIng the Accounts therem) may. and upon wntten request of the Agency WIll. be mvested III Federal Secuntles (as defined III the ResolutlOn) or negottable 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 Illvestment IS estImated to be. reqUIred to be paId out under the ResolutIon Moneys III the Reserve Account may, and upon wntten request of the Agency. shall be mvested In 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 mvestment mcome received pnor to completIon of the financmg of the PrOject shall be deposIted In the Redevelopment Fund and all Investment Income receIved thereafter shall be deposIted m the Debt Sen;lce Fund Other Covenants Other covenants of the Agency under the ResolutIOn are summanzed below (a) The Project wIll be completed WIth all practIcable dispatch III 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 ,vll1 be made which would substantially lll1paIr the securIty of the Senes 1984 Bonds or the nghts of Bondholders 57 58 59 60 61 62 63 64 65 66 67 . . . 56 57 58 59 60 61 62 63 64 65 66 67 1 2 Procl 01 August 3D, 1984 SA~TA ~rO!\ICA-8049-9 Bowne of SF, Inc. (415) 864.2300 GALLEY 15- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 (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 obligations 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 lssued as pro- Vided m the Resolutton (d) The Agenc)' wIll at all urnes keep, or cause to be kept. proper and current books and accounts (separate from other records and accounts} 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 finanoal state- ment covenng the Project and Tax Revenues and Pledged Tax Revenues certified by a cerufied 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 reahzed by the Agency from any emment domalll proceedmgs agamst the Agency WII! be treated as Tax Revenues (g) The Agency Will not dispose of more than 10% of the land area III the Prolect to publIc bodies or other entItles 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 actlOn the secunty of the Senes 1984 Bonds or the nghts of the Bondholders would be sub- stantially lmpmred (h) The Agency wlll not use Bond proceeds m such a ma:mer as to cause the Scnes 1984 Bonds to be classIfied as arbItrage bonds wnhm the meanmg of Section 103 ( c) of the Internal Reve- nue Code of 1954, as amended, and the Income Tax RegulatIOns Issued thereunder The Resolutlon 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 1D the same manner as pnvately-owned property, as requlTed by SectIOn 33673 of the Law 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Remedies Any Bondholder has the nght by mandamus or other appropnate remedy to compel the performance by the Agency and Its members of the duUes Imposed by the Resolutlon 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 Resolutlon may be modlfied 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 Momca) No modIficatIon or amendment shall extend the matunty or Jnrerest payment date, reduce the Interest 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 modlficatlon or amendment shall reduce the percentage of consent reqUIred for amend- ment or modlficatlOn The Resolution may be modlfied or amended Without Bondholders' consent to con- fer addItIonal nghts or powers upon the Fiscal Agent or to cure arnblgultJes or defects 1 2 3 . -- 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 56 57 58 59 60 61 62 63 64 65 66 67 Proof of Seplemller S, 1984 SANTA :\lONICA-8049-9 Bowne of SF., Inc, (415) 864-2300 GALLEY 16- 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Bonds Not a Debt of the City of Santa Monica The Senes 1984 Bonds are not a debt of the City of Santa MOllica, the State of California, or any of its political subdIvISIons.. and neIther saId City, State nor any of Its polmcal SUbdIVIsions IS liable therefor The Senes 1984 Bonds do not constitute an indebtedness WIthin the meanmg of any constitutIonal or statutory debt hmlt 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 Counctl pursuant to the Commuruty Redevelopment Law With the approval of the Councll. the Mayor appomted the ongmal five members of the Agency simultaneously With ItS creatIon AppomtIve members contmued to serve unttl May 1972 when the Council, pursuant to Section 33200 of the CommUIllty Redevelopment Law as amended by Cahfomla Statutes 1970. Chapter 1392, declared itself to be the Agency and assumed all the nghts, powers. dunes. pnVlleges and Immumtles vested m a redevelopment agency The current chairman of the Agency IS Mayor Ken Edwards who was elected to the City Councd for a four-year term III 1981 and was voted to hiS current posItIon m 1983 to serve for two years Mayor Edwards [S 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 Council m April 1981 Other members of the Agency are the Rev James P. Conn who was elected to the CIty Councd 1Il 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. DaVld G Epstem. an attorney and commumty orgaruzer, who was elected to the CIty CounCil In Apnl 1983, Wtlham H. Jenmngs, an attorney. who ]S servmg hiS second term on the City Council havmg been re-elected m April 1983; and Chnstme E. Reed, a homemaker and Citizen actiVIst. servmg her third term on the City Council havmg been re-elected In Apn11983 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 . . 31 32 33 34 35 36 37 38 39 40 41 42 <IS 44 45 46 47 48 49 50 51 52 53 . 1 2 Proof of AugusI 30. 1984 SA.'JT\ ~[O\'"ICA-8049-9 Bowne of SF, Inc. (4151 864.2300 GALLEY 17- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Powers Redevelopment III the Stare of California is earned out pursuant to the Commumt\' Redevelopment Law (SeclJon 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 rehabllnatlOn. or any comblllatJon of these. of all or part of a survey area and the proviSIon of such resldenl1al. commercial. mdustnal. publIc or other structures or spaces as may be appropnate or nece~sary III the mterests of the general welfare. mc1udmg recreational and other factllt1es lllcldental or appurte:Jant to them The Agency IS charged \vnh the rcsponslbrhty for elImmatlOn of blight through the process of redevelop- ment Generally, thIS process IS 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. relocatlllg residents and bUSInesses. demolIshIng t1,;: deteriorated ImprOVements, gradmg and prepanng the sites for purchase by developers and provldmg for ancIllary off-slte Improvements All powers of the Agency are vested m ItS seven members The Agency exercises governmental functIOns III carrymg out projects and has suffiCiently broad authOrIty to acquire, develop. admllllster and sell or lease property, mcludmg the nght of emment domam and the nght 10 Issue boads and expend then proceeds The Agency can clear bUlldmgs and other Improvements. can develop as a bUlldmg site any real property owned or acquired. and III connectIon With such devclopmeilt ~an cause stre~ts. hIghways and sidewalks to be constructed or reconstructed and publIc utdllles to be lllstalled The Agency may, out of the funds available to It for such purposes. pay for all or part of the value of land and the cost of bUIldings. facllmes. 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 avallab1e The Agency must sell or lease rernmmng property wIthm a prOject for redevelopment by others In stnct confofIIllty 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 Within a project area The assessed valuation of a project area ~ast equalIzed pnor to adoptIon of the redevelopment plan, or base roll, IS establIshed and. C'l:cept for :lny penod dunng which the assessed valuatIon drops below the base year level. the taxmg 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 Qver the base roll may be pledged by a redevelopment agency to the repayment of any llldcbtedness mcurred m 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 ahove mdlcated Any property tax de-emphaSIS or prOVISion of addItIonal SO'.lrces of revenue to taxmg agencle<; havmg the effect of reducmg the property tax must necessanly reduce the amount of taxes that would othern'lse be avaIlable to redevelopment agenCIes Llkev""lse. broadened property tax exemptIOns could have a ~Imllar effect (See "The Senes 1984 Bonds-Property Tax and AppropnatlOn LUnItalIons") 57 58 59 60 61 62 63 64 65 66 67 Other Projects The Agency has one other active redevelopment prolect. the Downtown Redevelopment Project, which was created With the adoptIon of Ordlnance)/o 1021 of the CIty Councd on January 13. 1976 The Down- town Project contams 10 acres and IS bounded by Second and Fourth 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 In 1978 to finance constructlOn of two garages provldmg 2,030 parkmg spaces for the project . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 1 2 Proof of AOIUSI 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 IDltIal project undertaken by the Redevelopment Agency of the CIty of Santa Moruca The Ocean Park area was first designated for study as a potential redevelopment project III Apnl 1958 when application was made to 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 reductlOn lD the amount of Federal funds avadable for redevelopment. the Project was diVided mto two separate projects so that at least .one could g.o fonvacd 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 lDvolvmg about ten acres was deSIgnated PrOject No 1 (b) The Redevelopment Plan for Project No 1(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, 1961. m each case followmg reqUISIte studIes and heanngs by the Planmng COIDOllsslOn, Agency and City CounCil Amendments sUbsequently have been made to both Plans, pnncipally to change permItted land uses 57 58 59 60 61 62 63 64 65 66 67 . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 27 . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 . 1 2 Ploof 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 tluny acres and IS located near Santa MOnica's boundary with the Clty of Los Angeles (Vemce) 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 wlthm a mile and a half of the pnncipal shoppmg and commercIal areas of Santa MODIca, the Project IS only sIxteen mIles from downtown Los Angeles and one mile from the westerly tennmus of the Santa Momca Freeway. whIch affords easy access to the extenSIve freeway net\\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 slgmficant resurgence of commercial activitIes has occurred wIth many restaurants, boutIques, and specialty stores now located there Current Development The Agency and DommIon 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 m 1980 (Sea Colony I and Sea Colony II) when dIsputes arose between the partIes 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 DomInIOn 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 condomInIUms (Sea Colony III), a 5 89-acre on-Site pubhc park, off-Site beach Improvements and development of affordable housmg off-SIte The purchase pnce for the Sea Colony III SIte remams at the ongmally agreed upon 52.139.320 Other terms and conditIons are Domllllon WIll develop Sea Colony III as 153 market rate condomimums 2 Dommlon wIll be responsIble for implementatIon of the Housing Assistance and RehabihtatIon Program ("HARP") to proVIde 80 UllltS of affordable housmg withm the Ocean Park coastal zone Dommion WIll contnbute the HARP structures to a chantable orgamzatIon deSIgnated by the City, If the contnbUl1on IS tax deductIble. WIthin two years from completIon of Sea Colony III Domlmon IS oblIged to expend $3,000,000 cash equity on the acqwsIClOn 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 Wlthm 120 days of conveyance of the Sea Colony III SIte to Dommlon ThIS park is planned to contam SIX tenrus courts, two paddle tenms courts, one basketball court, a play area and pedestnan paths DommIon 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 DOJDIDlOn The park IS to be substantially completed wlthm 12 months from execution of the pubhc works contract. 4. The CIty wIll execute a pubhc works contract and commence constructiOn of the beach improvements wlthm 120 days of conveyance of the Sea Colony III site to DommlOn and will complete such construction wIthm 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 mclude 57 58 59 60 61 62 63 64 65 66 67 Proof of September 4. J 964 . GALLEY 20- a A redesIgned and separated bIkepath and pedestnan promenade extendmg from Bay Street to the south city lmnt SA:\TA ~fONICA-8049-9 Bowne of SF, Ine. (415) 864-2300 . b A 3 5-acre Imear park extendmg from Crescent Bay Park to the south city bmlt 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 faculties, shade pavllhons, 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 wartmg vehIcles e Redesign and repavmg of the entire parkmg area from Crescent Bay Park to the south CIty hmIt and IDlProvement m pedestnan access to the beach f. Improvements ro vanous streets m the area to llI1prove traffic clrculalJon 5 The Agency IS reqUired to construct at least 55 units of housmg affordable to low and moderate IOcome persons withm the area bounded by PIca and Lmcoln Boulevards. the city boundanes and the Pacific Ocean Such houslOg IS to mclude a substanUal number of fanllly 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 acqmsltlon costs are esnmated at $2,200,000 at three or more scattered SItes Construction costs are estImated at approxunately 560,000 per umt, 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 mlX of rent levels at 25% of household mcome, pnvate sector financmg of $2,000,000 could be supported leavmg 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 1Il Its NOllce of Intent dated May 26, 1983, reqUires that the Agency put up letters of credit III the amount of $1.000.000 for parkmg lot Improvements and $500,000 for the on-stte park before a perlIl1t WIll be Issued and requIres DommlOn to Iillplement and complete the HARP before a certlficate of occupancy for Sea Colony III WIll be Issued Height hlIl1ts and vehIcular access restnctlOns are also imposed If DOIDlmon commences constructIon m January 1985 as expected, all umts of Sea Colony III should be completed by November 1986 and approximately $44,4{)O.OOO of additIonal 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 theIr respective developments by November 1986 Proceeds of the Senes 1984 Bonds depoSIted m the Redevelopment Fund (estnnated to be $4.049,750) Will be used by the Agency to pay portions of the above mentIoned pubhc Improvements . . . . 56 57 58 59 60 61 62 63 64 65 66 67 1 2 - Ploof of Augusl 3D, 1984 SA~TA ~IO:-J"ICA-8049-9 BO,^T1e of S F _ Ine, (41.5) 864-2300 GALLEY 21- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 ESTIMA TED TAX REVENUES AND BOND RETIREMENT Estimated Tax Revenues Monevs denved each vear from the levy and collectIOn of taxes on any tncrease In the assessed valuauon of land, l~provements, p;rsonal property -and pubhc uuhty property l~ Ihe Project over and above the 1959/60 base roll for Project 1(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 Interest and pnnclpal of the Senes 1984 Bonds and for mamtenance of a minunum Reserve Account balance equal to maxImum annual debt servIce on all outstandmg Bonds Excess money lIT the Debt SerVIce Fund may be used to purchase or call Senes 1984 Bonds pnor to malUnty (See "The Senes 1984 Bonds--The Debt Service Fund~Holdtng Account ") Under certam spec1fied condmons the Agency may Issue Panty Bonds (See "The Senes 1984 Bonds-Issuance of AddltlOnal Bonds ") The Assessor of Los Angeles County WIll assess all real property III the Project (except pubhc Utlltty property) at 100% of full cash value as defined m Arocle XIII A of the Cahfornia Constttutton (see "The Senes 1984 Bonds~Property Tax and Appropnatton Limttattons") Pubhc utthty property IS assessed by the State Board of EquahzatlOn 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 reSldentml 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 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1984/85 1984/85 Taxable Base Year Incremental Value Value 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 595,415572 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 Exemptions 972 (972) "'et Unsecured S 74,925 S 2,527.176 S (2,452,251 ) Total Secured and Unsecured 595,490,497 $13,145.576 $82,344,921 Tax Revenue at 5l 045375 per $IQO@ $ 860,813 CD Values shown for Fiscal Year 1984i85 are based on unequahzed taxable values reported by the Los Angeles County Auditor-Controller Reported values have been reduced by $3S 1.572 to exclude Identlfied uns(X:ured assessments mcorreeth mcluded m the lotal Project area value @ The tax rate shown for 1984i 85 IS an estimated rate based on the hlslofIeal declme m the tax override rate smee 1978179 Source Katz' HollIS, Coren & AssOCiates, Inc. August 21. 1984 . . 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 e: 56 57 58 59 60 61 62 63 64 65 66 67 1 2 Proof of Augusl 3D, 1984 SAXTA ~10NICA--8049-9 Bow-ne of S F < Ine, (415} 864-2300 GALLEY 22- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Any property tax levied by the County on real propeny becomes a hen on that property. A tax levIed on personal property does not become a lien agalOst the personal property, but may become a hen on certam real property owned by the owner of the personal property and located \vnhm Los Angeles County Every tax wh1ch becomes a hen on real property has pnonty over all other hens on the real property. arising pursuant to State law, regardless of the time of the creatlOn of other hens In CahfomIa, property which IS subJect to ad valorem taxes IS class1fied as "secured" or "unsecured" Secured and unsecured properues are entered on separate parts of the assessment roll mmntamed by the county assessor. The "secured roll" is that part of the assessment roll contammg State assessed property and property the taxes on which are a hen on real property suffiCIent, 10 the opmIOn of the assessor. to secure payment of the taxes. Other property IS placed on the "unsecured ron" The method of collectmg dehnquent taxes IS substantIally dIfferent for the two classIficatIOns of property The taxmg authonty has four ways of collectmg unsecured personal property taxes (1) filmg a CIVIl actIOn agaInst the taxpayer; (2) fihng a certIficate 10 the office of the county clerk specuY10g certam facts 10 order to obtain a judgment lien on certam property of the taxpayer, (3) filmg a certIficate of delmquency for record in the county recorder's office, 10 order to obtam a hen on certam 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 10 respect of property on the secured roll IS the sale of the property seennng 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 m respect of property 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 delInqueut 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 State 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 addltlona] penalty of 1.5% per moath begms to accrue In respect of such taxes begmnmg the first day of the third month followmg the delinquency date The valuatIon of property ]s determlOed as of Marcil 1 each year and mstalJments 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 pnor year's secured tax rate. It has been the Agency's expenence that the Tax Revenues (exclUSive of busmess Inventory replacement revenues) are receIved apprOXImately 45% by January 15 and 45% through May 30. and the remamder through August of the followmg fiscal year Among the larger taxpayers located 10 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 (Dommlon Property Company) NIelson VIlla Choa Property Lundsberg Propeny Gache Properties . CallforOla FIrst Bank POInt FermlO Productlons FIndlay 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: 1I1lty Resldenllal Apartments Resldenllal CondomIniums Semor Cltlzen Resldenl1al Resldenlial CondomIOIums Resldenlial CondomlOlUms Resldenual CondomInIUms ReSIdentIal CondommlUm ResIdenllal CondomlOlum Resldenllal CondoffilDlUffi @ ValuatIons shown are based on the State Board of EqualIzatIOn's and the Los Angeles County Assessor's unequalIzed 1984/85 tax rolls Source. Katz, HOUIS. Coren & AssOCIates, Ine 1 2 . _6 7 8 II 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . Proof of August 30, t 984 SA:;.tTA ~WNICA-8()49-9 Bowne of SF, Tnc, (415) 864-2300 GALLEY 23- Over the past SIX years. the Agency has receIved Tax Revenues m the followmg 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, Holhs, Coren & AssocJales, Inc 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 SCHEDULE 2- REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA OCEAN PARK REDEVELOPMIENT PROJECT PROJECTED TAX REVENUES (aDOs Omitted) Tolal Value Over Fiscal Real New Devel- Total Other Total Base of Tax Vear Property.::!) 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 ] 20.973 1,210 1989/90 119,399 7.878 127.277 17,061 144,338 13 I.l92 1.312 1990/91 129,822 0 129,822 17,061 146.883 133.737 1.337 1991/92 132,419 0 132,419 17,061 149.480 136.334 1.363 1992193 135.067 0 135,067 17.061 152.128 138,982 ] 390 1993/94 137,768 0 137.768 17.06] 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. 1986/87 or 1987/88 In 1988/89 and thereafter. an annual mflauonary mcrease equal to the maximum mflal10nary rate allowable under ArtJ.c1e XIlIA 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 Audllor-Controller, adJusled to reflect the ehmmatlon of unsecured assessments Incorrectly mcluded 10 total Project value Source Katz. HolliS, Coren & ASSOCiates, Inc 56 57 58 59 60 61 62 63 64 65 66 67 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 contam the date On which the bonds were delivered, the pnnclpal amount, term. purpose and mterest rate of the bonds and the outstandIng balance and amount due on the bonds Similar infor- matIon must be given for each loan, advance or mdebtedness that the agency has IDcurred or entered into to be payable from tax increment The Agency has covenanted to comply Wlth the annual filing requIrements of thIS Section. (See "The Senes 1984 Bonds-Other Covenants".) . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . i 2 Praaf af AUIIISl 3D, 1984 SA]'\TA ~IONICA-8049-9 BO\vne of S FIne. (415) 864-2300 GALLEY 24- Section 33675 also provides that payments of tax allocatIons from the county auditor to the agency may not e'(ceed t)1e amounts shown on the agency's statement of mdebtedness The Sectlon further pro- VIdes that the statement of mdebtedness IS prima facIe eVIdence of the mdebtedness of the agency. but that the county auditor may dIspute the amount of mdebtedness shown on the statement 1I1 certam cases and the disputed amount may be Withheld from allocatlon and payment to the agency PrevlSIon IS made for bme hmIts under whlch a dIspute can be made by the county audItor as well as proVISlOns for a deter- nunatlOn of the proper dlsposltlon of the matter by the Supenor Court 111 a declaratory relIef action The Issue 111 any such actIon shall mvolve only the amount of the Indebtedness and not the valIdity of any contract or debt Instrument, or any expendIture pursuant thereto Payments to a trustee under a bond resolutlOl1 or mdenture or payments to a pubhc agency 1U connectiOn With payments by such public agency pursuant to a bond Issue shall not be disputed II1 any actIon under the Secllon 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 \11 the open market or early redemptiOn of Senes 1984 Bonds IS assumed 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 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 nterestG:; 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 1989 1,210,000 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 1993 1,390,000 4,955,000 507,900 175.000 682,900 204 1994 1,417,000 4,780,000 490,000 190,000 680.000 208 1995 1,444,000<]) 4.590.000 470,500 210.000 680.500 212 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 3,605.000 369,500 310,000 679.500 213 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 1,444,000 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 56 57 58 59 60 61 62 63 64 65 66 67 CD From Schedule 2- o Beginmng of period @ AI an assumed rate of 10 25% @ Senal maturitIes and mandatory PrinCIpal Account redemptions @ Assumed to remam constant 199.5 and thereafter . 7 B 9 10 11 12 13 14 1S 16 17 18 19 20 21 22 23 24 2S 28 27 28 . 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 . 1 2 3 'roof 01 August 30, 1984 SA:">JTA ~lONICA-8049-9 Bowne of SF. Jnc. (415) 864-2300 GALLEY 2.5- THE CITY General The City of Santa MOnIca 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 shghtly greater than eight square miles and has an estJmated 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 dIrect connectIOn With downtown Los Angeles, approxImately 16 miles to the east About SIX mIles 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 MOllica on a north-south course The clImate IS generally mIld With an average mean temperature of aoout 62= (F) Extremes range from an average nummum 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 MOllica IS a center of electromc, engmeenng, research and allIed mdustnes Among ItS largest manufactunng 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 compan5on 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 58 59 60 61 52 63 64 65 66 67 1979 1980 1981 1982 1983 Revenues and Transfers Property Taxes $ 2,431.381 S 3.499 000 S 4.290.000 $ 5.383.939 S 6.518.796 Other Local Taxes 9.519.468 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 3.498 710 Fmes, Forfeitures and Penalt1es 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 2.206.552 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 Other Revenue 451.848 684.000 383,000 1.858.508 431,722 Transfers from Other Funds 3,299,928 900,000 7.041.338 640.160 Sulnotal 525,205.286 533.524.000 531.096.000 541.067,820 $35.585,834 Expenditures and Transfers. Pu blIc 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 - Fund Balances and Reserves . S 12.5 86, 844 $15.482.844 $14,819.844 518,165,001 519.310,414 - Source CJty of Sama MOllIca Fmance Department . . tj 56 57 58 59 60 61 62 63 64 65 66 67 1 2 Proal 01 Augusl 30, 1984 SAXTA !l.fONICA-8049-9 Bowne of S.F , Inc, (415) 864-2300 GALLEY 26---. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Assessed valuatIon m the City has shown a consIstent growth pattern dunng the past eIght years mcreasmg from 51.698.084.000 m 1975/76 (converted 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 dehnquenCle~ 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 Currenl Delin. Valuallon City Total Tax levy levy quent 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 16 499.191,000 451 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 50 3,950.329,00O::D 106 5182,774 251.227 48 4,381.504.000Q) 109 5.705,064 292,511 51 1974175 1975176 1976177 1977/78 1978179 1979/80 1980/81 1981/ 82 1982/83 1983/84 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 (!) Market Value (4 tImes pre.198Jl82 basIS of assessment) Government and Administration The City of Santa MOllica was Incorporated In 1886 and subsequently adopted Its CIty Charter m 1945 In 1947 a counCil-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 CounCIl 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 supervlSlng day-to-day opera lions 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 In an earher sectIOn of this OffiCial Statement Labor Relations The CIty has adopted a procedure by which Us 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 UUlons. mcludmg 300 by the Teamsters Umon, 290 by the MUUlclpal Employees ASSOCiatIOn, 164 by the TransportatIon Dillon, 144 by the Santa MOl]Jca Pollee Officers ASSOCIation and 92 by the Santa MOnIca Flrefighters AssoclatlOn There are currently multi-year contracts m efI~t through June 1985 and 1986. The CIty has not expenenced mtenuption m CIty servIces due to labor dIsputes_ . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . 1 2 Proof of AqgUSI 30. 1984 SA::\T >\. ~10NICA-8049-9 Bowne of SF. Inc. ! 415) 864-2300 GALLEY 27- Building Activicy Durmg 1979/80. Santa MOnIca Issued oUlldmg perlTIlts wIth a record total valuatIon of SI59.158.755 In contrast wIth Santa MOllica's hlstoncal de'ie1opment actlvlty. recent years have brought an Increased level of commercIal and mdustnal bUllding actIVIty Santa MOnIca's Ideal clImate has attracted a sub- stantial amount of new office development as older small commercial bUlldmgs are replaced with modem office bU1ldmgs Table 3 below IS a summary of total bmldmg penmts Issued by the CIty as well as the revenue col- lected by the CIty for processmg apphcatlons The slowdown m Santa MODIca's bmldmg acn~'lty m 1982 and 1983 reflects the economic recessIOn whIch affected the construction mdustry nationWIde Recovery began ill 1983 and contmues m 1984 Valuanon of bmldmg permIts lssued m the first SIX months of 1984 totalled S42.114,000 Decreases m act1V1ty may also have resulted from uncertamty regardmg develop- ment standards as a revIew and reVISIOn of the Cay's long range land use plan was undertaken Adoptlon of the proposed Land Lse Plan by the CIty CounCIl IS antICIpated In Fall 1984 TABU: 3 SANTA MONICA BUilDING ACTIVITY 1979/80 1981/82 1983/84 1982/83 1980/81 Total Permits Licenses. Approvals Issued ValuatlOn of BUlldmg Permits Issued Commercial ResIdent1al 8.532 6,.1.44 7.250 9,869 7,786 5112.970 022 565.008.536 $ 98,816.508 515810.628 $45,280.161 46.188.733 34.0]2.753 17.080.376 9.575.323 ]4.801.900 $159.158,755 599.021.289 $115,896.884 525.385.951 560.082,061 S 948.461 S 788.733 S 583,331 S 323.545 S 431.775 31 32 aa 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Total Construction Perron 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 Clty The CIty has participated m PERS smce July 1. 1944 Contnbutlons to PERS are made by both employees and the City The Oty's cost vanes based on whether the employee IS claSSIfied In the "Safety" (polIce. fire, etc) or "MIscellaneous" (all other) category As of July I, 1983. Santa Momca had 244 active, 53 maclIve and 236 retired In the Safety category and \V1\1 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 mactIve and 432 renred employees In the Miscellaneous group for which the City wIll contnbute 1250% of the estimated 1983/84 payroll. or S2.531,300 These contnbuuons by the City mcIude amounts necessary to fund PERS's costs for both current benefits and to fully amortIze vanous unfunded habll1ues totalhng S36.943,300 not later than the year 2001 Safety membershIps account for $17,540.100 of the tolal unfunded habIhty 56 57 58 59 60 61 62 63 64 65 66 67 . . - 56 57 56 59 60 61 62 63 64 65 66 67 1 2 Proof of August 30, 1984 SA:\"TA ~1ONICA-8049-9 Bowne of SF. Inc. (415) 864-2300 GALLEY 28 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Self-Supporting Operations Santa Momca operates an mrport. bus lIne, 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 operatIons IS shown III 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 mrcraft tIe-down spaces. and also recelVes commISSIons on fuel sold at the AIrport. operations which help make the arrport a profit-makmg venture In 1984. the City'S 136 buses earned almost 13 8 mIllion revenue passengers. while travehng 3 9 mdhon mIles RIdershIp Increases every year due to excellent coverage (a bus route operates wlthm a quarter-mIle of almost every reSIdent) and low cost (regular fares are 50~ ",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 enterpnse cornpetltIve WIth comparable pnvate facI11tJes It IS located m the southeastern portIon of the CIty The Water Department of Santa MOnIca IS operated as a self-supportmg enterprIse About 45 % of the City's water IS supplIed by its O'k"II wells. stored mover 16 acres of well field~ .md reservOIr grounds on City-owned property InSIde and outside the city hmlts The remammg 55% of the water IS purchased from The Metropol1tan Water Dlstnct of Southern Cahforma The CIty's modern. automated system debvers over 15 mlllion gallons per day to 15,500 water accounts. at a cost of less than 22e per ton The City's own water chemist supervIses oyer 1, 70D separate water qualIty and safety tests per monrh in State-hcensed labora- tones. to ensure that the highest standards are met before dehvenng the water to the customer's tap. The Santa Momca Pier IS a Los Angeles County hlstoncal landmark budt at the turn of the century. It currently contams vanous restaurants. amusement and other retatl establishments Its restoration and reconstructIon IS the object of a mulu-mIlhon dollar rejuvenation project, the first phase of WhICh IS underway. The PIer's famous 1900-villtage carousel has been completely restored Also mcluded III 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 additional retali space Construction IS scheduled to commence m Wmter 1985 Feaslblhty analyses are under review as 10 the actual reconstructIon of the Pier Further testmg w1.Il be done over the next several months Once the prOject IS completed. It IS antIcipated that addmonallmprovements w1ll be made to the PIer Sewage treatment IS prOVIded for the Clty by the Los Angeles County SamtatlOn DlSInct's Hypenon Plant, located m El Segundo One sewer hft plant eXIsts Wlthm the CIty boundanes Sewage treatment IS self-supportmg from sewer trearment fees based on the amount of warer consumed by the customer 31 32 33 34 3S 38 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . 2 SAKTA :\1O:\'ICA-8049-9 Bowne of SF. Inc. (41.5) 864-2300 Proot 01 AagllSl 30, 1984 GALLEY 29 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 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 -- "et Income (Loss) S 786 $ 1314.0001 $ 831.000 " 142001 182 920 CapItal Oullar S 57.389 $ S 62.000 S MUnICIpal Bus Lme Gross Revenue 5,992,089 7,092.000 8,498.000 9.141.612 :0.036.832 Operann!! and Mamtenance 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 "iet Income (Loss) ( 467.305) (821.000) (838.000 ) (982.455 ) ( 1.225.6891 CapItal Oullay 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 (47.6951 Capital Outlay $ 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 1 388,000 415,266 412,149 Transfers (In) Out (1,659.000 ) (550001 :-iet Income (Loss) $ 1294.744) S 764.000 $(1.295.000) 53.392.752 2.890.259 CapItal Outlay $ 864.151 S 689,502 $ 1.445.656 S 1.033 559 $ 892.051 Santa :\lollIca PIer Gross Revenue 567,856 754.000 809.000 766,057 '775.321 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) Jo.;'et InCOme (Loss) $ 97.355 $ 166.000 S /81.0001 S 247 926 S 201.450 CapItal Outlay S S 251.803 188.205 S 332,819 S 498.255 Sewers Gross Revenue ],309.000 2.245.000 2.656,425 2.222.011 Operatmg and Mallltellance Expense 746.000 876.000 1.073.530 7493il DepreCIatIon ]02,279 114419 Transfers (In) Out 50.000 55.000 Ne[ Income 5 $ S 513,000 S 1.369.000 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 combmed for 1978/79 56 57 58 59 60 61 62 63 64 65 66 67 . 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . 'I 2 P,DDf Qf August 30. 1984 SA~TA ....W:-lICA-0049-9 Bo\'me of SF. Inc. (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 mdebtedness Duect and overlappmg bonded mdebtedness IS shown III the followmg tabulatIOn compiled by Cahforma 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 BUlldmg AuthoTlnes Los Angeles County Flood Control Dlstncl )"fetropohtan Water Dlstnct Los Angeles Community College DIstnct Los Angeles Cnlfied School DlstTlCL Santa MOnica l:mfied School DIstnct City of Santa MOnica Parkmg Authonty and Redevelopment Agency Total DIrect and Overlappmg Bonded Debt 2 022 % 2022 2085 1 164 0010 0003 72 597 100 S 50.550 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% 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Share of Aurhonz;ed and L'nsold Bonds Metropohtan Water DIstrIct Los Angeles Counry Flood Control Dmncr Stare School BuddIng Aid Repayable as of 10/9/84 $4.248.600 S 384.683 S Q) Excludes Sene. 1984 Bonds to be sold 0$4.219,975,970 after deductIon of 5161.527.785 tax Increment allocatiOn 56 57 58 59 60 61 62 63 64 65 66 67 1 2 Proof of Augusl 3D, 1984 . GALLEY 31 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 27 . . SA'\TA ~fONICA-8049-9 Bo,vne of SF. rnc. (415) S64-2.300 Economic Characteristics of Populatlon FIgures concernmg !Dcome gmuplllg per household are shown m Table 6 The O!y of Santa yloTIIca has a hIgher percentage of It5 populatIOn m the high Income group tl1an the 3ther areas It _s lower than the other areas III the hIgher Imddle Illcorne levels and meets or exceeds the other areas m low and moderate mcome levels TABLE 6 INCOME GROUPING FOR 1983 Income Per Santa Los Angeles State 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 150 144 142 101 Effective buymg !Dcome 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 MonICa's per household mcome was less than Los Angeles County and the State of CalIfornia but greater than the nation as a whole (see Table 7 below) It should be noted that per capita lUcorne ill 1983 for Santa MOnica ($15,048) was hIgher than III Los Angeles County (SlO,979), the State ($11.222), and the nation ($9,890) 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 SO S1 S2 TABLE 7 EFFECTIVE BUYING INCOME (OOOomllled) SarHa Monica Los Angeles County State of California Umted Slales Year 1979 1980 1981 1982 1983 Median Household Effective Buymg Income 1983 (000 meluded) $ 921,440 988,098 1,094,342 1,239,248 1.351.3 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 79.155.146 84.749.032 $25.280 526.040 $23.420 $24.518 5a 57 58 59 60 61 62 63 64 65 66 61 1 2 Proof of August 30. 1984 . GALLEY 32 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 26 26 . . SA.\TA ~fONICA-S049-9 Bownl:' of SF. Ine, (415) 864-2300 In terms of retaIl sales between 1979 and 1983. Santa .\1onIca Increased by 57o/c, well above the 23 % to 30% Increases shown In Table 8 below for La> Angeles County and the State of Cahfomla Santa MOnIca accounts for 1 2% of Los Angeles County's total populatIon whIle ItS retml saks volume represents over 2 3 % of the County total One logical conclusIOn Is that 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: State 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. In 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 merease III volume of retaIl sales The larger lllcreases were noted In the General Merchamhse and the Apparel catcgones, 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 drmkmg 85.836 104.383 115.347 125.200 130.675 Auto dealers and supphes 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 56 57 58 59 60 61 62 63 64 66 66 67 1 2 Proof of Augusl 30. 1 S84 . GALLEY 33 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2Q 21 22 23 24 25 26 27 - . 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 opportull1tIes 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 metropohtan area over a five-year penod 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 sel"V1ces 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 CtlhtIes 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 J19.800 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 3559 500 849.700 80B.lOO 882.700 462.000 235.900 I 94.:WO 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 State of Callforma Emplo\'ment Development Department 56 57 58 59 60 61 62 63 64 85 66 67 1 2 Proof of August 30. 1984 . GALLEY 34 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . . SA~TA ~IO:\ICA-8049-9 Bowne of SF, Ine. (415) 864-2300 Utilities and Community Facilities Southern Cahforma Gas Company IS the supplIer of natural gas to the Clt} and eleetncn}' IS offered through the fae1l1tles of Southern CahfoIDla Edison Company General Telephone Company proVIdes tele- phone service Santa MODIca has two major hospitals-Santa Momca HospItal MedIcal Center and St Johns Hospital Medical Center-plus numemus medIcal cllllICS and convalesc'='nt hosp'tals The City has one mam library and three branches. over 50 churches, two newspapers two radlO sta- tLons. a TV cable system. 22 savmgs and loan offices. 17 bank branches. ten parks. two playgrounds and a mUnICipal pier EducatIOnal facilIties m the CIty mclude mne elementary schools. two Jumor high schools. one high school. a community college and a contmuallon school There are many other hIgher education Institu- tIOns located wlthm easy commutmg dIstance, such as the Umversay of Cahforma at Los Angeles (UCLA), the CmversIty of Southern CalIfornia (USC), CalIforma State Umverslty at Long Beach. CalIfornIa Scate Umversity at Dommguez Hills and Loyola-Marymount Unl\'ersuy T ransportatlon Santa MOhlca is located adjacent to two pnncipal Cahfom13 coastal highway routes and is bisected by the Santa MOnica Freeway. thus hnked 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 extenslVe network of bus routes mcludes several which serve the. Santa Momca area and proVides mterface wnh other passenger earners. mc1udmg Santa ~1omca's bus system The Los Angeles InternatIOnal Airport. only SIX mdes 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 atr-frelght earners Air traffic volume for calendar year 1983 lfic!uded 33,095.648 passengers and 730.058 tons of aIT freight and mall Deep water shlppmg facll111es at Los Angeles and Long Beach Harbors are wlthm a short distance from Santa Momca Los Angeles County IS studymg countYWide POSSlbllItles for routes for a Metrorall system The City has been actlvely Involved In diSCUSSIOns WIth the County. and Santa ;vIomca IS bemg conSidered for future extenSIOns of the MetroraIl 56 57 58 59 60 61 62 63 64 65 66 67 . . . 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 ,>,cCDuntaOlS 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 ~ . . . -< "'- =Z "'':1 ...0:: e- ..J "'... '-'U Z '" "'... <~ '-Z ze "'''' '" ..... e.... -'z "'.. >'" '" "'... :.Je '" '" "'.... =- ....u .... " " .c '" " c ~ .. '" .." " ~ .c e '0 <.J '"' '" '" e "" = ~ 1 -g-:~';j ::a...... -I ~ ~ i 51 " '" ~ ~ ~ ~l " , " ..: ::!'''''O ~ 0 ... ... ~ ... <i w e wI t-;:5"~~ "... - o c: -II 0 Q i-' = > W ... Qj -:I g,. a.. y.~ '; o,i/ <; " - ";1- ~ :;1 QJ~u"'C~ > w ~ c....... "I" U 0- "C "":I C ~""I U:J!- I C1Cr:&.- ~ ... ~, ... .. ., ... c: .. .. 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" " ... .... . -: I'D - ~ :::: ~ loo ~ ....c- .... " ., t.I ::: Ql ""'" V "C :..w C .:: ~ ~ = ~... 1 " U'....-: 1i 1.1 <.; -t::' :> -:: ::;; 100 ~ > ~ .. ? -:c ~ l: ..::: ..II ... ::J = 'E:C:= t&: .... .I> .. ;: ~ Q .... ~ .. .... " - .... " '"C ., " ... ~ .. .c 1 .. ... .:: 511 OJ 51l -I ....1 _I ~I -1 ,"" I ~J ~J -/ .. ... c: " E '" ... " ... .. - .. u " .. c: c ., ~ " " ;; " '" " c ... .0"; .. " _.r; - ., " ... -;; g ~ -.. 2 ~ " ::: ;;- " " " .. " " '" ~- - . . 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 II, 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, ExpendiCures and Changes in Fund Balances (Deficits) Year ended June 30, 1983 Oo~ntown Redevelooment Project S 843,080 450,41!> \,L89,705 110,591 2,593,792 O~ean Tax Allocation Fund 757.800 100.400 858,200 Park Redevelopmenc Prolect Federal Total Allocation Ocean Park Fund Redevelopwent (R-37/44) froject 757,800 100,400 29,241 29,241 .. H,,41 887,501 Toca1 (Memorandum. only) l,oUO,8110 550,870 1,189,705 139,832 3,481,293 Les. project expendiCures Program salarIes and administra- tive r.09tS. including technical and professional personnel 77 ,680 190,567 2,814 193,381 VI,Ool . 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...nHy orga.niz;atlolJ 1,734 1,734 Reimbursed to Cicy for bond paymencs 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 (Jl9.742) 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 $(2,890,068) i ,359,718 (4,193,372) (2,8)),594) (5,724,262) . See accompanying notes to combined financial statements.