Loading...
M-9/12/1989 (2) . . . RESOLUTION NUMBER 429 (RAS) A RESOLUTION OF THE SANTA MONICA REDEVELOPMENT AGENCY DETERMINING CERTAIN PUBLIC IMPROVEMENTS TO BE OF BENEFIT TO THE DOWNTOWN REDEVELOPMENT PROJECT AREA AND DETERMINING THAT NO OTHER REASONABLE MEANS OF FINANCING SAID PUBLIC IMPROVEMENTS IS AVAILABLE TO THE CITY OF SANTA MONICA AND AUTHORIZING THE COST OF CONSTRUCTION OF SUCH PUBLIC IMPROVEMENTS WHEREAS, the Redevelopment Agency desires to use Agency funds for payment of the cost of certain public improvements which will be of benefit to the Downtown Redevelopment Project Area; and WHEREAS, California Health and Safety Code Section 33445 requires the Agency to determine that said pUblic improvements are of benefit to the Downtown Redevelopment Project Area or the immediate neighborhood in which the Project Area is located prior to making said payments, and that no other reasonable means of financing said public improvements are available to the community; and WHEREAS, in November, 1975, the Redevelopment Agency of the ci ty of Santa Monica filed an application for approval of a coastal permit for the construction of the Downtown Redevelopment Project, and WHEREAS, on June 16, 1976, the California Coastal Zone Conservation Commission granted with conditions the application filed by the Redevelopment Agency for the construction of the Downtown Redevelopment project, and - 1 - . . . WHEREAS, as conditions for approval of the coastal permit the Coastal Commission required that a westbound off-ramp from the Santa Monica Freeway to Fourth and Fifth streets be completed prior to occupancy of the project and that the Redevelopment Agency agree to this condition of approval; and WHEREAS, on June 14, 1976, the Redevelopment Agency agreed to the conditions for approval of the coastal Permit, and WHEREAS, on May 13, 1977, the Redevelopment Agency executed an agreement with Santa Monica Place Associates regarding compliance with Coastal Development Permit A-69-76 whereby the Redevelopment Agency agreed to be responsible for and to cause the completion of the Fifth Street off-ramp, and WHEREAS, on June 15, 1978, the Redevelopment Agency incorporated the May 13, 1977 compliance agreement into an implementation agreement with Santa Monica Place Associates that clarified the obligations and responsibilities of the parties as contained in the original Disposition and Development Agreement between the two parties, and WHEREAS, the issue of benefit to the Downtown Project Area, and the alternative means of financing the improvements have been considered in the Report entitled "Summary Report pertaining to the Proposed Payment by the Santa Monica Redevelopment Agency for the Cost of Certain Public Improvements for the Benefit of the Downtown Redevelopment proj ect.. , attached hereto as Attachment "A", and incorporated herein by reference; - 2 - . . . NOW, THEREFORE, THE SANTA MONICA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. It is hereby determined for the reasons set forth in Part IlIA of Attachment flAil, that the public improvements as described in Attachment "A" hereto, are of benefit to the Downtown Redevelopment Project Area. SECTION 2. The Agency hereby determines that, for the reasons set forth in Part IIlB of Attachment II A", no other reasonable means of financing said public improvements is available to the community. SECTION 3. The Agency hereby authorizes and approves payment of $233,771 by it for the cost of construction of the public improvements set forth in Attachment "AfI hereto. SECTION 4. The Agency Secretary shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: rw--~ ~ ~ By: Agency Counsel Adopted and approved this 12th day of September 1989. D=. Ch]r - 3 - . . . I hereby certify that the foregoing Resolution No. 429 (RAS) was duly adopted by the Redevelopment Agency of the City of Santa Monica at a meeting thereof held on september 12, 1989 by the following Agency vote: Ayes: Agency Members: Abdo, Genser, Jennlngs, Reed, Zane Noes: Agency Members: None Abstain: Agency Members: None Absent: Agency Members: Flnkel, Katz ATTEST: ,4 /J ,-.: ~- ~ I.V" Secreta,' dtofbene - 4 - . ATTACHMENT A DOWNTOWN REDEVELOPMENT PROJECT SANTA MONICA, CALIFORNIA SUMMARY REPORT PERTAINING TO THE PROPOSED PAYMENT BY THE SANTA MONICA REDEVELOPMENT AGENCY FOR THE COST OF CERTAIN PUBLIC IMPROVEMENTS FOR THE BENEFIT OF THE DOWNTOWN REDEVELOPMENT PROJECT SANTA MONICA REDEVELOPMENT AGENCY . AUGUST 14, 1989 . - 1 - . . . TABLE OF CONTENTS I. Introduction Estimated Tax Increment Funds Proposed to be Used to Pay Costs of Construction of the Fifth-Street Off-Ramp III. Facts Supporting Findings II. A. The Fifth Street Off-Ramp is of Benefit to the Downtown Redevelopment Project Area B. Financing Alternatives: No other Reason- able Means of Financing the Construction of the Fifth Street Off-Ramp are Available to the Community Page 3 3 3 4 The Redevelopment Purpose for which Tax Increment 4 Funds are Being Used to Pay for the Construction of the Fifth street Off-Ramp IV. Exhibit 1 - Site Map Exhibit 2 - Construction Costs - 2 - . I. INTRODUCTION The Santa Monica Redevelopment Agency ("Agency" ) has prepared this summary report pursuant to Section 33445 of the California communi ty Redevelopment Law (Health and Safety Code Sections 33000 et seq. ). This summary report sets forth certain details of the Fifth Street Off-Ramp which pertains to the development of certain circulation improvements for the benefit of the community as a whole, and the Downtown Redevelopment Project (hereinafter "project"), in particular. Attached to this sunonary report as Exhibit 1 is a Site Plan showing the location of the Fifth street Off-Ramp. II. ESTIMATED TAX INCREMENT FUNDS TO BE USED FOR PAYMENT OF CONSTRUCTION OF THE PUBLIC IMPROVEMENT. Attached hereto as Exhibit 2, are the final construction costs (potential use of tax increment funds) for the Fifth street Off-Ramp. The Agency will pay for the final actual as-built costs incurred by the city for the Off-Ramp. . III. FINDINGS A. The Construction of this Fifth street Off-Ramp is of Benefit to the Downtown Redevelopment Project Area. The Fifth street Off-Ramp referred to in section II above and the attachments hereto will benefit the Downtown Redevelopment Project Area in that it: Attracts private development by improving public access to the Project Area. Fulfills Agency obligations to improve traffic circulation and safety for the Downtown Redevelopment Project Area. . To the extent that such public improvements are outside the project area, the improvement provides a healthy and safe environment which attracts users in a positive way, and the presence of such users will provide a better economic climate and more jobs for residents of the Project Area. Fulfills the condition of approval of the Coastal Permit for the Downtown Redevelopment Project that the ramp be completed prior to occupancy of the project. - 3 - . . . B. No other Reasonable Means of Financing the Construction of the Fifth STreet Off-Ramp is Available to the Community In California, municipal or tax-exempt financing has traditionally taken one of two basic forms: general obligation bonds or revenue bonds. General obligation bonds pledge ad valorem property taxes without limit as to rate or amount; hence, they were highly regarded by investors and commanded the lowest borrowing rate because of their minimal credit risk. However, Article XIIIA of the California constitution, adopted in 1978, prohibits issuance of such general obligation bonds. Revenue bonds are payable from a specific revenue source other than property taxes. These bonds have been used extensively for financing water, sewer, or other utility systems; toll bridges;and airports, where revenues of the enterprises are reasonably well assured. However, the proposed improvements will not generate any revenue, so such financing is not feasible. The City'S general revenues are another possible source of revenue for the proposed improvements. However, following the passage of Proposition 13, severe constraints were places on the Ci ty I S revenues because of the curtailment or withholding from cities by the state of California of revenues traditionally subvented to local government. The fact of historically diminished revenue, uncertainty of future revenues, and the need to provide a suitable level of service, dictates that if the City advances any of its general operating reserve for the proposed improvements, a means of recovering the cost be available from the Agency from tax increment revenues. Tax increment revenues are the only viable method of financing the proposed improvements. Tax increment revenues are allocated annually to the Agency to the extent of Agency indebtedness, and are paid from the portion of taxes in excess of the Project. IV. THE REDEVELOPMENT PURPOSE FOR WHICH TAX INCREMENT FUNDS ARE BEING USED TO PAY FOR THE PUBLIC IMPROVEMENTS. The Redevelopment Plan for the Downtown Redevelopment proj ect contemplated that a number of public and private improvements will be provided to turn the Project Area from stagnant and underutilized land to productive use and an asset to the City. Among the public improvements and utilities to be provided in connection with the redevelopment of the site as provided for in the Redevelopment Plan is the provision of site preparation necessities. Since the Redevelopment Plan for the project was adopted in 1976, the Agency has redeveloped the vicinity of the site by planning and developing necessary public improvements and utilities to improve the condition of inadequate facilities which were impeding on the development of the area. The agency now proposes to continue that redevelopment effort by financing the City's share of the cost to construct the Fifth Street Off-Ramp. - 4 - . . . The Off-Ramp encourages better use of the shopping center by Project Area residents and persons residing, visiting or employed in the immediate neighborhood in which the proj ect is located. The Agency seeks to recognize the purposes of redevelopment by making the area more accessible to visitors and residents, thus expanding employment opportunities for jobless and underemployed persons. It is anticipated that the Off-Ramp has attracted residents and visitors to the Project Area, which enhances the development of adjacent portions of the Project Area and therefore provides direct benefit to the Downtown Redevelopment Project. (dtbenrpt) - 5 - - , t J EXHIBIT 1 -- SITE PLAt'l" . z . .