M-9/12/1989 (2)
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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
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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;
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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:
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By:
Agency Counsel
Adopted and approved this 12th day of September 1989.
D=. Ch]r
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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:
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dtofbene
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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
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AUGUST 14, 1989
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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
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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.
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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.
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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.
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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)
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J EXHIBIT 1 -- SITE PLAt'l"
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