SR-414-003 (3)
Attachment B
REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
FIVE-YEAR IMPLEMENTATION PLAN
FY 1999/00 THROUGH 2003/04
FOR THE
OCEAN PARK 1A REDEVELOPMENT PROJECT
OCEAN PARK 1B REDEVELOPMENT PROJECT
DOWNTOWN REDEVELOPMENT PROJECT
EARTHQUAKE RECOVERY REDEVELOPMENT PROJECT
November 11, 1999
**
I. INTRODUCTION
This document is the Five-Year Implementation Plan for the Redevelopment Agency of the City
of Santa Monica for the period fiscal year 1999-00 through fiscal year 2003-04, presenting the
goals and objectives of the four redevelopment project areas in the city, pursuant to the
requirements of Section 33490 of the California Community Redevelopment Law, Health and
Code Sections 33000 et seq. (?Law?). The four project areas are as follows: (1) Ocean Park 1A
Redevelopment Project Area (?Ocean Park 1A?), (2) Ocean Park 1B Redevelopment Project
Area (?Ocean Park 1B?), (3) Downtown Redevelopment Project Area (?Downtown?) and (4)
Earthquake Recovery Redevelopment Project Area (?ERRPA?).
Legal Requirements for Implementation Plans
The Law requires that the Agency adopt an implementation plan for each redevelopment project
area that describes projects, programs and expenditure proposals for a five-year period.
Furthermore, the Law requires that the implementation plan be updated every five years. The
Agency adopted a consolidated, Five-Year Redevelopment Implementation Plan for the Ocean
Park 1A Redevelopment Project Area, Ocean Park IB Redevelopment Project Area and
Downtown Redevelopment Project Area in November 1994. The implementation plan for
ERRPA was approved when this redevelopment project was adopted in June 1994.
The Law also requires that the Agency, at least once within the five-year term of the plan,
conduct a public hearing and hear testimony of all interested parties for the purpose of a)
reviewing the redevelopment plan and the corresponding implementation plan for each
redevelopment project area and b) evaluating the progress of the redevelopment project. The
hearing is required to take place no earlier than two years and no later than three years after the
adoption of the implementation plan.
Contents of the Implementation Plan
Section 33490 requires that the Implementation Plan include the following information:
?specific goals and objectives of the Agency for the project area,
?the specific programs, including potential projects, and estimated expenditures proposed to
be made during the next five years, and
?an explanation of how the goals and objectives, programs and expenditures will eliminate
blight within the project area and will improve and increase the supply of housing affordable
to very low, low and moderate income households.
The implementation plan must also address the Agency?s housing responsibilities and
requirements. These are addressed in the Redevelopment Agency?s Affordable Housing
Compliance Plan, which is found at the end of this Implementation Plan. In particular, the
Compliance Plan addresses the following:
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?The revenue available in the Agency?s Low and Moderate Income Housing Fund and
estimates of the funds that will be deposited into the Fund during each of the next five years.
?A housing program with estimates of the number of new, rehabilitated, or price-restricted
units to be assisted during each of the five years and estimates of Low and Moderate Income
Housing Fund expenditures during each of the coming five years.
?Estimates of the number of new, substantially rehabilitated or price-restricted units to be
developed or purchased within one or more project areas, both over the life of the
redevelopment plans and during the next 10 years, by the Agency or other entities.
?Estimates of the number of units of very low, low and moderate income housing required to
be developed within one or more project areas in order to meet the requirements of Section
33413 (b)(2) (the Agency?s inclusionary housing obligation for units developed by public or
private entities other than the Agency) both over the life of the redevelopment plans and
during the next 10 years.
?The number of units for very low, low and moderate income households which have been
developed within one or more project areas which meet the requirements of Section
33413(b)(2).
?Estimates of the number of Agency-developed residential units which will be developed
during the next five years, if any, which will be governed by Section 334413(b)(1) (the
inclusionary housing obligation for units developed by the Agency).
?Estimates of the number of Agency-developed units for very low, low and moderate income
households which will be developed by the Agency during the next five years to meet the
requirements of Section 33413(b)(1).
?If the Implementation Plan contains a project that will result in the destruction or removal of
dwelling units that will have to be replaced pursuant to Section 33413(a) (Replacement
Housing obligation), the proposed locations suitable for those replacement dwellings must be
identified.
Projects areas adopted prior to January 1, 1976 (Ocean Park 1A and Ocean Park 1B) are not
subject to the Inclusionary Housing Requirement of Section 33413 (b).
The adoption of an implementation plan does not constitute an approval of any specific
program, project or expenditure; the Implementation Plan is a planning tool that outlines
the Agency?s projected actions and policies. The Agency will still adopt budgets and work
programs detailing expected expenditures for each year during the term of the
Implementation Plan. This Implementation Plan presents the projected activities for the
four redevelopment project areas during the next five years, beginning with fiscal year
1999-2000.
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Blighting Conditions
Projects identified in this Implementation Plan have been proposed to eliminate blighting
conditions, or, in the case of the ERRPA, alleviate the impacts of the 1994 Northridge
Earthquake. Blighting conditions are specific physical or economic factors defined in Sections
33030 and 33031 of the Law, and include:
?
Unsafe/Dilapidated/Deteriorated Buildings. Buildings in which it is unsafe or unhealthy for
persons to live or work. These conditions can be caused by serious building code violations,
dilapidation and deterioration, defective design or physical construction, faulty or inadequate
utilities, or other similar factors.
?
Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings. Factors
that prevent or substantially hinder the economically viable use or capacity of buildings or
lots. This condition can be caused by a substandard design, inadequate size given present
standards and market conditions, lack of parking, or other similar factors.
?
Incompatible Uses. Adjacent or nearby uses that are incompatible with each other and which
prevent the economic development of those parcels or other portions of the project area.
?
Lots of Irregular Shape, Inadequate Size, and Under Multiple Ownership. The existence of
subdivided lots of irregular form and shape and inadequate size for proper usefulness and
development that are in multiple ownership.
?
Inadequate Public Infrastructure/Facilities. The existence of inadequate public
improvements, parking facilities, open spaces, or utilities in addition to the conditions
described above.
?
Depreciated/Stagnant Property Values; Impaired Investments. Depreciated or stagnant
property values or impaired investments, including, but not necessarily limited to, those
properties containing hazardous wastes that require the use of agency authority as specified
in Article 12.5 (commencing with Section 33459) of the Law.
?
High Business Turnovers and Vacancies/Low Lease Rates/Abandoned Buildings/Vacant
Lots. Abnormally high business vacancies, abnormally low lease rates, high turnover rates,
abandoned buildings, or excessive vacant lots within an area developed for urban use and
served by utilities.
?
Lack of Commercial Facilities. A lack of necessary commercial facilities that are normally
found in neighborhoods, including grocery stores, drug stores, banks, and other lending
institutions.
?
Residential Overcrowding/Excess Bars, Liquor Stores, Adult Businesses. Residential
overcrowding or an excess of bars, liquor stores, or other businesses which cater exclusively
to adults and has led to problems of public safety and welfare.
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?
High Crime Rates. A high crime rate that constitutes a serious threat to the public safety and
welfare.
Exemptions from Blight Findings
The ERRPA was established in June 1994 to address the effects of the January 17, 1994
Northridge Earthquake. The Community Redevelopment Financial Assistance and Disaster Law
(Health and Safety Code Section 34000 et seq., ?Disaster Project Law?) at that time authorized
redevelopment agencies to establish redevelopment projects in areas devastated by a disaster
without the requirement that blight be demonstrated. As such, the proposed ERRPA projects in
this (and the previous) Implementation Plan are intended to alleviate the immediate and
sustained physical and economic effects of the disaster rather than specific blighting conditions.
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II. BACKGROUND
California Community Redevelopment Law was enacted in 1948 to provide the means for cities
and counties to address physical and economic blight. The Law provides that a redevelopment
agency may establish designated areas within the community wherein the agency may assist
private enterprise with property rehabilitation and redevelopment. The Law also allows
redevelopment agencies to pay for public improvements, specifically the value of land for and
the cost of installation and construction of improvements, if findings are made that
improvements are of benefit to the project area, no other reasonable means of financing the
improvement are available, the improvement will assist in the elimination of one or more
blighting conditions inside the project area or provide affordable housing, and the improvement
is consistent with the implementation plan. In addition, the Law requires redevelopment
agencies to increase and improve the community?s supply of affordable housing to very low,
low, and moderate income households.
Implementation efforts are funded through the use of tax increment financing. When a
redevelopment project area is established, a base value of all properties within the project area is
established. When property in the project area is sold or resold, property tax revenue generated
from the incremental valuation increases over the base value is distributed to the redevelopment
agency to finance redevelopment project costs.
The Agency
On August 13, 1957, the City Council of the City of Santa Monica established the
Redevelopment Agency of the City of Santa Monica, pursuant to Redevelopment Law. Until
May 1972, the Mayor, with approval of the City Council, appointed the five members of the
Agency. In May 1972, the City Council declared itself to be the Agency and assumed all the
rights, powers, duties and privileges vested in a redevelopment agency. Until a few years ago,
the Agency had no permanent employees but instead relied upon City staff and outside
consultants for planning, engineering, fiscal, legal, housing development, maintenance and
property management services. As of May 1999, the Agency had two permanent employees to
administer the redevelopment project area programs and implementation plans.
There are four redevelopment projects within the city: (1) Ocean Park 1A, (2) Ocean Park 1B,
(3) Downtown and (4) Earthquake Recovery Redevelopment Project Area (ERRPA).
Redevelopment and rehabilitation efforts of the first three project areas have largely been
completed. (A fifth redevelopment project area, Pacific Ocean Park, was adopted in July 1971.
This redevelopment project is defunct, as no projects were ever established for the area nor has
the area generated tax increment revenue.) A summary of the four redevelopment projects, their
adoption dates and time limits are shown in Table 1. The fourth project, the ERRPA, was
adopted in June 1994 in response to the severe damage in a large part of the city resulting from
the Northridge Earthquake of January 1994. This redevelopment project area was adopted
pursuant to Community Redevelopment Disaster Project Law, Health and Code Sections 34000
et seq. (the ?Disaster Project Law?), parts of which have since been amended, repealed or
changed to place greater limitations on the use of tax increment for disaster area redevelopment
plans. The ERRPA, however, was approved based on the previous Disaster Project Law statutes,
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which do not place these limitations on the Agency?s authority in the ERRPA. Implementing
ERRPA will be the primary focus of the Agency?s future redevelopment efforts.
Ocean Park Redevelopment Project 1A
The Ocean Park Redevelopment Project was the first project to be undertaken by the Santa
Monica Redevelopment Agency. It was designated for study as a potential redevelopment
project in April 1958 when an application was submitted to the Federal government for survey
and planning funds. With these funds, the Agency commenced preparation of formal plans for
the area encompassing thirty-three acres of land in the southwest corner of the City.
In October 1959, as a result of reduction in the availability of federal funds for the project, the
City divided the proposed thirty-three acre Ocean Park project into two separate projects so that
at least one project could proceed with the funds available to the Agency at the time.
Ocean Park Redevelopment Project 1A encompasses the northern 25 acres of the originally
proposed 33-acre project. The City Council approved the Redevelopment Plan for this Project
on June 30, 1960, following requisite studies and hearings by the Planning Commission,
Redevelopment Agency, and the City Council. The Redevelopment Plan was amended on
November 14, 1967, principally to change the permitted land uses in the project area. In 1986,
the Plan was amended to establish a limit on the dollar amount of tax increment revenue that
may be allocated to the Project and time limits within which to incur debt. The Plan was
amended again in November 1994 to comply with time limit changes pursuant to AB1290 (See
Table 1)
Ocean Park Redevelopment Project 1A is bounded by Ocean Park Boulevard on the north,
Neilson Way on the east, Ocean Park Project 1B on the south, and the State beach parking lots
and beach on the west.
The primary redevelopment activities in the Ocean Park Project 1A were completed in May
1987. The activities involved property acquisition and disposition and the construction of sewer,
water, storm drain and street infrastructure. The project contains two 17-story high-rise
apartment buildings, which were completed in 1967. Each tower contains 250 rental apartment
units. On both sides of the apartment complex is the Sea Colony condominium project. Sea
Colony contains 340 condominium units, which were constructed in two phases. Phase one of
the development was completed in 1980 and Phase 2 was completed in May 1987. The project
also contains Ocean View Park, a public park located in the center of the project area facing the
ocean.
Ocean Park Redevelopment Project 1B
Ocean Park 1B encompasses the southern eight acres of the originally proposed 33-acre project.
The City Council approved the Redevelopment Plan for this Project on January 24, 1961,
following requisite studies and hearings by the Planning Commission, Redevelopment Agency,
and the City Council. The Redevelopment Plan was amended on January 26, 1965, and again on
September 12, 1972, principally to change the permitted land uses in the project area. The plan
was amended in 1986 to establish a tax increment revenue limit and was amended again in
November 1994 to comply with time limits established by AB1290 (see Table 1).
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Ocean Park 1B is bounded by Ocean Park Redevelopment Project 1A on the north, Neilson Way
on the east, the City limit on the south and the State beach parking lots and beach on the west.
Redevelopment activities in the Ocean Park Project 1B area were completed in 1983. The
activities included the construction of two senior citizen residential apartment complexes and the
conversion of a former utility building to office and storage facilities for an art foundation.
Neilson Villas, the first senior complex constructed, contains 100 rental apartment units and was
completed in 1977. Barnard Park Villas, the second complex constructed, contains 61 units and
was completed in 1983. The utility building, which had been abandoned in 1986 was adapted in
1987 to house offices and art storage for the Eli Broad Family Art Foundation.
Downtown Redevelopment Project
The Downtown Redevelopment Project encompasses about 9.9 acres of property located in the
downtown core of Santa Monica. The Downtown Redevelopment Project is bounded by
thnd
Broadway on the north, 4 Street on the east, Colorado Avenue on the south, and 2 Street on
the west. The City Council approved the Redevelopment Plan for the Downtown Project in
January 1976.
Redevelopment activities within the Downtown Redevelopment Project were largely completed
in 1980. These activities consisted of acquiring and clearing all properties within the project area
for the construction of a regional mall, the Santa Monica Place shopping center, and two parking
structures. The retail portion of the project contains approximately 570,000 square feet of floor
area and includes two major department store anchors and 160 specialty retail shops and food
establishments, all of which are linked by a three-level enclosed pedestrian space that extends
diagonally across two City blocks. The project also includes two Agency-owned parking
structures containing 2,020 parking spaces, which are leased to the mall?s owner.
Earthquake Recovery Redevelopment Project
The ERRPA was established in 1994. The project area predominantly includes the structures
damaged in the January 1994 Northridge earthquake. Approximately 90% of all red-tagged and
80% of all yellow-tagged buildings in the city were in the project area. This significantly
affected the city?s affordable housing stock, as well as commercial and public properties. The
th
project area is bounded on the east by Cloverfield and 26 Street, on the west by the Pacific
Coast Highway/Beach Promenade, on the south by approximately Pico Boulevard and on the
north by Montana Avenue. The City Council approved the Redevelopment Plan for the ERRPA
Project Area on June 21,1994.
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TABLE 1
SANTA MONICA REDEVELOPMENT PROJECT PLANS SUMMARY
AB1290 TIME LIMIT CHANGES (1/94)
1
R PROJECT AREA ADOPTION DATES
BONDED
TAX INCREMENT
INCURRING PLAN RECEIVING TAX
INDEBTEDNESS
5
LIMIT
NEW DEBT ACTIVITIES INCREMENT AND
23
PAYING DEBT
4
6/30/60, Ord. 497
OCEAN PARK 1(A)
Amended:
$66,612,512 N/A 1/1/04 1/1/09 1/1/19
11/14/67, Ord. 757
12/9/86, Ord. 1392
11/29/94, Ord. 1778
1/24/61, Ord. 516
OCEAN PARK1(B)
Amended:
1/26/65, Ord. 667
$24,637,500 N/A 1/1/04 1/1/09 1/1/19
7/13/71, Ord. 873
9/12/72, Ord. 896
12/9/86, Ord.1393
11/29/94, Ord1779
1/13/76, ord. 1021
DOWNTOWN
12/9/86, Ord. 1395
$125,300,000 N/A 1/1/04 1/1/16 1/13/26
11/29/94, Ord. 1780
6/21/94, Ord. 1747 Not Subject to $95,000,0006/21/14 6/21/24 6/21/39
EARTHQUAKE
this Limitation
RECOVERY
PACIFIC OCEAN 7/13/71, Ord. 874 Not Applicable ? effectively defunct; no tax increment generated; no projects ever established.
PARK 12/9/86, Ord. 1394
Notes:
1The required AB1290 changes were adopted by ordinance 11/22/94.
2Later of 20 years from the plan adoption date or 1/1/2004.
3Later of 40 years from the plan adoption date or 1/1/2009; 30 years for plans adopted after 1/1/94.
4Later of 50 years from plan adoption or 1/1/2019; 45 years for plans adopted after 1/1/94.
5AB1290 eliminated the tax increment ceiling for plans adopted after 1/1/94 and instituted a limit on bonded indebtedness.
8
III. REVIEW OF THE 1994-99 IMPLEMENTATION PLAN
The following is a brief review of activities of the 1994-99 planning period for the
redevelopment project areas. A more extensive description is provided in Appendix A.
Ocean Park Projects 1A and 1B
During the five-year term of the 1994-99 Implementation Plan, the Agency did not propose any
new redevelopment activities. Expenditures for the Ocean Park 1A and 1B Projects were to
repay outstanding debt, fund the pro rata share of the Agency administration and overhead
expenses and fund City programs to increase and improve the supply of affordable housing.
Downtown Project
During the 1994-99 period, the Agency?s activities in the Downtown Project were limited to
repayment of outstanding debt, funding the Project?s pro rata share of Agency administration
costs and funding City affordable housing programs. The Project area does not include any
residential uses and hence, no newly constructed or rehabilitated residential units were developed
in the Downtown Project area.
??
Earthquake Recovery Redevelopment Project Area
The 1994 Implementation Plan was developed in conjunction with the creation of the ERRPA
Redevelopment Project. The four goals of the Implementation Plan focused primarily on
mitigating the immediate effects of the 1994 Northridge Earthquake and preserving the economic
base of the Project Area. Many of the associated programs described in the Implementation Plan
were intended to repair and reconstruct physical damage and to allow the resumption of business.
Many of the programs described in the Implementation Plan were assisted by entities other than
the Redevelopment Agency, utilizing other public or private funding. City staff secured loans,
grants and commitments of federal funds from FEMA (Federal Emergency Management
Agency) and the Department of Housing and Urban Development (HUD) to assist with the
Disaster repair and reconstructive work. HUD program funds provided assistance to both market
rate and affordable housing units. Of housing units funded through the disaster federal grants, 40
percent provided assistance to the affordable housing stock impacted by the earthquake. Local
financial institutions originated federal Small Business Association (SBA) loans to businesses
throughout the city, and a Small Business Development Center (SBDC) funded by the SBA set
up a satellite office in Santa Monica to provide resources to small businesses affected by the
disaster.
The ERRPA Redevelopment Project did not generate tax increment revenues for its first two
years and therefore, could not significantly contribute to addressing the immediate demands of
the disaster repair in the first two years of the Implementation Plan. The Redevelopment Agency
did make several commitments to implement the programs described in the 1994 Implementation
Plan, although these commitments were based on anticipated, future tax revenues.
9
IV. IMPLEMENTATION PLAN GOALS, OBJECTIVES AND
PROGRAMS FOR 1999/00 THROUGH 2003/04
Redevelopment law requires that for each project area, the Implementation Plan include the
project area?s goals and objectives, specific programs and expenditures for the five years and an
explanation of how the goals, objectives, programs and expenditures eliminate blight or increase
or improve the supply of affordable housing for low and moderate income households. The
following programs are proposed for the next five years. Anticipated program expenditures are
based on projected tax increment revenue expected for FY 1999-00 to FY 2003-04. Greater or
lesser funding may be available, depending upon activity in the project areas and the Agency?s
ability to leverage funds. Over the next five years, the Agency anticipates issuing debt for the
following projected activities. Table 2 below summarizes the Agency?s proposed programs.
TABLE 2
IMPLEMENTATION PLAN PROGRAM SUMMARY
FIVE-YEAR IMPLEMENTATION PLAN
Proposed Implementation Plan Programs
Project Area
& Projects
Implementation Plan Goals
Commercial Low and Moderate
Revitalization and Income Housing
Public Improvements
Ocean Park 1A and 1B
1. Housing: Acquisition/Rehab; New
X
construction; land acquisition for
affordable housing
Downtown
1. Housing: Acquisition/Rehab; New
X
construction; land acquisition for
affordable housing
X
2. Increase Economic Vitality
Proposed Implementation Plan Programs & Projects
Project Area
Implementation Plan Goals
Seismic Commercial Community Repair Low and
Retrofit Streetscape/ Infrastructure Damaged Moderate
Parking and Facilities Educational Income
Enhancement Facilities Housing
Earthquake Recovery Project
1. Disaster Prevention and
X X
Mitigation
X
2. Commercial Revitalization
X X
3. Community Revitalization
X
4. Acquisition/Rehab; New
construction; land
acquisition for affordable
housing
X X
5. Institutional Revitalization
10
Ocean Park Projects 1A and 1B
Goals and Objectives for 1999/00 through 2003/04
The original Ocean Park 1A and 1B redevelopment plans were adopted in 1960 and 1961. At
that time, the goals that formulated the overall policy direction of the project areas were intended
to accomplish the following:
?
eliminate blight
?
eliminate causes of blight
?
encourage owner and business participation in redevelopment activities
?
encourage rehabilitation, redevelopment and development
?
encourage economic revitalization
?
provide owner/occupant relocation
?
rebuild public facilities.
These original goals have been largely fulfilled with the completion of the Sea Colony
condominiums, Santa Monica Shores apartment complex, Ocean View Park, Neilson Villas and
Barnard Park Villas senior apartments. The following are remaining goals to be implemented
over the next five years, which are consistent with the original redevelopment plans and/or
ordinances approving the plans.
Goal 1 - Blight Elimination
?
Eliminate any remaining blighted conditions in the Project Areas. Ensure that causes of
blighting conditions will either be eliminated or protected against, or that any anticipated
blight will be prevented.
Goal 2 - Increase, Improve and Preserve the Supply of Affordable Housing
?
While this was not an original goal of the 1960 and 1961 Ocean Park Projects (and was not
required until 1976), its has been and will continue to be a primary objective of the Ocean
Park Projects over the next five years. Although the Ocean Park 1A and 1B Project Areas
are not subject to the Inclusionary Housing Production obligation (because they were adopted
prior to 1976), the Agency must still provide at least 20% of the gross tax increment from the
Ocean Park Project Areas to the Low and Moderate Income Housing Fund (Redevelopment
Housing Trust Fund), pursuant to Section 33334.6 of the Law.
Programs for FY 1999/00 through 2003/04
Affordable Housing Programs
?
Pursuant to Goal 2, the Agency intends to deposit all of the tax increment revenue (net of
administrative expenses and debt service payments) generated by the Ocean Park Project
Areas to the Redevelopment Housing Trust Fund, which will be used to promote affordable
housing development throughout the city.
The activities of the affordable housing program will include all permitted activities under
redevelopment law, including but not limited to the following:
?
land acquisition
11
?
acquisition and/or rehabilitation of eligible properties
?
new construction.
The program?s focus is to increase, improve or preserve rental housing opportunities within the
city. Other activities consistent with the City?s Housing Element, Consolidated Rental Housing
Trust Fund Guidelines and the Law may also be considered. Funds may be loaned or granted to
eligible borrowers for these uses.
Pursuant to Section 33490 of the Law, deposits of at least 20% set-aside to the Redevelopment
Housing Trust Fund will assist in the development of housing for very-low, low and moderate
income families. Pursuant to the Agency?s affordable housing objectives delineated in the 10-
year Affordable Housing Compliance Plan, the Agency anticipates that housing set-aside funds
from the Project Areas will be invested in new multifamily construction or acquisition / rehab-
ilitation programs citywide.
Estimated Program Expenditure: $5,500,000
OCEAN PARK 1A & 1B PROGRAMS
ESTIMATED PROGRAM EXPENDITURES
FY 1999-00 THROUGH 2003-04
Projects Previously CommittedNew Commitment(s) Total
(but Not Expended)
?
$5,500,000 $5,500,000
Affordable Housing
Program Financing for FY 1999/00 through 2003/04
The Agency anticipates that it will fund project costs with available tax increment revenue.
Downtown Project
Goals and Objectives for FY 1999/00 through 2003/04
In 1976, the Downtown Redevelopment Project was adopted; at that time, the following goals
were included in the Agency Report to City Council that have guided the Downtown
Redevelopment Project?s implementation since it was created:
?
revitalize/intensify central business district
?
develop a compact, coordinated and integrated business center
?
redevelop underutilized properties
?
increase economic vitality
?
induce mass transit;
?
induce greater design quality and increase employment.
Redevelopment activities of the Downtown Project were largely completed in 1980 with the
development of the Santa Monica Place shopping center and the two adjoining parking
12
structures, which are owned by the Agency. The following are remaining goals to be
implemented over the next five years, which are consistent with the original redevelopment plan.
Goal 1 - Increase, Improve and Preserve the Supply of Affordable Housing
?
Providing funds for affordable housing will be a primary objective of the Downtown Project
over the next five years. The Downtown Project is subject to the requirements of Section
33413 of the Law (Inclusionary Housing Production obligation, which is described fully in
the Amended 10-Year Housing Compliance Plan). However, there are no residential units
within the project area and thus, effectively no production obligation. The Agency must still
provide at least 20% of the gross tax increment from the Downtown Project Area to the Low
and Moderate Income Housing Fund (Redevelopment Housing Trust Fund), pursuant to
Section 33334.6 of the Law.
Goal 2 ? Increase Economic Vitality
?
Continue to increase the economic vitality of the Central Business District and the city as a
whole by significantly increasing property values, new business expansion, tax revenues
generated and greater investment interest in projects located in the city. This includes
replacing, upgrading, rehabilitating or installing improvements to the parking structures
within the Downtown Project Area.
Programs for 1999/00 through 2003/04
Affordable Housing Programs
?
Pursuant to Goal 1, the Agency will deposit remaining tax increment revenue from the
Downtown Project Areas to the Redevelopment Housing Trust Fund, which will be used to
implement affordable housing development throughout the city.
The activities of the affordable housing program will include all permitted activities under
the Law, including but not limited to the following:
?
land acquisition
?
acquisition and/or rehabilitation of eligible properties
?
new construction
The program will focus on increasing, improving or preserving rental housing opportunities
within the city, although other activities consistent with the City?s Housing Element,
Consolidate Rental Housing Trust Fund Guidelines and the Law may be considered. Funds
may be loaned or granted to eligible borrowers for these uses.
Pursuant to Section 33490 of the Law, deposits of at least 20% of revenues to the
Redevelopment Housing Trust Fund will assist in the development of housing for very-low,
low and moderate income families. Pursuant to the Agency?s affordable housing objectives
delineated in the 10-year Affordable Housing Compliance Plan, the Agency anticipates that
housing set-aside funds from the Project Areas will be invested in new multifamily
construction or acquisition/rehabilitation programs citywide.
13
Estimated Program Expenditure: $2.7 million
Commercial Revitalization and Public Improvements
?
In the next five years, the Agency may engage in activities that will replace, upgrade,
rehabilitate or install improvements to the parking structures within the Downtown Project
Area, or undertake other activities to address deterioration, safeguard against future physical
or economic blight, and preserve economic investment in the Downtown Project Area.
Section 33490 requires that the Implementation Plan include an explanation of how the goals
and objectives, programs and expenditures will eliminate blight within the project area and
will improve and increase the supply of housing affordable to very low, low and moderate
income households. The Downtown Project?s primary objective ? development of the Santa
Monica Place shopping center ? was accomplished with the development of the shopping
center in 1980. Future implementation efforts, such as the encouragement of private and
public investment, will enhance surrounding properties and prevent the spread of blight.
Specifically, the Infrastructure and Public Improvements program will alleviate the following
blighting conditions: 1) Physical Conditions that Limit the Economic Viability and Use of
Buildings/Lots; 2) Inadequate Public Infrastructure; 3) Depreciated/Stagnant Property Values
and Impaired Investments; and 4) High Business Turnover/Low Lease Rates/Vacant or
Abandoned Buildings
DOWNTOWN PROJECT PROGRAMS
ESTIMATED PROGRAM EXPENDITURES
FY 1999-00 THROUGH 2003-04
Projects Previously Committed New Total
(but Not Expended) Commitment(s)
?
$2,700,000 $2,700,000
Affordable Housing
Program Financing for 1999/00 through 2003/04
The Agency anticipates that it will fund project costs with available, net tax increment revenue.
Earthquake Recovery Project
Goals and Objectives for FY 1999/00 through 2003/04
From 1994-99, the ERRPA Implementation Plan primarily focused on repairing immediate
physical, earthquake damage to residential and commercial structures in the Project Area. The
goals of the original implementation plan (1994-95 through 1998-99) were as follows:
?
Commercial Revitalization (including disaster prevention and community revitalization
projects)
?
Residential Housing Revitalization (including disaster repair of residential structures)
14
?
Affordable Housing programs; and
?
Institutional Revitalization.
Since 1994, many of the structures needing immediate attention (due to the severe earthquake
damage) were either repaired or demolished by fiscal year 1998-99 (see Appendix A for details).
In the last five years, the Agency has made several project commitments that further the goals of
the 1994-99 Implementation Plan, although tax increment funds were not yet available to finance
the projects. In those cases, the City advanced funds for the projects, which the Agency agreed
to repay once tax increment became available.
The 1999-00 through 2003-04 Implementation Plan includes programs that will permit the
Agency to address its existing funding obligations and anticipated future commitments to further
the following goals:
?
Disaster prevention and Mitigation
?
Commercial Revitalization
?
Community Revitalization
?
Increasing, Preserving and Improving the Supply of Affordable Housing
?
Institutional Revitalization
The following provides a description of each of the goals for the next five years:
Goal 1 ? Disaster Prevention and Mitigation
?
Repair, replace, upgrade or reconstruct facilities with remaining earthquake damage or
facilities that are in need of such improvements to mitigate against the effects of another
disaster.
Goal 2 - Commercial Revitalization
?
?
Retain existing businesses by means of redevelopment activities and by encouraging and
assisting the cooperation and participation of owners, businesses and public agencies in
the redevelopment of the Project Area
?
Promote private sector investment and business expansion within the Project Area.
?
Preserve the area?s existing employment base and the restoration of local jobs
?
Replan, redesign and develop areas that are stagnant, damaged or improperly utilized.
?
Achieve an environment reflecting a high level of concern for architectural, landscape
and urban design and land use principles appropriate for the attainment of the objectives
of the Redevelopment Plan.
Goal 3 ? Community Revitalization
?
?
Ameliorate deteriorating conditions of circulation, sewer, water and storm drainage
systems in the Project Area and immediately surrounding areas.
?
Improve and enhance safety within the Project Area, including police and fire facilities.
?
Improve, repair, rebuild or provide for off-street parking and other public improvements,
facilities and utilities whose deficiencies adversely affect the ERRPA and residents of the
ERRPA.
15
?
Provide for adequate parking and street network in the Civic Center area, and encourage
the upgrading of surrounding public areas.
?
Install and construct, or caused to be installed and constructed, public improvements,
facilities and utilities to repair, restore, demolish or replace property or facilities damaged
by the earthquake or facilities necessary to prevent or mitigate an emergency.
?
Acquire, upgrade and/or rehabilitate property for public facilities and park improvements.
Goal 4 - Increase, Improve and Preserve the Supply of Affordable Housing
?
Primary objectives of the Earthquake Recovery Redevelopment Project have been to:
?
Assist in residential rebuilding and stabilization of neighborhoods following the
Northridge Earthquake.
?
Maintain the housing stock and mitigate the loss of affordable housing units. The need
for affordable housing units has been exacerbated by the passage of Costa Hawkins
Rental Housing Act, which implemented vacancy decontrol in Santa Monica. To that
end, providing funds for affordable housing will be a principal objective of the
Earthquake Recovery Project over the next five years.
?
Provide, at a minimum, 20% of the gross tax increment from the Earthquake Project
Area to the Low and Moderate Income Housing Fund (Redevelopment Housing Trust
Fund), pursuant to Section 33334.6 of the Law. The Earthquake Recovery Project is
subject to the requirements of Section 33413 of the Law (Inclusionary Housing
Production obligation, which is described fully in the Amended 10-Year Housing
Compliance Plan), and therefore incurs a production obligation.
Goal 5 ? Institutional Revitalization
?
?
Assist the Santa Monica Community College District with the costs of repair and
reconstruction of remaining earthquake damaged facilities.
?
Continue to make mandatory pass-through payments to the taxing agencies.
Program Financing for 1999/00 through 2003/04
The Agency anticipates that these projects will be funded with available tax increment revenue
and debt financing. Over the next five years, the Agency anticipates a series of bond issues,
secured by available tax increment revenue, to leverage the maximum bond debt allowed under
the Earthquake Recovery Redevelopment Plan. It is assumed for this implementation plan that
bonds will be issued in 1999-00, 2000-01 and 2001-02. On October 26, 1999, the Agency and
City Council approved the first bond issue of the ERRPA. The Santa Monica Earthquake
Recovery Redevelopment Project Tax Allocation Bonds, Series 1999 are expected to generate
approximately $57.8 million in net proceeds. Of these proceeds, $53 million has been
committed for the purchase of 11.3 acres of land owned by the RAND Corporation to further
implement the goals of the Civic Center Specific Plan and ERRPA Community Revitalization
goals. It is anticipated that this bond issue will close by the end of 1999 or early 2000.
Earthquake Recovery Redevelopment Project Programs for 1999/00 through
2003/04
16
The Agency intends to pay for the following programs with a combination of tax increment
revenue and debt financing. In total, the Agency anticipates expenditures and commitments
during the 1999/00 to 2003/04 period of approximately $120 million, based on the Agency?s
financial plans as described above. These estimated expenditures and commitments are
generally described below. The section immediately following outlines the estimated
The expenditures discussed
expenditures and commitments by specific goal and program area.
are only estimates of anticipated costs, which may change as actual funding obligations are
made through budgetary approvals or appropriations by the Agency over the next five
years.
?
Existing Commitments ($15.5 million)
? During the previous five-year planning period,
the Agency committed approximately $15.5 million for capital improvement projects,
comprised of the Pico Boulevard Commercial Streetscape Project, Pico Boulevard Crosswalk
Enhancement Project, Municipal Pool, Virginia Avenue Park Expansion repayment, Fourth
Street Housing Parking Structure and Seismic Retrofit of Public Parking Structures. Of these
commitments, $1.4 million has been expended to date for the Pico Streetscape Project.
Approximately $14 million remains to be expended by the Agency to fulfill these existing
obligations.
?
Commitments Made with Proceeds of 1999 Tax Allocation Bond ($57.8 million)
? The
Agency will purchase approximately 11.3 acres of land in the Civic Center area, which was
approved by the Agency on October 26, 1999. Of the $53 million purchase price, 30% is to
be allocated from bond proceeds designated for affordable housing purposes, and 70% from
unrestricted bond proceeds. Of the remaining 1999 tax allocation bond proceeds, the Agency
has earmarked $1.7 million for disaster prevention and mitigation projects and $3.1 million
for affordable housing projects.
?
New Commitments Anticipated in the next five years ($48 million) -
Over the next five
years, $48 million is anticipated to be available.
$17.1 million
-Of this amount, must be allocated for affordable housing projects to
satisfy the minimum mandated by redevelopment law. This is comprised of $14.8
million, which is the 20% set-aside requirement based on estimated tax increment
revenues and additional bond issues over the next five years, and $2.3 million of set-
aside funds remaining from the 1998-99 fiscal year.
$30.9
-Approximately million is expected to be spent on disaster prevention and
mitigation projects, such as seismic retrofit and related design work.
17
Disaster Prevention and Mitigation Activities
?
ERRPA funds will be used for a seismic retrofit and infrastructure improvement program to
continue to assist in the seismic upgrade of critical, essential, vulnerable or other public
facilities and structures within the Project Area that are vital to the health and safety or
commercial revitalization of the Project Area.
?
A funding commitment of $2 million was made in the 1994-1999 planning period for the
seismic upgrade of parking structures located in the city?s central business area, which
will be expended in the next five years. An additional $1.7 million has been designated
from the 1999 tax allocation bond for seismic retrofit design studies of the parking
structures.
?
Anadditional $30.9 million is anticipated to be allocated in the next five years for (1)
seismic retrofit design studies and/or retrofit construction of parking structures and
essential facilities and (2) stabilization, reinforcement or safety improvements of other
city facilities, parks or areas within, or of benefit to, the Project Area.
Section 33490 requires that the Implementation Plan include an explanation of how the goals
and objectives, programs and expenditures will eliminate blight within the project area.
Although the primary purposes of the ERRPA are to alleviate the impacts of the Disaster by
assisting in the reconstruction of buildings and stimulation of local economic activity,
implementation of these projects would also alleviate the following conditions of blight: 1)
Unsafe/Dilapidated/Deteriorated Buildings caused by the earthquake; 2) Inadequate public
improvements/infrastructure/facilities.
Estimated Program Expenditure: $34,600,000
Commercial Revitalization Programs
?
EERPAfunds will be used to pay for a commercial streetscape program, which will
revitalize and promote economic investment in the commercial corridors of the Project Area.
?
The Pico Streetscape Phase of the Commercial Streetscape Program includes the addition
of street fixtures, crosswalk improvements, enhanced pedestrian amenities and safety
features, and street reconstruction. A total commitment of $6,901,460 has been made for
the project, of which a portion has been spent. There remains $5,487,027 to be expended
during the next five years.
?
Project area funds will also be used for parking structure enhancement and construction,
to preserve economic investment and activity in the project area. Approximately $2.56
million has been committed for commercial parking structure construction in conjunction
with an affordable housing development. Additional amounts may be allocated for
additional costs associated with this parking structure in the coming fiscal years.
Section33490 of the Law requires that the Implementation Plan include an explanation of
how the goals and objectives, programs and expenditures will eliminate blight within the
project area. Although the primary purposes of the ERRPA are to assist in the reconstruction
of buildings and stimulate local economic activity, implementation of these projects would
also alleviate the following conditions of blight: 1) Inadequate public
18
improvements/infrastructure/facilities; 2) Unsafe/dilapidated/deteriorated properties; and 3)
Depreciated or stagnant property values or impaired investment.
Estimated Program Expenditure: $8,051,000
Community Revitalization Program
?
ERRPA funds will be used to implement the community revitalization goals through funding
of the following activities:
?
In the last five years, the Agency committed $3.1 million to repay the City for funds used
to acquire land to expand Virginia Avenue Park and for construction of improvements on
the site; the Agency expects to expend these funds shortly.
?
Within the 1999-2000 fiscal year, the Agency intends to allocate $37.1 million for the
purchase of land in the Civic Center area owned by the RAND Corporation to implement
the goals and objectives of the Civic Center Specific Plan. (The remaining acquisition
cost of $15.9 million will be financed with funds allocated for affordable housing
purposes, as the Civic Center Specific Plan calls for the inclusion of affordable housing
on the site).
?
Additional amounts may be allocated over the five year period for capital improvement
projects or design, architectural or engineering studies for such projects, which may
include: circulation, water, sewer or electrical system improvements that benefit the
Project Area; facilities to improve and enhance safety in the Project Area; off-street
parking and an improved street network in the Civic Center area; and other public
facilities and park improvements that serve or benefit the Project Area.
Although the primary purposes of the ERRPA are to assist in the reconstruction of buildings
and stimulate local economic activity, implementation of these projects would also alleviate
the following conditions of blight: 1) Factors preventing the economically viable use of
buildings/lots; 2) Inadequate public improvements/infrastructure/facilities.
Estimated Program Expenditure $40,200,000
Institutional Revitalization Program
?
?
In the last five years, $1 million was committed to assist in the reconstruction of the
municipal pool located on the Santa Monica College campus, which serves the needs of
the college and the community. These funds are anticipated to be expended in the next
five years.
?
The Agency will continue to make legally required ?pass-through payments? to the
school district and college, as well as other taxing entities, which in aggregate equal to
25% of the project area tax increment, net of the required housing set-aside.
Although the primary purposes of the ERRPA are to assist in the reconstruction of buildings
and stimulate local economic activity, implementation of these projects would also alleviate
the following conditions of blight: Unsafe/dilapidated/deteriorated buildings caused by the
earthquake.
19
Estimated Program Expenditure: $1,000,000 ($15,700,000 including pass-through
payments to the taxing entities).
Affordable Housing Programs
?
The Agency will continue to deposit tax increment revenue from the Earthquake Project Area
to the Redevelopment Housing Trust Fund, to implement affordable housing development
throughout the city.
?
The Agency intends to allocate $15.9 million of funds designated for housing to acquire
land in the Civic Center Specific Plan area in order to provide affordable housing on the
site. An additional $3.1 million of the 1999-00 tax allocation bond issue will also be
allocated for housing purposes.
?
An estimated $17.1 million of housing set-aside funds will be allocated over the next five
years to fund land acquisition, new construction, and acquisition and rehabilitation
projects to provide affordable housing. These funds are comprised of the project area?s
anticipated 20% set-aside tax increment revenues and 20% of proceeds of bonds expected
to be issued in the next five years. These funds will further increase, improve or preserve
rental housing opportunities within the city. Other activities consistent with the City?s
Housing Element, Consolidated Rental Housing Trust Fund Guidelines and the Law may
also be considered. Funds may be loaned or granted to eligible borrowers for these uses.
?
It is anticipated that additional funds may be allocated for affordable housing purposes,
should such revenues become available, as a result of: 1) increased tax increment
revenue, beyond the Agency?s 2% growth projections; 2) an increased bonded
indebtedness limit, pursuant to the Earthquake Recovery Redevelopment Project Area
Plan limit; and 3) reallocation of funds currently designated for non-housing, capital
improvement projects.
Pursuant to Section 33490 of the Law, deposits of at least 20% of tax increment revenue to
the Redevelopment Housing Trust Fund will assist in the development of housing for very-
low, low and moderate income families. Pursuant to the Agency?s affordable housing
objectives delineated in the 10-year Affordable Housing Compliance Plan, the Agency
anticipates that housing set-aside funds from the Project Areas will be invested in new
multifamily construction or acquisition/rehabilitation programs citywide.
Estimated Program Expenditures: $36,100,000
20
EARTHQUAKE RECOVERY REDEVELOPMENT PROJECT AREA
ESTIMATED PROGRAM EXPENDITURES
FY 1999-00 THROUGH 2003-04
Previously Committed as New Commitments Total
Committed (but Not part of 1999 Tax Anticipated in
Programs Expended) Allocation Bond 1999/00 - 2003/04
?
$ 2,000,000 $ 1,700,000 $ 30,900,000 $ 34,600,000
Disaster Prevention and
Mitigation
1
?
$ 8,050,687 $ - $ - $ 8,050,687
Commercial
Revitalization
?
$ 3,100,000 $ 37,100,000 $ - $ 40,200,000
Community
Revitalization
?
$ 1,000,000 $ - $ - $ 1,000,000
Institutional
Revitalization
-2 3
?
$ 19,000,000 $ 17,100,000 $ 36,100,000
Affordable Housing
Total All Projects - $ 14,150,687 $ 57,800,000 $ 48,000,000 $ 119,950,687
4
Estimated Expenditures
Total All Projects - $ 15,565,120 $ 57,800,000 $ 48,000,000 $ 121,356,120
Commitments
Notes:
1
Excludes $1,414,433 that was expended in the last five-year planning period for the Pico Streetscape project. The total commitment for the Pico
Streetscape Project is $6,901,460, which includes $165,068 that was approved in FY 1999/00 for crosswalk improvements.
2
All funds deposited in the Redevelopment Housing Trust Fund during the last five years have been expended, except for $2.3 million, which is
reflected in the "New Commitments" column.
3
Includes a $2.3 million initial balance in the Housing Set-Aside fund from previous years. Total new set-aside revenue for 1999/00 through 2003/04
is projected to be $14.8 million.
4
"Estimated Expenditures" are anticipated expenditures that will be made during FY 1999/00 through FY 2003/04 but excludes payments already made
during FY1994/95 through FY1998/99. The only such payment made was $1,414,433 for the Pico Streetscape Project.
f:\redevelopment\implementation plan\rsg\ERRPA Program Expend 11-9-99
21
HOUSING UNIT ESTIMATES
Section 33490(2)(A) of the Law requires that the implementation plan address housing fund
revenues and expenditures, as well as any applicable housing production activities over the next
five years. These elements are included in the Agency?s Amended Ten-Year Affordable
Housing Compliance Plan, incorporated herein by reference.
In addition to these data, Section 33490(2)(B) requires various estimates of housing unit
production over the time frame of the next five years, next ten years, and over the duration of the
Redevelopment Plans. These estimates are included in Table 3 below:
Housing Unit Estimates Table 3
Five Year Implementation Plan
Time Frame Current 5 Years 10 Years Red. Plan
As of 1999 - 1999 - 1994 -
July 1999 2004 2009 2024
Total Market Rate & Affordable Units Projected
(H&S Sec. 33490(a)(2)(B)(I))
New Construction 2,497 6,005
Substantial Rehabilitation 927 2,703
Price Restricted - -
Total 3,424 8,708
Inclusionary Requirement (15% of Total)
(H&S Sec. 33490(a)(2)(B)(ii))
Low and Moderate Income (9% of Total) 308 784
Very Low Income (6% of Total) 205 522
Total 514 1,306
Units Developed to Meet Inclusionary
Requirement
(H&S Sec. 33490(a)(2)(B)(iii))
Low and Moderate Income 376
Very Low Income 279
Total 655
Units to be Developed by Agency*
(H&S Sec. 33490(a)(2)(B)(iv and v))
Low and Moderate Income 0
Very Low Income 0
All Others 0
Total 0
*
The Agency has not, and does not expect, to directly develop affordable housing units; instead, the Agency intends to
continue to provide assistance to developers for affordable housing production.
22
APPENDIX A: REVIEW OF THE 1994-99 IMPLEMENTATION PLANS
Ocean Park Projects 1A and 1B
During the five-year term of the 1994-99 Implementation Plan, the Agency did not propose any
new redevelopment activities. Expenditures for the Ocean Park 1A and 1B Projects were to
repay outstanding debt, fund the pro rata share of the Agency administration and overhead
expenses and fund City programs to increase and improve the supply of affordable housing.
Goals/Objectives of 1994-99 Implementation Plan
The goals and objectives of the 1994-99 Implementation Plan echoed the original goals and
objectives of the Ocean Park 1A and 1B redevelopment plans adopted in 1960 and 1961,
respectively. They were as follows: eliminate blight, eliminate causes of blight, encourage
owner/business participation and redevelopment activities, encourage rehabilitation,
redevelopment and development, encourage economic revitalization, provide for owner-occupant
relocation, and rebuild public facilities.
Review of Programs for 1994-99
Administration, Maintenance and Operations.
?
The Agency administered functions relative to the Ocean Park 1A and 1B project areas,
including accounting for bond debt, administrative overhead, vehicle and comprehensive
insurance, Agency Board member allowances, professional services, fiscal agent fees, office
supply expenses, and reimbursement to the County of Los Angeles for costs incurred in
collecting and distributing tax increment revenue.
Debt Service Obligations.
?
The Agency continued to fund debt service obligations resulting from the 1992 refunding of the
tax allocation bond issued to finance redevelopment activities in the project areas, as well as
loans to the City of Santa Monica General Fund, which had provided additional capital for the
Ocean Park redevelopment activities.
City Housing Trust Fund Deposits.
?
The Agency deposited 20% of the project areas? tax increment revenue to the Redevelopment
Housing Trust Fund to provide financing for programs that provide housing to very-low and
low-income households.
Elimination of Blight
Funding for administration, maintenance and operations of the Agency supported the Agency?s
efforts to retire debt and other obligations incurred to fund improvements in the Ocean Park 1A
and 1B Project Areas. Although these efforts did not directly eliminate blight, they instead
supported the projects? close out activities that were undertaken to redevelop the area and
address the goals and objectives of the Redevelopment Plan.
A-1
Downtown Project
During the 1994-99 period, the Agency?s activities in the Downtown Project were limited to
repayment of outstanding debt, funding the Project?s pro rata share of Agency administration
costs and funding City affordable housing programs. The Project area does not include any
residential uses and hence, no newly constructed or rehabilitated residential units were developed
in the Downtown Project area.
Goals/Objectives of the 1994-99 Implementation Plan
Similar to the Ocean Park 1A and 1B, the goals and objectives of the 1994-99 Implementation
Plan recall the original project implementation expectations created in 1976 that have guided the
Downtown?s redevelopment activity. They were as follows: revitalize/intensify central business
district; develop a compact, coordinated and integrated business center; redevelop under-utilized
parcels; increase economic vitality; provide an inducement for mass transit expansion; provide
an inducement for greater quality design; and substantially increase employment.
Review of Programs for 1994-99
Administration, Maintenance and Operations.
?
Similar to the Ocean Park 1A and 1B projects, for the Downtown Project, the Agency
administered and accounted for costs associated with the project, including bond debt,
overhead, vehicle and comprehensive insurance, Agency Board member allowances,
professional services and fees to Los Angeles County for costs incurred in collecting and
disbursing tax increment revenues.
Debt Service Obligations.
?
Debt obligations were paid by the Agency for the 1992 refunding of Lease Revenue Bonds
that were issued to fund the redevelopment activities associated with the Santa Monica Place
shopping center, as well as loans to the City of Santa Monica General Fund
City Housing Trust Fund Deposits.
?
The Agency deposited 20% of the project area?s tax increment revenue to the Redevelopment
Housing Trust Fund to fund programs that provide housing for very low and low-income
households.
Elimination of Blight
The funding of administration efforts did not directly eliminate blight or address the plan goals,
but instead supported the remaining project closeout activities, which were implemented to
address the goals and objectives of the Downtown Project.
A-2
??
Earthquake Recovery Redevelopment Project Area
The 1994 Implementation Plan was developed in conjunction with the creation of the ERRPA
Redevelopment Project. The four goals of the Implementation Plan focused primarily on
mitigating the immediate effects of the 1994 Northridge Earthquake and preserving the economic
base of the Project Area. Many of the associated programs described in the Implementation Plan
were intended to repair and reconstruct physical damage and to allow the resumption of business.
Many of the programs described in the Implementation Plan were assisted by entities other than
the Redevelopment Agency, utilizing other public or private funding. City staff secured loans,
grants and commitments of federal funds from FEMA (Federal Emergency Management
Agency) and the Department of Housing and Urban Development (HUD) to assist with the
Disaster repair and reconstructive work. Of housing units funded through the disaster federal
grants, 40% provided assistance to the affordable housing stock impacted by the earthquake.
Local financial institutions originated federal Small Business Association (SBA) loans to
businesses throughout the city, and a Small Business Development Center (SBDC) funded by the
SBA set up a satellite office in Santa Monica to provide resources to small businesses affected by
the disaster.
The ERRPA Redevelopment Project did not generate tax increment revenues for its first two
years and therefore, could not significantly contribute to addressing the immediate demands of
the disaster repair in the first two years of the Implementation Plan. The Redevelopment Agency
did make several commitments to implement the programs described in the 1994 Implementation
Plan, although these commitments were to be funded from the City?s General Fund and repaid by
the ERRPA once tax increment revenue became available.
Goals of the 1994-99 Implementation Plan
The four goals were as follows: (1) commercial revitalization of the community, (2) residential
housing revitalization, (3) improvement and expansion of the community?s supply of low and
moderate-income housing, and (4) institutional revitalization.
Elimination of Earthquake-Related Damage
The goals and programs of the ERRPA Redevelopment Project have assisted in the elimination
or mitigation of physical and economic conditions resulting from the Northridge Earthquake.
The programs funded by the Agency with ERRPA funds have, or will, directly repair earthquake
damage, seismically retrofit needed public facilities, assist in the revitalization of depressed
commercial areas or preserve economic investment in the Project Area. The housing programs
described have contributed to the expansion and preservation of very-low and low-income
housing units within the city.
Review of Programs for 1994-99
The following programs were included in the 1994 Implementation Plan and are categorized by
the four goals listed above.
A-3
Commercial Revitalization Projects
?
?
Financial Assistance for Repair and Rehabilitation of Commercial Properties. The intent
of this program was to assist uninsured or underinsured non-residential property owners
who either lacked funds to repair and reconstruct damaged buildings or could not
appropriately secure debt from conventional lenders. According to the city?s building
permit data, 90% of the red-tagged parcels and over 98% of the yellow-tagged parcels
have been repaired, rebuilt or are in the process of being repaired. This equates to
approximately 86 parcels of land on which there are now repaired or reconstructed
buildings. SBA, FEMA and private funds were largely responsible for the repair and
rebuilding that took place following the disaster.
?
Economic Recovery and Commercial Revitalization. The Earthquake had caused
considerable loss to individual businesses in the city and economic dislocation. The
intent of the program was to restore economic vitality of the city?s commercial areas
through circulation and streetscape improvements, including design amenities to facilitate
pedestrian vehicular traffic and revitalize commercial activities in the Project Area.
From 1994-99, the Agency committed a total of $6,901,460 for the Commercial
Streetscape Improvement Project. This project includes enhanced crosswalks, street
trees, medians, pedestrian lighting and other amenities to encourage pedestrian activity
and economic viability of the Project?s commercial corridors. The Redevelopment
Agency committed $2,896,545 for the first phase of the Commercial Streetscape
Program to improve Pico Boulevard and an additional $886,000 for the crosswalk
enhancement component of the Pico Boulevard streetscape program. The project has
been funded in conjunction with a $3,118,915 million federal Economic Development
Agency (EDA) grant funded through the Los Angeles County Community Development
Commission. Construction began in February 1999 and should be completed by March
2000.
In addition, the Agency committed $3.1 million in ERRPA funds to reimburse the City?s
Housing Department for the acquisition of land at the corner of Cloverfield Boulevard
and Pico Boulevard, in the heart of the Pico corridor. This land will be used for the
expansion of Virginia Avenue Park. Virginia Avenue Park provides job-training
opportunities for members of the community at its Thelma Terry Center, an important
resource to encourage and strengthen employment in the project area.
?
Earthquake Preparedness. This program was intended to assist commercial and
industrial property owners in making repairs and retrofitting buildings to better protect
their lives and property. No redevelopment funds were spent on this activity in the 1994-
99 period. According to the building parcel data, nearly every red or yellow-tagged
parcel has completed repairs to make the buildings operational; however, there are
unreinforced masonry buildings and soft-story buildings that require seismic upgrade
work to comply with city building codes. In June of 1994, the City Council enacted
comprehensive retrofitting standards for vulnerable buildings and nonstructural hazards.
All owners of buildings identified as soft-story or unreinforced masonry constructions
A-4
have been sent notices of the retrofit requirement. The City?s Building and Safety staff is
in the process of evaluating unreinforced masonry buildings which have not received a
final permit (i.e. work has not been completed).
This program was also intended to provide educational materials to property owners and
businesses concerning the mitigation of interior hazards. Workshops demonstrating
methods to prevent interior hazards were conducted on April 30, 1994 and April 25, 1998
by City staff. The Fire Department has also distributed booklets to assist people to
prevent interior hazards.
This program also included assistance to commercial businesses and industrial facilities
that handle hazardous materials in installing automatic fire and hazardous material
detection, reporting and shut-off devices, as well as alternative warning systems. In
addition, the program included assistance to property owners in installing automatic gas
shut-off valves, where appropriate. The gas shut-off valves were not available through
The Gas Company at the time of the 1994 Northridge Earthquake, but in 1996, a device
was developed and marketed by The Gas Company?s affiliate for limited use in single
and multi-family residences.
?
Financial and Technical Assistance. This program?s intent was to provide technical
assistance to business tenants who suffered as result of the disaster.
After the Earthquake, the City provided quarters for the Westside Small Business
Development Center free of charge at a value of $48,000 per year beginning in early
1994. The Westside SBDC has provided a referral service to businesses seeking disaster
relief through FEMA and SBA, as well as an extensive palette of business improvement
counseling, seminars, technical assistance and access to other loan programs. To date, the
Center has assisted an average of 45 businesses per month with individual business
counseling. No redevelopment funds were expended on this activity.
As part of the Pico Streetscape Improvement Project, the ERRPA is funding a business
outreach coordinator to work with the business community and provide assistance to
individual businesses. The Coordinator, working through the Westside SBDC, is
presently funded for one year to help businesses obtain resources for improving the
appearance and vitality of their businesses, recommend programs currently not in place
and improve the business climate of the Pico Boulevard commercial district.
?
Infrastructure and Public Service Improvements and Retrofitting. This program called
upon the Agency to provide for replacement, retrofitting and installation of improvements
to key infrastructure to safeguard against future disaster damage. Public facilities
throughout the city were damaged. Since that time, all cosmetic repairs have been
completed. The City secured OES/FEMA funds to repair some of the damaged facilities
but is still working with FEMA on additional requests. In the 1994-99 period, the
Agency committed $2 million of ERRPA funds for the seismic retrofit of the public
parking structures that support the downtown commercial district.
A-5
The Agency also committed $500,000 toward the improvement and reconstruction of the
bottom floor of Parking Structure 4 in the downtown commercial area for commercial
space. The space is being planned for the Convention and Visitor?s Bureau and another
retail tenant. Feasibility studies are now being prepared.
Residential Housing Revitalization Projects
?
?
Residential Repair and Rehabilitation Program. The earthquake damaged a total of
1,615 residential units. The intent of the program was to assist residential tenants,
landlords and owners of property with grant and loan funds to repair and reconstruct
structures damaged by the Disaster. Approximately 1,449 units have been repaired or
rebuilt. City residents were successful in obtaining assistance through FEMA and SBA.
In addition, the City obtained $33 million of federal block grant and HOME funds to aid
in this disaster effort. The Multifamily Earthquake Rehabilitation Loan (MERL)
Program provided $26.8 million in loans to assist 531 of the residential units that were
either repaired or reconstructed.
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Expedited Permit Processing. The purpose of this program was to ease the
administrative and financial burden of the permit system for earthquake-related repair
and reconstruction. The expedited system allowed special earthquake repair permits to
ease and quicken the process for property owners and developers. The vast majority of
residential and commercial repairs in the Project Area were made with special earthquake
permits.
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Financial Assistance for Residential Retrofitting. This program was intended to provide
financial assistance in the form of loans and grant to property owners to retrofit their
buildings to comply with the City?s retrofit standards for buildings that are especially
susceptible to earthquake damage, such as unreinforced masonry, conventional wood
frame, soft/weak story, reinforced concrete/non-ductile frame and precast concrete
structures. To date, 70% of the unreinforced masonry and soft story buildings have had
their retrofit work completed.
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Hazard Mitigation. The program was to provide educational materials to residents
concerning safeguarding the interiors of their homes from hazards and damage. Private
organizations and the City have provided this information.
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Financial and Technical Assistance. The Agency was to provide technical assistance to
help residents obtain financial assistance from other private and public sources. FEMA
provided this assistance with the support of other Federal and local agencies.
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Low and Moderate Income Housing Initiatives
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Expand the supply of affordable housing. The Project Area contains almost all the multi-
family zoned areas that were seriously affected by the earthquake. Therefore a primary
goal and program over the last five years was to use ERRPA funds to expand the supply
of affordable housing through gap financing for acquisition and rehabilitation of housing.
The statutory required 20% of the ERRPA funds was deposited into the Redevelopment
Housing Trust Fund and spent, encumbered, or earmarked for several projects, including
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Upward Bound (70 units), Lincoln 202 (40 units), 855 Bay (15 units) and 1227 9 Street
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(10 units), 821 11 Street (10 units) and 1344 14 Street (11 units). In addition, the
Agency committed $2.6 million of ERRPA funds for a parking structure supporting the
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4 Street 202 Project (66 units) project.
Institutional Revitalization Initiatives
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Assist the Santa Monica-Malibu Unified School District and Santa Monica Community
College with costs of repair and reconstruction of earthquake-damaged facilities. The
purpose of this program was to help restore institutions damaged by the earthquake,
specifically the school district and community college. The Agency budgeted $1 million
in ERRPA funds for the replacement of the City?s Municipal Pool located at the Santa
Monica Community College facility.
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