SR-414-001
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C/ED:EDD:EF:SW:mb
Counc~l Mept~ng of 12/17/85
Santa Mon~ca, Cal~fornia
TO:
Redpvelopmpnt Agency/City Counc~l
FROM:
Clty Staff
SUBJECT: Recommpnoat~on to Adopt Resolut~ons to DptE'rm~np Th~rd
Strpet Mall Par klng and Public Improvpmpnts to bp of
Bpnef~t to the Downtown Redevplopmpnt proJPct
INTRODUCTION
Th~s rpport rE'commpnos thE' Agpncy/Council adopt resolut~ons wh~ch
f~nd cprtaln Thlrd Street Mall parKIng and publIC improvempnts to
bp of-bpnef~t to the Downtown Redevelopment Project Arpa.
BACKGROUND
Thp Th~rd Street Mall Prpl~minary Plan was presented to the C~ty
Counc~l for comments and reVIew on October 1, 1985.
As part of
the Plan, a Mall ParK~ng and Publ~c Improvement Program was pres-
ented, and the pOSSIblE" use of tax incremE'nt funds from thE' Down-
town RPdpvP10pmpnt Project was proposed.
WhIlE' the CIty Counc~l
took no formal actlon to allocate Downtown tax lnCrE'mpnt for thp
Mall proJPct at that t~me, ~t is recommpndeo that the fleXlbllity
to do so be presprvpd.
For that rpason, and to mept thp tpchni-
cal requ~rpments of rpcpnt State Lpglslation, the Redevelopment
Agpncy and Clty Counc~l arp requestpd to take var~ous technlcal
actlons prIor to January 1, 1986.
DISCUSSION
Rpcpntly, tnE' State Lpgislaturp passpd and thp Govprnor slgnpd AB
265, an act to ampnd Spct~on 33334.3 and to add Sectlons 33334.6
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and 33334.7 to thE' Health and Safety Codes. The new statute rp-
qUlres that, unless Redevelopment AgpncIes take certain actlons
prlor to January 1, 1986, twenty percE'nt of the annual tax incre-
ment must be set aside for the purpose of increasing and lmprov-
ing thE' supply of low and moderate incomp housing for all proj-
pcts adopted prior to 1977. The Downtown Redpvelopment Project
was adopted January 13, 1976 and therefore the future usp of
Downtown tax lncrement wlll be subject to the IlmItatlons set
forth ln AB 265.
If in the future thE' Agency wlshE's to set aSldE' lE'5S than thp
required twpnty percent for housing, thp Agpncy must take action
by January 1, 1986 to find the Mall Parklng and Publ1c Improve-
ment Program to bp of benefIt to the Agency. Agpncy Counspl has
determlnpd that adoptIon of a CoopE'ration and Reimbursement
Agreement for the ThlTd Street Mall ProjE'ct will fulfill the
technIcal and lpgal reqUIrements of AB 265 and also assure that
thE' AgE'ncy/City WIll have the future optIon to expend Downtown
tax Increment for thp Thlrd StrE'et Mall Plan or to df'dlcatp such
funds for thp productIon of low and moderate Incomp hOUSIng. The
actions recommpnded in thIS rpport malntaln thp Rpdpvelopment
AgencY/Clty CouncIl's abIlIty to annually-allocate Downtown tax
Incrempnt funds based on future communlty neE'ds.
Under CalIfornIa Rpopvelopment Law, Health and Safpty Code, Spc-
tlon 33445, rpdevelopment agencIPs may usp tax increment funds to
financp any publIcly owned ImproveIDPnts or faCllltlE'S Inslde or
outSIde thf' pro)Pct arpa If a flndlng is made that thp Improvp-
ments arp of bpnpfIt to the pro)Pct or thp lmmpdlatp nPlghborhood
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and that no otnpr reasonablf' means of f1.nanc1.og 1.5 ava1.lablp.
'rhese of-beoef1.t f1.oo1.og$ prov1.oP the bas1.$ for the Coopprat1.oo
aod Re1.mbursempnt Agrf'PffiE'nt bf'twPE'n the Rf'dpvplopmE"nt Agpncy and
the C1.ty of Santa Monica. Technically, the Reopvelopment Agency
and the City Counc1.1 must eaCh adopt a rpsolut1.on that dpterm1.nes
the Thud StrE'E"t Mall Park1.ng and public ImprovpmE'nt Plan to bE'
of benf'f1.t to the Downtown Redpvplopmpnt ProJPct and authorizps
thf' Cooperat1.on Agrpempnt to establ1.sh a fund 1.ng relat1.onsh1.p
betwppn the Agency and C1.ty.
Summary reports docuffiPnt1.og the of
bf'npf1.t f1.nd1.ng$ as well as npcpssary Agency/Counc1.l re501ut1.ons
adopt1.ng thE"se f1.nd1.ngs arp attachpd to th1.s report for Agf'ncy/
Counc1.1 act1.on.
BUDGET/FISCAL IMPACT
Adopt1.on of the attachpd re5o!ut1.0ns will not rpsult 1.n f1.scal
l.mpact prlor to formal Agency/Counc1.l adoptlon of a f1.nanc1.ng
program for thp Th1.rd Strpf't Mall Parklng and PubllC Improvpmpnt
Plan.
ThlS actlon wlll follow a completp f1.nanc1.al analY51.$ as
part of thp Th1.rd StrE'et Mall SpeClf1.C Plan adoptlon procP5s.
RECOIlNENDATIONS
Staff recommpnds that thE" Agpncy:
1. Adopt a rp501ut1.on of thp Redpvplopmf'nt Agpncy to detpr-
mlnp thp Th1.rd Strf'pt :1all Park1.ng ana PubllC Improvp-
mpnt Plan to be of benef1.t to the Downtown ProJect Arpa,
that no othpr rpasonablp mpan5 of flnanclng 1.S ava1.1-
ablp, and approvlng and author1.zing thp e)Cecutlon of a
cOoppratlon and rPlmbur5pmpnt agrpPffient bptwppn thp Clty
and Agpncy.
Staff rpcommpnds that thp C1.ty Councll:
1. Adopt a rp5olutlon of thp Clty Counc1.! to detprm1.np thp
Thlrd Strppt Mall Parklng and Public Improvpmpnt Plan to
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bE> of bf'npflt to tnp Downtown PTOJPct Arpa, that no
othpr rf'asonablp ffiPans of fJ.nanclng is avaJ.lablp, and
approvlng and authorlZlng thp Pxpcutlon of a cooppratlon
and rpImburSPffif'nt agrf'pmpnt bptwf'f'n thf' CJ.ty and Agpncy.
Prpparpd by: Ernpsto R. Florps, ManagPT
Slanpy L. WhJ.tp, Sf'nlOr AdminlstratJ.vP Analyst
EconomJ.c Df'vf'lopffif'nt Dlvlslon
Communlty and EconomlC Df'vplopmpnt Dppartmpnt
Attachmpnts:
1. Agpncy Rpsolutlon
2. CouncIl Rpsolutlon
3. ExhIbIt A to Resolutlons: Cooppratlon and RpIrnbursp-
ment Agrppmpnt
4. ExhIbIt B to Rpsolutlons: Summary Rpport
5. Exhlblt A to Summary RPport: Cooppratlon and RPlffi-
bursPffif'nt Agrf'pmf'nt
6. ExhIbIt B to Summary Rf'port: Sltp Map
7. ExhIbIt C to Summary Rpport: Constructlon Cost
EstImatps
ps2sr
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