SR-414-002 (5)
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Redevelopment Agency MeetIng: 8/28/84
CIty CouncIl MeetIng
Santa MonIca, CalIfornIa
TO: Redevelopment Agency
CIty CounCIl
FROM: CIty Staff
SUBJECT: RecommendatIon to Adopt ResolutIons AllocatIng Funds to
the Downtown Redevelopment ProJect Low and Moder'ate
Income HOUSIng Trust Fund, EstablIShIng and AllocatIng
Funds to the Ocean Par'k Redevelopment Pr'oject lea) and
l(b) Low and Moderate Income HOUSIng Trust Funds; and
to approve contract WIth CommunIty CorporatIon of Santa
MonIca.
INTRODUCTION
ThIS r'eport transmIts for adoptIon resolutIons allocatIng funds
to the Downtown Redevelopment Project Low and Noderate Income
HOUSIng Trust Fund, and establIshIng and allocatIng funds to the
Ocean Park Redevelopment Project 1 (a) and 1 (b) Low and Moderate
Income HOUSIng Trust Funds for use In housing programs approved
In the Piscal Year 1984-85 budget. Also transmItted for approval
IS a standard Grantee Contract for core fundIng for CommunI ty
Corporation of Santa MonIca, and for use of "Earnest Money" funds
through the CItywide HOUSIng AcqUISItIon and RehabIlItatIon
Program.
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City Counc11/Redeve~ment Agency:
Santa~n1ca. Cal1fornia
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TO:
Redevelopment Agency
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FROM:
SUBJECT:
City Staff
Proposed Settlement Agreement wlth Llncoln Property
Company
Introduction
This report transm1ts a proposal for a settlement agreement w1th
Lincoln Property Company and recommends that the Agency authorlze
the staff to enter 1nto a settlement agree~ent and fl1e for an
amended Coastal Development Perm1t.
The report also recommends
that Staff in conjunction with commun1ty representat10n begln
plann1ng for the construction of affordable housing and the
des1gn of parks and other neighborhood fac1l1t1es.
The Staff ;s recommendlng this settlement because It would
provide for a project with reduced denslty. lower build1ng
height, greater setback, on-site affordable housing, and $7
million dollars to be used for a varlety of ne1ghborhood
improvements.
The Staff 1S fully cognizant of the concerns of
Agency Members and the communlty about the impact of thlS proJect
on its surround1ng neighborhood. Aspects of this project. eve~
1n thlS substant1a1ly mod1fled verslon, do 1n fact raise
d1fflcult and complex questlons. Absent pressure of an eX1st1~g
contract and the resulting lawsuit, lt lS unl1kely that staff
would be recommending that th1S proposed development proceed in
the form currently under conslderation.
Howevery 1n review1ng
the recommendat1on of staff, 1t lS lmportant to consider:
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the current status and recommendatIons for continued operatIon of
the Cltyw~de Housing Acqu~sItlon and RehabilitatIon Program.
1. ActIons Taken To Date To EstablIsh HousIn9 Trust Funds
On December 13, 1983 the Redevelopment Agency adopted ResolutIon
Number 378 (RAS) establlshlng the Downtown Redevelopment ProJect
Low and Moderate Income HousIng Trust Fund. In dOIng so, the
Agency made the fIndIngs requIred by CalIfornIa Redevelopment Law
that increasIng and ImprovIng the community's supply of afford-
able low and moderate Income housIng would be of benefit to the
Downtown Redevelopment ProJect. By resolutIon, the CIty CouncIl
concurred wIth the Agency fInding.
On May 8, 1984 the Redevelopment Agency approved ResolutIons 380
(RAS) and 381 (RAS), fIndIng that IncreaSIng and Improving the
supply of affordable low and moderate Income housIng would be of
benefIt to the Ocean Park Redevelopment ProJects l(a) and l(b).
Again, the CIty CouncIl concurred in fIndIng off-SIte housIng to
be of benefIt to the redevelopment' projects. These resolutIons
invoked the provIsIons of Health and Safety Code SectIon 33334.2
perml tt Ing use of tax i ncremen t revenues for low and moderate
Income housIng and enablIng the Redevelopment Agency to approprI-
ate and allocate funds from tIme to tIme to provide such housIng.
2. ActIons Necessary To EstablIsh FY1984-85 HousIng Trust Funds
In order to use the redevelopment tax-increment funds approprl-
a ted for var ious hous I ng proJects 1 n the FY 198 4-8 5 budget, the
Redevelopment Agency must approve resolutIons for each of the
redevelopment proJects as follows:
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Attachment A. Downtown Redevelopment ProJect:
Attachment B. Ocean Park l(a) Redevelopment ProJect:
Attachment C. Ocean Park l(b) Redevelopment Project:
Total:
$1,@00,liHHJ
$ Hl4,490
$ 282,5HJ
$1,387,000
These funds were approprIated In the FY1984-85 budget for the
following housIng programs and actIvItIes:
CItywIde HousIng AcqUIsItion/RehabIlItatIon
Congregate SenIor HousIng:
Core Funding-CommunIty CorporatIon of Santa
Total:
Program: $991,496
$285,000
MonIca: $110',50'4
$1,387,000'
The resolutions made In May 1984 dId not specIfIcally establIsh
the Ocean Park Redevelopment ProJects HOUSIng Trust Funds. There-
fore, the attached resolutIons establIsh these Trust Funds.
AdoptIon of these resolutIons \'1111 provIde the legal authorIty
necessary to expend the taX-Increment funds budgeted for these
hOUSIng programs. The CIty CounCIl must also approve resolutIons
concurrIng WIth the findIngs that these expendItures are of bene-
fIt to the redevelopment proJects.
3. Approval of Contract for CommunIty CorporatIon Core FundIng
In addl tIon to adoptIng the resolutI-ons, 1 t IS also necessary to
approve and execute a contract WIth CommunIty CorporatIon of San-
ta Monica to use the funds budgeted for CommunI ty Corporation
core fundIng, and to use the "Earnest i10ney" component of the
CItYWIde HOUSIng Trust Fund.
The FY1984-85 budget Included
$lHY,504 In core
fundIng for CommunIty CorporatIon of Santa
MonIca, WIth an addItIonal $54,428 from CommunIty Development
Block Grant funds.
These funds WIll support CommunIty Corpora-
tIonls hOUSIng actIVItIes WIth the CItYWIde HOUSIng AcqUISItIon
and RehabIlitatIon Program (CHARP) and the PICO NeIghborhood
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Housing Trust Fund. A standard grantee contract for these operat-
Ing funds IS attached for Agency approval.
The contract Includes all approprIate provIsions of state law
applIcable to redevelopment agency actIvItIes and the usual
federal and CIty requirements IncludIng grants management,
pOlitIcal activitIes and equal employment opportunIty. The grant-
ee workplan and budget has been revIewed and approved by staff
uSIng the same crlterla that were applIed to all other CommunIty
Development grantees. The contract terms and workplan were ap-
proved by the CIty CounCIl In its reVIew of the separate CommunI-
ty Development Block Grant contract for $54,428 In operatIng
funds on August 14, 1984.
The Agreement also Includes a $75,0130 grant for earnest money
depOSIts to be used through the CItYWIde HousIng AcqUIsItIon and
RehabIlItatIon Program, as descrIbed In the follOWIng sectIon.
4. CitYWIde HousIng AcqUISItIon and ~ehabllitatlon Program
The FY1984-85 CItYWIde HOUSIng AcqUISItIon and Rehablllatlon Pro-
gram (CHARP), totallIng $991,496, WIll be used to make deferred
loans for the acqUISItIon and rehabilItatIon of low and moderate
Income hOUSIng. The program gUIdelInes and operatIng procedures
were approved by the Redevelopment Agency on December 13, 1983.
However, the Department of CommunI ty and EconomIC Development
staff are currently reVIeWIng these program gUIdelInes to IdentI-
fy pOSSIble changes that WIll streamlIne the processes and pro-
VIde suffICIent fleXIbIlity to use program funds effICIently. A
report WI th any recommended changes WIll be subml tted to the
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Agency wIthin sixty days. Any projects approved for loan prior to
the approval of recommended changes wIll be handled under the
eXIstIng guidelInes and presented IndIvIdually to the Agency for
approval.
It IS recommended that PY1984-85 CHARP program be used In the
same types of fund categorIes as those approved last year. The
amounts and uses of these funds are descrIbed below.
o Earnest Money DeposIts - $75,000
These funds will be provIded under contract to Community Cor-
poratIon of Santa MonIca In a lump sum to be deposIted Into
an Interest-bear 1. ng account and used to optlon sItes. The
a ttached contract budget Includes these funds, and perml ts
CommunIty CorporatIon to use them as deposIts or optIons for
the purchase of bUIldIngs to be rehabIlItated under the CIty-
WIde HousIng AcqUIsItion and RehabIlitatIon Program.
These funds may also be used to, purchase optIons for bUIld-
ings or vacant land that wlll not recelve further SubsIdIes
from the CHARP program, but that WIll be used In housIng pro-
grams that meet the same low and moderate Income benefIt and
affordablllty reqUIrements, such as the CalIfornIa Rental
HousIng ConstructIon Program. All optIons or purchase agree-
ments obtaIned WI th these funds must be assignable to the
Redevelopment Agency upon call.
o Predevelopment Funds - $50,000
These funds are set aSIde and consldered available to fund
necessary predevelopment expenses IncludIng archItectural
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fees, appraisal fees, and loan commItment fees that cannot be
obtaIned on a contIngency baSIs. These funds wlll be Incorpo-
rated Into the program loan upon closIng.
o Long Term Deferred Payment SubordInate Loans - $866,496
These funds wIll be provIded at the close of escrow, upon
satlfactIon of all program requIrements, to make up the dIf-
ference between total development costs and the debt serVIce
capac1ty of the proJect.
In addItIon-to approval of the "Earnest Money" contract, and of
the use of funds 1n the above categorIes, It 1S recommended that
In order to be conSIstent WIth current accountIng practIce, the
Agency reapproprIate the $157,500 In remaln1ng 1983-84 funds from
the FY 1983-84 operat 1 ng account to the capItal proJect account
establIshed In the 1984-85 budget for the CItYWIde HOUSIng Trust
Fund.
FINANCIAL AND BUDGETARY IMPACT
The Fiscal Year 1984-85 budget appropr 1 a ted redevelopment tax
increment funds for the provisIon of low and moderate income
hOUSIng. Therefore, the adoptIon of the attached resolutIons and
approval of the grantee contract wIll have no addItIonal budget-
ary Impact.
In addItIon to adopting the resolutIons for FY1984-85 funds It IS
recommended that the Agency reapproprIate the funds remainIng In
the FY1983-84 Downtown HOUSIng Trust Fund ($157,500) from the
Downtown Redevelopment ProJect Fund balance to the FYl984-85
CItYWIde HOUSIng Trust Fund, Account Number 16-720-264-00'0-942.
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The total amount appropr1ated to the CItywlde HousIng Trust Fund
from both fIscal years ($1,148,996) \"'111 then be shown In the
correct FY1984-85 CapItal Improvements Account.
The followIng chart summarlzes the fundIng sources and FY 1984-85
approprIations Included In these resolutIons:
FY1984-85 APPROPRIATIONS
CHARP * Conqregate Senlor Core Fundina TOTAL
Housina ComMunity
Corporation
FY1984-85 Budqet
Downtown
(16 Fund) 659,748 285,000 55,252 LOOO,OOD
OP (1a and Ib) 331,748 0 55,252 387,000
(18 Fund)
TOTAL 991,496 285,000** 110,504 1,387,000
FY1983-84 Budqet***
Downtown (16 Fund) 157,520
GRAND TOTAL
$l,148,996
$285,000
$110,504
157,520
$1,544,500
*
CHARP: Citywide Housing Acquisitlon and Rehabilltatlon Program
**
Appropriation of $300,000 also included $15,000 of Gi1pln Vltale
Funds thnt do not require an authorizing reso1utlon.
***
Authorlzing resolution and fund1ngs of benefit made 12/13/84
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RECOMMENDATION
It IS recommended that the Redevelopment Agency:
1. Approve the attached ResolutIon of the Redevelopment Agency
of the CIty of Santa MonIca allocating $1,000,000 Into the
Downtown Redevelopment Project Low and Moderate Income Hous-
Ing Trust Fund to provIde funds for approved housIng programs
for 1984-85,and fIndIng the provisIon of such housing to be
of benefIt to the Downtown Redevelopment Project.
2. Approve - the attached ResolutIon of the Redevelopment Agency
of the CIty of Santa MonIca establIshIng the Ocean Park Re-
development ProJect l(a) Low and Moderate Income HousIng
Trust Fund, allocatIng $104,490 Into saId fund to provIde
funds for approved 1984-85 housIng programs, and findIng the
prOVIsIon of such hOUSIng to be of benefIt to the Ocean Park
Redevelopment ProJect l(a).
3. Approve the attached ResolutIon of the Redevelopment Agency
of the CIty of Santa Monica EstablIshIng the Ocean Park Re-
development Project l(b) Low and Moderate Income HOUSIng
Trust Fund, allocatIng $282,510 Into saId fund to provIde
funds for approved 1984-85 hOUSIng programs, and fIndIng the
prOVIsIon of such hOUSIng to be of benefIt to the Ocean Park
Redevelopment ProJect l(b).
4. Approve the attached Agreement By and Between the Redevelop-
ment Agency of the CI ty of Santa MonIca and CommunI ty Cor-
poratIon of Santa MonIca, IncludIng both core fundIng and
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UEarnest Money" funds, and author lze the ExecutIve Director
to execute the Agreement.
5. Approve the use of funds for lIEarnest MOneYu deposits,
predevelopmen t loans, and deferred loans through the
CItywide HousIng AcqUIsItIon and Rehabl1Iatlon Program, as
descrIbed In thIS report.
6. Approve the reapproprIatIon of $157,500 remaInIng in the
FY1983-84 CItywIde HOUSIng Trust Fund, from the Redevelopment
Project Fund balance Downtown to the FY1984-B5 CItYWIde Hous-
Ing Trust Fund In the CapItal Improvements Budget as Account
l6-720-264-0@0-942, as descrlbed 10 thIS report.
It IS recommended that the CIty CouncIl:
1. Approve the attached Resolutlon of the CIty CouncIl of the
CIty of Santa MonIca flodlng the use of funds In the Downtown
Redevelopment Project Low and Moderate Income HOUSIng Trust
Fund to be of benefit to the Downtown Redevelopment ProJect.
2. Approve the attached Resolution of the CI ty CouncIl of the
CI ty of Santa MonIca fl nd 1 n9 the use of funds In the Ocean
Park l(a) Redevelopment ProJect Low and Moderate Income Hous-
109 Trust Fund to be of benefl t to the Ocean Park 1 (a) Re-
development Project.
3. Approve the attached ResolutIon of the CIty CouncIl of the
CI ty of Santa MonIca fIndIng the use of funds In the Ocean
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Park l(b) Redevelopment Project Low and Moderate Income Hous-
lng Trust Fund to be of benefIt to the Ocean Park l(b) Re-
development ProJect.
Prepared By:
Ann Sewlll, ActIng Houslng Program Manager
Department of Communlty and EconomIC Development
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