SR-414-003 (9)
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City council Meeting 11-11-86
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Santa Monica, California
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NOV 11 1986
STAFF REPORT
TO:
city Council
FROM:
City Staff
SUBJECT:
Ordinances For Introduction and First Reading
Pertaining to Establishment of Certain Limitations
For The Redevelopment Plans For The Ocean Park lea),
Ocean Park l(b) Pacific Ocean Park and Downtown
Redevelopment projects.
Introduction
This Staff Report transmits ordinances for introduction and
first reading pertaining to the Redevelopment Plans for each of
the existing Redevelopment Project Areas in the City of santa
Monica.
Backqround
The California Legislature enacted Senate Bill 690, adding
Section 33333.4 to the community Redevelopment Law, codified in
the Health and Safety Code.
This new statute requires every
legislative body which adopted a final redevelopment plan prior
to October I, 1976, containing provisions for the division and
allocation of taxes levied upon taxable prpoerty within a
redevelopment proj ect area (pursuant to Health and Safety Code
Section 33670), to adopt an ordinance on or before December 31,
1986 which establishes the following:
(1)
The maximum number of dollars of taxes
( IItax
incrementtl) which may be divided and allocated to the Santa
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Monica Redevelopment Agency (hereinafter the "Agency")
pursuant to the particular Redevelopment Plan.
(2) A time limitation on the establishment of any loans,
advances and indebtedness to be repaid from tax increment
dollars, to finance in whole or in part the particular
Redevelopment Project. No loans, advances or indebtedness
to be repaid from the allocation of taxes shall be
establ ished or incurred by the Agency beyond such time
limitation. However, such loans, advances and indebtedness
may be repaid over a period of time which extends beyond
the time limitation which is set.
(3) A time limitation (not to exceed 12
adoption of the ordinance), for commencement
domain proceedings to acquire
particUlar Project area.
These limitations may only be changed or extended pursuant
to amendment of the particular redevelopment plan, in the manner
required by law.
years from
of eminent
property
within
the
Discussion
Health and Safety Code section 33333.4 requires the
above-described limitations be adopted by ordinance, on or prior
to December 31, 1986.
These same limitations are already required for
redevelopment plans adopted after October 1, 1986.
Each of the Santa Monica Redevelopment Agency t s existing
redevelopment plans (Ocean Park 1 (a), Ocean Park 1 (b), Pacific
Ocean Park, and the Downtown Plans) was adopted prior to October
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1, 1976, thereby requiring compliance with Health and Safety Code
section 33333.4.
The limitation on receipt of tax increment which may be
divided and allocated to the Agency is based upon calculations
which include existing obligations (bonds, loans and other
indebtedness); budget amounts necessary for actual and proposed
developments; programs and activities necessary to carry out and
complete each redevelopment plan; indebtedness incurred after
adoption of the ordinance; twenty percent (20%) set aside for low
and moderate incoming housing trust funds; interest and
inflation factors; and contingencies for future development
projects, programs and activities, including unknown problems and
costs.
The time limitation for establishing or incurring new debt
to finance a particular redevelopment project, including programs
and activities to accomplish the goals of the particUlar
redevelopment plan, must take into consideration the particular
redevelopment plan's termination date as well as outstanding debt
which has a payment date extending beyond the plan's expiration
date.
In order to assure maximum flexibility in carrying out the
goals of each Redevelopment Plan, the time limitation for
commencing eminent domain proceedings to acquire property within
each Project Area has been set at the maximum allowable of twelve
years. This twelve year period is measured from the date of
adoption of the ordinance setting such limit.
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BUdqet/Financia1 Impact
The adoption of these required ordinances will establish a
maximum ceiling on the amount of tax increment dollars which the
Agency will be entitled to receive and utilize from each of the
affected redevelopment project areas.
Recommendation
It is respectfully recommended that the attached four
ordinances pertaining to establishment of required limitations
for the Redevelopment Plans for the Ocean Park l(a), Ocean Park
l(b), Pacific Ocean Park and the Downtown Redevelopment Projects,
be introduced for first reading.
Prepared By: Robert M. Myers, City Attorney
Linda A. Moxon, Deputy City Attorney
Kip Rudd, Acting Economic Development Manager
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