SR-414-003 (11)
CA:RMM:lmd2~8/h~W
City Council Meeting 7-29-86
(!(!~-<
117'- 00 I~ JUl2 9 \Ii
san~ Monica, California
STAFF REPORT
TO:
Redevelopment Agency
FROM:
City Staff
SUBJECT:
Adoption of a Resolution by the Santa Monica
Redevelopment Agency Authorizing the SUbmission
of Proposed statements of Existing Obligations
and Programs Pertaining to the Ocean Park
Redevelopment Projects No. l(a) and No. l(b) and
the Downtown Redevelopment project to the city
Council and the state Department of Housing and
Community Development and Authorizing a Public
Hearing on Such Statements
Introduction
This Staff Report transmits a resolution ("Resolutionlt) of
the Santa Monica Redevelopment Agency (UAgency") which would
authorize submission of the attached Statements pertaining to the
Agency I s existing obligations and programs for the Ocean Park
Projects No. l(a) and No. l(b) and Downtown Redevelopment Project
to the city council and the California Department of Housing and
Communi ty Development. The Resolution also authorizes a public
hearing on such statements to be set by the Agency's Executive
Director.
It is Staff's recommendation that the Agency adopt the
attached Resolution allowing submission of the statements as
described herein.
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dt'~1.:3
Background
The state Legislature recently enacted Assembly Bill 265
(effective January 1, 1986) which requires redevelopment agencies
to set aside twenty percent (20%) of tax increment proceeds from
any redevelopment project adopted prior to 1977 for placement
into a Low and Moderate Income Housing Fund ("Fund"). This new
legislation, codified in section 33334.6 of the California
community Redevelopment law (Health and Safety Code Section 33000
et seq.) also allows a redevelopment agency the flexibility to
deposit less than the required 20% into the Fund in a particular
year if certain action is taken on or before September 1, 1986.
The required action is the approval of a resolution adopting a
"Statement of Existing Obligations" and/or a "Statement of
Existing Programs." This one time option to adopt either or both
of the statements for the Ocean Park and Downtown Redevelopment
projects, would give the Agency the right, but not the
obligation, to set aside less than the required 20% of tax
increment. However, if the statements are not adopted prior to
the September 1, 1986 deadline, the Agency would not retain such
flexibility, and it will be required to set aside 20% of the tax
increment it receives from each of the respective Redevelopment
project areas, irrespective of its existing debt or planned
projects.
O.iscussion
If the statements of Existing Obligations are adopted
pursuant to a duly authorized public hearing, then the Agency
would be permitted in any fiscal year to deposit less than the
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20% of tax increment from each Redevelopment Project into the Low
and Moderate Income Housing Fund, provided the Agency finds that
the difference between the amount actually deposited and the
normal 20% requirement is necessary in order to make payments
under existing obligations of amounts due or if such funds are
required to be committed, set aside, or reserved by the Agency
during that fiscal year and are used by the Agency for those
purposes.
"Existing obligations" include principal of, and interest
on, loans, monies advanced to, or indebtedness (whether funded,
refunded, assumed, or otherwise) incurred by the Agency to
finance or refinance in whole or part any redevelopment project
existing on and created prior to January 1, 1986, and contained
on the relevant statement of Existing Obligations.
The adoption of the statement of Existing Programs for the
Downtown Redevelopment Project would allow the Agency, in each
fiscal year until July 1, 1996, to deposit less the 20% tax
increment from the Downtown Redevelopment Project if the amount
required for projects listed on such statement are necessary in
order to provide for the orderly and timely completion of the
Downtown Redevelopment Plan. The projects must be activities
approved by the Agency prior to January l, 1986, which are
contained on such statement of Existing Programs adopted by
resolution after a duly noticed public hearing.
The Agency' s decision to adopt these statements is a one
time selection which gives the Agency the right and flexibiilty
to set aside less than the required 20% tax increment into the
Low and Moderate Income Housing Fund. It is emphasized that
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neither the procedural action of submitting these statements of
Existing Obligations and Programs, nor the actual adoption of
such statements, obligates the Agency to deposit less than the
20% tax increment into the Low and Moderate Income Housing Fund.
In fact, the Agency may deposit, to the extent funds are
available, amounts in excess of the 20% tax increment if it so
desires. However, it is also stressed that existing obligations
and programs of the Agency should be given prompt attention and
funding to adequately satisfy such obligations and programs for
the benefit of the entire community, particularly the Ocean Park
and Downtown Redevelopment Project Areas.
The attached Resolution authorizing submission of the
attached Proposed statements of Existing Obligations and Programs
is a procedural step necessary to allow both the city Council and
the California Department of Housing and community Development to
review such statements and, to authorize a public hearing on the
Agency's proposed adoption of such statements. If this
procedural Resolution is adopted, Agency's staff would transmit
the statements to the City council and the California Department
of Housing and Community Development, the Executive Director
would set the date, time, and place of a public hearing, and
notice of such public hearing would be published at least once a
week for two successive weeks prior to such pUblic hearing.
BUdqet(Financial Impact
There is no budget or financial impact resulting from
Agency approval of this recommended procedural action.
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~ECOMMENDATION
It is respectfully recommended that the Redevelopment
Agency take the following actions:
1. Adopt the attached resolution authorizing submission of
the proposed Statements of Existing Obligations and Programs
pertaining to the Ocean Park and Downtown Redevelopment Projects
to the City council and the California Department of Housing and
Community Development.
2. Authorize the Agency's Executive Director to establish
the date, time, and place for a public hearing on the Proposed
statements of Existing Obligations and Programs for such
redevelopment projects, and to publish and mail notices of such
public hearing in the manner required and established by law.
PREPARED BY: Robert M. Myers, city Attorney
Linda A. Moxon, Deputy City Attorney
Mike Dennis, Director of Finance
Ernesto Flores, Economic Development Manager
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Sec. 33334.6 Report
Si\NTA MONICA REDEVELOPMENT AGENCY,
CITY OF SANTA MONICA, CALIFORNIA
DOWNTOWN REDEVELOPMENT PROJECT
Statement of Existing OblIgations
[Compiled Pursuant to Health & Safety Code Sec. 33334.6(f) (4)]
\,
.
STATE~ENT OF EXISTING OBLIGATIONS
~HERE~S. the Santa ~onica Redevelopment ~gency, C1ty
C,,11fm. nla (!:he ""-geney") 1S engaged 1n ae!:l "1 t1es necessary
"eiroc)' out the Redevelop~lent PLin for the Do~mto'..".n Redevelopmept
of Santa Monlea.
and approprlate r:o
Project Area, and
',TBEREAS. In order to carry aut the orderly completlon of the Redevelopf.'en::
Plar _ the Agency has herer:ofor approved eertaln specl flC publlC and prl"ar:e
PH'] ects as here1nafter descr1bed ln varl0US resolur:lons. agreelrents and relar:ed
doc''',ents WhlCh are legally blndlog ob11gatlons of the Agenc)', and
',HEREAS, the Agency desires t:o depoS1t less Chan the ta": 1ncrement amO'Jnt:
provlded for In Sectlon 33334 & of the California Co~munity Redevelopment Law 10tO
a LeY' and Hoderate Income Housing Fund estab11shed for the Dm,mto1.'O Redavelopment
Project hrea, as a result of prevlous obligat1ons 1ncurred by the Agency in
1mp1efienC1Pg the Redevelopment Plan in order to provlde for the orderly and tiFe1)'
cOLliple~ion of t.he Do~mto'~'Tl Redevelopment Project Area, and
h~ERE~S, the Agency desires Co adopt a resolution approvlng this Statement of
EXlstlng Gbllgat10ns to set forth lts present obllgat10ns lncurred ln r:r-e
1~'p1ementatlon of !:he Downtot'n Redeve10pwent ProJ ect ~rea prlor to January 1,
1986, and
~-l!lEREI\.S, the Agency beheves that the redevelopn:.ent pursuant to the
Rede"elopll'ent Plan contl-flueS to be Bod 1S ln t.he best lnteresr:s of the C1ty of
Santa llon1ca and health, safety, ",orals and ...elfare of 1ts res1dents. and 1n
accord w1r:h the pub11c purposes and provls10ns of app11cable State and local law
.:ird requl relnents
NOH, THEREFORE, the Santa ~fonica Redevelopment. Agency, Clt.] of Santa Monlca,
Californla declares t.he follo,"1ng obligatlons of
Debt.
Lderc~.flc.a.tlDn
AlT'ount
~llnu.al Payments
Date of Dlschar~e
(a) Parklng Lease
R"ver-ue Bonds
$26.239,818
Va~10US amounCs Dec 1, 2008
$220,000 to $1,115,000
ib) t:o;:e Payable to $ 1,219,388 $ 1,219,388
City of Santa }]onlca
(c) :.Jote Payable to $ 7,439,219 :;: 7,439,219
C~tv of Santa tlonlca
(d) Houslng Trust Fu!"',d :;: 1,132,969 Va-r-~ous amounts
Dee 31, 1986(h)
Dec 31. 1986(1'.)
June 30, 1987(h)
(e) "1t.iile-Gl1p1n
AF.rE08~ent:
$ 2,860,000(1) $
130.000
June 30, 2009(h)
(f) ?ark1ng Structure $11,32l,860(J) $
Reimbursement ~greernert
514,600
June 30, 2009(h)
(g) DOkntow~ Cooperation $16.187,626
Re1~bursement ~greernent
Various alT'ounts
December 31,1990
Total
$66,400,880
~~ot:es
(a) TD finance pDrt20n of the cost of park1ng strucr:ures
(b) Land acqu1sir:ion. construc~ion cos~s, relocation costs and operation costs
(c) For land transfer
(d) low and Moderate Ineoroe Housipg Trust Fund
(e) Low Income Hous1ng Fund
(0 Agreer.>ent to reill'burse C1ty of Santa HOiuea for portion of lease amount of
p~rk1ng structures
(g) Tblrd Street Hall Improvenlents
(h) Date of dlscharge depends on funds ava11abl11ty Dates Il'ay be extended hy
actlon of C1ty Counc1l and ~gency
(i) ;>'l'ounr: "las est1mated as follows 1986/87 Budgeted All'OUn;C t1mes 22 yedL,
($130,000 X 22 - $2,860,000)
<J) ~mount was est1mated as follOl-ls 1986/87 Budgeted Amount: tunes 22 yeaLs
($514,630 x 22 - $11,321,860)
soeo
Sec. 33334.6 Report
SANTA YIONICA REDEVELOPMENT AGENCY,
CITY OF SANTA MONICA, CALIFORNIA
OCEAN PARK PROJECT NO. 1(a)
Statement of Existmg Obligations
[Compiled Pursuant to Health & Safety Code Sec. 33334.6(f) (3)]
STATEMENT OF EXISTING OBLIGATIONS
UHERE.;S, the Santa !fonlea Redevelop",ent ~gency, C1ty of S..'1.ta Mon1ca,
Ca11fornia (the "Agency") lS engaged in aetiVll:1e9 necessary and appropriate
to carry out the Redevelopment Plan for the Ocean Park IA Redeveloprent
Project Area, and
h~ERE.;S, 1n order to carry out the orderly complet10n of the Redevelopreen:
Plan, the Agency has heretofor approved certa1n spee1f1.c publ1.c and prinate
projects as rere1nafter descr1bed 1n var10US resolut1ons, agreements and
related docurrents wh1.ch are legally b1.nd1ng obl1.gat1ons of the Agerey, and
WHEREAS, the ~gency des1res to depos1t less than the tax 1ncrement awount
provlded for in Section 33334 6 of the Ca11forn1a Cow~unlty Redevelopment Law
1utO a Low and lIoderate Ircome Hous1ng Fund establlshed for the Ocean Park 1.;.
RedevelopTent ProJ eCr: ';rea, as a result: of prev1.ous obligations incurred by
the ".gency 1n 1.Inplementlrg the Redevelop-nent Plan 1n order to prov1de for tl'"
o~der1y and r:1me1y co-np1et:lon of ~he Ocean Park l~ Redevelopment Project area,
ii"d
WHEREAS, the Agency
of EXlstlng Ob11gat10ns
:lmp1ementation of t'le
January 1, 1986, and
des:lres to adopt a resolut1.on approv1ng r:his Statement
to set forr:h 1ts present obligations lncurred ln the
Ocean Park I". Redevelopment Project Area prior to
wHEREAS, the Agency belleves r:hat the redevelopment pursuant to tre
Redevelopment Plan cont1nues to be and is in the best interests of the C1ty of
Santa ~!oP1ca and health, safety, reorals and ""lfare of 1. ts res1denr:s, and 1n
accord w1th the public purposes and provisions of app11cable State and local
law and requlr6ruen~s
NOH, THEREFORE, the Santa Ilon1ca Redevelopment Agency, Cl ty of Sanr:..
~on1ca, Callforn1a declares the follow1ng obl1gat1ons of
Debt
Identlflcatlon
Amount
(a) Note Payable to $ 1,579,398
Clty of Santa 1I0'1ica
(b) Kate Payable 1:0 $ 1,018,300
Clty of Sapta :!on1ca
(c) Note Payable to $ 766,590
Cicy of Santa llonica
(d) Note Payable to $ 278,585
C:lr:v of Santa Hon1ea
(e) .i\dvanca from City $ 374,041
of Santa HOI'ica
(f) Ocean Park Tax $10,593,469
.>,.110eation Bonds
i~) Hous1ng Trust Fund $ 903,807
(h) DIP Cooperat10n & $ 1,365,952(1)
Reimbursewent A~reement
(1) OIP Off-Site Housln~ $ 280,88l(m)
(j) Rehab1lltation of $ 2,810,500(n)
Off-51te Hous1ng Unlts
4.nnual Payrr-ents
Date of Discharge
$1,579,398
DeceFber 31, 1986(k)
$1,018,300
December 31, 1986(~)
$ 766,590
December 31, 1986(k)
$ 278,585
December 31, 1986(k)
$ 374,041
December 31, 1986(k)
Various amounts October 31, 2006
$69,350 to $452,600
Var10us arounts Jure 3D, 1987 (ki
$1,365,952 Jure 30, 1987 (k)
$ 280,881 June 30, 1987 (ki
$ 56,210 June 3D, 19B7 (k)
plus annual
adJustIi'.ents for
CPI increases
Total
$19.971,523
}-otes
(a) Redevelopment and operat1ons costs (owed to CDBG Fund)
(b) Operatiop costs
(cl Portlon of Federal project closeout costs
(d) Port1on of Federal project closeout costs (o~ed to CD3G Furd)
(L) Advance for Ocean Park L1brary Improvements
(f) To f1nance flnal phase of Ocean Park Development Project
(g) Lo~ and Moderate Ircome Housing Trust Fund
i~\ Ocean Pa1k Beac~ l~?rOve~encs and on-s1te park
\~) Gouncll and Agency have detenTllned sltes to be of benef~t to Ocean Park
ProJ ect
(J) Lease of rehab111tated unlts at 175 Ocean Park Boulevard
(~) Date of dlsc~arge depe~ds on funds aV811abl1lty Dates may be extended by
actlon of C1ty Counc1l ard Agency
(1) Or181na1 debt of $3,760,030 less pay~ents of $2,394,078 equals June 30,
1986 balance of Sl,365,952
,,,) Orlglnal debt $383,608 less pay~ents of $102,727 equals 6/30;86 balance of
$280,881
(~) Amo~nt of debt WIll be 1ncreased annually based on CPI changes Current
year debt $56,210 X 50 years equals $2,810,500, total estur.ated debt
(e)(C1USIVe of futtlTe annual CPI iT.creases)
soeo
Sec. 33334.6 Report
SANTA !\IJONICA REDEVELOPMENT AGENCY,
CITY OF SANTA MONICA, CALIFORNIA
OCEAN PARK PROJECT NO. l(b)
Statement of EXIsting Obligations
[Complied Pursuant to Health & Safety Code Sec. 33334.6(f) (3)]
STATEIIENI OF EXISTING OBLIGATIONS
'....HEREAS, the Santa !loniea Redevelopment Agency, C1ty of Santa Mon1cd,
California (the "Agency") is engaged in activities necessary and appropriate
to ca>:ry out the Redevelopment Plan for the Ocean Park Iii RedEveloprr-ent
Project AreaJ ard
w~ERE~S, 1n order eo carry out the orderly ccrnplet10n of the Redevelo?menc
Plan, ere "gency l'as hereto for approved cerca1n spec1f1c pub11c and pr1vate
projects as hEre1nafter des~r1bEd 1U Var10US resolut1o~s, agreeTents a,d
1elated docunents '",ueh are legally b1nd1ng oblq:o;at1ons of the Agency, and
wHEREAS, che Agevey desires to deposlt less than the tax lncrewent amount
provlded for In SEctlon 33334 6 of the Callfon'la Comrnuulty Redevelopment L""
inCo a Low and Moderate Ineorre Houslng Fund estab11shed for the Ocean Park ]B
Redevelopr.:ent ProJ ect Area, as a result of prev10us obllgat1ons 1neurred by
the AgErcy in 1~plemePtlng the Redevelop~ent Plan in order to provide for t~2
oLderly and t1ITely co~pletlon of the Ocean Park lB Redevelopment ProJecc Area,
a~d
~11ERE~S, the Agapcy
of EXlstLng Obligations
1.plementatlon of the
January 1, 1986, and
desires to adopt a resolut1on approv1ng th1s Statarnert
to set forth 1 ts present obI igatlons incurred in the
Ocean Park lB Redevelopf"ent: Project: Area prior to
\"HE:RE"S, the Agercy believes that the redevelopment pursuant to the
Rcdcvclopm~nt Plan cont~nu~~ to be and 15 1n ~he best 1ntcr~sts of the C~ty of
S"nta l10nlea and health, safet:y, C'orals and ~"elfare of 1 t:s res1dents, ar-d 1-
accord '"it:h the publlC p:.lrposes avd pro"lsl0nS of appl1cable State and loc"l
la~ and requlrements
NOW, THEREFORE, the _ Santa ,'Ion1ca Redevelopment Agency, City of Septa
von1ca, Ca11fornla declares the follow1ng obligatlons of
DEbt
Isentlf1cat:lon
AMount
~nnual PaYMents
Dace of Dlschar~e
(a) Note Payable to $
C1tV of Santa Monica
58l.,161
$
584,161
Dece'nber 31, 1986(k)
(0) Kate Payable to $ 376,632
Cu:y of Sarta ".{onica
(c) Not:e Payable to $ 283,533
C1I:Y of Santa Monica
(d) Kate Payable to Clt:y $ 103,038
of Santa ~lon~ca
$
376,632
Decewber 31, 1986(k)
$
283,533
December 31, 1986(k)
$
103,038
December 31, 1986(k)
(el Advance from elty
of Santa }Iorlca
$
138,344
s
138,344
Decef"ber 31, 1986(~)
tf) Ocean Park Tax
~lloeaclon Bonds
$ 3,918,133 Var10US amounts Oct I, 2006
925,650 to 9167,400
$ 134,672 Varl.OUS &lfOunts June 3D, 1987 (k)
$ 505,215 (1) $ 505,215 June 30, 1987 (k)
(~) Hous~p~ Trust Furd
(n) OIP Cooperatlon &
Re1mbursement A~mt:
il) alP Off-S1te Housin~ $
103,887(m) $
103,887
June 30, 1986
(k)
(J) Rehabi11tatlou of $ 1,093,500(n)
Off-S1te HouslPg Unlts
$ 20,790 June 30, 1987
plus annual
adJust,renes for
cpr lPcreases
(k)
Total
$ 7,441,115
Xo;:es
(a) Redevelopment and operat10rs costs (o~ed to CDBG Fund)
(b) Operat~on coses
(e) Poreion of Federal project closeout costs
(c~ Port~on of Federal proJece closeout costs (owed eo CDBG Fund)
(e) "dverce for Ocean Park L10rary IiI'pro"e'l1eres
(f) To f1nance final phase of Ocean Park De"elop~er.t Project
(g) Low and ~oderaee Inco~e Hous~ng Trust Fund
(r) Ocean Park Beach 1mprovements and on-s~ee park
(~) Counc~l and Agency have determined sites ~o be of benefit to Ocean Park
Project
U) Lease of rehabihtated un1ts at 175 Ocean Park Bouleuard
(k) Date of discharge depends on funds availab11ity Dates may be extended by
action of City Counc11 and Agency
(1) Original debt of $1,390,696 less pa}~ents of $885,481 equals June 30, 1986
balance of $505,215
(0) Original debt of $141,883 less pay~ents of $37,996 equals 6/30/86 balance
of $103,887
(n) AIflount of debt "'111 be increased annually based on CPI changes current
year debe $20,79C x 50 equals $1,093,500, total estimated debt (e){clus1nB
of future annual CPI increases)
SO~G
Sec. 33334.6 Report
SANTA MONICA REDEVELOPMENT AGENCY,
CITY OF SANTA MONICA, CALIFORNIA
DOWNTOWN REDEVELOPMENT PROJECT
Statement of Existing Programs
[Compiled Pursuant to Health & Safety Code Sec. 33334.6(f) (3)]
STATEMENT OF EXISTING PROGRA~S
WHEREAS, the Santa Monica Redevelopment Agency, City of Santa Monica,
California (the ftAgency") is engaged in activities necessary and appropriate to carry
out the Redevelopment Plan for the Dmvn town Redevelopment Project; and
WHEREAS, the Agency desires to deposit less than the tax increment amount
provided for in SectIon 33334.6 of the CalIfornia Community Redevelopment Law into
a Low and Moderate Income Housing Fund as a result of the obligations it has approved
in connection with various projects, programs and activities in order to provide for the
orderly and timely completion of the Redevelopment Plan as it existed prior to
January 1, 1986; and
WHEREAS, in order to carry out the orderly completion of the Redevelopment
Plan the Agency has heretofor approved certain specific public and private projects,
programs and activities, as hereinafter described which constitute evidence of the
Agency's intent to implement the Redevelopment Plan; and
WHEREAS, the Agency believes that the redevelopment pursuant to the
nm..mtm'ltl Redevelopment Plan continues to be and is in the best interests of
the City of Santa Monica and the health, safety, morals and welfare ot its residents,
and in accord with the publIc purposes and provisions of applicable State and local law
and requirements.
rolOW, THEREFORE, the Santa Monica Redevelopment Agency, City of Santa
1\fonica, California declares the following to be projects, programs and activities
approved prior to January 1, 1986 in connection with the Down tmvn
Redevelopm en t Project:
1. Thlrd Street nail Parklng and PubilC ImproveMents.