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SR-9-A (64) SF JM/HR/c-\ WPMAC\Mam Street 11/7/95 Council Meetmg November 7, 1995 9A .~ TO: FROM: SUBJECT: Mayor and CIty CouncIl Santa Monica, CalifornIa NOV 0 7 1995 NOV 1 4 1995 City Staff Recommendation to approve in concept the Mam Street Streetscape Improvement Plan and fmancmg approach for capItal unprovements and the estabhshment of a new Parkmg and Busmess Improvement Area INTRODUCTION This staff report recommends that the CIty Counell approve, m concept, the following 1) the Mam Street Streetscape Improvement Plan; 2) the capItal fmancmg approach for the proposed streetscape improvements; 3) the creation of a new Mam Street Streetscape Improvement Assessment Dlstnct; and 4) changes to the Main Street Parkmg and Busmess Improvement Area. 11us Staff report further recommends that CIty Councll dIrect Staff to prepare two separate Resoluuons of IntenUon, together WIth all necessary documentatIon and public notIces, for the estabhshment of a MaIn Street Streetscape Improvement Assessment DIStrict and a new Mam Street Parking and Busmess Improvement Area to replace the current Parkmg and Busmess Improvement Area BACKGROUND In 1991, the City CouncIl adopted the Mall Street Master Plan which calls for the creaUon of a pedestrIan onented. vIllage-lIke atmosphere for the MaIn Street DIStrIct wluch extends south from PICO Boulevard to the CIty lumts south of Manne Street. The Plan proposed the estabhshment of gmdehnes to desIgn and Implement a senes of streetscape improvements to address issues such as, pedestrIan traffic and orientation. sidewalk and street WIdth, trash enclosures, street furnIture, hghtmg, landscapIng and sIgnage. Shortly thereafter a Steenng CommIttee was formed to spearhead thIS effort WIth City staff asSIstance. The CommIttee IS compnsed of five neIghborhood reSIdents and five Mam Street property owners and merchants. I 9A J ISf q ~ WI In the fall of 1992, the CIty Implemented a restnpmg plan for Mam Street wlnch reduced the number of through-traffic lanes from two to one m each dlfectIOn, added a bIcycle lane m each dlrectron and retamed two-way left turn lanes at each mtersectIon The restnpmg plan was mtended to meet the Mam Street Plan's recommendatIon to slow traffic on Mam Street and to Improve bIcycle access while streetscape plans were bemg developed. The restripmg plan was analyzed after a SIX month tnal penod to determme the effectIveness and impacts of the new lane configuration. CIty staff determmed that the restnpmg slowed traffic on MaIn Street and reduced daily through-traffic by approxunately 12% DaIly vehIcle traffic mcreased approxImately 10% on both Fourth Street and NeIlson Way dunng thIS period, however, the new Fourth Street on-ramp at the 1-10 opened at the same tune as the restnpmg makIng It impossIble to determine the extent of the mcrease due to the restnpmg alone. Over the past four years, the DeSIgn ReVIew Steenng CommIttee has met on a regular basIS to consIder a vanety of streetscape lIDprovements. The CIty has provided staff support to the Committee and has hIred design and fmancml consultants to assIst the CommIttee. The CommIttee sponsored an extenSIve senes of publIc outreach efforts mvolvmg deSIgn charettes and presentatIons specIfically targeted to reSIdents, merchants and property owners A lIst of slgmficant publIc meetIngs and presentatIons IS attached (Attachment "A") In March, 1995, the CIty hIred Aleles Istanbullu John KalIskI Architects and CIty Design (AUK) to refme the prelImmary plans prepared by earher consultants mto a more comprehensIve set of conceptual plans on a block-by-block basIS (Attachment "B"). The proposed plan mcludes the followmg major features' MedIan: A landscaped medIan WIth flowenng trees to phYSIcally umfy the street and at the same time preserve left hand turns to all cross streets and all publIcly-owned parkIng lots LIghtmg New wmng and SIdewalk lIghtmg usmg the same htstoric street pole desIgn which IS currently III use on Broadway Mamtenance and enhancement of 2 eXlstmg cobra-head lights at intersecuons to enhance hghung levels. Trees. Inftll sidewalk trees, lITlgauon of all tree wells, planung of palms at cross streets. Entrv features: SpecIal entry features demarcatmg major entrances to the Dlstnct at PICO Boulevard, Ocean Park Boulevard and Manne Street. Bus Stop: Enhancement of bus stops With SpeCial pavmg and mformation light box and/or shelter, trash receptacles PavIng: Special pavmg treannent at major entrances to the Dlsmct and crosswalks. tree wells and bus stops. Pubhc Art: A pubhc art program will be mcluded as part of the final deSign of the project. In addttIon, the nnprovement plan calls for Hollister Ave between NeIlson and Mam Street to be reconflgured from one-way eastbound to two-way to Improve access to CIty Parkmg Lot #11. DISCUSSION Results of Recent Pubhc Meeunes In addttIon to the several commumty presentatIons made over the past several years, the plan was again presented by the Design Committee and City staff to the Maln Street merchants on September 13. 1995 and to the Main Street property owners on September 21,1995 The Main Street merchants were generally supportive of the proposed plan. while too few owners attended the September 21 meeung to relIably gauge owner opmlOn PreVIOUS meetmgs of owners. however, have mdlcated a generally supportIve attitude. At the Merchants meetings, several merchants questioned whether the trees planted m the medtan mIght cause vlSlblhty problems for the strorefronts and whether the medIan Inhibited the movement of VISItors from one SIde of the street to the other. CIty staff responded that one of the planrung goals set forth by 3 the DesIgn CommIttee IS to umfy the enure DIStnct and that the medIan serves this functIOn well. Through careful tree selecuon and mamtenance standards, the VISlblhty of the storefronts from one sIde of the street to the other should be mamtaIned Merchants also raised the Issue of the lack of adequate parking for VISItors and customers, particularly dunng the summer weekends when beach-goers occupy many of the avaIlable parking spaces m the DlstnCt. In response, City staff recommended that thIS streetscape improvement process move forward m advance of any future parkmg study, and that a study could be undertaken If the CIty CounCIl dIrected staff to pursue it At least four presentations over the past two years have been made at Board meetmgs and Annual meetmgs of the Ocean Park Commumty Orgamzauon (OpeD). All were conSIstently receIved WIth support and enthusiasm DIrect mml bulletms were sent to all property owners and merchants m the Mam Street dtstnct notIfymg them of the scheduled November 7, 1995 publIc heanng before the CIty Council regardmg the proposed streetscape 11llprovement plans and Assessment Dlstnct CaOltal Fmancine: Aooroach The Mam Street Streetscape Improvement Project IS eSl1mated to cost $4,800,000, which mc1udes construction costs, deSIgn fees, supervision and overhead, contractor profit, contmgencles and future bond Issuance costs. To finance the construction phase, staff proposes to initIally apply the entire V.S EconomiC Development Admmlstral10n (EDA) Implementation Grant of $3,118,900 to the Mam Street project, with the remammg $1,681,100 to be funded by a construction loan from other City funds (whIch may mclude a cornbmatlon of General Fund momes and CDBG funds). Upon completion of the construction phase, 80% of the total project cost ($3.84 rndhon) wIll be refinanced through the Issuance of Assessment Bonds, Certificates of PartlClpatlOn, or snnilar debt 4 instruments. and the Cay construcUon loan Wlll be repaid from debt mstrument proceeds. The remammg 20% of total project cost ($960,OCIO) wIll be considered a grant award to the Main Street project, consistent Wlth City CouncIl's establIshment of the CommercIal Streetscape Fmancmg Program (CSFP) on August 8. 1995. As a result of thIS refmancmg, approxImately $2 I millIon in EDA monies will be aVaIlable for re-mvesUllent m other commercIal streetscape improvement projects, per the terms of the City's CSFP By using the entIre EDA ImplementatlOn Grant as short-term constructlon financmg for Mam Street then refinancmg a large portIOn of the Grant through the Issuance of some debt mstrument, the Clty WIll be able to draw down EDA funds WIthin the requITed time frame of the Grant and recycle the funds to help other commercIal dIstncts whIch are not yet ready WIth approved deSIgn plans. Staff and outside finanCIal consultants have analyzed the annual assessments likely to be reqUIred to pay the annual debt service on the permanent financmg for this project In addmon, staff, consultants and the Mam Street DesIgn GuidelInes Steering CommIttee have prepared a recommended fee structure for the payment of the annual assessments Based on data supplIed by the County Assessor. staff is currently estimatmg the annual assessment to be leVIed agamst MaIn Street property owners as approxnnately $.75 per square foot per year for ground floor commerCIal space, WIth rates at half that level for upper floor commercIal space, and apprmumately $.08 per square foot per year for vacant lots and surface parkmg lots. These prelIminary assumpuons are subject to adjustment once constructlon plans have been finalIzed, bIds obtamed and mdtvIdual property owners have had an opponumty to reVIew the County Assessor's data for accuracy. These prelIminary figures have been receIved favorably by merchants and property owners at publIc meetIngs. Parkmg and Business Improvement Area In addItion to the capItal Improvement project, both staff and the DeSIgn CommIttee are recommendmg the establIshment of a new Parkmg and Busmess Improvement Area (PBIA) to proVIde on-gomg 5 maintenance for the Improvements. It IS unportant that one-time capItal expendnures be matched wnh on-going fundmg for up-keep of the new improvements as well as for marketing and promotion of the Mam Street Distnct. In addItlon to provIdmg enhanced levels of mamtenance for the new streetscape rmprovements, the PBIA could fund marketing and promotion actIVItIes for the Mam Street DIStrIct, sponsor speCIal events, and perform other functIons authonzed under the CIty's enabhng Ordmance Except for the maIntenance actlvIUes, these tasks are SImIlar to those currently earned out by the eXlstIng Mam Street Parkmg and Busmess Improvement Area. The eXIStIng PBIA, winch was establ1shed pursuant to State law, would be replaced with a new PBlA formed pursuant to Ordinance 1606 wlnch authonzes the estabhshment ofPBIA's. The PBIA would be funded by an assessment on merchants wItbm the project area. The new PBIA would be fmancIally admIllistered through a CIty contract WIth the Chamber of Commerce, contInumg the current relauonshIp under the eXIstIng PBIA. An elected Board of Mam Street merchants would estabhsh an annual expendIture budget and would be responsIble for unplementIng PBIA actiVlties, m conformance WIth performance reqmrernents to be set forth ill a ServIce Agreement between the CIty and the Chamber. A proposed budget for the new PBIA IS not yet [maltzed, however, lmtlal estlmates indIcate that the program could be adequately funded by an annual fee m an amount equal to 50% of the current Business LIcense Tax BUDGET/FINANCIAL IMPACT In the event that CIty Councll adopts the recommendauons m thIS Staff Report. outsIde consultants WIll be retained to assist m the preparauon of necessary documents related to the estabhshment of the proposed Mam Street Streetscape Improvement Project and the Marn Street Parkmg and Busmess Improvement Area. EXIStIng budget authority wIthm the Resource Management Department 15 suffiCIent to accompl1sh these tasks. No addItIonal budget authonty IS requested at thIS tIme. Staff will return to CouncIl for confirmatIon of the fundmg source(s) for the $1,681.900 to complete the constructIOn phase. and for the Issuance of some debt mstrument for final financmg of the proJect. 6 RECOMMENDA TION It IS recommended that the CIty Councll' 1. Approve, in concept, the plans for the Mam Street Streetscape Improvement Project, and, 2. Approve. m concept. the capItal fmancmg approach for the capItal nnprovements, and, 3. Approve, in concept, the plan for the estabhshment of a new Main Street Improvement Assessment Dlstnct and a new Mam Street Parkmg and Busmess Improvement Area, and, 4. DIrect Staff to prepare a Resolution of Intentlon to estabhsh a Main Street Streetscape Improvement Assessment DlstnCt, together with all necessary documents and publIc notices reqUIred for such a Resoluuon, and, 5. DIrect Staff to prepare a Resolutlon of Intenuon to Estabhsh a New Mam Street Parking and Busmess Improvement Area, whIch shall replace the eXIsting Main Street Parking and Busmess Improvement Area. Prepared by. Suzanne Fnck, DIrector of Planmng and Commumty Development Jeff MathIeu, DIrector of Resource Management MIke Denrus, DIrector of Fmance Karen Gmsberg, Plannmg Manager Howard Robmson, Real Estate!Economlc Development Manager Paul Foley, Associate Planner Attachment "A": LIst of Pubhc Meetrngs and Presentations Attachment "B": Mam Street Streetscape Improvement Plan 7 ATTACHMENT A _ .,.r . ATTACHMENT A MAIN STREET STREETSCAPE IMPROVEMENT PLAN COMMUNITY MEETINGS AND PRESENTATIONS COMMUNITY MEETING Apol 3, 1993 COMMUNITY DESIGN CHARETTE May 22-23, 1993 OPCO MEMBERSHIP MEETING November 20, 1993 MAIN ST.lOCEAN PARK BLVD. DESIGN WORKSHOP December 14, 1993 OPCO ANNUAL CONGRESS Apol 20, 1994 PRESENTATION TO MAIN ST MERCHANTS May 18, 1994 PRESENTATION TO MAIN ST PROPERTY OWNERS July 26, 1994 COMMUNITY MEETING AND PRESENT A TION January 7, 1995 PRESENTATION TO MAIN ST MERCHANTS September 13, 1995 PRESENTATION TO MAIN ST. PROPERTY OWNERS September 21, 1995 ATTACHMENT B SF/JM/HRlC.\WPMAOMam Street 11/14195 Council Meetmg. November 14,1995 5t.t 1'P&a MCth f1A Santa Mf6'1f' f~_ TO: FROM: SUBJECT: Mayor and City Council City Staff Supplemental Staff Report Regarding Mam Street Streetscape Improvement Plan INTRODUCTION ThIs Staff Report IS supplemental to the November 7, 1995 Staff Report regardmg the Mam Street Streetscape Improvement Plan. ThIS repon has been prepared In accordance wIth Cuy CouncIl d1fecuon to staff at the November 7, 1995 City Council meeung. DISCUSSION Staff IS requestmg CIty CouncIl reVIew of the conceptual plans for Mam Street. Staffs recommendatlons do not mclude the formal adoptIon of a new assessment dismct at thIS tIme, but rather, authonty to prepare necessary documentatlon pertammg to such a dIStrICt. Staff beheves It IS prudent to seek CIty Council dIreCtIOn on tills Issue before mvestmg sIgmficant1y more ume and money on the preparatlon of draft resolutIOns and supporrmg documentatIon as reqmred under eXIStlng City ordmances At Its November 7, 1995 meetmg, CIty CounCIl asked staff to dISCUSS several tOpICS In greater dewl These tOpICS are as follows: CEOA ReaUlrements The Mam Street Streetscape Improvement Plan calls for the rehabilitaUon and enhancement of the streetscape envIronment and mvolves no major alteratIon to the roadway, SIdewalks, or mfrastructure. The Streetscape Improvement plan IS therefore, categoncally exempt from the prOVISIOns of CEQA m accordance WIth the State's CEQA GUIdelInes as follows: 1 ~uPPL.eMestJr o,A MOV 1'1 ms ," ArtJ.cle 19. Caregoncal Exempuons Secuon 15301. "Class I consIsts of the operanon, repair, mamtenance or mIllor alteratIon of existIng publIc or pnvate structures, facilitles. mechanIcal eqUIpment, or topograptncal features. mvolving negligIble or no expansIOn of use beyond that prevIOusly eXIStIng, mc1udmg but not limIted to: (c) EXIstmg hIghways and streets, sIdewalks. gutters, bIcycle and pedesrnan [nu1s, and SImIlar fac1l1tIes except where the aCtlVIty w1l1 mvolve removal of a scemc resource mcluding but not InDIted to a stand of trees, a rock outcroppmg or an hIstone buIldmg." Traffic Cuculanon The eXIStlng roadway configuratIon on Mam Street WIll not be changed by the streetscape unprovement plan. The medIan will be located wItlu.n eXIstmg stnped areas whIch IS now a two-way turn lane There will be breaks in the median to allow rum movements at mtersectIons and major parkmg lots. For these reasons, staff feels that the landscaped medIan wIll not have sIgmficant Impacts on traffic clfculatlOn LandSCll~ Medran The medIan IS mtended to umfy the street whtch IS charactenzed by a commerCially mtensIve secuon south of Ocean Park Blvd and a resldenua1foffice onented sectIon nonh of Ocean Park Blvd The medIan IS also [he fearure whIch prOVIdes a bnk to the CIVIC Center area. The proposed landscapmg for the median mcludes a combmauon of palm trees and lacy, tlowenng trees wluch are mtended to enhance the aesthetics of the d.1stnct while allowing for VISual access across the street The Mam Street DeSIgn Committe feels that the median IS an unportant element of the plan for t he above reasons. 2 NotIficatIon to Affected Partty~ Since 1993. staff has sponsored an on-gomg senes of public meetings. presentatlons and workshops deSIgned to el1clt mput from property owners. merchants and neIghborhood reSIdents regardlllg the Mam Street area generally. and the streetscape plan and Its fmancial implicauons speCIfically. These meetIngs were detaIled as Attachment "A" to the November 7. 1995 staff report on thIS tOplC. The public meetIngs were notIced by a vanety of methods mcludmg door-to-door t1yer nouficauons to over 7000 neIghborhood reSIdents and store-tO~store hand-delIvery to merchants. All property owners were mailed nouficauons of both the September 21, 1995 Owners' MeetIng and the November 7, 1995 CIty CouncIl presental10n of the Streerscape Plan All merchants were ffi31led nonficatlOns of both the September 13. 1995 Merchants' MeetIng and the November 7. 1995 City Council meeung These nOUces clearly stared that the proposed streetscape unprovements would be funded through the estabhshment of an assessment dIstnct. At all publIc meeungs smce December. 1994, staff has made presentatIons on projected costs m the range of $.06 to $.10 per square foot per month ($ 72 to $1.20 per year). Current esumates are for an assessment of approXlmately $.06 per month, or approXlmately $.75 per square foot per year. A second recommended fee to suppon on-gomg mamtenance, markeung and promouon IS contemplated as a levy on Mam Street merchants IS currently antICIpated at an amount equal to 50% of the merchant's Busmess License Ta.x. PresentatIons on thlS fee have been made at two merchants General Meeungs. at several Merchant ASSOCIatIOn Board meeungs, and were also presented at the September 21, 1995 Owner's MeetIng. In additIon to these public presentauons, the Design Review CommIttee, the Main Street Property Owners ASSOCIatIOn and the Mam Street Merchants ASSOCIatIon have asSIsted staff m dissemmatmg mformatlOn regardmg the proposed fees through on-gomg dISCUSSIons WIth mdIvIdual members of theIr constItuency groups. 3 StatI plans to maIl officIal nOUfIcatIons of the proposed fees to all affected owners and merchants subsequent to Cny Counct! approval of the conceptual plan and authonzatIon to proceed WIth assessment dlstnCt formatIon proceedings. Both State law and CIty ordinances reqUIre detailed notIficatIon to all affected partIes pnor to the establIShment of a new assessment distnct. The assessment dIstnct formatIOn proceedings, currently antIcIpated for a January, 1996 City CouncIl presentatIOn, will include a Resoluuon of Intenuon to establish a Mam Street Streetscape Improvement Assessment DIstnct, supported WIth all necessary documentS and public nouces reqUIred for such a ResolutIon. CostlBenefit AnalvSIS Counell members have asked for some eVidence that the fundIng mvested ill the proposed streetscape unprovement plan WIll have the Intended effect of improvmg the economIc clImate of the MIDn Street area A formal costlbenefit analysIS was not completed for thIS project. whIch IS seen pnmanly as a street beauuficatIon plan. One of the major goals of the plan IS to beautify the street and create a pedestnan-onemed. VIllage-lIke atmosphere, III conformance WIth the gmdelmes establIshed In the Mam Street Master Plan adopted by the CIty CouncIl ill 1991. A second goal, and one which IS expected to be a natural outgrowth of the first, is to strengthen the economic vttalIty of the dlStnct. In developIng the conceptual Streetscape Plan. staff turned to several sources of expertIse. First, staff mvolved eXlsting MaIn Street propeny owners and merchants. who know theIr bus10esses and customers best, to mform the deSign process WIth elements they felt would be successful 10 attracung shoppers and VISitors to the area. Second, urban deSIgn consultants WIth expenence In commerCIal streetscape Improvement projects were retamed to work With staff and the owners. merchants and resIdents on the DeSIgn ReVIew Steenng CommIttee m developmg a plan WhICh fit Within acceptable cost parameters and could reasonably be expected to delIver the mtended economlC benefits. Thud, partICipants ill the process studied successful urban reVltalizatlon models. from our own Bayslde DlStnCt, 4 to Pasadena's Old Town. to find appltcable models. Staff IS further encouraged by the fact that the Mam Street plan IS not mtended to radIcally change a failing. blIghted commercial stnp. but IS designed to build upon and emphasIze the eXlstmg chann and umque character of the Mam Street disUlct. TIus plan seeks to poslUon Mmn Street to take fun advantage of an lmprovmg Southern Cahfomla economy and local mfrastructure projects mc1udmg the CiVIC Center. the Pier, other beach area Improvements bemg pursued by the Cay and a possIble PICO Boulevard improvement plan Future ActIOns Staff hopes to return to CIty CouncIl m January. 1996 WIth the ImtIal reports and resoluuons reqmred for the estabhshment of an assessment distTIct At that ume, mdlvldual parcel assessments wIll be more fully refmed. At least two more pubhc meetIngs would be requrred before the assessment dlStnct formauon IS fully approved. Staff would be workmg With the commumty dunng thIS penod to finalize streetscape deSIgn plans and Busmess Improvement Area plans. and would hope to be ready With final plans by late Summer, 1996 Upon CouncIl approval. the plans would be put out to bid. With construCUon begmnmg that Fall, and takmg mne to twelve months to complete The final project could hopefully be completed by Fall, 1997. Concurrently a study of the current parking condiuons ill the Mam street area will be conducted. A supply/demand study would be completed. mcludmg current base-Ime data. analYSIS of peak hour demand, sub-area condmons. addlUonal parlang SIte Inventory and IdentificatIOn of pOSSIble parlang opUons RECOMMENDA nON As stated m the November 7. 1995 staff report, It IS recommended that the City CouncIl. 1. Approve. In concept, the plans for the Main Street Streetscape Improvement ProJect, and; 2 Approve, ill concept, the capItal fmancmg approach for the capItal improvements, and, 5 3. Approve, In concept. the plan for the estabhshment of a new Mam Street Improvement Assessment Dlstnct and a new Maln Street Parking and BusIness Improvement Area, and; 4. Drrect Staff to prepare a ResolutIon of Intenuon to establish a Mam Street StreelSCape Improvement Assessment DIstnCt, together with all necessary documents and public notIces reqUIred for such a Resolunon, and; 5. Drrect Staff to prepare a Resolution of Intenuon to Establish a New Mam Street Parkmg and Busmess Improvement Area. wruch shall replace the eXlsnng MaIn Street Parking and Busmess Improvement Area. In addItion to these recommendatJ.ons. staff further recommends that City CounCIl direct staff to prepare a study of parlang condmons In the Mam Street dIStrict Prepared by. Suzanne Fnck, DIrector of Plannmg and Community Development Jeff MathIeu, Director of Resource Management Howard Robmson, Real EstatelEconoffilc Development Manager Karen Gmsberg, Plamung Manager Paul Foley, ASSOCIate Planner 6