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RMD:HSG:JM:RJB:SSCSTAF1\pc Santa Monica, California
Council Meeting and
parking Authority Meeting: May 25, 1993
TO: Mayor and City council Members
Chairperson and Parking Authority Members
FROM: City staff
SUBJECT: Recommendations Regarding the city-Sponsored Mixed Use
Development at 1423 Second street (Second street Center)
INTRODUCTION
This report recommends that the Parking Authority and city
Council adopt resolutions which initiate the title transfer of
surface Parking Lot 6 at 1423 Third street from the Parking
Authority to the city. Additionally, the city Council and parking
Authority are requested to authorize the payment of a capitalized
lease payment from the city to the Parking Authority.
BACKGROUND
On April 26, 1988, the City Council and Parking Authority approved
in concept the development of a mixed-use project with 28
affordable housing units and approximately 7,500 square feet of
theater over the City-owned Parking Lot 6 at 1423 Second street.
The project was to include the replacement of the twenty six (26)
existing parking spaces. community Corporation of Santa Monica was
designated as the developer of the proposed project. In order to
make the project financially feasible, the city council approved
the concept of leasing the property to the Developer at less than
fair market value for the leasehold interest. ",. /",4 .,-t
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On January 30, 1990, in order to maximize the probability of
receiving tax credit financing, the city Council and Parking
Authority made a determination that the ground floor space be
dedicated to cultural and/or commercial use, not theater use,
and increased the density of the project from 28 affordable housing
units to 44 units of affordable housing units.
In addition, the January 30, 1990 staff report concluded that on-
site replacement of parking spaces in the proposed mixed use
project was both financially infeasible and unnecessary and
proposed providing the Parking Authority with funds which could be
used for the provision of additional parking through expansion of
the adjacent structure.
The estimated cost of providing 26 new spaces in the existing
structure was approximately $ 300,000.00 or $ 30,000.00 per year if
paid through a lease payment.
In order to make funds available to the Parking Authority, it was
recommended that the project, rather that making annual lease
payments of $ 30,000.00, pay the capitalized equivalent of the
affordable lease paymentr i.e. $ 300,000.00 to the Parking
Authority.
In addition, the city Council directed staff to prepare the
required city Council and Parking Authority resolutions to transfer
the property from the Parking Authority to the City for the purpose
of developing affordable housing on the site.
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DISCUSSION
Community Corporation of Santa Monica has now completed the
development phase of the Second street Center project. Plans and
specifications are complete. Necessary Coastal Commission and City
approvals, including the building permit, have been obtained.
Financing for the project has been secured and a contractor has
been selected. The developer is ready to proceed into the
construction phase of the project.
The city Council and the Parking Authority approvals are necessary
to complete the financial transactions and transfer the property
from the Parking Authority to the City.
FINANCIAL/BUDGETARY IMPACT
The developer through the city, will pay the Parking Authority,
through the General Fund, $ 300,000.00 for replacement of the 26
parking spaces in Parking Lot 6. To effect this transaction the
following budgetary actions are necessary:
1) Increase revenue budget at General Fund revenue account number
01-130-224-00000-417-10000 by $ 300,000.00.
2) Increase expenditure budget at General Fund account number
01-720-264-20093-8900-99540 by $ 300,000.00.
3) Increase revenue budget at Parking Authority revenue account
number 77-210-610-00000-417-10000 by $ 300,000.00
The Parking Authority shall reserve the $ 300,000.00 for
replacement of lost parking spaces through the future expansion of
parking structure number 6.
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The developer is subject to annual Third street Parking Assessment
District fees and assessments for the residential portion of the
project. Commercial tenants will be responsible for their portion
of the fees and assessments. In order to provide the fees and
assessments for the residential portion of the project, the
developer will set aside sufficient funds in the project
development budget to provide annual payment of the required Third
street Parking Assessment district fees.
RECOMMENDATIONS
It is recommended that the City Council and Parking Authority:
Parkinq Authority Action
1) Adopt a resolution authorizing the transfer of Parking
Authority lot 6, located at 2423 Second street, to the City
2) Increase revenue budget at Parking Authority revenue account
number 77-210-610-00000-0417-10000 by $ 300,000.00.
city Council Action
1) Adopt a resolution accepting the transfer of Parking Authority
lot 6 at 1423 Second street to the City
2) Increase revenue budget at General Fund revenue account number
01-130-224-00000-0417-100000 by $ 300,000.00.
3) Increase expenditure budget at General Fund account number
01-720-264-20093-8900-99540 by $ 300,000.00
Prepared By: Jeff Mathieu, Director/Acting Housing Program Manager
Robert Berry, Senior Administrative Analyst
Resource Management Department
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RESOLUTION NO. 8591 (CCS)
(City council Series)
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA
TRANSFERRING PARKING LOT 6 OF THE PARKING AUTHORITY TO THE
CITY OF SANTA MONICA
WHEREAS, the Parking Authority of the city of Santa is the
owner of certain real property located at 1423 Second Street in the
city of Santa Monica ("Property"); and
WHEREAS , given the location of such property it is not
economical to use such property solely for parking purposes; and
WHEREAS, the development of affordable housing on the Property
on the Parking Lot 6 would be a desirable and compatible public use
for the Property; and
WHEREAS, the city of Santa Monica deslres to lease the
property to Community Corporation of Santa Monica, who will develop
affordable housing units on the property; and
WHEREAS, pursuant to Streets and Highways Code Section 32667,
the legislative body by two-thirds vote may adopt a resolution
transferring property of the Parking Authority to the city,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City of Santa Monica agrees to acquire and
accepts the transfer of the real property located at 1423 Second
Street from the Parking Authority of the city of Santa Monica for
the purpose of allowing Community Corporation of Santa Monica to
develop a 44 units of affordable housing on the property;
SECTION 2. Upon receipt from Community corporation of Santa
Monica, the city will transfer the lease payment of $ 300,000.00
to the Parking Authority of the city of Santa Monica.
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SECTION 3. The city Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORMi
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City Attorney
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Adopted and approved th1S 25th day of May, 1993.
CJt/1 t~
Y Mayor
I hereby certify that the foregoing Resolution No. 8591(CCS)
was duly adopted by the City Counc1l of the C1ty of Santa Monica
at a meeting thereof held on May 25, 1993 by the following
Council vote:
Ayes: Councilmembers: Abdo, Genser, Holbrook, Olsen,
Rosenstein, Vazquez
Noes: Councilmembers: None
Abstal.n: Councilmembers: Greenberg
Absent Councilmembers: None
ATIEST'
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rid. ofty Clerk
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RESOLUTION NO. 220 (PAS)
(Parking Authority Series)
RESOLUTION OF THE PARKING AUTHORITY OF THE
CITY OF SANTA MONICA
TRANSFERRING PROPERTY OF THE PARKING AUTHORITY TO THE
CITY OF SANTA MONICA
WHEREAS, the Parking Authority of the city of Santa Monica is
the owner of certain real property located at 1423 Second street in
the City of Santa Monica commonly known as Parking Lot 6
("property") .
WHEREAS, g~ ven the location of such property, it is not
economical to use such property solely for parking purposes; and
WHEREAS, the development of affordable housing units on the
Property is a desirable and compatible public use for this
property; and
WHEREAS, the City of Santa Monica desires to lease the site
to Community Corporation of Santa Monica ("CCSM"), who will develop
affordable housing units on the property; and
WHEREAS, pursuant to Streets and Highways Code Section 32667,
the legislative body by two-thirds vote may adopt a resolution
transferring property of the Parking Authority to the city; and
NOW, THEREFORE, THE PARKING AUTHORITY OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS;
SECTION 1. The Parking Authority of the city of Santa
Monica shall transfer the parking lot 6 located at 1423 Second
Street ln the City of Santa Monica to the city of Santa Monica for
the purpose of allowing Communlty Corporation of Santa Monica to
develop 44 units of affordable housing on the property.
B. Upon receipt of $300,000.00 from community
Corporation of Santa Monica as payment for the property, the city
will transfer $ 300,000.00 to the Parking Authority.
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SECTION 2. The Executive Secretary shall certify to the
adoption of this Resolution, and thenceforth and thereafter the
same shall be in full force and effect.
APPROVED AS TO FORM:
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~ Jdsepn-~awrence
, Acting city Attorney
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Adopted and approved this 25th day of May, 1993.
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I hereby certify that the foregoing Resolution No. 220 (PAS)
was duly adopted by the Parking Authorlty of the Clty of Santa
Monica at a meeting thereof held on May 25, 1993, by the
followlng Authority vote:
Ayes: Authority Members: Abdo, Genser, Holbrook, Olsen,
Rosensteln, Vazquez
Noes: Authority Members: None
Abstain: Authority Members: Greenberg
Absent: Authorlty Members: None
ATTEST:
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J Executive secretary
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