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SR-121796-RA-1 . tjI3--otJ/ T?A ..1. . DEe 1 7 1996 RMD RD A sJ \ \\'P61 \rede 121 7\finalrpt stf Santa MOnIca, CalIfornIa CouncIl Meetmg December 17, 1996 TO Redevelopment Agency Chairperson and Board FROM Redevelopment Agency Staff SUBJECT Approval of Annual Report for FIscal Year 1995-96 for the Redevelopment Agency of the CIty of Santa :MonIca Il'TRODUCTION The Cahforma Health & Safety Code reqUIres that each redevelopment agency file an annual report 'wlth the CalIfornIa State Controller ThIS staff report recommends approval of the attached Santa MOnIca Rede,'elopment Agency Annual Report for FIscal Year 1995-96. ,,,hleh mcludes an mdependent finanCIal audIt. pursuant to Cahfornla Health and Safety Code SeetlOn 33080 1 ANNUAL REPORT CONTENTS As reqmred by la\-, the Agency's Annual Report mcludes 1) A descnptIon ofthe agency's actIVItIes affectmg housmg and dIsplacement, 2) An mdependent finanCIal audIt report conducted III accordance '''lth generally accepted audltmg standards. 3) A fiscal statement that proVIdes mformatIon on the outstandmg mdebtedness of and the amount of tax mcrement revenue generated by the agency and by eaeh proJect, 4) Any other mformatIOn \-"hleh the agency behe" es useful to explam Its programs and actIntIes 1 1<A ~ i DEe 1 7 1996 F or the audIt portIOn of the Annual Report, the Agency contracted 'Vlth the accountmg firm of KPMG Peat Marn.-1ck for an mdependent finanCIal audIt for the fiscal year from July 1, 1995 to June 30. 1996 The audlt was performed to comply WIth standards set out m SectIOn 33080 1 of the Cahfomm Health and Safety Code KPMG Peat Man\lck found that the Agency's records faul) present the financlal posltlon of the VarIOUS funds and account groups of the Redevelopment Agency as of June 30, 1996 and found no negallve audlt findmgs The 1995-96 Annual Report also 1) Re\.lews actIvItIes of the Redevelopment Agency m FY 1995-96, 2) Prene,,,-s the Agency's obJectIyeS and ,vork plan for FY 1996-97. 3) ProVIdes recommendatIons for legIslatIon to asS1St or enhance or contmue 11s redevelopment actIvItles Pursuant to the CahfornIa Commumty Redevelopment law, the Redeyelopment Agency 15 reqmred to set aSIde at least 20% of the tax mcrement It receIves each year for purposes of mcreasmg, Improymg and preservmg the commumty's supply of 10" and moderate mcome housmg For FY 1995-96, a total of $597,093 of Agency tax mcrement funds have been set aSlde for 10\\- and moderate lUcorne housmg as follows Ocean Park la - $287,651, Ocean Park Ib - 543.228. DO\\l1tovm Project - $266,214. therefore satIsfymg the 20% set-asIde reqUlrement The Earthquake Recovery Redevelopment Project dId not receIve tax mcrement In FY 1995-96 and therefore no set aSIde funds for Im\ and moderate Income hOUSIng purposes are avmlable or reqmred The attached Annual Report provides speCIfic mformatlOn on housmg and other actl\'ltIes of the Redevelopment Agency m FY 1995-96 AdoptIon of the Annual Report IS reqmred prIor to lts transmIttal to the State Controller 2 ------ -- , t BUDGETIFISCAL IMPACT There are no budgetlfiscallmpacts resulting from the approval of the Redevelopment Agency's Annual Report ofFY 1995-96 RECO~~ENDATIO~S It IS recommended that the Redeyelopment Agency approye the Annual Report and dIrect the Executlve DIrector to transmIt the report to the Cal1forma State Controller Prepared by Jeff MathIeu. Resource Management DIrector KeIth Breskm, Redevelopment Manager Attaclnnent: Santa Momca Redeyelopment Agency Annual Report for FIscal Year 1995-96 KPMG Peat MarwIck Independent Audltor"s Report. 1995-96 a 'IedeI217' 120996325 3 ANNUAL REPORT FOR FISCAL YEAR 1995-96 REDEVELOPMENT AGENCY OF THE CITY OF SANT A ~ONICA INTRODUCTION As reqUIred by Cahfornia Health & Safety Code SectIOn 33080 1. each redevelopment agency must file an annual report ,vIth the CahfornIa State Controller \\ithm SIX months of the end of the agency's fiscal year The annual report must contam 1) A specIfic descnptIOn of the agenc) 's actl\'ItIes affectmg hOUSIng and dIsplacement 2) An mdependently prepared finanCIal audIt report conducted In accordance \\1th generally accepted audItIng standards 3) A fiscal statement that proVIdes mformatIon on the outstandmg mdebtedness of and the amount of tax Increment revenue generated by the agency and by each project 4) Any other mfonnatIOn v.-h1ch the agency beheves useful to explam Its programs and aCtIvItIes ThIS annual report for the Santa "MOllIca Redeyelopment Agency contams the mformatIOn reqUired by State law and also Includes a reVIe\\ of the obJectl\.es and actlVlt1eS of the Redevelopment Agency In FY 1995-96. preVIews the Agency's obJectlves and ,vork plan for FY 1996-97, and proVIdes recommendatIOns for needed legIslatIOn to carryon Its programs DESCRlPTIOK OF REDEVELOPMENT PROJECTS The Santa MOllIca Redeyelopment Agency was establIshed on August 13, 1957, and has four redewlopment project areas 1 . 1) Ocean Park Redevelopment Project (1 a) 2) Ocean Park Redevelopment Project (lb) 3) Do\\ nto\'1'TI Rede.. elopment ProJ eet 4) Earthquake Recovery Redevelopment Project Ocean Park Redevelooment Proiect ~ - The Ocean Park Redevelopment Project ,,,as the first project undertaken b) the Santa MOllIca Redevelopment Agency It v.as desIgnated for study as a potentIal rede\ elopment project m Apnl 1958 \vhen an apphcatIOn was made to the Federal government for survey and planmng funds \VIth these funds, the Agency commenced preparation of formal plans for the area encompassmg thIrty-three acres of land m the southwest comer of the CIty In October 1959. as a result of a reductIOn m the avaIlabihty of Federal funds for the project. the proposed thirty-three acre Ocean Park project was dIvIded mto 1\.\0 separate projects so that at least one project could proceed WIth the funds aVailable to the Agency at the tIme Ocean Park Redevelopment ProJect la Ocean Park Rede,~elopment Project la encompasses the northern 25 acres of the ongmall) proposed 33 acre project The Redevelopment Plan for Project la \\as approved by the CIty CounCIl on June 30, 1960, follm.vmg reqUISIte studIes and hearmgs by the Plannmg CommIssIOn, Redevelopment Agency, and the CIty CounCIl The Redevelopment Plan "as amended on ~ovember 14. 1967, pnnclpally to change the pernutted land uses m the project area 2 Ocean Park Redevelopment Project 1 a IS bounded by Ocean Park Boulevard on the north, NeIlson Way on the east. Ocean Park Project No Ib on the south, and the State beach parkmg lots and beach on the west Ocean Park Redevelopment Project la \\as completed m May 1987 The project contams two 17-story hIgh nse apartment bUIldmgs WhICh were completed m 1967 Each tower contams 250 rental apartment umts On both sIdes of the apartment complex IS located the Sea Colon) condommmm project Sea Colony contams 340 condommmm UnIts \yhICh \vere constructed m two phases Phase 1 of the development was completed m 1980 and Phase 2 was completed m May 1987 Ocean VIew Park IS a pubhc park located m the center of ProJect Area la facmg the ocean Ocean Park Redevelopment Project 1 b Ocean Park Redeyelopment Project 1 b encompasses the southern eIght acres of the ongmally proposed 33 acre project The Redevelopment Plan for Project 1 b was approved by the CIty CouncIl on January 24. 1961. followmg reqmsIte studIes and hearmgs by the Plannmg CommlsslOn, Redeyelopment Agency, and the CIty CounCIl The Redevelopment Plan was amended on January 26, 1965, and agam on September 12. 1972, pnnCIpally to change the permItted land uses m the project area Ocean Park Redevelopment Project No IbIs bounded by Ocean Park Redevelopment Project la on the north. NeIlson \Vay on the east. the CIty lImIt on the south and the State beach parkmg lots and beach on the west Ocean Park Redevelopment Project No Ib was completed m 1983 The project contams hm semor clt1zen reSIdentIal apartment complexes and a former utIhty bUIldmg NeIlson VIllas contams 100 rental apartment umts and \\as completed m 1977 Barnard Park VIllas contams 61 umts and was completed m 1983 A u11l1t1' bUIldmg was adapted m 1987 to house offices and art storage for the Eh Broad Farmly Art FoundatIOn ~ .J Do\\nto\-vn Redevelooment PrOlect - ~ The Doy"ntm\n Redevelopment Project encompasses about 9 9 acres of property located at the southern end of the CIty'S Tlurd Street Promenade III the do\,ntoWTI core of Santa MOllica The Redevelopment Plan for the Do\\onto\\n Project \\as approved by the Crty Councll III January 1976 The Do\\nto\\TI Redevelopment Project IS bounded by Broadway on the north, 4th Street on the east. Colorado A venue on the south, and 2nd Street on the west The DO"\vntO"\vTI Redevelopment Project was completed m 1980 It conSIsts of Santa MOnIca Place and adjOInIng parkmg structures The retaIl portIOn of the project contams approxImately 570,000 square feet of floor area and mcludes mo major department store anchors and 160 speclalt) retaIl shops and food establIshments. all of whIch are hnked by a three level enclosed pedestnan space that extends dIagonally across two CIty blocks The project also mcludes two Agency-O\\ued parkmg structures contammg 2.020 parkmg spaces Earthquake Recovery Redevelopment Project The Earthquake Recovery Redevelopment Project was establIshed m FY 93-94 The project area mc1udes a great number of local bUIldmgs damaged m the January 1994 Northndge earthquake. mc1udmg apprOXImately 90% of all red-tagged and 80% of all yellow-tagged bwldmgs m the CIty The project area IS bounded on the east by Cloyerfield and 26th Street, on the west by the PaCIfic Coast HIgh\vay/Beach Promenade, on the south by approxImately PICO Boulevard and on the north by Montana Avenue Off-SIte Pr01ects Both the Ocean Park Redevelopment Projects and the Do\\nto\\n Redevelopment Project mclude certam off-SIte Improvements that were found to be "of-benefit" to each project In addItIon to varIOUS housmg and other related projects for low and moderate mcome mdIvIduals and fatllIhes eIther funded m whole or III part by each project. major off-SIte Improvements mclude 4 . Ocean Park ProJects' Off-SIte Impro\'ements 1) RenovatIOn and enhancement of the nearby beach parkIng lot and surroundIng streets, 2) RehabIbtatlOn and expansIOn of the Ocean Park Branch LIbrary 3) RehabIbtatlOn of 22 apartment umts for very low mcome sernor and famIly households at 175 Ocean Park Boulevard. 4) ConstructIOn of 55 uruts of rental apartments for 1m\' and moderate mcome famIlIes located on \'arlOUS sItes III the Ocean Park neIghborhood of the CIty 5) ConstructIOn or rehabIlItatIOn of 313 rental umts at varIOUS sItes m Santa Mornca 6) Purchase of a parkmg easement for a 40 umt sernor 202 low Income housing project Dmvnto\\TI Project Off-SIte Improvements 1) VarIOus Improvements adjacent to the Project at the Thud Street Promenade and BaysIde dtstnct adjacent to the DO\\TItO\\TI Redeyelopment Project were found to be "of-benefit" to the DO\'vntown Project Pnmary fundmg for these rmprovements was provIded by other sources 5 . AGENCY OBJECTIVES AND ACTIVITIES FOR FISCAL YEAR 1995-96 In FIscal Year 1995-96 the Santa Momca Redevelopment Agency pnmanly focused Its efforts on contmuing ongomg fWlctIOns III support of eXIstmg and proposed housIllg projects SpeCIfically. the follov,rmg actI\ltIes were accomplIshed Ocean Park Projects la and Ib Obiective: Analyze fundIng proposals for yery Imv. low and moderate Income hOUSIng projects ThIS obJectI\e IS on-goIng Durmg FY 95.96. dIscussIOns contInued on fundIng alternatIves for a 40 Wlit SectIOn 202 IO\.\~ mcome semor housmg project on Lmcoln Bouleyard In the prenous year fWlds were allocated for the purchase of a parkmg easement for the project Obiective: ASSISt a housmg development project for very 10\\ Income tenants WIth prede\ elopment costs ThIS obJectIye \vas not achIeved in FY 95-96 However, the Agency has contmued to work closely \Vlth the developers of thIS project, Upward BOWld, analyzmg vanous fundmg optIOns for tills 70 umt SectIOn 202 semor housmg project The Ocean Park Housmg Trust Fund also was used to SUbSIdIze 22 umts ofhousmg for very low mcome semor and famIly households through the lease payment made by the Agency on behalf of the 175 Ocean Park Boulevard publIc housmg development ThIS has been an ongomg actInty of the Redevelopment Agency for many years Downtown Project Objective: Anal)ze fundmg proposals for very low, low and moderate Income housmg pro] ects 6 . . ThIS objectIve IS on-gomg. In FY 95-96, dIScussIons commenced on fundmg alternatIves for a 66 umt SectIon 202 semor housmg project on 4th Street A number of Issues remam unresolved on thIS project that are antIcIpated to be resolved m FY 96-97 Obiective: ASSISt a housmg development project for the very Imv mcome \nth predevelopment costs ThIS objectlve \\as not achIeved in FY 95-96 However. the Agenc) \"orked has continued to \"ork closely \YIth the developers of thIS prOject, Cpward Bound, analyzmg vanous fundmg optIOns for tills 70 urnt SectIOn 202 semor housmg project Obiective: ImplementatIon of publIc Improvements m the BaYSIde DIstnct and complete the analYSIS and ImplementatIOn of an overall do\\ntown parkmg program The objectIve IS on-gomg m nature As reported m the past, analYSIS and Implementation of an 0\ erall Downtov.n parkmg program was deferred ootIl the Attendant Parkmg Program was Installed ThIS \\-as accomplIshed m FY 95-96 The Agency also appropriated Its VItale GIlpIn hOUSIng foods to aSSIst III the housmg projects descnbed above The VItale Gllpm Fund resulted from a legal settlement requmng the Agency to set aSIde a portIOn of the tax mcrement revenue generated by the Dov.nto\\n Redevelopment Project to fund programs that proVIde housmg for low and yery low mcome persons and farml1es AGE~CY OBJECTIVES FOR FISCAL YEAR 1996-97 The Agency has the follo\\Illg ObjectIves for FIscal Year 1996-97 7 . I Ocean Park Redeyelooment Proiects la & Ib - - Obiective: ASSISt the 40 umt SectlOn 202 lov.' mcome semor housmg project on Lmcoln Boulevard wIth predevelopment costs Objecth'e: ASSIst the 70 umt SectIOn 202 low mcorne semor housmg project bemg developed by Upward Bound for predevelopment and constructIon costs Ob1ective: Analyze fundmg proposals for very Imv, low and moderate mcorne housmg proJ ects Downtown Redevelooment Proiect - - Obiectn..e: ASSISt the 66 umts SectlOn 202 semor housmg development project "'lth pre development costs Obiective: Contmue to Implement public Improvements m the BaysIde DIstnct and retam a consultant for an mItIal study and analysIs of an Q1,:erall DO\\TIto\\n parkmg program Obiecth"e: Analyze fundmg proposals for very Imy. 1m\! and moderate mcome housmg proJ ects Earthauake Recoverv Proiect - -- ObiectIve: Analvze and determme extent of base vear and current year assessed . . ~ valuatIon errors as reported by the County and work wIth County offiCIals to make appropnate correcllOns to assessed yaluatlOns and allocate tax mcrement revenues as warranted 8 - - - - I . AGENCY ACTIVITIES AFFECTING HOl7SINGIHOUSING SET ASIDE FUNDS The Santa MOllIca RedeYelopment Agenc) dId not partIcIpate In any actIvItIes that resulted In the dIsplacement. relocatIOn or demolItIOn of hOUSIng The Agency also dId not conduct relocatIOn. demohtIOn, or dIsplacement actIvltles outsIde of the project areas In FY 1995-96 and no such actIvIty wIll occur In FY 1996-97 The Agency contrIbuted $597,093 mto Its Low & Moderate HOUSIng Fund. reflectmg 20% of the tax mcrement receIved by the Agency m FY 95-96 These funds WIll be used m support of 10\\ and moderate Income housmg in future years The follO\\IDg represents the project breakdmvn of these contnbutIOns Ocean Park Redevelooment ProTect 1a ~ - In FY 95-96, the Ocean Park Redevelopment Project la receIved $1,438,255 In tax mcrement revenue and appropnated $290.844 for 10\\ and moderate mcome housmg purposes Ocean Park Rede" elopment PrOject 1 b In FY 95-96, the Ocean Park Redevelopment Project 1b recel\ed $216,141 m tax mcrement revenue and appropnated $43.228 for low and moderate Income hOUSIng purposes Downto\.vn Redeveloument PrOlect - - In FY 95-96, the Do,:vntown Rede,'elopment Project receIved $1,331,070 m tax mcrement revenue and appropnated $266,214 for lov" and moderate mcome housmg purposes Earthquake Recovery Redevelopment Project In FY 95-96, the Earthquake Recovery Redevelopment Project dId not receIve tax mcrement revenues and therefore was unable to appropnate funds from thIS area for low and moderate lUcorne housmg purposes 9 , .. ... RECO~~ENDATIONS CONCERNING NEEDED LEGISLATION Pursuant to Health and Safety Code SectlOn 33080, thIS report should transmIt an) recommendatIOns concerrnng needed leglslatlon for redevelopment agencIes It IS nnperatlye that redevelopment agencIes have the abllIty to ensure that all property assessed valuatlOn appeals are consIdered by the county assessor WIth full InformatIon and that any adjustments be communIcated promptly to local officIals Therefore, the CIty and the Redeyelopment Agency recommend that the State adopt leglslatlOn that would reqUlre InfOrmatIOn be proVIded to cItIes/redevelopment agencIes regardIng all assessment appeals when filed and also proYIdmg InfOrmatIOn on when these appeals wIll be consIdered by the assessment appeals board Prepared by Jeff MathIeu. Resource Management DIrector KeIth Breskm, Redevelopment Manager a .rdaar96 \\]ld 120996 320 10