SR-121796-RA-1
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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
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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
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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
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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
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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
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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
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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
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Do\\nto\-vn Redevelooment PrOlect
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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
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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
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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
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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
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Ocean Park Redeyelooment Proiects la & Ib
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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
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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
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ObiectIve: Analvze and determme extent of base vear and current year assessed
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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
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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
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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
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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
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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
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