SR-417-002 (2)RNID:JM:MK:f:/Word/Staff Reports/RDA-Pl.doc
City Council Meeting: January 9, 2002 Santa Monica, California
TO: Mayor and City Council
Chairperson and Redevelopment Agency
Chairperson and Parking Authority of the City of Santa Monica
FROM: Redevelopment Agency and Parking Authority Staff
SUBJECT: Authorize the negotiation and execution of an Agreement among the City
Council, Parking Authority, and Redevelopment Agency for the Transfer of
Ownership and Seismic Retrofit of Downtown Parking Garages and a
Cooperation Agreement between City Council and Redevelopment
Agency, and approve Resolutions Determining and Finding that the
actions are of benefit to the Earthquake Recovery Redevelopment Project
Area.
Intrnrli ir.tinn
This report recommends that the City Council, Redevelopment Agency and Parking
Authority take certain actions to accomplish the seismic retrofit of the downtown parking
structures and to preserve resources for this purpose. Specifically, it recommends that
the entities enter into a Sale and Performance Agreement that would transfer ownership of
the structures from the City and Parking Authority to the Redevelopment Agency, and
require the Agency to retrofit and complete other improvements to the structures. The
requested approvals are sought at this time because potential changes in the state law
may restrict the City's and/or Parking Authority's ability to take the actions necessary to
accomplish the seismic retrofits.
The report also recommends that the City Council and Redevelopment Agency execute a
Cooperation Agreement requiring the Redevelopment Agency to complete certain public
improvements within the project area and expend certain funds consistent with
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redevelopment law for the purpose of preserving affordable housing within the City of
Santa Monica.
The report also recommends that the Council and Agency make findings that these
actions are of benefit to the Earthquake Recovery Redevelopment Project Area.
Backqround
The six downtown parking structures owned by the City and the Parking Authority were
damaged in the 1994 Northridge earthquake in varying degrees. They are located
within the Earthquake Recovery Redevelopment Project Area. While the initial damage
caused by the earthquake has been repaired on all parking structures, none of these
structures has been seismically retrofitted to protect against future earthquake damage.
Since that time staff has worked on plans for retrofitting these structures and the
Downtown Parking Task Force has made recommendations that have been approved in
concept and will be returned to Council for final approval later this year. This project
would facilitate seismic upgrades by transferring ownership to the Redevelopment
Agency and requiring the Redevelopment Agency to retrofit and rehabilitate the
structures.
The Palisades Bluffs also require seismic retrofit and stabilization. A Cooperation
Agreement between the City and Redevelopment Agency will ensure that this work will
be performed. It is also in the interest of the City to increase, preserve, and improve
affordable housing within the City. A Cooperation Agreement requiring the use of
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Agency funds for affordable housing will assist in the accomplishment of the City's
affordable housing goals.
flieri iecinn
Pursuant to the Sale and Performance Agreement, the Redevelopment Agency will pay
to the City $10,836,000 for the City-owned structures and will pay to the Parking
Authority $49,164,000 for the Authority-owned structures. The valuations are based on
the capitalization of revenue for the structures owned by the respective parties. The
Agency will execute promissory notes to the City and Parking Authority, secured by
deeds of trust recorded against the Parking Structures. The promissory notes will be
paid by the Agency to the Parking Authority and the City from tax increment revenues.
The proceeds from the sale will be expended by the City and Parking Authority in a
manner which will implement the Redevelopment Plan for the Project Area and facilitate
redevelopment of the Project Area.
Each of the existing structures will be retrofitted based upon individual requirements. A
phasing schedule will be created from an assessment of the individual garage
conditions. Once prioritizations have been established, design work and bid documents
will be developed. The Sale and Performance Agreement will include a schedule of
performance detailing the time frame and scope of work for each structure. It is
estimated that the cost of the work, which the Agency is obligated to fund, is
approximately $60 million. No expansion of the structures is contemplated with this
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agreement at this time; and if any expansion or replacement is considered in the future,
all necessary environmental analyses will be completed before project approval.
Use of redevelopment funds for the acquisition and rehabilitation of publicly owned
parking facilities requires the City Council and the Redevelopment Agency Board to
make the appropriate determinations and findings. The attached Resolutions
(Attachments A and B) determine and find that the Santa Monica Downtown Parking
Garage Acquisition and Retrofit Project is of benefit to the Earthquake Recovery
Redevelopment Project Area, no other reasonable means of financing the
improvements are available, the payment of funds for the improvements will assist in
both the recovery from and the elimination of one or more of the conditions resulting
from the 1994 Northridge Earthquake disaster, the payment of funds for the
improvements will assist in elimination of one or more blighting conditions inside the
Project Area by assisting in the elimination of one or more of the conditions resulting
from the 1994 Northridge Earthquake disaster, and the Santa Monica Downtown
Parking Garage Acquisition and Retrofit Project is consistent with the Agency's Five-
Year Implementation Plan in that it helps achieve the Disaster Prevention and Mitigation
goals set forth in the Redevelopment Plan.
Pursuant to the Cooperation Agreement, the Redevelopment Agency will be required to
complete the work of retrofitting and stabilizing the Palisades Bluffs in an amount not to
exceed $20,000,000. The Cooperation agreement will also provide that the Agency
expend $30,000,000 at not less than $2,000,000 per year on Permitted Housing
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Activities to assist the City in its affordable housing goals. The attached resolutions
(Attachments D and E) make the required findings for the use of Redevelopment funds
for these purposes.
Budqet/Financial Impact
There are no budgetary impacts at this time. The obligations created by this agreement
will be reflected in the annual budgets in future years.
Recommendations
It is recommended that the City Council take the following actions:
1) Approve transfer of ownership of Parking Structures currently owned by the City to
the Redevelopment Agency for the seismic retrofit of the structures; and
2) Adopt the attached Resolution (Attachment A) determining and finding that the
Santa Monica Downtown Parking Garage Acquisition and Retrofit Project is of
benefit to the Earthquake Recovery Redevelopment Project Area, and authorizing
the City Manager to negotiate and execute the Sale and Performance Agreement
and related documents to implement this action.
3) Adopt the attached Resolution (Attachment D) determining and finding that the
Cooperation Agreement is of benefit to the Earthquake Recovery Redevelopment
Project Area, and authorizing the City Manager to negotiate and execute the
Cooperation Agreement and related documents to implement this action.
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It is further recommended that the Parking Authority take the following actions:
1) Approve transfer of ownership of the Parking Structures currently owned by the
Parking Authority to the Redevelopment Agency for the seismic retrofit of the
structures; and
2) Adopt the attached Resolution (Attachment C) authorizing the Executive Secretary
of the Parking Authority to negotiate and execute the Sale and Performance
Agreement and related documents to implement this action.
It is further recommended that the Redevelopment Agency take the following actions:
1) Approve acceptance of ownership of Parking Structures currently owned by the
City and the Parking Authority for the seismic retrofit of the structures; and
2) Adopt the attached Resolution (Attachment B) determining and finding that the
Santa Monica Downtown Parking Garage Acquisition and Retrofit Project is of
benefit to the Earthquake Recovery Redevelopment Project Area and authorizing
the Redevelopment Agency Executive Director to negotiate and execute the Sale
and Performance Agreement and related documents to implement this action.
3) Adopt the attached Resolution (Attachment E) determining and finding that the
Cooperation Agreement is of benefit to the Earthquake Recovery Redevelopment
Project Area, and authorizing the Executive Director to negotiate and execute the
Cooperation Agreement and related documents to implement this action.
Prepared by: Jeff Mathieu, Director of Resource Management
Bob Moncrief, Housing and Redevelopment Manager
Martin Kennerly, Administrative Services Officer
Tina Rodriguez, Redevelopment Administrator
Ryan Moore, Senior Administrative Analyst
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Attachments: A- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AUTHORIZING EXECUTION OF A SALE
AND PERFORMANCE AGREEMENT, CONSENTING TO
THE USE OF SANTA MONICA REDEVELOPMENT
AGENCY FUNDS FOR THE COMPLETION OF CERTAIN
WORK ON SIX PARKING STRUCTURES IN THE CITY OF
SANTA MONICA AND MAKING CERTAIN
DETERMINATIONS AND FINDINGS PURSUANT TO
HEALTH AND SAFETY CODE SECTION 33445
B- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SANTA MONICA AUTHORIZING
EXECUTION OF A SALE AND PERFORMANCE
AGREEMENT AND MAKING CERTAIN DETERMINATIONS
AND FINDINGS PURSUANT TO HEALTH AND SAFETY
CODE SECTION 33445
C- A RESOLUTION OF THE MEMBERS OF THE PARKING
AUTHORITY OF THE CITY OF SANTA MONICA
AUTHORIZING EXECUTION OF A SALE AND
PERFORMANCE AGREEMENT
D- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AUTHORIZING EXECUTION OF A
COOPERATION AGREEMENT, CONSENTING TO THE
USE OF SANTA MONICA REDEVELOPMENT AGENCY
FUNDS AND MAKING CERTAIN DETERMINATIONS AND
FINDINGS PURSUANT TO HEALTH AND SAFETY CODE
SECTIONS 33445 AND 33334.2(g)
E- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SANTA MONICA AUTHORIZING
EXECUTION OF A COOPERATION AGREEMENT AND
MAKING CERTAIN DETERMINATIONS AND FINDINGS
PURSUANT TO HEALTH AND SAFETY CODE SECTIONS
33445 AND 33334.2(g)
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