Loading...
SR-414-004 (2) <fA JUt - 8 2003 F:CMGRStaff Reports:Santa Monica College Liberal Arts Building Replacement 7 -8-03.doc City Council Meeting: July 8, 2003 Santa Monica, CA TO: Mayor and City Council Chairperson and Redevelopment Agency FROM: Redevelopment Agency Staff SUBJECT: Public Hearing on the advance of Redevelopment funds from the Earthquake Recovery Redevelopment Project for Replacement of the Santa Monica College Liberal Arts Building Damaged During the 1994 Northridge Earthquake and required findings and agreements necessary to implement the action. Introduction This report recommends that the City Council and Redevelopment Agency ("Agency") hold a public hearing and take certain ~s tD ..... the Agency'sleD"my FeqUired I payments to SMta Monica College ~.) to .... the. College in rebuilding its Liberal Arts Building (-Project"), whfh lN88 damaged during the 1994 Nofthridge Earthquake, including making all determinations required by the Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) ("CRL"); adopting a Resolution of Intent that allows future redevelopment tax-exempt bond proceeds to be used -to reimbuf8e the AfIencY for _ ~ wIh thepqect; an4. authorizing the Executive Direclor to neQOti8te and ~ 8 ~ Agreement with Santa Monica College to provide a means for carrying out the Project. BackQround The project Area was ac:IopIed in 1* in response to the Northridge Earthquake to provide for and facilitate the repair, restoration, demolition and/or replacement of ~A JUl - 8 2003 facilities damaged as a result of the Northridge Earthquake. The Project Area includes the College's main campus, which was considered as a candidate for a potential project in the Redevelopment Agency's 1994 Five-Year Implementation Plan under the Institutional Revitalization goal, the 1999 Five-Year Implementation Plan, and the Agency's 2003 Mid-Term Report. In February of this year the College ~ the necessery dOcumentation for a $10.2 million funding request to be considered by the Agency for the development and construction of the new Liberal Arts building to replace the existing earthquake- damaged facility. This documentation included a total development cost budget, estimates of construction costs, funding sources, conceptual plans, and construction phasing schedule, Staff has reviewed this documentation and finds that it supports the use of Agency redevelopment fund"", lot 8 public facility pursuant to the CRL. A summary report. pursuant to Section ~7~ of the CRL. has.*" prepared by aff and has been made available to the public. The Agency provtdes legally requiredl.... ~ payments to the College from tax increment revenues collected in the Earthquake Recovery Redevelopment project Area. Lastyeer. the payment ~ $218.038. The College has requested that the Agency advance. the8eannwal ~tht'OUgh payments to achieve the $10.2 miHion requested It is anticipated that the advance will reduce the annual payments to the College over the next 30 years. The CRL provides provisions for the Agency to make the advance in the manner requested 2 Discussion The Agency, with the consent of the City Council, is allowed to pay all or a part of the cost of installation and construction of any publicly owned building provided that certain determinations are made pursuant to Section 33445 of the CRL. Due to potential issues relating to the Americans with Disabilities Act, environmental conditions, and damage caused during the 1994 Northridge Earthquake, it has been determined that it is more cost efficient to demolish the existing Liberal Arts building and replace it rather than attempt the necessary renovation. The Project will be located on the southeastern portion of the College's main campus and will consist of a three-level, 59,887 square feet educational facility, including two subterranean levels, one of which will contain 35 faculty parking spaces. The Project will be built in two phases, with construction of Phase to commence December 2003 and be completed July 2005. Phase II of the Project will commence October 2004 and be completed May 2006. The total cost of the Project and the funding sources are summarized below: FEMA State Capital Fund District Capital Fund Sub Total $3,081,147 $4,458,000 $1,218,000 $8,757,147 $10,206,823 $18,963,970 Agency Total 3 Redevelopment Considerations The City Council and Agency must make the appropriate determinations in order to authorize the use of redevelopment funds. The attached Resolutions (Attachment A and B) determine and find that the Project is of benefit to the ProjElct Area; no other reasonable means of financing the Project are available to the community; the payment of funds for the Project 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 payment of funds for the Project is consistent with the Agency's Five-Year Implementation Plan in that it helps achieve the Institutional Revitalization goals set forth in the Five-Year Implementation Plan by replacing an earthquake-damaged facility and restoring its use to the community for educational purposes. The attached Resolution of Intent (Attachment C) is required by the A!~ency in the event that a tax-exempt, tax allocation bond is issued in the future. This will allow the Agency to be reimbursed for advances to the College (pursuant to the Cooperation Agreement) from the bond proceeds and must be adopted prior to the commitment of funds or start of construction. Recommendations relative to a bond sale(s) are being evaluated with consideration to the project area's $95 million bonded indebtedness limitation. This Resolution authorizes $10.2 million in reimbursement from the bond proceeds for the Project; however, it does not obligate the Agency to issue bonds for this or any other projects. Furthermore, as required by California Redevelopment Law, the Agency will reduce a certain portion of its statutory pass-through payments by the amount the 4 Agency will advance to the College towards the development and construction of the Project. Earthquake Proiect Area Financial Plan Impact Earthquake Recovery Redevelopment Project Fund Balance projections are attached (Attachment D) which depict the financial status of the project area including funding obligations, Agency funded projects and future tax increment projections. This is intended to provide a context in which to consider this recommended funding request. Based on the Fund Balance Projection, the Agency can include the request by the College in FY03/04 by deferring the budgeting for one year, $2,500,000 of the Palisades Bluff Capital Improvement project and $1,406,368 from the Seismic Retrofit Project for Parking Structures 1-6. This deferral will not negatively impact the implementation of these projects because of the respective schedules of the projects. In addition, as indicated above, by approving the resolution of intent, the Agency could consider the issuance of additional bonds under the $95 million bonded indebtedness limitation. Currently approximately $63 million remains outstanding, leaving at least $32 million available for issuance for projects consistent with the Redevelopment Implementation Plan. BudgeUFinanciallmpact The redevelopment funding commitment to the Project will be authorized for $10,206,823, Staff recommends that an appropriation from the Earthquake Recovery 5 Redevelopment Project Fund (Fund 17) be authorized for $10,206,823 at account C17069104 for fiscal year 2003-04. In order to make these funds available in fiscal year 2003-2004 the following appropriations must be cancelled: $2,500,000 in the Palisades Bluff Capital Improvement Project (C17068504), and $1,406,368 in the Seismic Retrofit Project for Parking Structures 1-6 (C170621 04). Funding for these projects will be returned to their full amounts upon either the Agency receiving additional tax increment revenue or through the Agency's future issuance of tax allocation bonds. Recommendations It is recommended that the City Council take the following actions: 1) Hold a public hearing on the use of redevelopment funds for the Project; 2) Approve budget actions as set forth in the Budget/Financial Impact section; 3) Consent to payment of Agency redevelopment funds to the College for the Project; and 4) Adopt the attached Resolution (Attachment A) determining and finding that redevelopment funds from the Project Area for the Project is of benefit to the Project Area, as well as other determinations as set forth in the Resolution and described above. It is also recommended that the Agency take the following actions: 1) Hold a public hearing on the use of redevelopment funds for the Project; 2) Consent to payment of Agency redevelopment funds to the College for the Project, 6 3) Adopt the attached Resolution (Attachment B) determining and finding that redevelopment funds from the Project Area for the Project is of benefit to the Project Area, as well as other determinations as set forth in the Resolution and described above; 4) Adopt a Resolution (Attachment C) of Intent that allows future redevelopment tax- exempt bond proceeds to be used to reimburse the Agency for costs associated with the Project; and 5) Authorize the Executive Director to Negotiate and Execute a Cooperation Agreement with Santa Monica College to provide a means for carrying out the Project. Attachments: A - A Resolution of the City Council of the City Of Santa Monica Consenting to the Use of Santa Monica Redevelopment Agency Funds for the Santa Monica College Liberal Arts Building Replacement Project 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 Consenting to the Use of Santa Monica Redevelopment Agency Funds for the Santa Monica College Liberal Arts Building Replacement Project and Making Certain Determinations and Findings Pursuant to Health and Safety Code Section 33445 C - A Resolution of the Redevelopment Agency of the City of Santa Monica Declaring Its Intent to Issue Tax-Exempt Bonds to be used to Reimburse the Agency for the Santa Monica College Liberal Arts Building Replacement Project Prior to the Issuance of such Bonds D - Earthquake Redevelopment Area Fund Balance Projection Prepared by: Gordon R. Anderson, Assistant City Manager Jeff Mathieu, Director Resource Management Department Tina Rodriguez, Redevelopment Administrator Ryan Moore, Senior Administrative Analyst 7 z Q I- U W .., o 0::: ll. W U z <( ...J <( aI o Z ::J u.. <( W 0::: <( I-iij Z::::lM W...e ::::!:CJN ll.~0 0"'>- ...Jenu.. wW > W o W 0::: W ~ <( ::J o :I: I- 0::: <( W ,.... q (0 o >- u.. (0 o - II) o >- u.. II) o ~ o >- u.. -.:t o - M o >- u.. cia:lN -.:t:s,N .... M CO N CO -.:t cD .,. -.:ta-.:t ,....0,.... ,........(0 -.ic<i~ ,....-.:t M <0""'0) r-:cDO M:s,N N 0> -.:t. .... C"> C'!. .... -.:t C\I <0 ll'i 0> .... .... o o C\I. o LO .... .... o o LO cri <0 0> o o -.:t 'i 0> o o o. o o <0. C"> o o o o o .... <0 o o C!- O o ~ C\I o o o ci o ~ <0 o o C!- O o LO -.:t o o o ci o -.:t. M ..-M<oco,....o-.:tom ..-0::>0::>0::>,....0<000 0> 0> <0 0::> C"> 0..-0 0 ~C'ir-:~cDci-.icill'i O....,....C\lLO<O,....OO ..- LO -.:to> C\I-.:t NN C'ia:l .... ....C\I - '0 CIl en o 0. o ... 0. ... o '0 '0,$ CIl C C ... 0 Q) CIl CO E Cl EQ) '0 CJ ::::l e C (/).0 ~ro I- en >-Cl.!: l'll CJ C C Z en C ,- W W Q)~~en "'" enD.. Cl~-:s:: "'" - coro:J WCIlU-t:_I:3:CO gfen_rocQ)en- ::J;ma.8:c~~ Oo.-ro .ro....,o w >< (jj 'c - '0 U ro "" W 0. .-0) CJ) ....0 0 .!a Woo >< .!: CJ- t:) ~w5~~a::& z~iij I-...~ <(CIlo.l D::: 0. l'll wOU ll. o - - en Q) .... Q) c <00::> I I ....,.... en en Q) Q) Cl:;:;CIl ct)t) en :i:::J:Jc .... .... .... 8- & Ci5 Ci5 >< ~g>g>~ ~:g:g~ .ororo.... :::ia.a. ia U iij ... o I- o o o ci o .... ci o o C!- O o <0. o .... o o o. o o 0> ll'i .,. .... ,- M .... ...~ N M .,. ,.... o ~ o M II) arl .,. 00'0 000 O,....M ci cD c<i C\l0.... O::>LOM -.ill'ia; ('t):s.~ N 0) ""t .... M C'!. .... -.:t N (0 arl 0) C'!. .... .... o o N o It) ,....~ .... .... o o II) a; (0 CO cD 0) o -.:t a; It) M a; N ... CJ CIl .: '0 c c 'e ~ ~ en ... c CIl E CIl .: ::::l C" CIl 0::: Cl c .. l'll ... CIl 0. o en - ... ... CIl E - a.. ~ CIl l'll ... ... ::::ll- t)~ (/).s Xl o (/) ... Z ::::l .... Cl ~ .....C'O u.. ~ c 0::: ... CIl W l'll 0. :I: a.. >< I-c.iW 0.5 .f! oar.9 I- .~ .c ~~~ W(/) u..... (/).0 Z CIl <(0 0::: I- CJ) ,... CJ) o ,.... (0 N .... o .... CO M II) .... a; .... It) II) -.:t N It) M. (0 .,. - 000 000 O<O-.:t c<i-.ictS -.:t..-N M. M. o. C\I-.:tco ('I):s.ow- l'll ... o ... .0 ::::l (/) .,. -.:t N CJ)~ .... It) CJ) .... M CO N CO -.:t. (0 M N -.:t~ .... M ,.... M .,. - 000 000 O<O-.:t ~cD~ LO ..- M O::>C\I(o cric<icD N:s.~ .,. co -.:t ~ .... N ~ ,... o 0) o M It) arl o o ~ N M (0 o N .,. - 000 000 -.:t 0 -.:t. ll'ia:l,.... 0>..-"" ..-O::>M a:l ...: cD N:s~ .,. N M o. .... N (0 N It) It) -.:t. N It) M cD W U ~ ...J <( aI o Z ::J u.. t:) ~ Z ~ t:) W aI (/) :J .... .s I en en ro a. '0 -c 1ii ro e ai CIl (/) ... C C Q) ~ a. ~ ~ Cu.. e<( ~~ c:UJ CIl . E~ e 'en CJ I C <p (/) -;Q)~ l'll CJ) Z !::.g>w (/) 'en > w:Jw ::JoO::: ZI...J win<( >(/)1- wQ)O O:::...JI- .,. -- t~ t~ q .... C::l CTl. to ,- -- M N -.:t~ .... M ,.... M .,. (/) W 0::: ::J l- e Z W ll. >< W (/) (/) W ...J CJ) W ::J Z W > W 0::: ...J <( I- o I- W U Z <( ...J <( aI o Z ::J u.. t:) Z o Z W o W I- U W .., o 0::: a.. ~1""NM-.:tIt)(O""'COo)~~~~'~~~~~~~~~~~~~~