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SR-906-000 (14) CCS:ADMIN:BS:JM:F:\CCSADMN\SHARE\STAFFREPORTS\415PCHHUD-GRANT Council Meeting: April 13, 2004 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Authorization for the City Manager to Submit Applications and Negotiate and Execute Agreements with the U.S. Department of Housing and Urban Development to Accept Grant Funds to Support the Reuse of 415 Pacific Coast Highway Introduction This report recommends that the City Council authorize the City Manager to submit all necessary documents to the U.S. Department of Housing and Urban Development (HUD) to accept grant funds in the amount of $409,000 to support reuse activities at 415 Pacific Coast Highway (415 PCH) and appropriate the grant funds. Background This 5-acre beachfront property at 415 Pacific Coast Highway is the responsibility of the City under its long-term agreement with the State of California for oversight of the Santa Monica State Beach. Santa Monica?s public beach areas anchor the southwestern corner of the Santa Monica Mountains National Recreation Area (SMMNRA) ? the largest federally designated urban recreational area in the United States. Upon approval of the Reuse Plan for 415 PCH in July of 1999, the City Council authorized the City staff to pursue grant funding opportunities to support the redevelopment of the site. Since that time, the City has received $350,000 in State Proposition 12 funding and $ 409,000 in federal funding. This federal funding was approved by the U.S. Congress as referenced in the HUD Appropriations Acts for FY 2002 and FY 2003 and recognizes the potential of the site to serve as a ?gateway? to 1 regional recreational areas, specifically the SMMNRA. This possibility was included in the Reuse Plan which provided for visitor services and interpretative elements on the site. Discussion In order to receive the currently appropriated federal funds, the City must submit an application form, federal assurances and certifications that are standard for receipt of federal funding. The project applications may be amended at a later date to provide further detail once a final development project is approved by the City Council in FY 2004-05. Budget/Financial Impact The grant amounts of $275,000 for FY 2002 and $134,000 for FY 2003 will supplement other funding sources to support the redevelopment of the site. The following budget changes will be needed to record receipt of the grant funds and make it available for program use: 1) Establish a revenue budget in the amount of $409,000 at account number 20501.403550; 2) Appropriate $409,000 in capital improvement project number C200525.589000 ? 415 PCH Federal Grant. Recommendation Staff recommends that the City Council (1) authorize the City Manager to submit the necessary applications for obligating the grant funds and to negotiate and execute all agreements related to these grants and (2) approve the appropriation and other budgetary action outlined in the Budget/Financial Impact Section of this report. Prepared by: Barbara Stinchfield, Director, Community and Cultural Services 2