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D~:C , 6 1997
RMD RDA F \RESQURCE\SHARE\JM\ANNREPRT WPD
Council Meeting December 16,1997
Santa Monica, California
TO Redevelopment Agency ChaIrperson and Board
FROM Redevelopment Agency Staff
SUBJECT Approval of Annual Report for Fiscal Year 1996-1997 for the
Redevelopment Agency of the CIty of Santa MonIca
INTRODUCTION
The Callforma Health & Safety Code requires that the Redevelopment Agency file an
annual report with the Controller of the State of California ThIs staff report
recommends approval of the attached Santa Monica Redevelopment Agency Annual
Report for Fiscal Year 1996-1997, which mcludes an IndependentflnanClal audit,
pursuant to Section 33080 1 of the Callforma Health and Safety Code
BACKGROUND
The purpose of the Annual Report of Fmanclal transactions of the Redevelopment
Agency to the State Controller IS to provide financial data to the state legislature and
other Interested parties regarding thiS agency and Its actiVities
ThiS report Includes the follOWing
1) An Independent fmanclal audit report conducted In accordance with generally
accepted auditIng standards,
2) A fiscal statement that provides information on the outstanding Indebtedness of
and the amount of tax Increment revenue generated by the Agency and by each
project area,
3) A deSCription of the Agency's activities affecting hOUSing and displacement,
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4) Any other Information which the Agency believes useful to explain Its programs
and activities,
DISCUSSION
Since the annual report must Include an independent financial audit statement,
submisSion of the report must cOincIde with the completion of the City's annual audit
The Agency contracted wIth the accountIng firm of KPMG Peat Marw!ck to complete an
Independent financial audit for the fiscal year from July 1,1996 to June 30, 1997,
(complYing with standards set out In Section 33080 1 of the California Health and
Safety Code) KPMG Peat MafWlck found that the Agency's records fairly represent the
financial position of the vanous funds and account groups of the Redevelopment
Agency as of June 30, 1997 and made no negative audit findings
Pursuant to the California Community Redevelopment Law, the Redevelopment Agency
IS reqUired to set aSide at least 20% of the tax increment It receIves each year for
purposes of increasing, Improving and preserving the community's supply of low and
moderate Income housmg For fiscal year 1996-1997, a total of $667,955 of agency tax
mcrement funds have been set aSide for low and moderate Income housmg as follows
Ocean Park (1a) $277,972, Ocean Park (1b) $37,375, Downtown Project - $226,409,
Earthquake - $126,199 As a result the Agency satisfied the 20% set-aSIde
reqUirement for all project areas
The attached annual report provides specific InformatIon on housing and other activities
of the Redevelopment Agency In fiscal year 1996-1997 Adoption of the annual report
IS required prior to Its transmittal to the State Controller.
BUDGET/FISCAL IMPACT
There are no budget/fiscal Impacts resulting from the approval of the Redevelopment
Agency's Annual Report of Fiscal Year 1996-1997
RECOMMENDATIONS
It IS recommended that the Redevelopment Agency approve the Annual Report and
direct the Executive Director to transmit the report to the Controller of the State of
California
Prepared by Jeff Mathieu, Director of Resource Management
MIke Dennis, Director of Fmance/Agency Controller
Robert MonCrief, Housing Manager
Krrt Lyle, Administrative Services Officer-Resource Management
Tina Rodriguez, Earthquake Recovery Coordmator
Marty Kennerly, Accountant - Housing DIVISIon
Ralph Bursey, City Treasurer
DaVId Carr, Assistant CIty Treasurer
BIll Jlas, Senior Accountant
Attachment. Santa Monica Redevelopment Agency Annual Report for FIscal Year 1996-1997
KPMG Peat Marwlck Independent Auditor's Report, 1996-1997 Tax Year 1997-
98 Statement Of Indebtedness
ANNUAL REPORT FOR FISCAL YEAR 1996-97
REDEVELOPMENT AGENCY OF THE CITY OF SA~T A :MONICA
INTRODI;CTION
As reqUIred by CalIfornIa Health & Safety Code SectlOn 33080 L the Redevelopment Agency
must file an annual report With the CalIfornIa State Controller withm SiX months of the end of the
Agency's fiscal year The annual report must contam
1) 1'\11 mdependently prepared finanCial audIt report conducted m accordance w,th generally
accepted auditmg standards
2) A fiscal statement that provides mformatlOn on the outstandmg indebtedness of, and
the amount of tax mcrement revenue generated by the Agency and by each proJ ect area
3) A specific descnptlOn ofthe Agency's actIvIties affectmg housmg and any dIsplacement
4) Any other mformatiOn wluch the Agency belIeves useful to explam its programs and
actiVITIeS
TIns annual report for the Santa MOllIca Redevelopment Agency contams the mformatlOn
requIred by State Law and also mdudes a reVIew of the objectIves and actIVItles of the
Redevelopment Agency m FY 1996-97, and a prene1-\' of the Agency's ObjectIves and work plan
for FY 1997-98
DESCRIPTION OF REDEVELOPMENT PROJECTS
The Santa ~omca Redevelopment Agency was establIshed on August 13, 1957, and has four
redevelopment project areas
1) Ocean Park Redevelopment Project (la)
2) Ocean Park Redevelopment Project (1 b)
3) DO\vntovm Redevelopment Project
4) Earthquake Recovery Redevelopment Project
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Ocean Park Redevelopment Project
The Ocean Park Redevelopment Project was the first project to be undertaken by the Santa
Momca Redevelopment Agency It \vas desIgnated for study as a potential redevelopment
project ill Apnl1958 when an apphcatiOn was submItted to the Federal government for survey
and planmng funds WIth these funds, the Agency commenced preparatiOn of formal plans for
the area encompassillg thIrty-three acres ofland ill the southwest comer of the CIty
In October 1959. as a result of reductIon ill the avaIlabIlity of federal funds for the proJect, the
proposed thirty-three acre Ocean Park proJ ect was diVIded into two separate proJ ects so that at
least one project could proceed WIth the funds aVailable to the Agency at the hme
Ocean Park Redevelopment Project(1a)
Ocean Park Redevelopment Project (la) encompasses the northern 25 acres of the ongmally
proposed 33 acre project The Redevelopment Plan for thIS Project \vas approved by the CIty
CounCil on June 30, 1960, followmg reqUIsIte studIes and heanngs by the Plannmg CommISSIOn.
Redevelopment Agency. and the CIty CouncIl The Redevelopment Plan was amended on
November 14. 1967. pnnClpally to change the permItted land uses 1ll the project area
Ocean Park Redevelopment Project (la) IS bounded by Ocean Park Boulevard on the north,
){eIlson Way on the east, Ocean Park Project (lb) on the south, and the State beach parkmg lots
and beach on the west
Ocean Park Redevelopment Project (Ia) was completed m May 1987 The project contams two
17 story hIgh rIse apartment bUIldmgs \",hleh were completed m 1967 Each tower contams 250
rental apartment umts On both SIdes of the apartment complex IS located the Sea Colony
condommmm project Sea Colony contams 340 condommmm umts winch were constructed III
two phases Phase I of the development was completed m 1980 and Phase 2 was completed m
May 1987 Ocean VIew Park IS a publIc park located III the center of ProJect Area (la) facmg the
ocean
Ocean Park Redevelopment Project (lb)
Ocean Park Redevelopment ProJ ect ( I b) encompasses the southern eIght acres of the ongmally
proposed 33 acre project The Redevelopment Plan for tills Project was approved by the CIty
CounCIl on January 24, 1961, followmg reqUiSIte studIes and heanngs by the Planrung
CommlsslOn, Redevelopment Agency. and the City CounCIl The Redevelopment Plan was
amended on January 26, 1965, and agam on September 12, 1972. pnnclpally to change the
permmed land uses III the project area
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Ocean Park Redevelopment Project (lb) IS bounded by Ocean Park Redevelopment Project (la)
on the north. NeIlson \Vay on the east, the Clty hmIt on the south and the State beach parkmg
lots and beach on the west
Ocean Park Redevelopment Project (1 b) was completed m 1983. The project contams nvo seruor
cltIzen resldentlal apartment complexes and a fonner utlhty bmldmg Nellson VIllas contams 100
rental apartment uruts and ,vas completed In 1977 Barnard Park Vlllas contams 61 umts and
was completed m 1983 A utlhty bUlldmg was adapted m 1987 to house offices and art storage
for the Eh Broad Fmmly Art FoundatlOn
Downtown Redcyelopment Project
The Downtown Redevelopment Project encompasses about 9 9 acres of property located m the
downtown core of Santa Momca The Downtown Redevelopment Project lS bounded by
Broadway on the north, 4th Street on the east. Colorado Avenue on the south, and 2nd Street on
the west The Redevelopment Plan for the DO\\'TIto\\'ll Project was approved by the CIty Councll
m January 1976
The DO\vntown Redevelopment Project was completed m 1980 It conslsts of Santa Momca
Place and the adJOlnmg parkmg structures The retml portion of the project contains
approxlmately 570,000 square feet of floor area and mcludes two major departtnent store anchors
and 160 specIahty retml shops and food estabhshments, all of WhICh are hnked by tn-level
enclosed pedestrIan space that e-xtends dIagonally across hvo CIty blocks The project also
Includes two Agency-owned parkmg structures contmnmg 2, 020 parkmg spaces
Earthauake Recoverv Redevelooment Proiect
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The Earthquake Recovery Redevelopment Project "vas establIshed III FY 1993-94 The project
area mcludes bmldmgs damaged In the January 1994 Northndge earthquake, mc1udmg
approXImately 90% of all red-tagged and 80% of all yelluw-tagged bUIldmgs III the CIty The
project area IS bounded on the east by Cloverfield and 26th Street. on the west by the PaCIfic
Coast HIghway/Beach Promenade. on the south by approxImately PICa Boulevard and on the
north by Montana Avenue
Off-SIte Projects
Both the Ocean Park Redevelopment Projects and the DowntowTI Redevelopment Project mclude
certaIn off-site Improvements that were found to be of benefit to each project In addItion to
vanous housmg and other related projects for low and moderate-mcome mdIvIduals and fmmhes
elther funded m whole or In part by each proJect. major off-SIte lmprovements mc1ude
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Ocean Park Projects Off-SIte Improvements
1) Renovation and enhancement of the nearby beach parkmg lot and surroundmg streets
2) RehabIlitatlOn and expanSiOn of the Ocean Park Branch LIbrary
3) RehabIlitatiOn of 22 apartment umts for very low mcome semor and famIly households at
175 Ocean Park Boulevard
4) ConstructlOn of 55 umts ofrental apartments for low and moderate mcome famIlies
located on vanous sites m the Ocean Park neIghborhood of the Cuy
5) ConstructIOn or rehabIlItatlOn of 313 rental umts at vanous sItes m Santa :\1omca
6) Purchase of a parkmg easement for a 40 umt semor 202 low mcome housmg project
located on Lmcoln Boulevard at Ashland Avenue
DO\vnto\.vn Project Off-SIte Improvements
1) Vanous Improvements adjacent to the Project at the ThIrd Street Promenade and Bayslde
Dlstnct adjacent to the Downtov./ll Redevelopment Project were found to be of-benefit to
the Do\vntown Project Pnmary fundmg for these Improvements was proVIded by other
sources
AGEl'\CY OBJECTIVES "<\. ~D ACTIVITIES FOR FISCAL YEAR 1996-97
In FISCal Year 1996-97. the Santa MOllIca Redevelopment Agency pnmanly focused Its efforts
on contmumg on-gomg functions III support of eXlstmg and proposed housmg projects
SpeCIfically, the followmg actiVItIes were accomplished
Ocean Park projects( 1a) and( 1b)
Objective:
Analyze fundmg proposals for very low, low and moderate mcome housmg
projects
ThIS objectIve IS on-gomg Dunng FY 96-97, pre-development actrntles were complIed for a 40
urut SectIOn 202 lo\\o~ Income semor housmg project on Lmcoln Boulevard at Ashland Avenue
PrevIOusly funds were allocated for the purchase of a parkmg easement for the project
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Objective:
ASSIst a housmg development proJ ed for very low mcome tenants wIth
development costs
In FY 96-97 the Agency commItted $817,534 to the Cpward Bound, 70-umt, SectlOn 202 low-
mcome semor housmg project located at 1011 11th Street
The Ocean Park Housing Trust Fund paid $114,748 subSIdIze 22 units ofhousmg for very low-
mcome semor and famIly households through the lease payment made by the Agency on behalf
ofthe 175 Ocean Park Boulevard pubhc housmg development operated by the County of Los
Angeles ThIS has been an ongomg actIVIty of the Redevelopment Agency for many years
Downtown Proiect
Obiective:
Objective:
.Analyze fundmg proposals for very low, low and moderate Income housmg
proJ ects
ASSIst the 66-umt SectIOn 202 Semor Housmg development project WIth pre-
development costs
ThIS ObjectIve IS on-gomg In FY 96-97, chscussIOns contmued on fundmg alternatIves for a 66-
urnt SectlOn 202 semor housmg project at 1116-1146 4th Street A number of unresolved Issues
related to thIS prOject wIll be resolved m FY 1997-98
Obiective:
Objective:
ASSISt a housmg development project for very 10\v mcome tenants WIth
redevelopment revenues
Contmue to Implement publIc Improvements m the Thud Street Mall Assessment
DIstnct and retam a consultant for an actual study and analYSIS of an overall
dO\'>'llto\vn parkmg program
Earthquake Recovery Project
Obiective:
Obiective:
Analvze and determme extent of base year and current vear assessed valuatIOn
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errors as reported by the County and work WIth County offiCIals to make
appropnate correctIOns to assessed valuations and allocate tax lllcrement
revenues as warranted
Explore Housmg fundmg needs, as Identlfied by the five year ImplementatIOn
plan
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The Agency also appropnated Its VItale GIlpm housmg funds to assIst ill the housmg projects
descnbed above The Vitale GIlpm Fund resulted from a legal settlement requmng the Agency
to set aSIde a portiOn of the tax mcrement revenue generated by the Do\\<ntown Redevelopment
Project to fund programs that provIde housmg for low and very low lUcorne persons and famIlIes
AGENCY OBJECTIVES FOR FISCAL YEAR 1997-98
The Agency has the followmg Objectives for FIscal Year 1997-98
Ocean Park Redevelopment Projects (1a) & (lb)
Objective:
Objecth'e:
Objective:
ASSlst the 40 umt Section 202 low mcome semor housmg project at 2807 Lmcoln
Boulevard WIth redevelopment and constructiOn costs
Assist the 70 umt Section 20l1ow income senior housmg project bemg developed
by Upward Bound at 1011 11th Street with constructiOn costs
Analyze fundmg proposals for very low, low and moderate mcome housmg
proJ eets
Downtown Redevelopment Project
Objective:
Objective:
Objective:
ASSIst the 66 umts Sectton 202 semor housmg development proJ ect at 1116-1146
4th Street \vlth redevelopment costs
ASSIst the 70 umt SectIon 202 low meome semor housmg project bemg developed
by 1;pward Bound at 1011 lith Street With redevelopment and constructIOn
costs
Analyze fundmg proposals for very low, low and moderate mcorne housmg
proJ eets
Earthquake Recovery Project
Objective:
Objective:
Analyze fundmg proposals for very low, low and moderate lUcorne housmg
projects
.:\1omtor pendmg assessment appeals and proVIde expert assessment value
AnalysIs to County for use at appeal heanngs III order to determme an eqUItable
valuatIOn of real property
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AGENCY ACTIVITIES AFFECTING HOUSINGIHOUSING SET ASIDE FUNDS
The Santa MOnIca Redevelopment Agency dId not partIcIpate III any actIVItIes that resulted In the
dIsplacement. relocatIon or demolItIon ofhousmg The Agency also dId not conduct relocatIOn.
demolItIOn, or dIsplacement actIVItIes outsIde of the project areas m FY 1996-97 and no such
actIvIty IS expected to occur m FY 1997-98
The Agency contnbuted S667.955 mto Its Low & Moderate HOUSIllg Fund, reflectmg 20% of the
tax Increment revenues receIved by the Agency m FY 96/97 These funds wIll be used III support
oflmv and moderate mcome hOUSIng III future years The follo\:v1ng represents the project
breakdown of these contnbutlons
Ocean Park Redevelopment Project (1 a)
In FY 96-97, the Ocean Park Redevelopment Project (la) receIved $1,389.859 m tax Illcrement
revenue of whIch 5277,972 was set aSIde for low and moderate mcome housing purposes The
remamder of the funds were avaIlable for debt servIce on bonds and assocIated admmIstratIve
costs
Ocean Park Redevelopment Proiect (1 b)
In FY 96-97, the Ocean Park Redevelopment Project (lb) receIved a total of5186,876 m tax
mcrement revenue of WhICh 537,375 was set aSIde for lo,,"v and moderate mcorne housmg
purposes The remamder of the funds were avaIlable for debt servIce on bonds and assocIated
admllustratIve costs
Downtown Redevelo!lment Project
In FY 96-97, the Dmvntown Redevelopment Project receIved a total of51,132,044 III tax
mcrement revenue of whIch S226.409 \vas set aSIde for low and moderate mcome housmg
purposes The remamder of the funds were aVaIlable for debt serVIce on bonds and assocIated
adrmmstTatlVe costs
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Earthquake Recovery Redevelopment Project
In FY 96-97, the Earthquake Recovery Redevelopment Project receIved a total of $630,993 tax
mcrement revenues ofwlnch 5126.199 was set aSIde for low and moderate lUcome housmg
purposes An addItional $138,965 m AB1290 payments wIll be dIstnbuted to other taxmg
entitles mcludmg the CIty of Santa Momca
Prepared by
Jeff MathIeu, Duector of Resource Management
MIke DennIs. DIrector of Fmance/Agency Controller
Robert Moncnef, Housmg Manager
Kin Lyle, Achmmstranve Services Officer, Resource Management
Tma Rodnguez, Earthquake Recovery Coordmator
Marty Kennerly, Accountant-Housmg DIVlslOn
Ralph Bursey, CIty Treasurer
DaVId Carr. ASSIstant CIty Treasurer
BIll lIas, Semor Accountant
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f \atty\munl\laws\jl\quake res
City Council Meeting 12-16-97
Santa MOnica, Callfomla
RESOLUTION NUMBER 9228(CCS)
(City Council Senes)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA DECLARING
THE EXISTENCE OF A CONTINUING LOCAL EMERGENCY
WHEREAS, on January 17,1994, an earthquake struck Southern California causing
severe damage within the City of Santa MOnica, and
WHEREAS, on January 17, 1994, as a result of the earthquake the Clty.s Director
of Emergency Services Issued a declaration of local emergency, and
WHEREAS, on January 17, 1994, as a result of the earthquake a state of
emergency was declared In the County of Los Angeles by the federal, state and county
govemments, and
WHEREAS, as a result of the earthquake a state of local emergency continues to
eXist Within the City of Santa MOnica,
NOW, THEREFORE, the City Council of the City of Santa MOnica does resolve and
proclaim as follows
SECTION 1 The City Council declares that a state of local emergency continues
to eXist Within the City of Santa MOnica
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SECTION 2 The City CouncIl directs the DIrector of Emergency Services or his or
her designee to take such actions as are appropnate to the fullest extent provided by
federal, state and local law, to protect the public health, welfare, safety and property of the
resIdents of the City of Santa MOnica
SECTION 3 The City CouncIl further authorizes the Director of Emergency
ServIces or hiS or her deSignee to negotiate or execute such contracts, agreements,
applications or other documents With such other federal, state or local agencies or other
groups and organizations as are necessary to provide or to obtain emergency aid,
assIstance or services to the City of Santa MOnica and to contract for the Immediate
expenditure of public funds to safeguard life, health or property including, when necessary,
to protect public health and safety to expedite, Including, but not limited to shortening all
required notIce periods, or waive competitive bidding procedures for publiC works and
other City projects
SECTION 4 A copy of thiS Resolution shall be forwarded to the State Director of
the Office of Emergency Services With a request that he or she find It acceptable
SECTION 5 The City Clerk shall certify to the adoption of thiS Resolution, and
thenceforth and thereafter the same shall be In full force and effect
A~PROVE~ AS ~ FORM
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MARSHA JONES MOUTRIE 7
CIty Attorney
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Adopted and approved this 16th of December, 1997
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Robert Holbrook, Mayor
I, Mana M Stewart, City Clerk of the City of Santa MOnica, do hereby certify that
the foregoing Resolutlon 9228 (CCS) was duly adopted at a meeting of the City Council
held on the 16th of December, 1997 by the following vote
Ayes Councllmembers Feinstein. Genser, Greenberg, Holbrook, O'Connor,
Rosenstein
Noes Councllmembers None
Abstain Councllmembers None
Absent Councllmembers Ebner
ATTEST
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Mana M Stewart, CIty Clerk