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SR-0 (118) RA-J '" 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, RA-l lJL . ! 6 f997 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 1 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 2 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 - -- 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 .. ;) 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 4 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 '" -- 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 5 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 6 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 7 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 8 t 6..6 ~ . 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 .. ~ ! " 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 !lu~:hLJ~~ MARSHA JONES MOUTRIE 7 CIty Attorney ~ Adopted and approved this 16th of December, 1997 ~/~ 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 '- . ~ ~ _ \It"._.~ ~ Mana M Stewart, CIty Clerk