SR-410-001 (9)
~ I \
'I/O.... 00 I
f~ Fa
JIIN 2 4 .
JUt - 1 19&6
C/ED:EDD:ERF:mb
council Meeting: June 24, 1986
Santa Monica, California
TO: Mayor and city Council
FROM: City Staff
SUBJECT: Ordinance Specifying the Powers and Procedures for the
Formation of Assessment Districts and Levying of Assess-
ments for the Purpose of Financing Improvements for the
Third street Mall
INTRODUCTION
This report provides the City Council with a summary of the ac-
tions necessary for the establishment of an assessment district
to finance recommended public improvements for the Third street
t-tall.
BACKGROUND
In July, 1984, the City Council directed the Third street
Development corporation to prepare a specific plan for the Third
street Mall. That Plan has now been completed and is scheduled
for consideration by the Planning commission on July 14, 1986.
The Plan makes various recommendations, including the need to
amend the existing zoning code, establish design guidelines for
public and private improvements, construct various common area
and parking improvements, and to establish an assessment district
to finance the recommended improvements.
- 1 -
3-'F
JUt. 1 JiB,
JUN 2 4 '.
. -\
DISCUSSION
Based on Council direction during previous reviews of the Plan,
city staff has investigated the feasibility of proceeding with
the establishment of an assessment district to facilitate the
financing of capital improvements by the city for the Third
street Mall. In order to initiate the legal proceedings needed
to establish such a district, it is necessary that the City Coun-
cil approve a procedural ordinance authorizing the formation of
such assessment districts, and the levying of assessments on
those properties benefiting from needed public improvements.
This would be followed by the adoption of succeeding resolutions
by the city Council, ultimately concluding in the sale of securi-
ties. These resolutions would include a resolution of intent
establishing the legal and economic parameters of the district,
the adoption of an Engineer's Report describing to the allocation
of costs and ascribed benefits to each parcel, and the approval
of subsequent legal requirements approving the sale of
securities.
At this time, city staff is proceeding to simultaneously process
the approval of the Mall specific Plan and the drafting and adop-
tion of necessary legal requirements in order to preserve as much
flexibility as possible for the City Council in the structuring
of any securities financing for the Mall. The various tax reform
proposals currently before Congress may limit the future
flexibility the City may have in the use of tax exempt security
proceeds, particularly as to the use of arbitrage income and the
- 2 -
~ .\~
time span in which funds must be expended. Up until this time
the securities community have been relying on a joint statement
of Congress establishing September I, 1986 as the inaugural date
for subsequent compliance with any changes to the tax code. By
proceeding on a parallel course of the Plan's adoption and
financing, city staff is attempting to conclude the sale of
securities before the September 1st date.
CONCLUSION
ci ty staff is in the process of preparing the procedural or-
dinance for first reading at the city Council's carryover meet-
ing of July 1st. Staff will be returning to the City council for
a second reading of the ordinance at the regular scheduled Coun-
oil meeting of July 8th.
Prepared by: Peggy Curran, Acting Director
Community & Economic Development Department
Ernesto R. Flores, Manager
Economic Development Division
adsr
- 3 -