SR-413-001 (19)
RMD:RDA:TR:F:\RESOURCE\SHARE\STAFFREPORTS\RDA Annual Report 00-01 .doc
Council Meeting: December 18, 2001 Santa Monica, California
To: Mayor and City Council
Chairperson and Redevelopment Agency
From: City Staff
Subject: Annual Report for Fiscal Year 2000-2001 for the Redevelopment
Agency of the City of Santa Monica
INTRODUCTION
The California Health & Safety Code requires that the Redevelopment Agency
present an annual report to the City Council and file such annual report with the
Controller of the State of California no later than December 31, 2001. This staff
report presents the attached Santa Monica Redevelopment Agency Annual
Report for Fiscal Year 2000-2001, which includes an independent financial audit,
pursuant to Section 33080.1 of the California Health and Safety Code.
BACKGROUND
The purpose of the Annual Report of the Redevelopment Agency is to provide
financial and housing data to the state legislature and interested parties
regarding the Agency and its activities. The attached report includes the
following:
1) Annual Report Summary for Fiscal Year 2000-2001, which includes
information which the Agency believes useful in explaining its programs
and activities (Attachment A);
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2) An independent financial audit and report conducted in accordance with
generally accepted auditing standards (Attachment B);
3) A fiscal statement that provides information on the outstanding
indebtedness and the amount of tax increment revenue generated by the
Agency in total and by each project area (Attachment C); and
4) A description of the Agency’s activities including those affecting housing
and displacement (Attachment D)
DISCUSSION
The accounting firm of KPMG completed an independent financial audit for the
financial year from July 1, 2000 to June 30, 2001, in compliance with standards
set out in Section 33080.1 of the California Health and Safety Code. KPMG
issued an unqualified audit report which means that the Agency’s records
accurately and fairly represent the financial position of the various funds and
account groups of the Redevelopment Agency as of June 30, 2001.
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 the purposes of increasing, improving and preserving the community’s
supply of low and moderate income housing. For the fiscal year 2000-2001, a
total of $ 4,285,959 of Agency tax increment funds was set aside for low and
moderate income housing to meet the 20% set aside requirement as follows:
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2000-2001 Redevelopment Agency Housing Set-Aside
Ocean Park 1A $ 583,730
Ocean Park 1B $ 47,450
Downtown Project $ 261,055
Earthquake Recovery $3,393,724
Total $4,285,959
The attached annual report provides specific information on housing and other
activities of the Redevelopment Agency in Fiscal Year 2000-2001. Presentation
of the annual report to the City Council is required prior to its transmittal to the
State Controller.
BUDGET/FISCAL IMPACT
There is no budget/fiscal impact resulting from the approval of the
Redevelopment Agency’s Annual Report of Fiscal Year 2000-2001.
RECOMMENDATION
City Council
It is recommended that the City Council receive and file the Annual Report for
Fiscal Year 2000-2001 for the Redevelopment Agency of the City of Santa
Monica.
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Redevelopment Agency
It is recommended that the Redevelopment Agency direct the Executive Director
of the Redevelopment Agency to transmit the report to the Controller of the State
of California.
Prepared by: Jeff Mathieu, Director of Resource Management
Mike Dennis, Director of Finance/Agency Controller
Robert Moncrief, Housing and Redevelopment Director
Tina Rodriguez, Redevelopment Administrator
Martin Kennerly, Administrative Services Officer
Bill Jias, Senior Account
Rod Merl, Senior Administrative Analyst
Attachment A – Annual Report Summary for Fiscal Year 2000-2001
Attachment B - KPMG Independent Auditor’s Report for 2000-2001
Attachment C - State Auditor Controller’s Report of Financial Transactions and
statement of indebtedness for Tax Year 2000-2001
Attachment D – State Housing and Community Development Department Annual
Report of Housing Activity of Community Redevelopment
Agencies for the Fiscal Year Ended 06/30/2001
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Attachment A
ANNUAL REPORT SUMMARY
FOR FISCAL YEAR 2000-2001
REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
I. INTRODUCTION
As required by California Health & Safety Code Section 33080.1, the
Redevelopment Agency must file an annual report with the California State
Controller within six months of the end of the Agency’s fiscal year. The
annual report must contain:
1) An independently prepared financial audit report conducted in
accordance with generally accepted auditing standards
(Independent Auditor’s Report)
2) A fiscal statement that provides information on the outstanding
indebtedness of , and the tax increment revenue generated by, the
agency and by each project area (State Controller’s Report of
Financial Transactions of Community Redevelopment Agencies
and Statement of Indebtedness)
3) A specific description of the Agency’s activities affecting housing
and any displacements (Annual Report of Housing Activities of
Community Redevelopment Agencies)
4) Any other supplemental information that the Agency believes useful
in explaining its programs and activities.
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This annual report for the Santa Monica Redevelopment Agency contains
information required by state law and includes a review of the objectives and
activities of the Redevelopment Agency in FY 2000-2001, and previews the
Agency’s objectives and work plan for FY 2001-2002.
II. DESCRIPTION OF REDEVELOPMENT PROJECT AREAS
The Santa Monica Redevelopment Agency was established on August 13, 1957,
and has four redevelopment project areas:
Ocean Park Redevelopment Project 1A
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Ocean Park Redevelopment Project 1B
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Downtown Redevelopment Project
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Earthquake Recovery Redevelopment Project
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Ocean Park Redevelopment Project 1A
The Ocean Park Redevelopment Project was the first project to be undertaken by
the Santa Monica Redevelopment Agency. It was designated for study as a
potential redevelopment project in April, 1958 when an application was submitted
to the federal government for survey and planning funds. With these funds, the
Agency commenced preparation of formal plans for the area encompassing
thirty-three acres of land in the southwest corner of the City.
In October, 1959, as a result of the reduction in the availability of federal funds
for the project, the Agency divided the proposed thirty-three acres into two
separate projects so that at least one project could proceed with the funds
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available to the Agency at the time. Ocean Park Redevelopment Project 1A
encompasses the northern 25 acres of the originally proposed thirty-three acre
project. The City Council approved the Redevelopment Plan for this project on
June 30, 1960, following requisite studies and hearing by the Planning
Commission, Redevelopment Agency and the City Council. The Redevelopment
Plan was amended on November 14, 1967, principally to change the permitted
land uses in the project area.
Ocean Park Redevelopment Project 1A is bounded by Ocean Park Boulevard on
the north, Neilson Way on the east, Ocean Park Project 1B on the south and the
State beach parking lots and the beach itself on the west.
Ocean Park Redevelopment Project 1A was completed in May 1987. The project
contains two 17-story high-rise apartment buildings, known as Santa Monica
Shores, that were completed in 1967. Each tower contains 250 rental apartment
units. The property changed ownership in May of 1999. Also within the Project
Area, on both sides of the apartment complex, is the Sea Colony condominium
project. Sea Colony contains 340 condominium units, which were constructed in
two phases. Phase one of the development was completed in 1980 and phase
two was completed in May of 1987. Located in the center of Project Area 1A,
facing the Ocean, is a public park called Ocean View Park.
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Ocean Park Redevelopment Project 1B
Ocean Park Redevelopment Project 1B encompasses the southern eight acres
of the originally proposed 33-acre project. The City Council approved the
Redevelopment Plan for this project on January 24, 1961, following requisite
studies and hearings by the Panning Commission, Redevelopment Agency, and
the City Council. The Redevelopment Plan was amended on January 26, 1965,
and again on September 12, 1972, principally to change the permitted land uses
in the project area. Ocean Park Redevelopment Project 1B is bounded by
Ocean Redevelopment Project 1A on the north, Neilson Way on the east, the
City limit on the south and the State beach parking lots and the beach itself on
the west.
Ocean Park Redevelopment Project 1B was completed in 1983. The project
contains two senior citizen residential apartment complexes and a former utility
building. Neilson Villas contains 100 rental apartment units and was completed in
1977. Barnard Park Villas contains 61 units and was completed in 1983. A utility
building was adapted in 1987 to house offices and art storage for the Eli Broad
Trust Art Foundation.
Projects Funded by the Ocean Park Redevelopment Projects
The Ocean Park Redevelopment Project Areas provided funds for various
housing and other related projects for low and moderate income individuals and
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families. In addition, certain projects found to be of benefit to the project area
were funded by the agency. These other projects include:
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Renovation and enhancement of the nearby beach parking lot and
surrounding streets.
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Rehabilitation and expansion of the Ocean Park Branch Library.
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Rehabilitation of 22 apartment units targeted to very low income senior
and family households at 175 Ocean Park Boulevard.
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Construction of 55 rental apartment units for low and moderate income
families at various sites in the Ocean Park neighborhood.
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Construction or rehabilitation of 313 rental units at various sites in Santa
Monica.
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Purchase of a parking easement for a 40 unit senior 202 low income
housing project.
Downtown Redevelopment Project
The Downtown Redevelopment Project encompasses about 9.9 acres of
property located in the downtown core of Santa Monica. The Downtown
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Redevelopment Project is bounded by Broadway on the north, 4 street on the
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east, Colorado Avenue on the south and 2 Street on the west. The City Council
approved the Redevelopment Plan for the Downtown Project in January 1976.
The Downtown Redevelopment Project was completed in 1980. It consists of
Santa Monica Place and the adjoining parking structures. The retail portion of
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the project contains approximately 570,000 square feet of floor area including
two major department store anchors and 160 specialty retail shops and food
businesses, all of which are linked by a three level enclosed pedestrian space
that extends diagonally across two city blocks. The project’s adjacent two
Agency owned parking structures provide 1,956 parking spaces.
Projects funded by the Downtown Project
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The Downtown Redevelopment Project Area funded certain projects found
to be of benefit to the project area. Various improvements adjacent to the
Project at the neighboring Third Street Promenade and Bayside District
were funded by the Agency, but the primary funding for these
improvements came from other sources.
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The Downtown Project Area also provided funds for numerous housing
projects serving low and very low income persons and families.
Earthquake Recovery Redevelopment Project
The Earthquake Recovery Redevelopment Project was established in 1994. The
project area includes the structures predominately damaged in the January 1994
Northridge earthquake. Approximately 90% of all red-tagged and 60% of all
yellow-tagged buildings in the City were in the project area. The project area is
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basically bounded on the east by Cloverfield and 26 Street, on the west by
Pacific Coast Highway/Beach Promenade, on the south generally by Pico
Boulevard and on the north by Montana Avenue. The City Council approved the
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Redevelopment Plan for the Earthquake Recovery Project Area on June 21,
1994.
Projects funded by the Earthquake Recovery Project
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Disaster Prevention and Mitigation
Seismic retrofit of public parking structures and essential public
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buildings
Pacific Bluff stabilization
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Commercial Revitalization
Pico Streetscape Commercial Revitalization Project
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Pico Crosswalk Enhancement Program
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Fourth Street new parking structure located at 1116-1146 4 Street
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Community Revitalization
Civic Center Land Acquisition
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Virginia Avenue Park expansion
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Institutional
Replacement of earthquake-damaged Municipal Pool on the Santa
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Monica College campus
III. AGENCY OBJECTIVES AND ACTIVITIES FOR THE FISCAL YEAR
2000-2001
The Agency’s objectives and activities for the last fiscal year, which implement
the 1999 Implementation Plan for Ocean Park 1A, Ocean Park 1B, Downtown
and Earthquake Recovery Redevelopment Project Areas are discussed below.
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Non-Housing Objectives and Activities
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Disaster Prevention and Mitigation Programs – The Agency funded
engineering design services of $1,098,000 for the seismic retrofit of
downtown parking structures 7 and 8.
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Institutional – The Agency funded $1,000,000 of replacement costs for the
previously earthquake damaged Municipal Pool Complex on the Santa
Monica College campus.
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Disaster Prevention and Mitigation – The Agency is funding Phase 1
management services ($750,000) for the Santa Monica Palisades Bluff
Stabilization Project. Phase 1 management includes oversight and
coordination of geotechnical investigation, field and laboratory test, public
outreach, environmental clearance, consideration of alternative repair
approaches and development of final design recommendations for
correction and stabilization, board and commission approvals, working
drawings and bid specifications.
Affordable Housing Objectives and Activities
The Agency continued to increase, preserve and improve the supply of
affordable housing in the City in 2000-2001 fiscal year. Consistent with the Five
Year Implementation Plan for the FY 1999-00 through FY 2003-4, the Agency in
FY 2000-2001 implemented the acceleration of redevelopment revenue for
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affordable housing activities. In addition, the Agency has directed all
redevelopment funds from Ocean Park 1A, 1B and Downtown Project Areas, net
of debt service and administrative costs, to fund housing activities. The following
scheduled and additional housing activities are consistent with the objectives of
the Five Year Implementation Plan. A key operating goal of the Agency is to
secure as many low and moderate housing opportunities in the city as possible.
The strategy to accomplish this was to focus on funding property acquisitions
primarily and subsequently to accomplish building rehabilitation. A number of the
sites listed below have been fully acquired and are still undergoing rehabilitation
work.
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2120 4 – The Agency participated in funding the acquisition of 27 units
(23 one bedroom and 4 two bedroom units). The purchase involved
$3,310,000 of redevelopment funds. All 27 units will be for low income
households at 60% or below of median income. Funding source: Ocean
Park, Downtown and Earthquake Recovery Projects.
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2028 14 – The Agency participated in funding the acquisition of two
apartment buildings with a total of 22 units (19 single/one bedroom and 3
two bedroom units). The purchase involved $1,855,000 of redevelopment
funds. All 33 units will be for low income households at 60% or below of
median income. Funding source: Earthquake Recovery Project.
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2260 28 Street – The Agency funded the acquisition of two six-unit
apartment buildings. The purchase of the 12 units involved $1,356,750 of
redevelopment funds. All 12 units (4 one- bedroom and 8 two- bedroom
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units) will be for low income households (60% or less of median income).
The units will be rehabilitated with a conventional loan with an expected
completion date of March 2002. Funding source: Ocean Park and
Downtown Projects
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2608 28 Street - The Agency funded the acquisition of two six-unit
apartment buildings. The purchase of the 12 units involved $1,306,500 of
redevelopment funds. All 12 units (4 one bedroom and 8 two bedroom
units) will be for low income households at 60% of median income. The
units will be rehabilitated with a conventional loan with an expected
completion date of March 2002. Funding source: Ocean Park and
Earthquake Recovery Projects.
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2112 Delaware Avenue – The Agency participated in the acquisition of
four apartment buildings with a total 38 units (14 one bedroom and 24 two
bedroom units). The purchase involved $3,040,160 of redevelopment
funds. Fourteen units will be for very low, 21 for low and 3 for households
at or below moderate income. Funding source: Earthquake Recovery
Project.
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420 Pico – The Agency funded part of the acquisition of a 25-unit
apartment building. The purchase involved $1,833,888 of redevelopment
funds (an additional $566,112 came from federal funds). All 25 units are
one bedroom/singles. Nine units will be for very low income households of
50% or less of median income and 16 units will for low income households
between 50% and 80% of median income. The units are being
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rehabilitated using a bank loan with an expected completion date of March
2002. Funding source: Earthquake Recovery Project.
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225 San Vicente – The agency funded the acquisition of a 36-unit
apartment building. The purchase involved $4,030,000 of redevelopment
funds. There are 25 one bedroom and 11 two bedroom units. All thirty-six
units will be for low income households between 60%-80% of median
income. Funding source: Earthquake Recovery Project.
IV. AGENCY OBJECTIVES FOR FISCAL YEAR 2001-2002
Non-Housing Objectives and Activities
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Disaster Prevention and Mitigation Programs - Seismic Retrofit of Parking
Structures.
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Construction work for downtown parking structures 7 and 8.
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Commercial Revitalization Programs – The Agency contributed $569,848
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to the development of the new public parking structure at 1116 4 Street
(structure also connects to Agency assisted senior affordable housing
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project at 1122 4 Street).
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Consider any previously submitted funding request and other potential
projects that meet the existing goals and objectives of the Agency’s
Implementation Plan.
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Affordable Housing Objectives and Activities
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2907 3 Street – Agency has been participating in the acquisition and
rehabilitation of 11 units 4 one bedroom and 7 two bedroom units). All 11
units will be for very low income family households at 50% or less median
income. Anticipated completion: August, 2002. Funding source:
Earthquake Recovery Project.
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1116/1122 4 Street – Agency has been participating in funding
construction of a 66 unit apartment building being built over a three level
subterranean city owned parking garage. All available units to be for very
low income seniors. Anticipated completion: December, 2001. Funding
source: Ocean Park, Downtown and Earthquake Recovery Projects.
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813 9 Street – Agency participated in the acquisition of 10 units (7 one
bedroom and 3 two bedroom). Five units will be for be for very low
income households at 50% or less median income and 5 for low income
households at 60% or less of median income. Anticipated completion:
December, 2002. Funding source: Ocean Park, Downtown and
Earthquake Recovery Projects.
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1052 18 Street – The Agency funded the acquisition and part of the
continuing rehabilitation of a 15-unit apartment building. There are 12 two
bedroom and 3 three bedroom units. Eight units will be for very low
income (50% or less of median income) and seven for low income
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households (between 60-70% of median income). Funding source:
Earthquake Recovery Project.
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2243-45 28 Street – Agency participated in the acquisition and will be
funding part of the rehabilitation of a 12-unit building.
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2428 34 Street – Agency is participating in the acquisition and
rehabilitation of 12 units (10 one bedroom and 2 two bedroom units). All
units to be for very low income households at 50% or less of median
income. Anticipated completion: December, 2002. Funding source:
Downtown and Earthquake Recovery Projects
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2411 Centinela – Agency is participating in the acquisition and
rehabilitation of 14 units (4 studios and 10 one bedroom units). Eight units
will for very low income households at 50% or less median income and 6
units will be for low income households at 60% or less of median income.
Anticipated completion: December, 2002. Funding source: Ocean Park
and Earthquake Recovery Projects.
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2423 Centinela – Agency is participating in the acquisition and
rehabilitation of 8 units (4 studios and 4 one bedroom units). Four units
will for very low income households at 50% or less of median income and
4 for low income households at 60% or less of median income. Anticipated
completion: December, 2002. Funding source: Earthquake Recovery
Project.
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2449 Centinela Avenue – The Agency funded the acquisition and part of
the continuing rehabilitation of a 20-unit apartment building. All 20 units
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are one bedroom and will for low income households at 60% or less of
median income. Funding source: Earthquake Recovery Project
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1930 Stewart – The Agency provided the City an interim or “bridge” loan of
$2,000,000 for use in the acquisition by the City of the 4.8 acre Mountain
View mobilehome park. The site is intended to be maintained for
affordable mobilehome housing with 141 mobile home spaces. The interim
loan allows time to submit the TORCA application for Planning
Commission consideration. It is anticipated that the TORCA application
will be before the Planning Commission in March or April, 2002. Funding
source: Earthquake Recovery Project.
V. AGENCY ACTIVITIES AFFECTING HOUSING SET ASIDE FUNDS
The Santa Monica Redevelopment Agency did not participate in any activities
that resulted in the displacement, relocation or demolition of housing. The
Agency did not conduct relocation, demolition or displacement activities outside
the project areas in FY 2000-2001 and no such activity is expected to occur in FY
2001-2002.
The agency contributed $4,285,959 into its Low & Moderate Housing Fund,
reflecting 20% of the tax increment revenues received by the Agency in FY 2000-
2001. These funds will be used in support of low and moderate income housing
in future years. The following represents the breakdown of these contributions:
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Ocean Park Redevelopment Projects 1A & 1B
In FY 2000-2001 the Ocean Park 1A and 1B Redevelopment Projects received a
combined $3,155,902 in tax increment revenue and $631,180 in housing set-
aside revenues. These funds were expended on debt service, associated
administrative costs and deposited in the affordable housing fund.
Downtown Redevelopment Project
In FY 2000-2001, the Downtown Redevelopment Project received $1,305,276 in
tax increment revenue and $261,055 in housing set-aside revenues. These
funds were expended on debt service, associated administrative costs and
deposited into the affordable housing fund.
Earthquake Recovery Redevelopment Project
In FY 2000-2001, the Earthquake Recovery Redevelopment Project received
$16,968,620 in tax increment revenue and $3,393,724 in housing set-aside
revenues. AB1290 payments of $3,393,724 will be distributed to other taxing
entities including the City of Santa Monica from tax increment revenues.
Prepared by: Jeff Mathieu, Director of Resource Management
Robert Moncrief, Housing and Redevelopment Administrator
Tina Rodriguez, Redevelopment Administrator
Martin Kennerly, Administrative Services Officer
Rod Merl, Senior Administrative Analyst
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Attachment B
KPMG Independent Auditor’s Report
2000-2001
NOT AVAILABLE ELECTRONICALLY
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Attachment C
State Auditor Controller’s Report of
Financial Transactions and
Statement of Indebtedness for
Tax Year 2000-2001
NOT AVAILABLE ELECTRONICALLY
2
Attachment D
State Housing and Community Development Department
Annual Report of Housing Activity
of Community Redevelopment Agencies for
Fiscal Year Ended 06/30/2001
NOT AVAILABLE ELECTRONICALLY
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