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SR-413-001 (2) Attachment A ANNUAL REPORT SUMMARY FOR FISCAL YEAR 1998-99 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 displacement (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. This annual report for the Santa Monica Redevelopment Agency contains the information required by state law and includes a review of the objectives and activities of the Redevelopment Agency in FY 1998-99, and previews the Agency’s objectives and work plan for FY 1999-00. 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 ? Ocean Park Redevelopment Project 1B ? Downtown Redevelopment Project ? Earthquake Recovery Redevelopment Project ? 1 Ocean Park Redevelopment Projects 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 reduction in the availability of federal funds for the project, the Agency divided the proposed thirty-three acre Ocean Park project into two separate projects so that at least one project could proceed with the funds available to the Agency at the time. Ocean Park Redevelopment Project 1A encompasses the northern 25 acres of the originally proposed 33-acre project. The City Council approved the Redevelopment Plan for this Project on June 30, 1960, following requisite studies and hearings 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 beach 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 the Santa Monica Shores, which were completed in 1967. Each tower contains 250 rental apartment units. This property changed ownership on May 14, 1999. 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 1987. Ocean View Park is a public park located in the center of Project Area 1A facing the ocean. 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 Planning 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 Park Redevelopment Project1A on 2 the north, Neilson Way on the east, the City limit on the south and the State beach parking lots and beach 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 Family Art Foundation. Projects Funded by the Ocean Park Redevelopment Projects The Ocean Park Redevelopment Project Area provided funds for various housing and other related projects for low and moderate income individuals and families. In addition, certain projects found to be of-benefit to the project area were funded by the Agency. These other projects include: Renovation and enhancement of the nearby beach parking lot and surrounding ? streets. Rehabilitation and expansion of the Ocean Park Branch Library. ? Rehabilitation of 22 apartment units targeted to very low-income senior and family ? households at 175 Ocean Park Boulevard. Construction of 55 rental apartment units for low and moderate income families, at ? various sites in the Ocean Park neighborhood. Construction or rehabilitation of 313 rental units at various sites in Santa Monica. ? 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 Redevelopment Project is bounded thnd by Broadway on the north, 4 Street on the 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 the project contains approximately 570,000 square feet of floor area and includes two major 3 department store anchors and 160 specialty retail shops and food establishments, all of which are linked by three level enclosed pedestrian space that extends diagonally across two City blocks. The project also includes two Agency-owned parking structures containing 2,020 parking spaces. Projects funded by the Downtown Project The Downtown Redevelopment Project Area included certain projects found to be of- ? benefit to the project area. Various improvements adjacent to the Project at the Third Street Promenade and Bayside District adjacent to the Downtown Redevelopment Project were funded by the Agency, but the primary funding for these improvements came from other sources. The Downtown Project Area also provided funds for various 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 predominantly damaged in the January 1994 Northridge earthquake. Approximately 90% of all red-tagged and 80% of all yellow-tagged buildings in the City were in this project area. The project area is bounded on the east by Cloverfield th and 26 Street, on the west by the Pacific Coast Highway/Beach Promenade, on the south by approximately Pico Boulevard and on the north by Montana Avenue. The City Council approved the Redevelopment Plan for the Earthquake Recovery Project Area in June 21,1994. Projects funded by the Earthquake Recovery Project Several commitments have been made from the Earthquake Recovery Project Area: Seismic retrofit of public parking structures ? Pico Streetscape Commercial Revitalization Project and Crosswalk enhancements ? th Development of the 4 Street parking structure in association with an affordable ? th housing development at 1116-1146 4 Street. Virginia Avenue Park expansion ? Replacement of the earthquake-damaged Municipal Pool on the Santa Monica College ? campus. III. AGENCY OBJECTIVES AND ACTIVITIES FOR FISCAL YEAR 1998-99 4 The Agency’s objectives and activities for the last fiscal year, which implement the 1994 Implementation Plans, are discussed below. Non-Housing Objectives and Activities Commercial Revitalization - In Fiscal Year 1998-99, the Agency began funding the first ? phase of the Commercial Streetscape Program on Pico Boulevard. The Agency also committed funding for crosswalk enhancements along Pico Boulevard. Disaster Prevention and Mitigation - The Agency continued its coordination and ? commitment to fund seismic retrofit work for the public parking structures in the City. Institutional Revitalization - The Agency committed to funding costs related to the ? replacement of the earthquake-damaged municipal pool located on the Santa Monica College campus. Financial/Administrative - In Fiscal Year 1998-99, the Agency prepared for the ? issuance of tax allocation bonds from the Earthquake Project Area to fund the acquisition of approximately 11.3 acres of land owned by the RAND Corporation and other housing and redevelopment activities. The Agency began preparation of the Five-Year Implementation Plan (for fiscal years 1999-00 through 2003-04) and Amended Ten-Year Housing Compliance Plan. The Agency also continued its payment of debt obligations in the Ocean Park and Downtown Project Areas. Affordable Housing Objectives and Activities The Agency’s objective during the 1998-99 fiscal year was to increase, preserve and improve the supply of affordable housing in the city. The following provides a list of activities to implement this goal. 2807 Lincoln Boulevard Project – The Agency provided predevelopment and ? construction funds for this 40-unit, Section 202 low income senior housing project developed by Volunteers of America. During FY 98/99, construction activities were completed on the project. Previously, the Agency allocated funds for the purchase of a parking easement for the project and predevelopment costs. Funding Source: Ocean Park 1A and 1B Projects and Downtown Project. th 1011 11 Street (Upward Bound) Project – The Agency provided predevelopment and ? construction funds for this 70-unit, Section 202 low income senior housing project developed by Upward Bound. This project is ongoing. Construction began in December 1998 for this 70-unit senior housing project. Funding source: Ocean Park 1A and 1B Projects, Downtown Project and Earthquake Recovery Project . th 1116-1146 4 Street Project – The Agency funded predevelopment costs for this 66- ? 5 unit, Section 202 senior housing development project developed by Menorah Housing Foundation. This project is ongoing. In FY 1998-99, funding alternatives for a 66-unit Section 202 senior housing project were identified but no funds were expended in the fiscal year. Some issues remain unsolved on this project that we anticipate to be resolved in FY 99-00. Funding Source: Ocean Park Projects 1A and 1B Projects and Downtown Project. th 1227 9 Street – The Agency funded a loan to Community Corporation of Santa Monica ? for the acquisition/rehabilitation of this 10-unit apartment building. This project is ongoing. The project was completed in the 1999-00 fiscal year. Funding Source: Downtown Project and Earthquake Recovery Project. th 1916 10/855 Bay – The Agency funded a loan to Community Corporation of Santa ? Monica for the acquisition/rehabilitation of this 15-unit project. The project was completed in the 1999-00 fiscal year. Funding Source: Downtown Project and Earthquake Recovery Project. th 1344 14 Street - The Agency funded a loan to Community Corporation of Santa ? Monica for the acquisition/rehabilitation of this 15-unit project . The project is expected to be completed in the 1999-00 fiscal year. Funding Source: Ocean Park 1A and 1B Projects and Downtown Project. th 821 11 Street – The Agency funded a loan to Community Corporation of Santa ? Monica for the acquisition/rehabilitation of this 10-unit project. The project is expected to be completed in the 1999-00 fiscal year. Funding Source: Ocean Park 1A and 1B Projects and Earthquake Recovery Project. 175 Ocean Park Boulevard - The Ocean Park Housing Trust Fund paid $120,000 to ? subsidize 22 units of housing for very low income senior and family households through the lease payment made by the Agency on behalf of the 175 Ocean Park Boulevard public housing development operated by the County of Los Angeles. This has been an ongoing activity of the Redevelopment Agency for many years. Source: Ocean Park 1A Project. IV. AGENCY OBJECTIVES FOR FISCAL YEAR 1999-00 Non-Housing Objectives and Activities Disaster Prevention and Mitigation Programs - The Agency intends to continue its ? commitment to fund seismic retrofit work for the public parking structures in the City. Additional funds may be allocated in the 1999-00 fiscal year for further seismic retrofit design studies for the public parking structures, essential facilities and stabilization of 6 the Palisades Bluffs. Commercial Revitalization Programs - In Fiscal Year 1999-00, the Agency will fulfill its ? obligation for funding of the Commercial Streetscape Program and Crosswalk Enhancements on Pico Boulevard. Community Revitalization Programs – The Agency will fulfill its obligation to ? reimburse the City for the costs associated with the Virginia Park expansion. Also, the Agency is expected to issue tax allocation bonds by the end of the 1999 calendar year to purchase the RAND property and fund housing activities. Institutional Revitalization - The Agency is expected to expend funds in the 1999- ? 00 fiscal year for the costs related to the replacement of the earthquake-damaged municipal pool located on the Santa Monica College campus. Financial/Administrative – In Fiscal year 1999-00, the Agency will prepare for its ? second tax allocation bond issue. Affordable Housing Objectives and Activities The Agency will continue to increase, preserve and improve the supply of affordable housing in the city in the 1999-00 fiscal year. Consistent with the Five-Year Implementation Plan for FY 1999-00 through FY 2003-04, the Agency in FY 1999-00 will evaluate ways to accelerate the generation of redevelopment revenue for affordable housing activities. In addition, the Agency will direct all redevelopment revenues from Ocean Park 1A and 1B and Downtown Project Areas, net of existing debt service and administrative costs, to fund housing activities. The following scheduled activities, and additional housing activities that will be added, are consistent with the objectives of the Five-Year Implementation Plan. th 1011 11 Street (Upward Bound) - This project is ongoing. The project will be ? completed by April 2000. Funding source: Ocean Park 1A and 1B Projects, Downtown Project and Earthquake Recovery Project. th 1116-1146 4 Street Project – This project is ongoing. During FY 99/00, a contract will ? be awarded for the construction of the parking structure. Funding Source: Earthquake Recovery Project (unrestricted funds). th 1227 9 Street – The acquisition/rehabilitation of this 10-unit building was completed in ? November 1999. Funding Source: Downtown Project and Earthquake Recovery Project. th 1916 10/855 Bay - The acquisition/rehabilitation of this 15-unit building was ? completed in October 1999. Funding Source: Downtown Project and Earthquake Recovery Project. 7 th 1344 14 Street - The acquisition/rehabilitation of this 15-unit building is expected ? to be completed in March 2000. Funding Source: Ocean Park 1A and 1B Projects and Downtown Project. th 821 11 Street - The acquisition/rehabilitation of this 10-unit building is expected to ? be completed in June 2000. Funding Source: Ocean Park 1A and 1B Projects and Downtown Project. 175 Ocean Park Boulevard - This has been an ongoing activity of the Redevelopment ? Agency for many years and will continue for the 1999-00 fiscal year from the Ocean Park 1A 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 also did not conduct relocation, demolition, or displacement activities outside of the project areas in FY 1998- 998 and no such activity is expected to occur in FY 1999-00. The Agency contributed $2,015,504 into its Low & Moderate Housing Fund, reflecting 20% of the tax increment revenues received by the Agency in FY 1998-99. These funds will be used in support of low and moderate income housing in future years. The following represents the project breakdown of these contributions: Ocean Park Redevelopment Projects 1A and 1B In FY 98-99, the Ocean Park 1A and 1B Redevelopment Projects received a combined $1,251,878 in unrestricted tax increment revenue and $312,970 in housing set-aside revenues. These funds were expended on debt service and associated administrative costs and deposited into the affordable housing fund. Downtown Redevelopment Project In FY 98-99, the Downtown Redevelopment Project received $953,563 in unrestricted tax increment revenue and $238,391 in housing set-aside funds. These funds were appropriated for debt service and associated administrative costs and deposited into the affordable housing fund. Earthquake Recovery Redevelopment Project In FY 98-99, the Earthquake Recovery Redevelopment Project received $5,856,574 in 8 unrestricted tax increment revenues and $1,464,143 in housing set-aside revenues. An additional $1,519,682 in AB1290 payments will be distributed to other taxing entities including the City of Santa Monica. Prepared by: Jeff Mathieu, Director of Resource Management Robert Moncrief, Housing and Redevelopment Manager Tina Rodriguez, Redevelopment Administrator Marty Kennerly, Administrative Services Officer Mona Miyasato, Senior Administrative Analyst F:\Redevelopment\Reports\Annual Report FY98-99\SMRDA Annual Report FY-1998-98(v3).doc; 12/2/99 9