SR-02-25-2003-8B
RMD:RDA:TR:C:\WINOOWSITEMPlstaff Report Midterm Report Final 2-19946am.doc <Z 13
Council Meeting: February 25, 2003 Santa Monica, CaliforniCf:'EB .2 5 2003
To:
Mayor and City Council
Chairperson and Redevelopment Agency
From:
City Staff
Subject:
Midterm Report for the Five Year Implementation Plan for the
Redevelopment Agency of the City of Santa Monica
INTRODUCTION
This report recommends that the City Council and Redevelopment Agency (Agency)
conduct a public hearing and review the Five Year Implementation plans for the Ocean
Park 1A, Ocean Park 1 B, Downtown, and Earthquake Recovery Redevelopment
Projects as required by California Community Redevelopment Law. On November 16,
the Agency adopted its current Five Year Implementation Plan for FY1999-00
through FY2003-04 For each Project Area, the Implementation Plan describes the
Agency's goals, potential projects and programs, estimated expenditures, and the
nexus between the programs proposed and mitigation of blight. Midway through the
planning period, the Agency is required to conduct a public hearing to review and
evaluate the progress of the Implementation Plan.
BACKGROUND
Agency currently has four Redevelopment Project Areas encompassing
approximately 34.8% of the total geographic area of the City. These Project Areas are:
. Earthquake Recovery Redevelopment Project Area (Adopted June 1994,
expiring in June 2024);
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FEB .2 5 2003
· Downtown Redevelopment Project Area (Adopted in January 197E>, expiring in
January 2016);
· Ocean Park 1A Redevelopment Project Area (Adopted June 1 H60, expiring
January 2009); and
. Ocean Park 1 B Redevelopment Project Area (Adopted June 1 B61, expiring
January 2009).
The Earthquake Recovery Redevelopment Project Area is generally bounded by
Cloverfield Boulevard and 26th Street to the east, Montana Avenue to the north, Pico
Boulevard to the south, and the Pacific Ocean to the west. When established in June
1994, the project area included the majority of the red- and yellow-tag~led buildings
damaged by the Northridge Earthquake.
Implementation activities for the Earthquake Recovery Redevelopment Project Area, as
guided by the Redevelopment Plan and the Implementation Plan generally fall into the
following five program areas: disaster prevention/mitigation; commercial revitalization;
community revitalization; affordable housing; and institutional revitalization Examples
of significant accomplishments in the Earthquake Recovery Redevelopment Project
Area include the acquisition of 11.3 acres of land in the Civic Center Area, City Council
approval in concept of the Civic Center Specific Land Use Plan, seismic retrofit of
parking structures in the downtown area, and financing of acquisition, devE!lopment, and
rehabilitation of affordable housing stock. By law, the Earthquake Recovery
Redevelopment Project Area Plan's activities must be completed by Jum~ 2024, when
the Redevelopment Plan expires.
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The Downtown Redevelopment Project Area consists of the Santa Monica Place
shopping center. The Ocean Park 1A and 1 B Project Areas combined include 33 acres
of residential and commercial property bounded by Ocean Park Boulevard, Neilson
Way, the southern City limits, and the beach parking lots. In general, the~ Agency has
focused its efforts on using the funds generated by these areas to develop, rehabilitate,
and acquire affordable housing units throughout the City and to pay existing Agency
debt.
The Implementation Plan for the Redevelopment areas contain the following information
required by Section 33490 of the Health and Safety Code
1) Specific goals and objectives of the Agency;
2) Specific programs, including potential projects and estimated l~xpenditures,
proposed for the planning period; and
3) An explanation of how the goals and objectives, programs and expenditures
will eliminate blight and implement the requirements of California
Redevelopment Law.
In addition, the Implementation Plan includes as an appendix the Agency's 10 Year
(1994-95 through 2003-04) Affordable Housing Compliance Plan The Compliance Plan
generally addresses the Agency's affordable housing production and replacement
housing obligations.
3
DISCUSSION
Below is a progress report of the Agency's projects and programs implemented for each
Project Area from FY1999-00 through the present. Between FY199B-00 through
FY2001-02, the Agency expended a total of $40,865,729 on affordable housing projects
and programs, and $56,500,207 on non-housing programs. Attachment "A" reflects
projects that have been approved by the City Council and the Redevelopment Agency.
Additional projects may be approved during the remainder of the implementation
planning period. Any such projects that have not received approval by the City Council
and the Redevelopment Agency are not included in the "Additional Capital Improvement
Projects" section of Attachment "A" This would include additional costs related to the
acquisition and seismic retrofit work to the downtown parking structures and the Santa
Monica College request for funds for the replacement of the earthquake-damaged
Humanities Building.
Earthquake Recovery Redevelopment Project Area
. The Earthquake Recovery Redevelopment Project Area non-housing programs
include the following projects:
Disaster Prevention and MitiQation Activities. Performed seismic n~trofit studies
and work on Parking Structure 8, seismic retrofit design on Parkin~~ Structure 7,
and funded the initial phase of the geotechnical study and construction
management services for the Santa Monica Palisades Bluff Stabilization Project
($1,817,502).
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I] Commercial Revitalization ProQrams. Allocated funds to fulfill its obligation to the
Commercial Streetscape Program and Crosswalk Enhancements on Pico
Boulevard ($5,062,180), and to the Fourth Street Parking Structure ($3,120,525).
Institutional Revitalization ProQram. Contributed a total of $1,000,000 to the
replacement of the Municipal Pool located at the Santa Monica College campus
(serving the needs of both the City and College) that was damaged in the 1994
Northridge Earthquake.
Community Revitalization ProQrams. Contributed $42,400,000 toward the
acquisition of 11.3 acres of property in the Civic Center area from the Rand
Corporation for public uses, park improvements, parking and street network
improvements, and affordable housing in the area. In addition, the Agency
provided $3,100,000 for land acquisition and improvements for the expansion of
Virginia Park.
. Additional non-housing activities anticipated for the remaining planning period,
FY2002-03 through FY2003-04, include the following:
Completion and Implementation of Civic Center Specific Plan. The Agency
anticipates adoption of the Specific Plan and EIR in mid-2003, with development
of the housing component to be initiated thereafter. Build-out of the entire
Specific Plan is not anticipated for several years beyond the term of the current
Implementation Plan
Seismic Retrofit of ParkinQ Structures 2, 5. 7 and 8. The Agency anticipates that
retrofit and rehabilitation work on Parking Structure 8 will be completed in spring
2003. The seismic retrofit design work on Parking Structure 5 will be completed
by June 2003,
5
To implement improvements on Parking Structures 1 through 6, the Agency, City,
and Parking Authority entered into a Sale and Performance Agreement in
January 2003, which transferred ownership of the six parking structures to the
Agency. In return for ownership, the Agency is responsible for retrofitting and
completing other improvements on the six structures. Funding for these
improvements will come from a variety of sources, including the Agency, City,
and Parking Authority. The City and Parking Authority will expend the proceeds
received from the sale of the parking structures in a manner that will implement
the Redevelopment Plan for the Project Area and facilitate the redevelopment of
the Project Area.
Main Library ParkinQ Structure Construction. The Agency is fundin!~ a portion of
the cost of parking at the new Main Library in lieu of retrofit work at the existing
library as well as to provide supplemental parking for the downtown area while
retrofit work is being done on other downtown parking structures
D Institutional Proiect. City staff and staff of Santa Monica College have discussed
the College's need for replacement of the earthquake-damaged Humanities
Building A request for funding, received from Santa Monica College, is under
consideration. A formal proposal with project description, timeline and costs has
been requested. Agency consideration of the request will follow required public
noticing requirements, at which time a formal presentation to Council will be
made
D Palisades Bluff Stabilization. The Agency will participate with the City and
Federal government on stabilization work during the planning period In January
2003. the Agency and City entered into a Cooperation A~~reement for
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$50,000,000 to facilitate the retrofitting and stabilization of the Palisades Bluffs.
and to increase, preserve and improve affordable housing within the City. In
part, the Cooperation Agreement provided that up to $20 million of work at
Palisades Bluff is the obligation of the Agency. The conceptual design work for
the Palisades Bluffs is to be completed in FY2002-03, and the environmental
review process will commence in FY2003-04.
Ocean Park Redevelopment Project 1A and 18
The Implementation Plan provided that all tax increment revenues after debt service
and administrative costs be transferred to the Redevelopment Housing Trust Fund for
various housing programs citywide.
. Between 1999-00 and 2001-02, the Agency expended a total of $6,309,531
including $4,740,931 for debt service and administrative costs, and $'1,568,600 for
affordable housing programs.
. The Agency anticipates continuing its practice of expending all remaining tax
increment revenue (after debt service and administrative costs) from Ocean Park 1A
and 1 B on housing programs as it has during the planning period
Downtown Project
. The Agency expended $6,444,095 on repayment of non-housing debts during the
past three years, and $1,095,066 on housing programs over the same time period.
. It is anticipated that the Agency will focus its efforts primarily on repaying remaining
debts in the Downtown Project Area over the remaining term of the Implementation
Plan. Any excess funding will be spent on affordable housing
7
Affordable Housing Projects
. From the tax increment generated from the four Project Areas, a total of
$44,324,739 was deposited into the Agency's affordable housing se~t-aside fund
during the first three years of the planning period. This includes bond proceeds
dedicated for housing purposes.
. The Agency used its housing set-aside resources to facilitate the deve~lopment and
substantial rehabilitation of 527 units between 1999-00 and 2001-02
. Of the 527 units, 262 are affordable to very-low-income households, 169 are
affordable to low-income households, and 96 are affordable to mod43rate-income
households.
. The Agency has contracts with property owners and developers to construct another
40 affordable units by the end of 2003-04. The 40 units include 29 very-low-income
units and 11 moderate-income units.
. As referred to earlier, on January 9, 2003, the Agency and City entered into a
Cooperation Agreement, which, in part, obligated the Agency to expend $30 million
over the next 15 years on affordable housing projects. The Cooperation Agreement
provides that such funds shall be used for affordable housing projects located inside
or outside the Project Areas, and will be invested in projects that increase, improve,
or preserve the City's supply of affordable housing
. Thus far, the Agency has met its affordable housing production goals, and continues
to monitor its progress in achieving the goals of the 10 Year Affordable Housing
Compliance Plan.
. At the end of the current planning period in 2003-04, the Agency will review and
update.as necessary the 10 Year Affordable Housing Compliance Plan.
a
BUDGET/FISCAL IMPACT
There is no budget/fiscal impact resulting from holding a public hearing on the Midterm
Report on the Santa Monica Redevelopment Agency's Five-Year Implementation Plan.
RECOMMENDA TION
It is recommended that the City Council and Agency hold a public hearing on the
progress of the adopted Five-Year Implementation Plan for the Downtown, Ocean Park
1A, Ocean Park 18, and Earthquake Recovery Redevelopment Projects and receive
and file the staff report.
Prepared by:
Jeff Mathieu, Director of Resource Management
Robert Moncrief, Housing and Redevelopment ManagE~r
Tina Rodriguez, Redevelopment Administrator
Martin Kennerly, Administrative Services Officer
Ryan Moore, Senior Administrative Analyst
Attachment A:
Redevelopment Agency Five-Year Implementation Plan-
Midterm Activity Highlighted
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