SR-413-001 (25)
RMD:RDA:TR:F:\RESOURCE\SHARE\STAFFREPORTS\RDA Annual Report 02-03 .doc
Council Meeting: December 16, 2003 Santa Monica, California
To: Mayor and City Council
Chairperson and Redevelopment Agency
From: City Staff
Subject: Annual Report for Fiscal Year 2002-2003 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, 2003. This staff report presents the
attached Santa Monica Redevelopment Agency Annual Report for Fiscal Year 2002-
2003, 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 2002-2003, which includes information
which the Agency believes useful in explaining its programs and activities
(Attachment A);
2) An independent financial audit and report conducted in accordance with
generally accepted auditing standards (Attachment B);
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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 Conrad and Associates completed an independent financial audit
for the financial year from July 1, 2002 to June 30, 2003, in compliance with standards
set out in Section 33080.1 of the California Health and Safety Code. Conrad and
Associates 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, 2003.
The attached annual report provides specific information on housing and other activities
of the Redevelopment Agency in Fiscal Year 2002-2003. 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 2002-2003.
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RECOMMENDATION
It is recommended that the City Council receive and file the Annual Report for Fiscal
Year 2002-2003 for the Redevelopment Agency of the City of Santa Monica and 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
Steve Stark, Director of Finance/Agency Controller
Robert Moncrief, Housing and Redevelopment Manager
Tina Rodriguez, Redevelopment Administrator
Martin Kennerly, Administrative Services Officer
Bill Jias, Senior Accountant
Attachment A - Annual Report Summary for Fiscal Year 2002-2003
Attachment B - Conrad & Associates Independent Auditor’s Report for 2002-2003
Attachment C - State Auditor Controller’s Report of Financial Transactions and
Statement of Indebtedness for Tax Year 2002-2003
Attachment D - State Housing and Community Development Department Annual
Report of Housing Activity of Community Redevelopment Agencies
for the Fiscal Year Ended 06/30/2003
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Attachment A
ANNUAL REPORT SUMMARY
FOR FISCAL YEAR 2002-2003
REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
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 2002-2003, and previews the Agency’s objectives and
work plan for FY 2003-2004.
II. DESCRIPTION OF REDEVELOPMENT PROJECT AREAS
On August 13, 1957, the City Council of the City of Santa Monica established the
Redevelopment Agency of the City of Santa Monica, pursuant to Redevelopment Law.
In May 1972, the City Council declared itself the Agency and assumed all the rights,
powers, duties and privileges vested in a redevelopment agency. There are four
redevelopment projects within the city:
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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
Ocean Park Redevelopment Project 1A
The City Council adopted the Redevelopment Plan for the Ocean Park Redevelopment
Project 1A on June 30, 1960. The Redevelopment Plan was amended on November
14, 1967, primarily to change the permitted land uses in the project area. The project
area is 25 acres bounded by Ocean Park Boulevard to the north, Neilson Way to the
east, Ocean Park Project 1B to the south and the State beach parking lots and the
beach itself to the west. Phase one of the project was completed in 1980 and phase
two was completed in 1987. The project contains two 17-story, 250 rental unit high-rise
buildings known as Santa Monica Shores and is surrounded by the Sea Colony
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condominium project, which maintains 340 condominium units. Ocean View Park is
also contained within the project area.
Ocean Park Redevelopment Project 1B
The City Council adopted the Redevelopment Plan for the Ocean Park Redevelopment
Project 1B on January 24, 1961, with subsequent amendments on January 26, 1965,
July 13, 1971, and again on September 12, 1972, which were implemented in order to
change the permitted land uses within the project area. The project area consists of 8
acres bounded by Ocean Redevelopment Project 1A to the north, Neilson Way to the
east, the City limit to the south, and both the State beach parking lots and the beach
itself to the west. The project was completed in 1983.
Currently the project contains two senior citizen residential apartment complexes,
Neilson Villas and Barnard Park Villas, which contain 100 and 61 rental units
respectively. A former utility building within the project area was adapted into offices
and art storage for the Eli Broad Trust Art Foundation.
Downtown Redevelopment Project
The City Council adopted the Redevelopment Plan for the Downtown Redevelopment
Project on January 13, 1976. The Downtown Redevelopment Project encompasses 9.9
acres of property located in the downtown core of Santa Monica bounded by Broadway
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to the north, 4 Street to the east, Colorado Avenue to the south, and 2 Street to the
west. Completed in 1980, the project consists of Santa Monica Place; a retail center
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containing approximately 570,000 square feet of floor area, including two major
department store anchors and 160 specialty retail shops/food uses, linked by a three
level enclosed common area, which is owned and operated by the Macerich Company.
The project includes two Agency-owned parking structures that provide a total of 1,956
parking spaces.
Earthquake Recovery Redevelopment Project
The City Council adopted the Redevelopment Plan for the Earthquake Recovery Project
on June 21, 1994. The project is 2.89 square miles bounded to the east by Cloverfield
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Boulevard and 26 Street, to the west by Pacific Coast Highway/Beach Promenade, to
the south generally by Pico Boulevard, and to the north by Montana Avenue and
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. To date the Earthquake Recovery Project
has funded disaster prevention and mitigation, commercial revitalization, community
revitalization and institutional projects.
AGENCY OBJECTIVES AND ACTIVITIES FOR FISCAL YEAR 2002-2003
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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The Civic Center Specific Plan-The Agency anticipates adoption of the Specific
Plan and EIR in mid-2004, 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;
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Disaster Prevention and Mitigation Programs-Completed seismic retrofit work on
Parking Structure 8, completed design and commenced work on the retrofit of
Parking Structure 7, continued with seismic retrofit design work on Parking
Structure 5, and funded the initial phase of the geo-technical study and
construction management services for the Santa Monica Palisades Bluff
Stabilization Project. The remaining Parking Structures (1-6) were purchased by
the Agency from the Parking Authority for $60,000,000 in order to begin planning
and design of seismic retrofit activities; and
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Community Revitalization Programs-The Agency committed $10,206,823 to
Santa Monica College for replacement of their Liberal Arts Building that was
originally damaged beyond rehabilitation during the 1994 Northridge Earthquake.
The Agency also funded a Supplemental Parking facility within the new Main
Library, which is currently under construction, in the amount of $12,959,719 as a
means of ensuring that adequate parking will be available to the public as the
central business district continues to enjoy the benefits of redevelopment activities,
specifically during the retrofit activities scheduled to take place at Parking
Structures 1-6.
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Affordable Housing Objectives and Activities:
The Agency continued to increase, preserve and improve the supply of affordable
housing in Santa Monica during the 2002-2003 fiscal year as per the Five Year
Implementation Plan for FY 1999-00 through FY 2003-4. The following scheduled and
additional housing activities are consistent with the objectives of the Five Year
Implementation Plan:
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2907 03 Street
–The Agency participated in the acquisition and rehabilitation of
a 11-unit apartment building. There are 4 one bedroom and 7 two bedroom
units. All units will be for very low income family households at 50% or less of
median income.
Completed: June 2003
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1052 18 Street
-The Agency funded the acquisition and part of the 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 at 50% or less of median income
and seven for low-income households between 60-70% of median income.
Completed: March 2003
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813 9 Street
–The Agency funded acquisition and part of the rehabilitation of a
10-unit apartment building. There are 7 one bedroom and 3 two bedroom units.
Five units will be for very low income at 50% or less median income and five for
low income at 60% or less of median income.
Completed: January 2003
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1943,1945,1955 and 1959 High Place
– This 14 unit project was acquired in
August 2002. Seven units will be for very low income households at 50% of
median income and seven units will be for low income households at 60% of
median income.
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1512 15 Street/1424 Broadway
– This property was acquired in October 2002
with development potential of 41 very low-income units.
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2018 19 Street
– The Agency funded acquisition of a property in order to
develop affordable ownership housing. Habitat for Humanity acquired the
property in October 2002, which will be targeted for very, very low-income
buyers.
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175 Ocean Park Boulevard
-The Ocean Park Housing Trust Fund paid
$127,900 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.
The Agency continues to secure as many low and moderate housing opportunities
within the city as possible by funding both property acquisition and building
rehabilitation.
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III. AGENCY OBJECTIVES FOR FISCAL YEAR 2003-2004
Non-Housing Objectives and Activities:
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The seismic retrofit for Parking Structure 7 completed in fiscal year 2003-04;
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The seismic retrofit design work on Parking Structure 5 to be completed in fiscal
year 2003-04; and
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The Palisades Bluff project final design work, environmental review, including
phasing plan for the project is to be completed in this fiscal year. Phase one of
the work is anticipated to start in 2004.
Affordable Housing Objectives and Activities:
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1751 Cloverfield Boulevard
- In October of 2003, $7,397,112 was granted to
the Ocean Park Community Center to provide a homeless shelter and
congregate housing facility for low-income persons.
Anticipated completion: January 2006
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2243 28 Street
-The agency funded the acquisition and rehabilitation of a 12-
unit apartment building. There are 8 one bedroom and 4 two bedroom units. Six
units will be for very low-income households at 50% of median income and six
units will be for low-income households at 60% of median income.
Completed: November 2003
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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: January 2004
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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 2003
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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 2003
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
2002-2003 and no such activity is expected to occur in FY 2003-2004.
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The agency contributed $7,693,017 into its Low & Moderate Housing Fund, reflecting
20% of the tax increment revenues received by the Agency in FY 2002-2003. These
funds will be used in support of low and moderate income housing in future years. The
following represents the breakdown of these contributions:
Ocean Park Redevelopment Projects 1A & 1B
In FY 2002-2003 the Ocean Park 1A and 1B Redevelopment Projects received a
combined $2,742,695 in tax increment revenue and $548,539 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 2002-2003, the Downtown Redevelopment Project received $2,834,213 in tax
increment revenue and $566,843 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 2002-2003, the Earthquake Recovery Redevelopment Project received
$32,888,175 in tax increment revenue and $6,577,635 in housing set-aside revenues.
AB1290 payments of $6,577,635 will be distributed to other taxing entities including the
City of Santa Monica from tax increment revenues.
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Prepared by: Jeff Mathieu, Director of Resource Management
Robert Moncrief, Housing and Redevelopment Manager
Tina Rodriguez, Redevelopment Administrator
Martin Kennerly, Administrative Services Officer
Ryan Moore, Senior Administrative Analyst
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