SR-121785-p
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~I~ DEC 17 t~5
C/ED:EDD:EF:SW:mb
Council Meeting of 12/17/85 Santa Monica, California
TO: Redevelopment Agency/City Council
FROM: City Staff
SUBJECT: Recommendation to Adopt Resolutions to Determine Third
Street Mall Parking and Public Improvements. to be of
Benefit to the Downtown Redevelopment Project
INTRODUCTION
This report recommends the Agency/Council adopt resolutions which
find certain Third Street Mall parking and public improbements to
be of benefit to the Downtown Redevelopment Project Area.
BACKGROUND.
The Third Street Mall Preliminary Plan was presented to the City
Council for comments and review on October 1, 1985. As part of
the Plan, a Mall Parking and Public Improvement Program was pres-
ented, and the possible use of tax increment funds from the Down-
town Redevelopment Project was proposed. While the City Council
took no formal action to allocate Downtown tax increment for the
Mall Project at that time, it is recommended that the flexibility
to do so be preserved. For that reason, and to meet the techni-
cal requirements of recent State Legislation, the Redevelopment
Agency and City Council are requested to take various technical
actions prior to January 1, 1986.
DISCUSSION
Recently, the State Legislature passed and the Governor signed AB
265, an act to amend Section 33334.3 and to add Sections 33334.6
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and 33334.7 to the Health and Safety Codes. The new statute re-
quires that, unless Redevelopment Agencies take certain actions
prior to January 1, 1986, twenty percent of the annual tax incre-
ment must be set aside for the purpose of increasing and improv-
ing the supply of low and moderate income housing for all proj-
ects adopted prior to 1977. The Downtown Redevelopment Project
was adopted January 13, 1976 and therefore the future use of
Downtown tax increment will be subject to the limitations set
forth in AB 265.
If in the future the Agency wishes to set aside less than the
required twenty percent for housing, the Agency must take action
by January 1, 1986 to find the Mall Parking and Public Improve-
ment Program to be of benefit to the Agency. Agency Counsel has
determined that adoption of a Cooperation and Reimbursement
Agreement for the Third Street Mall Project will fulfill the
technical and legal requirements of AB 265 and also assure that
the Agency/City will have the future option to ex pend Downtown
tax increment for the Third Street Mall Plan or to dedicate such
funds for the production of low and moderate income housing. The
actions recommended in this report maintain the Redevelopment
Agency/City Council's ability to annually allocate Downtown. tax
increment funds based on future community needs.
Under California Redevelopment Law, Health and Safety Code, Sec-
tion 33445, redevelopment agencies may use tax increment funds to
finance any publicly owned improvements or facilities inside or
outside the project area if a finding is made that the improvements
are of benefit to the project or the immediate neighborhood
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and that no other reasonable means of financing is available.
ThPSe of-benefit findings provide the basis for the Cooperation
and Reimbursement Agreement between the Redevelopment Agency and
the City of Santa Monica. Technically, the Redevelopment Agency
and the City Council must earn adopt a resolution that determines
the Third Street Mall Parking and Public Improvement Plan to be
of benefit to the Downtown Redevelopment Project and authorizes.
the Cooperation Agreement to establish a funding relationship
between the Agency and City. Summary reports documenting the of
benefit findings as well as necessary Agency/Council resolutions
adopting these findings are attached to this report for Agency/
Council action.
BUDGET/FISCAL IMPACT
Adoption of the attached resolutions will not result in fiscal
impact prior to formal Agency/Council adoption of a financing
program for the Third Street Mall Parking and Public Improvement
Plan. 'T'his action will follow a complete financial analysis as
part of the Third Street Mall Specific Plan adoption process.
RECGPIMENDAT IGNS
Staff recommends that the Agency:
1. Adopt a resolution of the Redevelopment Agency to deter-
mine the Third Street Mall Parking and Public Improve-
ment Plan to be of benefit to the Downtown Project Area,
that no other reasonable means of financing is avail-
able, and approving and authorizing the execution of a
cooperation and reimbursement agreement between the City
and Agency.
Staff recommends that the City Council:
1. Adopt a resolution of the City Council to determine the
Third Street ~~lall Parking and Public Improvement Plan to
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be of benefit to the Downtown Project Area, that no
other reasonable means of financing is available, and
approving and authorizing the execution of a cooperation
and reimbursement agreement between the City and Agency.
Prepared by: Ernesto R. Flores, Manager
Sidney L. White, Senior Administrative Analyst
Economic Development Division
Community and Economic Development Department
Attachments:
1. Agency Resolution
2. Council Resolution
3. Exhibit A to Resolutions: Cooperation and Reimburse-
ment Agreement
4. Exhibit B to Resolutions: Summary Report
5. Exhibit A to Summary Report: Cooperation and Reim-
bursement Agreement
6. Exhibit B to Summary Report: Site ~Kap
7. Exhibit C to Summary Report: Construction Cost
Estimates
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Reference Contract
No. 4624 (CCS).