sr-041409-8b~® City Council and
~~tY of Redevelopment Agency Report
Santa Monica
City Council and Redevelopment Agency Meeting: April 14, 2009
Agenda Item: ~'-g
To: Mayor and City Council
Chairperson and Redevelopment Agency
From: Andy Agle, Director of Housing and Economic Development
Carol Swindell, Director of Finance
Subject: Redevelopment Agency Capital Funding Priorities
Recommended Action
Staff recommends that the Redevelopment Agency and City Council approve
redevelopment funding priorities for capital improvement programs.
Executive Summary
In preparation for the FY 09/10 Budget, as well as the Redevelopment Agency's Five-
Year Implementation Plan for 2010 - 2015, staff recommends that the City Council
adopt refined funding priorities and preliminary funding commitments to allow key
capital projects to continue forward. Approximately $1:27 billion dollars of projects are
potentially eligible for Redevelopment Agency funding. The Agency's total debt capacity
through 2014 is estimated to .range from $283 million to $313 million. This report
discusses redevelopment funding considerations and community needs that are
potentially eligible for redevelopment funding and makes recommendations regarding
long-term capital funding priorities. Staff seeks Council direction on which projects
should be included in funding plans for the Redevelopment Agency.
Background
Within the Earthquake Recovery Redevelopment Project Area, the Agency's largest
project area, tax increment funds can be collected through 2042. While the Agency is
able to collect tax increment through 2042, it must issue or commit all debt obligations
by July 21, 2014. As a result,. the City has been refining capital programs and their
associated costs. On April 8, 2008, the Agency confirmed its long-term priorities
regarding capital programs to be funded with redevelopment funds, as follows:
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• Affordable Housing
• Civic Center Parks and Public Facilities
• Downtown Parking Strategy
Traffic Signal Master Plan
• Memorial Park Expansion
• Commercial Corridor Improvements
• Infrastructure Improvements
In addition, City Council directed staff to review whether proposed improvements at
Santa Monica High School could be eligible for redevelopment funding. To accelerate
the planning and design of the capital programs, the Council approved creating and
funding positions in the Community and Cultural Services, Public Works aril Planning
and Community Development departments. To date, each .department has hired
supplemental staff and work efforts to expedite the capital programs have commenced.
The next step for the programs is project design, cost estimating and implementation. A
status update concerning each program is provided in Attachment B.
Given the 2014 deadline for establishing Agency debt, as well as the. pending FY
2009/2010 City budget and the need to adopt aFive-Year Agency Implementation Plan
by the end of 2009, staff has reviewed all proposed City capital improvements, as well
as the joint-use improvements proposed at Santa Monica High School, to assess
eligibility for redevelopment funding, consistency with the Redevelopment Plan and
consistency with the City Council's funding priorities. Of the $1.4 billion in City capital
needs, as well as the $235 million in funding formally requested .for joint-use
improvements at Santa Monica High School, approximately $1.27 billion in capital
projects appear to be eligible for redevelopment funding, provided that certain state-
mandated findings can be made and requirements can be satisfied.
In order to frame the Council's consideration of Agency funding priorities, Public
Resources Advisory Group (PRAG), the Agency's financial advisor, has prepared an
updated estimate of the Earthquake Redevelopment Project Area's debt capacity
(including pay as you go projects), excluding housing set-aside funds, over the next five
years (see Attachment C). Using various debt structures, PRAG estimates a Project
Area debt capacity of $283 million to $313 million, depending on assumptions regarding
2
the State's continuing efforts to appropriate local redevelopment funds. The debt
capacity estimate is based on relatively conservative projections of growth in assessed
valuation to reflect the current state of the real estate economy and the City's past
experience with real estate downturns. The $283 million debt capacity estimate
assumes permanency of the State take-away that was implemented during the current
fiscal year. Since the Project Area has a limit on tax allocation bonds of $95 million, the
debt would. need to be structured in other ways in order to borrow more than that
amount. The debt could take. the form of lease revenue bonds through the General
Fund or other funding mechanisms to leverage the Agency's tax increment. It may not
be possible to borrow the full projected capacity without negatively affecting the City's
AAA bond rating, and therefore RDA borrowing under a lease revenue structure may
need to be balanced against other City borrowing needs. As the long-term priority
projects are further defined to the point of becoming project-ready, a recommended
debt structure for each project will be prepared. Going forward, the City's and Agency's
ability to access debt will be impacted by several factors, including the state of the real
estate. and credit markets, the City and Agency's assessed valuation of real property,
and expected impacts of debt financing on the City's credit rating. Given the 2014
deadline for the Agency to incur debt, the City and the Agency will need to explore
various financing mechanisms, including lease revenue bonds, bank financing,
cooperation agreements and reimbursement agreements.. Some of the financing
instruments, such as cooperation agreements, could be structured to provide for greater
flexibility in the event that the actual growth in tax increment is higher than debt-
financing estimates allow.
Discussion
With the pending preparation of the FY 2009/2010 City budget and the. Five-Year
Redevelopment Agency Implementation Plan, staff seeks City Council direction on
refined Agency funding priorities and commitments. Staff has prepared funding
recommendations for Council consideration. In considering the Agency's funding
capabilities, staff recommends that preliminary allocations be considered relative to the
$283 million debt capacity estimate. Although, the Agency's ultimate debt capacity
3 .
could be greater if the State take-away does not become permanent, or if tax increment
grows more quickly than estimated, it is also possible that the debt capacity could be
lower if the State take-away is increased or assessed values decline. The $283 million
is the most .reasonable estimate at this time for consideration of funding
recommendatiohs.
In evaluating the $1.27 billion in capital projects that are potentially eligible for
Redevelopment funding, staff has reviewed proposed projects according to the following
criteria (see Attachment A):
• Advances Redevelopment Agency goals and priorities
• Advances City Council-adopted Community Priorities
• Satisfies long-standing, unmet community needs
• Creates facilities that can be maintained and operated in the long-term
• Leverages funding from other sources
• Advances a prior City investment
On that basis, staff recommends that Council approve the following preliminary funding
allocations, to be reflected in upcoming budgets and plans (see Attachment D):
- Affordable Housing
Funding the production .and preservation of affordable housing is $ 10 Million
required of all redevelopment agencies. Santa Monica has historically
funded these activities at a level higher than required by State law in
order to support community priorities related to housing accessibility,
homelessness and economic diversity, and to achieve compliance with
voter-mandated outcomes related to housing diversity. In addition to
the $75 million line of credit that has. already been established for
affordable housing, an additional $34 million is expected to be available
from the Earthquake Project Area Affordable Housing Set-Aside. Staff
recommends that the Council continue to dedicate all net available
funds from the Ocean Park and Downtown Redevelopment projects
areas to affordable housing, in addition to the required set-aside funds,
which- is expected to total $12 million. Staff recommends that an
additional amount from the Earthquake Recovery Project Area non-
. housing funds be allocated to affordable housing.
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- Civic Center Parks and Public Facilities
The City adopted the first incarnation of the Civic Center Specific Plan in
1993, followed by amendments in 2000 and 2005. The anticipated arrival
of the Exposition Light Rail, as well as Santa Monica High School Master
Plan, creates exciting opportunities to enhance integration among the Civic
Center, Downtown and High School. The City Council discussed these
opportunities at a study session on March 24, 2009.
Allocations are recommended for specific components of the greater Civic
Center area plan:
Planning and Design:
Palisades Garden Walk: The Civic Center Specific Plan envisions the
creation of a six-acre park and its surrounding streetscape across from
City Hall and The Village, which would result in a net new addition of
park space to the City's open space system and provide critical
pedestrian links. The proposed allocation potentially could be leveraged
with outside grant funds.
Civic Auditorium Adaptive Reuse and Renovation: The Civic Center
Specific Plan and Cultural Capital envision the Auditorium as a
rehabilitated cultural gem with additional cultural amenities. Pursuant to
recent Council direction, staff is pursuing potential public-private
partnership opportunities. Under any scenario, a capital contribution
toward the Auditorium's rehabilitation is anticipated.
$2.5 Million
$25 Million
$25 Million
Civic Auditorium District Projects: The Civic Center Specific Plan $21 Million
envisions a 5.6-acre park, anew cultural facility as envisioned in
Creative Capital and the more recent joint use study of the Samohi and
Civic Auditorium campuses, surrounding streetscapes and pedestrian
linkages that complement the Civic Auditorium's programs.
Early .Childhood Education Center: The Civic Center Specific Plan $3.4 Million
envisions a center serving infants, toddlers and pre-school age children
that complements the form and activities of the Civic Auditorium District.
The proposed allocation would support necessary utility and site work to
facilitate development of the center by Santa Monica College with
approved Bond funds.
Freeway Capping: The Downtown/Civic Center strategy, as well as the $2 Million
LUCE, Open Space Element and Civic Center Specific Plan, envision
decking the I-10 freeway. The proposed allocation could be used to
address the connection between Palisades Garden Walk and
Downtown, or could serve as a local match for outside grants to pursue
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broader capping opportunities.
Expo Green Streets and Pathways: The tremendous increase in $20.9 Million
pedestrian volumes generated by the Expo terminus station creates the
need for new circulation improvements, including widening Colorado
Avenue sidewalks and creating alternatives to relieve pressure from
Fourth Street and Colorado Avenue The proposed allocation could
facilitate the minimum necessary circulation improvements and/or could
be used to leverage other funding.
Santa Monica High School Joint Use Project.: While not a part of the $46 Million
adopted Civic Center Specific Plan,. the Santa Monica-Malibu Unified
School District (SMMUSD) has developed a broad plan to overhaul
Santa Monica High School. The plan includes the Michigan Avenue
pedestrian concourse to facilitate public access through the campus and
new or redeveloped recreational and cultural facilities that the broader
community could access when not needed by the high school. The
proposed allocation could be leveraged with other funding sources. A
primary concern with the creation of new joint-use facilities is the City's
long-term- ability to provide the necessary operating funds for staffing
and maintenance to support the community's use during non-school
hours.
Shared Parking: Several of the cost estimates for projects in the Civic $25 Million
Center, including the Santa Monica High School Joint Use Project,
assume that underground parking will be incorporated into the projects.
Pursuant to Council direction, staff is currently completing ashared-use
parking analysis in order to ensure that parking is strategically placed to
be shared among the various destinations, instead of being overbuilt in
separate locations. Rather than funding individual parking for each
project, staff recommends an allocation for shared parking among the.
projects.
- Downtown Parking Strategic Plan
.The City Council formally addpted the Downtown Parking Strategic Plan in
2005, following several years of consideration by aCouncil-appointed task
force. Implementation of the plan supports the Community Objective related
to infrastructure and addresses parking needs, one of the top issues
consistently identified in the biannual resident survey.
Parking Design and Construction: The plan anticipates that the City $1 Million
will make a contribution of $18 million toward parking structure design
and construction that is equivalent to what the Agency would otherwise
have spent on seismic retrofitting of three parking structures; $17 million
of Parking. Authority funds are estimated to be available based on
6
PRAG's debt capacity analysis for the Parking Authority and the Agency
is recommended to contribute the balance.
Property Acquisition: An allocation for property acquisition purposes is $27 Million
recommended to ehsure that the City is able to implement the parking
program. If properties purchased are not needed for the parking
program, they could be used for other community purposes such as
affordable housing or open space.
- Commercial Corridor Improvements
The LUCE planning process has identified the need for improvements to
key commercial corridors in Santa Monica. Enhancements to the corridors
could include streetscape improvements, shared parking strategies, fagade
improvements, etc. Two of the highest priorities identified through the
LUCE process are Lincoln and Pico Boulevards.
Lincoln Boulevard Enhancements: As a key gateway to Santa $9 Million
Monica and the Earthquake Recovery Redevelopment Area, Lincoln
Boulevard and the surrounding neighborhoods would benefit from a
comprehensive strategy to enhance the boulevard. The recommended
allocation could be used to leverage public and private funds.
Pico Boulevard Enhancements: While streetscape improvements $9 Million
were completed along Pico Boulevard in the last decade, Pico
Boulevard and the surrounding neighborhoods would benefit from
additional strategies to enhance the boulevard. The recommended
allocation could be used to leverage public and private funds for these
improvements.
- Traffic Signal Master Plan
Addressing traffic congestion is consistently rated as one of the highest
priorities in the biannual resident survey, and the Community Priorities also
address the need to upgrade aging Infrastructure. City, Agency and
regional transportation funds have financed Phases I -III of the Traffic.
Signal Master Plan. An allocation to complete the final Phases is
recommended.
Phase IV: Portions of 11t", 14tH 17t" 20t"' 30tH Streets, Broadway Ave., $2.4 Million
Clovertield Blvd:, Colorado Ave., Michigan Ave., Ocean Park Blvd.,
Olympic Blvd.
Phase V: Portions of 7t" Street, 30t"Street, Montana Ave., and Ocean $3 Million
Ave.
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- Memorial Park Expansion
In 2004, the City invested $18.5- million to purchase the 2.9 acre Fisher $15 Million
Lumber site, at 1601 14t" Street which is adjacent to Memorial Park, with
the intention that the additional property could enhance recreational
opportunities and potential water infrastructure needs, supporting
Community Priorities related to Youth, Sustainability, Infrastructure and
Recreation and Active Living. Park expansion is also supported by the
goals of the City's Open Space Element and Parks and Recreation Master
Plan. In addition to park development costs, project implementation
considerations include the need to relocate the City's Community
Maintenance Yard from the potential park expansion site (former Fisher
Lumber site) and the need to provide for ongoing maintenance of an
enlarged park.
- Infrastructure Improvements
Other infrastructure improvement projects that are being recommended are
as follows:
Pier Infrastructure Improvements: Investing in the core infrastructure $11 Million
of the Pier supports the continued operation and safety of the landmark
attraction for residents and visitors.
Pico Neighborhood Library: Creation of a neighborhood library ih the $12.8 Million
Pico neighborhood has gained strong community backing. Anew
branch library would support Community Priorities related to Youth,
Education and Infrastructure. A primary challenge in considering a new
library is the on-going costs to operate and maintain the facility.
Beach Path Widening: Staff is pursuing grant funding to allow for $1 Million
separate bike and pedestrian paths north of the Santa Monica Pier. The
recommended allocation would allow for a local match as well as an
opportunity to address the significant bicycle and pedestrian path
conflicts that occur on the existing path north of the Pier to the northern
boundary of Santa Monica State Beach immediately adjacent to the
Pier.
Citywide Tree Planting: The recommended allocation would support $.3 Million
street tree planting within the Redevelopment Area.
Bike Transit Center: The recommended allocation would leverage $.2 Million
other graht funds that have been allocated to the project.
Exposition Light Rail Station Enhancements: Creating high-quality $10 Million
station areas will be critical to the success of light rail transit in Santa
Monica. The recommended allocation could leverage other public and
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private funds in the creation of world-class station areas.
Streetlight Retrofit: The recommended allocation would address the $.3 Million
safety and reliability of a core infrastructure that serves the project area.
In addition to the allocation of funding relative to the Agency's currently estimated debt
capacity, the Council may wish to identify additional projects that could be considered if
the State take-away is not permanent or if assessed valuation within the Project Area
grows more quickly than expected.
Next Steps
The City Council and Agency-funding priorities will be reflected in the City's Capital
Improvement Program for FY 2009-10 through 2013-14, the City's FY 2009-10 budget,
and the Agency's Implementation Plan to be considered later this year. Staff will
continue to explore debt instruments to maximize funding. If the Council approves
funding for Santa Monica High School joint-use. improvements, staff will work with
School District representatives on requirements and agreements related to such
funding.
Financial Impacts & Budget Actions
All budget actions resulting from these funding commitments will be included in the FY
2009-2010 Proposed Budget and any approved funding commitments beyond this fiscal
year will be appropriated each fiscal year thereafter
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Prepared by:
Tina Rodriguez, Redevelopment Administrator
Approved:
~~ _ ~'~~ ,~ ~~'~c~
Andy le, Director
Housing and Economic Development
Approved:
~~~ ~ ~~
Carol Swindell, Director
Finance
Attachments:
to Council:
i Uv
P. (ont Ewell
City Manager
Attachment A: Redevelopment Eligible Projects
Attachment B: Status Update on Redevelopment Priority Programs
Attachment C: Summary of Debt Capacity Estimates
Attachment D: Summary of Recommended Funding Allocations
10
PROJECT TITLE
Equipment Replacement
City T.V. Studio
Civic AUditoriumRVAC Upgrades
Fire Personal Protective Equipment Replacement
Fire Radio Infrastructure Replacement
Fire Vehicle Replacement Program
Municipal Trunked Radio Comm
Purchase Building for City TV
Refuse Container Replacement
Vehicle Replacement
Vehicles -New Solid Waste
TOTAL
Facilities
City TV Studio - Adelphia Funds
Civic Auditorium Carpet Replacement
Civic Auditorium Chair Replacement
Civic Auditorium District Projects*
Civic Auditorium Repairs
Civic Center - ECEC*
Civic Center Project Planning - CCS*
Colorado YardReplacemenf
Council Chamber Meeting Mgmt & AV Upgrade
Facilities Renewal Program
New Fire Station #1
Newcomb Pier Improvements
Ocean Park Library Renovation
Pico Neighborhood Library-Option 1*
Attachment A oaimizoo9
S of7
REDEVELOPMENT ELIGIBLE PROJECTS
2009-2014 Capital Need Total
Five -Year
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Need
1,500,000 0 0 0 0 1,500,000
505,000 25,000 25,000 25,000 25,000 605,000
65,000 65,000 65,000 65,000 65,000 325,000
100,000 100,000 100,000 100,000 100,000 500,000
625,100. 645,000 736,800 747,200 751,100 3,505,200
7,000,000 0 0 0 0 7,000,000
3,200,000 0 0 0 0 3,200,000
525,000 525;000 620,000 620,000 732,500 3,022,500
4,379,180 4,475,423 - 4,387,623 4,386,172 4,392,760 22,021,158
293,800 169,500 372,900. 334,500 113,500 1,284,200
18,193,080 6,004,923 6,307,323 6,277,872 6,179,860 42,963,058
1,500,000 0 0 0 0 1,500,000
200,000 0 200,000. 0 0 400,000
0 180,000 0 0 0 180,000
0. 16,592,000 126,420,000 54,307,000 0 197,319,000
200,000 200,000 200,000 200,000 200,000 1,000,000
0, 215,000 .3,175,000 0 0 3,390,000
2,500,000 0 0 0 0 2,500,000
0 3,068,032 22,254,512 22,254,512 0 47,577,056
445,000 0 0 0 0 445,000
3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 15,000,000
5,149,000 5,149,000 5,149,000 5,149,000 5,149,000 25,745,000
2,800,000 2,052,000 1,753,000 1,333,000 330,000 8,268,000
0 0 29,801 508,971 0 538,772
704,933 11,237,684 862,803 0 0 12,805,420
*Projects identified as candidates for RDA funding
PROJECT TITLE
Pico Neighborhood Library -Option 2*
Pier Infrastructure Improvements
Promenade Facility Maintenance
Public Safety Storage Facility*
Reactivation of Fire Com Center
Recarpeting Brach Libraries
Recycling and Solid Waste Drop Off Center
Senior Recreation Cntr & KEC Use Study
Structural Evaluation of Fire Station 3*
Woodlawn Cemetery Mausoleum Electrical Repair
Woodlawn Cemetery Irrigation System Upgrades
Woodlawn Cemetery Sewer Replacement
TOTAL with Library Option 1
TOTAL with Library Option 2
Housing..
CityWideHOUSingTrust
HOME Housing Trust
Housing Projects
Low /Moderate Income Housing -Downtown RDA
Low /Moderate Income Housing -Earthquake RDA
Low /Moderate Income Housing -Ocean Park RDA
TORCA Affordable Housing Trust
TOTAL
Attachment A 04/07/2009
2 of7
REDEVELO PMENT ELIGIBLE PROJECTS
2009-2014 Capital Need Total
Five -Year
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Need
17,673,076 11,277,101 862,803 0 0 29,812,980
2,964,000 0 0 0 0 2,964,000
200,000 210,000 220,000 230,000 240,000 1,100,000
4,999,600 0 0 0 0 4,999,600
94,650 0 0 0 0 94,650
0 95,830 0 0 0 95,830
1,000,000 12,000,000 0 0 0 13,000,000
0 165,000 0 0 0 165,000
150,007 0 0 0 0 150,007
170,000 0 0 0 0 170,000
130,000 0 0 0 0 130,000
240,000 0 0 0 0 240,000
24,747,190 54,164,546 163,264,116 86,982,483 8,919,000 337,697,335
41,715,333 54,203,963 163,264,116 86,982,483 8,919,000 354,704,895
500,000 500,000 500,000 500,000 500,000 2,500,000
475,000 475,000 475,000 475,000 475;000 2,375,000
1,529,000 1,529,000 1,529,000 1,529,000 1,529,000. ~ 7,645,000
247,000 .251,000 368,000 429,000 437,000 1,732,000
10,513,586 7,646,508 ~ 8,179,586 8,718,820 9,297,208 44,355,708
282,600 294,100 305,300 316,200 328,700 1,526,900
100,000 100,000 100,000 100,000 100,000 500,000
13,647,186 10,795,608 11,456,886 12,068,020 12,666,908 60,634,608
* Projects identified as candidates for RDA funding
PROJECT TITLE
Parks
Beach Bike Path Widening*
Beach Restrooms
Beach Volleyball Court Replacement*
Civic Center Freeway Capping*
Civic Center Freeway Capping Option 1
Civic Center Freeway Capping Option 2*
Civic Center Freeway Capping Option 3*
Civic Center Palisades Garden Walk*
Crescent Bay Park Rehab*
Memorial Park Freeway Capping*
Memorial Park Master Plan*
Par Course Equipment*
Park Fencing*
Playground Shade*
Retaining Wall for Joslyn & Los Amigos Parks*
Shotgun House Preparation*
Signage and way finding for beach & parks
Universally Accessible Playgrounds*
TOTAL with Freeway Capping Option 1
TOTALwith Freeway Capping Option 2
TOTAL with Freeway Capping Option 3
Attachment A
REDEVELOPMENT ELIGIBLE PROJECTS
2009-2014 Capital Need
2009-2010 2010-2011 2011-2012
04/07/2009
3 of7
Total
Five -Year
2012-2013 2013-2014 Need
1,000,000 3,000,000 0 0 0 4,000,000
600,000 0 0 0 0 600,000
115,000 115,000 0 0 0 230;000
250,000 150,000 350,000 600,000 0 1,350,000
0 0 0 0 2,000,000 2,000,000
0 0 0 0 57,000,000 57,000,000
0 0 0 0 165,000,000 - 165,000,000
5,290,000 270,000 70,684,000 3,601,000 0 79,845,000
0 0.. 0 0 2,778,797 2,778,797
0 75,000 300,000 750,000 182,000,000 183,125,000
300,000 1,160,000 19,550,000 0 0 21,010,000
0 0 0 0 125,000 125,000
360,180 0 0 0 0 360,180
182,000 135,000 0 0 0 317,000
380,000 210,000 0 0 0 590,000
38,000 0 0 0 0 38,000
75,000 75,000 75,000 0 0 225,000
0 100,000 50;000 500,000 0 650,000
8,590,180 5,290,000 91,009,000 5,451,000 186,903,797 297,243,977
8,590,180 5,290,000 91,009,000 5,451,000 241,903,797 352,243,977
8,590,180 5,290,000 91,009,000 5,451,000 349,903,797 460,243,977
* Projects identified as candidates for RDA funding
PROJECT TITLE
Streets/Sidewalks & Traffic;
1550 Palisades Beach Road (PCN) Signal
7th Street Bridge*
Additional Tree Planting*
Airport Slurry Seal & Re-Stripe
Annual Alley Improvement Program
ATMS Phase V*
ATMS Playa Vista
.ATMS Special Office District Funds -Phase 4
ATMS Traffic.Signal Timing Plans*
Bicycle Racks*
Bicycle Technology Demonstration Project - MTA
Bike Transit Center-Grant Funded
Bike Transit Centex-Unfunded
Bike/Ped Wayfinding Signage
Borderline Neighborhood Improvements
Bus Pads on Transit Routes -Prop A
Civic Center Bridge Alternatives*
Civic Center Fujinamiya Douri Extension*
Cloverfield Replacement Lighting*
Colorado Ave. Streetscape*
Lincoln Corridor Strategy & Improvements
Crosswalk Repair
Downtown Strategic Parking Enhancement Program*
Expo/Bergamot Station*
Expo/Downtown Station*
Expo/Memorial Park Station*
Attachment A o4io~izoo9
4or7
REDEVELOPMENT ELIGIBLE PROJECTS
.2009-2014 Capital Need total
Five -Year
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Need
0 300,000 0 0 0 300,000
0 50,000 150,000 600,000 11,500,000 12,300,000
650,000 50,000 50,000 0 0 750,000
250,000 250,000 250,000 250,000 250,000 1,250,000
2,303,982 2,373,101 2,444,294 2,517,623 2,593,452 12,232,452
0 3,000,000 0 0 - 0 3,000,000
636,000 0 0 0 0 636,000
5,000,000 0 0 0 0 5,000,000
50,000 50,000 - 50,000 0 0 150,000
100,000 100,000 100,000. 100,000 100,000 500,000
240,000 85,000 0 0 0 325,000
2,253,000 50,000 0 0 0 2,303,000
320,000 0 0 0 0 320,000
100,000 250,000 0 0 0 350,000
3,410,000 0 0 0 0 3,410,000
300,000 300,000 300,000 300,000 300,000 1,500,000
50,000 450,000 500,000 500,000 10,000,000 11,500,000
15,000 .100,000 75,000 1,550,000 0 1,740,000
623,000 0 0 0 0- 623,000
75,000 150,000 400,000 600,000 7,400,000 8,625,000
0 3,000,000 0 0 9,000,000. 12,000,000
78,000 78,000 ~ 78,000 78,000 78,000 390,000
11,000,000 6,000,000 88,240,000 6,000,000 6,000,000 .117,240,000
100,000 250,000 500,000 5,000,000 0 5,850,000
100,000 250,000 600,000 8,000,000 0 8,950,000
100,000 250,000 500,000 2,000,000 11,000,000 13,850,000
* Projects identified as candidates for RDA funding
PROJECT TITLE
I-10/4th Street/Olympic Blvd. Improvements*
Ocean Park Blvd Improvements (Lincoln to Neilson)
Parking Lot Maintenance (Airport)
Parking Meter Debit Card System
Parking Meter Replacement & Coin Repair
Pico Blvd. Corridor Improvements*
Real Time Beach Parking Signs*
Real Time Beach Parking Signs -MTA
Santa Monica Blvd. Street Resurfacing
Security Enhancement Project
Signing & Striping Plan Preparation
Southside Improvement Project
Street & Parking Lot Resurfacing /Sidewalk Repair
Street Light Retrofit*
Traffic Signal LED Replace & Countdown
Traffic Signal Synchronization* -
Traffic Signal Synchronization -MTA
Westside Ped Imp @ Bus Stops
Wireless Parking Meter Pilot
TOTAL
Technology
Alert Notification System
Broadband Wireless Network
Computer Disaster Recovery
Computer Equipment Replacement Program
Computer Network Maintenance
Integrated Library System
Attachment A oa/o~/zoos
REDEVELO
PMENT ELIGIBLE PROJECTS S of7
2009-2014 Capital Need total
Five-Year
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Need
0 200,000 0 0 0 200,000
3,000,000 3,000,000 0 0 0 6,000,000
50,000 50,000 50,000 50,000 50,000. 250,000
100,000 0 0 0 0 100,000
101,400 101,400 2,100,000 37,000 37,000 2,376,800
250,000 150,000 200,000 400,000 8,000,000 9,000,000
250,000 0 0 0 0 250,000
401,000 66,000 0 0 0 467,000
357,333 0 0 0 0 357,333
70,000 70,000 0 0 0 140,000
70,000 70,000 70,000 70,000 70,000 350,000
100,000 100,000 100,000 100,000 100,000 500,000
5,239,650 5,247,555 5,255,430 5,263,365 5,271,270 26,277,270
3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 15,000,000
160,000 160,000 160,000 160,000 160,000 800,000
2,367,000 '0 0 0 0 2,367,000
0. 0 264,000 669,000 0 933,000
0 0 0 1,600,000 0 1,600,000
0 105,000 0 0 0 105,000
43,270,365 29,706,056 105,436,724 38,844,988 74,909,722 292,167,855
125,000 125,000 125,000 125,000 125,000 625,000
450,000 0 0 0 0 450,000
445,000 0 0 0 0 445,000
1,602,410 1,089,555 1,089,956 1,089,957 1,089,958 5,961,836
35,250 56y250 55,250 55,250 55,250 276,250
344,060 0 0 ~ 0 0 344,060
* Projects identified as candidates for RDA funding
Attachment A
REDEVELOPMENT ELIGIBLE PROJECTS
2009-2014 Capital Need
PROJECT TITLE
2009-2010 2010-2011 2011-2012
oa/o~/zoos
6 of7
Total
Five -Year
2012-2013 2013-2014 Need
Meet Me Room 5,000,000 ~ 0 0 0 0 5,000,000
Preferential Parking System Tech Imp 85,000 0 0 0 85,000
Telecommunication Services 716,644 716,644 716,644 716,644 716,644 3,583,220
TOTAL 8,823,364 1,986,449 1,986,850 1,986,851 1,986,852 16,770,366
Utilities.
Arcadia Reservoir Roof Replacement 8,580,000 0 0 0 0 8,580,000
AB1600 Sewer Expansion
Analysis of non-Potable Water Dist. Sys.
Hanson 8 Software Upgrade 375,000
100,000
150,000 500,000
0
0 500,000
0
0 500,000
0
0 500,000
0
0 2,375,000
100,000
150,000
Hyperion Capital Payment 3,948,030 4,938,030 4,989,330 3,139,110 2,709,450 19,723,950
San Vicente Water Boost Station Generator 400,000 0 0 0 0 400,000
Title 22 SMURRF Upgrades 0 2,500,000 0 0 0 2,500,000
Underground Tank Management 462,587 242,587 242,345 328,409 132,319 1,408,247
Vertical Asset Mgmt Plan -Wastewater 0 500,000 0 0 0 500,000
Wastewater Main Replacement 300,000 500,000 500,000 500,000 500,000 2,300,000
Water Main Replacement 925,000 1,000,000 1,500,000 1,500,000 1,500,000 6,425,000
Water Main Replacement -Force Account 500,000 500,000 500,000 500,000 500,000 2,500,000
Advanced Fleet Mgmt System 1,000,000 0 0 0 0 1,000,000
TOTAL 16,740,617 10,680,617 .8,231,675 6,467,519 5,841,769 47,962,197
* Projects identified as candidates for RDA funding
PROJECT TITLE
Transit
Advacned Fleet Management Program
Bus Components Replacement Program
Bus Replacement Program
Bus Stop Amenities
Campus Expansion Project
Downtown Transit Mall
Facility Upgrade and Renovation
Farebox System
Prop 16 Safety and Security
Safety & Security Project
Service Vehicles
Shop Equipment
Technology Equipment
Telecommunication Services
Transit Center Project
Universal Fare System
Yard Improvement
TOTAL
Attachment A o4imizoo9
7 of7
REDEVELOPMENT ELIGIBLE PROJECTS
2009-2014 Capital Need total
Five-Year
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Need
1,000,000 0 0 0 0 1,000,000
2,895,000 5,450,000 3,780,000 4,835,000 4,595,000 21,555,000
16,222,305 7,003,000 0 0 39,305,000 62,530,305
1,670,000 1,620,000 60,000 10,000 10,000 3,370,000
1,000,000 0 -0 0 0 1,000,000
10,000 10,000 15,000 10,000 10,000 55,000
275,000 250,000 250,000 250,000 250,000 1,275,000
1,075,000 75,000 75,000 75,000 2,075,000. 3,375,000
476,373 476,373 476,373 476,373 476,373 2,381,865
0 100,000 100,000 100,000 100,000 400,000
0 460,000 80,000 0 0 540,000'
60,000 60,000 60,000 60,000 60,000 300,000
1,000,000 600,000 600,000 600,000 256,506 3,056,506
50,000 50,000 43,340 43,340 43,340 230,020
168,000 150,000 150,000 150,000 150,000 768,000
0 0 0 0 100,000 100,000
400,000 400,000 400,000 200,000 200,000 1,600,000
26,301,678 16,704,373 6,089,713 6,809,713 47.631.219 tnss~ee4e
Total with $234,965,990 RDA Fundinq Request from SMMUSD, NOT included above: 1,433,942,082
to 1,597,322,082
Potential RDA Funded Projects: 64,080,796 69,312,785 323,546,606 93,490,000 480,382,797 1,265,778,974
* Projects identified as candidates for RDA funding
ATTACHMENT B
STATUS UPDATE ON REDEVELOPMENT PRIORITY PROGRAMS
Affordable Housing: The preservation and production of affordable housing has- been
a top priority for Agency funds. At its April 22, 2008 meeting, the Agency authorized an
agreement with Bank of America to obtain a line of credit in the amount of $50,000,000
for purposes of accelerating affordable housing development, with an option to increase
the line of credit by an additional $25,000,000. This leveraging of-set-aside funds
enhances the City's ability to more immediately address the need for affordable housing
and avoid inflationary increases in land and construction costs. Historically, the Agency
has provided more than the 25 percent of its gross redevelopment tax increments and
over 40 percent of net available redevelopment- revenues on affordable housing. The
Agency shall continue to fund affordable housing and whenever possible allocate
additional resources beyond the required 20 percent housing set-aside.
Civic Center Parks and Public Facilities: Extensive efforts to implement the Civic
Center Specific Plan have been made since its adoption in 2005. On June 10 2008, a
significant milestone was achieved when the Agency adopted the resolutions approving
the DDA and Lease Agreement between the Agency and Related/Santa Monica Village,
LLC for the Village project, which features housing, neighborhood serving retail, open
space and additional public benefits that reflect the City's values and. policies toward
supporting affordable housing and child care, artist housing, alternative energy
production and sustainable design and transportation.
To continue moving the Civic Center program forward, redevelopment funding is
necessary to implement other key public improvements such as the design and
construction of the Palisades Garden Walk Park and the Early Childhood Education
Center and the rehabilitation and expansion of the landmark Civic Auditorium.
Additionally, with Redevelopment funds, the City will have the opportunity to transform
circulation patterns within the Civic Center and the Downtown by integrating efforts to
-1-
address the following objectives:
o Connecting the Civic Center and Downtown
o Creating a vibrant downtown LRT transit gateway
o Enhancing and expanding open space and park area
o Resolving circulation issues for pedestrians, bicycles, transit and other vehicles
o Addressing parking needs comprehensively, identifying shared use opportunities.
The areas of focus are briefly described below.
• Connecting the Light Rail Station, Downtown and the Civic Center districts
together by widening the sidewalks along Colorado to create a green pedestrian
boulevard from the Expo light rail station to the Pier, beach and Civic. Center by
removing one vehicle travel lane. This improvement would facilitate the
tremendous increase in pedestrian volume generating from the station.
• Modifying the circulation system through revisions to the street grid with the
creation of a new street to divert traffic away from the 4th and Colorado
intersection. This improvement would reduce conflicts with Big Blue Bus and
enhance circulation in the downtown and civic center.
Creating additional park and open space by decking the I-10 freeway for all or
part of the sections from Ocean Avenue to 4th Street, this improvement would
integrate the Colorado Avenue streetscape as the northern edge of Palisades
Garden Walk (PGW) and create a pedestrian promenade/axis from 2"d Street
across the deck and into PGW.
• Comprehensively evaluating parking needs to maximize shared use by
considering peak demand days, times, and fluctuations caused by events and
seasons. This effort would maximize the value of investment by evaluating joint
use opportunities for special events, Samohi, the Civic Center Auditorium, and
transit.
Enhancing cultural facilities through joint use opportunities with Samohi and
Civic Center Auditorium. The Santa Monica-Malibu School District, drawing on
the opportunity to connect its long-range plan to expand the Samohi campus with
revitalization efforts in the Civic Center, proposes to construct several new
improvements including apedestrian/bicycle promenade, recreational facilities
and amphitheater. Based on review of the School District's proposal, these
projects appear to be eligible for redevelopment funding, subject to the School
District's ability to meet certain Agency .requirements concerning ability to
demonstrate need for funding and findings of community benefit.
-2-
Downtown Parking Strategic Plan: In FY 08-09, Walker Parking initiated a study
concerning the pricing and operations of the downtown parking structures. The final
recommendations from this study will be presented to Council at a future date. City staff
has issued an RFP for the design and build of Parking Structure 1 and 6; award of
contract for the selected firm will. be presented to Council in early FY 09/10; design work
is anticipated to commence in Fall 2009 and construction in FY 11/12. Bayside District
stakeholders have requested that the program address project enhancements, including
parking structure landscaping, signage and entrance lighting. This program also
includes funding for land acquisitions, purchase and installation of bicycle racks within
the downtown and in the newly constructed bicycle transit centers.
Traffic Signal Master Plan Implementation: This program features improvements to
synchronize traffic signals, modernize and install fiber optic communication to connect
every traffic signal at all the intersections onto the City's Advance Traffic Management
System, and the. installation of a traffic. signal to control northbound and southbound
traffic on PCH. Phase 1 and 2 of the program, which includes the traffic signals in the
downtown, portions of 4th street and Lincoln have been completed; Phase 3 is currently
underway and anticipated to be finished by Fall 2009; Phase 4a and 4b is anticipated to
be completed by Fall 2010.
Memorial Park Master Plan: The LUCE identifies Memorial Park as an "activities
center" with the park block serving as a catalyst for building a vital mixed-use
neighborhood. This direction, combined with the policies of the Open Space Element,
make the careful master planning of this block particularly significant. The first phase of
this project will be extensive community process to develop a long term master plan for
this 13.4 acre block bounded by 14th Street, 16th Street, Colorado Avenue and Olympic
Boulevard including the development of the programmatic vision for the property, a
phasing and financing plan, environmental review, and phased implementation including
identification of a site, design and construction of a permanent facilities for the
Community Maintenance uses that are currently occupying a portion of the property.
-3-
Commercial Corridor Improvements: To date, extensive community outreach for the
City's Land Use and Circulation Element have been conducted and the work related to
framework, design studies and improvement studies has commenced. Based on the
community's input, this program will include installation of pedestrian access ramps,
pedestrian barriers, and traffic signal modifications to increase pedestrian safety;
increased parking opportunities; expanded public bus facilities; and strengthened street
connections.
Infrastructure Improvements: To evaluate which of the City's core infrastructure,.
such as streets and sidewalks, storm water facilities, and streets lights are in need for
seismic upgrades and complete reconstruction, the Agency approved funding to
complete a full study of these needs. Studies of these needs are currently underway,
with the needs assessment for the City's existing streetlights, parks/beach signage and
wayfinding and bike/pedestrian wayfinding signage completed. The completed studies'
results recommend replacement of outdated circuits and light poles throughout the City,
implementation of new and improved signage and wayfinding for all parks .and the
beach, and commencement of signage strategy and plan development for bike/ped
wayfinding. Findings from the remaining assessment studies and related improvement
costs will be incorporated into the City's CIP program in the future.
-4-
ATTACHMENT C-SUMMARY OF DEBT CAPACITY ESTIMATES (Schedule 1)
City of Santa Monica -Earthquake Redevelopment Area
Scenario: Base Case with Permanent ERAF
(Amounts in $000)
FY 2008-09 FY 2009-10 FY 2010-11 FY 2011.12 FY 2012-13 FY 2013-14
Taxable Value` 10,387,402 10,387,402 10,387,402 10,583,999 10,784,527 10,989,066
Base Year AV (3,867,833) (3,867,833) (3,867;833) (3,867,833) (3,867,833) (3,867,833)
Total Increment 6,519,569 6,519,569 6,519,569 6,716,166 6,916,694 7,121,233
Tax Rate 1.01286% 1.01095% 1.00906% 1.00718% 1.00520% 1.00520%
Tax Increment Revenue 66,034 65,910 65,786 67,644 69,527 71,583
' Assumes real property AV growth rates of 0.0 % 0.0% 2.0 % 2.0% 2.0
Fund
Hs~ce
Projected Debt Service (1) 0 (8,065) (8,065) (8,145) (8,145) (8,237)
Net Revenues 12,317 4,228 4,202 4,493 4,870 5,190
Other RDA Purposes
TI after Housing Set Aside 52,827 52,728 52,629 54,115 55,621 57,266
ERAF, Admin Fee, Pass Thru (22,395) (22,778) (23,087) (23,811) (24,545) (25,463)
SM CCD Repayment 378 377 377 392 407 424
Net Revenues 30,810 30,327 29,918 30,696 31,484 32,227
Current Debt Service (3,580) (3,557) (3,562) (3,562) (3,562) .(3,558)
Projected Debt Service (2). 0 (3,656) (3,656) (3,978) (3,978) - (4,346)
Net Revenues 27,250 23,115 22,701 23,156 23,944 24,323
Other Debt Obligations and Uses
Parking Obligation Debt Service (3,670) (3,670) (3,670) (3,670) (3,670) (3,670)
Projected LRB Debt Service (2) 0 (15,020) (15,020) (15,690) (15,690) (16,700)
RDA Administration Expenses (2,475) (2,636) (2,741) (2,843) (2,951) (3,065)
Net Revenues 21,105 1,788 1,270 953 1,633 889
Notes:
FY2009-14
Total FY 2009-10 FY 2010-11 FY 2011.12 FY 2012-13 FY 2013-14
(1) HOUSING
RDA Debt Proceeds 11,400 9,606 0 847 0 947
B ofA Proceeds 75,000 75,000 0 0 0 0
HOUSING DEBT CAPACITY SUBTOTAL 86,400 84,606 0 847 0 947
Remaining for PAYGO 22,983 4,228 4,202 4,493 4,870 5,190
HOUSING TOTAL PROCEEDS 109,383 88,835 4,202 ~ 5,340 4,870 6,137
(2) OTHER
RDA Debt Proceeds 54,742 46,161 0 4,069 0 4,512
GF-backed LRB Proceeds 221;714 199,767 0 8,911 0 13,036
OTHER DEBT CAPACITY SUBTOTAL 276,455 245,928 0 12,980 0 17,548
Remaining for PAYGO 6,534 1,788 1,270 953 1,633 889
OTHER TOTAL PROCEEDS 282,989 247,717 1,270 13,933 1,633 18,436
Debt Assumptions Housing Other Bank Line GF Lease
Debt Debt of Credit Rev. Bonds
Interest Rate 7.50% - 6.00% 4.70% 5.25%
Term (Years) 30 30 15 30
Target Min. Debt Service Coverage 125% 125 % 125% 110
Max. Outstanding Principal n/a 95,000 75,000 n/a
ATTACHMENT C-SUMMARY OF DEBT CAPACITY ESTIMATES (Schedule 2)
City of Santa Monica -Earthquake Redevelopment Area
Scenario: Base Case with One-Time ERAF
(Amounts in $000)
FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14
Taxable Value* 10,387,402 10,387,402 - 10,387,402 10,583,999 10,784,527 10,989,066
Base Year AV (3,867,833) (3,867,833) (3,867,833) (3,867,833) (3,867,833) (3,867,833)
Total Increment. 6,519,569 6,519,569 6,519,569 6,716,166 6,976,694 7,121,233
Tax Rate 1.01286% 1.01095% 1.00906% 1.00718% 1.00520% 1.00520%
Tax Increment Revenue 66,034 65,910 65,786 67,644 69,527 71,583
* Assumes real property AV growth rates of 0.0 % 0.0% 2.0 % 2.0% 2.0%
Fund
Projected Debt Service (1) 0 (8,065) (8,065) (8 145) (8 145) (8 237)
Net Revenues 12,317 4,228 4,202 4,493 4,870 5,190
Other RDA Purposes
Tl after Housing Set Aside 52,827 52,728 52,629 54,115 55,627 57,266
ERAF, Admin Fee, Pass Thru (22,395) (22,778) (18,379) (19,111) (19,854) (20,650)
SM CCD Repayment 378 377 377 392 407 424
Net Revenues 30,810 30,327 34,627 35,396 36,175 37,040
Current Debt Service (3,580) (3,557) (3,562) (3,562) (3,562) (3,558)
Projected Debt Service (2) 0 (3,656) (3,656) (3,975) (3,978) (4,346)
Net Revenues 27,250 23,115 27,410 27,856 28,635 29,137
Other Debt Obligations and Uses
Parking Obligation Debt Service (3,670) (3,670) (3,670) (3,670) (3,670) (3,670)
Projected LRB Debt Service (2) 0 (15,020) (15,020) (16,850) (16,850) (17,750)
RDA Administration Expenses - (2,475) (2,636) (2,741) (2,843) (2,951) (3,065)
Net Revenues 21,105 1,788 5,979 4,493 5,164 4,652
Notes:
FY2009.14
- Total FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY2013.14
(1) HOUSING
RDA Debt Proceeds - 11,400 9,606 0 847 0 947
B of A Proceeds 75,000 75,000 0 0 0 0
HOUSING DEBT CAPACITY SUBTOTAL 86,400 84,606 0 847 0 947
Remaining for PAYGO 22,983 4,228 4,202 4,493 4,870 5,190
HOUSING TOTAL PROCEEDS 109,383 88,835 4,202 5,340 4,870 6,137
(2) OTHER
RDA Debt Proceeds 54,742 46,767 0 4,069 0 4,512
GF-backed LRB Proceeds 235,722 199,767 0 24,339 0 11,616
OTHER DEBT CAPACITY SUBTOTAL 290,464 245,928 0 28,408 0 16,128
Remaining for PAYGO 22,076 1,788 5,979 4,493 5,164 4,652
OTHER TOTAL PROCEEDS 372,540 247,717 5,979 32,900 5,164 20,780
Debt Assumptions Housing Other Bank Line GF Lease
Debt Debt of Credit Rev. Bonds
Interest Rate 7.50% 6.00% 4.70% -5.25%
Term (Years) 30 30 15 30
Target Min. Debt Service Coverage 125% 125% 125 % 110%
Max. Outstanding Principal n/a 95,000 75,000 n/a
ATTACHMENT D
Summary of Recommended Funding Allocations
RDA Eligible and'Recommended
CIP Projects Recommended
Allocation (millions). Total funding
Request (millions)
Affordable Housing 1o N/A
Civic Center Parks and Public Facilities
Planning and Design 2.5 2.5
Palisades Garden Walk 25 80
Civic Auditorium Adaptive Reuse and Renovation 25 197
Civic Auditorium District Projects 21 39
Early Childhood Education Center 3.4 3.4
Freeway Capping 2 165
Expo Green Streets and Pathways 20.9 31.9
Santa Monica High Schoolloint Use 46 235
Shared Parking 25 100
Downtown Parking Strategic Plan
Parking Design and Construction 1 219
Property Acquisition 27 N/A
mercial Corridor Enhancements
Lincoln Boulevard Enhancements ~ 9~ ~ 12~
Pico Boulevard Enhancements 9 9
Traffic Signal Master Plan
Phase IV 2.4 2.4
Phase V 3 3
Memorial Park Master Plan 1s z1
Infrastructure Improvements
Pier Infrastructure Improvements 11 11
Pico Neighborhood Branch Library 12.8 30
Beach Bike Path Widening 1 4
Citywide Tree Planting 0.3 0.75
Bike Transit Center 0.2 0.3
Exposition Light Rail Station Enhancements 10 29.7
Streetlight Retrofit/ Replacement 0.3 15
..,..$283