R-6928
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RESOLUTION NUMBER 6928 (CCS)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA DETERMINING CERTAIN PUBLIC
FACILITIES AND IMPROVEMENTS TO BE OF BENEFIT TO
THE OCEAN PARK REDEVELOPMENT PROJECT AREA AND
DETERMINING THAT NO OTHER REASONABLE MEANS OF
FINANCING SAID PUBLIC IMPROVEMENTS IS AVAILABLE
TO THE CITY AND CONSENTING TO THE PAYMENT BY
THE SANTA MONICA REDEVELOPMENT AGENCY OF THE COST
OF CONSTRUCTION AND INSTALLATION OF SUCH PUBLIC
IMPROVEMENTS
WHEREAS, the City desires the Santa Monica Redevelopment
Agency to use Agency funds, including proceeds from the sale
of tax allocation bonds for payment of the value and cost of
certain public improvements which will be of benefit to the
Ocean Park Redevelopment project Area; and
WHEREAS, California Health and safety Code Section 33445
requires the City Council to determine that the public
improvements,
whether inside or outside a redevelopment
project area, are of benefit to such redevelopment project
area or the immediate neighborhood in which the project is
located, and that no other reasonable means of financing said
public improvements is available to the community prior to
consenting to said payments being made by the Agency; and
WHEREAS, Health and Safety Code Sectlon 33679 requires
that prior to the commitment by the Agency to use tax
increment funds or bond proceeds for those public improvements
consisting of installation or construction of publicly owned
buildings (other than parking facilities), the City Council
hold a public hearing to consider the making of such payments
1
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by the Agency, the benefit of such improvements to the
redevelopment project area, and the availability to the
community of alternative means of financing such improvements;
WHEREAS, on October 23, 198~, the City Council and the
Agency held a duly noticed public hearing on the proposed
payments by the Agency;
WHEREAS, pursuant to a judgment entered in the Superior
Court of Los Angeles on August 12, 1983, Agency and City are
legally obligated to fulfill the terms of an Amended Sales
Agreement for Private Development ("Amended Sales Agreement")
pertaining to the completion of development of the Ocean Park
Redevelopment Project Area; and
WHEREAS,
certain public beach improvements and an
on-site park are among the legal obligations required to be
fulfilled by Clty and Agency pursuant to said Amended Sales
Agreement; and
WHEREAS, the issue of benefit to the Project Area, and
the alternative means of financing the improvements have been
considered in the Report entitled "Summary Report Pertaining
to the Proposed Payment by the Santa Monica Redevelopment
Agency for the Cost of Certain Public Beach Improvements for
the Benefit of the Ocean Park Redevelopment Project," attached
hereto as Exhibit "A" and incorporated herein by reference;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. It is hereby determined for the reasons set
forth in Part IlIA of Exhibit "A", that the Agency facilities,
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structures and other public improvements to be constructed and
installed by the Agency as described in Exhibit "A" hereto,
are of benefit to the Ocean Park Redevelopment Project Area.
SECTION 2. The City Council hereby determines for the
reasons set forth in Exhibit "A", Part IIIB, that no other
reasonable means of financing said public improvements is
available to the community.
SECTION 3.
The City Council hereby consents to and
approves
payment
of $4,743,600.00 by the Santa Monica
Redevelopment
Agency
for
the
value and cost of the
installation and construction of the public improvements
described in Exhibit "A" hereof.
SECTION 4. The City Clerk shall certify to the adoption
of this Resolution, and thenceforth and thereafter the same
shall be in full force and effect.
APPROVED AS TO FORM:
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ROBERT H. MYERS
City Attorney
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Adopted and approved thlS 23rd day of October, 1984.
Q~<JJ)
Mayor
I hereby certlfy that the foregoing Resolution No. 6928(CCS)
was duly adopted by the Clty Councll of the Clty of Santa Monica
at a meeting thereof held on October 23. 1984 by the following
Council vote:
Ayes: Councllmembers: Conn, Epsteln, Jennings, Press,
Reed, Zane and Mayor Edwards
Noes: Councilmembers: None
Abstaw: Councllmembers: None
Absent: Ceuncilmembers: None
ATTE:!lT:
LYh~
CitlJL Clerk
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ATTACHMENT TO RESOLUTION 394 (RAS) and
RESOLUTION 6928(CCS)
OCEAN PARK REDEVELOPMENT PROJECT
S~NTA MONICA. CALIFORNIA
SUMMARY REPORT PERT~INING TO THE PROPOSED PAYMENT'
BY THE SANTA MONICA REDEVELOPMENT AGENCY FOR THE COST
OF CERTAIN PUBLIC BEACH IMPROVEMENTS FOR THE
BENEFIT OF THE OCEAN PAR~ REDEVELOPMEN1 PROJECT
SANTA MONICA REDEVELOPMENT AGENCY
October 9, 1984
.
T^BLE Of CONTENTS
.
Pace
I. Introduction
II. Estimated Tax Increment Funds Proposed to
Be Used to Pay Costs of Ocean Park Beach
Improvements 2
III. Facts Supporting Findings 2
^. The Ocean Park Beach Improvements Are
of BenefIt to the Project Area 2
B. Financing ^lternatives: No Other
Reasonable Means of Financing the
Ocean Park Beach Improvements is
Available to the Community 3
IV.
The Redevelopment Purpose for which Tax
Increment Funds are Being Used to Pay
for the Ocean Park Beach Improvements
4
Exhlbit A - Site Hap
Exhlbit B
Excerpt of City Staff Report
Dated August 14, 1984
EX~lbit C - Construction Cost Estimates
(for Off-Site Public Improvements)
As Of August 20, 1984
Exhibit 0 - Construction Cost Estimates (for
Public On-Site Public
Improvements - Excerpt from
January 24, 1984 City Staff
Report)
!.
INTRODUCTION....
.
The Santa Monica Redevelopment Agency ("Agency") has
prepared this summary report pursuant to Section 33445 of the
CalIfornia Community Redevelopment Law (Health and Safety Code
Sections 33000 ~ sea.).
This summary report sets forth certain details of the
Ocean Park Revised Beach Plan (the "Plan") which pertains to
the development of certain public facilitles and improvements
for the benefit of the community as a whole, and Ocean Park
Redevelopment Project Area l(a) and 1(b) (hereinafter
collectively "Project Area"), In particular.
Pursuant to the Plan, the Agency will make arrangements
to design, construct and install public improvements which
include the following major components:
A. A new separated beachfront bikepath and pedestrian
promenade with a seatwall allowing rest and viewIng areAj
B. Expansion of an eXIsting park located at the foot of
Ocean Park Boulevard, and creation of an additional 1.5 acres
of park spacej
C. Addition of a new 3.5 acre linear park along Barnard
Way (extending from Crescent Bay Park to the South City
llmits)j
D. Improvements to Beach Parking Lots, including
redesign, repaving and improved vehicle and pedestrian acceSSj
E. Improvements to "xistIng pedestrlan ~ccess paths and
landscaping;
F. Redesign and construction of food concession, publ1C
restroom, shower and changing room facilities;
G. Addition of picnic areas, shade pavilions and a
childrens' play area.
H. Various street and traffic improvements for purposes
of increased traffic and pedestrIan safety, facilitation of
traffic flow and increased public access to beach areas.
The location of the proposed publIC Improv~ments is
shown on the SIte Map, Exhibit "A."
Attached hereto as Exhibit "B," and Incorporated herein
by reference, is the relevant portIon of the City Staff Report
of August 14, 1984 setting forth the speciflc details of the
Ocean Park Revised Beach Plan and proposed public improvements
to be designed, constructed and lnstalled USIng tax increment
funds or proceeds of tax lncrement bonds.
. In additio~o the public beach lmp)ltements described
above, the Agency will make arrangements to design, construct
and install an on-site public park. Said park shall occupy
5.89 acres inside the boundaries of the Redevelopment ProJect
Area and will contain six tennis courts, two paddle tennis
courts, one basketball court, a play area and pedestrian
paths.
II. ESTIMATED TAX INCREMENT FUNDS OR PROCEEDS OF BONDS TO B~
USED FOR PAYMENT OF CONSTRUCTION OF PUBLIC FACILITIES ANn
IMPROVEMENTS.
Attached hereto as Exhib{t "C," and made a part hereof,
are the August 20, 1984 Construction Cost Estlmates concernlng
the Ocean Park beach improvements which are outside of the
Project Area ("Off-Site" Improvements).
Additionally attached hereto as Exhiblt "D,. and made a
part hereof, are construction cost estimates for ~public
improvements which are inside the Project Area ("On-Site"
Improvements), consisting of a 5.89 acre on-site publiC park
which shall contain six tennis courts, two paddle tennis
courts, one basketball court, a play area and pedestrlan
paths.
Estimated interest costs are also Included. Such costs
pertain to interest arising on that portion of tax allocation
bond proceeds used for the described beach improvements.
II I. FINDINGS.
A. THE PUBLIC FACILITIES AND IMPROVEMENTS ARE o~
BENEFIT TO THE OCEAN PARK REDEVELOPMENT PROJECT AREA.
The proposed public facilities and improvements referred
to in Section II above and the attachments hereto will benefit
the Ocean Park Redevelopment Project Area in that they will:
(11
upgrading
areaSj
Aid in the elimination of blight by replacing or
deteriorated walkways, landscaping and recreational
(2) Attract
improvementsj
private
development
by
aesthetic
(3) Increase recreational opportunities for ~esidents
of the Project Areas;
(4) Fulfill Agency obligations to improve traffiC
clrcu1ation, beach access and pedestrian safety for the Ocean
Park Redevelopment Project Area;
(5) Fulfill Agency ob1igatlons to comply with Coastal
CommiSSion permlt approval requlrementsi
2
(6) To thitextent that such pUb1~lmp~ovements are
outside the P~oject a~eas, the lmp~ovements will provlde a
healthy and safe envi~onment WhlCh att~acts users ln a
positive way, and the presence of such use~s will provide a
bette~ economic climate and mo~e jobs for residents of the
Project A~ea.
(7) Pu~suant to a judgment ente~ed in the Superior
Cou~t of Los Angeles on August 12, 1983, the Redevelopment
Agency of the City of Santa Monica, the City Council of the
City of Santa Monica, and the City of Santa Monica a~e legally
bound to comply with the te~ms and COndltions of an Amended
Sales Agreement for Private De.velopment (the "Amended Sales
Agreement") between the City, the Agency and Pacific Dominion
Property Company for the completion of Phase II of the
development of Ocean Park Redevelopment Projects lea) and lIb)
(hereinafter "Redevelopment Project Area")., Said Amended
Sales Agreement set forth a choice of two permissible
development plans. The plan selected by the City and Agency
legally obligates City and Agency to develop an on-site~public
park and the public beach improvements described hereIn.
Accordingly, the payment of such public Improvements by the
Agency is of benefit to the Redevelopment Project Area since
it fulfills legal obligations arIsing out of the development
of such Redevelopment Project Area.
B. NO OTHER REASONABLE MEANS OF FINANCING THE PUBLIC
FACILITIES AND IMPROVEMENTS IS AVAILABLE TO THE COMMUNITY.
In CalIfornia, municipal or tax-exempt financing has
traditionally taken one of two basic forms: general
obligation bonds or revenue bonds. General obligatIon bonds
pledge ad valorem property taxes without limit as to rate or
amount; hence, they were highly regarded by investors and
commanded the lowest borrowing rate because of their minimal
credit risk. However, Article XIIIA of the California
constItution, adopted in 1978, prohibits issuance of such
general obligation bonds.
Revenue bonds are payable from a specific revenue source
other than property taxes. These bonds have been used
extenslvely for financing water, sewer, or other utility
systems, toll bridges and aIrports, where revenues of the
enterprlses are reasonably well assured. Issuance of
conventional revenue bonds generally requires ~ simply
majority vote. However, the proposed improvements WIll not
generate any revenue, so such financing is not feaslb1e.
of
the
the
from
The City's general revenues are another possible source
revenue for the proposed Improvements. However, following
passage of PropOSItIon 13, severe strains were placed on
Clty'S revenues because of the curtailment or withholding
clties by the State of Callfornla of revenues
3
traditionally su4ltented to local governme~. While some of
these sources have been returned to cities in the State's FY
1984-85 budget, there is no certainty that the reduction of
the subvention stream might not reoccur. The fact of
historically dlminished revenue, uncertainty of future
revenues, and the need to provide a suitable level of service,
dictates that if the City advances any of its general
operating reserve for the proposed improvements, a means of
recovering the cost be available from the Agency from tax
increment revenues.
Tax increment revenues or tax a1locatlon bonds proceeds
are the only viable method of financlng the proposed
improvements. Tax allocation bonds are payable from and
secured solely by tax revenues to be derived from the Project
Area and the use of such revenues is appropriate since the
Project Area will be benefitted. Tax increment revenues are
allocated annually to the Agency to the extent of Agency
indebtedness, and are paid from the portion of taxes in excess
of the assessed valuation of that property in the base ~ear of
the Project.
IV. THE REDEVELOPMENT PURPOSE FOR WHICH T~~ INCREMENT FUNDS
ARE BEING USED TO PAY FOR THE PUBLIC FACILITIES AND
IMPROVEMENTS.
The Redevelopment Plans l(a) and l(bl for the Ocean Park
Redevelopment Project contemplate that a number of public
improvements and facilities will ,be provided to turn the
Project Area from stagnant and underutilized land to
productive use and an asset to the City. Among the public
improvements and utilities to be provided in connection with
the redevelopment of the Site as provided for in the
Redevelopment Plans are traffic signals; street improvements;
and similar site preparation necessities.
Since the Redevelopment plan for project l(a) was
adopted in 1960 and the Redevelopment plan for Project l(b)
was adopted in 1961, the Agency has been in the process of
redeveloping the vicinity of the Site by planning and
developing necessary public improvements lsuch as streets and
related facilities) and utilities to remove the condition of
inadequate facilities which was impeding the development of
the area. The Agency now proposes to continue that
redevelopment effort by making the beachfront area a positive
asset to the Project Area. A beachfront bikeway, pedestrian
paths, landscaping, and additional park and recreational areas
are among the public improvements proposed to make the Project
Area and the surrounding community more attractive and viable.
The proposed beach improvements, which are in close
proximity to the Project Area, wlll encourage better use of
such beachfront area which has been stagnant and improperly
utllized in the past due to deteriorated conditions. The
4
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Agency seeks to further the purposes of redevelopment by
making the area more attractive to visitors and ProJect Area
resldents, thus expanding employment opportunities for jobless
and underemployed persons and to provide an environment for
social, economic and psychological growth and well-being.
It is anticipated that the improved beach facillties and
improvements will attract residents and visitors to the
Project Area, which will enhance the development of adjacent
portions of the Project Area.
5
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