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R-6928 . . 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 . . -:... -kl Jfl'- ~-J~:r .:t~ :.-::; '9','1 \1,1/'1-";: :~':'jHS'T,"i_ "-,:,,." ;l'>lF"' -,f' r11.:i~.:l8 :1 ' -.,-,p..,~' --r'tP-': TV~" 231fI,-'_J (H1~ "3~P T "' ,.;-, i::.~q,-,.,j,-:iLl3i1 .qA, VI,4"';:'C 'H oj,_ ,;~A:;" 3aA,' .0 q,,~' )11 :'A"'1 - "1":"1:'>:3 :iJ8A~j';..I~, ::1 =-iV:~":: I~qfo{r ~JHllq ~~4:. ~:V_ ~1~;" Y8 '-'-y:~-:!M'{J~ j .it' 1 ~ q.,.:r H ...., (itiA /Tl ::'..(T T-j(\ t 3d"! {--I j~ 'l-1::''''Q_,_;3v.3(-;""iH -L'lllIllf'r! 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V':' ~L' i 11 "f' - . ~fr;..) 9n " . -., tt-,- 1 I ~(f H (", 11 ,0 ':.J t.~jj ~t ,-'3m' 1'.01"'" V : J' l' , H: (If:. t... ~" J 'b r J. 1."1~, Hf,d 1 1'_ r J _ PI j .'- ~ 1 . ~ -\"E--: , . .' c..::lI.1 . . 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, 2 . . 'U_'J"" ,-' j ::.:oj ,f I IE;,', - , . .. 1 F I " ~ r~" ""'J -n'_'ifV..', l' 'f ~r . 11 JJ IT" no , i) 'i ':... ~+' .- 1 "".' -t 2A! ~.~_ -..:q'::-.lg "l'-_~ 1'_ L ~ 1 .:; ':. ' I ,f " ..... ~ ( 'l . \" -'1;'-< A J-t ",j" .'.:';"'J 1.:"'-,')2 ':11' j r 3-J.... '",.'3 '(f-mnb'r G .. J 1RIiU:- I:"~ . 2A"i-!:::t-\l! . I ) f'f~ ~ V"'){~ '1r-..l. ",,' . ~ "':4flUA ? _ _.~tJf1'9f1' ' :r_ 3'11 i~, ~ 1 r J 1 1 ;;, -1} r (. i 1 '-j (' I -JTI"l'5-1f..--A + ( ~t =>ffiA I " i '=' J 6 "':' -,':1 :( I! J j Grf~ < . 1 ni!. ~ q..y' b'=-' . it :1mq 9-V~t j ~ =l- fI ';"11 j -OJ' 1 "1. IE. - ": -:'l A 1 '-=' ....~l 'li':"';1l0 ,1 ~'-/"'-'f'<, = T.i"'~:r~ t *!ir. '; Eo T 1-" . '.::l :i~.:1H"" - t :...~1 [)'l' ';(:':;1 -n',l...r-!,. _4J1 r.; 10m;::: ~ 1 is 'i ~ "- ., . 'fe' b -. o--''::lt 119i';.a. t't I i: 1 ~'f, brIb ". i_ vr< 111_ . f'.lJ6 ..; t1 "'?-"]' ,}I. bjf.., I I j; . r 4 "::t" " , 1 -:-- . ~:: ~ A:i ~3 -i', 9Vf'l -4q ;1'_,'" r ",," ,'I -i .30J1~ i r 6"! 1~'1 l' -~i -I '"' i fr.c{'L - l'.J<J,::-8: _ 1~ ~;! r- . - '1'1 _'''''-<:ur;Gl ~ _,c-L 'I ' -;vnY6' i:'~!'~ ")'" . -r ~n'" . ) ~ 1"-'":.~r'1~'..-S 1'tm1 _ '" sd [ , - ~ '1 ~li) D..) _1' ~ 1-'41 _ IJ<;tJ'lq _'_ -1 . 'f:! nSS":l'; <:tj,-' +") . r 1" 4r~ ~ l~ ~ '-:'-1 'lO -, 1'3,1 t,-=-. l-:l":! ji 'f-l t"i6 d I ,j .i ~ ':1"-91":10 ~2 "i'-j .. "4"",[ ~ ---, ~~ " r :.iHT -1" ~r i -, _" "","I 11/' f' ~v._ ."_,>1 -.'1"1'131' .c3n,; " IlL.., ...."'1 <-;. ,- ~ b"'f< ,r ,. , !~.l :i !Il('! "1, ~~....A - -: J t: t\! . I - ~ I ri! L' . . 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: ~t~v,,'- ." i{0....- ROBERT H. MYERS City Attorney 3 . . ., '-' ,-' 0""::' . vd. '- , J" ' .", r 1 '::' f JJ ?oll;:'-- 1 "~'''''': _..~! i' "'. '::' r) -ti" . 1 1" ...., J ~ .", f 1 J ~ C I ~.. 1 I fr' l: ~ -t '9. I '/.:'l! ~ " "i. 'I r _'3" .-, ~ 1 I I .., 1 r ::; "1 ~ I rtX-=l j1' j~ -t 1 ~d ? f-"7 ':.trnqv'""')lTi! j , ; ~ J i _ i ~ I ~_ r _ ~ i"'l i3 ': )f- I' 11 LJfnt', ,. , '9'- 1 ,,1" ~:.i. 1 f I [lr- C"'" :!(''9: '1r-: ',' --: s- 1 ",,-.,; __ 91ft! . t IF... 11: I;J fJ', E~ ':'1. 11, I; ~!.. ': r;;; I,l _~" 9my~' r. \, 1 "'~1 r ....-i+ :1:: )_ bJI.: ~u f.,\' 'So 1 J '{-1('f9L.'a,. -tn~f'1J'_ <4 --.f'3P' ::flTI~\ ~. 1 r .. i ; q~r-1 t,_, j ') J:: . i,"':J "'0 . . b ;.E"1 - ;) f t[J~ t':" ~ j' 'f .i~F2 -j [ 1 l~';:oL t ,Ij C. T 'It , . 1 l ., i. , O:-il l> V" I r '3f .. . 'il.J " , t, " ,,, t-'Jc 311 ' f~ '1,-, , "'01 ""H " ! rL1 . _': ts r (1-; ; J _:- 1 l 9'_1 L.., -.A ~,)-;r i, ~ 'I ' q'iql\ '::;r.:H. \A. Iy :-M.1HrJR 'J J 111 "~ -I- ~ . . 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 . . 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 . . 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 ~ t:.:J ... '-1 H r- ~, 11~~\' If' , I I ~ I . , . I . I I I . I i : , I I I I .: , : I ! : i : . I : : . I U I I I I I I ! I , I : I , I I : I I I ! i : il ! "'.. :n : z~ ; I : ! I " I : I ; , i I J I . I I I I I I ---1.. -- C0 (J C\J ~ ~ s .. ~ ! . ::\ . l. ~ o 11 " .