R-7892
~
e
e
EXHIBIT E
RESOLUTION NUMBER 7892
cees)
A RESOLUTION OF THE CITY COUNCIL OP THE CITY OF SANTA MONICA
DETERMINING CERTAIN PUBLIC IMPROVEMENTS TO BE OF BENEFIT
TO THE DOWNTOWN REDEVELOPMENT PROJECT AREA AND
DETERMINING THAT NO OTHER REASONABLE MEANS OF FINANCING
SAID PUBLIC IMPROVEMENTS IS AVAILABLE TO THE
CITY OF SANTA MONICA AND CONSENTING TO THE PAYMENT BY THE SANTA
MONICA REDEVELOPMENT AGENCY OF THE COST OF
CONSTRUCTION OF SUCH PUBLIC IMPROVEMENTS
WHEREAS,
California Health and safety Code section 33445
requires that the City council consent to said payments and
determine that said public improvements are of benefit to the
Downtown Redevelopment Project Area or the immediate neighborhood
in which the Project Area is located prior to the Agency making
said payments, and that no other reasonable means of financing
said public improvements are available to the community; and
WHEREAS, in November, 1975, the Redevelopment Agency of the
City of Santa Monica filed an application for approval of a
coastal permit for the construction of the Downtown Redevelopment
Project, and
WHEREAS,
on June 16, 1976, the California Coastal Zone
Conservation Commission granted with conditions the application
filed by the Redevelopment Agency for the construction of the
Downtown Redevelopment Project, and
WHEREAS, as conditions for approval of the coastal permit the
Coastal Commission required that a westbound off-r~rnp from the
Santa Monica Freeway to Fourth and Fifth streets be completed
- 1 -
e
e
prior to occupancy of the project and that the Redevelopment
Agency agree to this condition of approval; and
WHEREAS, on June 14, 1976, the Redevelopment Agency agreed
to the conditions for approval of the Coastal Permit, and
WHEREAS, on May 13, 1977, the Redevelopment Agency executed
an agreement with Santa Monica Place Associates regarding
compliance with Coastal Development permit A-69-76 whereby the
Redevelopment Agency agreed to be responsible for and to cause
the completion of the Fifth street off-ramp, and
WHEREAS,
on June 15 ,
1978, the Redevelopment Agency
incorporated the May 13, 1977 compliance agreement into an
implementation agreement with Santa Monica Place Associates that
clarified the obligations and responsibilities of the parties as
contained in the original Disposition and Development Agreement
between the two parties, and
WHEREAS, the issue of benefit to the Downtown Project Area,
and the alternative means of financing the improvements have been
considered in the Report entitled ftsummary Report Pertaining to
the Proposed Payment by the Santa Monica Redevelopment Agency for
the Cost of certain Public Improvements for the Benefit of the
Downtown Redevelopment Project", attached hereto as Attachment
ftA", and incorporated herein by reference:
NOW, THBREFORE, 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 IIIA of Attachment "A", that the public improvements as
- 2 -
e
e
described in Attachment II A" hereto, are of benefit to the
Downtown Redevelopment Project Area.
SECTION 2. The City council hereby determines that, for the
reasons set forth in Part IIIB of Attachment nAil, 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 $233,771 from the Agency to the state Department of
Transportation for the cost of construction of the public
improvements set forth in Attachment "A" hereto.
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:
~~~
By:
City Attorney
Adopted and approved this 12th day of september 1989.
1) ~ M2~
I hereby certify that the foregoing Resolution No. 7892 (ees)
was duly adopted by the City Council of the city of santa Monica
- 3 -
e
e
at a meeting thereof held on September 12, 1989 by the following
Agency vote:
Ayes: Councilmembers: Abdo, Genser, Jennings, Reed, Mayor Zane
Noes: Councilmembers: None
Abstain: councilmembers: None
Absent: Councilmembers: F~nkel, Katz
...... - ~ ~ ~""-to
~ .
"
ATTEST:
~... '" - ...
~-',,",:.-
-.... -- -~
---......~...-
---
-../"
--
dtccbene
.'-
'- -
......
- 4 -
e
e
ATTACHMENT A
DOWNTOWN REDEVELOPMENT PROJECT
SANTA MONICA, CALIFORNIA
SUMMARY REPORT PERTAINING TO THE PROPOSED PAYMENT
BY THE SANTA MONICA REDEVELOPMENT AGENCY FOR
THE COST OF CERTAIN PUBLIC IMPROVEMENTS
FOR THE BENEFIT OF
THE DOWNTOWN REDEVELOPMENT PROJECT
SANTA MONICA REDEVELOPMENT AGENCY
AUGUST 14, 1989
- 1 -
e
e
TABLE OF CONTENTS
I.
Introduction
Page
3
II.
Estimated Tax Increment Funds Proposed
to be Used to pay costs of construction
of the Fifth-Street Off-Ramp
III. Facts supporting Findings
3
A.
The Fifth street Off-Ramp is of Benefit
to the Downtown Redevelopment Project
Area
3
B.
Financing Alternatives: No other Reason-
able Means of Financing the Construction
of the Fifth street Off-Ramp are Available
to the Community
4
IV. The Redevelopment Purpose for which Tax Increment 4
Funds are Being Used to Pay for the Construction
of the Fifth street Off-Ramp
Exhibit 1 - Site Map
Exhibit 2 - Construction Costs
- 2 -
e
e
I. 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 et seg. ).
This summary report sets forth certain details of the Fifth
street Off-Ramp which pertains to the development of certain
circulation improvements for the benefit of the community as a
whole, and the Downtown Redevelopment Project (hereinafter
"Project"), in particular.
Attached to this summary report as Exhibit 1 is a Site Plan
showing the location of the Fifth Street Off-Ramp.
II. ESTIMATED TAX INCREMENT FUNDS TO BE USED FOR PAYMENT OF
CONSTRUCTION OF THE PUBLIC IMPROVEMENT.
Attached hereto as Exhibit 2, are the final construction costs
(potential use of tax increment funds) for the Fifth street
Off-Ramp.
The Agency will pay for the final actual as-built costs incurred
by the City for the Off-Ramp.
III. FINDINGS
A. The construction of this Fifth street Off-Ramp is of
Benefit to the Downtown Redevelopment Project Area. The
Fifth street Off-Ramp referred to in section II above
and the attachments hereto will benefit the Downtown
Redevelopment Project Area in that it:
Attracts private development by improving public
access to the Project Area.
Fulfills Agency obligations to improve traffic
circulation and safety for the Downtown Redevelopment
Project Area.
To the extent that such public improvements are
outside the Project area, the improvement provides a
healthy and safe environment which attracts users in
a positive way, and the presence of such users will
provide a better economic climate and more jobs for
residents of the Project Area.
Fulfills the condition of approval of the Coastal
Permit for the Downtown Redevelopment proj ect that
the ramp be completed prior to occupancy of the
project.
- 3 -
e
e
B. No other Reasonable Means of Financing the Construction
of the Fifth STreet Off-Ramp 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 amount1 hence,
they were highly regarded by investors and commanded the lowest
borrowing rate because of their minimal cred! t 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 extensively for
financing water, sewer, or other utility systems 1 toll
bridges 1 and airports, where revenues of the enterprises are
reasonably well assured. However, the proposed improvements will
not generate any revenue, so such financing is not feasible.
The city's general revenues are another possible source of
revenue for the proposed improvements. However, following the
passage of Proposition 13, severe constraints were places on the
Ci ty r s revenues because of the curtailment or withholding from
cities by the State of California of revenues traditionally
subvented to local government. The fact of historically
diminished 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
are the only viable method of financing the proposed
improvements. 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 project.
IV. THE REDEVELOPMENT PURPOSE FOR WHICH TAX INCREMENT FUNDS ARE
BEING USED TO PAY FOR THE PUBLIC IMPROVEMENTS.
The Redevelopment Plan for the Downtown Redevelopment Project
contemplated that a number of public and private improvements
will be provided to turn the proj ect 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 Plan is the provision of site preparation
necessities.
Since the Redevelopment Plan for the Project was adopted in 1976,
the Agency has redeveloped the vicinity of the site by planning
and developing necessary pUblic improvements and utilities to
improve the condition of inadequate facilities which were
impeding on the development of the area. The agency now proposes
to continue that redevelopment effort by financing the city's
share of the cost to construct the Fifth street Off-Ramp.
- 4 -
e
e
The Off-Ramp encourages better use of the shopping center by
Project Area residents and persons residing, visiting or employed
in the immediate neighborhood in which the proj ect is located.
The Agency seeks to recognize the purposes of redevelopment by
making the area more accessible to visitors and residents, thus
expanding employment opportunities for jobless and underemployed
persons.
It is anticipated that the Off-Ramp has attracted residents and
visitors to the Project Area, which enhances the development of
adjacent portions of the Project Area and therefore provides
direct benefit to the Downtown Redevelopment Project.
(dtbenrpt)
- 5 -