City Council Report
City Council and Redevelopment Agency Meeting: November 17, 2009
Agenda Item: 8-A
To: Mayor and City Council
Chairperson and Redevelopment Agency
Subject: Redevelopment Agency’s FY 2009-2010 through FY 2013-2014 Five-Year Implementation Plan
Staff recommends that the City Council and Redevelopment Agency adopt the Redevelopment Agency’s FY 2009-2010 through FY 2013-2014 Five-Year Implementation Plan.
Redevelopment Law requires the Agency to prepare and adopt a Five-Year
Implementation Plan to delineate the goals, objectives, programs and estimated
expenditures for the Earthquake Recovery, Downtown,
The Agency’s existing Five-Year Implementation Plan, adopted on November 23, 2004, covers the period of FY 2004-2005 through FY 2008-2009. To comply with Redevelopment Law, the Agency must adopt an Implementation Plan for the next five years, FY 2009‑2010 through FY 2013-2014. Similar to the Implementation Plan for the last five years, the proposed Implementation Plan for the next five years summarizes the accomplishments of the last five years, outlines the specific goals and objectives and estimated expenditures for the next five years, and provides an explanation on how the goals, objectives, programs and proposed expenditures will improve the project areas. Based on the funding priorities determined at the May 12, 2009 and June 9, 2009 meetings, the new Implementation Plan contains the following programs and allocations:
q Earthquake Recovery Redevelopment Project
The Plan anticipates that over the next five-year period, projects and activities will be funded with available tax increment revenue and debt financing structures. In implementing this financing strategy, staff estimates that the Earthquake Recovery Redevelopment Project Area will generate approximately $283 million, net of statutory pass-through payments to other taxing entities, required set-asides for affordable housing, administrative expenses and debt service. The Earthquake Recovery Redevelopment Plan identifies five primary goals for the project area. The five goals and the programs and activities to support those goals include:
· Disaster Prevention and Mitigation: The Implementation Plan proposes to continue to fund disaster prevention and mitigation programs to meet the City’s seismic retrofit needs and mitigate against effects of future disasters. Funds will be used for rehabilitation of the Santa Monica Civic Auditorium implementation of the Traffic Signal Master Plan and property acquisition to support the reconstruction and expansion of parking resources called for in the Downtown Parking Strategic Plan. ($56.4 million)
· Commercial Revitalization: The Implementation Plan proposes to revitalize and promote economic investment and business expansion in the Project Area or of benefit to the Project Area, and preserve the area’s existing employment base by supporting improved access to the Project Area by employees and customers, primarily by supporting enhancements to the Exposition Light Rail Station Areas. ($10 million)
· Community Revitalization: The Implementation Plan proposes to improve, repair, rebuild and provide parks and community facilities including: the Palisades Garden Walk and Town Square parks; open space and facilities in the Civic Auditorium District; the Civic Center early childhood education center; the Pico Neighborhood Library; planning and design for the Civic Center parks and facilities, and the Memorial Park expansion. ($115.9 million)
· Affordable Housing: In addition to the project area’s anticipated 20 percent housing set-aside increment revenues, the Implementation Plan proposes to invest $43.6 million from the project area’s non-housing funds toward the preservation and production of affordable housing. ($43.6 million)
Institutional Revitalization: The
Implementation Plan proposes to help achieve community goals associated with
the Santa Monica-Malibu School District’s master plan for the
Over the next five years, the Implementation Plan proposes to allocate, in addition to the anticipated 20 percent housing set-aside increment revenues, all net available non-housing tax increment funds of $15.1 million toward the production and preservation of affordable housing, consistent with Council’s 1999 direction. ($15.1 million)
With non-housing tax increment revenues of $58.7 million allocated toward affordable housing, leverage of State-mandated housing set-aside funds, net line of credit proceeds, uncommitted fund balance through FY 2008-2009 and other miscellaneous redevelopment funds, the Agency will have combined housing resources from all project areas of approximately $160.9 million for its affordable housing program.
The Agency’s resources and future implementation of the programs will be affected by the scale and timing of its issuance of debt instruments or use of other financial mechanisms to fund capital improvements during the next five years. Particular constraints such as State “Take Aways” and opportunities not fully predictable at this time may arise in the course of undertaking the projects and activities described in the Implementation Plan. The specific projects and activities actually implemented may vary in their precise timing, location, cost, expenditure, scope and content from those set forth in the Plan. Therefore, the Implementation Plan is intended to serve as a flexible guide. If circumstances arise which result in an increase or reduction of Agency resources, adjustments can be made accordingly.
Housing Component and Ten-Year Affordable Housing Compliance Plan
Health and Safety Code Sections 33413(b)(4) and 33490(a)(2) and (3) of the California Redevelopment Law requires the Implementation Plan to include a Housing Component and a Ten-Year Housing Compliance section which provides information to:
· Summarize historical and projected housing production, the Agency’s affordable housing obligation and the Agency’s progress in meeting the obligation;
· Forecast the estimated number of dwelling units to be privately developed or substantially rehabilitated between fiscal years 2009-2010 through 2018-2019 and over the duration of the Redevelopment Plans;
· Forecast the estimated number of dwelling units to be constructed or substantially rehabilitated with Agency assistance between fiscal years 2009‑2010 through 2018-2019 and over the duration of the Redevelopment Plans;
· Project the availability of Agency revenue for funding affordable housing production; and
· Provide explanation of how the goals, objectives, projects and expenditures will implement the low- and moderate-income housing set-aside and housing production requirements.
Redevelopment law requires that inclusionary housing requirements be met every ten years. If the Agency has exceeded the requirements at the end of the ten-year period, the Agency may carry over the surplus units and count them toward the requirements of the following ten-year period. Given the ability of the Agency to carry forward surplus units from one ten-year period to the next, the number of affordable very-low income and low-income housing units already created in the project area, and the City and Agency’s continuing commitment to affordable housing, no difficulty is anticipated in meeting the inclusionary housing requirements for the project areas.
Staff will return to the Agency with a report at the midpoint of the FY 2009-2010 through FY 2013-2014 planning period, providing an update on the efforts and progress of the proposed activities and program expenditures in the Implementation Plan. If necessary, the Implementation Plan may be adjusted to address changing circumstances and/or new opportunities.
This item was publicly noticed for four weeks in the Santa Monica Daily Press newspaper (October 6, October 13, October 22 and October 27) and posted in four permanent locations within each project area, pursuant to Community Redevelopment Law, Section 33490 (d). In addition, notice was mailed to those persons and entities that requested notice.
Financial Impacts & Budget Actions
There are no immediate budgetary impacts associated with the adoption of the new Implementation Plan. The Implementation Plan simply sets forth the anticipated use of redevelopment funds; funding for specific projects will be appropriated as part of the City’s broader budgetary process.