ITEM 6-C

City Council Meeting 9-29-92             Santa Monica, California

                          STAFF REPORT

TO:         Mayor and City Council

FROM:       City Attorney

SUBJECT:    Ordinance Pertaining to Approval of Leases
            Necessary for Bond Financings

      At its meeting on September  22,  1992,  the  City  Council
introduced  for first reading an ordinance pertaining to approval
of leases necessary for bond financings.  The  ordinance  is  now
presented to the City Council for adoption.

                         RECOMMENDATION

      It  is  respectfully  recommended  that  the   accompanying
ordinance be adopted.

PREPARED BY:  Joseph Lawrence, Acting City Attorney
              Linda A. Moxon, Deputy City Attorney


                      ORDINANCE NUMBER ____

                      (City Council Series)

             AN ORDINANCE OF THE CITY COUNCIL OF THE
           CITY OF SANTA MONICA, CALIFORNIA, APPROVING
                    CERTAIN LEASE AGREEMENTS

      WHEREAS, the Redevelopment Agency  of  the  City  of  Santa
Monica  (the  "Agency")  owns  a certain site (the "Redevelopment
Agency Site") within its Downtown Redevelopment Project which  it
currently leases to the City of Santa Monica (the "City") for use
as a public parking facility (the "Existing Lease"); and

      WHEREAS, the Agency  proposes  to  amend  and  restate  the
Existing  Lease, or, alternatively, to lease the Site to the City
for use as a public facility for a term not to  exceed  35  years
pursuant  to  a  new lease agreement (the "Redevelopment Lease");
and

      WHEREAS, the Parking Authority of the City of Santa  Monica
(the "Authority") owns certain sites located in the City of Santa
Monica (the "Parking Authority Sites") and proposes to lease  the
Parking  Authority  Sites  to  the City for use as public parking
facilities for a term not  to  exceed  35  years  pursuant  to  a
separate lease agreement (the "Parking Lease"); and

      WHEREAS, Article 9, Chapter 5, Part 1, Division 2, Title  5
(commencing with Section 54240) of the California Government Code
requires that prior to entering into  the  amended  and  restated
Existing  Lease  or the Redevelopment Lease and the Parking Lease
(collectively, the "Leases"), the City must approve  the  act  of
entering  into  a  formal lease agreement with the Agency and the
Authority, respectively, by ordinance which shall be  subject  to
the provisions for referendum applicable to the City,

      NOW, THEREFORE, THE CITY  COUNCIL  OF  THE  CITY  OF  SANTA
MONICA DOES ORDAIN AS FOLLOWS:

      SECTION 1.  This Council hereby approves  (1)  the  act  of
entering  into  a  formal lease agreement (including an amendment
and restatement of the Existing Lease) with the Agency,  provided
that  the  amount  of  annual  base  rent  payable  by  the  City
thereunder shall not  exceed  $1,194,100,  and  (2)  the  act  of
entering  into  a  formal  lease  agreement  with  the Authority,
provided that the amount of annual base  rental  payable  by  the
City thereunder shall not exceed $1,181,200.

      SECTION 2.  Any provision of  the  Santa  Monica  Municipal
Code  or  appendices  thereto inconsistent with the provisions of
this Ordinance, to the extent  of  such  inconsistencies  and  no
further, are hereby repealed or modified to that extent necessary
to affect the provisions of this Ordinance.

      SECTION 3.  If any section, subsection,  sentence,  clause,
or  phrase of this Ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of  any  competent
jurisdiction,  such decision shall not affect the validity of the
remaining portions of this Ordinance.  The  City  Council  hereby
declares  that  it would have passed this Ordinance, and each and
every  section,  subsection,  sentence,  clause,  or  phrase  not
declared  invalid  or  unconstitutional without regard to whether
any portion of  the  Ordinance  would  be  subsequently  declared
invalid or unconstitutional.

      SECTION 4.  The Mayor shall sign and the City  Clerk  shall
attest  to  the  passage of this Ordinance.  The City Clerk shall
cause the same to be published once  in  the  official  newspaper
within  15  days after its adoption.  This Ordinance shall become
effective after 30 days from its adoption.

APPROVED AS TO FORM:

__________________________________
ROBERT M. MYERS
City Attorney