Item 6-D

City Council: 7/8/97                         Santa Monica, CA

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation to Approve Resolution to Receive the
          City's Share of Earthquake Recovery Redevelopment
          Project Area Tax Increment Revenues

Introduction
This staff report recommends City Council approve a resolution to
ensure that the City receive its share of tax increment revenues
from the Earthquake Recovery Redevelopment Project.

Discussion
Since 1994 redevelopment law has required that each taxing entity
within the boundary of a newly adopted redevelopment project area
continue to receive a portion of property tax increment revenues. 
An exception is made for a city which only receives those
property tax increment revenues upon taking a formal action
electing to do so.  Should a city fail to take this formal
action, revenue from property tax increment that would otherwise
be allocated to a city is distributed to various other taxing
entities and not to either the local city or redevelopment
agency.

Tax increment revenues from the City's Earthquake Recovery
Redevelopment Project are subject to this portion of the
redevelopment law.  The attached resolution provides the
necessary basis for the City to receive its share of increased
property tax revenues resulting from this Project.  Staff will
ensure that the resolution is properly transmitted to the County,
which will result in the City collecting all due property tax
revenues.

Budget and Financial Impact
Adoption of this resolution will result in the City receiving
approximately 3% of all incremental property tax revenues from
the Earthquake Recovery Redevelopment Project area.  Not taking
this action would result in the distribution of these revenues to
non-local taxing entities.

Recommendation
Staff recommends that the City Council adopt the proposed
resolution and direct the City Manager to transmit the resolution
to the Los Angeles County Auditor-Controller's office.


Prepared by:   C. Michael Dennis, Director of Finance
               Keith Breskin, Redevelopment Manager