Los Angeles Municipal Code Ch. 172 Economic Development Trust Fund

(a) There is hereby created and established in the Treasury of the City of Los Angeles a special fund to be known as the “Economic Development Trust Fund” hereinafter referred to in this Chapter as the “Fund”.

(b) The purpose of the Fund shall be for the receipt, retention and disbursement of 50 percent of all monies received by the City from the sale or lease of City owned property which has been designated by the Council for economic development opportunities under the Asset Management Framework Policy as approved by the Council, or any other monies which are otherwise appropriated to the Fund for economic development projects within the City.

(c) The City Treasurer shall establish a separate account within the Fund for each economic development project approved by the Mayor and City Council for which an initial or continuing source of economic development monies have been approved (Approved Project).

(d) The Fund, and each separate account within the Fund, shall be administered by the General Manager of the Economic and Workforce Development Department, or the General Manager’s appointee (the Administrator).

(e) Expenditures from the Fund, and each separate account within the Fund, shall be made in accordance with the terms and conditions of the Approved Project and the expenditure guidelines to be prepared by the Administrator.

(f) The Administrator shall comply with applicable provisions of California Government Code Section 53083 for any expenditure which constitutes an Economic Development Subsidy within the meaning of California Government Code Section 53083(g)(1), as such may be amended.

(g) The Administrator shall report on a not less than annual basis to the City Council and Mayor, or their designees, the amount of economic development incentives anticipated to be attained or otherwise owing for each Project for the upcoming fiscal year, as well as the maximum anticipated balance of incentives for each Project over the term of the Agreement.

(h) All interest and earnings attributable to the monies in the Fund or any of the accounts in the Fund shall be credited to the Fund or to the appropriate account and shall be devoted for economic development within the City. The Administrator shall transfer such interest and earnings to the individual account to which the interest and earnings are attributable.

(i) At the close of each fiscal year, monies not expended from the Fund, or an individual account, shall remain in the individual account within the Fund and shall not revert to the Reserve Fund.

SECTION HISTORY

Chapter and Section Added by Ord. No. 185,956, Eff. 3-6-19.

CHAPTER 173

GRAND AVENUE HOTEL PROJECT TRUST FUND

Section

(a) There is hereby created and established in the Treasury of the City of Los Angeles a special fund to be known as the Grand Avenue Hotel Project Trust Fund (the Fund).

(b) The purpose of the Fund shall be for the receipt, retention and disbursement of all monies apportioned by the Mayor and City Council as hotel development incentive payments (the Incentive Payments) for the development of the Grand Avenue Hotel Project in accordance with the Hotel Development Incentive Agreement (the HDIA) entered into by and between the City and Core/Related Grand Ave Owner, LLC as approved by the City Council on December 14, 2016, under Council File No. 13-1694-S1.

(c) The Fund shall be administered by the City Administrative Officer (the Fund Administrator).

(d) Monies shall be deposited into the Fund in accordance with the City’s budgetary process on a not less than yearly basis in an amount sufficient to pay anticipated Incentive Payments and related expenses as reported by the Fund Administrator.

(e) Expenditures from the Fund shall be made by the Fund Administrator to fund Incentive Payments due under the HDIA in accordance with the terms and conditions of the HDIA and reasonable expenses associated therewith.

(f) The Economic and Workforce Development Department shall maintain records, issue reports, schedule public hearings and perform any other activity required under California Government Code Section 53083.

(g) All interest and earnings attributable to the monies in the Fund or any account in the Fund shall be credited to the Fund and shall be devoted to the purpose of the Fund.

(h) At the close of each fiscal year, monies not expended from the Fund shall remain in the Fund and shall not revert to the Reserve Fund in accordance with Charter Section 344.

(i) The provisions of this ordinance shall be repealed, and this Chapter shall be of no force and effect, upon the earliest of: (i) the expiration of the term of the HDIA; (ii) full payment of the Incentive Payments; (iii) the termination of the HDIA; or (iv) the termination of the City’s obligations to utilize the Fund as the source of the Incentive Payments, as reported by the Fund Administrator.

SECTION HISTORY

Chapter and Section Added by Ord. No. 184,898, Eff. 6-10-17.