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HomeMy Public PortalAboutA 1988-03-16 LLDC :� / � � LYNWOOD LOCAL DEVELOPMENT COMPANY BOARD OF DIRECTORS � �� ��� F , WEDNESDAY, MARCH 16� 1988 H ��'! 3:00 P.M. `i' i�� CITY COUNCIL CHAMBERS � � � � � � I LYNWOOD CITY HALL CITY Of LYNWOOD 11330 BULLIS ROAD CITY CLERKS OFFICE LYNWOOD, CALFIORNIA MAR 14 lggg nra pF� '7 A G E N D A Q / /� ' J Lt � � � ��//f � /LU' � � i i'!6 � ' ���� ���� WILLIAM KOLITZ � CHAIRMAN JIM MORTON BERNARD H. LAKE VICE-CHAIRMAN SECRETARY-TREASURER HARRY PRINS DR. BERNARD STEUBER I MEMBER MEMBER I I I OPENING CEREMONIES: � � A. CALL TO ORDER B. FLAG SALUTE C. ROLL CALL I D. CERTIFICATION OF AGENDA POSTING E. APPROVAL OF MINUTES: FEBRUARY 17� 1988 F. ITEMS FOR CONSIDERATION i I 1. Warrant Register � ' It is recommended that the Board approve the attached Warrant Register. 2. LLDC Membership Survey Re ort I At the"January 13th meeting of the LLDC Board, approval was qiven to distribute a survey letter to LLDC members in I order to update our current membership roster. ( Since the deadline for returning the survey was February i 17, 1988, (the date of our last meeting), staff was unable to report the surveys results. ( Staff is submitting an updated LLDC membership roster and I report for the Boards review. � I I � I _ � � LLDC Agenda Page #2 Recommendation It is recommended that the Board review the updated list and decide whether to proceed with elections. • 3. Ornamental Plaster Status Report At the direction of the Board, staff authorized Security Pacific National Bank to re-write Mr. Smith's loan in the amount of $6,249.00. The LLDC returned $3,751.00 to the Bank. This amount represents the remaining balance in the loan account. Authorization letter is attached for Board review. G. ITEMS FOR DISCUSSION I 1. Staff interviewed two advertising/graphic design firms in � relation to developing a marketing brochure for the LLDC. � The Graphic Fact, a Lynwood based firm was selected by I staff based on their presentation and hourly rate quotation. Staff has requested that a Representative of i the company attend today's meeting to answer any questions. 2. Presentation On Appropriate LLDC Activities Many questions have arisen regarding policy and the use of I public funds to support program activities. Mr. Arthur Waller, Lynwood's Housing and Community Development i Coordinator, will speak on this matter and attempt to answer questions Board members may have. 3. R�ort By Economic Development Corporation of Los Angeles i County David Rosenblatt, EDC Business Consultant, will provide an I update on EDC activities under this management assistance � program. � i Attached is a report on the financial status and � activities of the LLDC. i H. STAFF REPORTS I I I. BOARD ORALS I J. ADJOURNMENT I i I � I � I I I I ., � i � LYNWOOD LOCAL DEVELOPMENT COMPANY MINUTES February 17, 1988 LLDC Board Members Present: Chairman William Kolitz Bernard H: Lake Jim Morton Dr. Bernard Steuber LLDC Board Members Absent: Harry Prins City Staff Present: Francisco Jimenez, Economic Development Specialist City Staff Absent: Arthur N. Waller, HCDA Coordinator Guests: David Rosenblatt Business Consultant (Economic Development Corporation) Mr. Leighton Hull (MCDonald's Lynwood) A. Opening Ceremonies The Special Meeting of the Board of Directors was called to order at 3:00 p.m. by Chairman William Kolitz. E. Approval of Minutes - January 13, 1988 The Minutes were approved with the stipulation to correct the discrepancy in the amount left of Mr. Smith's (Ornamental Pl.aster) loan--page 3 of the Minutes. F. Public Orals - Mr. Leighton Hull, owner of McDOnald's (Lynwood) introduced himself stating that he was interested in what� LLDC does because he is considering focusing more time, attention and dollars in this area. G. Items for Consideration 1. Warrant Reqister (copy attached) Mr. Jimenez asked for approval from the Boatd to pay I three warrants: 1) Medical Management Support Services for secretarial support in the amount of 550; 2) � Celestial Studios for photographic services for the City Council meeting in the amount of 5175.73; 3) Economic Development Corporation in the amount of'54;000. Some ' discussion ensued relative to the bill from EDC for hours of services delivered to the City of Lynwood and consulting for small businesses. The bill was submitted for 80 hours of marketing, consulting, developing financial models, and consulting that has already been done. It was Moved, Seconded and Carried to approve the three warrants or payment. 2. LLDC Membership Survey I Chairman Kolitz noted that the deadline for the I membership survey was today, February 17. Mr. Jimenez � stated that the staff mailed out approximately 35 i questionnaires to members listed on the LLDC roster and I approximately 1/3 of them were returned 60/40 in favor � of retaining membership. This item will be tabled until i the next meeting. At the next meeting Mr. Jimenez will give a full report. I i 3. LLDC Public Information Proqram i Mr. Jimenez said that Mr. Waller and he had been putting together a program to inform the community about the I purposes of LLDC and how LLDC can assist small businesses in the community. Press releases were issued � i � . � � LLDC Agenda Page #2 ' Recommendation It is recommended that the Board review the updated list and decide whether to proceed with elections. 3. Ornamental Plaster Status Report � At the direction of the Board, staff authorized Security Pacific National"Bank to re-write Mr. Smith's loan in the ` amount of $6,249.00. The LLDC returned.$3,751.00 to the, ' Bank. This amount represents the remaining balance in the ` loan account. Authorization letter is attached for Board review.. G. ITEMS FOR DISCUSSION 1. Staff interviewed two advertising/graphic design firms in relation to developing a marketing brochure for the LLDC. •. The Graphic Fact, a Lynwood based firm was selected by staff based on their presentation and hourly rate quotation. Staff has requested that a Representative of ' the company attend today's meeting to answer any , questions. 2. Presentation On Appropriate LDDC Activities Many questions have arisen regarding policy and the use of public funds to support program activities. Mr. Arthur ", Waller, Lynwood's Housing and Community Development Coordinator, will speak on this matter and attempt to • answer questions Board members may have. 3. Report By Economic Development Corporation of Los Angeles C o— � David Rosenblatt, EDC Business Consultant, will provide an update on EDC activities under this management assistance program. Attached is a report on the financial status and activities of the LLDC. H. STAFF REPORTS I. BOARD ORALS' J. ADJOURNMENT � � LLDC Minutes of February 17, 1988 Page 2 to the local press focusing on the management consulting program and highlighting the City's funding of the LLDC. 4. Status Report - Ornamental Plaster Mr. Jimenez stated that he had made several efforts to ° contact Mr. Smith of Ornamental Plaster but had been unsuccessful in his attempts. He therefore discussed the situation regarding the loan with the bank officer i and advised the bank of LLDC's interest in rewriting the loan. The bank requires' that LLDC pay the existing I balance on the loan (those funds not expended); then the I balance which had already been expended, could be rewritten. Mr. Jimenez said that the account at the I bank was especially set up for LLDC and Mr. Smith to withdraw the funds jointly. Rewriting of the loan would mean revising the term and reducing Mr. Smith's payments. It was reported that his doctors have advised � him to disassociate himself from the business at this time. The figure in the January minutes should be ', 52690, not 83790. It was Moved, Seconded and Carried to send the letter to the Loan Officer at the bank authorizing them to refinance the loan and extend the payment terms with the corrected figures. The Board is requesting Mr. Smith's attendance at the next meeting. 5. LLDC Marketing Brochure I Mr. Jimenez reported that staff has interviewed two advertising/graphic design firms for d.evelopment of a brochure. As it stands now, more information needs to be supplied to the firms in order to develop the design I of the brochure and cost proposals. Chairman Kolitz said that, since time is of the essence, approval of the expenditures for the brochure can be obtained from the Board members by phone, so that the brochure could perhaps be ready by the next Board meeting. 6. Report by Economic Development Cor oration of Los Angeles County David Rosenblatt, EDC Business Consultant, provided an I updated report stating that his consultant is still waiting for Mr. Bradley of Celestial Studios to provide � him with some additional information for the portfolio so that meetings can be scheduled with prospective -" clients. At this point he does not know what the delay I might be except that Mr. Bradley may be very busy; and � Mr. Rosenblatt assured the Board that Mr. Bradley is still interested. i Regarding Commuter Bus Lines, Mr. Jimenez has a contract I ready for Mr. Carson's approval and signature. The contract 40 hours of service to develop a marketing plan for recapturing existing services, looking at new prospects for the future, and determining the best I approach to get these businesses to consider employing Communter Bus Lines. There was discussion relative to f who can use the services of the LLDC and exactly what + services should be provided. The question was raised, � I . I t � • LLDC Minutes of February 17, 1988 Paqe 3 . is LLDC empowered to use City funding for feasibility studies even though such efforts will not develop into a loan application? Mr..Jimenez will consult with LLDC's attorney for a ruling or some type of clarification and report back to the Board. Mr. Rosenblatt reported that EDC's program in conjunction with LLDC is to provide technical assiStance to local businesses and actually evaluate businesses for the purpose of possibly financing through the City or through other means such as the Small Business Administration. There are a number of different loan programs available in the State of California. EDC's purpose is to help these businesses expand their revenue base revenue at such a level so they can offer more comprehensive services to the City of Lynwood and perhaps even surrounding areas. Mr. Rosenblatt stated that the actual budgeted figure for technical assistance is 525,000. There are no restrictions as to the type of setvices a business can receive. The dollars are for a specific targeted'areas. Lyngate Liquor - Mr. Rosenblatt said the consultant is examining the product line to determine if Mr. Che is carrying the most popular brands of inerchandise as , opposed to what is available at other businesses in the area. The consultant will review Mr. Che's operating and supply costs to see if he is paying what other ; companies are paying for the-same line of supplies,. : There is a proposal and engaging contract ready for Mid City Stationers. The consultant will be meeting with them shortly. Mr. Rosenblatt's understanding is that, Mid City Stationers will require approximately 30-40 hours for marketing and advertising and other areas of concern to the owner, Mr. Bachelor, such as personnel, and looking into providing training to local employees. • Mr.:. Rosenblatt stated that in order to determine how many hours EDC should provide to a particular business is based on what the consultant proposes to EDC after he meets with the business in particular. The time span for all this could be as little as 45 days and as much as 120 days. LLDC monies are blocked out for economic development only. CRTV, a computer and TV repair business, located.on the Long Beach Boulevard corridor wants a more cogent financial statements. They need software for their personal "' computer that would provide them with accurate financial statements, and to provide inventory control. . Chairman Kolitz asked if Mr. Rosenblatt's company was indeed acting as a goodwill ambassador to assist LLDC in seeking out businesses who need financial assistance. Mr. Rosenblatt said he feels that what EDC is doing at � ` this time, with he and Mr. Jimenez going out on joint walking ventures to see busine5s owners in the area, � will increase LLDC's visibility in the targeted area for • apprising owners of businesses that funds are available to assist them in getting their businesses together. � � �LgC Minu�e�s 4�88 e ruary ,• , . Page 4 . ITEMS FOR DISCUSSION ' 2. Financial Report The Financial Statement that Chairman Kolitz requested at the last meeting, along with a Balance Sheet and bank statements, developed by Mr. Jimenez, is available in the Board packet today. In going over the Financial Statement, Mr. Jimenez was reminded to correct the figure relating to Mr. Smith's bank loan (Ornamental Plaster and Molding). I. BOARD ORALS Mr: Lake said he had been approached by a prospective applicant who has all his receipts for work done previously, and wants to know if can apply for a retroactive loan. Chairman Kolitz said he had no - objection to it provided there are no legal problems involved. He,told Mr. Jimenez to seek counsel from • the, attorney on this as well as what is determined as improvement, i.e. stock, inventory, fixtures, etc. Mr. Jimenez asked that Mr. Lake contact him for the details of securing this loan. Mr. Lake was also ' approached by Mr. Paul Solenki of the Curve Motel who � is also interested in securing a loan. Mr. Jimenez will contact him. Also, there is a motel/hotel association within the Chamber" who is interested in having Mr. Jimenez as a guest speaker on March 16 to. give them an update on LLDC's activities. Mr. Jimenez expressed an intexest in bringing in an intern who could assist the staff at.no cost to LLDC; . a young woman has received a grant from SCAG and HUD to � do some intern work with an agency, perhaps LLDC and the Chamber. Chairman Kolitz said there would be no objection. , This individual would focus on developing,a funding proposal to increase LLDC'sfinancial base. The internship would be for approximately six months. Mr. Jimenez presented to the Board information xelative to when a redevelopment agency sets up a specific program area a business.allocation tax can be generated, and , these taxes in turn can be directed toward specific ' nonprofit development groups such as the LLDC. These funds can be raised ovex the life of the term of . the program and create a consistent funding base for a number of years for the activities of the LLDC. He will research this further and provide more information to the Board. J. ADJOURNMENT The LLDC meeting adjourned at 4:20 p.m. Motion carried by unanimous vote. The next meeting will be March 16, 1988 at 3:00 P.M. ' Respectfully submitted, Bernard H. Lake, Secretary-Treasurer Date T: 2/19/88/ab/MMSS � .