HomeMy Public PortalAboutA1993-04-17LRAn LYNWOOD REDEVELOPMENT AGENCY
11330 BULLIS ROAD LYNWOOD, CALIFORNIA 90262 (213) 6030220
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Robert Henning CHAIRMAN
Paul Richards, VICE CHAIRMAN
Louis J. Heine, MEMBER
Armando Rea, MEMBER
Evelyn Wells, MEMBER
CITY OF L'(i !`::'C;UD
CITY G;_' - L •'. LiT!!'- I
C 1� l ,s 1990
AM PFA
1 1 1 2 1 3 1 41516
A G E N D A
LYNWOOD REDEVELOPMENT AGENCY
April 17, 1990
REGULAR MEETING
7:30 P.M.
LYNWOOD CITY HALL, 11330 BULLIS ROAD
,
ROBERT HENNING
CHAIRMAN
PAUL H. RICHARDS II
VICE CHAIRMAN
ARMANDO REA
MEMBER
EXECUTIVE DIRECTOR
CHARLES G. GOMEZ
OPENING CEREMONIES:
A. Call Meeting to Order.
LOUIS J. HEINE
MEMBER
EVELYN WELLS
MEMBER
AGENCY COUNSEL
JAMES D. CLARK
B. Roll Call.. ( HEINE- HENNING -REA- RICHARDS- WELLS)
C. Certification of Agenda Posting by Secretary.
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items only)
ITEMS FOR CONSIDERATION•
1. MINUTES OF PREVIOUS MEETING
None
2. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
LYNWOOD, CALIFORNIA ALLOWING AND APPROVING THE DEMANDS AND
WARRANTS THEREFOR.
1
• REGULAR ITEMS
3. PROPOSAL FOR THE REDEVELOPMENT OF LYNWOOD PLAZA
Comments:
The Rainier Fund, Inc. (TRF) has recently submitted a
proposal for the development of a retail commercial shopping
center on the 12.5 acre triangular shaped property currently
know as Lynwood Plaza which is bounded by Abbott Road to the
north, Martin Luther King, Jr. Boulevard to the west and San
Luis Avenue to the east.
Recommendation:
Staff respectfully recommends that the Agency hears the
presentation by the proponent and, after consideration,
approve the concept and direct staff to pursue the
preparations to enter into an Owner Participation Agreement
with the proponent.
4. AMENDMENT TO SALE OF PROPERTY AGREEMENT.
Comments:
To request that Agency approve amendment to Sale of Property
Agreement between the City and Agency dated February 20,
1986, for the purpose of stipulating interest calculation on
outstanding loan balance of principal and unpaid interest.
Recommendation:
Staff respectfully requests that the Agency Chairman and
Board Members approve amendment to Agreement For Sale of
Property from the City of Lynwood to the Lynwood
Redevelopment Agency.
DISCUSSION ITEMS
None
INFORMATIONAL ITEMS
5. POOLING OF AREA " A " AND ALAMEDA PROJECTS FUNDS FOR INVESTMENT
PURPOSES.
Comments:
The Agency Treasurer plans to pool temporarily idle monies
from the Area " A " and Alameda projects for purposes of
investment in the Local Agency Investment Fund operated by
the State Treasurer's office.
Recommendation:
Staff respectfully requests that the Agency receive and file
this information.
6. FREEDOM FORD CAR DEALERSHIP
Comments:
To convey to the Agency a tentative schedule for negotiating
a development agreement and implementing the proposed
project.
Recommendation:
Staff respectfully requests that the Agency receive and file
this tentative schedule of project actions.
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7. PUBLIC MEETING ON PROPOSED FREEDOM FORD PROJECT
Comments:
To transmit to the Agency the agenda for a public meeting on
the proposed Freedom Ford project, scheduled for Monday,
April 16, 1990, and information to be made available at this
meeting.
Recommendation:
Staff requests that the Agency receive and file this
information.
CLOSED SESSION ITEMS
8. DEWITT VS. LYNWOOD REDEVELOPMENT AGENCY
Comments:
Agency staff and Legal Counsel will report on pending
litigation in De Witt, et. al. vs. Lynwood Redevelopment
Agency.
Recommendation:
Staff requests that the Agency meet in CLOSED SESSION
pursuant to Government Code S. 54956.9(b) in order to confer
with Legal Counsel. (NO STAFF REPORT ATTACHED)
9. BABAY VS. LYNWOOD REDEVELOPMENT AGENCY
Comments:
Agency Staff and Legal Counsel will report on pending
litigation in Raphael and Christa Babay vs Lynwood
Redevelopment Agency, et al; Los Angeles Superior Court Case
No. SCC 23294, and related appeal.
Recommendation:
Staff requests that the Agency meet in CLOSED SESSION
pursuant to Government Code S.54956.9(b) in order to confer
with Legal Counsel. (NO STAFF REPORT ATTACHED)
AGENCY ORAL AND WRITTEN COMMUNICATION
PUBLIC ORAL COMMUNICATION
ADJOURNMENT:
Motion to adjourn to a Regular Meeting of the Lynwood
Redevelopment Agency to be held May 1, 1990 at 7:30 p.m. in the
Council Chambers of City Hall, 11330 Bullis Road, Lynwood,
California.
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RESOLUTION NO. LRA
A :nLU7I0N OF THE REDEVELOPMENT AGENCI OF THE CITY OF LYNWOOD
L'tNWODU, CALIFORNIA ALLOWING AND APPROVING THE DEMANDS AND ORDERING
WARRANTS THEREFOR
the Redevelopment Agency of the City of Lynwood does hereby resolve as follows.
Section E That the demands presented, having been regularly audited, are hereby allowed and
approved, and thut warrants ordered drawn therefor by the Agency Treasure to the payee and in the amounts indicated.
WARRANT # /DATE PAYEE DESC AMOUNT AREA A ALAMEDA
2899
04 -17 -90
DEPT_ OF TRANSPORTATION
PROPERTY ACQUISITIONS /CALTRANS
2900
04 -17 -90
SPOILED CHECK
SPOILED CHECK
2901
04 -17 -90
C1 TY OF LYNWOOD
CIP EXPENDITURES- -1/90
2902
04- -17 -+0
EASIMT.N P 66Ah CO.
COPIER TONER
2903
04 -17-90
I 11L_-,iFNGER
MESSENGER SVCS - -3/90
2904
04 -17 -90
FREEWAY STORES
PANASONIC TYPEWRITER
2905
04 -17-90
KATZ HOLLIS COREN A ASSOC INC.
SOI PREPARATION
2906
04 -17 -90
MORELAND AND ASSOCIATES
AUDIT /ACCTG ASSIST
2907
04 -17 -90
PROPERTY IIJSFECT10Nu REPORTING
APPRAISAL - -3820 M L K
2908
04 -17 -90
ItMELY TEMPORARY
TEMPORARY HELP - -3/19 -3/31
2909
04 -17 -90
YCIUNC PEOPLE OF LYNWOOD
FURNITURE MOVED
88.36
88.36
•+ TOTAL
333,180.00
333,180.00
0.00
0.00
0.00
0.00
2 ,587.89
2,587.89
0.00
65
86
32.93
32.93
82
25
49.15
33.10
170
79
85.40
85
39
242.50
242.50
0.00
176.72
88.36
88.36
1, 500.
00
11500.00
0.00
580.00
290.00
290
00
60.00
30.00
30.00
338,646.01
338,086.23
559.78
S",tion That the Agency Secretary shall certify to the adoption of the resolution and shall
deliver a certified copy to the Agency Treasure and shall retain a copy thereof for the record-
PASSED. APPROVED AND ADOPTED THE
ATIF. ST
ANUIiFA L HOOFER
SECRETARY
day of
1990
RODERT
CHAIRMAN, Lynwood Redevelopment Agency
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DATE: April 17, 1990
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY
FROM: Kenrick R. Karefa- Johnson
Interim Director of Community Development
SUBJECT: PROPOSAL FOR THE REDEVELOPMENT OF LYNWOOD PLAZA
PURPOSE:
To request that the Agency hear the proponent, TRF Development
Corporation (Rainier Fund), and consider the proposal to develop
a $17,206,950.00 retail commercial shopping center on the 12.5
area site currently known as Lynwood Plaza.
FACTS:
1. Medio March 1990 TRF development corporation, an affiliate of
the Rainier Fund, Inc. submitted subject proposal.
2. The project is described as a retail commercial shopping
center of 126,100 sq. ft. of gross leasable area with two
major anchor tenants.
3. TRF proposes to acquire the land independently without Agency
participation; and only as last resort agency participation
will be requested in case the need arises for a taking
through eminent domain.
ANALYSIS:
Staff believes that the proposal is exciting and the realization
of the project would be a tremendous asset to the city, not only
in terms of sales tax revenues but also in terms of the quality
of the shopping environment for the citizens of Lynwood.
In order to pursue this opportunity in an efficient and legally -
sound manner, the following must be taken into consideration
before the Agency can enter into an Exclusive Negotiation Agree-
ment.
Provide Owner Participation opportunity to owners of
property on subject site pursuant to section 33339 of the
California Community Redevelopment Law and pursuant to
the Agency's rules governing participation by property
owners in the Redevelopment Project Area " A " as adopted
on June 21, 1988. This can be achieved by issuing a
letter to all property owners of the site which basically
gives the property owners 30 days to provide the Agency
with a proposal if they wish to participate.
During the Exclusive Negotiation period, the Agency and
staff will have the opportunity to more carefully review
the merits of the proposed development through the exami-
nation of the deal points, economic feasibility, parking,
circulation and overall benefits to the community.
RECOMMENDATION:
Staff respectfully requests that the Agency hear the proponent's
presentation and, after consideration of the proposal approve the
concept and direct staff to offer owner participation opportunity
to all property owners on the subject site."
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AGENDA ITEM
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DATE: April 17, 1990
1]
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY
FROM: Alfretta F. Earnest, Interim Director of Finance
SUBJECT: AMENDMENT TO SALE OF PROPERTY AGREEMENT
Purpose:
To request that Agency approve the First Implementation Agreement
to the Sale of Property Agreement between the City and Agency
dated February 20, 1986, for the purpose of evidencing and
stipulating interest calculation on outstanding loan balance of
principal and unpaid interest.
Facts:
1. On February 20, 1986, the Agency approved an agreement
between the City and the Agency for sale of the Towne Center
property at a cost of $634,784.
2. The agreement states that interest will be paid at an annual
rate of 12 %. However, there is no reference in the agreement
stating whether interest should be calculated on principal
only or on unpaid balance of principal plus accumulated
interest.
3. Methods used to calculate interest and amounts due the City
may be calculated as follows:
STRAIGHT -LINE METHOD
Period Principal Interest Total Due
2/20/86 - 4/20/90 $634,784 $317,392 $952,175
COMPOUND INTEREST METHOD
2/20/86 - 4/20/90 $634,784 $386,964 $1,021,748
4. Both methods of calculation (as noted above) are in
compliance with the Redevelopment Compliance Guidelines.
5. The City's General Fund Revenue projection for LRA loan
proceeeds as well as the Agency's Financial consultants, Katz
Hollis Coren & Associates, have utilized the compound
interest method to calculate accumulated interest, thereby
interpreting the Sales Agreement as requiring the usual
annual compound interest. This method allows the City to
accrue interest on unpaid balance of principal plus unpaid
accumulated interest. The compound interest method also
allows the City to receive interest in accordance with usual
commercial practice.
6. Exhibit " A " will amend Agreement for Sale of Property to
provide for a note which spells out the interest calculation.
Recommendation:
Staff respectfully requests that the Agency Chairman and Board
Members approve amendment to Agreement For Sale of Property from
the City of Lynwood to the Lynwood Redevelopment Agency.
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AGENDA ITEM
=- y
• LRA RESOLUTION NO 90- •
A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY
APPROVING THE FIRST IMPLEMENTATION AGREEMENT TO THE
AGREEMENT FOR SALE OF PROPERTY BY AND BETWEEN THE
LYNWOOD REDEVELOPMENT AGENCY AND THE CITY OF LYNWOOD AND
AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE IT
WHEREAS, on February 20, 1986, the City of Lynwood ( "City ")
and the Lynwood Redevelopment Agency ( "Agency ") entered into the
Agreement for Sale of Property ( "Sale Agreement ") pursuant to
which the Agency was to purchase certain real property from the
City; and
WHEREAS, the City transferred to the Agency the real
property which is the subject of the Sales Agreement; and
WHEREAS, Section 1 of the Sales Agreement provides that the
Agency agreed to purchase the real property for the sum of
$634,784.00, which sum remains unpaid; and
WHEREAS, Section 2 of the Sales Agreement provides that the
obligation of the Agency shall bear interest until paid in full
at the rate of twelve percent (12 %) per annum; and
WHEREAS, compounding of the said interest has been the
method used by the City and the Agency to calculate said interest
and it is the commercially acceptable manner of calculating
interest; and
WHEREAS, the Agency and the City wish to indicate that it
was their intent upon entering into the Sales Agreement that the
obligation of the Agency to pay the sum of $634,784.00 to the
City was to bear interest until paid in full at the rate of
twelve percent (12 %) per annum compounded annually;
NOW, THEREFORE, BE IT RESOLVED by the Lynwood Redevelopment
Agency as follows:
SECTION 1. The Executive Director of the Agency is hereby
authorized to execute the First Implementation Agreement to the
Sales Agreement in the form attached hereto as Exhibit A ( "First
Implementation Agreement ").
SECTION 2. The Executive Director of the Agency, or his
designee, is hereby authorized, on behalf of the Agency, to sign
all documents necessary and appropriate to carry out and
implement the First Implementation Agreement, and to administer
and implement the Agency's obligations, responsibilities and
duties to be performed under the First Implementation Agreement.
APPROVED AND ADOPTED by the members of the Lynwood
Redevelopment Agency this _ day of April, 1990.
ATTEST:
Andrea L. Hooper, Secretary
APPROVED AS TO CONTENT:
ROBERT HENNING, CHAIRMAN
APPROVED AS TO FORM:
Kenrick R. Karefa- Johnson
Interim Director
Alfretta Earnest
Interim Director of Finance
(7�
James Dexter Clark
Agency Special Counsel
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•IRST IMPLEMENTATION AGREEOT
TO THE AGREEMENT FOR THE SALE OF PROPERTY
DATED FEBRUARY 20, 1986
BY AND BETWEEN THE LYNWOOD REDEVELOPMENT AGENCY
AND THE CITY OF LYNWOOD
This First Implementation Agreement to the Agreement for the
Sale of Property, dated February 20, 1986, is entered into by and
between the Lynwood Redevelopment Agency ( "Agency "), a public
body, corporate and politic, organized and existing pursuant to
the Community Redevelopment Law (California Health and Safety
Code Section 33000 et seg .) and the City of Lynwood ( "City "), a
municipal corporation duly organized and existing under the laws
of the State of California.
For and in consideration of the mutual covenants and
conditions set forth herein, the Agency and the City hereby agree
as follows:
I. (Section 100) PURPOSE OF THE FIRST IMPLEMENTATION AGREEMENT
The Agency and the City have heretofore entered into that
certain Agreement for the Sale of Property, dated February 20,
1986, ( "Sales Agreement "). The purpose of this First
Implementation Agreement is to provide for a note to evidence and
clarify the obligation of the Agency to repay certain funds to
the City.
II. (Section 200) AMENDMENT OF THE SALES AGREEMENT
The second paragraph of Section of the Sales Agreement is
hereby amended to add the following sentence:
The obligation of the Agency shall be particularized and
evidence by a note in the form of Attachment No. 1 (the "note ")
hereto, which is incorporated by this reference.
IN WITNESS THEREOF, the Agency and the City have signed this
First Implementation Agreement as of the dates set opposite their
signatures.
DATED: April _, 1990
THE CITY OF LYNWOOD
By:
Robert Henning, Mayor
APPROVED AS TO FORM AND CONTENT
DATED: April 1990 By:
Henry S. Barbosa
City Attorney
LYNWOOD REDEVELOPMENT AGENCY
DATED: April _, 1990 By:
Charles Gomez
Executive Director
APPROVED AS TO CONTENT
DATED: April _, 1990 By:
Kenrick R. Karefa- Johnson
Interim Director of
Community Development
APPROVED AS TO FORM
DATED: April _, 1990 By:
r�. James Dexter Clark
Agency Special Counsel
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PROMISSORY NOTE
Lynwood, California
April _, 1990
$634,784.00
The Lynwood Redevelopment Agency ( "Agency ") promises to pay
to the City of Lynwood ( "City ") the principal sum of Six Hundred
Thirty Four Thousand, Seven Hundred Eighty Four dollars and no
cents, with interest accruing at the rate of twelve percent (12 %)
per annum, commencing on February 20, 1986, and compounded on an
annual basis.
The Agency is obligated to pay the City said principal sum
and interest thereon only to the extent that the Agency receives
tax increment revenues from Lynwood Redevelopment Project Area
" A " pursuant to Section 33670 of the California Health and Safety
Code ( "Tax Increment ") less other Agency obligations. The Agency
shall not be required to pay to the City either the principal sum
or interest thereon in the event that the Agency does not have
sufficient tax increment to meet all of the Agency's other
financial obligations whether the financial obligations are
incurred prior to or subsequent to the making of this promissory
note. The Agency's pledge of Tax Increment to pay the City said
principal sum and interest thereon is subordinate and subject to
the right of the Agency to pledge or commit tax allocations from
Lynwood Redevelopment Project Area " A " to repay bonds or other
indebtedness incurred by the Agency in carrying out the
Redevelopment Plan for Lynwood Redevelopment Project Area " A " as
amended.
MAKER
The Lynwood Redevelopment Agency
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By:
Charles Gomez
Executive Director
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AGREEMENT FOR THE SALE OF PROPERTY
0
THIS AGREEMENT, dated as of February 20 , 1986, by
and between the LYNWOOD REDEVELOPMENT AGENCY, a redevelopment
agency and public body, corporate and politic, organized and
existing under and by virtue of the laws of the State of
California, (the "Agency "), as purchaser, and the CITY OF
LYNWOOD, a municipal corporation organized an existing under and
by virtue of the laws of the State of California (the "City "), as
seller;
WHEREAS, the Agency and Hopkins Lynwood Associates (the
"Developer ") have entered into or will enter into Disposition
and Development Agreement (the "DDA ") pursuant to which the Agency
will sell certain real property described in Exhibit A, hereto
(the "Property ") to the Developer; and
WHEREAS, the Agency is agreeable to paying to the City the
cost of the City to acquire the Property, including costs of
negotiation, recording, and related transactional costs; and
WHEREAS, the acquisition of the Property by the Agency will
facilitate the assembly of a developable site within Project Area
"A "; and
WHEREAS, the assembly of said site is required in order to
effect the provisions of the DDA; and
WHEREAS, the Agency agrees to accept conveyance of the
Property;
NOW, THEREFORE, in consideration of the foregoing recitals
and the mutual covenants hereinafter contained the parties hereby
agree as follows:
Section 1. Sale of the Property. The City agrees to sell
and the Agency agrees to purchase the Property for the amount of
Six Hundred Thirty Four Thousand Seven Hundred Eighty -four and 0 /100's
($634,784.00). The conveyance shall be completed as soon as
possible upon the acquisition of title to the Property by the
City.
Section 2. Purchase Price. The City Agrees and
acknowledges that payment of the purchase price hereunder shall
be made only from tax allocation revenues received by the Agency
pursuant to Section 33670 of the Health and Safety Code ( "Tax
Increment "). All such payment shall be due within the 1986
calendar year; provided that the City shall extend the time for
payment in the event that the Agency does not have sufficient Tax
Increment to meet all of the Agency's other financial obligations
whether incurred prior or subsequent to the approval of this
Agreement.
The obligation of the Agency shall bear interest until paid
in full at the rate of twelve percent (12 %) per annum or the
maximum interest rate that may lawfully be paid by a
redevelopment agency as may from time to time be revised.
This agreement constitutes an indebtedness of the Agency
incurred in carrying out the Project and a pledging of the tax
allocations from the Project to repay such indebtedness under the
provisions of Section 19 of Article XIII of the California
Constitution and Sections 33670 -33677 of the Health and Safety
Code; provided, however, that such pledge of tax allocations
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shall always be subordinate and subject to the right of the
Agency to pledge or commit tax allocations from the Project to
repay bonds or other indebtedness incurred by the Agency in
carrying out the Project.
Section 3. Title; Grant Deed. Conveyance shall be effected
by grant deed acceptable in form to the legal counsel of the
City, in form readable by the County Recorder of the County of
Los Angeles. The Agency assumes the obligations to pay all costs
associated with the conveyance of title.
Section 4. Obligation to Refrain from Discrimination.
There shall be no discrimination against or segregation of any
person, or group of persons, on account of race, color, creed,
religion, sex, martial status, national origin, or ancestry, in
the sale, lease, sublease, transfer, use, occupancy, tenure, or
enjoyment of the City, nor shall the Agency itself or any person
claiming under or through it establish or permit any such
practice or practices of discrimination or segregation with
reference to the selection, location, number, use of occupancy of
tenants, lessees, subtenants, sublessees, or vendees of the City
or any portion thereof.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective officers thereunto
duly authorized, all as of the date first above written.
CITY OF LYNWOOD
By: �G'�� GL 1n��j
ROBERT HENNING, Makyor
Attest:
C::�f '
*iDREA L. HOOPER, City Clerk
LYNWOOD REDEVELOPMENT AGENCY
By:
ROBERT HENNING,/Chairman
r %ttest:
ANDREA L. HOOPER, Secretary
V
0
DATE: April 17, 1990
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY
FROM: Mary Wright, Treasurer
SUBJECT: POOLING OF AREA " A " AND ALAMEDA TEMPORARILY IDLE FUNDS
FOR PURPOSES OF INVESTMENT
The Agency currently invests a portion of its temporarily idle
monies from the Area " A " Project with the Local Agency Investment
Fund (LAIF) operated by the State Treasurers office.
The Agency Treasurer plans to pool the temporarily idle monies of
the Alameda Project with the Area " A " funds in the Agency's
account with LAIF for purposes of investment. The Agency is only
permitted one account with LAIF.
Joint income would be prorated between the two projects.
The interest yield paid by LAIF has, in the past several years,
been equivalent to, or higher than, the rates paid by the
majority of Banks and Savings and Loan institutions. Another
advantage is that the funds deposited with LAIF are highly liquid
as there is no minimum investment period.
LAIF investments were authorized by the State Legislature and are
particularly advantageous for cities or agencies with small
investment portfolios which do not enable them to take advantage
of long term investments.
LAIF is considered a very safe investment.
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AGENDA ITEM
0
INFORMATIONAL ITEM
PURPOSE
To convey to the Agency a tentative schedule for negotiating a
development agreement and implementing the proposed project.
FACTS:
1. On March 4, 1990 Freedom Ford, Inc. submitted a proposal to
the Lynwood Redevelopment Agency to relocate its operations
to a site on the south side of Imperial Highway between
Atlantic Boulevard and the Long Beach Freeway.
2. On March 13, 1990 the Agency sent letters to owners of
property on the subject site, extending to them the
opportunity to participate in the proposed project pursuant
to Section 33339 of the California Community Redevelopment
Law and pursuant to the Agency's rules governing
participation of property owners in the Redevelopment Project
Area "A ".
ANALYSIS
In order to plan for possible implementation of the proposed
project, Agency staff has prepared a tentative schedule of major
tasks and actions required.
This tentative schedule has been organized to show the timing of
the necessary tasks and actions required for the project. The
dates for the scheduled actions are printed horizontally across
the top of the time line and are indicated by week- ending dates.
The necessary actions are listed vertically down the left side of
the timeline.
These actions are divided into four categories: A) Analyze
Financial Feasibility /Provide Funding; B) Relocation;
C) Acquisition; and D) Agency Actions /Approvals.
Tasks in each of these four categories will be carried out
concurrently, as indicated by the lines across the chart, which
show the time period required to complete a particular task
listed on the left, and by the dots, which indicate end - ending
date of the specific time when a particular event listed on the
left is expected to occur.
Tasks are organized as follows:
Category A) ANALYZE FINANCIAL FEASIBILITY /PROVIDE FUNDING in-
cludes:
1)
Ford project. These projections have already been submitted
and will be needed to assist the Agency in evaluating project
feasibility;
DATE: April 17, 1990
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY
FROM: Kenrick R. Karefa- Johnson r
Interim Director of Community Development
SUBJECT: FREEDOM FORD CAR DEALERSHIP
AGENDA ITEM
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11
2) Analysis of &e development proposal. Whis analysis will
assess the marketability of the Project, the value of the
land if utilized as an auto dealership and the highest and
best use for the land. It will be carried out by
Keyser /Marston, economic development consultants, and will
assist the Agency in evaluating the proposal and in
negotiating a development agreement;
3) Agency study session on all costs and revenues At this
session, which is expected to be scheduled for June 5, 1990,
the Agency will consider results of the above analyses as
well as relocation and property acquisition costs (which are
listed in categories B and C below) in order to decide
whether or not to proceed with the proposed project.
4) Issue bonds and assemble necessary team of consultants If
the project is approved, the Agency would now consider the
issueance of bonds to finance it and retain an acquisition
agent to acquire property and a relocation consultant to
provide relocation assistance;
Category B) RELOCATION
1) Prepare initial cost estimates To allow the Agency to
consider all the costs of the project, it will be necessary
to obtain an estimate of the costs to relocate the residents
and businesses who would have to move as a result of the
project.
2)
3)
housing. It has been proposed that residents of the project
site could be relocated to new housing to be built on
Caltrans property. It would be necessary early in the
project to obtain an option to purchase this land from
Caltrans.
housing. Once the Agency has an option to purchase this land
for replacement housing it would be necessary to determine
direction to be taken to have this housing constructed.
4) Relocate residents and businesses Actual relocation would
commence only after the Agency has approved a Disposition and
Development Agreement (listed under Category D) and is
expected to be completed within six months.
Category C) ACQUISITION
1) Complete real estate appraisals This is the first step in
property acquisition. Appraisals of real property allow the
Agency to estimate project costs and are required by law
prior to the Agency making offers to acquire the property
from the owners. (Complete May 11, 1990)
2)
-- -- I I ^.. �� uiiu a ul menr a raisals. Businesses
located on the project site have fixtures and equipment which
would be acquired or relocated by the Agency. Knowing the
value of these items allows the Agency to estimate costs and
to make an offer to acquire them.
3) Extend opportunity to participate to property owners
Letters offering property owners the opportunity to
participate in the project have been sent to all individuals
who own property on the site of the proposed project. Any
responses to this offer will be considered as part of project
implementation.
4) Issue offers to acquire property and negotiate ac uisition.
Once the Agency has approved a development agreement and has
obtained appraisals of the fair market value of the property
on the project site, offers to property owners to acquire
their property will be issued. This process will start at
the same time as relocation of residents and businesses.
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5) Send notice regarding use of eminent domain. After offers
have been made to property owners and a reasonable time has
been devoted to negotiating the acquisition of this property
from the owners, notices regarding the Agency's use of
eminent domain should be sent to all property owners in the
project site.
Category D) AGENCY ACTIONS /APPROVALS
1) Informational meeting with affected residents and business
owners. This meeting is scheduled to take place Monday
evening April 16, 1990 at 6:OOpm. At this time concerns of
affected residents and business operators will be addressed.
2)
Implementation of this step will be affected by responses to
the letter to property owners extending owner participation
opportunities.
3) Agency approves option on Caltrans property The Agency
would be responsible for approving any option to acquire
Caltrans land for construction of replacement housing.
4)
implementation. The Project Area Committee will be informed
and consulted regularly on project activities throughout
project implementation.
5) Issue negative declaration It will be necessary to
determine whether or not the proposed project will have a
significant impact under CEQA Guidelines.
6) Hold Hearing on Disposition and Development Agreement and
Section 33433 Report If a development agreement is
successfully negotiated, it is anticipated that the Agency
will hold a public hearing August 7, 1990 on the DDA and on
the report required by Section 33433 of California Community
Redevelopment Law. This report discloses costs and benefits
of the project to the Agency. This step would conclude the
actions required to study the proposed project and to
negotiate a development agreement and would initiate
acquisition of property and relocation of residents and
businesses from the project sited.
The activities described above are the main tasks to be
accomplished to implement the proposed project. Many of these
tasks requires associated steps which have not been completely
described above but will be outlined as it becomes necessary to
perform them. All the projected dates on this tentative schedule
are estimates, of course, and may change with time.
RECOMMENDATION
Staff respectfully requests that the Agency receive and file this
tentative schedule of project actions.
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FREEDOM FORD PROJECT
TENTATIVE SCHEDULE
MAJOR ACTIONS / TASKS WEEK ENDING �
' 3/16 3/30 4/13 4/27 5/11 5/25 6/8 6/22 6/29 7/13 7/27 8/10 8/24 9/7 9/21 10/5 10/19 11/9 11/23 12/7 12/21 1/4 1/18 2/8
A. ANALYZE FINANCIAL FEASIBILITY /
PROVIDE FUNDING
1. PREPARE TAX INCREMENT PROJECTIONS
(KATZ HOLLIS)
2. ANALYZE DEVELOPMENT PROPOSAL
(KEYSER / MARSTON)
3. AGENCY BOARD STUDY SESSION ON ALL COSTS
AND REVENUES - GO / NO GO DECISION (JUNE 5,
1990)
IF BONDS ARE ISSUED, ASSEMBLE NECESSARY
TEAM OF CONSULTANTS. CITY MAKES LOAN TO
AGENCY FOR INTERIM FUNDING OR AGENCY USES
AVAILABLE FUNDS
B. RELOCATION
1. PREPARE INITIAL COST ESTIMATES
2. ATTORNEY SECURES OPTION ON CALTRANS
PROPERTY FOR REPLACEMENT HOUSING
3. SOLICIT PROPOSALS OR AGENCY DIRECTION FOR
REPLACEMENT HOUSING
4. RELOCATE RESIDENTS AND BUSINESSES
C. ACQUISITION
1. COMPLETE REAL ESTATE APPRAISALS
2. COMPLETE FIXTURE / EQUIPMENT APPRAISALS
3. EXTEND OPPORTUNITY TO PARTICIPATE TO
• PROPERTY OWNERS
ISSUE OFFERS TO ACQUIRE PROPERTY AND
NEGOTIATE ACQUISITION
S. SEND NOTICE REGARDING USE OF EMINENT DOMAIN
D. AGENCY ACTIONS / APPROVALS
L. INFORMATIONAL MEETING WITH AFFECTED
RESIDENTS & BUSINESS OWNERS
2. AGENCY APPROVES EXCLUSIVE NEGOTIATING
AGREEMENT WITH DEVELOPER AND NEGOTIATES
DDA (STARTING MAY 1,1990)
3. AGENCY APPROVES OPTION ON CALTRANS
PROPERTY
4. CONSULTATION WITH PAC ON PROJECT
5. ISSUE NEGATIVE DECLARATION
6. HOLD HEARING ON DDA AND SECTION 33433
_ REPORT (AUGUST 7,1990)
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INFORMATIONAL ITEM
DATE: April 17, 1990
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY
FROM: Kenrick R. Karefa- Johnson owt
Interim Director of Community Development
SUBJECT: PUBLIC MEETING ON PROPOSED FREEDOM FORD PROJECT
PURPOSE
To transmit to the Agency the agenda for a public meeting on the
proposed Freedom Ford project, scheduled for Monday April 16,
1990, and information to be made available at this meeting.
FACTS
1. This public meeting has been scheduled to address the
concerns raised by the residents, property owners, and
operators of businesses located on the site of the proposed
project. At this meeting information on property acquisition
and relocation assistance will be presented. Agency staff
and consultants will be available to answer questions.
Attached is the agenda for this public meeting, as well as
information on relocation assistance to residents and
businesses displaced by a public agency, as required by State
law. This information will be made available at the public
meeting.
RECOMMENDATION
Staff requests that the Agency receive and file this information.
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AGENDA ITEM
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COMMUNITY MEETING
FREEDOM FORD PROJECT
LYNWOOD REDEVELOPMENT AGENCY
MONDAY, APRIL 16, 1990
BATEMAN HALL, ROOM 2
11331 ERNESTINE AVE.
LYNWOOD, CALIFORNIA
6:00 P.M.
AGENDA
1. INTRODUCTION
2. THE REDEVELOPMENT PROCESS
3. PROPERTY ACQUISITION
4. RELOCATION
5. STATUS OF THE FREEDOM FORD PROJECT
6. QUESTIONS AND ANSWERS
HAND OUT FOR PUBLIC MEETING, APRIL 16 1990
LYNWOOD REDEVELOPMENT AGENCY
RELOCATION ASSISTANCE
This statement provides a brief outline of the relocation
benefits the Lynwood Redevelopment Agency would provide to
residents and businesses required to move as a result of the
proposed Freedom Ford project.
If the project is approved, you will receive a more complete
informational statement regarding the Agency's relocation
program.
RELOCATION ASSISTANCE TO RESIDENTS
ASSISTANCE IN LOCATING A NEW HOME
A Relocation Assistance Advisor
Redevelopment Agency to assist you
advisor will help you find another
your needs, is within your ability to
standard housing. You are urged to
yourself, as you are most aware of
needs.
will be retained by the
in your relocation. This
living unit which fulfills
pay, and meets criteria for
actively seek such housing
your particular wants and
Title VIII of the Civil Rights Act of 1968 established a national
policy making discrimination based upon race, color, religion,
sex, or national origin illegal in regards to the sale or rental
of most housing and vacant land offered for residential
construction or use. Should you encounter difficulties in this
area, please inform your Relocation Assistance Advisor.
If you are interested in public housing, other federally- assisted
rental or sales housing programs, FHA or VA loans, or
conventional loans, your Relocation Assistance Advisor will help
you file an application and also assist you with completing the
transaction. While it is our purpose to be of utmost assistance
to you, this by no means requires you to utilize our resources or
prevents you from actively looking for a home or apartment.
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STANDARD HOUSING REQUIREMENTS
A standard housing unit is one that is not overcrowded and is
weatherproof, with good heating, electrical wiring and
foundation. All referrals will be within a reasonable distance
from your place of employment and located in an area at least as
desirable as your present location.
RELOCATION PAYMENTS
The following relocation payments will be available to displaced
tenants and homeowners:
1. Moving Costs•
Every person who must move as a result of purchase by the
Agency or other redevelopment activities may receive a
payment to assist in carrying out the move. Two types of
payments are available; a fixed moving payment and
dislocation allowance or a reimbursement for actual moving
expenses.
a. Fixed Moving Payment:
The amount of the payment will depend on the number of
rooms of living space you occupy and whether you own the
furniture.
If you live in a unit and the landlord owns the
furniture, you may be eligible for a fixed payment of
$225 for the first room and $35 for each additional room
you occupy.
If you own the furniture in your unit, you may be
eligible for a fixed payment of $250 and up, per the
fixed moving cost schedule, depending upon the number of
rooms you occupy.
b. Actual Moving Expenses:
If you wish to engage the services of a licensed mover
and have the Agency pay the charge, you may claim the
actual cost of moving your personal property up to 50
miles. With advance Agency approval, these expenses may
also include storage for up to 12 months. There is no
dollar limitation for actual moving expenses.
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2. Replacement Housing Payments for Tenants:
You may be'eligible for a payment of up to $5,250 to assist
you with renting or purchasing a standard replacement home.
However, you must be a tenant who has lived on the project
property for at least 90 days before the Agency made its
first written offer to purchase. Your Relocation Assistance
Advisor will advise you of this date.
a. Rental Assistance:
As the occupant of the property for 90 consecutive days
or more immediately preceding the date of the first
written offer, you are eligible for a rental assistance
payment to assist you in renting a replacement dwelling.
The maximum contribution toward you replacement dwelling
will be based on an estimated monthly cost of renting a
comparable replacement dwelling minus the average monthly
rent during the three months immediately prior to
vacation from the displacement dwelling, multiplied by
48.
b. Down Payment Assistance:
A 90 -day tenant occupant may use the full amount of the
rental assistance calculations as down payment on a
replacement dwelling.
3. Replacement Housing Payment for Homeowners:
If you owned and occupied a dwelling purchased by the Agency
for at least 180 days prior to the Agency's offer to
purchase, you may be eligible to receive a payment of up to
$22,500, in addition to the fair market value of your
property, to assist you in purchasing a comparable, decent,
safe, and sanitary replacement dwelling. This payment may
cover the following expenses:
a. Differential Payment:
The differential payment is the amount, when added to the
price paid to you by the Agency, equals the actual costs
to purchase a comparable dwelling or the amount
determined by the Agency as necessary to purchase a
comparable replacement dwelling. If your family size
necessitates a larger unit, the price for a comparable
dwelling will be based on the size that meets your family
needs.
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b. Interest Payment:
If you have an existing mortgage which was a valid lien
for at least 180 days prior to the first written offer
and then take a mortgage on your replacement home at a
higher interest rate, you may be compensated for the
difference in interest charges which are calculated at
present value.
C. Incidental Expenses:
You may be compensated for costs incidental to purchasing
a replacement unit such as escrow fees and credit
application fees, regarding fees, appraisal fees, and
other incidental expenses excluding taxes, insurance, and
impounds.
4. Last Resort Housing:
If there is not an adequate supply of available comparable
housing within the maximum of $5,250 or $22,500 payment
limits for those persons being displaced, the Agency will
resolve the problem by the administrative process called Last
Resort Housing.
Last Resort Housing must be provided before you are required
to move. The Agency has a number of ways of implementing
this program and it shall be conducted on a case -by -case
basis.
The methods of providing Last Resort Housing include, but are
not limited to:
a. Purchasing an existing comparable residential property
and making it available to the displacee by sale, lease
or in exchange for the displacement property.
b. The relocation and rehabilitation of a dwelling purchased
within the project area by the Agency and making it
available to the displacee in exchange for the
displacement property.
C. The rehabilitation of, and /or additions to, an existing
replacement dwelling to make it comparable and decent,
safe and sanitary.
d. The purchase and construction of a new replacement
dwelling when comparable dwellings are not otherwise
available.
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e. The purchase of an existing dwelling and removal of
barriers and /or rehabilitation of the structure to
accommodate a handicapped displacee.
f. A replacement housing payment in excess of the maximum
$5,250 or $22,500 payment limits.
If you are eligible for replacement housing under the Last Resort
Housing program, you will be informed by your Relocation
Assistance Advisor.
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RELOCATION ASSISTANCE TO BUSINESSES AND NON - PROFIT ORGANIZATIONS
The Agency will provide displaced businesses, institutions, and
nonprofit organizations advice and assistance regarding
alternative replacement sites. when suggesting suitable
replacement sites, the Agency's representative will consider
factors such as property values, zoning requirement, growth
potential, traffic and circulation availability of site,
application for small business, administration and other loans,
SBA technical and managerial assistance and amount and type of
space necessary for your business.
Therefore, your Relocation Assistance Advisor will help you
analyze the specific relocation needs of your business.
Although it is our purpose to be of utmost assistance to you,
this by no means requires you to utilize our services or prevents
you from actively looking for a replacement site.
RELOCATION PAYMENTS
The following relocation payment will be made to displaced
businesses and non - profit organizations:
ACTUAL REASONABLE MOVING EXPENSES
Businesses which relocate may be compensated for costs involved
in moving. Payments for moving costs include only the actual,
reasonable expenses involved in conducting the move. Eligible
expenses include cost of disconnection and disassembly of
equipment, packing and crating, transportation up to 50 miles and
reassembly and reinstallation of equipment.
Under certain circumstances, the costs of storing equipment and
other goods for up to 12 months may be paid.
Actual reasonable moving expenses may also include cost of
reconnecting utility services to equipment moved. Under certain
circumstances, expenses may cover costs of adaption of equipment
to the use of a different type of power supply and cost of
physical changes in or to a building to meet local code or
reinstallation requirements.
Limited compensation may be paid toward the installation of
substitute comparable items of equipment in lieu of moving
existing equipment.
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At least two acceptable moving bids or estimates will be
required. You will select the movers and /or contractors you
desire to perform you move.
The lowest acceptable moving bid received on the basis of your
moving requirements will establish the maximum amount
reimbursable by the Agency. Businesses may also move themselves
and be compensated in the amount of the lowest moving bid.
ACTUAL DIRECT LOSS OF PROPERTY
A business may receive a payment for any actual direct loss of
its tangible personal property including inventory of goods held
for sale which is not retained and moved to another location.
The payment is available both to businesses which move and to
those which discontinue operations.
You may elect to claim a property loss payment for all your
personal property or for any portion of it. If you wish to claim
a loss for a portion of your inventory and move the remainder,
the Agency will compensate you for both.
An owner of a business may receive compensation for costs
incurred in searching for a replacement business up to a maximum
amount of 41,000. Such expenditures may include:
1. actual travel costs payable on a mileage basis at the rate or
reimbursement paid by the Agency to its employees;
2. meals and lodging away from home if it is demonstrated that
potential replacement sites are not available with the local
area;
3. time spent in searching for a replacement site is based on
the reasonable salary or earning of the business concern's
representative; and
4. fees other than normal commissions for professional services
required to locate a replacement site should such services be
necessary to search for a location and could not have been
provided by others.
PAYMENT IN LIEU OF ACTUAL MOVING AND RELATED EXPENSES
This payment is intended to compensate business concerns
(excluding the owner of an outdoor advertising sign), nonprofit
organizations and farm operations which do not claim moving
expenses for property loss, searching expenses, or all costs
connected with their relocation.
An "in lieu payment" shall be equal
earnings of the displaced business
immediately preceding displacement
$1,000 or in excess of $20,000.
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to the average annual net
for the two taxable years
but shall not be less than
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REESTABLISHMENT EXPENSES
A business may be eligible for reestablishment expenses incurred
in relocating a small business, farm, or nonprofit organization
to a replacement site.
The costs eligible for reimbursement are expenses that are
reasonable and necessary as determined by the Agency. Your
Relocation Assistance Advisor will explain in more detail the
typical charges involved in the reestablishment of a business,
farm or nonprofit organization. The total payment is limited to
$10,000 and certain reestablishment costs are also limited.
YOUR RIGHT TO APPEAL
If you have been refused a relocation payment by the Agency or
believe the payment offered was not enough, you may appeal. No
legal assistance is required. Information about the appeal
procedure is available from your Relocation Assistance Advisor.
LOSS OF GOODWILL
Business proprietors may be entitled to compensation for loss of
goodwill pursuant to California Code of Civil Procedure, Section
1263.510. For your information Section 1263.510 is reprinted
below in its entirety.
"(a) The owner of a business conducted on the property taken, or
on the remainder if such property is part of a larger
parcel, shall be compensated for loss of goodwill if the
owner proves all of the following:
(1) The loss is caused by the taking of the property or
the injury to the remainder.
(2) The loss cannot reasonably be prevented by a
relocation of the business or by taking steps and
adopting procedures that a reasonably prudent person
could take and adopt in preserving the goodwill. ?q
(3) Compensation for the loss will not be included in
payments under Section 7262 of the Government Code.
(4) Compensation for the loss will not be duplicated in
the compensation otherwise awarded to the owners.
(b) Within the meaning of this article, "goodwill" consists of
the benefits that occur to a business as a result of its
location, reputation for dependability, skill or quality,
and any other circumstances resulting in probable retention
of old, or acquisition of new, patronage."
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