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Home My Public Portal AboutA1992-07-21 LRAi F;ECEIVED CITY OF LYNI 1001) CITY CLERKS OFFiCE JUL 1 Z3 1992 July 21, 1992 AM P5S 7A90 iii Xi11213141516 REGULAR MEETING 7.30 P.M. LYNWOOD CITY HALL, 11330 BULLIS ROAD LOUIS J HEINE CHAIRMAN • LYNWOOD REDEVELOPMENT AGENCY 11330 BULLIS ROAD (310) 603 -0220 Louis J. Heine, CHAIRMAN Paul Richards, VICE CHAIRMAN Louis Byrd, MEMBER Armando Rea, MEMBER Evelyn Wells, MEMBER LYNWOOD, CALIFORNIA 90262 AGENDA LYNWOOD REDEVELOPMENT AGENCY PAUL RICHARDS VICE CHAIRMAN ARMANDO REA MEMBER I NTERIM EXECUTIVE DIRECTOR FAUSTIN GONZALES OPENING CEREMONIES: A. Call Meeting to Order. B. Roll Call ( HEINE- RICHARDS -BYRD -REA- WELLS) C. Certification of Agenda Posting by Secretary PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) ITEMS FOR CONSIDERATION I MINUTES OF PREVIOUS MEETING LOUIS BYRD MEMBER EVELYN WELLS MEMBER AGENCY COUNSEL HENRY BARBOSA Regular Meeting of June 16, 1992 2. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS THEREFOR. 1 I 0 0 REGULAR ITEMS None INFORMATIONAL ITEMS 3. PROPOSAL TO OBTAIN DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FUNDS FOR RIOT DAMAGED AREAS OF LOS ANGELES, CALIFORNIA AND IN CONNECTION WITH IMPLEMENTATION OF ENTERPRISE ZONES. Comments: To inform the Agency and City Council regarding a proposal to obtain Department of Housing and Urban Development (HUD) funds to be allocated in connection with implementation of Enterprise Zones. The City of Lynwood is eligible to compete for funds for riot damaged area through a recently enacted HUD program offered in connection with the implementation of Enterprise Zones. Recommendation: That the Agency receive and file this information pending completion of the program application materials for City Council and Agency review and approval. DISCUSSION ITEM 4 LYNWOOD REDEVELOPMENT AGENCY FY 1992 -1993 ANNUAL BUDGET Comments: To have the Agency adopt resolution approving the Lynwood Redevelopment Agency's Annual Budget for F Y 1992 -93. Recommendation: Staff respectfully requests that the Agency adopt the attached resolution entitled "A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY ADOPTING ANNUAL OPERATING BUDGET FOR FISCAL YEAR 1992 -93 ". CLOSED SESSION AGENCY ORAL AND WRITTEN COMMUNICATION PUBLIC ORAL COMMUNICATION ADJOURNMENT Motion to adjourn to a Regular Meeting of the Lynwood Redevelopment to be held August 4, 1992, at 7.30 p.m. in the Council Chambers of City Hall, 11330 Bullis Road, Lynwood, California. 2 r The Redevelopment Agency of the City of Lynwood met in a regular session in the City Hall, 11330 Bullis Road on the above date. Chairman Heine in the chair. Members Byrd, Rea, Richards, Wells, Heine, answered the roll call. Also present was Interim Executive Director Gonzales, Assistant General Counsel Barnes, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced the agenda had been duly posted in accordance with The Brown Act. PUBLIC ORAL COMMUNICATIONSe Hearing no response, public oral communications was closed. ITEMS FOR CONSIDERATION• It was moved by Mr. Rea, seconded by Mr. Byrd and carried, to approve the minutes of Regular Meeting of May 19, 1992. NJ LRA RESOLUTION NO. 92 -9r4 ENTITLED: "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS THEREFOR." WAS PRESENTED. It was moved by Mr. Rea, seconded by Mrs. Wells to adopt the resolution. ROLL CAM: AYES: • lTER BYRD, REA, RICHARDS, WELLS, HEINE NOES: NONE ABSENT: NONE Ib LRA RESOLUTION NO. 92 -Y6 ENTITLED: "A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY (THE AGENCY) APPROVING A REQUEST FROM ETCO CONSTRUCTION COMPANY FOR FINANCIAL ASSISTANCE." WAS PRESENTED. It was moved by Mr. Richards, seconded by Mr. Byrd to adopt the resolution. Mr. Richards questioned if the site met required aesthetic guidelines of the city. Acting Director Community Development Blumenfeld stated it had met all of the requirements. ROLL CALL: AYES: MEMBERS BYRD, REA, RICHARDS, WELLS, HEINE NOES: NONE ABSENT: NONE It was moved by Mr. Richards, seconded by Mrs. Wells to have Agency review, receive and file the attached investment policy. ROLL. (WALT.• ?AYES: , MEMBERS BYRD, REA, RICHARDS, WELLS, HEINE NOES: NONE ABSENT: NONE It was moved, seconded and carried, to recess to Closed Session to discuss property negotiations. UN M9 0 0 0 PUBLIC ORAL COMMUNICATIONS: Hearing no response, public oral communications was closed. Assistant General Counsel Barnes stated Agency met in Closed Session to discuss property negotiations. No action taken. There was no further business and the meeting was adjourned. CHAIRMAN SECRETARY RESOLUTION NO LRA The Redevelopment Agency of the City of Lynwood does hereby resolve as follows Section 1 That the demands presented, having been regularly audited, are hereby allowed and approved, and that warrants ordered drawn therefor by the Agency Treasure to the payee and in the amounts indicated WARRANTC /DALE PAYEE • 3575 35EIB 3589 3590 3591 3592 3593 3594 3595 3596 3597 3598 3599 3600 3601 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD LYNWOOD, CALIFORNIA ALLOWING AND APPROVING THE DEMANDS AND ORDERING WARRANTS THEREFOR 07 -P1 -92 07 -PI -92 07 -21 -92 07-'1-92 07- ?1 -92 07 -21 -92 07 - -92 07 -21 -92 07 - ?1 -92 07-:l -92 07-'1-92 07 -21 -92 07 -71 -92 07 -21 -92 07 -21 -92 HOOPER, ANDREA L. L A COUNTY SUPERIOR COURT HOOPER, ANDREA L BARBOSA b. VERA BYRD, LOUIS DATA PLUS COMMUNICATIONS, INC FORD GRAPHICS HEINE, LOUIS MANE, BALLMER & BERKMAN REA, ARMANDO RICHARDS, PAUL SECRETARY COFFEE SERVICE TIMELY TEMPORARY WELLS, EVELYN XEROX CORPORATION DESC VOID -BRD MTGS 6/2;6/4;6/16 EMINENT DOMAIN - FRONTIER MKT BRD MTGS 6/2;6/4 LEGAL SVCS BRD MTG 6/27 TELEPHONE REPAIRS GRAPHIC SUPPLIES BRD MTG 6/27 LEGAL SVCS BRD MTO 6/27 BRD MTG 6/27 COFFEE SVCS TEMPORARY HELP BRD MTG 6/27 LEASE AGRMT as TOTAL AMOUNT AREA A ALAMEDA -75.00 78.000 00 30 00 342.00 30 00 90 00 76.80 30 00 8,031 29 30 00 30 00 36.00 693. 75 30 00 525 84 87,920 68 - 37 50 713,000 00 25 00 171 00 15 00 45 00 38 40 15 00 6,947 99 15 00 15 00 18.00 346. 88 15 00 262.92 -37 50 0 00 25 00 171 00 13 00 45 00 38.40 15 00 1,083.30 15 00 15 00 18 00 346 87 15 00 262.92 85, 892. 69 2.027 99 Section 2. 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 ATTEST ANDREA I HOOPER SECRETARY day of 1992 LOUIS HEINE CHAIRMAN, Lynwood Redevelopment Agency ti V DATE: July 21, 1992 TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AGENCY FROM: Faustin Gonzales, Interim Executive Director A-_;u BY: Sol Blumenfeld, Acting Director Community Development Department SUBJECT: PROPOSAL TO OBTAIN DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FUNDS FOR RIOT DAMAGED AREAS OF LOS ANGELES, CALIFORNIA AND IN CONNECTION WITH IMPLEMENTATION OF ENTERPRISE ZONES. Purpose: To inform the Agency regarding a proposal to obtain Department of Housing and Urban Development (HUD) funds to be allocated in connection with implementation of Enterprise Zones. The City of Lynwood is eligible to compete for funds for riot damaged area through a recently enacted HUD program offered in connection with the implementation of Enterprise Zones The program will offer up to $250,000 for eligible projects which promote economic development opportunities for the City's low and moderate income residents in support of: • Enterprise Zone Programs (State & Potential Federal) • Business Development Expansion • Public and Private Partnerships • Coordinated Economic Development Activity Programming Suggested Eligible Projects: 1 The Agency is working with Central Appliance and a independent market operator to develop a retail furniture and appliance store, small neighborhood market, shops and a restaurant on a site recently vacated by Lucky Supermarket and other adjacent properties. The retail center will revitalize an area encompassing 10.2 acres along two of the City's major thoroughfares. The Redevelopment Agency and City Planning Commission recently recommended approval of this area as a Planned Commercial Development District (PCD). The Agency is working with property owners on a master plan for the site to permit reciprocal parking agreements, common area design, landscaping, signage and security. Two of the project owners are seeking Agency assistance for land acquisition and the undergrounding and moving of utilities. The City can offer the use of Enterprise Zone tax incentives to off -set a portion of development costs, however, it is essential to utilize alternative funding in order to facilitate property acquisition and fund a portion of off -site improvements. 2. Lvnwood Plaza Plaza Neighborhood ShoppingCenterShoppingCenter Approximately 40 percent of Lynwood Plaza experienced damage due to civil unrest. The Center'3 major tenants, Alpha -Beta, Clarks Drugs, Newberry's and several smaller shops sustained damage which caused business closing. The Center is scheduled to be redeveloped into a modern facility with a new Alpha -Beta market, new shops, restaurants and other commercial uses which will make it a focus of redevelopment in the community. 3 0 0 Staff is working with the property owners and a developer and is hoping to utilize HUD funds, Enterprise Zone tax incentives and disaster relief assistance to prepare a financial package of incentives to construct the project. HUD Section 108 funds and Enterprise Zone tax incentives may be used to offset a portion of land acquisition costs, however, alternative funding is necessary to off -set a portion of predevelopment costs for the neighborhood shopping center 3. Copeland Beverage Group Bottling Plant The Copeland Beverage Group (CBG) is seeking licensing, co- packing and distribution agreements with major soft -drink distributors in order to develop a bottling plant in Lynwood which will employ up to 60 Lynwood residents and include redevelopment of a 10 acre industrial site. The Lynwood Redevelopment Agency is working with CBG in providing preliminary planning services and utilization of Enterprise Zone tax incentives, however, it is necessary to seek alternative funding in order to off -set a portion of project land acquisition and predevelopment costs. 4 Cross Colours Clothing Manufacturer Cross Colours is a successful manufacturer of young people's clothing with gross sales in $3.4 million dollars. Current plans call for relocating all office and manufacturing operations to Lynwood at 11840 South Alameda Street. Cross Colours is looking to the City for help in providing funds for warehouse tenant improvements including additional lighting, upgrading of electrical services, fencing, the development of manufacturing work stations, and new restroom facilities. These improvements are estimated to cost approximately $600,000.00 and the City is seeking alternative funding for these improvements. An estimated 100 employees will be hired initially, and future expansion of the facility could add an additional 75 employees. The City is interested in building on the success of Cross Colours and is currently examining the prospects for developing a factory outlet facility in the City's retail area similar to the Citidel project in the City of Commerce with other potential successful retail manufacturers and perhaps a related restaurant or food court. The Cross Colours Common Ground Foundation (CCCG) , a non - profit community group, was established by Cross Colours Inc. to provide career counseling and disseminate information to community youth regarding broad range of education concerns including: • Inner City Education & • Self Esteem Counseling • College Preparation • Summer Employment • Conflict Mediation School Drop Out Counseling The above projects represent the strong public and private sector commitment toward redeveloping the City These projects will provide lasting improvement for the City and may require only supplementary funding to be realized. Program Requirements: The Program requires that applicants establish a CDBG nexus or connection with currently planned economic development programming. Grant funds are to be used to develop, coordinate or implement specific economic development activities that are being funded in whole or in part with a locality's CDBG program funds. W 0 Discussion: The City has thirty days to respond to 3300) The grant funds are expected projects over a two year period. 1 6 the Program Notice (NOFA to be used for eligible Grant awards for eligible projects will assist in implementation efforts to successfully complete one or more of the City's currently planned redevelopment projects. Pursuant to program requirements, staff is examining the prospect of utilizing these funds to assist in "predevelopment planning for the rebuilding of businesses physically damaged or destroyed during the April /May 1992 civil disturbance" and to offset" planning of public and or private infrastructure costs in support commercial and industrial activities in the community ". Recommendation: That the Agency receive and file completion of the program application and Agency review and approval. this information pending materials for City Council 0 0 DATE: July 21, 1992 TO: Honorable Chairman and Members of the Agency FROM: Faustin Gonzalez, Interim City Manager BY: Alfretta F. Earnest, Director of Finance / 1 SUBJECT: LYNWOOD REDEVELOPMENT AGENCY FY 1992 -1993 ANNUAL BUDGET Purpose: To have the Agency adopt resolution approving the Lynwood Redevelopment Agency's Annual Budget for F.Y. 1992 -93. Facts: Revenues and Expenditures Highlights of revenues and expenditures by project area are outlined below: Area "A" Redevelopment Fund (Fund 12 18) The primary revenue stream for Area "A" Redevelopment Fund is rental income ($35,000). The major expenditures are noted in legal services, and financial services for the entry markers project, and financial assistance (provided by Katz Hollis). Legal services are primarily provided by Kane Ballmer and financial services are provided by Katz Hollis. Area "A" Tax Increment Fund (Fund 14) The secured tax increment revenues are projected to increase by about 3% as a result of general increase of land values in project area "A" and increased assessements as determined by Katz Hollis. Area "A" 1976 and 1986 Bond Fund (Fund 16) The revenues in this fund are generated from interest income and tax increment transfer from Area "A" tax increment fund to pay interest and principal on 1976/86 Tax Allocation Bonds. Alameda Redevelopment Fund (Fund 22) The primary revenue stream for Alameda Redevelopment is interest earnings ($12,000). The major expenditures are noted in salaries and benefits, legal services, and financial services. Alameda Tax Increment Fund (Fund 24) The total Tax increment revenues for Alameda Project Area is expected to decrease due to reduction in capital projects and debt as noted on Statement of Indebtedness and anticipated cut in state subvention. l Discussion: The subject LRA Budget reflects staff costs to administer the redevelopment program, as well as costs associated with the implementation of certain projects. These projects include Entry Markers, and redevelopment of the Lynwood Plaza. The immediate task for this fiscal year is to conduct a cash flow analysis showing the impact of borrowing money and to determine the current financial status of each redevelopment project given the existence of all Agency debt. Ll Y 0 Recommendation: Staff respectfully request that the resolution entitled: "A RESOLUTION OF AGENCY ADOPTING ANNUAL OPERATING BUDGET L 1 6 Agency adopt the attached THE LYNWOOD REDEVELOPMENT FOR FISCAL YAEAR 1992/93 ". , 9 0 LYNWOOD REDEVELOPMENT AGENCY SUMMARY STATEMENT OF FUND BALANCE F.Y. 1992 -93 --- ------- ---- ---- -- -° .%lMARY OF ALL FUNDS: BEGINNING FUND BALANCE .ACTUAL BUDGET ESTIMATE BUDGET NL .YPE REVENUES FY 90/91 FY 91/92 FY 91/92 FY 92/93 -------------------------------------------------------------------------------------- PITAL PROJECT FUNDS: EXPENDITURES 5,004,870 5,628 3,310,442 BEGINNING FUND BALANCE 1,531,239 1,282,227 1,282,227 602,173 ESTIMATED REVENUES 2,226,769 1,590,000 61,400 47,900 ESTIMATED EXPENDITURES 4,274,278 3,035,455 927,630 337,350 TRANSFERS 94,123 0 185,672 492,500 CASH w /FISCAL AGT(ICLFA) 1,704,374 0 804 0 ENDING FUND BALANCE -------------------------------------------------------- 1,282,227 (163,228) 602,473 805,523 'ECIAL FUND (1976/86): BEGINNING FUND BALANCE 1,423,220 1,598,036 1,598,036 1,855,602 ESTIMATED REVENUES 84,316 90,000 80,000 76,000 ESTIMATED EXPENDITURES 526,608 532,257 532,257 .528,600 TRANSFERS 617,108 458,500 709,823 442,300 ENDING FUND BALANCE -------------------------------------------------------- 1,598 1,614,279 1,855,602 1,845,302 B1 ERVICE FUNDS: B INNING FUND BALANCE 1,430,477 1,844,367 1,844,367 1,063,111 ESTIMATED REVENUES 1,329 1,359,500 1,964,800 1,857,500 ESTIMATED EXPENDITURES 203,984 2,060 1,850,555 1,107,710 TRANSFERS (711,231) (458 (895,495) (817,800) ENDING FUND BALANCE -------------------------------------------------------- 1,844,367 684,467 1,063,117 995,107 --- ------- ---- ---- -- -° .%lMARY OF ALL FUNDS: BEGINNING FUND BALANCE 4,384,936 4,724,630 4,724,630 3,521,192 ESTIMATED REVENUES 3,640,190 3,039,500 2,106 1,981,400 ESTIMATED EXPENDITURES 5,004,870 5,628 3,310,442 1,973,660 TRANSFERS 0 0 0 0 CASH w /FISCAL .AGT (ICLFA) 1,704,374 0 804 0 ENDING FUND BALANCE -------------------------------------------------------- 4,724,630 2,135,518 3,521,192 3,528,932 • 0° A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY ADOPTING THE ANNUAL OPERATING BUDGET FOR F.Y. 1992 -93 WHEREAS, the Executive Director has submitted a proposed Annual Operating Budget for the Fiscal Year 1992 -93; and WHEREAS, the Agency has studied the proposed Budget and approved same; NOW, THEREFORE, the Lynwood Redevelopment Agency does hereby find, proclaim, order and resolve as follows: Section 1. The Annual Operating Budget for the Fiscal Year 1992 -93 is hereby approved and adopted. Section 2. During the upcoming fiscal year, the Executive Director or his designee is hereby authorized to approve any transfer between accounts, provided that: 1. They are within the same general groups of accounts (Personnel, Operations or Capitol Outlay); 2. They are being transferred to cover expenses of temporary personnel due to vacant positions; 3. They are within the same fund; 4. They do not exceed $10,00 per transfer. Section 3. To mitigate the effects of any reductions and allow the Agency to prioritize the use of funds provided, the City Manager is authorized to approve a one -time only transfer of funds between account groups and in excess of $10,000. Section 4. This resolution shall take effect immediately upon it's adoption. 1992. PASSED, APPROVED and ADOPTED THIS 21st day of July Louis Heine, Chairman ATTEST: Andrea L. Hooper, Secretary APPROVED AS TO FORM: City Attorney a NOTED AS TO CONTENT: Sol Blumenfeld, Acting Director of Community Development APPROVED AS TO CONTENT: taustin Gonzalez, interim City Manager Alfretta F. Earnest Director of Finance iR