HomeMy Public PortalAboutA1992-06-16 LRA0 9
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
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LYNWOOD REDEVELOPMENT AGENCY
June 16, 1992
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RECEIVED
CITY OF LYNWOOU
CITY CLERKS OFFICE
JUN 11 1992
AM PM
7181911011102i 1121 3141516
REGULAR MEETING �J /
7:30 P.M. 4Lefi�it.0�'`
LYNWOOD CITY HALL. 11330 BU LLIS ROA /I
LOUIS J 'HEINE
CHAIRMAN
PAUL RICHARDS
VICE CHAIRMAN
ARMANDO REA
MEMBER
INTERIM 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
Regular Meeting of May 19, 1992
LOUIS BYRD
MEMBER
EVELYN WELLS
MEMBER
AGENCY COUNSEL
HENRY BARBOSA
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 PROPOSED USE OF PROJECT TAX INCREMENT TO FUND THE COST OF OFF -
SITE IMPROVEMENTS FOR A RETAIL REDEVELOPMENT PROJECT IN
REDEVELOPMENT PROJECT AREA "A" LOCATED AT 9910 LONG BEACH
BOULEVARD.
Comments:
To request Agency financial assistance through the use of project tax increment to fund
50% of project off -site improvements (maximum $21,000.00) for Lynwood Gateway, a
retail redevelopment project located at 9910 Long Beach Boulevard. In order to defray
development costs relative to subject project off -site improvement costs, staff is requesting
that the Agency reimburse up to 60% of project tax increment generated by the
development to fund a maximum of 50% of the off -site improvement costs in an amount
not to exceed $21,000.00.
Recommendation:
Staff respectfully requests that the Agency, after consideration of the foregoing, approve
Etco's request for financial assistance to cover up to 50% of the cost of off -site
improvements utilizing 60% of the project tax increment generated in order to defray
development costs pursuant to Section 33421 of California Redevelopment Law.
4 INVESTMENT POLICY
Comments:
To have the Agency review, receive and file the attached investment policy
Recommendation:
It is recommended that the Agency receive and file the attached investment policy
INFORMATIONAL ITEMS ONLY
NONE
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 July 7, 1992,
at 7.30 p.m. in the Council Chambers of City Hall, 11330 Bullis Road, Lynwood, California.
wp\ Lran'r \sf
2
REGULAR MEETING MAY 19, 1992
The Redevelopment Agency of the City of Lynwood met in a regular
session in the City Hall, 11330 Bullis Road, on the above date at
8:lla.m.
Chairman Heine in the chair.
Members Byrd, Rea, Richards, Wells, Heine, answered the roll
call.
Also present was Interim Executive Director Gonzales, General
Counsel Barbosa, Secretary Hooper, and Treasurer Pygatt.
Secretary Hooper announced the agenda had been duly posted in
accordance with The Brown Act.
PUBLIC ORAL COMMUNICATIONS - AGENDA ITEMS ONLY:
Hearing no response, public oral communications was closed.
IRA RESOLUTION NO. 92 -12 ENTITLED: ^A RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD APPROVING THE DEMANDS
1 AND WARRANTS THEREFOR." WAS PRESENTED.
It was moved by Mr. Rea, seconded by Mr. Byrd to adopt the
resolution.
ROLL CALL:
AYES: . MEMBERS BYRD, REA, RICHARDS, WELLS, HEINE
NOES: NONE
ABSENT: NONE
There was no further business and it was moved by Mr. Richards,
seconded by Mrs. Wells and carried, to adjourn.
CHAIRMAN
SECRETARY
1
a
U'F T f 'H �; I I,Pn
PE r.,Ul U l ON OF l IF PLZE 71 -UPPIENT AG E;!C GT= THE C 1 OF L'�NWOOD
I.YNWOJr CALIFORNIA , LOWING 4Nil oAPPROVIN; THC DEMANDS ARID ORDERING
WARRANT' THrPEFUr
The F' r�eeelopmant Agency of the City of Lynwood does hereby resolve as follows
e tTo *1 1 That the demands presented, having been regularly audited, are hereby allowed and
approves, and that oar r;nrts ordered drawn the by the Agency Tre?sure to the payee and in the amounts indicated
WAPFAHFd GAT- PA /EE DESC
302
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356'1
35r.�
356`
3567
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3569
3570
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SE( URITY PA.( NAT [SANK
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I - L Ci iF 11YER" PHLi[)n
kM: f11- LIS COREN ' A=.SOC INC
Ot•E WOO EPA= INr_EEP1Nr
EASTMAN KODAK CO
EASTMAN P.ODAK r0
File^ 1- :;APh41C°
,,,',HE . ^,ALLMEP , hERKMAN
N- %TIr!WAl 'Cut." IL r -OP VR;i AI!
=.r {CRFTAPY CUFr "F_E SERVICE
TIME+ Y TEMPORARY
TAX INCR TRSF TO FISC AGENT
DEPT SERVICE PAYMENTS /ICLFA
KELLY PROPERTY tLAWSLIIT)
PROFESSIONAL SVCS
ASBESTOS INSPECTION
MONO BLACK TONER
MAINT AGREEP1ENT
GRAPHIC SUPPLIES
LEGAL SVCS
ANNUAL_ DUES
COFFEE SVrS
TEMPOPARY HELP
*n TOTAL
AMOUNT
0 00
215,341 97
2 , 305 00
23, 608 97
17, 543. 30
500 00
111 31
101 74
112 47
1, 233 78
595 00
36 00
2. 303 25
58 ?,792 79
AREA A
215,341 97
322,305 00
23, 608.97
8,771 65
500 00
55 65
50 87
56 24
1,058 91
297 50
18 00
1,151 63
573 216 39
,! 2 Them the Agency Secretary shall certify to the adoption of the resolution and shall
d111VI a Certified coOj to the Agency Treasule and shall retain a copu thereof for the record
AFPRCV @D AND ADOPTED THE
AT`-
IARY
day of
1992
L.OVIS
TIE
CHAIRMAN, Lynwood Redevelopment Agency
ALAMEDA
0 00
O 00
O 00
8,771 65
O 00
55 66
50 87
56 23
174 87
297 50
18 00
1.151 62
10, 576 40
•
DATE: June 16, 1992
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY
FROM: Faustin Gonzales, Interim City Manager
BY: Sol Blumenfeld, Acting Director
Community Development Department
SUBJECT: PROPOSED USE OF PROJECT TAX INCREMENT TO FUND THE COST OF OFF-
` SITE IMPROVEMENTS FOR A RETAIL REDEVELOPMENT PROJECT IN
REDEVELOPMENT PROJECT AREA "A" LOCATED AT 9910 LONG BEACH
BOULEVARD.
Purpose:
To request Agency financial assistance through the use of project tax increment to fund 50% of
project off -site improvements (maximum $21,000.00) for Lynwood Gateway, a retail redevelopment
project located at 9910 Long Beach Boulevard. In order to defray development costs relative to
subject project off -site improvement costs, staff is requesting that the Agency reimburse up to 60%
of project tax increment generated by the development to fund a maximum of 50% of the off -site
improvement costs in an amount not to exceed $21,000.00
Facts:
1. On January 6, 1989, the Site Plan Review Committee approved Etco's application to develop a
small shopping center at 9910 Long Beach Boulevard, with certain conditions. More specifically,
one such requirement was to consolidate the adjacent lots of the subject property.
2. On February 14,1989, Etco received approval for a Tentative Parcel Map (TPM) by the Lynwood
Planning Commission to consolidate three parcels into one at 9910 Long Beach Blvd.
3. On February 7, 1991, the project developer, Mr. Farouk Keyvan, met with staff to discuss his
request. At the meeting, Mr. Keyvan informed staff that the construction cost estimate for off -
site improvements required and compiled by the City's Public Works Department, would
amount to $42,000. In order to defray the cost, partially, Mr. Keyvan is seeking assistance from
the Agency to cover half of the off -site construction expense.
4. On February 19, 1991, staff sent Mr. Keyvan a letter requesting more detailed information along
with a copy of Proforma Analysis for the purpose of evaluating the merits of the request for
financial assistance.
5. Mr. Keyvan's submitted Plan Check has been approved by both the Building Division and
Public Works.
Background:
On June 2, 1992, the Agency reviewed the matter and recommended that Staff study the matter
further and provide new information on sales tax and tax increment projections for the project.
Pursuant to this request, Staff is providing the attached tax projection revisions.
Anticipated Annual
Tax Increment:
$8,700
Proposed 60%
Rebate:
$5,220 P /Yr.
AGENDA ITEPd
Total Term for Tax Increment Rebate: $21,000 = 4 Years 3
$ 5,220
It will possible to rebate the off -site improvement costs in approximately 4 years utilizing 60 % of
the projected tax increment generated.
Analysis:
The projected annual tax increment generated for the subject project is $8700. This amount is
based upon the difference between the improved value of the site and the value of the site under
the previous owner.
$707,000 Improved Value of the Site
102,000 Previous Value of the Site
$605,000 New Taxable Value of the Site
$605,000 X 1.442 (City tax rate) = $8,724 ( +) ( -)
In addition, the current owner has owned and paid property taxes on the subject property for three
years and the site has generated approximately $8,000 in additional tax revenue for the City.
$291,000 Current Tax Revenues (unimproved site)
102,000 Previous Value of Site
$189,000 Additional Tax Revenue
$189,000 X 1.442 (City tax rate) = $2,725 (+) ( -)
Given the economic recession and the fact that Agency participation will not require out -of- pocket
cash contributions, staff believes the proposed Resolution deserves Agency's consideration. The
project will basically pay for itself. The projected annual tax increment to be generated is $8,700,
60% of which equals $5,200. Consequently, it is expected that 50 % of the off -site improvements
can be paid for in approximately 4 years.
Recommendation:
Staff respectfully requests that the Agency, after consideration of the foregoing, approve Etco's
request for financial assistance to cover up to 50% of the cost of off -site improvements utilizing
60% of the project tax increment generated in order to defray development costs pursuant to
Section 33421 of- California Redevelopment Law.
wF \etc - `,1152692 \ef
LRA RESOLUTION NO. 92- 16
A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY
( "THE AGENCY") APPROVING A REQUEST
FROM ETCO CONSTRUCTION COMPANY
FOR FINANCIAL ASSISTANCE
WHEREAS, Farrouk Keyvan, President of Etco Construction, has obtained
approval to develop a retail center at 9910 Long Beach Boulevard; and
WHEREAS, Farrouk Keyvan submitted a request to staff for the purpose of
receiving financial assistance from the Agency to develop the project, and
WHEREAS, an evaluation of the project financing indicates that Agency
financial assistance is required in order to facilitate project development; and
WHEREAS, particularly in a time of economic recession, the Lynwood
Redevelopment Agency wishes to support and facilitate development in Lynwood;
and
WHEREAS, the method of Agency participation does not require up- front "out -
of- pocket" cash participation; and
WHEREAS, the Public Works Director has established that the cost of the off -
site improvements will not exceed $42,000.00 (see attachment);
NOW, THEREFORE, the Lynwood Redevelopment Agency does hereby resolve
as follows:
Section 1. The Agency will contribute 50% of the project off -site improvements
in an amount not to exceed $21,000.00. (60% of annual tax increment generated from
the project.)
Section 2. This resolution shall go into effect immediately upon its adoption.
APPROVED AND ADOPTED by the Lynwood Redevelopment Agency this
16th day of June, 1992.
LOUIS J. HEINE, CHAIRMAN
Lynwood Redevelopment Agency
ATTEST:
Andrea L. Hooper, Secretary
APPROVED AS TO FORM:
Henry S. Barbosa
Agency Special Counsel
APPROVED AS TO CONTENT:
Sol Blumenfeld, Acting Director
Community Development Department
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DATE: February 5, 1991
TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS
FROM: Iris Pygatt, Treasurer
SUBJECT: INVESTMENT POLICY
OBJECTIVE:
To have the Agency review, receive and file the attached
investment policy.
FACTS:
The statement is intended to provide guidelines for the prudent
investment of the Agency's temporary idle cash, and is submitted
annually for Agency review. The policy contains information on:
1. Types of investments
2. Criteria for selecting investments
3. Strategies used in making investments
4. Maturities of investments
The following is a brief description of the various securities
and other investments referred to in the policy:
1. Securities of the U.S. Government or its aaencies:
These include Treasury Bills, Notes and Bonds. It also includes
securities of agencies of the government, such as Ginnie Maes and
SBAs. We avoid securities of a long -term (10 years or more)
nature, and invest in securities with short and medium maturities
(3 months to 3 years).
2. Certificate of Deposit: A portion of our investments
are in insured certificates with various banks and savings and
loan associations.
3. Bankers Acceptances: These are typically created from a
letter of credit issued in a foreign trade transaction. The
Agency does not currently have any investments in Bankers
Acceptances.
4. Negotiable Certificates of Deposit: These are
certificates of deposit that can be sold in the secondary market
prior to maturity.
5. Repurchase Agreements: These are short -term investments
(2 -5 days typically) in which the Agency purchases securities
from a bank and the bank agrees to repurchase the securities at
the same price (plus interest) on a mutually agreed date. The
Agency does not currently have any repurchase agreements because
of the problems relating to delivery of the securities as
required by law.
6. Local Agency Investments Fund (LAIF): This is the state
pool in which investments are made by the Treasurer's Office of
the State of California. The funds are highly liquid and can be
withdrawn on one's day's notice. The yield from this fund has
been comparable to the yield on CDs this past year.
7. Los Angeles County Treasury Pool: This is a Pooled
Investment Fund established by the County in which cities and
other public agencies may participate. It is similar to the
State Pool.
8. Savings Accounts: Savings accounts allow us to transfer
money from checking to savings and earn short term interest on
funds which are not available for longer investment.
It is recommended that the Agency receive and file the attached
investment policy.
AGZNDA ITEM.
FA
STATEMENT OF INVESTMENT POLICY
The Lynwood Redevelopment Agency places its pooled idle cash
investments which are prudent and allowable under current
legislatiion of the State of California.
The Agency strives to maintain the level of investment of all
idle funds, less required reserve, through daily and projected
cash flow determinations. Idle cash management and investment
transactions are the responsibility of the Treasurer and
investments may be made in the following:
Securities of the U.S. Government or its agencies
Certificates of Deposit (or Time Deposits) placed with
commercial banks and savings and loan associations
Bankers Acceptances
Negotiable Certificates of Deposit
Repurchase Agreements
Passbook Savings Account demand deposits
Local Agency Investment Fund (State Pool)
Los Angeles County Treasury Pool
Criteria for selecting investments and the order of priority are:
1. Safety
2. Liquidity
3. Yield
Government and agency paper are the highest quality investments
available, in terms of safety and liquidity. Only certificates
of deposit, savings accounts and bankers acceptances that are
insured or collateralized are utilized.
Most investments ate highly liquid, with the exception of
collateralized certificates of deposit held by banks and savings
and loans. Maturities are selected to anticipate cash needs,
thereby obviating the need for forced liquidation.
The Agency attempts to obtain the highest yield when selecting
investments, provided that criteria for safety and liquidation
are met. Ordinarily, because investments carry a positive yield
curve (i.e., longer term rates are higher than shorter
maturities), the Agency attempts to ladder its maturities to meet
anticipated cash needs in such a way that new investment money
can be placed in maturities that carry a higher rate than is
available in the extremely short market of 30 days or under.
The Agency operates its investment pool with many state and
self- imposed constraints. It does not buy stocks: it does not
speculate; it does not deal in futures or options; it does not
deal in commercial paper or reverse repurchase agreements. The
portfolio is carefully monitored to assure the prudent management
of the portfolio.
The major portion of the Agency's portfolio is kept in
investments with maturities of one year or less. Longer term
investments are allowable, but generally do not exceed 15% of the
portfolio.
The cash management system of the Agency is designed to monitor
and forecast expenditures and revenues, thus insuring the
investments of monies to the fullest extent possible.
The basic premise underlying the Agency's investment philosophy
is to ensure the safety of the funds and to assure that money is
always available when needed.