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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 1weIw►[If7.1 LYNWOOD REDEVELOPMENT AGENCY June 16, 1992 pd! iC 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 3q _: 356'1 35r.� 356` 3567 .3568 3569 3570 -9.1 06 -16 u2 06- 1 .- -„ SE( URITY PA.( NAT [SANK I I T f F)r I_Yr!WCf)D 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 wp3 \eU,oreso \040491`,sf 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.