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Home My Public Portal AboutA 1993-04-21 - CDBGA G E N D A COMMUNITY DEVELOPMENT BLOCK GRANT ADVISORY BOARD - COMMISSION REGULAR MEETING (PUBLIC HEARING) WEDNESDAY APRIL 21, 1993 6:00 P.M. LYNWOOD CITY HALL, 11330 BULLIS ROAD KEN WIBECAN CHAIRPERSON KENNETH ALFORD CONSTANCE FRANKLIN VICE CHAIRPERSON COMMISSIONER MARGARET ARAUJO CLAUDE LAW COMMISSIONER COMMISSIONER ANA VENTURA LAURA BYRD COMMISSIONER COMMISSIONER OPENING CEREMONIES: A. CALL TO ORDER B. FLAG SALUTE C. ROLL CALL D. CERTIFICATION OF AGENDA POSTING BY CITY CLERK E. APPROVAL OF MINUTES - APRIL 7, 1993 F. PUBLIC ORALS: (ITEMS ON AGENDA ONLY) G. NEW BUSINESS 1. PUBLIC HEARING (STATEMENT OF OBJECTIVES) 2. INFORMATIONAL ITEM (PRESENTATION BY SOL BLUMENFELD) H. STAFF ORALS I. BOARD ORALS J. ADJOURNMENT Adjourn to the next regularly scheduled meeting at 6:00 p.m. in the Council Chambers of Lynwood City Hall, 11330 Bullis Rd. Lynwood, CA. MINUTES OF A REGULAR MEETING COMMUNITY DEVELOPMENT BLOCK GRANT ADVISORY BOARD COMMISSION CITY OF LYNWOOD WEDNESDAY, APRIL 7, 1993 OPENING CEREMONIES A. CALL TO ORDER The regular meeting of the Community Development Block Grant Advisory Board Commission was called to order by Chairperson Wibecan, on the above captioned date at 6:08 p.m., in the Council Chambers of Lynwood City Hall, 11330 Bullis Road. B. FLAG SALUTE All those present participated in the flag salute. C. ROLL CALL Commissioner Wibecan requested the roll call, and Ms. Handley complied. Present: Chairperson Commissioner Commissioner Commissioner Commissioner Absent: Commissioner Commissioner Also Present: Ken Wibecan Constance Franklin Margaret Araujo Ana Ventura Laura Byrd Kenneth Alford Claude Law Chondra Handley, Minutes Clerk Scott Ehrlich, Housing Manager D. CERTIFICATION OF AGENDA POSTING BY CITY CLERK Ms. Handley stated that the agenda was posted per the Brown Act. E. APPROVAL OF MINUTES Motion was made by Commissioner Araujo, seconded by Commissioner Byrd to approve the minutes of March 3, 1993. F. PUBLIC ORALS NONE G. NEW BUSINESS 1. LOAN REVIEW COMMITTEE The Commission adjourned to closed session to discuss seven cases for loan review. Closed session opened at 6:15 p.m. tit .e u H. STAFF ORALS Staff informed the Commission of the Annual Poster Contest given by the Fair Housing Foundation. Ms. Handley stated that she would forward any additional information received from the Fair Housing Foundation. Ms. Handley informed the Commission that a meeting has been schedule for April 21, 1993 to approve the Statement of Objectives. I. BOARD ORALS It was requested by Commissioner Araujo that Mr. Frank Darmiento attend the meeting to give a brief presentation the proposed rental rehab project located at 12028 Long Beach Blvd. The Commission agreed to allow Mr. Darmiento to provide information and answer questions. Mr. Darmiento discussed his proposed renovating of the property which is to provide low income housing for qualifying persons. He also stated that there were 14 single apartments and two one bedroom units in the buildings. Mr. Araujo stated that the area is close to public transportation and the shopping center and it would be ideal for senior citizens. Mr. Darmiento stated that after renovation of the property a resident manager would be hired to insure upkeep. Commissioner Byrd asked Mr. Darmiento how much would the monthly rent be after renovation. He replied $225.00 - 350.00 per month. After brief discussion, the Commission thanked Mr. Darmiento for providing information on the proposed project. Commissioner Byrd requested to be excused from the next meeting in order to vote on the proposed Statement of Objectives. J. ADJOURNMENT MOTION by Commissioner Franklin. SECONDED by Commissioner Byrd to adjourn to the next regularly scheduled meeting of April 21, 1993. The meeting was adjourned at 7:35 p.m. DATE April 21, 1993 TO: COMMUNITY DEVELOPMENT BLOCK GRANT ADVISORY COMMITTEE FROM Laurence H. Adams Sr , City Manager BY Sol Blumenfeld, Director Community Development Dep ment SUBJECT ALLOCATION OF SECTION 108 FUNDING IN CONNECTION WITH PROPERTY ACQUISITION OF TWO PROPERTIES Purpose: To request that the Community Development Block Grant Advisory Committee recommend that the City Council approve a proposal to allocate the City's Community Development Block Grant (CDBG) Section 108 Loan Guarantee Funds in the acquisition of two properties with strategic importance to the City's redevelopment efforts and authorize staff to proceed with a request to allocate such funds through the Department of Housing and Urban Development. Facts: 1 On March 1, 1989, the City executed a Grant Agreement for a Section 108 Loan in the amount of $1,500,000 with the Department of Housing and Urban Development 2 The loan was approved by HUD with the intent, as indicated by the City at the time of application submission, that the funds would be loaned to the Lynwood Redevelopment Agency for the purpose of eliminating slums and blighted conditions by acquiring properties in the City's redevelopment area for resale to developers. 3 At the time of application submission and approval, approximately 3 years ago, no specific projects for the Section 108 Loan proceeds had been identified. 4 On February 11, 1992, the City Planning Commission granted West Coast Equity partners, owners of Central Electric, a Conditional Use Permit (CUP 105) to develop and operate a 77,000 square foot retail facility at the southwest intersection of Pendleton Avenue and Atlantic Avenue. 5 On June 2, 1992, the Agency directed Staff to pursue designation of the Central Plaza project as a Planned Commercial Development District (PCD No. 1) to permit master planning of 10 2 acres of commercial property. 6 On June 9, 1992, the City Planning Commission recommended the PCD No 1 designation of the Central Electric site and adjacent properties PCD No. 1, and on September 15, 1992, the City Council approved the PCD No. 1 designation subject to final approval of the project master plan. 7.. The project plans for Central Electric have been revised and several contracts relative to predevelopment studies for traffic, soils, relocation and real property negotiation must be initiated in order to complete predevelopment activities necessary for property acquisition and project redevelopment. 8. Lucky Stores, Inc. has determined that it will dispose of the Lucky Supermarket site and an offer to purchase is currently under consideration for the property by the Legaspi Company which is working with staff and the Central Electric owner on master planning issues for the property. 9 Prior to allocation of Section 108 Loan funds for proposed projects, it is necessary to submit an amendment to the program application to the Department of Housing and Urban Development for approval, subject to public review and approval by the City Council. 0 Analysis: 0 The City received approval for Section 108 funds in 1989 in order to advance economic development activity. The Section 108 funds haNre not been allocated for over three years. Redevelopment interest in the City has improved considerably and the prospects for accelerating redevelopment activity can be enhanced with the financial support provided from the Section 108 Loan Program which is necessary to ensure project implementation. The redevelopment project will fulfill the national objective of benefiting low and moderate income persons pursuant to Section 570 208 (a) (2) of HUD CDBG program guidelines relative to the following: Activities benefitting low and moderate income persons The redevelopment project will be used by the City's designated low /moderat& income census tracts. These census tract areas are: • Census Tract 5400 • Census Tract 5402 • Census Tract 5403 • Census Tract 5405 Job Generation Benefits The job generation benefits with the proposed project will provide numerous employment opportunities including: • Cashiers • Sales Clerks • Stock Clerks • Delivery Clerks • Security Personnel • Maintenance Personnel • Cooks • Waiters • Table Bussing Attendants • Parking Attendants • Service Personnel • Delivery Personnel In addition, short -term employment opportunities will be created in the construction field and in real estate leasing relative to the proposed retail center. The project will be developed in three phases. Under Phase One, 30 jobs will initially be generated. A total of 300 jobs will be generated by Phase Three of the project. (Please see Phasing Plan) Proposal: The City Council and City Planning Commission granted preliminary approval for designation of a two -block area along Atlantic Avenue as Planned Commercial Development District (PCD) No. 1. The first phase of the master - planned project is currently underway with development of Central Electric, a 70,0000 square foot furniture and appliance store located at the southwesterly PCD entrance at Pendleton Avenue. The first phase will include development of Central Electric and all related off -site improvements including entry wall signs and landscaping, special paving treatment, construction of a landscape median, and lighting and replacement of sidewalks along Pendleton Avenue within the limits of the project The second phase involves the construction feet of retail uses including shops and a vacated by Lucky Supermarket. Staff has master -plan and preliminary off -site constri of the project off -site improvements which cost $300,000. of up to 70,000 square restaurant on property completed the project action drawings for some have been estimated to 0 0 Concurrent with these developments, staff is recommending the acquisition and improvement of properties to the south of the Central Electric project in order to eliminate the blighting effects which these properties present to proposed development and to the community. Staff has commissioned appraisals for acquisition of adjacent property and is seeking City Council approval to allocate $695,000 for property acquisition and $838,000 for predevelopment costs (consultant, legal and relocation fees and environmental documentation) to assist with implementation of the project. A detailed cost estimate is attached. The Agency would hold the property as part of the master planned development and has no immediate plans for property disposition. If the Agency sold or leased the properties proposed for acquisition, it would be necessary to return the project income for Community Development Block Grant Title 1 eligible uses. The City is currently paying back the Section 108 Loan Guarantee funds over a five year repayment schedule Recommendation: Staff respectfully requests that after completing the Public Hearing and upon due consideration, the Housing and Community Development Block Grant Advisory Committee approve the attached resolution recommend approval of the subject request authorizing staff to proceed with processing an application to utilize HUD Section 108 funds in connection with property acquisition and predevelopment activities for properties adjacent to the Central Electric development project. Attachments: 1. Resolution 2. Acquisition Location Map 3. Preliminary Master Plan 4. Concept Entry Design 5. Cost Estimate 'ar seC1n8bg \041293 \sf a r 0 RESOLUTION NO. A RESOLUTION OF THE HOUSING AND COMMUNITY DEVELOPMENT BLOCK GRANT ADVISORY COMMITTEE OF THE CITY OF LYNWOOD APPROVING THE AMENDMENT TO THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SECTION 108 LOAN GUARANTEE FUND APPLICATION FOR PROJECTED USE OF FUNDS FOR THE 1992 -93 PROGRAM YEAR WHEREAS, on March 1, 1989, the City executed a Grant Agreement for the Section 108 Loan Program in the amount of $1,500,000 with the Department of Housing and Urban Development; and WHEREAS, the loan was approved by HUD with the intent, as indicated b_ the City at the time of application submission, that the funds would be loaned to the Lynwood Redevelopment Agency for the purpose of eliminating slums and blighted conditions by acquiring properties in the City's redevelopment area for resale to developers; and WHEREAS, at the time of application submission and approval, approximately four years ago, no specific projects for the Section 108 Loan proceeds had been identified; and WHEREAS, on February 11, 1992, the City Planning Commission granted West Coast Equity partners, owners of Central Electric, a Conditional Use Permit (CUP 105) to develop and operate a 77,000 square foot retail facility at the southwest intersection of Pendleton Avenue and Atlantic Avenue; and WHEREAS, on June 9, 1992, the City Planning Commission recommended the designation of the Central Electric site and adjacent properties PCD No 1, and on September 15, 1992, the City Council approved the PCD No 1 designation subject to final approval of the project master plan; and WHEREAS, pursuant to CDBG guidelines, prior to allocation of Section 108 Loan funds for proposed projects, a public hearing was conducted on the matter by the Housing and Community Development Block Grant Advisory Committee; and WHEREAS, staff has commissioned appraisals for acquisition of adjacent property and is seeking approval to allocate $695,000 for property acquisition and $838,000 for predevelopment costs (consultant, legal and relocation fees and environmental documentatiun) to assist with implementation of the project; and WHEREAS, the City is currently paying back the Section 108 Loan Guarantee funds over a five year repayment schedule; and funds must be allocated prior to the end of the fiscal year NOW, THEREFOPE, the Community Development Block Chant Advisory Committee of the City of Lynwood does hereby find, determine, order and resolve as follows Section 1. Approve and adopt the attached resolution recommending City Council approval of the amendment to the Community Development Block Grant (CDBG) Section 108 Loan Guarentee Fund application for projected use of funds for the 1992 -93 program year. Section 2. This resolution shall become effective immediately upon its adoption PASSED, APPROVED and ADOPTED this ` day of 1993. Ken Wibecan, Chairperson Community Development Block Grant and Advisory Committee APPROVED AS TO CONTENT: Sol Blumenfeld, Director Community Development Director yin 3 80 1984 -- aCT NO 11911 M. B. 219 -47 -48 • CT NO 5103 M 8 53 -55 J W 6O F CODE 6089 6081 ._ .. FOR PREY ASS"'( SFE 000_ oF; 0. 33 L, HWY ° DOWNEY & HELLMAN TRACT z F- M R. 3 -31 J lbUYU. 2 Jj /j r - Y. o 6;0""200 X 4"924 Q09//10/ l _ 691060/ 1463: j + -, 04 B /OIPO R �,� JQO.q /0 •� / /1 B< C3 Acquisition Sites AISFSSOR'S MGP COUNTY OF LOS ANGELES, CALIF E N, e CENTRAL PLAZA- RETAIL CENTER Main Entry Cross Section Scale: 3 /8" ') LYNWOOD REDEVELOPMENT AGENCY A3N30V MMOIAAMM OOOMNAI 31VAON3H 01 ONIISIX3 3115 NOLLISHImV Z 3SVHd . l 3SVHd • 0 3 Z 0 L CENTRAL PLAZA- RETAIL CENTER 4a"trc grans m _ s MAIN ENTRV DETAIL < Scale. 1'= 10' -0' v al 's� fJ ..�...............m.... ....�.. �.... �.a... PLANNED COMMERCIAL Scale: r= 30• -0' DEVELOPMENT DISTRICT September 1, 1992 a N LYNWOOD REDEVELOPMENT AGENCY p PARKING. RepWred 534 PmAd.a 617 v 0 ° o 1 L 0 1MU SIe7_IOU Jul Date To From Subject: March 30, 1993 Laurence Adams, City Manager Sol Blumenfeld, Director Community Development Department Revised Cost Estimate for Central Plaza Redevelopment Consultant Services The following provides a list of anticipated predevelopment costs for consultant services associated with the development of Central Plaza. The cost estimates have been prepared from recent proposals from the following consultants: -Joint Cutler & Associates -Metropolitan Appraisals -Ron Lurain & Associates -Harris Associates -Pacific Relocation Consultants -Hams Guuux & Associates -Kane, Ballmer & Berkman •DKS Associates Total Flat Fee Bid Real Property Acquisition Furniture & Equip. Appraisal(4325 Imperial Highway) Appraisal (10925 Atlantic Ave.) Relocation (Business) Phase One Soils Study Condemnation (Assume One) Traffic Study N $14,500 $ 4,800 $ 2,900 $ 2,500 $14,000 $ 3,200 $20,000 $12,460 $74,360 MEMORANDUM Date April 6. 1993 To Laurence Adams, City Manager From Sol Blumenfeld, Director Conununrty Development Department Subject. Revised Cost Estimate for Predevelopment Services and Other Costs Related to Central Plaza Redevelopment Project J he t'ollowing summarizes revised predevelopment costs for implementation of the Central Plaza Project: Item Cost ropcnc ACLILBSui011 •Dricsfinc Properly $ 250,000 -Welding School Property $ 445,000 *" Relocation (Estunated Exposure) $ 600,000 Utilit} Relocatton/Undergroundin; (300 fin. It. cm S100 p /ft.) $ 30,000 Con Fees $ 61,900 Sub Toud $1,393,700 Other Costa (Allow IWC $ 139,370 Total $1,533,070 Appraisal Completed 1/20/93 Includes leasehold interests as cost projections over the remaining lease (no leasehold analysis) it y