HomeMy Public PortalAboutA 1990-10-31 LYNWOOD LOCAL DEVELOPMENT COMPANYLYNWOOD LOCAL DEVELOPMENT COMPANY
Wednesday, October 31, 1990
3:00 p.m.
City Council Chambers
Lynwood City Hall
11330 Bullis Road
Lynwood, CA. 90262
BERNARD LAKE
SECRETARY - TREASURER
CELIA ARROYO
MEMBER
HARRY PRINS
MEMBER
I. OPENING CEREMONIES:
A. CALL TO ORDER
1. Flag Salute
2. Roll Call
B. Certification of Agenda Posting
II. APPROVAL OF MINUTES - August 29, 1990
III. ITEMS FOR CONSIDERATION:
A. COASTAL WAREHOUSE FUNDING REQUEST
I RE EIVED I
CITY OF LYNWOOD
CITY CLERKS OFFICE
OCT 3019
AM PM
7 1
A
W 12j;
A- �Z.
LEIGHTON HULL
PRESIDENT
ROBERT HERERRA
VICE - PRESIDENT
B. REPORT ON THE STATUS OF REQUEST MADE BY LYNWOOD
PHYSICAL THERAPY FOR FINANCIAL ASSISTANCE
REQUEST FOR FINANCIAL ASSISTANCE
Background:
On May 21, 1990, an application was submitted for a
small Business Assistance Development loan (BDA) by Mr.
Hans Austed the President of Coastal warehouse. The
subject company has recently relocated to the City of
Lynwood and is presently in operation at 11854 South
Alameda Street, in the City of Lynwood.
The above request has been evaluated by both Economic
Development Division and the Security Pacific Bank as
to determine eligibility and credit worthiness. Staff
was notified by the Security Pacific Bank on Friday
October 26, 1990, via telephone, that the said request
has been approved for a loan.
PUrpQ*Q .o_E_1unding._Rcc1uC t:-
A review of the Business Plan submitted by Coastal on
May 21, 1990 states that the proceeds of the loan is
intended to supplement a portion of the following
expenditures:
1. Purchase of Custom Bonded Cage
2. Purchase of Camera/ Surveillance System
3. Purchase of Telephone /Computer lines
Analysis:
The said request for financial assistance, as stated in
the Coastal Is Business Plan, meets the T,TDC's
eligibility guidelines. however, in the course of a
telephone conversation with a representative of Coastal
on Thruaday, October 25, 1990, it was stated that the
loan proceeds is earmarked to pay -off a business loan
which is to fall due shortly. If indeed this is the
case, then, the intended use of the fund proceeds
differs from the the stated plan, and as such, is
disallowed under the LLDC'S eligibility guidelines.
Recommendation:
It is recommended that the Board members, after
consideration of facts, render a decision on the request
for grant of a business loan in the amount of twenty
($20,000.00) thousand Dollars to be extended for a
period of five years.
B. DENIAL OF LYNWOOD PHYSICAL THERAPY'S FUNDING REQUEST BY
SECURITY PACIFIC BANK
Background:
Staff was informed by Security Pacific Bank that request
for a BDA loan made by the above - mentioned had been
denied. The decision appears to be based upon the
following:
(1) Extensive operating losses as reported
for two consecutive years
(2) Lack of credit worthiness
Following this recommendation, on September 20, 1990,
Lynwood Physical Therapy was informed in writing to the
same effect.
Pursuant to the advise made to staff by a board member,
this matter, therefore, is hereby placed on the agenda
for consideration by the Board members.
0
C. WARRANT REGISTER
None.
L
IV. STAFF ORALS
A. Staff is prepared to offer comments regarding items " A "
and "B," above.
V. STAFF REPORTS:
Photocopies of pertinent printed documents and
information attached, herein.
VII. BOARD ORALS:
VIII. ADJOURNMENT:
With no additional matters for consideration,
adjournment to the next scheduled meeting of November
28, 1990.
COASTAL WAREHOUSE .
675W MANVILLE COMPTON, CA. 90220 (213) 638-5656
/`i/y v[ Lunmood
||r. C|or"nce P. Williams
Ho./vi./1 & Community Development Mananer
CiW||,`])
1|A to K" 1lis Road
Lqo.^oud, CA. =62
, /p`/ Hr. Williams
'mr rnwva``,, Coastal Wnrchoose Cn,;or..|pion` ".i|| he n.uvi/w
t v'``., finz ciQ during the m"mL|. "P M*u. [}op but|dinn
w|/jc|/ we are relocating to is at 11854 A}ampda shre" and
nor/`nI vacant.
ar'ept this as our request for F(.p Financial
A'-)q|/`nc'` Program. The cost or moving and v/r|`arjng |hp
vru o..i|dio] for occupancy is much hiq|/rr than nripioalK
.`"iiki'oknd. The transportation cns|m alone OP UP
mnj /|/ 'n'}isn in our warehouse is now estimated to be betu/p' ``
1.`5,()[|D a $30`000, the bondpd Ln40 Uur 49.UUU svonre [-e/
/.( Cu' t'm`'� ]tun Ile d merchandisp mill coo I: over $Z8, 00% F(`r
LnmYI0/Uo`veu1ance sUstem is antjLinOh"d 4 0 p (leeU $/,DUU
an'| F|/e |e1ephooe/computer lines will cost ovcr $112UU- ||."
Fupq o[ Fkese costq equal from $b},//)D to $b6`7U(}.
Addi|j'»"ai|U` in order to uhiaio K|." b"I|'1inS, we de\ivcr'V
i' I |.c |oxdlord a c|ad' For M09, 5"U- ]his |v,'/c sum W131
`, I scriuuq cash [low dray no our uuwmow hn many w"x'`|.o
|n /'`o/r� [inaxciaL assiqtaoce in tixO lu,m DO .` "W^ in p|/r
, :�no n ( q, C), 000 or more' wjll yrpa|]U asq|st |/n cur rcn1:
ana|/(|nw problems.
At|n'|/"d plpase find additional information rclatinq to "///
,("w`oo/., +hc poop le and p Ian In POP the fu/"rr. If 4ou |.pvp
'"o}/ 'v/'`� |ions or coowpxUs, plrpoc [p"l (roc Fu contoc| me.
ont/ .,ssjs,anrp muoid be 'Pz^`| |u o,prprinPed.
Kincrrelu Yours`
A�4e��
H?v`s A'/stsd
President.
0
III
COASTAL WAREHOUSE CO.
675 W. MANVILLE COMPTON, CA. 90220 (213) 636 -5656
TA0'ch 11. War PhOUGe COI " PC) r'al :iell i , (,ul renl'It; lLrcaI:rrd .a I.
I: I•Ianvi3lP in the city of Comp tan. Effr >f ti, ve June 1,
I. I -lu w.iII be relocating to a leca T, rd r'roVCrrtl a r 118_4
A:In c;Lrrget in I :Ie CiY_y of I_yI1wCICrCI. nin^ Cnml i a
fu 1, 1 vic'r public.: war•Pl,ouau which IP ,I.IITIILieE; sLlLli servi.rI
.rn .I'IIII ;al I1 [lnn,esi :iI sturcu9o, "r r• arLS;JuakIinq, Cu1)suIidaled
I' dr:w"Inning and lmporUE. pot F,
, .Ial t 4 1 r I ! I I n u -, f2 Q.tI urnlJuII w_I., r'I.0 °cJ a h!1 3
"Ilii "I r I '1 i.I1 .I''D(.I.i, AF Ih;tl. I_l p.mI I,oII hr: II in
rn'I`r'nl'IUn I'LU^ ;cvr -`n guars; unt1Gl li'., nano III (:un`II t I !3njI
on c_`, Sine :'e FIlal_ I- in,e, Cllr I_c)1Iir0n ha 5 gl "Ubn1 (runt r
worrhuu of 6('],000 square feri and ,al u:: rIf S /,fI0,C1f)0 per
'1 ^•'r' <::{ f1(:)(.l sttl.lare feel: and 5.11er1 of TI.B mi I,lion 'h 1,I
nv.`I,I, ,' n ^I cln L!1 vf.trruII hui,1.111 , in 1. III( u.rd I,,A.i I „',I,II(HI
i:; Ir °r fl'`r I:tII(A is ar•I "an()I'd h atl h)III Ing11 PI`f i.I i.en I( nl
.i11 rm11" =(pace. aiId superior IaITur tIFi1.i._nI Coal -,tat e "I
IIa.:; fit' 1 : right of ref ft:u'• all addlti.cul I, "Ell.11'I srn.lar(
fev . to the building for f�I_It , .11nwth. .It i5
and iI- il'•:flyd that this additional sgLJWP Pur :rharFn will be
nt:�c`rla d Mid U IP option e..ercized J.n to 4 !_n'a,irs.
'IIit= Pr. r_,c >.ident, Hang; Austad, at7a '. ha =; bee=n active(( -
I
i nvul; `d iii 111-Abl.ir_' warehol.IS.in9 /c.li e; i'r'i bLl ti on for'
,'1P pr•,1 ilnl l :t:., 1.! - 21 years and rui rc2u I. 1,J L1UIf15 Lfl11 "alp i. 111 ^nr;I �, 1.11
I'I,I t -, h oI" I"F` a 1: e d CO It I pan i. es. 1`11' At 15; i :_,d I-ul I 1 "E ?n I a 1111 r;
of I: h. rr_nor`any and provides IU0" /. of I I ics ra =r vice to the
CUln r'Clll� 1.
Il,c - - Vi.r'P president of Sttlrm, Hr. Frolik !.1t'r IM
It 1 ,1c; ,tl''1''ra ilrl,=Ie.ly 1f, l,FC,u s of w u I - 111!;i it I tlI ;
(f „ It'll , ( . 1. Hr. !) II,:1!::;, in I_hr= I`. ol IJ n
! I:PIIUIII !3iCL2 fur 5 t,lr),' it” IF, . IA. rcIt rn Iwn 1''i% of
I :ill'` Dahl'• ^nt:1 an (I pr Ovl de'3 1. ULJ7. of II) rl r)PI'Virn I :r} tIIr= GC1fOpr
Ili Vir :e Prc.-sident of uF)E)rai Ifi °. Rr)I)I'1't Bl r -lyf
j 6�•, h•: orrrro ima'tely ::6 years (.)f "ern thc- fI our
" hFal "n11oLF6e
c perienGe and has hpprl hFi 1 :II Elio r
L: kit n ;, lie= CLn "1 °enl:ly Ohn15 30% of I he cont'•:ul!d and pro" ides,
! 1.F 1(17.. 1 1 f I 1. s:, E;erv.ice to I:tica Cnn,F)an -y.
I ,r CI'Iief Financial ifffi.cor•, Prh ". 51 :c III ar:3e
,.34, h 1 cm inintely 13 years of financ.i.tt u' pi rand
Is .lit "IT ,Pd b_y the state of Cali f-Orni.a E! "I a Cer•I:ifiud Pub 1.1
Af. f. :!nftn l'nn t.
E1
9
LYNWOOD LOCAL UL'VL'LO1'M C OMC'ANY
BUSINESS DEVELOPMENT ASSISTANCE. PROGRAM
SI;ItV L 1 1 ItI;c uvJ ;'I' EUItM
Date: May 21, 1990
Contact Person',
Business Name:_
Address'
Phone Number:_
11nna Analn rl
Check One
Phone -in ( ) walk -in (
Coastal Warchous
11854 Almelo, Lynwo
2131 638 -5656
Proposed Use of Funds
Custom Bonded Cage $28,000
Camera / Surveylance System $7 500
Telephone /Computer lines $1,200
Cost of relocation of 125,000 sul f between $ 25 000 a X3 0,000
'total Costs between $61,700 F, $66,700
Referred Lo:
BY:
Name
Title
bdapsrf
• 1 •
.014 Lynwood Local Development Company
M 11330 BULLIS ROAD LYNWOOD, CALIFORNIA 90262 603 -0220
September 20, 1990
Mr. Randolph Ice
3737 Century Blvd., W100
Lynwood, CA 90262
Dear Mr. Ice:
The hu1'po!:11 (.)f Hlh; Inl'.I' i t"o inl'ol'm y()Ii 1)1' t:h1 :.f ;lfun yriui
appl icr,ll:i()l l.
We were advised by Security Pacific Bank that your application
for Business Assistance Development Program was not approved by
the latter. This is due, according to the Bank, to "insufficient
income" as reported on your financial statements. Enclosed,
please find a copy of the evaluation which was submitted to us.
We wish you continued success in pursuit of your entrepreneurial
activities in the City of Lynwood.
Please, do not hesitate to contact me if you have any Lurthel:
questions.
sincerely,
Kenrick Karefa- Johnson
Director of Community Development
By: Shane F. Moshiri
Economic Development Specialist
9
Vag
a a qh4
^ Gi V frj,. •
P
Murphy, Murphy
Certified Public
4281 l.atella Avu.
•'rc Los Alomai"s,
Lynwood Physical Thor;_it Y
3727 Century blvd., 111v
Lynwood, Cif 9 "„
& Murphy
Accountants
, Suite 201
CA 90720
February 1, lV9v
We have comptlWd QU hnlOnLU ::hut_t ui
Lynwood f'hys Lca l Ther an u P Uocumhur '_ L , 1009 and Lh,'
related statemtenin of Por n.ingu and r uLained earnings for the
period then endon , in ai knr d uicr wi Lh ntn"dor do wo l .alr l a' hpd
by thi.' Anii'i .h ;tii lu!, l i liu" i'1 I i•i I i I.ii'il I'uhl i( i•t i. uiuil. uil• .
•f �
A Lumpiln Lion i•_ A im i, L, ( ) In'i ^,en L, nr] in Lhm Inr ni 0
financial statemu'ILs iniurmat.iun that is the represent_,Liun
of management. We have not audited or reviewed the
accompanying Financial Statements and, accordingly, do not
express an opinion or any other form or assurance on them.
Management Ioo elected to omit the statements of c_ol,
flows; for the period Prided hecembor 51, 190q, Gonvral l
accepLud accounting laanrapirs require Lli"l bush b l- al-omtw"Lei
be presented when financial statements purport to prinsunt
financial position and rewulLb of operations.
Management has elected to omit subtantially all of the
disclosures required by generally accepted accounting
prinLi.plow. I'f the nmr.i:i'ptl i.lit.r_luuurrt; were urclt.td"d in Cho
fi.n.uu ial SlaLPVm_v'iK, lh"y m.ighl. inf luwnt_u ltu.t u4t r'.,,
cuncluuiunu obut_il. 1-hp Lump.any's financial position, resulLs
of operations, and rash flow. Accordingly, these financial
statements are riot intended fur those who are nut inrormed
about such matters.
Very - truly 'four's,
Mv,[A , Nt, .y ^ Nww, &
Murphy, Murphy $ Murphy
oUl
0,
M
kw"
PACIFIC',AATIONAL'BAk
UUMMUNITY,�DEVELOPMENT CENT6 P2
N
oATE'
- Xce
1"p.: d1ph
90242
X* t�k�,,5
rise you that the credit application of
andolbtsia;' I6w & Diane 0, Ice
- 08 4 , - ;; go
fora $ 20 000
te as: sen WM/rejoctecl
ve, it is'subject to all.'applicabl6 Bank requirements; :! „':
praisal.
�T,Y�T�.O MPR,OVED IF
to
Very -t�uly,yours,
; #1
az
Helen Zumwalt.
Consumer Credit officer
'AP
UCANT COPY,
. ... ..... ..
SECURITY PACIFIC NATIONAL BANK
Community Develop.
P.O. B ox #4430
90241 -' --
Date __ Sept.embes- 1h_._J 9
Mr. & Mrs. Randolph Ice
427 Whiting
E1 Segundo, CA 90242
DESCRIPTION OF ACCOUN T, 1 nANSACTION Oil I1C (N 11:;1 I El) CI ILI)I I ANI I AI)VI:I I!;[. AC I ION IAI(EN
�J We regret that we are unable to approve your recent request for a /an _ Proper ty__Impro- v_ement _.___.__loan
in the amount of $._? 0 , 000.00__ hocnuso of the Inctor(s) indicated br.low
I __] We can, however, offer you credit on the following Terms
II this offer Is acceplable to you, please nollly us within 15 (Irlys hour Ihn dale, of Ihi:; lollol al tilt. adrhess Indicated above
❑ Other
PRINCIPAL REASON(S) FOR ADVERSE ACTION CONCERNING CREDIT
Credit application incomplete
_ Value or type of collateral not sufficient
_ Insufficient number of credit references provided
_ Too short a period of residence
— Unacceptable type of credit references provided
_ Temporary residence
_ Unable to verify credit references
Unable to verily residence.
_ Temporary or Irregular employment
_. No credit 1dn
— Unable to verify employment
_.._ Insufficient credit file
_ Length of time at employment
Dolinqunnl past oI plomnl credit obligahow;
_X - Insufficient Income for amount of credit requested
Gal nishnnrnl, :dlac :hnunit, lolrclu:;uru, lopossossion
_ Excessive obligations In relation to Income
judgement, tax lien, or suit
_ Unable to verify Income
__ Bankruptcy
— We do not grant credit to any applicant on the terms and conditions you request
— Other, specify
—
DISCLOSURE OF USE OF INFORMATION OBTAINED FROM AN OUTSIDE SOURCE
X Disclosure inapplicable
Information obtained in a report from a Consumer Reporting Agency
_. Information obtained from no outside source, other than n Consumer ne.porenq Agency Under trip. Fair Credit Reporting Act, you
have the right to make a written request, within 60 days of Irce.lpl of This nolico, Inn (Ilsclosoto of Iho nrdure of the adverse.
Information.
UI ]Oil S NnMI.
The Federal Equal Credit Opportunity Act prohibits creditors from discrimination against credit applicants on the basis of race,
color, religion, national origin, sex, marital status, age (provided that the applicant has the capacity to enter into a binding
contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has
in good faith exercised any right under the Consumer Credit Protection Act. The Federal agency that administers compliance with
this law concerning this creditor is the Comptroller of the Currency, Consumer Affairs Division, Washington, D.C., 20219.
The California Housing Financial Discrimination Act of 1977 also prohibits certain discriminatory practices, as set forth in
Sections 35810, 35811 and 35812 of the California Health and Safety Code. The above agency administers compliance with this
law
If we have received incorrect information, or you have additional information, please advise us Immediately
Very truly yours,
�
Lynwood L.D,C _
Lending 011lcni �nnturn
095653 1 67
(;ons.lrter r.�l�
2 13_923 -555 _
DOphonn No
0
0
LYNWOOD LOCAL DEVELOPMENT COMPANY
MINUTES
August 29, 1990
LLDC Board Members Present:
Chairman Leighton Hull
Bernard Lake
Robert Herrera
Celia Arroyo
Absent:
City Staff Present:
OPENING CEREMONIES:
Harry Prins
Shane F. Moshiri,
Economic Development Specialist
Mr. Moshiri stated that the Agenda had been posted in accordance
with the Brown Act.
APPROVAL OF MINUTES:
A motion was made and passed to accept the minutes of the meeting
of June 27, 1990, as submitted.
ITEM FOR CONSIDERATION:
Mr. Moshiri explained that Mr. Michael Entin had made a request
in the amount of $20,000.00 for rehabilitation of a sub - leased
building located at 11324 Long Beach Blvd. However, based upon a
review of the LLDC guidelines, none of the proposed repairs fall
within the LLDC requirements for dispensation of Business
Development Assistance loans. Mr. Moshiri further reminded the
Board members that Business rehabilitation loans had been
discontinued and, therefore, funding for rehabilitation
purposes was no longer available. Chairman Hull suggested there
was no use to continue this consideration, based on staff's
report. A motion was made and seconded to refuse the request by
Mr. Entin based on these facts.
Mr. Moshiri informed the members that Mr. Aubrey Gray is
currently delinquent on two consecutive real estate mortgage
payments. Mr. Moshiri had informed Mr. Gray in writing to
submit an updated copy of his Balance Sheet and Income Statement
for the purpose Credit Analysis and reevaluation. The Board
members were informed that Mr. Gray has not yet responded to
this request.
Based on the new information disclosed regarding Mr. Gray's
questionable credit worthiness, a motion was made to rescind the
previously adopted decision in favor of grant of a loan. The
motion was moved and seconded to rescind the LLDC'S grant of
loan decision of September 25, 1990.
STAFF ORALS:
(1) Mr. Moshiri asked for approval of a resolution for the
payment a warrant register to Economic Development Corporation of
Los Angeles for consulting services rendered to the LLDC. The
motion was moved, passed, and adopted.
(2) Mr. Moshiri also asked to have his name included on the
signature card as to expedite the payments for services received
by LLDC. It was moved and seconded to accept Mr. Moshiri's
requests.
(3) Mr. Moshiri advised the LLDC Board members that staff had
reviewed and forwarded to Security Pacific Bank for further
evaluation of two requests for financial assistance submitted by
Coastal Warehouse Company and Lynwood Physical Therapy.
ADJOURNMENT
Being no further business to discuss, the meeting was adjourned
to the next regular meeting of September 26, 1990.
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