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Home My Public Portal About09-06-2005LRAQLYNWOOD REDEVELOPMENT AGENCY 11330 BUILIS ROAD LYNWOOD, CALIFORNIA 90262-3845 (310) 603-0220 Ramon Rodriguez, CHAIRMAN Maria T. Santillan, VICE CHAIRMAN Louis Byrd, MEMBER Fernando Pedroza, MEMBER Leticia Vasquez, MEMBER This Agenda contains a brief general description of each item to be considered· Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection· A person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200· AGENDA LYNWOOD REDEVELOPMENT AGENCY SEPTEMBER 6, 2005 REGULAR MEETING · CITY r~7 LYNW00D CITV,'~ .i~:' ~: SEP 0 ! 200§ 5:00 P.M. LYNWOOD CITY HALL, 11330 BULBS "~D ~%~, MARIA T. SANTILLAN VICE CHAIRMAN FERNANDO PEDROZA MEMBER EXECUTIVE DIRECTOR N. ENRIQUE MARTINEZ RAMON RODRIGUEZ CHAIRMAN LOUIS BYRD MEMBER LETIClA VASQUEZ MEMBER DEPUTY EXECUTIVE DIRECTOR LOUIS MORALES AGENCY COUNSEL RONALD N. WILSON OPENING CEREMONIES: Call Meeting to Order. Roll Call (BYRD-PEDROZA-SANTILLAN-VASQUEZ-RODRIGUEZ) Certification of Agenda Posting by Secretary PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS ITEMS FOR CONSIDERATION MINUTES OF PREVIOUS MEETING Regular Meeting of August 16, 2005 RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS THEREFOR CONSENT CALENDAR All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Agency or staff request specific items be removed from the Consent Calendar for separate action. RFP RESULTS FOR 11300 ATLANTIC AVENUE. Comments: To apprise Agency Members of the RFP results for the Agency property located at 11300 Atlantic Avenue. Recommendation: Staff respectfully requests that after review and discussion, the Agency direct staff to bring back a DDA for consideration. DISCUSSION ITEMS NONE CLOSED SESSION WITH RESPECT TO EVERY ITEM OF BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: Southeast Corner of Long Beach Boulevard and Imperial Highway. Identified by Assessor's Parcel Numbers: APNs APNs 6173-001-001 6173-002-017 6173-001-002 6173-002-018 6173-001-003 6173-002-019 6173-001-004 6173-002-020 6173-001-005 6173-002-021 6173-001-006 6173-002-022 6173-001-007 6173-002-023 6173-001-015 6173-002-025 6173-001-018 6173-002-026 6173-001-019 6173-002-904 6173-001-020 6173-002-906 6173-001-021 6173-003-002 6173-001-022 6173-003-003 6173-001-023 6173-003-004 6173-001-024 6173-003-005 6173-001-025 6173-003-007 6173-001-029 6173-003-008 6173-001-032 6173-003-012 6173-001-033 6173-003-013 6173-001-036 6173-003-014 6173-002-001 6173-003-015 6173-002-002 6173-003-016 6173-002-003 6173-003-017 6173-002-004 6173-003-018 6173-002-008 6173-003-019 6173-002-009 6173-003-020 6173-002-010 6173-003-023 6173-002-011 6173-003-024 6173-002-014 6173-003-025 6173-002-015 6173-003-901 6173-002-016 Agency Negotiator: Negotiating Parties: Under Negotiation: Agency, Agency staff and Agency Counsel including but not limited to Louis Morales and Ron Wilson M + D Properties Exclusive Negotiation Agreement WITH RESPECT TO EVERY ITEM OF BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: Southwest corner of Imperial Highway and Long Beach Boulevard. APNs 6171-002-022 6171-002-023 6171-002-024 6171-002-025 6171-002-026 6171-002-027 6171-002-028 Agency Negotiator: Negotiating Parties: Under Negotiation: Agency, Agency staff and Agency Counsel including but not limited Louis Morales and Ron Wilson M + D Properties Extension of Exclusive Negotiation Agreement WIITH RESPECT TO EVERY ITEM OF BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: Southwest corner of Imperial Highway and State Street. Identified by Assessor's Parcel Numbers: APNs APNs 6169-003-001 6169-004-010 6169-003-002 6169-004-011 6169-003-003 6169-004-012 6169-003-006 6169-004-013 6169-003-010 6169-004-014 6169-003-011 6169-004-017 6169-003-012 6169-004-018 6169-003-015 6169-004-019 6169-003-016 6169-004-020 6169-003-017 6169-004-021 6169-003-018 6169-004-022 6169-003-019 6169-004-023 6169-004-003 6169-004-024 6169-004-004 6169-004-025 6169-004-005 6169-004-026 6169-004-008 6169-004-027 6169-004-009 6169-004-028 Agency Negotiator: Negotiating Parties: Under Negotiation: Agency, Agency staff and Agency Counsel including but not limited to Louis Morales and Ron Wilson M + D Properties Extension of Exclusive Negotiation Agreement WITH RESPECT TO EVERY ITEM Of BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: Alameda Triangle Housing Development Project - Real property on the northeast corner of Alameda Street and Imperial Highway and Identified by Assessor's Parcel and Caltrans Director's Deeds Numbers below: APNs 6169-001-001 6169-001-002 6169-001-008 6169-002-904 CALTRANS DD 058165-01-01 CALTRANS DD 058166-01-01 Agency Negotiator: Negotiating Parties: Under Negotiation: Agency, Agency staff and Agency Counsel including but not limited to Louis Morales and Royce Jones 1. Casa Grande Development, LLC 2. Abell-Helou Homes 1. Proposed purchase price and terms for sale and development of Agency property by Casa Grande Development, LLC; 2. Proposed purchase price and terms for sale and development of Agency-owned property by Abell- Helou Homes WITH RESPECT TO EVERY ITEM OF BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO SECTION 54956.8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: Metro Village Project - Real Property on the West side of Long Beach Boulevard, south from Pluma Street to Imperial Highway and the east side of Long Beach Boulevard from Imperial Highway to Martin Luther King Jr. Boulevard West Side: APNs APNs 6170-034-011 6170-036-046 6170-034-012 6170-036-048 6170-034-013 6170-036-050 6170-034-014 6170-036-051 6170-034-015 6170-039-012 6170-034-016 6170-039-013 6170-034-017 6170-039-014 6170-034-018 6170-039-015 6170-034-019 6170-039-016 6170-034-020 6170-039-017 6170-034-021 6170-039-018 6170-034-022 6170-039-019 6170-034-023 6170-039-020 6170-034-024 6170-039-021 6170-034-025 6170-039-022 6170-034-026 6170-039-028 6170-034-030 6170-039-031 6170-035-020 6170-039-032 6170-035-030 6170-039-034 6170-036-038 6170-039-035 6170-034-039 6170-039-036 East Side: APNs APNs 6191-001-002 6191-001-024 6191-001-003 6191-001-033 6191-001-004 6191-001-034 6191-001-005 6191-004-002 6191-001-009 6191-004-004 6191-001-010 6191-004-006 6191-001-011 6191-004-007 6191-001-012 6191-004-026 6191-001-013 6191-004-027 6191-001-014 6191-005-021 6191-001-015 6191-008-010 6191-001-016 6191-008-011 6191-001-017 6191-008-012 6191-001-018 6191-008-013 6191-001-019 6191-008-026 6191-001-020 6191-008-027 6191-001-021 6191-008-028 6191-001-023 Agency Negotiator: Negotiating Parties: Under Negotiation: Agency, Agency staff and Agency Counsel including but not limited to Louis Morales and Ron Wilson M&A Gabay (Charles Company) Price and terms CONFERENCE WITH LEGAL COUNSEL REGARDING - EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) Name of Case: Lynwood Redevelopment Agency vs. SELAC/ SELAC vs. Lynwood Redevelopment Agency Case: Los Angeles Superior Court Case #TC01880 ADJOURNMENT THE NEXT REGULAR MEETING WILL BE HELD ON SEPTEMBER 20, 2005 AT 5:00 P.M. IN THE COUNCIL CHAMBERS OF CITY HALL, 11330 BULLIS ROAD, LYNWOOD, CALIFORNIA. AGENDA STAFF REPORT DATE: TO: APPROVED BY: PREPARED BY: August 30, 2005 Honorable Chairman & Members N. Enrique Martinez, City Manager Andrea L. Hooper, City Clerk Ofelia Munoz, City Clerk Assistant SUBJECT: Lynwood Redevelopment Agency Minutes Recommendation: Staffs recommends that the Members approve the following minutes: · Regular Meeting, August 16, 2005 Background: N/A Fiscal Impact: N/A Coordinated With: N/A AGENDA I TE.~J, LYNWOOD REDEVELOPMENT AGENCY REGULAR MEETING AUGUST 16, 2005 The Lynwood Redevelopment Agency of the City of Lynwood met in a Regular Meeting in the Council Chambers, 11330 Bullis Road on the above date at 4:30 p.m. Chairman Rodriguez presiding. Members Byrd, Pedroza, Santillan, Vasquez, and Rodriguez answered the roll call. Also present were Executive Director Martinez, City Attorney Beltran, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORAL COMMUNICATIONS NONE ITEMS FOR CONSIDERATION Item #1: MINUTES OF PREVIOUS MEETINGS It was moved by Member Byrd, second by Member Pedroza to approve the following Minutes. ROLL CALL: AYES: NOES: ABSTAIN: ABSENT: Regular Meeting, July 19, 2005 Special Meeting, August 2, 2005 Regular Meeting, August 2, 2005 MEMBER BYRD, RODRIGUEZ NONE NONE NONE PEDROZA, SANTILLAN, VASQUEZ AND Item #2: WARRANT REGISTER It was moved by Vice Chairman Santillan, second by Member Pedroza to adopt the following Resolution. RESOLUTION NO. 2005.024 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS THEREFORE. ROLL CALL: AYES: MEMBER BYRD, RODRIGUEZ NOES: NONE ABSTAIN: NONE ABSENT: NONE PEDROZA, SANTILLAN, VASQUEZ AND CONSENT PUBLIC HEARING All matters listed under the Consent Calendar will be acted upon one motion affirming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Agency or staff request specific items be removed from the Consent Calendar for separate action. Item #3: DEVELOPMENT CONCEPT REVIEW FOR PROPOSED REDEVELOPMENT OF FORMER NONCONFORNING MIXED-USE PROPERTY INTO A USED TRUCK SALES LOT LOCATED AT 11132 WRIGHT ROAD To provide Redevelopment Agency members with an opportunity to review and discuss a development concept submitted by Leonel Orellana for the redevelopment of a nonconfoming mixed-use lot that has been poorly maintained into a used track sales lot. It was moved by Member Byrd, second by Member Pedroza and carried to open the public hearing. Alex Landeros - Stated that the street is not wide enough for over size tracks and it is going to be hazardous for the residents and children of this area. Donald Vicka - Representative of Leonel Orellana stated that he is here to answer any questions the Members might have. It was moved by Member Byrd, second by Member Pedroza and carried to close the public hearing. It was moved by Member Vasquez, second by Member Pedroza to continue the Item for September 20, 2005. ROLL CALL: AYES: MEMBER BYRD, RODRIGUEZ NOES: NONE ABSTAIN: NONE ABSENT: NONE PEDROZA, SANTILLAN, VASQUEZ AND CLOSED SESSION City Attorney Beltran stated with respect to every item of business to be discussed in Closed Session Pursuant to Section 54956.8: Item #4: Conference with Legal Counsel - Anticipated Litigation It was moved by Vice Chairman Santillan, second by Member Pedroza and carded to recess the Joint Closed Session at 8:55 p.m. Members reconvened at 11:10 p.m. City Attorney Beltran stated that the Members met on the aforementioned matters and reported on: Item #4: Conference with Legal Counsel - Anticipated Litigation: No action was taken ADJOURNMENT Having no further discussion, it was moved by Vice Chairman Santillan, seconded by Member Pedroza and carried to adjourn the Regular Lynwood Redevelopment Meeting at 11:20 p.m. Ramon Rodriguez, Chairman Andrea L. Hooper, Secretary DATE: TO: APPROVED BY: PREPARED BY: SUBJECT: AGENDA STAFF REPORT September 6, 2005 Honorable Chairman and Members of the Lynwood Redevelopment Agency N. Enrique Martinez, Executive Direct l~ ~'~ Christy Valencia, Interim Director of Finance / o.~ (~- . Monica Castellanos, Account Clerk Approval of the Warrant Registers Recommendation: Staff respectfully recommends that the Agency Chairman and Board Members approve the warrant register. ..................... Attached Warrant Registers dated September 6, 2005 .............. AGE~DA ITEM C~~ . p,?ao... o[.0~°00° DATE: TO: APPROVED BY: PREPARED BY: AGENDA STAFF REPORT September 6, 2005 Honorable Chairman & Members of the~ N. Enrique Martinez, Executive Oirecto/f~~ Louis Morales, Deputy Fxecutive Direct~' Bruno Naulls, Redevelopment Associat~ SUBJECT: PROPOSAL (RFP) FOR THE SALE OF AGENCY OWNED PROPERTY LOCATED AT 11300 ATLANTIC AVENUE Recommendation: Staff respectfully request that after review and discussion, the Agency determines whether the offer for purchase of Agency property be accepted and approve the following action: Direct staff to proceed with the sale of Agency owned property to J.B. Construction; and Enter into a DDA with the Developer for the disposition of the property and the operation of the Senior Housing project. Purpose: To Apprise Agency Members with the RFP results and proposal for the purchase of Agency owned property located at 11300 Atlantic Avenue. Background: In October 1999 the Agency purchased the property located at 11300 Atlantic Avenue (the "Property") in the amount of $774,000. The Property was improved with a dilapidated 30-room motel. In November 1999 The Agency approved a Disposition and Development Agreement ("DDA") with SELAC (the "Developer") for the disposition of the Property and conversion of up to 15 Senior Housing units (the "Project"). Under the terms of the DDA the Agency conveyed the property to the Developer and provided a $400,000 grant to be used for construction. The construction was estimated to be approximately $750,000 and the AGENDA ITE~ Developer was required to finance the difference. The Developer borrowed $350,000 from a lender. 4. The Developer was not successful in completing the Project. The Developer also fell behind on their loan payments and was facing foreclosure proceedings from the lender that provided the $350,000 loan to the Developer. 5. In and effort to protect its investment, the Agency opted to step in and cured the default with the Developer's lender and provided a loan to the Developer. In total an additional $180,000 was allocated and loaned to the Developer for mortgage and construction completion. The additional $180,000 was in the form of a loan and was secured on the property as a second trust deed. 6. The Developer defaulted on the second deed of trust for not making payments to the Agency and did not complete the construction as provided in the DDA. As a result the Agency took back the Property and incomplete project. The Developer was provided a limited time to repurchase the Property. To complete the project it was estimated to cost approximately $106,300, which included the installation of required fire sprinklers. 7. The Agency has received purchase offers from various parties. The Developer had a right to repurchase. However, that right expired on June 6, 2005. 8. On July 5, 2005 the Agency directed staff to pursue the sale of the Property through a Request for Proposal ("RFP"). On July 19, 2005, Agency gave staff the directive to complete and release an RFP for the sale of the Agency owned property located at 11300 Atlantic Avenue. 10. The RFP was prepared and released on August 3, 2005 via fax and hard copy to 9 different Senior Housing developers providing details on the current status of the property and the responsibilities the new owner would have to incur. 11. The RFP had a deadline for response set for August 22, 2005. Of the 9 RFP's that were sent out, only one response was received by the deadline. No other proposals or responses have been received since the cut off date. 12. The proposal was submitted by J.B. Construction ("Developer"). The Developer made an offer for purchase in the amount of $815,000.00 and stated they are prepared to make an all cash offer. The Developer also stated that they are prepared and able to make all building requirements as indicated by the City within 30 working days of the acceptance of their proposal (see attached offer letter). Discussion & Analysis: The Agency's initial investment in the project under the DDA approved in 1999 was $1,174,000 or $78,000 per unit. Due to the Developer's inability to compete the project, the Agency has had to invest additional funds to continue with the project. The Agency has currently expended an additional $759,659.89 towards the completion of the subject project. This additional expenditure was in addition to the cost as contemplated in the approved DDA. The offer to purchase of $815,000 will allow the Agency to recapture the additional financial participation ($759,659.89) in its totality and receive an additional $55,340.11 in sale proceeds from the sale of the property (approximately $3,690/unit), which was not contemplated as part of the original DDA. The sole respondent to the RFP if approved by the Agency will ultimately have to enter into a DDA with the Agency to effectuate the sale and to ensure project completion. By comparison, a sale now through a DDA will minimize the need for the Agency to continue investing additional cost into the project and recapture additional monies to further reduce the $78,000 per unit cost to the Agency. Fiscal Impact: The Agency has the opportunity to recapture its loan and out of pocket costs in its entirety and further reduces its financial participation as provided in the DDA that was approved in 1999. Coordinated With: No other Department J.B. Construction 5545 Gage Avenue Bell Gardens Ca. 90201 Phone: (323) 773-2722 Fax: (323) 773-2717 E-Mail: jvbarai~aol.com E-Mail: j avierbgj b~hotmail.com Attention: Lynwood, Redevelopment Agency of The city of Lynwood California. J.B. Construction is interested in purchasing the property located at. l l300 Atlantic Avenue, Lynwood Ca.90262. With exception of our proposal we have no problems with purchasing the property as is. J.B. Construction is a licensed and bonded construction company and are aware of the purpose that the city of Lynwood had with the building and share the same thoughts and feelings of the city. We feel the senior's of the city of Lynwood should have a safe and affordable senior center. In closing J.B. Construction is prepared to make a all cash offer of, $815,000.00 and prepared and able to make all building requirements required by the city within 30 working days. Hope to receive a quick response from the City of Lynwood. Date: 8 / 22 / 2005 FINANCIAL FoFOfiS¢, Us~ Only: Loan O~ccnJl-I July 13, 2005 Arm: To whom it may concern Property Acquisition This letter is to confm-n that Javier Barajas has a line of credit with Aztec Fina-,~cia[ for the mount of $2,000,000.00. Sinc~rely, Joel D. Hoff_man President 2624 Wez£ Magnolia Blvd. Bu~bar~, CA 91505. A Mortgage Lending / Brok~age Firm (gl$) $48-8950 FaX: (818) 848-8970 9IIBI~k888ISI I8 399d NOIIO~M±SNOD ONgM~3S