HomeMy Public PortalAboutM2003-09-16-LRALYNWOOD REDEVELOPMENT AGENCY
REGULAR MEETING
SEPTEMBER 16, 2003
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 7:10 p.m.
Chairman Pedroza presiding.
Members Byrd, Reyes, Richards, Rodriguez and Pedroza answered the roll call.
Also present were Executive Director Hempe, Assistant Agency Counsel Duran,
Secretary Hooper, and Treasurer Pygatt.
Secretary Hooper announced that the agenda had been posted in accordance with the
Brown Act.
PUBLIC ORAL COMMUNICATIONS
It was moved by Member Richards to have combine public oral communications for all
agencies after each agency is opened, seconded by Vice Chairman Rodriguez.
Members reconvened at 9:20 p.m.
ITEMS FOR CONSIDERATION
Item #1: MINUTES OF PREVIOUS MEETING:
NONE
Item #2: APPROVAL OF WARRANT REGISTER
It was moved by Member Reyes, seconded by Vice Chairman Rodriguez to adopt the
resolution.
LRA RESOLUTION N0.2003.036 ENTITLED:
"A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
LYNWOOD, CALIFORNIA ALLOWING AND APPROVING THE DEMANDS
AND ORDERING WARRANTS THEREFOR"
ROLL CALL:
AYES: MEMBERS BYRD, REYES, RICHARDS, RODRIGUEZ, AND
PEDROZA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
PUBLIC HEARING
Item #3: JOINT PUBLIC HEARING FOR CONSIDERATION OF A PROPOSED
AND DEVELOPMENT AGREEMENT ("DDA")
Agency Counsel Casso requested that the Members consider postponing this matter,
permitting staff to renotice the hearing. Chairman Pedroza asked why they are postponing
this matter.
Agency Counsel Casso stated the Executive Director provided a confidential
memorandum to the Members which details findings that were provided in a confidential
memorandum from the City Attorney's Office about concerns relative to the preparation
of various documents on the matter under consideration, and it is our advice that the
Members examine those concerns and take them into account as to whether consideration
matter should go forward.
Member Reyes stated that he is disturbed that Items #3 and #4 as well as City Council
items have been put on the table for quite some time, and the Agency Counsel should
have reviewed the documents and should have made them aware of the findings before
the meeting.
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,~` =:Agency Counsel Casso stated he respects Councilman Reyes comments, but this was not
a last minute advice as his office has been talking to city staff for the last few weeks
about some of the concerns, his office expressed those concerns on a memo dated
September 1 lth. Stated he can only render advice and review documents that are
provided to them on a timely fashion, relative to matters that are going to be under
consideration by the Members. He assured that had he been made of aware of some of
these shortcomings earlier, he would have advise the Agency much earlier. Stated that it
is very difficult to give advice if they don't have requisite documents. Stated the
Members make the policy decisions and if the Members wish to go forward they may do
so, but he suggests that they don't do that based on their review and shortcomings on the
documents on the item #3 and Item #4.
Member Richards suggested to solidified some of terms on that exist on the proposed
DDA and on Item #4 there are a number of terms that need to solidify.
Chairman Pedroza stated the Agency Counsel is suggesting pulling these items because
there are some concerns on the documents. Stated he would like to pull the items and
have staff prepare the information that it is required.
Member Richards stated they can't take action to approve the DDA, but may provide
directions to staff about the DDA and once these decisions are made staff may bring the
item back.
Agency Counsel Casso stated the documents must be made available for public review
prior to
the meeting. Stated that it appears that staff is taking directions from the Agency than it
is quite obvious that resolution on the deal points on these matters have not fully resolved
and those are some of concerns that his office raised as well as the Executive Director on
her memo.
Member Reyes stated he agrees with Member Richards that they can approve the DDA
and incorporate any other documentation and findings by giving directions in the motion
to corporate what ever is needed.
Member Richards suggested specifying the terms because they are not clear. Staff must
receive clear directions from the Members and they are not in a position to approve the
DDA.
Member Richards gave some examples that on Item #4 - it needs to provide directions
concerning the price per parcel and needs to specify it, as staff report 33343 is not
cleared. Also there was discussion concerning the site plan and where the lots would be
located, as it is not cleared. Also there needs to be directions given regarding access
housing as mentioned on the DDA concerning five lots for low-moderate housing and
need to come back with one of the agreements so it is at least one of the Exhibits.
Member Richards stated that on Item#3 staff is requesting substantial off-site
improvements in the amount specified of $38,000 as surplus, and given the fact that the
Agency will recover $280,000 in land, and that the Agency redirect the surplus amount to
help cover the off-site improvements.
It was moved by Member Richards to cover the fees and extend the surplus, and the
balance owing for, be deferred to the sale of the homes, seconded by Member Reyes.
Member Reyes suggested opening a joint public hearing. Executive Director Hempe
stated that is was suggested before not to open the public hearing.
It was moved by Member Richards that as an alternative that the Agency deal with this as
subsequent need item based the information received today, and to consider placing on
the agenda discussion and providing staff with directions concerning term and proposed
disposition development agreement, seconded by Member Byrd.
Agency Counsel Casso stated the Members are given further directions to staff and the
public hearing will not be opened.
Member Reyes stated he has a problem with continuing this item since it will take more
time, and feels that the Agency Counsel can find ways to move this item forward.
Redevelopment Director Louis Morales stated that all documents are now in order and
the item can be placed on the next Regular Council meeting of October 7th. Stated the
public hearing will be re-noticed again.
Mayor Pedroza questioned the Environmental Service Report. Mr. Morales responded to
this question.
It was moved by Mayor Pedroza, seconded by Member Reyes to waive and remove
conditions #2, #8, #11, and #16.
Agency Counsel Casso stated that directions have been given to staff and they will bring
back pursuant to the Members approval.
Member Richards withdrew his motion.
Secretary Hooper asked for clarifications on this item. Agency Counsel Casso stated that
Item #3 public hearing would be re-noticed and staff would bring back updated
information for the Agency's approval.
LRA ROLL CALL:
AYES: MEMBERS REYES, RODRIGUEZ, AND PEDROZA
NOES: NONE
ABSENT: NONE
ABSTAIN: MEMBERS BYRD AND RICHARDS
After roll call, Member Richards requested to authorize staff to waive some portion of the
land proceeds to offset the costs associated up to certain sum of money.
Chairman Pedroza amended his motion to include any surplus of money to pay for the
cost for some of the conditions, and waive fees, seconded by Member Byrd.
Member Reyes asked that Agency Counsel explained the new motion.
Agency Counsel Casso stated that this was a new motion relative to the project.
LRA ROLL CALL:
AYES: MEMBERS BYRD, REYES, RICIIARDS, RODRIGUEZ, AND
PEDROZA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Agency Counsel Casso clarified that all agencies are opened and the actions taken by the
Agency is also for the City Council item, as well as the votes. Stated that the record can
reflect that the action of both entities was taken.
Item #4: JOINT PUBLIC HEARING FOR CONSIDERATION OF A PROPOSED
AND DEVELOPMENT AGREEMENT ("DDA")
Chairman Pedroza stated that option #2 seems reasonable and would like to discuss it.
Option #2: The Agency currently owns the property (the "Property"), which is the
subject of the proposed project and DDA. The Agency recently purchased the Property
from CalTrans in the amount of $3,000. The property has been tax-exempt ever since the
Property was purchased by CalTrans.
Member Richards stated he has a concerned is that the Developer would have a chance to
recover the costs with sale of each home and there is no initial fiscal impact,- and feels the
City should get the fair share.
Chairman Pedroza pointed out that there is no sewer system available in this area, and
this would need a large investment that must be made by Developer to put in the sewer
system, so the Agency should consider off-setting the costs in helping with the amount of
the property. Vice Chairman Rodriguez asked if this a motion made by the Chairman.
Chairman Pedroza stated that he wishes to make this a motion, seconded by Vice
Chairman Rodriguez.
Agency Counsel Casso clarified that the votes being taken will be for the Agency and
City Council items.
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LRA ROLL CALL: ,
AYES: MEMBERS REYES, RODRIGUEZ, AND PEDROZA
NOES NONE
ABSENT: NONE
ABSTAIN: MEMBERS BYRD AND RICHARDS
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Member Richards stated he is also concerned with the site plan. Redevelopment Director
Louis Morales answered the Member Richards questions.
Members Richards suggested that those voting in favor should consider maybe
determining what the sewer system will cost and deducting that amount from land sale
proceeds.
Chairman Pedroza recommended that staff bring back the cost of the sewer system and
re-notice the public hearing and still consider option #2 at the next meeting.
REGULAR ITEMS
Item #5: CONSIDERATION OF A GRANT AND BUSINESS LOAN TO
AMERICAN REMEDIAL TECHNOLOGIES
It was moved by Member Reyes to approve staff s recommendation, with the exception
of changing the interest rate from 10% to 7% with UCC filing in place, seconded by Vice
Chairman Rodriguez.
Chairman Pedroza questioned the current interest rate. Staff answered the Chairman's
question.
Agency Counsel Casso pointed out that UCC filing is set forth as a condition proceeding
to disbursement of funds in section 2 and it should be 2D in the agreement.
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Member Richards stated he supports the concept because of the potential to generate f
resources. Stated his concerns are some of the items listed on staff report, which makes it
difficult to the Agency to make a decision into some of the issues, are resolved.
Questioned whether staff obtains verification on the utility. Stated that there was some
discrepancies concerning the verification of the utility user's tax generated and there was
request to review it.
Assistant City Manager Alfretta Earnest stated they did not find discrepancies, as they
were not provided some information that was requested.
Member Richards stated he still support of the concept, but would like some the concerns
to be resolved before proceeding with this.
Redevelopment Director Louis Morales responded that the agreement is a two
components agreement, which is for the loan and grant, and ART has requested using
collateral as part of the equipment.
Member Reyes suggested that the loan be secured as Personal Property, instead of Real
Property. Stated ART has been in business in the city for many years.
Chairman Pedroza clarified that the motion should be to secure the agreement for six
years with Business Property, equipment and 7% interest rate. ~
Vice Chairman Rodriguez commented that this business has been in business for many
years.
Agency Counsel Casso asked for clarification on the corporate equipment that would be
used to secure and questioned what value is the Agency suggesting. Chairman Pedroza
stated that it would be based on the loan. Agency Counsel Casso stated that staff is
concerned with the depreciation of the equipment.
Chairman Pedroza recommended that staff follow a $200,000 collateral of this
machinery.
Agency Counsel Casso reported that the Vice President of ART did provide the Agency
staff with a listing of equipment that market value for the various equipment exceeded
$750,000 and the company was willing to put this up, but certainly, they can work with
ART to ensure the value of the equipment that will be used as collateral is $200,000.
LRA RESOLUTION NO. 2003.037 ENTITLED:
"A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY
APPROVING A BUSINESS ASSISTANCE LOAN AND GRANT AGREEMENT
BY AND BETWEEN THE LYNWOOD REDEVELOPMENT AGENCY AND
AMERICAN REMEDIAL TECHNOLOGIES"
LRA ROLL CALL:
AYES: MEMBERS REYES, RODRIGUEZ, AND PEDROZA
NOES: NONE
ABSENT: NONE
ABSTAIN: MEMBERS BYRD AND RICHARDS
After roll call, Member Richards suggested that the Agency should consider a relocation
grant since it is more durable, and a loan becomes more problematic as it progresses.
Stated he motions that at the next special or regular meeting staff brings back an option of
converting the loan into a Grant.
Agency Counsel Casso asked if it was the Agency intent that the Grant and Business
Loan be executed at this time by Chairman and the officers of ART. Chairman Pedroza
stated he would like to bring back the option of converting the loan into a Grant.
Member Richards suggested bringing back the expenditures detail on this loan. Agency
Counsel Casso stated it would be the loan portion of this agreement only.
Agency Counsel Casso clarified that the Agency has approved the agreement as revised
and adopted the resolution as amended.
ADJOURNMENT
Having no further discussion, it was moved by Vice Chairman Rodriguez, seconded by
Member Reyes and carried to adjourn the Regular Council Meeting at 10:15 p.m
Fernando Pedroza, Chairma Andrea L. Hooper, Secretary