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Home My Public Portal AboutA2003-08-05LRA~~.~°a LYNWOOD REDEVELOPMENT AGENCY 0~~~4 11330 BLILLIS ROAD LYNWOOD, CALIFORNIA 90262-3845 (310) 603-022 ~~ ~ ~ ~ ~ _.1 ~~ '' -i Fernando Pedroza, CHAIRMAN ~, '= Ramon Rodriguez, VICE CHAIRMAN Louis Byrd, MEMBER ~;;;, ~} ~ _:, Arturo Reyes, MEMBER ~~~~ ~q~ Paul H. Richards, II, MEMBER ~-~ ~ ~,~^77~',,~?,"1 ~~~~;-, ~ z,.• ~~ ~'~'.o 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 Q~ the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the Cify Manager of (310) 603-0220, ext. 200. AGENDA LYNWOOD REDEVELOPMENT AGENCY AUGUST 5, 2003 REGULAR MEETING 6:00 P.M. LYNWOOD CITY HALL, 11330 BULLIS ROAD FERNANDO PEDROZA CHAIRMAN RAMON RODRIGUEZ LOUIS BYRD VICE CHAIRMAN MEMBER ARTURO REYES MEMBER PAUL H. RICHARDS, II MEMBER EXECUTIVE DIRECTOR LORRY HEMPE AGENCY COUNSEL JAMES CASSO OPENING CEREMONIES: A. Call Meeting to Order. B. Roll Call (BYRD-REYES-RICHARDS-RODRIGUEZ-PEDROZA) C. Certification of Agenda Posting by Secretary i PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS ITEMS FOR CONSIDERATION MINUTES OF PREVIOUS MEETING Regular Meeting of June 17, 2003 2. RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS THEREFORE. REGULAR ITEMS 3. TREASURER'S QUARTERLY INVESTMENT REPORT. Comment: The purpose of this item is to have the Lynwood Redevelopment Agency review the Treasurer's Quarterly Investment Report as required by recently enacted State Statues. Recommendation: The City Treasurer respectfully recommends that the Lynwood Redevelopment Agency receive and file the attached quarterly Investment Report for the quarter ending March 31, 2003. 4. EXCLUSIVE NEGOTIATING AGREEMENT (CASA GRANDE DEVELOPMENT). Comment: To have the Agency consider an Exclusive Negotiating Agreement ("ENA") with Casa Grande Development ("the Developer") for the development of up to 120 Single -Family detached homes at the Alameda/Imperial Triangle bounded by Fernwood, Alameda and Imperial Highway. Recommendation: Staff respectfully requests that after consideration the Agency approve the attached ENA with Casa Grande. ~,.,,. 5. DEVELOPMENT CONCEPT. Comment: To have the Agency review the modified development concept proposed by Hermilio Franco {the "Developer") for the development of up to 35 Single-Family detached homes on Agency owned property located on the south side of Fernwood Avenue between Atlantic Avenue and Bullis Road. Recommendation: Staff respectfully requests that after consideration the Agency approve the development concept for the development of up to 35 units with the in lieu payment of $3,000 per unit to offset the park impact and authorize staff to negotiate the terms of a Disposition and Development Agreement. 6. DEVELOPMENT CONCEPT. Comment: To have the Agency review and consider the development concept submitted by British Petroleum for the development of an Arco Service Station, an AM/PM Mini Mart with a car wash, and adrive-thru fast food restaurant at the south West quadrant of the I-105 Freeway and Long Beach Boulevard. Recommendation: Staff respectfully requests that after consideration the Agency approve the development concept submitted by H&S for the development of an Arco AM/PM and direct staff to initiate the Owner Participation process and bring back an ENA for Agency consideration. PUBLIC HEARING NONE INFORMATION ITEM NONE CLOSED SESSION 7. WITH RESPECT TO EVERY ITEM OF BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO SETION 54956.8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS. Property: 3100 E. Imperial Highway Agency Negotiator: Agency, Agency staff, Agency Counsel Negotiating Parties: Agency, LTC Development and Imperial Shopping Center UC Under Negotiation: Price and terms 8. WITH RESPECT TO EVERY ITEM OF BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO SECTION 54956.8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS. Property: 3000 Imperial Highway (K&K site) Agency Negotiator: Agency, Agency staff, Agency Counsel Negotiating Parties: Agency and M&D Properties Under Negotiation: Price and terms 9. WITH RESPECT TO EVERY ITEM OF BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO SECTION 54956.8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS. Property: Parcel No. 6169-012-016 Agency Negotiator: Agency, Agency staff, Agency Counsel Negotiating Parties: Agency and American Remedial Technologies Under Negotiation: Price and terms ADJOURNMENT THE NEXT REGULAR MEETING WILL BE HELD ON AUGUST 19, 2003 AT 6:00 P.M. IN THE COUNCIL CHAMBERS OF CITY HALL, 11330 BULLIS ROAD, LYNWOOD, CALIFORNIA. 4 LYNWOOD REDEVELOPMENT AGENCY REGULAR MEETING JUNE 17, 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 8:00 p.m. Chairman Pedroza presiding. Members Byrd, Reyes, Richards, Rodriguez and Pedroza answered roll call. Also present were Executive Director Hempe, Agency Counsel James Casso, 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 THE PREVIOUS MEETING It was moved by Member Byrd, second by Vice Chairman Rodriguez to approve the following minutes. • Special Meeting of April 9, 2003 • Regular Meeting, May 6, 2003 ROLL CALL: AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #2: WARRANT REGISTER It was moved by Member Reyes, second by Member Byrd to adopt the following Resolution. -------------'~~~~, AGENDA ITEM RESOLUTION N0.2003.021 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS THEREFORE. ROLL CALL: AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA NOES: NONE ABSTAIN: NONE ABSENT: NONE PUBLIC HEARING Item #3: PROPOSAL TO LEASE AGENCY PROPERTY To conduct a joint Public Hearing to seek authorization for the rental of Agency property located at the northeast corner of Atlantic Avenue and Fernwood Avenue (See attached Map) from June 28 through July 4, 2003. It was moved by Member Reyes, second by Vice Chairman Rodriguez and carried to open public hearing. Hearing no response, it was moved by Member Reyes, second by Member Byrd and carried to close public hearing. It was moved by Member Reyes, second by Member Byrd to adopt the following Resolution. RESOLUTION N0.2003.022 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY APPROVING THE RENTAL OF AN AGENCY OWNED PROPERTY LOCATED AT THE NORTHEAST CORNER OF ATLANTIC AVENUE AND FERNWOOD AVENUE TO THE APOSTOLIC ASSEMBLY OF GOD CHURCH FOR THE SALE OF "SAFE AND SANE" FIREWORKS FROM JUNE 28, 2003 THROUGH JULY 4, 2003. ROLL CALL: AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA NOES: NONE ABSTAIN: NONE ABSENT: NONE REGULAR MEETING Item #4: ADOPTION OF A RESOLUTION TO APPROVE THE PURCHASE OF CALTRANSPROPERTY To have the Agency adopt a resolution approving the purchase of Caltrans property located at Fernwood Avenue between Harris and Atlantic Avenue, and on Fernwood Avenue between Imperial Highway and State Street. It was moved by Member Reyes, second by Member Byrd to adopt the following Resolution. RESOLUTION N0.2003.023 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY APPROVING THE ACQUISITION OF CALTRANS PROPERTY LOCATED ON FERNWOOD AVENUE BETWEEN HARRIS AND ATLANTIC AVENUE (DD # 058463-O1-Ol) AND PROPERTY LOCATED ON FERNWOOD AVENUE BETWEEN IMPERIAL HIGHWAY AND STATE STREET (DD # 058179-01-01) FOR THE SUM OF $2,000.00 AND RELATED ACQUISITION FEES AND AUTHORIZING THE EXECUTIVE DIRECTOR THE PURCHASE AGREEMENT ON BEHALF OF THE AGENCY. ROLL CALL: AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #5: SECOND AMENDMENT TO THE AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT To have the Agency approve the amendment to the DDA between the Agency and 3100 E. Imperial Highway, LLC. (The Developer) in connection with the Plaza Mexico Project. It was moved by Member Reyes, second by Vice Chairman Rodriguez to adopt the following Resolution. RESOLUTION N0.2003.024 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY APPROVING THE PROPOSED SECOND AMENDMENT TO THE AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE LYNWOOD REDEVELOPMENT AGENCY AND 3100 E. IMPERIAL HIGHWAY, LLC. ROLL CALL: AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #6: EXTENSION OF AN EXCLUSIVE NEGOTIATING AGREEMENT To have the Agency consider a request submitted by Primestor Development to extend an Exclusive Negotiating Agreement (ENA) between Primestor and the Agency for the development of the proposed Lynwood Springs Project. It was moved by Member Reyes, second by Vice Chairman Rodriguez to approve the extension and extend the ENA by an additional six-month period and directed staff to continue working on the site assessment studies. ROLL CALL: AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #7: DEVELOPMENT CONCEPT REVIEW To have the Agency review the development concept submitted by Hermilio Franco (The Developer) for the development of Single-Family detached homes on Agency owned property located on the South side of Fernwood Avenue between Atlantic Avenue and Bulbs Road. It was moved by Member Reyes, second Vice Chairman Rodriguez to receive the presentations and proposals as presented. ROLL CALL: AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #8: DEVELOPER PRESENTATIONS -ABEL HELOU AND SOUTHLAND DEVELOPMENT To have the Agency receive and file the developer presentations for the property located at the Northwest corner of Atlantic Avenue and Carlin Avenue. Louis Morales - Presented a brief introduction to the Members in regards to the Developers. Michael Keele and Ralph Deppisch -Representatives of Southland Development Corporation - Introduced a brief presentation to the Members. Arturo Alfaro -Representative of Abel Helou -Presented to the Members a brief introduction in regards to first time homebuyers. Patricia Ramos -Stated that she is here to share her experience as a first time homebuyer with Abel Helou, explained that she is very satisfied with Abel Helou's help. Jacque Cochran -Stated that she was an employee for the City for over ten years as a Code Enforcement Officer, explained that she also purchased a home here in Lynwood through Abel Helou and is in support of Abel Helou. It was moved by Member Richards, second by Chairman Pedroza and carried to receive the presentations and proposals as presented. Agency Counsel James Casso -Reported to the Members an Addendum Close Session Item. It was moved by Member Reyes, second by Chairman Pedroza to add the Addendum for Close Session. ROLL CALL: AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA NOES: NONE ABSTAIN: NONE ABSENT: NONE ADDENDUM CLOSED SESSION Agency Counsel James Casso stated with respect to every item of business to be discussed in Joint Closed Session Pursuant to Section 54956.8: CONFERENCE WITH REAL PROPERTY NEGOTIATORS: PROPERTY: Atlantic Avenue &Fernwood Avenue Atlantic Avenue & Josephine Street State Street &Fernwood Avenue NEGOTIATING PARTIES: Bulletin Displays It was moved by Member Richards, second by Vice Chairman Rodriguez and carried to recess to close session at 12:00 p.m. Members reconvened at 1:15 a.m. Agency Counsel James Casso stated Members met on the aforementioned matters and stated on: NEGOTIATING PARTIES: Bulletin Displays - No Reportable Action ADJOURNMENT Having no further discussion, it was moved by Vice Chairman Rodriguez, seconded by Member Byrd and carried to adjourn the Regular Council Meeting at 1:20 a.m. Fernando Pedroza, Chairman Andrea L. Hooper, Secretary FISCAL YEAR 2002 - 2003 RESOLUTION NO. LRA __ ,. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD i,l ~' ~', LYNWOOD, CALIFORNIA ALLOWING AND APPROVING THE DEMANDS AND __ _._.~ ORDERING ., ,~ WARRANTS THEREFOR iF, ~•'' i _ _ The Redevelopment Agency of - _ the City of Lynwood does hereby resolve as follows: !"~ ~:, ~' ' _ _ _ -- Section 1. That the demands presented, having been regularly audited, are hereby - _ - -- allowed and _I , °~ approved, and t hat warrants ordered drawn therefor by the Agency Treasure to the payee and in the amounts indicated. , _ ,~j I ', WARRANT#/DATE PAYEE DE5C AMOUNT AREA A ALAMEDA ~~~ ,;' 0348 08-05-03 CITY OF LYNWOOD DEBT SVC PMT 239, 160. 00 2 39, 160 00 O^00 ,zi ,. 6396 08-OS-03 WINEFIELD & ASSOC. PROFESSIONAL & CONSTRUCTIONAL SVCS. 55, 829. 17 55, 829 17 0 00 ~ 6397 OB-05-03 NEXTEL COMMUNICATIONS WIRELESS SVCS _ 404. 36 . 202 18 . 202 18 :., ~;, z,~ 6398 08-05-03 FIE5TA TRAVEL AIRFARE/L. MORALES 139.82 . 69 91 . 69 91 ~ Z1 _ 6400 _ . _ - OB OS^03 _ _ -- SPOILED SPOILED CHECK O 00 . . I` 6401 OB 05-03 COMPTON DLUEPRINT & SUPPLY CO. PRINTING SVCS . _ 34 64 7 32 ~,,, _ ~'" <3 6402 OB OS-03 FEDERAL EXPRESS COURIER SVCS . 15 68 . 7 84 17. 32 ~" Za 6403 6 4 08 05-03 - PRESS-TELEGRAM ~ ADVERTISEMENT SVCS . 5, 000. 00 . 5, 000 00 7.84 O 00 ~ ~j 40 OB-05 03 RHW & AS$OCIATES CELLULAR PWONE ACCESORIES 104.00 . 52 00 . 52 00 .. zo ~ - 6405 _ ___. - -- - 08-OS-03 _-~---_. _.- -- TRANSTECH _----- .. _. TRAFFIC ENGINEERING CONSULTING SVCS. 18, 784. 50 . 18, 784. 50 . O. 00 ~ `~ .. __-. - __ _ ## TOTAL - . _. 319, 472. 17 3 ---.----._-- - - - 19, 122. 92 349. 25 _ _ I36 '" 3 an ... - ---.-____ - .... ...---.__..____. _. .... - --•----•----- -.-- --..~------- --~.--- --~•--- ------- ------•~ 39 iao 3~ Section 2. That the Agency Setretary shall certify to the adoption of the resolut ion and shall 42 3, deliver a certified copy to the_Ayenc~_Treas ure and shall retain a copy thereof for the .record 4a . '--.-- - _--_-_. _-_ .____.. _ ..--- -'-' 43 33 36 37 -- --- - - __ PASSED, APPROVED AND ADOPTED -_.__.. _..__. _... .._.__. .... ........ - --- - THE day o f .. ...~.. ..._... _.__.._.._...... _..._.__.. __.,...___,.._ 003 , 48 4e 3B - 49 ATTEST ANDREA L. HOOPER SECRETARY FERNANDO PEDROZA CHAIRMAN, Lynwood Redevelopment Agency FISCAL YEAR 2003-2004 RESOLUTION NO. LRA t ~~ A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD LYNWODD, CALIFORNIA ALLDWING AND APPROVING THE DEMANDS AND ORDERING _._ ____ ~ ' WARRANTS THEREFOR ' 6 i ,b ' ~~;~ 9 The Redevelopment Agency of the City of Lynwood does hereby resolve as follows:. ! ;° i2 X11 Section 1. That the demands presented, having been regularly audited, are hereby allowed and ;; ~12 , , approved, and that warrants ordered drawn therefor by the Agenc.4_Treasure to_the_~ayee and in the - amounts indicated. ,e t7 : i4 is WARRANTI#/DATA PAYEE DESC AMOUNT ------_..~.-.~--~....._-~ - AREA A ALAMEDA ,a ,e b399 08-05-03 PATRICIA SHIELDS DAYCARE DEV SVCS 2, 500. 00 2, 500. 00 0. 00 2t 2z b40b 08-05-03 ---__.A -__ INTERNATIONAL CODE COUNCIL GOV MEMBER DUES/L. MORALES 280.00 ._ _ __ .______ _~~__,_____~_-_._ _ _,_____~_.__. __~_m..______.. ._.__.__...._.__..__ . _. _ __~_~._~ . ___ ~ . __ 140.00 _._m_.____.._ _--.__.. _. - 140.00 - 2a t9 . _. ^, ~, - ~ . . . _. ~ _ . __ . . -- ----_.._- - - z3 20 2t ## TOTAL 2, 780. 00 m.oc~mmm»tsstmz tmmts 2, 640. 00 140. 00 sa»sammesa= .a~esva~mamm>a 28 27 za 29 22 23 2A _ _ .Section 2~_ That the. Agen__cyT___Secretary_shall. certify ..to__the. ad~tion of the resolut ion and.. shall 3 3t zs 76 _ delivers certifiedcopy to the Agency Treasure and shall retain a copy thereof for the record. 33 34 3S 27 za ~ ~ ~ PASSED, APPROVED AND ADOPTED THE da of 2003 3 37 29 1 3 3 30 1 4 .,~ 3z ATTEST: 4t 42 3r at ~ __. _ ' __ 1 44 46 ANDREA L. HOOPER FERNANDO PEDROZA ___ _ -_-- 5ECRETARY CHAIRMAN, Lynwood Redevelopment Agency a9 --- - -~ so s t' r ~ DATE: August 5, 2003 TO: THE HONORABLE CHAIRMA . ~PJ,ND AGENCY BOARD MEMBERS FROM: Iris Pygatt, City Treasurer ~„~, SUBJECT: TREASURER'S QUARTERLY INVESTMENT REPORT PURPOSE: The purpose of this item is to have the Lynwood Redevelopment Agency review the Treasurer's Quarterly Investment Report as required by recently enacted State Statues. BACKGROUND: In response to the crisis caused by the Orange County investment pool, the State Legislature in 1995 enacted SB564 and SB866. These laws were enacted as State Statutes to impose certain mandates regarding investment with public funds. The statutes have imposed the following mandates: 1. Annual adoption of an Investment Policy that incorporates changes mandated by the State. 2. Quarterly Investment Reports presented to the Legislative Body or Board Members. 3. Restriction on the use of certain investment instruments. The attached Treasurer's Report have been prepared to provide the following information: 1. Types of investments (including principal, market value rates, and maturity dates). 2. List of various bank accounts with banking institutions. 3. Statement informing each Agency (City, LRA, LPFA and LII) that is expected to have sufficient liquid funds to meet its pooled expenditure requirements for the next six (6) months. 4. Statement informing the Lynwood Redevelopment Agency that the investment portfolio conforms with the adopted investment policy. RECOMMENDATION: The City Treasurer respectfully recommends that the Lynwood Redevelopment Agency receive and file the attached quarterly Investment Report for the quarter ending March 31, 2003. ~ ------- AGENDA ITEM TREASURER'S QUARTERLY INVESTMENT REPORT MARCH 31, 2003 CITY OF LYNWOOD PORTFOLIO MASTER SUMMARY MARCH 31, 2003 AVERAGE --- YTM --- BOOK PERCENTAGE (%(I DAYS TO 360 365 INVESTMENTS VALUE PORTFOLIO MATURITY EQUIVALENT MANAGED POOL INVESTMENT $ 16,675,449.38 Certificate of Deposit $ 10,442,768.03 61.49 1 1 38.51 N/A N/A N/A TOTAL INVESTMENTS AND AVERAGES 27,118,217.41 100% CASH Passbook/Checking - No Yield Totals (not included in yield calculations) TOTAL INVESTMENTS IRIS PYGATT CITY TREASURER 27,118,217.41 I certify that this report accurately reflects all pooled investment policy statements adopted by the Clty Council on August 15, 1995. A copy of this policy is available at the office of the City Clerk. The Investment Program herein shown provides sufficient cash flow Iiquidy to meet 3 months estimated expenditures. The pricing of the securities are done by Union Bank of California, US Bank, and Interactive Data Services. CITY OF LYNWOOD INVESTMENT PORTFOLIO DETAILS SUMMARY MARCH 31, 2003 INVESTMENT BOOK FACE MARKET STATED --- YTM --- MATURITY DAYS ISSUER VALUE VALUE VALUE RATE 350 365 DATE TO MAT. MANAGE POOL INVESTMENTS LAIF GEN'L CITY $16,189,791.19 $16,189,791.19 $16,189,791.19 2.31% 1 1 1 LAIF LRA $485,658.19 $485,658.19 $485,658.19 2.31°r6 1 1 1 TOTAL E16,675,449.38 ;16,675,449.38 516,675,448.38 Certificate of Deposit US BANK Certificate of Deposit 80,008.07 80,008.07 80,008.07 Certificate of Deposit 3,912,538.99 3,912,538.99 3,912,538.99 BOND FUNDS 956,400.74 956,400.74 956,400.74 MONEY MARKET 5,493,820.23 5,493,820.23 _ _. _ 5,493,820.23 TOTAL 10,442,768.03 10,442,768.03 10,442,768.03 CITY OF LYNWOOD RECEIVED INTEREST PAYMENT BY ISSUER MARCH 31, 2003 CURRENT STATED DATE AMOUNT INVESTMENT ISSUER BALANCE RATE RECD RECD LAIF-CITY $16,189,791.19 2.31°k 1/15/2003 $78,672.97 LAIF - LRA $485,658.19 2.31°k 1/15/2003 $9,164.83 TOTAL 576,675,449.38 587,837.80 CITY OF LYNWOOD RECEIVED INTEREST PAYMENT BY ISSUER MARCH 31, 2003 INVESTMENT CURRENT MATURITY STATED INTEREST ISSUER BALANCE DATE RATE RECEIVED US Bank CD 80,008.07 N/A N/A 295.92 US Bank CD 3,912,538.99 N/A N/A 8,191.57 US Bank N/A BOND FUNDS 956,400.74 N/A 1,767.04 MONEY MARKET 5,493,820.23 N/A N/A 3,274.66 HUD SECTION/108 TOTAL 10,442,768.03 13,529.19 CITY OF LYNWOOD RECEIVED INTEREST PAYMENT BY ISSUER MARCH 31, 2003 FACE AVERAGE MATURITY STATED INVESTMENTS VALUE BOOK VALUE DATE RATE INTEREST PASSBOOKS/CHECKING CITY -US BANK CITY - US BANK HCDA CITY - US BANK HOME PROGRAM CITY - US BANK LYNWOOD TTEES. HUD LRA - US BANK ALAMEDA TAX INC. LRA - US BANK LYN. TR. CENTER UNF. WORKERS ACC. LRA -BANK OF AMERICA LII - US BANK TOTAL $1,943.43 $1,943.43 0.25% $1.22 $155,355.09 $155,355.09 0.75% $351.60 $188,343.84 $188,343.84 0.10°~ $41.79 $30,352.77 $30,352.77 0.75% $64.47 $58,700.82 $58,700.82 0.75% $34.98 $2,401.07 $2,401.07 0.25°r6 $1.50 $137,221.86 $137,221.86 0.50°k $171.32 $187,347.48 $187,347.48 0.75°k $322.43 $761,666.36 5761,666.36 5989.31 CITY OF LYNWOOD INVESMENT PORTFOLIO DETAILS MARCH 31, 2003 CHECKING ACCOUNTS CITY ACCOUNTS 1. GENERAL ACCOUNT 2. PAYROLL ACCOUNT 3. PETTY CASH ACCOUNT 4. WORKERS COMPENSATION 5. CITY OF LYNWOOD FLEXIBLE SPENDING ACCOUNT 6. ARNORLD LITKE FOUNDATION 7. LRA - ALAMEDA PROJECT 8. LRA - AREA A TAX INCREMENT 9. REDEVELOPMENT FUND 10. LII - CHECKING ACCOUNT 11.Banco Popular-checking RUSTEE ACCOUNTS CITY OF LYNWOOD FISCAL AGENT INVESTMENTS MARCH, 31 2003 PURCHASE DATE AR VALUE ARKET VALUE Tax Allocation Bonds, Series 1999, Alameda Oct-99 $1,310,000.00 $108,020.67 U S Bank Coporate Trust Services Lynwood Public Financing Authority May-93 $8,650,000.00 $1,509,886.75 Revenue Bonds, 1993 Series A US Bank Coporate Trust Services Lynwood Public Financing Authority Oct-95 $4,500,000.00 $2,316,007.41 Water System Improvement Project, Series 1995 U S Bank Corporate Trust Services Lynwood Public Financing Authority Oct-99 $10,235,000.00 $807,819.64 Tax Allocation Bonds, Series 1999,Series A U S Bank Corporate Trust Services Lynwood Public Financing Authority Oct-99 $3,425,000.00 $269,266.78 Tax Allocation Bonds, Series B U S Bank Corporate Trust Services Lynwood Public Financing Authority Water System Improvement Project, Series 1999 Oct-99 $5,850,000.00 $5,005,733.90 US Bank Coporate Trust Services PURCHASE PAR MARKET TRUSTEE ACCOUNTS DATE VALUE VALUE Lynwood Public Financing Authority Oct-99 $376,000.00 $1,398,022.76 Lease Revenue Bonds, Series 1999 US Bank Corporate Trust Services Lynwood Public Financing Authority Sep-96 $1,500,000.00 $677,448.85 Revenue Bonds -Civic Project Series 1996 US Bank Corporate Trust Services ~. DATE: TO: FROM: By: Subject: Purpose: AUGUST 5, 2003 HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY Lorry Hempe, Executive Director ,-,' Louis Morales, Deputy Executive Directar~°' .~ EXCLUSIVE NEGOTIATING AGREEMEN To have the Agency consider an Exclusive Negotiating Agreement (ENA") with Casa Grande Development (the "Developer") for the development of up to 120 Single-Family detached homes at the Alameda/Imperial Triangle bounded by Fernwood, Alameda and Imperial Highway. Facts: 1. On June 17, 2003 staff forwarded the Developer's proposal to the Agency via inter office mail to provide the Agency with time to review the proposal and formulate any questions in anticipation of the formal review. 2. The Developer has developed similar projects throughout the State of California. 3. The subject property is triangular in shape approximately 11.5 acres. The subject property is bounded by Imperial Highway, Alameda Avenue, and Fernwood Avenue (the "Site"). 4. The Agency previously had entered into an exclusive agreement which subsequently was not renewed and recently opted not to continue project discussions with another developer for failure to execute an agreement. The Agency, at that time chose to open up the Site to interested developers. 5. Staff presented the Agency with options for development of the Site, which included many scenarios from mixed use to exclusive uses. The proposal received from the Developer is exclusively aSingle-Family development, which was one of the options presented by staff. 6. On July 1, 2003, Staff presented the development concept to the Agency and the Agency directed staff to bring back an ENA for consideration. 7. Attached for Agency consideration is a draft ENA. H:\WORDFI LE\REDEVELP\LMORALES\CasaGrandeENA.stf.doc Analysis: The Developer's proposal calls for the development of 120 homes. The proposed homes will be two-story and the Developer is still considering the mix of two, three and four bedroom options. The attached site plan depicts a cluster type of layout with common courtyards through the project. The homes will have two car garages and will have guest parking within the project. Staff has discussed some site design improvements with the Developer. The Developer has stated that they want to work with staff to improve the design which may include less units, larger lots, etc. The Developer is requesting that the Agency review and approve the ENA so that they may continue to work with staff on options to improve the plans for the project and to initiate the requisite studies. The ENA shall be for a six-month period to determine the feasibility and viability of the project. Recommendation: Staff respectfully requests that after consideration the Agency approve the attached ENA with Casa Grande. H:\W ORDFI LE\REDEVELP\LMORALES\CasaGrandeENA.stf.doc r, ~-. EXCLUSIVE NEGOTIATING AGREEMENT This Exclusive Negotiating Agreement, dated as of this _ day of , 2003 (the "Agreement"), is made by and between the Lynwood Redevelopment Agency, a public body, corporate and politic (the "Agency"), and a Corporation (the "Developer"). For and in consideration of the mutual covenants and promises set forth herein, the Parties agree as follows: RF.[''iTAi.S This Agreement is entered into with reference to the following facts: A. In furtherance of the objectives of the California Community Redevelopment Law, the Agency has undertaken a program for the redevelopment of certain areas within the City, and in connection therewith is undertaking and carrying out activities for redevelopment in the Lynwood Redevelopment Project Area "A" (the "Project Area") pursuant to and in furtherance of the Redevelopment Plan for the Project Area. B. The subject matter of this Agreement concerns that certain real property shown on Exhibit A and commonly referred to as - Imperial Highwayand - Alameda Avenue, and - Fernwood Avenue. The subject parcels are located within the City of Lynwood, State of California and are collectively referred to herein as the "Site". The Site is comprised of approximately 11.5 +/- acres inland area. It is anticipated that, prior to the development of the Site as contemplated by this Agreement and/or a subsequent Disposition and Development Agreement ("DDA") asset forth herein below, and all parcels comprising the Site will be acquired by the Developer. The Developer desires to redevelop the Site with up to 120 Single- Family detached housing units with the Developer to provide all parking on and off-Site as appropriate and necessary for the proposed development of the Site, along with appropriate landscaping, all in accordance with applicable City regulations and standards (the "Activity"). C. As a result of the qualifications, experience and identity of Developer, which are of particular concern to the Agency, the Agency desires to enter into this Agreement with the Developer with the objective of subsequently agreeing upon and entering into a mutually acceptable DDA for the development of the Site consistent with the terms and conditions of this Agreement at the earliest practical date. D. The Agency anticipates that, following execution of this Agreement and through the period of negotiation and preparation of a DDA with respect to the Activity, the staff of the Agency, as well as certain consultants and attorneys of the Agency will devote substantial time and effort in reviewing plans, contacting and meeting with the Developer and various other necessary third parties in connection with the proposed Activity, and in negotiating and preparing a DDA consistent with the basic terms and mutual understandings established in the Agreement. H:word/redevel p/Imorales/CasaGrande.ENA Page 1 of 10 E. The Agency and the Developer desire to enter into this Agreement in order to set forth the rights and duties of the Parties during the term of the Exclusive Negotiating Period subj ect to the Owner Participation rules and regulations established for the Project Area. Section 1. Definitions. The following terms shall have the meaning ascribed thereto, unless the context requires otherwise: "Activity" means the Developer's proposed development of improvements upon the Site along with appropriate parking and landscaping, as outlined in Recital B, in accordance with plans and specifications subject to and approved by the City and Agency. "Agency" means the Lynwood Redevelopment Agency, a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Redevelopment Law" (as hereinafter defined). "Agreement" means this Exclusive Negotiating Agreement by and between the Agency and the Developer. "City" means the City of Lynwood, a municipal corporation and California general law city, organized and existing pursuant to the Constitution and laws of the State of California. "Developer" means , a California corporation, or nominee thereof. "Exclusive Negotiating Period" means the period of One Hundred Eighty (180) consecutive days beginning on the date of this Agreement, as shortened or extended by the provisions of Section 4, below. "Party" means any party to this Agreement. "Redevelopment Law" means the California Community Redevelopment Law, as amended from time to time (Health and Safety Code Sections 33000, et sec ). "Site" means that certain real property consisting of all parcels generally depicted on Exhibit A, attached hereto and incorporated herein by this reference. Section 2. Obligations of A eg ncy. During the Exclusive Negotiating Period the Agency shall use its good faith efforts to: (i) provide all environment assessment and documentation necessary for the review and approval of the Activity; (ii) diligently process and cause any required zoning or rezoning to be performed by the City of Lynwood to legally accommodate the development of the Activity consistent with the terms of the DDA subject to the discretionary judgement of the City Council and Agency Board; and (iii) provide civil engineering and/or off-site analysis, costing and design work necessary for the development of the Activity. Moreover, during the Exclusive Negotiating Period and subj ect to the Owner Participation rules and requirements established for the H:wordlredevel pllmoraleslCasaGrande.ENA Page 2 of 10 Project Area, the Agency shall not negotiate, discuss or otherwise communicate with any person or entity, other than the Developer regarding a DDA or any other agreement for the development of the Activity and/or the acquisition of the Site. Throughout the Exclusive Negotiating Period, Agency staff shall be available to meet with the Developer to discuss the Activity, the Site P lan and architectural renderings, and any other issues pertinent to the preparation of a DDA pertaining to the development of the Activity. Section 3. Obligations of Developer. (a) Prior to the expiration of the Exclusive Negotiating Period, and to the extent construction financing will need to be obtained by the Developer from an institutional lender(s) for the acquisition of the Site and development of the Activity, the Developer shall provide the Agency with a Letter of Intent (in form and substance reasonably acceptable to the Agency) executed by the Developer, indicating to the Agency's reasonable satisfaction that such an institutional lender(s), approved by the Agency, has expressed interest in financing the acquisition, construction and development of the Activity by the Developer, as the case maybe. Such Letter of Intent shall also outline the financial terms pursuant to which it would consider loaning money to the Developer for the Activity. (b) Prior to the expiration of the Exclusive Negotiating Period, the Developer shall provide an equity commitment acceptable to the Agency in a manner specifically identifying the sources of all such equity financing to be used by Developer to finance the development of the Activity. In the event that the Activity is to be financed exclusively by equity financing, such equity commitment shall be in an amount sufficient to provide for the acquisition of the Site and the development of the Activity, as the case maybe. Moreover, such equity commitment may also be in the form of letters of intent from investors of adequate credit-worthiness setting forth their intent to invest the equity required for this Activity. (c) Prior to the expiration of the Exclusive Negotiating Period, the Developer shall provide to the Agency a prof ected cost proforma, and a prof ected table describing the sources and uses of funds and cash flow projections and distributions, concerning the Activity, and a narrative describing the fundamental economics of the Activity, all in form and substance acceptable to the Agency. (d) At or prior to 4:30 p.m. on or before the 60th day after the execution date of this Agreement, or if a holiday, on the first succeeding business day, the Developer shall deliver to the Agency a Site Plan and basic architectural renderings of the Activity. The Site Plan and basic architectural renderings shall include a well defined architectural concept for the Activity showing vehicular circulation and access points, amounts and location of parking, location and size of all buildings (including height and perimeter dimensions) pedestrian circulation, landscaping and architectural character of the Activity. However, notwithstanding submission by the Developer as set forth herein, no such Site Plan or architectural renderings shall be deemed final until final approval by the A gency, p ursuant t o a D DA, a nd b y t he C ity. I n n o e vent s hall t he A gency unreasonably withhold its approval of such Site Plan or architectural renderings. H:wordlredevelp/Imorales/CasaGrande. ENA Page 3 of 10 .-~ ~ Section 4. Extension/Exclusive Nes;otiation Agreement. The Exclusive Negotiating period shall terminate on the date that is one hundred eighty (180) days after the date. This Agreement, notwithstanding that the day may fall on a Holiday. The exclusive negotiating period may be extended by the mutual consent of the parties only for up to two (2) additional periods of ninety (90) days each. The Agency's Executive Director may grant each such extension for and on behalf of the Agency in his sole and absolute discretion, unless otherwise directed by the Agency. Initials: Developer Agency If the Parties have mutually consented to an extension of the term of this Agreement as provided hereinabove, then the Parties shall, within such extended term, continue to negotiate in good faith a DDA with respect to the proposed development of the Activity. Section 5. Disposition and Development Agreement. The Parties hereby acknowledge and agree that, during the term of this Agreement, (as such term maybe extended pursuant to Section 4 above and subject to the applicable Owner Participation rules and regulations established for the Project Area), the Parties shall use their respective good faith efforts to negotiate and enter into a DDA which shall include (but not be limited to) the following: (i) the design of the Activity by the Developer, which design shall be subject to approval by the Agency and the City, (ii) the construction of the Activity by the Developer in accordance with final plans and specifications to be provided by the Developer and approved by the Agency and the City, pursuant to a detailed schedule of performance by the Developer, (iii) the operation and management of the Activity by the Developer in a good and professional manner, and subject to the covenants required by law; (iv) the maintenance of landscaping, buildings and improvements in good condition and satisfactory state of repair so as to be attractive to the residents and to the community, (v) the operation of the Activity by the Developer incompliance with all equal opportunity standards established by Federal, State and local law, (vi) the right of the Agency and the City to review the rent rolls of the Activity (to the extent applicable) and to inspect the Activity from time to time to assure compliance with the foregoing provisions, (vii) provision by the Developer to the Agency upon the Agency's request of concepts, schematics and the final plans and working drawings for the Activity and participation in presentations with respect thereto, (viii) provision by each contractor and/or subcontractor (as the case may require and as appropriate) performing work on the Activity of the requisite performance bond and labor and materials payment bond to assure completion of the Activity free of mechanics' liens, (ix) that the Activity shall be of the highest quality and standard, (x) the terms and conditions upon which Developer shall acquire the parcels, and (xi) the terms and conditions upon which either party may terminate the DDA (e.g., the discovery of environmental issues/hazardous substances on the Site, unexpected development or construction costs, inability to acquire the parcels). Section 6. Deposit: Termination: Concurrent with the execution ofthis Agreement by the Agency, the Developer shall submit to the Agency a good faith deposit (the "Deposit") in the amount of $15,000 that will be used to perform any and all related studies in connection with the prof ect i.e. H:word/redevelpA morales/CasaGrande. ENA Page 4 of 10 property appraisals, relocation studies, Fixture and Equipment appraisals, Phase I ESA, goodwill estimates, etc. The Deposit shall be in the form of cash or irrevocable letter of credit that is satisfactory to Agency Counsel. If the Deposit is paid in cash, the Agency shall deposit it in an interest-bearing account and such interest, when received by the Agency, shall become part of the Deposit. If the Deposit is in the form of an irrevocable letter of credit, the Developer shall maintain such letter of credit in full force and effect for the entire Exclusive Negotiating Period hereunder with a provision to notify the Agency immediately upon suspension or impairment, and if necessary, the Developer shall extend the letter of credit to the extent this Agreement is extended. In the event the developer has not continued to negotiate diligently and in good faith, the Agency shall give written notice thereof to the Developer, who shall then have ten (10) business days to commence negotiating in good faith. Following the receipt of such notice and the failure of the Developer to thereafter commence negotiating in good faith within such ten (10) business days, this Agreement may beterminated bythe Agency/Executive Director. In the event of such termination by the Agency, the Agency shall have the right to retain the Deposit (including any interest accrued thereon) to cover its legal expenses and incidental costs related to the carrying out of this Agreement and negotiating a DDA with the Developer, and neither party shall have any further rights against or liability to the other under this agreement. Developer shall have the right to appeal a termination to the Agency Board. In the event the Agency has not continued to negotiate diligently and in good faith the Developer shall give written notice thereof to the Agency which shall then have ten (10) business days to commence negotiating in good faith. Following the receipt of such notice and the failure of the Agency to thereafter commence negotiating in good faith within such ten (10) business days, this Agreement may be terminated by the Developer. In the event of such termination by the Developer, the Agency shall return the Deposit, and any interest earned thereon, if applicable, and neither party shall have any further rights against or liability to the other under this Agreement. Upon termination of this Agreement at the expiration of the Exclusive Negotiating Period (or such extension thereof) without a DDA being signed or submitted by the Developer, the Agency shall have the right to retain the Deposit (including any interest accrued thereon) to reimburse its legal expenses and incidental costs related to the carrying out of this Agreement and negotiating a DDA with the Developer, and neither party shall have any further rights against or liability to the other under this Agreement. If a DDA is signed and submitted by the Developer but is thereafter not approved by the Agency, then the Deposit with interest, shall be returned to the Developer, and neither party shall have any further rights against or liability to the other under this Agreement. If a DDA is timely signed and submitted by the Developer and is thereafter approved by the Agency, then the Deposit shall be applied toward any deposit required under the DDA. If a DDA has been executed by the parties, the DDA shall supercede this Agreement and thereafter govern the rights and obligations of the parties with respect to the development of the Site. Section 7. Schedule of Performance. It is the intention of the Agency and the Developer that the redevelopment of the Site be completed in a timely and an expeditious manner. H:word/redevelp/I morales/CasaGrande. ENA Page 5 of 10 Accordingly, the DDA shall provide in reasonable detail the tasks to be completed by the Parties in the development process and the projected date of completion for each such task. Section 8. Environmental. Execution of a DDA by the Agency shall be subject to compliance with the California Environmental Quality Act (California Public Resources Code § 2100 et sec . as amended: "CEQA"). Since the Activity constitutes undertakings pursuant to and in furtherance of the Redevelopment Plan for the Project Area, Section 21090 of CEQA and Section 15180 of the State CEQA Guidelines (Title 14, California Code of Regulations § 15000 et seq.) apply to the Activity. However, the Agency will evaluate the proposed Activity in accordance with Section 15168 of the State CEQA Guidelines in order to determine if the Activity is within the scope of the previously certified program environmental impact report ("EIlZ") prepared in connection with the City's adoption of the Redevelopment Plan or if the Activity requires any additional CEQA documentation to be prepared for any of the reasons specified in Section 15162 of the State CEQA Guidelines. The Developer hereby agrees to provide all reasonable assistance to the Agency necessary for the Agency to carry out its obligations under CEQA but shall be under no obligation to incur any costs or expenses outside the scope of the Developer's proposed Activity under this Agreement. Any and all costs outside the scope of the obligations under this Agreement will be identified as costs to each party under an executed DDA between the Agency and the Developer. Section 9. Nondiscrimination. The Developer shall not discriminate against nor segregate any person, or group of persons on account of race, color, creed, religion, sex, marital status, national origin, ancestry, handicap or sexual preference, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site in the formulation of the DDA or after its execution, nor shall the Developer establish or permit any such practice or practices of discrimination or segregation in the selection, location, number, use or occupancy of tenants, lessees, subtenants, sub-lessees or vendees of the land. The DDA shall contain all applicable statutory covenants. Section 10. Owner Participation Requirements. This Agreement and the obligations of the Parties set forth in this Agreement, are subject to the applicable Owner-Participation rules and regulations established for the Proj ect Area and it shall be Developer's obligation to become familiar with such requirements. Section 11. Governing Law. This Agreement and the legal relations between the parties hereto shall be governed by and construed and enforced in accordance with the laws of the State of California. Hence, for any action by either party shall be in Los Angeles County Section 12. No Other Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof. There are no agreements or understandings between the parties and no representations byeither party to the other as an inducement to enter into this Agreement, except as expressly set forth herein. Notwithstanding anything provided herein to the contrary, whether expressed or implied, the Agency shall have no obligation to enter into a DDA with the Developer and neither the Agency nor its officers, members, staff or agents have made any promises to the Developer other than to exclusively negotiate a DDA for the Site in good faith with the Developer during the Exclusive Negotiating Period, and no statements of the Agency or its H:wordlredevel pllmoraleslCasaGrande.ENA Page 6 of 10 officers, members, staff or agents as to future obligations shall be binding upon the Agency unless and until a DDA has been approved by the Agency and the City, and duly executed by the Executive Director of the Agency or his designee. Section 13. Assignment. This Agreement shall not be assigned by the Developer to any person or entity without the express written consent of the Agency; provided, however, that the Developer may assign the Agreement to a California business entity that is formed for the purpose of carrying out the Activity and for which the Developer is a member and the manager thereof. Any assignment does not release the Developer from any of its obligation hereunder. Section 14. Notices. Any notice which is required or which may given hereunder maybe delivered or mailed to the party to be notified, as follows: If to the Developer: Casa Grande Development LLC 1554 South Sepulveda Blvd., Suite 214 Los Angeles, CA 91364 Attention: Mr. Dennis Harris (310) 231-9712 With a copy to the Developer's Legal Counsel If to the Agency: with a copy to the Agency's Legal Counsel Firm's Name Street Name Number City, CA 90000 Attention: ,Esq. Lynwood Redevelopment Agency 11330 Bullis Road Lynwood, California 90262 Attention: Executive Director Agency Counsel Lynwood Redevelopment Agency 11330 Bullis Road Lynwood, CA 90262 Section 15. Public Hearin. Any DDA that may be negotiated is subject to consideration and discretion at a public hearing or hearings by the Agency and or the City. Nothing in this Agreement shall commit or be construed as committing the Agency or the City to approve any DDA. H:word/redevelp/lmorales/CasaGrande. ENA Page 7 of 10 Section 16. Counterparts. This Agreement maybe executed in counterparts, each of which when so executed shall be deemed an original, and all of which, together, shall constitute one and the same instrument. Section 17. Attorne 's~Fees. In the event that either party hereto brings action or proceeding against the other party to enforce or interpret any of the conditions or provisions of this Agreement, the prevailing party shall be entitled to recover all reasonable attorney's fees and expenses and court costs associated with such action or proceeding Section 18. Effect of Agreement. Notwithstanding any other provision of this Agreement to the contrary, the Parties expressly acknowledge and agree as follows: (a) except for those matters expressly set forth in Section 2 above, none of the matters described in this Agreement as a purported commitment or obligation of the Agency with respect to the development of the Activity shall have any effect unless and only to the extent such matters are expressly set forth in a DDA or other subsequent written agreement duly authorized and approved by the Agency and the City; (b) the Agency and Developer shall promptly commence the good faith negotiation of a DDA upon execution of this Agreement; and (c) upon the execution of a DDA by the Parties, this Agreement shall be null and void and of no effect and shall be superseded by the terms and conditions of the DDA. Notwithstanding any other provision of this Agreement to the contrary, the Developer acknowledges and expressly agrees as follows: (a) that this Agreement does not obligate the Agency in any way to approve, in whole or in part, any of the matters described in this Agreement, including, (without limitation) matters pertaining to land use entitlements or approvals, permits, waivers or reduction of fees, development or financing of the Site or any other matters to be acted on by the Agency, as applicable; (b) that all such matters shall be considered and processed by the Agency in accordance with all otherwise applicable Agency and City requirements and procedures; and (c) that the Agency reserves all rights to approve, disapprove or approve with conditions all such matters in their sole discretion. Developer acknowledges that and all expenditures made by it are not recoverable by Developer in the event that a subsequent Agreement is not approved. The Developer further acknowledges and agrees that, during the negotiations, the Parties shall conduct such economic analyses and re-use studies as may be necessary to comply with the requirements of Section 33433 of the Redevelopment Law. IN WITNESS WHEREOF, the Agency and Developer have executed this Agreement in the City of Lynwood, Los Angeles County, California, on the date hereinabove first set out. "AGENCY" LYNWOOD REDEVELOPMENT AGENCY, a public body, corporate and politic H:word/redevel p/Imorales/CasaGrande.ENA Page 8 of 10 APPROVED AS TO FORM: By: Agency Counsel "DEVELOPER" By: Lorry Hempe, Executive Director a Corporation By: Dennis Harris Its: H:word/redevel p/I moraleslCasaGrande.ENA Page 9 of 10 DATE: TO: FROM: By: Subject: Pur ose: AUGUST 5, 2003 HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY Lorry Hempe, Executive Director ., i i~ Louis Morales, Deputy Executive Director%'~ DEVELOPMENT CONCEPT REVIEW / To have the Agency review the modified development concept proposed by Hermilio Franco (the "Developer") for the development of up to 35 Single-Family detached homes on Agency owned property located on the south side of Fernwood Avenue between Atlantic Avenue and Bullis Road. Facts: 1. On June 3, 2003 staff provided the Developer's proposal to the Agency as a r eceive a nd f ile i tem w ith t he i ntent t hat i t would be brought back for Agency review with additional information. 2. The Agency acquired the subject property (the "Site") from Cal Trans and it is comprised of three separate parcels and collectively is comprised of approximately 144,000 sq. ft. or 3.3 acres (See attached map). The parcels are remnant pieces of property that were left over from the construction of the I-105 freeway. The Site has adequate access to utilities, however will require the construction of new sewer lines. 3. The City of Lynwood is in the process of updating its General Plan and the Site under the proposed update is open space. The proposed development c oncept p roposes u p t o 3 5 h omes, w hich w ould require a General Plan Amendment and Zone Change. 4. The City is deficient in both open space and housing. The Site if approved for housing will assist the City in meeting its housing needs as mandated by the State of California. 5. On June 17, 2003 the Agency reviewed the development concept and directed the Developer to revise the Site Plan and incorporate open space within the project. Analysis: The Developer's proposal calls for the development of up to 35 homes. The proposed homes will be two-story and will offer three and four bedroom plans. The Developer proposes to have the homes face each other in s-a~~~ave-a--~-~~~ common drive-way so that each home will have atwenty-five ( 5) fogk~~~TD~Caik~EM H:\W ORDFI LE\REDEVELP\LMORALES\FrancoFernwEstateDevconcptl I.stf.doc and atwo-car garage and ample front yards. The Developer proposes to develop a market rate project and sell the homes between $245,00 - $270,000. The developer has modified the Site Plan to incorporate the open space as requested by the Agency. The Developer has expressed concern over the use of the open space and how it will be maintained. If the open space is maintained by the home owners of the new development a n A ssociation w ould h ave t o b e e stablished and this would raise the monthly payments to each home owner by approximately $60. This could cause and impact on the feasibility of the homes. The open space as depicted on the Site does not function too well. The Developer has suggested that in lieu of providing the open space he would pay the park land impact fee which is approximately $3,000 per home. Should the Agency a pprove t his c oncept t he D eveloper w ould p ay the City $105,000 that would be for park improvements elsewhere where needed. Should the Agency approve the development concept for the development of housing, a General Plan Amendment and Zone Change will be required. Recommendation: Staff respectfully requests that after consideration the Agency approve the development concept for the development of up to 35 units with the in lieu payment of $3,000 per unit to offset the park impact and authorize staff to negotiate the terms of a Disposition and Development Agreement. H:\W ORDFI LE\REDEVELP\LMORALES\FrancoFernwEstateDevConcptl I.stf.doc f~ !, )0 11800 II700 -~ - • GERTRU w s~ ~ r° l~ a'.^: ~. ~'~ 11600 ~~r,•- MURIEL r~ t~ 11600 ~VE. 11600 w O 1. O o ~RST AnnyE. ~u~ m a ~ ~A N 116 TIc AVE. DATE: TO: FROM: By: Subject: Purpose: AUGUST 5, 2003 HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY Lorry Hempe, Executive Director Louis Morales, Deputy Executive Director DEVELOPMENT CONCEPT To have the Agency review and consider the development concept submitted by British Petroleum for the development of an Arco Service Station, an Am/PM Mini Mart with a carwash, and adrive-thru fast food restaurant at the southwest quadrant of the I-105 Freeway and Long Beach Boulevard. Facts: 1. On July 8, 2003, staff forwarded the proposal submitted by H & S Enterprises to Agency members via inter-office mail. 2. The Subject Site is located on the west side of Long Beach Boulevard between the I-105 Freeway and Louise Street and is approximately 57,200 sq. ft. (the "Site"). 3. The proposed Arco Station will be franchised to H & S Enterprises ("H&S") by British Petroleum. H&S has been an Arco franchisee since 1979. Analysis: The subject site is comprised of five parcels all under private or third party ownership. The businesses on the Site consist of an auto repair, used auto sales, an apartment building, a liquor store, and a real estate office. The Site is currently under utilized and is maintained in a blighted condition. The Site's location in direct proximity to the I-105 Freeway make the proposed project an ideal use that could capitalize from freeway traffic. H&S is requesting approval of the development concept so that they can pursue and undertake the pre-development work associated with the project. In addition, H&S is requesting that the Agency consider granting them an Exclusive Negotiating Agreement ("ENA") so that they may begin to solicit a use for the drive-thru restaurant. Should the Agency approve the development concept and work towards an ENA, staff will initiate the owner participation process and notify the business and property owners so that in turn such owners may state their interest for participation. ,---~- -- ------- H:word/redevelpllmoraleslArco6 PDevl pCncpt.stf AGE;: i` . Z TAM Recommendation: Staff respectfully requests that after consideration, the Agency approve the development concept submitted by H&S for the Development of an Arco AM/PM and direct staff to initiate the owner participation process and bring back an ENA for Agency consideration. H:word/redevel p/Imorales/ArcoBPDevI pCncpt.stf -,, Q ~uL _ ~ 2003 ~+ i .~ .J n , W ~ ~ .~J ~ ^~~ _ w + m R o ~~ i ~ ~- o m ~' ._ v J "~i ~ ~ O O i /~ ~ W = i z ~ ~ , H ~ ~+ ~~`ww ~ 19 Oak Cliif Dr. ~7 r~ Pomona, CA 91766 June 23, 2003 Louis E. Morales Community Development Director City of Lynwood 11330 Bullis Rd. Lynwood, CA 90262 Dear Louis: We are excited to submit the enclosed project for the Southwest quadrant of Long Beach Blvd. and Hwy. 105 in the City of Lynwood. The project consists of the development of a first class ARCO fueling facility, an am/pm mini-mart with aself- serve carwash and adrive-thru fast food restaurant on approximately 57,200 s.f. of land. We wish to enter into an Exclusive Development Agreement with the City for the properties that fall within the redevelopment area which covers the following parcels: APN 6171-022-34, 03, 33 and 05. In addition, we plan to purchase parcel APN: 6171-022-32 and we request from the City to vacate the right away at east portion on Lynwood Road in order to meet the minimal spaces requirements for the development of the project. Projec# Overview: The ARCO am/pm facility consists of an &fueling dispensers, a 2,900 s.f. food mart and a 968 s.f. carwash. The site design and layout elements of the proposed project reflect ARCO's ongoing commitment to safety. Placing our building on rear property lines opens the entire site to visibility to the street. Our floor to ceiling glass storefront is appealing to customers because it improves their ability to see in and out of the food mart day or night. Law enforcement personnel have informed us that keeping the glass free of unsightly advertising, as we do, improves their ability to survey the food mart's interior during their periodic patrols. Security cameras will be placed thought the interior and exterior at various locations. Additionally, we plan to build a police substation adjacent to the am/pm building for the use of the police workforce and CHP officers. The office will be equipped with a desk and telephone so they may use to write up reports, make phone calls and other administrative functions. Customers appreciate a business where parking is convenient and near building entrances. Ample parking near our food mart entrance contributes to our customer's decision to patronize our business, particularly at night. Our parking areas are clearly marked and maintained with sufficient lighting to ensure • Page 2 June 23, 2fl03 pedestrian and vehicular visibility and safety. We have increased parking backup distances to ensure our customers have ample room to maneuver in and out of parking spaces. Our lighting design improves our nighttime appearance and makes our customers feel welcome and secure by covering all areas where they walk. Our customers tell us they prefer our pumps flush mounted at grade because it eliminates the potential hazard of tripping as they pump gasoline or walk in between the pumps. Our pumps also provide our customers the safety of not having to leave their children unattended in the car when paying for gasoline. We offer our customers public restrooms inside the food mart. For mothers with children, traveling sales people, or other workers who use their automobiles in function of their jobs, clean and safe restrooms are a priority. All of these three elements serve public convenience and necessity. The fast food pad consists of a 1,700 s.f. Restaurant with adrive-thru. We are currently in the process of identifying the user for this pad. Company Background: Our company consists of a small group of retail professionals with extensive experience in retail operations, development and management. Mr. Mark and Mike "~ Sater have more than 25 years experience in the development and operation of ARCO am/pm stations. Currently we operate a combination of 16 ARCO gas and AROO am/pm stations. Mr. Mike Sater and Mark Sater share equal responsibilities for the development and management of the stations. Mr. Mike Sater holds a PH.D. in Business Management from Western State, CT., and M.S. in Engineering from and B.S. in Civil Engineering from CAL Poly Pomona. Mr. Mark Sater holds a M.S. in Engineering and a B.S. in Electrical Engineering from St. Joseph University, Beirut. Our employee training programs and operational procedures are fundamental to operating our stations in a safe and responsible manner. Our employees must partiapate in, and successfully complete our comprehensive training program; training includes segments on customer service, facility maintenance, responsible alcoholic and tobacxo retailing, personnel management, and workplace safety. We make random night visits to our ARCO stations, conduct in-house decoy programs and mystery shopper programs. These operation programs and our monthly personnel and safety meetings help ensure every employee on every shift understands their social and legal responsibility to our customers and the communities in which we do business. Our operation guidelines and procedures have been developed in response to community concerns, law enforcement recommendations, and our operation experience. ® Page 3 Project Economics: June 22, 2043 Based on the analysis conducted by H&S Enterprises and as shown on the attached Internal Rate of Return Analysis worksheet, the following are the estimated key results of our analysis: • The projected volume for the gasoline station is 360,000 galslmo. and $100,000 in food sales for the food mart with and increase of 1 °~ in gas and 5°I° in food per year. • We estimate 75 car washes per day far and additional $37,000 per year in revenues; additional revenues in Diesel fuel of $27,000 per year; $65,000 in rent per year for the fast #ood pad and $36,000 in ATM revenues per year. ^ Total es#ima#ed for construction of improvemerrt is $2,225,0. Land contribution of $1,200,000 for the development for a total rate of return for the project of 9.8°~ ^ We request from the City to subsidize the remaining land cost if required. In return, we estimate a minimum of $98,4 per year in local tax revenues on the gasoline and food store sales (2 cents per gallon sold and 1 % of food sales}. In conclusion, we believe the state of the art gas station faality with a leading #ranchise is ideal to the City of Lynwood and a gateway of the community. This project will also add jobs and generate revenues to the City far those needed services in the community. We look forward to review the project with the Redevelopmerrt Committee at your earliest convenience. Sincerely, r., f ,,, 'a , ~, ~~ ~, C./ Mike Sater ,~h~CEI €~rod~tc~ks ~€srxE~.,E~r ' ~ GLrfierlX~intc Drive G.a Palrn~;f, Cali;ornia `-a0~i23-1C1~a6 t>R,~i!itic~ Acictr~~ss. fox ~,U7'7 Bt,z:na Park, C:aiiie;rnia 9062,?-501 t^-s~:at estate D~t~artment 3une l 8, 2003 Mr. Louis .Morales Community Development Director City of Lynwood 11330 $ullis Road Lynwood, CA 90262 Dear Louis, The purpose of this letter is to introduce H&S Brothers Enterprise LLC, and the development of the proposed ARCO amlpm facility at the Southwest quadrant of Long Beach Blvd. and the 1.45 freeway. HBr,S Brothers' members are Mr. Mike and Mark Sater. Mike and Mark Sater have been ARCO am/pm franchisees and operators since 1979. Since the creation of am/pm, the Sater Brothers have been exemplary franchisees and. have bui}t a network of lb stores in the Southern California area. At ARCO, we understand how important it is for franchisees to be directly involved in the business. This has been the determining factor in the success of the Sater's brothers. They understand how to operate their stations and meet our customer's needs. Our franchisee training programs and operational procedure are fundamental to operating our stations in a safe and responsible.manner. Our franchisees and store employees must participate in, and successfully complete our comprehensive training program; training includes customer service, facility maintenance, personnel management and workplace safety. The proposed development consists of our newly designed gasoline station Facility with 8 "futuristic look" gasoline dispensers with our arnlpm mini-mart with an expanded food offering and new exciting graphics. The site design and layout elements reflect our company's ongoing commitment to customer service and safety. We look forward to working with H & S Brothers and the City of Lynwood in the development of this first class fueling station and convenience store project. Please feel free to contact me if you have any questions. Sincerely Yours, ~~~~ ~ .~. Mainor 1:3ojorquez Area Real Estate Manager cc: Marcos Morales /r... ° .~... as., M M y~~ 1 / • ~f/ ~. +~ ~ ~~ ~, ~~ ~ . ~•~ '_~ ~ . '~ ~ so ~ 1 1 [~ 1 Z 1 d ~ gA W 6.9 ~ ~a.g ~ 6.9 F@ 94 ,~ J --------------- LOUISE 5T. ------------------------- i ~ LOUISE ST. asa - ~ E_ ~' D "' ~ r- -----~ I ---- -- ~J r i 1 ~ I ~ I m W ~ ' m~ ~ ~~ ~~ t -~ _ ~ ; e I ~ C oo I --- - { ~, ---- ® - i ° i~ ~ ® /d ~ j m ~ ~ ~~~ / i r D r ss I k % /' ~ I I _ -- I _-~ -_-- ~ j %• m - i j I ~ ~°°' ~ .. % D i ~-- -----~ e ®® ~ i % I , z ~ ®, , ' I ~ ~ ~ '- / R. - -~ j .A.i j ~~ e ®® ~ / /~ I O -- --- ---- - / N I a ®® ®r ,~, ~ / ,` %, /' / %, / /' /, ~ ~\ % %~ ~ ~' ~ I ~ ~~. ~~~ ~'~- ~~. ~~ ~ ~ ~ ' ~ ~ I ~~-~~ -~.. ~~ ~ ~ ~ ~ ~~~~ h ~~ ~900~sg8~A~CLOisAm/Pm ARCO Prod ~ctM Coy " '.~ Lynwood. 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Lynrood, CA Retail Marketing - Dssign and Enginaring " 36005E 9LDG/CARW.22~c36/CANOPYB 4 Gnts lots Oriw 40 ; r „;.:..,,...o.~o~..w,-, 670-5300 „~~,.,,, ,,,, La Palma, CA 90623-1066 71 k j ~1 ~ ~~;: ~ P '{'rY:.' 1; k` ~t ~~~~AF~ ~ ,? YYY fy't~ sp4 4 J,'K,.,~`F ~ .i Y . Jm " N * dq ~. ~.