HomeMy Public PortalAboutA2003-09-02LRA
'~,~ LYNWOOD REDEVELOPMENT AGENCY
.'U~6" ~~' 11330 BULLIS ROAD LYNWOOD, CALIFORNIA 90262-3845 (310) 603-0220
Fernando Pedroza, cFIAIRMAN
Ramon Rodriguez, VICE CHAIRMAN
Louis Byrd, MEMBER
Arturo Reyes, MEMBER
Paul Richards, MEMBER
This Agenda contains a brief general descripfion of each ifem to be considered. Copies of the Staff reports or
other written documentation relating fo each item of business referred to on the Agenda are on file in the Offrce of
the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda
items may cal! the Cify Manager of (310) 603-0220, exf. 200.
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AGENDA
LYNWOOD REDEVELOPMENT AGENCY
SEPTEMBER 2, 2003
REGULAR MEETING
6:00 P.M.
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LYNWOOD CITY HALL, 11330 BULLIS ROAD
FERNANDO PEDROZA
CHAIRMAN
RAMON RODRIGUEZ
VICE CHAIRMAN
ARTURO REYES
MEMBER
EXECUTIVE DIRECTOR
LORRY HEMPE
LOUIS BYRD
MEMBER
PAUL H. RICHARDS, II
MEMBER
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
a.
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
PUBLIC ORAL COMMUNICATIONS
ITEMS FOR CONSIDERATION
1. MINUTES OF PREVIOUS MEETING
Special Meeting of July 28, 2003
Regular Meeting of August 5, 2003
Recess Meeting of August 5, 2003
2. RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD,
CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS
THEREFORE.
PUBLIC HEARING
3. JOINT PUBLIC HEARING FOR CONSIDERATION OF A PROPOSED THIRD
AMENDMENT TO THE AMENDED AND RESTATED DISPOSITION AND
DEVELOPMENT AGREEMENT ("ARDDA") BETWEEN THE AGENCY AND 3100 E.
IMPERIAL HIGHWAY, LLC, AND A SECOND AMENDMENT TO THE COMMERCIAL
REHABILITATION LOAN AGREEMENT ("CRLA") BETWEEN THE AGENCY AND LTC
DEVELOPMENT.
Comments:
To have the Lynwood Redevelopment Agency (the "Agency") and the Lynwood City
Council (the "City") conduct a joint public hearing to consider the amendments to the
DDA and Commercial Rehabilitation Loan Agreement in connection with the Plaza
Mexico project.
Recommendation:
Staff respectfully requests that after consideration that the Agency and City adopt and
approve the following resolutions:
A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY
APPROVING THE THIRD AMENDMENT TO THE AMENDED AND RESTATED
DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY
AND 3100 E. IMPERIAL HIGHWAY, LLC AND THE SECOND AMENDMENT TO
THE COMMERCIAL REHABILITATION LOAN AGREEMENT BETWEEN THE
AGENCY AND LTC DEVELOPMENT.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
APPROVING THE THIRD AMENDMENT TO THE AMENDED AND RESTATED
DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY
AND 3100 E. IMPERIAL HIGHWAY, LLC AND THE SECOND AMENDMENT TO
THE COMMERCIAL REHABILITATION LOAN AGREEMENT BETWEEN THE
AGENCY AND LTC DEVELOPMENT.
4. JOINT PUBLIC HEARING FOR CONSIDERATION OF A DISPOSITION AND
DEVELOPMENT AGREEMENT.
Comments:
To have the Agency and City Council conduct a joint public hearing to consider a
Disposition and Development Agreement between the Agency and Hermilio Franco for
the development of up to thirty (30) single-family Homes on Agency-owned property
located along Fernwood Avenue between Atlantic Avenue and Bullis Road.
Recommendation:
Staff respectfully requests that after consideration the Agency and City close the public
hearing and adopt the resolutions approving the Disposition and Development
Agreement between the Agency and Hermilio Franco.
5. JOINT PUBLIC HEARING FOR CONSIDERATION OF A DISPOSITION AND
DEVELOPMENT AGREEMENT.
Comments:
To have the Agency and City Council conduct a joint public hearing to consider a
Disposition and Development Agreement between the Agency and Ray Patel for the
development of up to eight (8) single-family Homes on City-owned property located on
the north side of Redwood Avenue east of State Street.
Recommendation:
Staff respectfully requests that after consideration that the Agency and the City close
the public hearing and adopt the resolutions approving the Disposition and
Development Agreement between the Agency and Ray Patel.
REGULAR ITEMS
6. INVESTMENT POLICY: LYNWOOD REDEVELOPMENT AGENCY
Comment:
The Statement of Investment Policy has been prepared to establish guidelines for the
prudent investment of the City of Lynwood's idle cash.
Recommendation:
The City Treasurer respectfully recommends that the Lynwood Redevelopment Agency
receive and file the attached Quarterly Investment Report.
INFORMATION ITEM
-[~L~7:I
CLOSED SESSION
6. 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 SEPTEMBER 16, 2003 AT 6:00 P.M. IN
THE COUNCIL CHAMBERS OF CITY HALL, 11330 BULLIS ROAD, LYNWOOD,
CALIFORNIA.
4
LYNWOOD REDEVELOPMENT AGENCY
SPE~~AL MEETING
JULY 28, 2003
The Lynwood Redevelopment Agency of the City of Lynwood met in a Special Meeting
in the Council Chambers, 11330 Bullis Road on the above date at 10:20 a.m.
Chairman Pedroza presiding.
Members Byrd, Reyes, Richards, Rodriguez and Pedroza answered the roll call.
Also present were Executive Director Hempe, Agency Counsel Casso, Secretary Hooper,
and Treasurer Pygatt.
Secretary Hooper announced that the agenda had been posted in accordance with the
Brown Act.
Agency Counsel James Casso suggested taking Public Oral Communications first, and
then recess L.R.A Closed Session Items with Lynwood City Council.
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
NONE
PUBLIC ORAL COMMUNICATIONS
NONE
Members recessed at 10:22 a.m. It was moved by Member Byrd, seconded by Member
Richards and carried to recess to City Council
REGULAR ITEM
NONE
Members reconvened at 2:25 p.m.
CLOSED SESSION
Agency Counsel Casso stated with respect to every item of business to be discussed in
Joint Closed Session Pursuant to Section 54956.8:
AGENDA ITEM
Item #1: CLOSED SESSION ITEMS
CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: North west corner Atlantic/Carlin
Assessor Parcel No. 6186-012-005,006,023,024,
027,032,033, 034,037,038, and 6186-011-083
Agency Negotiator: Agency, Agency Staff and Agency Counsel
Negotiating Parties: Lohr-Schmidt, Lozano, Flores & Golriz
Under Negotiation: Price and terms
Item #2: CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Replacement Park -Area bounded by I-105 on the
north, Virginia Avenue on the east, First Avenue on
the west, Lavinia Avenue on the south
Agency Negotiator: Agency, Agency Staff and Agency Counsel
Negotiating Parties: Agency & Various Property owners
Under Negotiating: Price and terms
Item #3: CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Casa Grande Development (Alameda Triangle)
Assessor Parcel No. 6169-001-002,008 and Caltrans
property
Agency Negotiator: Agency, Agency Staff and Agency Counsel
Negotiating Parties: Agency and Casa Grande Development
Under Negotiating: Price and terms
Item #4: CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Area under I-105 Freeway at and around Alameda
Avenue, Philadelphia Gear Lane and Imperial
Highway
Agency Negotiator: Agency, Agency Staff and Agency Counsel
Negotiating Parties: Agency &Caltrans
Under Negotiating: Price and terms
It was moved by Member Byrd, seconded by Chairman Pedroza and carried to recess to
Closed Session at 2:26 p.m.
Members reconvened at 4:23 p.m.
Agency Counsel Casso stated Members met on the aforementioned matters and stated on:
Item #1:
Item #2:
CLOSED SESSION ITEMS
CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: North west corner Atlantic/Carlin
Assessor Parcel No. 6186-012-005,006,023,024,
027,032,033, 034,037,038, and 6186-011-083
Agency Negotiator: Agency, Agency Staff and Agency Counsel
Negotiating Parties: Lohr-Schmidt, Lozano, Flores & Golriz
Under Negotiation: Price and terms
5-0 Vote -Council gave direction to staff with regards to further
negotiations.
CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Replacement Park -Area bounded by I-105 on the
north, Virginia Avenue on the east, First Avenue on
the west, Lavinia Avenue on the south
Agency Negotiator: Agency, Agency Staff and Agency Counsel
Negotiating Parties: Agency & Various Property owners
Under Negotiating: Price and terms
Council authorize the Mayor to execute an MOU which was approved
by City Council and requested City Council take a vote again in open
session with regards an MOU with the Lynwood Unified School
District.
ROLL CALL:
AYES: MEMBERS BYRD, REYES, RICHARDS,
RODRIGUEZ, AND PEDROZA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Item #3: CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Casa Grande Development (Alameda Triangle)
Assessor Parcel No. 6169-001-002,008 and Caltrans
property
Agency Negotiator: Agency, Agency Staff and Agency Counsel
Negotiating Parties: Agency and Casa Grande Development
Under Negotiating: Price and terms
5-0 Vote -Council gave direction to staff with regards to further
negotiations with Caltrans.
Item #4: CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Area under I-105 Freeway at and around Alameda
Avenue, Philadelphia Gear Lane and Imperial
Highway
Agency Negotiator: Agency, Agency Staff and Agency Counsel
Negotiating Parties: Agency & Caltrans
Under Negotiating: Price and terms
5-0 Vote -Council gave direction to staff.
ADJOURNMENT
Having no further discussion, it was moved by Vice Chairman Rodriguez, seconded by
Member Reyes and carried to adjourn the Special Council Meeting at 4:25 p.m.
Fernando Pedroza, Chairman
Andrea L. Hooper, Secretary
LYNWOOD REDEVELOPMENT AGENCY
REGULAR MEETING
AUGUST 5, 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 6:30 p.m.
Chairman Pedroza presiding.
Members Byrd, Reyes, Richards, Rodriguez and Pedroza answered roll call.
Also present were Executive Director Hempe, Agency Counsel 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
ADJOURNMENT
Having no further discussion, it was moved by Vice Chairman Rodriguez, seconded by
Member Byrd and carried to recess the Regular Council Meeting at 6:31 p.m. for the
National Night Out Program and continue the meeting to August 6, 2003 at 10:00 a.m.
Fernando Pedroza, Chairman
Andrea L. Hooper, Secretary
LYNWOOD REDEVELOPMENT AGENCY
SPECIAL MEETING
AUGUST 6, 2003
The Lynwood Redevelopment Agency of the City of Lynwood met in a Special Meeting
in the Council Chambers, 11330 Bullis Road on the above date at 11:10 a.m.
Chairman Pedroza presiding.
Members Byrd, Reyes, Richards, Rodriguez and Pedroza answered roll call.
Also present were Executive Director Hempe, Agency Counsel 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 PREVIOUS MEETING
It was moved by Member Richards, second by Member Byrd to approve the following
minutes.
• Regular Meeting, June 17, 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 Byrd, second by Member Richards to adopt the following
Resolution.
RESOLUTION N0.2003.029 ENTITLED:
A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF THE
CITY 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
REGULAR ITEMS
Item #3: TREASURERS QUARTERLY INVESTMENT REPORT
The purpose of this item is to have the Lynwood Redevelopment Agency review the
Treasurers Quarterly Investment Report as required by recently enacted State Statues.
It was moved by Member Richards, second by Vice Chairman Rodriguez and carried to
receive and file the attached quarterly Investment Report for the quarter ending March
31, 2003.
ROLL CALL:
AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Item #4: EXCLUSIVE NEGOTIATING AGREEMENT (CASA GRANDE
DEVELOPMENT)
To have the Agency consider an Exclusive Negotiating Agreement (ENA) with Casa
Grande Development (the Developer) fort he development of up to 120 Single-Family
detached homes at the Alameda/Imperial Triangle bounded by Fernwood, Alameda and
Imperial Highway.
It was moved by Member Richards, second by Member Byrd to approve the attached
ENA with Casa Grande Agreement.
ROLL CALL:
AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Item #5: DEVELOPMENT CONCEPT
Director of Redevelopment Louis Morales -Stated that 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.
It was moved by Member Richards, second by Member Byrd to approve the
Development Concept but to Reserve Five (5) lots for open space and work with
Community Access Housing for twenty five (25) homes and five (5) lots for open space.
ROLL CALL:
AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Item #6: DEVELOPMENT CONCEPT
Director of Redevelopment Louis Morales -Stated that the Agency review and consider
the development concept submitted by British Petroleum for the Development of an
ARCO Service Station, an AM/PM Mini Market with a car wash, and adrive-thru fast
food restaurant at the South West quadrant of the I-105 Freeway and Long Beach
Boulevard.
It was moved by Member Richards, second by Vice Chairman Rodriguez and carried to
approve the 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.
ROLL CALL:
AYES: MEMBER BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
CLOSED SESSION
Agency Counsel Casso stated with respect to every item of business to be discussed in
Joint Close Session pursuant to Section 54956.8:
Item #7: Conference with Real Property Negotiators
Property: 3100 E. Imperial Highway
Item #8: Conference with Real Property Negotiators
Property: 3000 Imperial Highway (K&K Site)
Item #9: Conference with Real Property Negotiators
Property: Parcel No. 6169-012-016
It was moved by moved by Member Reyes, second by Vice Chairman Rodriguez and
carried to recess to Joint Close Session at 2:00 p.m.
Members reconvened at 4:30 p.m.
Agency Counsel Casso stated the Members met on the aforementioned matters and stated
on:
Item #7: Property: 3100 E. Imperial Highway - No reportable action
Item #8: Property: 3000 Imperial Highway (K&K Site) - No reportable action
Item #9: Property: Parcel No. 6169-012-0 l 6 - No reportable action
ADJOURNMENT
Having no further discussion, it was moved by Member Richards, seconded by Chairman
Pedroza and carried to adjourn the Special Meeting at 4:40 p.m.
Fernando Pedroza, Chairman
Andrea L. Hooper, Secretary
: i
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~, RESOLUTION NO. LRA
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!, ', A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD Q,' e
~ - - _ _ LYNWOOD, CALIFORNIA AtL[fWING AND A?PRf1ViNG THE DEMANDS- AND CJRflERING ______ _ _ _ _ ~_ _ _ __ _ _-_
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I WARRANTS THEREFOR W w
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1z The Redevelopment Agency of the City of Lynwood does hereby revolve as follows: +4
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Section 1. That the demands
presented, having been regularly audited, are hereby
allowed and Is
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1° approved, and that warrants ordered drawn th erefor 6y the Agency Treasure to the payee and in the
~ amounts indicated.
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WARRANT#/DATE
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PAYEE
----_.----------------------- ~
DESC AMOUNT
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AREA A
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ALAMEDA
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23
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:o -.. _. __...___.__
._._._
6414 09-02-03 -____-.-. -.-_ _-__. __... _..
PATRICIA SHIELDS
-- - _._
._ _- _--_-.__ _- __..-. _____. - _. -___.-.. -_. _.
DAYCARE DEV SVGS 2, 500. 00 ___ _____--~- _...
2. 500. p0 ... _.... .._...__.-__ .___
0. 00 24
ze
I: ~ 6415 09-0~-A3 ICSC SPRIN6_CONVENTION AQOTH RENTAL 500. 00 250. 00 250. 00 2]
2
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24
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## TOTAL 3, 000. 00
c._._~._------- ---
_... _____ . _._........_ _.___._...___. ..... _. _ .. ........... .__.._.._ _. -... _... ...... _. _ .
2, 750. 00
---------~ .-__ _
250. Ob
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30
31
3
20
26
27 ~
Section ~: That-the Agency
Secretary shall certify to the adoption of the resolution and shall 3
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381
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38
ANDREA L. HOOPER FERNANDO PEDROZA
BEGRf-FARY-------------------- ----- -------LfiAIRMAIV;-C~fi1~~o`d"-R"edeveTopment ~ency
DATE: SEPTEMBER 2, 2003
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Lorry Hempe, Executive Director
By: Louis Morales, Deputy Executive Director
SUBJECT: JOINT PUBLIC HEARING FOR CONSIDERATION OF A
PROPOSED THIRD AMENDMENT TO THE AMENDED AND
RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT
("ARDDA") B ETWEEN T HE AGENCY AND 3100E .IMPERIAL
HIGHWAY, LLC. AND A SECOND AMENDMENT TO THE
COMMERCIAL REHABILITATION LOAN AGREEMENT
("CRLA") BETWEEN THE AGENCY AND LTC DEVELOPMENT.
Purpose:
To have the Lynwood Redevelopment Agency (the "Agency") the Lynwood City
Council (the "City") conduct a joint public hearing to consider the amendments to
the DDA and Commercial Rehabilitation Loan Agreement in connection with the
Plaza Mexico project.
Facts:
1. The original DDA and environmental findings were approved at a joint
public hearing on November 2, 1999.
2. The DDA was amended in the form of an ARDDA and was subsequently
amended via a First Amendment, Second Amendment, and now for
consideration a Third Amendment to the ARDDA.
3. The proposed development under the DDA and the ARDDA and its
respective amendments thereafter will remain the same and are
consistent with the redevelopment goals of the Agency and
Redevelopment Project Area "A'.
4. A d raft Third A mendment t o A RDDA a nd Second A mendment t o C RLA
have been prepared and are attached for Agency and City review and
consideration.
AGENDA I T~~~Z
i
Third Amendment to the ARDDA Summary:
The purpose of the proposed Third Amendment to the ARDDA is to effectuate
the Redevelopment Plan for the Redevelopment Project Area "A" and to dispose
of Agency parcels that were not previous contemplated for disposition when the
DDA and subsequent amendments were approved. Additionally, given the design
and m odified configuration t hat the project h as undertaken the Agency will be
considering accepting other features and upgrades in-lieu of installing permanent
amusement rides as was originally provided for in the DDA. The Third
Amendment to the ARDDA will also provide a n ew project completion d ate of
December 31, 2004.
Under the Third Amendment to ARDDA the Agency will convey Agency-owned
property to the Developer to be used for parking. The Agency parcels are under-
utilized parcels, which have been owned by the Agency for over fifteen years
(See attached Assessor's map). Agency ownership of these properties has
meant that the parcels have been tax exempt and have not been producing tax
increment to the Agency. The Agency, through the proposed Third Amendment
to the ARDDA has the opportunity put such parcels back in to circulation under
private ownership and begin collecting much needed increment while providing
the necessary parking for the project. The parcels are approximately 14,126 sq.
ft. and have a value of $113,000. In the addition, and under the original DDA, the
Agency-owned former City-Yard was to be conveyed to the Developer at a cost
of $300,000. The Agency had an obligation to spend up to $7.55 million for
property acquisition, which included the Agency-owned City Yard. A balance of
$225,117 remains of the $7.55 million obligation which be applied towards the
$300,000 acquisition of the City Yard leaving a shortfall of $74,883. Since the
properties are needed for the project and will not be a out of pocket expense to
the Agency upon conveyance, the Agency's participation will increase from $7.55
million to $7.74 million.
Summary of Second Amendment to the CRIA.
The Second Amendment to the CRLA essentially provides that $2 Million may, in
addition to rehabilitation, also be used for new construction. The proposed
amendment also provides a new completion date of December 31, 2003, which
will coincide with the completion date of the improvements under the Third
Amendment to the ARDDA. The $2 million will still be secured with a 2"d trust
deed which subordinate to a 1St trust deed. The Developer will have to complete
all the improvements to the Towne Center and be issued a Certificate of
Completion before the 2"d trust deed is conveyed to the Developer. The Second
Amendment to the CRlr4 also provides for assignment provided that the
assigned entity meet the provision established by the DDA and any and all
amendments.
Recommendation:
Staff respectfully requests that after consideration that the Agency and City adopt
and approve the following resolutions:
A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY
APPROVING THE THIRD AMENDMENT TO THE AMENDED AND
RESTATED DISPOSITOIN AND DEVELOPMENT AGREEMENT
BETWEEN THE AGENCY AND 3100 E. IMPERIAL HIGWAY, LLC AND
THE SECOND AMENDMENT TO THE COMMERCIAL REHABILITATION
LOAN AGREEMENT BETWEEN THE AGENCY AND LTC
DEVELOPMENT.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
APPROVING THE THIRD AMENDMENT TO THE AMENDED AND
RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT
BETWEEN THE AGENCY AND 3100 E. IMPERIAL HIGHWAY, LLC AND
THE SECOND AMENDMENT TO THE COMMERCIAL REHABILITATION
LOAN AGREEMENT BETWEEN THE AGENCY AND LTC
DEVELOPMENT.
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33433 SUMMARY REPORT
PURSUANT TO SECTION 33433 OF
THE CALIFORNIA HEALTH AND SAFETY CODE
FOR THE CONVEYANCE OF REAL PROPERTY TO 3100 E. IMPERIAL HIGHWAY,
A CALIFORNIA LIMITED LIABILITY COMPANY.
LYNWOOD, CALIFORNIA
The Lynwood Redevelopment Agency (Agency) proposes to convey for redevelopment
purposes certain real property in the Lynwood Redevelopment Project Area A (the "Site"),
pursuant to the California Community Redevelopment Law.
The property is owned by the Lynwood Redevelopment Agency (the "Agency") and is
proposed to be conveyed to the Developer and is commonly referred to as 6171-006-
902,907, and 909 (the "Property"). The Property is proposed to be transferred to 3100 E.
Imperial Highway, LLC (the "Developer") and will be used as parking by the Developer in
connection with the development of proposed project.
The proposed Agreement calls for the Agency to dispose of the Site, subject to certain
terms contained in the proposed Third Amendment to the Amended and Restated
Disposition and Development Agreement. The Agency's costs to implement the proposed
Agreement include the cost of staff time and value of the parcels. The Agency is being
asked to convey the property to the Developer in-lieu of payment.
The estimated cost of the Site to the Agency is:
Real Property Value $113,000
Difference of Value City Yard $ 74,883
Staff and Attorney time $1,200
TOTAL $189,083
RESOLUTION NO.
A RESOLUTION OF CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE
PROPOSED THIRD AMENDMENT TO THE AMENDED AND RESTATED
DISPOSITION DEVELOPMENT AGREEMENT BY AND BETWEEN THE LYNWOOD
REDEVELOPMENT AGENCY AND 3100 E. IMPERIAL HIGHWAY, LLC AND THE
SECOND AMENDMENT TO THE COMMERCIAL REHABILITATION LOAN
AGREEMENT BETWEEN THE AGENCY AND LTC DEVELOPMENT
WHEREAS, the Redevelopment Plan for Lynwood Project Area "A"
("Redevelopment Plan"), was duly approved and adopted on July 3, 1973 by Ordinance
No. 945 and subsequently amended on December 27, 1973 by Ordinance No. 960, on
August 19, 1975 by Ordinance No. 990, on June 1, 1976 by Ordinance No. 1000, on
December 7, 1976 by Ordinance No. 1010, on December 16, 1980 by Ordinance No.
1111, July 19, 1988 by Ordinance No. 88-1308, and on March 20, 2001 by Ordinance
No. 1504; and
WHEREAS, the Lynwood Redevelopment Agency ("Agency") is engaged in
activities necessary to execute and implement the Redevelopment Plan for
Redevelopment Project Area "A" ("Redevelopment Project") in the City of Lynwood and in
order to do so the Agency proposes to approve a Third Amendment to the Amended and
Restated Disposition and Development Agreement ("ARDDA") and Second Amendment
to the Commercial Rehabilitation Loan Agreement ("CRLA"), collectively referred
hereafter as the Amendments, which provides for conveyance of Agency property for the
continued development of a retail center; and
WHEREAS, the Agency desires to consider the disposition of the Agency property
in connection with the development of the Site by the Developer; and
WHEREAS, the proposed Amendments contain all the provisions, terms,
conditions and obligations required by state and local law; and
WHEREAS, the Developer possesses the qualifications and parcels necessary to
insure development of the Site proposed in accordance with the purposes and objectives
of the Redevelopment Plan; and
WHEREAS, the Agency and City Council of the City of Lynwood have held a duly
noticed joint public hearing on the proposed Amendments and related agreements;
WHEREAS, the Agency and the City Council have duly considered the proposed
Amendments and believe that development pursuant thereto is in the best interest of the
H:WORD/REDEVELP/LMORALES/PlazaMex3rdAmndDDACCRESO
City of Lynwood and in furtherance of the goals and objectives of the Lynwood
Redevelopment Agency to reduce blight in the Project Area;
NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Lynwood
and the Lynwood Redevelopment Agency as follows:
Section 1. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the Amendments are in the best interest of the City
of Lynwood and the health, safety, morals and welfare of its residents, and in accord with
the public purposes and provisions of applicable State and local law.
Section 2. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the proposed Amendments are necessary to
effectuate the purpose of the Redevelopment Plan for the Redevelopment Project.
Section 3. The Agency and the City Council hereby find and determine that the
development of the Site pursuant to the proposed Amendments will be consistent with the
development permitted at that location by Lynwood's Zoning Ordinance.
Section 4. The Agency has held a joint public hearing with the City Council and has
received, heard and considered all oral and written objections to the proposed
Amendments and to the actions connected therewith, and hereby overrules all such oral
and written objections.
Section 5. The Executive Director of the Agency is hereby authorized to execute
the Amendments.
Section 6. The Executive Director of the Agency, or his designee, is hereby
authorized, on behalf of the Agency and the City, to sign all documents necessary and
appropriate to carry out and implement the Amendments, and to administer and
implement the Agency's obligations, responsibilities and duties to be performed under the
Amendments.
APPROVED AND ADOPTED this 2nd day of September, 2002.
FERNANDO PREDROZA, MAYOR
ATTEST:
H: W ORD/RED EV ELP/LMORALES/PlazaMex3rdAmndDDACCRESO
Andrea L. Hooper, City Clerk
APPROVED AS TO FORM:
James Casso
City Attorney
Lorry Hempe,
City Manager
APPROVED AS TO CONTENT:
Louis Morales, Director
Redevelopment Department
H:WORD/REDEVELP/LMORALES/PlazaMex3rdAmndDDACCRESO
RESOLUTION NO.
A RESOLUTION OF LYNWOOD REDEVELOPMENT AGENCY APPROVING THE
PROPOSED THIRD AMENDMENT TO THE AMENDED AND RESTATED
DISPOSITION DEVELOPMENT AGREEMENT BY AND BETWEEN THE LYNWOOD
REDEVELOPMENT AGENCY AND 3100 E. IMPERIAL HIGHWAY, LLC AND THE
SECOND AMENDMENT TO THE COMMERCIAL REHABILITATION LOAN
AGREEMENT BETWEEN THE AGENCY AND LTC DEVELOPMENT
WHEREAS, the Redevelopment Plan for Lynwood Project Area "A"
("Redevelopment Plan"), was duly approved and adopted on July 3, 1973 by Ordinance
No. 945 and subsequently amended on December 27, 1973 by Ordinance No. 960, on
August 19, 1975 by Ordinance No. 990, on June 1, 1976 by Ordinance No. 1000, on
December 7, 1976 by Ordinance No. 1010, on December 16, 1980 by Ordinance No.
1111, July 19, 1988 by Ordinance No. 88-1308, and on March 20, 2001 by Ordinance
No. 1504; and
WHEREAS, the Lynwood Redevelopment Agency ("Agency") is engaged in
activities necessary to execute and implement the Redevelopment Plan for
Redevelopment Project Area "A" ("Redevelopment Project") in the City of Lynwood and in
order to do so the Agency proposes to approve a Third Amendment to the Amended and
Restated Disposition and Development Agreement ("ARDDA") and Second Amendment
to the Commercial Rehabilitation Loan Agreement ("CRLA"), collectively referred
hereafter as the Amendments, which provides for conveyance of Agency property for the
continued development of a retail center; and
WHEREAS, the Agency desires to consider the disposition of the Agency property
in connection with the development of the Site by the Developer; and
WHEREAS, the proposed Amendments contain all the provisions, terms,
conditions and obligations required by state and local law; and
WHEREAS, the Developer possesses the qualifications and parcels necessary to
insure development of the Site proposed in accordance with the purposes and objectives
of the Redevelopment Plan; and
WHEREAS, the Agency and City Council of the City of Lynwood have held a duly
noticed joint public hearing on the proposed Amendments and related agreements;
WHEREAS, the Agency and the City Council have duly considered the proposed
Amendments and believe that development pursuant thereto is in the best interest of the
H: W ORD/REDEVELP/LMORALES/Plaza Mex3rdAmnd DDALRARESO
City of Lynwood and in furtherance of the goals and objectives of the Lynwood
Redevelopment Agency to reduce blight in the Project Area;
NOW, THEREFORE, IT IS RESOLVED by the Lynwood Redevelopment Agency
and City Council of the City of Lynwood as follows:
Section 1. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the Amendments are in the best interest of the City
of Lynwood and the health, safety, morals and welfare of its residents, and in accord with
the public purposes and provisions of applicable State and local law.
Section 2. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the proposed Amendments are necessary to
effectuate the purpose of the Redevelopment Plan for the Redevelopment Project.
Section 3. The Agency and the City Council hereby find and determine that the
development of the Site pursuant to the proposed Amendments will be consistent with the
development permitted at that location by Lynwood's Zoning Ordinance.
Section 4. The Agency has held a joint public hearing with the City Council and has
received, heard and considered all oral and written objections to the proposed
Amendments and to the actions connected therewith, and hereby overnales all such oral
and written objections.
Section 5. The Executive Director of the Agency is hereby authorized to execute
the Amendments.
Section 6. The Executive Director of the Agency, or his designee, is hereby
authorized, on behalf of the Agency and the City, to sign all documents necessary and
appropriate to carry out and implement the Amendments, and to administer and
implement the Agency's obligations, responsibilities and duties to be performed under the
Amendments.
APPROVED AND ADOPTED this 2nd day of September, 2002.
FERNANDO PREDROZA, CHAIRMAN
ATTEST:
H:WORD/RE DEVE LP/LMORALES/PlazaMex3rdAm nd DDALRARESO
Andrea L. Hooper, Secretary
APPROVED AS TO FORM:
James Casso
Agency Counsel
Lorry Hempe,
Executive Director
APPROVED AS TO CONTENT:
Louis Morales,
Deputy Executive Director
H: W ORDlRE D EVELPlLMORALES/Plaza Mex3rdAm nd DDALRARESO
---,
THIRD AMENDMENT TO THE AMENDED AND RESTATED
DISPOSITION AND DEVELOPMENT AGREEMENT
(3100 E. Imperial Hwy., LLC)
THIS THIRD AMENDMENT TO THE AMENDED AND RESTATED
DISPOSITION AND DEVELOPMENT AGREEMENT (this "Third Amendment") is
entered into by and between the LYNWOOD REDEVELOPMENT- AGENCY, a public
body, corporate and politic, exercising governmental functions and powers, and
organized and existing under Chapter 2 of the Community Redevelopment Law of the
State of California (California Health and Safety Code Sections 33000, et seq.) (the
"Agency") and 3100 E. IMPERIAL HWY., LLC, a California limited liability company (the
"Developer"), with reference to the following:
A. The Agency continues to implement the Redevelopment Plan for the
Lynwood Redevelopment Project Area A (the "Project Area"), which was approved and
adopted on July 3, 1973 by Ordinance No. 945 by the City Council of the City of
Lynwood (the "City"); subsequently amended on December 27, 1973 by Ordinance No.
960; on August 1 9, 1 975 b y 0 rdinance N o. 9 90; o n J une 1, 1 976 b y 0 rdinance N o
1000; on December 7, 1976 by Ordinance No. 1010; on December 16, 1980 by
Ordinance No. 111; and on July 19, 1988 by Ordinance No. 88-1308 (collectively the
"Redevelopment Plan"). Said Ordinance and the Redevelopment Plan are incorporated
herein by reference and made a part hereof as though set forth in full.
B. The Agency and the Developer entered into a Disposition and
Development Agreement on or about December 22, 1999 (the "Original DDA"). On
October 18, 2000, the Agency and the Developer entered into an Amended and
Restated Disposition and Development Agreement (the "Amended and Restated DDA"),
which superseded the Original DDA. On July 24, 2002, the Agency and the Developer
entered into a First Amendment to Amended and Restated Disposition and
Development Agreement (the "First Amendment"}. On , 2003, the Agency and the
Developer entered into a Second Amendment to Amended and Restated Disposition
and Development Agreement (the "Second Amendment"), (the Amended and Restated
DDA, the First Amendment and the Second Amendment are collectively referred to as
the "DDA").
C. Pursuant to the DDA, the Agency provided monies to the Developer for
the purpose of acquisition and construction of the Project, as defined in the DDA, in
exchange for, among other things, the rehabilitation and improvement of certain
buildings, and the provision of specified project enhancements.
D. Developer now desires to acquire Agency owned property for the
construction of parking and circulation improvements, to provide substitute
enhancements and to extend the completion date of the Project to December 31, 2004.
ThirdAmToARDDASN8-26-03.doc 1
E. The Agency is prepared to transfer to Developer Agency owned real
property consisting of the parcels described in Exhibit "A" attached hereto (the "Agency
Parcels", and the parcel described in Exhibit "B" attached hereto (the "City Yard
Parcel").
F. The Agency and the Developer wish to clarify and modify their respective
rights and obligations under the DDA as set forth in this Third Amendment.
NOW, THEREFORE, for valuable consideration, the receipt of which is hereby
acknowledged, the Agency and the Developer agree the DDA is amended to include the
following:
Agency Fund Balance.
Pursuant to the DDA Agency is obligated to expend $7.55 million for the
purchase of p roperty a nd related relocation. The balance of Agency funds currently
available for this purpose is $328,617. From that amount Agency will pay relocation
costs of $103,500 to or on behalf of Instant Whip for the relocation of that business.
This leaves a remaining balance of $225,117 (hereinafter "Agency Fund Balance"). The
Agency a nd D eveloper a gree t hat t he A gency F and B alance s hall b e a pplied a s s et
forth in this Third Amendment. The Agency acknowledges that all relocation obligations
arising out of or in connection with the DDA (except the $103,500 payment to Instant
Whip to be made by the Agency) have been satisfied.
2. Purchase and Sale of Agency Properties
The Agency agrees to sell to the Developer, and the Developer agrees to
purchase from the Agency, the Agency Parcels (Exhibit "A") and the City Yard Property
(Exhibit "B"). Developer shall accept such transfer of the property from Agency, and
shall pay to Agency as consideration for such transfers, an aggregate purchase price of
$225,117 for the Agency Parcels and the City Y and P roperty (the " Purchase P rice").
Upon the conveyance to Developer or Developer's nominee of fee simple title to the
Agency Parcels and the City Yard Property, the Agency Fund Balance shall be applied
to pay the Purchase Price in full. Developer shall have no obligation to pay any amount
to the Agency or any third party in connection with the conveyance of the Agency
Parcels and the City Yard Property.
The Agency shall convey fee simple title to the Agency Parcels and the City
Yard Property to Developer or Developer's nominee within five (5) days after the
Agency's approval of this Third Amendment. Developer shall have the right to
designate LTC Development Corp., a California corporation as the grantee of all or a
portion of the Agency Parcels and/or the City Yard Property.
ThirdAmToARDDASN8-26-03.doc 2
5. Project Enhancements.
Agency will accept the water element feature as more specifically shown
on Exhibit "C" attached hereto and the facade improvements developed as a replica of
the State of Jalisco Capital Building, as more specifically shown on Exhibit "D" in place
of the amusement rides required in the DDA.
6. Completion Date.
The completion date for the Project, including this Third Amendment, is
extended to December 31, 2004.
7. Attorneys Fees
Developer shall be responsible for the payment of attorney fees and costs
in the event of any enforcement action necessitated by the Agency regarding any terms
and conditions in this Third Amendment.
8. Agency May Terminate Entitlements
If Developer materially fails to fulfill its obligations under this Third
Amendment and fails to cure such failure within the cure period specified in the DDA,
Agency may terminate or modify any entitlements granted under the DDA or this Third
Amendment.
9. Integration
The remaining terms of the DDA are not affected by this Third Amendment
and such terms shall remain in force and effect. This Third Amendment integrates all of
the terms and conditions of the Amended and Restated DDA and those mentioned
herein or incidental hereto. All waivers of the provisions of this Third Amendment must
be in writing and signed by the appropriate authorities of the party to be charged, and all
amendments and modifications hereto must be in writing and signed by the appropriate
authorities of Agency and Developer.
10. Prospective Application
The terms and conditions of this Third Amendment shall apply
prospectively only and not retroactively.
11. No Joint Venture
It is not the intent of the parties to create a joint venture or partnership;
nothing contained herein shall be deemed to create a joint venture or partnership
between the parties to this Third Amendment.
ThirdAmToARDDASN8-26-03.doc 3
12. Effective Date
The Effective Date of this Third Amendment shall be the date when it shall
have been signed by the Executive Director of the Lynwood Redevelopment Agency.
IN WITNESS WHEREOF, the parties hereto have executed this Third
Amendment as of the Effective Date.
Dated: , 2003
LYNWOOD REDEVELOPMENT AGENCY
By:
Lorry Hempe,
Executive Director
Dated:
2003
3100 E. IMPERIAL HWY., LLC,
a California Limited Liability Company
By:
Min Chae
Managing Member
By:
Donald Chae
Managing Member
APPROVED AS TO FORM:
By:
Agency Counsel
ThirdAmToARDDASN8-26-03.doc 4
EXHIBIT "A"
AGENCY PARCELS LEGAL DESCRIPTION
ThirdAmToARDDASN8-26-03.doc
EXHBIT "B"
CITY YARD PROPERTY LEGAL DESCRIPTION
ThirdAmToARDDASN8-26-03.doc
EXHIBIT "C"
DESCRIPTION OF WATER ELEMENT
ThirdAmToARDDASN8-26-03.doc
Recording Requested by:
LYNWOOD REDEVELOPMENT AGENCY
When Recorded Return to
and Mail Tax Statements to:
Lynwood Redevelopment Agency
11330 Bullis Avenue
Lynwood, California 90262
Space Above for Recorders Use
FREE RECORDING REQUESTED
(Government Code Section 6103)
EXEMPT FROM TRANSFER TAX
GOVERNMENTAL TRANSFER
SUBORDINATION, NONDISTURBANCE, AND ATTORNMENT AGREEMENT
This Subordination, Nondisturbance, and Attornment Agreement (this "Agreement") is
entered into as of , by the LYNWOOD REDEVELOPMENT
AGENCY ("Lender"), LTC DEVELOPMENT, INC., a California corporation ("Landlord") and
ALPHA BETA COMPANY, a California corporation ("Tenant").
Recitals
A. Landlord and Tenant are parties to that certain written Shopping Center Lease
dated September 16, 1987 ("Original Lease") originally between LYNWOOD ASSOCIATES, a
California general partnership, as landlord ("Original Landlord") and FOODS COMPANY
MARKETS, INC., a California corporation, as tenant ("Original Tenant"), as supplemented by
that certain Rent Commencement Agreement, Certificate of Tenancy, Lease Addendum, dated
November 22, 1988; that certain Letter, dated August 31, 1993, from Original Landlord's agent
to Tenant; and that certain Letter, dated September 4, 1998, from Tenant to Original Landlord;
that certain First Amendment to Lease dated July 3, 2003 between Landlord and Tenant; and that
certain First Agreement for Implementation of First Amendment to Lease dated August _, 2003
between Landlord and Tenant (collectively the "Lease"), with respect to the premises legally
described therein and commonly known as 11245 Long Beach Blvd., Lynwood, California (the
"Premises"). The Premises are part of the Lynwood Town Center shopping center, which is
more particularly described in the Deed of Trust, hereafter defined.
B. Lender is the beneficiary under a Deed of Trust dated and recorded
on in the Official Records of Los Angeles County, California as instrument
number (the "Deed of Trust") encumbering the Property, which
secures a note payable to Lender in the original principal amount of $2,000,000.00.
1241 \001 \ATTORN.AGT
C. On the terms and conditions in this Agreement, the parties desire to subordinate
Tenant's leasehold interest in the Premises to the lien of the Deed of Trust and to assure Tenant
possession of the Premises for the entire term of the Lease, even though Lender may foreclose
the lien of the Deed of Trust before expiration of the Lease.
Therefore, in consideration of the mutual covenants and agreements contained in this
Agreement, the parties agree as follows:
Section 1. Subordination.
The Lease shall be subject and subordinate to the lien of the Deed of Trust and to any
renewals, modifications, consolidations, replacements and extensions of the Deed of Trust to the
full extent of the indebtedness secured by the Deed of Trust.
Section 2. Nondisturbance.
So long as Tenant is not in default, beyond any period given to Tenant to cure a default,
in the payment of rent or in the performance of any of the terms, covenants, or conditions of the
Lease, Tenant's possession of the Premises and Tenant's rights and privileges under the Lease,
including any extensions or renewals, shall not be diminished or interfered with by Lender during
the term of the Lease or any extensions or renewals. So long as Tenant is not in default, beyond
any period given Tenant to cure such default, in the payment of rent or in the performance of any
of the terms, covenants, or conditions of the Lease, Lender will not join Tenant as a party for the
purpose of terminating or otherwise affecting Tenant's interest under the Lease, in any action of
foreclosure or other proceeding brought by Lender to enforce any rights arising because of any
default under the Deed of Trust unless joinder is necessary under any statute or law to secure the
remedies available to Lender under the Deed of Trust, but joinder shall be for that purpose only
and not for the purpose of terminating the Lease or affecting Tenant's right to possession of the
Premises.
Section 3. Attornment.
If the Landlord's interest in the Premises is transferred to and owned by Lender or any
successor of Lender ("Acquiring Party")because of foreclosure, sale under a private power under
a deed of trust, other proceedings brought by Lender, or by any other manner, Acquiring Party
shall thereby succeed to Landlord's interest as Landlord under the Lease, and Tenant shall be
bound to the Acquiring Party, and Acquiring Party shall be bound to Tenant under all of the
terms, covenants, and conditions of the Lease for the balance of the remaining term, including
any extensions or renewals thereof. Tenant agrees to attorn to Acquiring Party as the Landlord,
with the attornment being effective and self-operable immediately upon Acquiring Party
succeeding to the interest of Landlord under the Lease, all without the execution by the parties of
any further instruments. However, Tenant shall not be obligated to pay rent to Acquiring Party
until Tenant receives written notice from Acquiring Party that Acquiring Party has succeeded to
Landlord's interest under the Lease and directing where rent should be mailed. The respective
1241\0011ATTORN.AGT
rights and obligations of Tenant and Acquiring Party upon attornment, to the extent of the then
remaining balance of the term of the Lease, shall be the same as in the Lease, which is
incorporated by reference in this Agreement. If Acquiring Party succeeds to Landlord's interest
in the Lease, Tenant shall be bound to Acquiring Party under all the terms, covenants, and
conditions of the Lease, and Acquiring Party shall, after Acquiring Party's succession to
Landlord's interest under the Lease, have the same remedies against Tenant for the breach of any
agreement in the Lease that Landlord might have had against Tenant.
Section 4. New Lease and Further Instruments.
Immediately upon request by the Acquiring Party, Tenant and Acquiring Party shall enter
into a new written lease for the remainder of the original term of the Lease on the same terms and
conditions as the Lease, except for any changes made necessary because of the substitution of the
Acquiring Party in place of Landlord.
Section 5. Definitions.
The term Lender or any similar term shall include Lender, and any successors, or assigns
of Lender, and shall include any party that succeeds to Landlord's interest in the Premises by
foreclosure of the Deed of Trust, a deed in lieu of foreclosure, or a sale under a private power
contained in the Deed of Trust, or by any other proceeding. The term Deed of Trust or any
similar term shall include the Deed of Trust and any amendments or addenda thereto. The term
Landlord shall include Landlord and the successors, heirs, and assigns of Landlord. The term
Tenant shall include Tenant and the successors, heirs, and assigns of Tenant. The term Lease
shall include the Lease and all amendments, addenda, extensions, and renewals thereto or
thereof.
Section 6. No Change in Lease.
Landlord and Tenant agree not to change, alter, amend, or otherwise modify the Lease
without the prior written consent of Lender. Any change, alteration, amendment, or other
modification to the Lease without the prior written consent of Lender shall be void as to Lender
and Acquiring Party.
Section 7. Modification.
This Agreement may not be modified other than by an agreement in writing signed by the
parties hereto, or by their respective successors in interest.
Section 8. Attorney Fees.
If any party commences any action against any other party based on this Agreement, the
prevailing party shall be entitled to recover reasonable attorney fees, expenses, and costs of suit.
1241 \001 \ATTORN.AGT
Section 9. Notices.
In this Agreement, wherever it is required or permitted that notice or demand be given by
any party to another party, that notice or demand shall be given in writing and forwarded by
certified mail, return receipt requested, addressed as follows:
For Landlord: LTC Development, Inc.
3100 East Imperial Highway
Lynwood, California 90262
Attention: President
For Tenant: Alpha Beta Company
c/o Ralphs Grocery Company
1100 West Artesia Boulevard
Compton, CA 90220
For Lender: Lynwood Redevelopment Agency
11330 Bullis Avenue
Lynwood, California 90262
Attention: Executive Director
Any party may change an address given for notice by giving written notice of that change
by certified mail to all other parties.
Section 10. Successors.
This Agreement shall be binding on and inure to the benefit of the parties and their
respective heirs, successors, and assigns.
Section 11. Authority.
If any party is a corporation, partnership, or other entity, all individuals executing this
Agreement on behalf of such corporation, partnership, or other entity hereby represent and
warrant that they are authorized to do so and that this Agreement is binding upon such
corporation, partnership or other entity.
Section 12. Headings.
The headings of this Agreement are for reference only and shall not limit or define any
meaning of this Agreement.
Section 13. Counterparts.
1241 \001 \ATTORN.AGT
This Agreement maybe executed in one or more counterparts, each of which is an
original, but all of which shall constitute one and the same instrument.
Section 14. Governing Law.
This Agreement shall be construed in accordance with and governed by California law.
The parties have duly executed this Agreement as of the date first above written.
LENDER: LYNWOOD REDEVELOPMENT AGENCY,
a public body corporate and politic
By:
Its:
LANDLORD: LTC DEVELOPMENT, INC.,
a California corporation
By:
Its:
TENANT: ALPHA BETA COMPANY,
a California corporation
By:
Its:
STATE OF CALIFORNIA
COUNTY OF
On
before me,
personally appeared
1241 \0011ATTORN.AGT
personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signatures} on the instrument
the person(s), or the entity upon behalf of which the person{s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature
(Seal)
STATE OF CALIFORNIA
COUNTY OF
On before me, ,personally appeared
personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature (Seal)
STATE OF CALIFORNIA
COUNTY OF
On before me, ,personally appeared
personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature
(Seal)
1241 \001 \ATTORN.AGT
SECOND AMENDMENT TO COMMERCIAL REHABILITATION LOAN AGREEMENT
(LTC Development Corp.)
THIS SECOND AMENDMENT TO COMMERCIAL REHABILITATION LOAN
AGREEMENT (this "Second Amendment") is entered into by and between the
LYNWOOD REDEVELOPMENT AGENCY, a public body, corporate and politic,
exercising governmental functions and powers, and organized and existing under
Chapter 2 of the Community Redevelopment Law of the State of California (California
Health and Safety Code Sections 33000, et seq.) (the "Agency") and LTC
DEVELOPMENT CORP., a California corporation (the "Owner"), with reference to the
following:
A. The Agency continues to implement the Redevelopment Plan for the
Lynwood Redevelopment Project Area A (the "Project Area"}, which was approved and
adopted on July 3, 1973 by Ordinance No. 945 by the City Council of the City of
Lynwood (the "City"); subsequently amended on December 27, 1973 by Ordinance No.
960; on August 1 9, 1 975 b y 0 rdinance N o. 9 90; o n J une 1, 1 976 b y 0 rdinance N o
1000; on December 7, 1976 by Ordinance No. 1010; on December 16, 1980 by
Ordinance No. 111; and on July 19, 1988 by Ordinance No. 88-1308 (collectively the
"Redevelopment Plan"). Said Ordinance and the Redevelopment Plan are incorporated
herein by reference and made a part hereof as though set forth in full.
B. The Agency and the Owner have entered into that certain Commercial
Rehabilitation Loan Agreement dated April 17, 2000, as amended by that certain First
Amendment to Commercial Rehabilitation Loan Agreement (the "CRLA"). Unless
otherwise defined in this Second Amendment, all capitalized terms shall have the
meanings ascribed to such terms in the CRLA.
C. Pursuant to the CRLA, the Agency made a "vanishing" loan to Owner in
the original principal amount of $2,000,000 (the "Agency Loan"). The CRLA provides
for the loan to be forgiven upon Owner's expenditure of $2,000,000 for improvements
on the Site as more particularly described in the CRLA.
D. During the planning process, the parties have become aware of
opportunities for improving the Site which the parties believe will more effectively
promote the redevelopment of the Site and the Project Area than the measures set forth
in the CRLA. This Second Amendment amends the Scope of Development to conform
to the refined development concept for the Site which has emerged from the planning
process.
E. The only feasible method of financing the improvements desired by
Agency and Owner requires that (a) Owner's obligations to the Agency in connection
with the Agency Loan be made junior and subordinate to Owner's private acquisition
and construction financing (collectively the "Bank Loan"); and (b) the conditions for
SecondAmtoCRLASn8-26-03.doc
discharge of Owner's obligations under the Agency Note be modified as provided
hereafter.
F. The Agency and the Owner wish to clarify and modify their respective
rights and obligations under the CRLA as set forth in this Second Amendment.
NOW, THEREFORE, for valuable consideration, the receipt of which is hereby
acknowledged, the Agency and the Owner agree the CRLA is amended to include the
following:
1. Scope of Development
The Scope of Development attached to the Agreement as Attachment No. 4 is
hereby deleted in its entirety and replaced with the following: "Owner shall spend not
less than $2,000,000 on the improvements described in Exhibit A to this Scope of
Development or such other improvements as may be approved in writing by the
Agency's Executive Director." The new Exhibit A to the Scope of Development is
attached to this Second Amendment as Exhibit A.
2. Owner's Expenditure of Funds
Upon 9weeFSAgency's furnishing of a Certificate of Completion pursuant to
Section 213 of the CRLA, ,
~este~ Owner's obligations under the Agency Note shall be deemed fully performed
and discharged in their entirety, and, within five (5) days after Agency furnishes the
Certificate of Completion, ,the Agency shall return
the original Note to Owner and shall cause the Agency Deed of Trust to be reconveyed
to Owner. Upon Owner's request, Agency shall promptly execute all documents and
perform all acts reasonably necessary or desirable to carry out or acknowledge the
effectiveness of the foregoing provisions of this Section 2.
3. Subordination Agreement
Agency hereby agrees to subordinate the Agency Loan to private financing to be
obtained by Owner in the approximate amount of $13,500,000, which will serve as a
construction loan and a refinancing of Owner's acquisition loan. Without need for
further approval from the Agency, the Agency's Executive Director shall promptly
execute on behalf of the Agency a subordination agreement in a form reasonably
requested by Owner's lender.
4. Completion Date.
The completion date for the Project, including this Second Amendment, is
extended to December 31, 2004.
2
SecondAmtoCRLASn8-26-03.doc
5. Attorneys Fees
Owner shall be responsible for the payment of attorney fees and costs in
the event of any enforcement action necessitated by the Agency regarding any terms
and conditions in this Second Amendment.
6. Agency May Terminate Entitlements
If Owner materially fails to fulfill its obligations under this Second
Amendment and fails to cure such failure within the cure period specified in the CRLA,
Agency may terminate or modify any entitlements granted under the CRLA or this
Second Amendment.
7. I ntegration
The remaining terms of the CRLA are not affected by this Second
Amendment and such terms shall remain in force and effect. This Second Amendment
integrates all of the terms and conditions of the CRLA and those mentioned herein or
incidental hereto. All waivers of the provisions of this Second Amendment must be in
writing and signed by the appropriate authorities of the party to be charged, and all
amendments and modifications hereto must be in writing and signed by the appropriate
authorities of Agency and Owner.
8. Prospective Application
The terms and conditions of this Second Amendment shall apply
prospectively only and not retroactively.
9. No Joint Venture
It is not the intent of the parties to create a joint venture or partnership;
nothing contained herein shall be deemed to create a joint venture or partnership
between the parties to this Second Amendment.
10. Effective Date
The Effective Date of this Second Amendment shall be the date when it
shall have been signed by the Executive Director of the Lynwood Redevelopment
Agency.
3
SecondAmtoCRLASn8-26-03.doc
IN WITNESS WHEREOF, the parties hereto have executed this Second
Amendment as of the Effective Date.
Dated: , 2003
LYNWOOD REDEVELOPMENT AGENCY
By:
Lorry Hempe,
Executive Director
Dated:
2003
LTC DEVELOPMENT CORP.,
a California corporation
By:
APPROVED AS TO FORM:
By:
Agency Counsel
4
SecondAmtoCRLASn8-26-03.doc
EXHIBIT "A"
PRE-APPROVED IMPROVEMENTS
SecondAmtoCRL,ASn8-26-03.doc
Recording Requested by:
LYNWOOD REDEVELOPMENT AGENCY
When Recorded Retum to and Mail Tax Statements to:
Lynwood Redevelopment Agency
11330 Bullis Avenue
Lynwood, California 90262
Attention: Executive Director
Space Above for Recorders Use
FREE RECORDING REQUESTED
(Government Code Section 6103)
EXEMPT FROM TRANSFER TAX
GOVERNMENTAL TRANSFER
GRANT DEED
For v aluable c onsideration, receipt of which is hereby acknowledged, the LYNWOOD
REDEVELOPMENT AGENCY, a public body, corporate and politic, herein called "Grantor,"
acting under the Community Redevelopment Law (California Health and Safety Code §§ 33000,
et seq.) of the State of California, hereby grants to 3100 E. IMPERIAL HWY., LLC, a California
limited liability company, herein called "Grantee," the real property described in the "Legal
Description of Property" provided as Exhibit A, and shown on the "Property Map" provided as
Exhibit B (the "Property"), both of which exhibits are attached hereto and incorporated herein by
this reference.
The Property is within Redevelopment Project Area "A" o f t he C ity o f L ynwood (the
"Project Area") in the County of Los Angeles, and is conveyed in accordance with and subject to
the provisions of the Redevelopment Plan for the Project Area adopted by the City Council of the
City of Lynwood on July 3, 1973 by Ordinance 945; subsequently amended December 27, 1973
by Ordinance No. 960 and on August 19, 1975 by Ordinance No. 990, and on June 1, 1976 by
Ordinance No. 1000, and on December 7, 1976 by Ordinance No. 1010, and on December 16,
1980 by Ordinance No. 1111, on July 19, 1988, by Ordinance No.88-1308. Said Ordinances and
the Redevelopment Plan as amended are incorporated herein by reference and made a part
thereof as though set forth in full. The Redevelopment Plan as amended is hereinafter referred to
as the "Redevelopment Plan."
All of the terms, covenants and conditions of this Grant Deed shall be binding upon and
shall inure to the benefit of the Grantee and the permitted successors and assigns of the Grantee.
Wherever the term "Grantee" is used herein, such term shall include any permitted nominee,
assignee or successor in interest as herein provided.
1. Grantee hereby covenants and agrees for itself, its successors, its assigns, and
every successor in interest to the Property or any part thereof, that in t he c onstruction o f t he
improvements on the Property pursuant to that certain Commercial Rehabilitation Loan
Agreement between Grantor and Grantee, as amended, Grantee will not discriminate against any
ImperialGrantDeed.doc
employee or applicant for employment because of sex, marital status, race, color, creed, religion,
national origin, or ancestry.
2. Grantee covenants and agrees for itself, its successors, its assigns and every
successor in interest to the Property or any part thereof, there shall be no discrimination against
or segregation of any person, or group of persons, on account of sex, marital status, race, color,
creed, religion, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy,
tenure or enjoyment of the Property nor shall the Grantee itself or any person claiming under or
through it establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees of the Property.
3. Grantee shall refrain from restricting the rental, sale, or lease of the Property on
the basis of sex, marital status, race, color, creed, religion, a ncestry o r n ational o rigin o f a ny
person. All such deeds, leases or contracts shall contain or be subject to the following
nondiscrimination or nonsegregation clauses:
(a) In deeds: "The grantee herein covenants by and for himself or herself, his
or her heirs, executors, administrators, and assigns, and all persons claiming under
or through them, that there shall be no discrimination against or segregation of,
any person or group of persons on account of race, color, creed, religion, sex,
marital status, national origin or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee
or any person claiming under or through him or herself, establish or permit any
such practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees in the premises herein conveyed. The foregoing covenants
shall run with the land."
(b) In leases: "The lessee herein covenants by and for himself or herself, his
or her heirs, executors, administrators and assigns, and all persons claiming under
or through him or her, and this lease is made and accepted upon and subject to the
following conditions:
That there shall be no discrimination against or segregation of any person
or group of persons, on account of race, color, creed, religion, sect, marital
status, national origin or ancestry, in the leasing, subleasing, transferring,
use, occupancy, tenure or enjoyment of the land herein leased nor shall the
lessee himself or herself, of any person claiming under or through him or
her, establish or permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number, use or
occupancy of tenants, lessees, subtenants, sublessees, or vendees in the
premises herein leased."
(c) In contracts: "There shall be no discrimination against or segregation of,
any p erson, o r g roup o f p ersons o n a ccount o f r ace, c olor, c reed, religion, sex,
ImperialGrantDeed.doc
marital status, national origin or ancestry in the sale, lease, sublease, transfer, or
use, occupancy, tenure or enjoyment of the land, nor shall the transferee himself
or herself, or any person claiming under or through him or her, establish or permit
any practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessees, or vendees of the land."
4. This Grant Deed shall not merge any other agreement between Grantor and
Grantee.
5. The covenants and restrictions contained in this Grant Deed shall not benefit nor
be enforceable by any owner of any other real property within or outside the Project Area except
the Grantor, the Grantee, the City of Lynwood (the "City") and their respective assigns and
successors in interest.
6. The covenants established herein shall, without regard to technical classification
and designation, be binding on Grantee and any successor in interest to the Property or any part
thereof for the benefit and in favor of the Grantor, its successors and assigns, and the City.
7. Breach of any of the covenants, conditions, restrictions, or reservations contained
in this Grant Deed shall not defeat or render invalid the lien of any mortgage or deed of trust
made in good faith and for value as to the Property, whether or not said mortgage or deed of trust
is subordinated to this Grant Deed, but unless otherwise herein provided, the terms, conditions,
covenants, restrictions and reservations of this Grant Deed shall be binding and effective against
the holder and any owner of the Property, or any part thereof, whose title thereto is acquired by
foreclosure, trustee's sale, or otherwise.
8. The covenants against discrimination as set forth in paragraphs 1, 2, and 3 above
shall remain in effect in perpetuity.
IN WITNESS WHEREOF, Grantor and Grantee have caused this instrument to be
executed on their behalf by their respective officers thereunto duly authorized, this day of
September, 2003.
LYNWOOD REDEVELOPMENT AGENCY
a public body, corporate and politic
("Grantor")
Date:
By:
Executive Director
ImperialCrrantDeed.doc
ACKNOWLEDGMENT AND ACCEPTANCE
Grantee hereby accepts and approves each of the conditions, covenants and restrictions
set forth in this Grant Deed.
3100 E. IMPERIAL HWY., LLC,
a California limited liability company ("Grantee")
Date:
By:
4
ImperialGrantDeed.doc
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
[To Be Added]
ImperialGrantDeed.doc
EXHIBIT B
PROPERTY MAP
[To Be Added]
ImperialCrrantDeed.doc
State of California
County of
On ,before me, ,
personally appeared , personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
(SEAL)
Notary's Signature
IrnperialGrantDeed.doc
EXHIBIT "D"
REPLICA FACADE DESCRIPTION
ThirdAmToARDDASN8-26-03.doc
DATE: SEPTEMBER 2, 2003
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Lorry Hempe, Executive Director
By: Louis Morales, Deputy Executive Direct
SUBJECT: JOINT PUBLIC HEARING FOR CONSIDERATION FOR
CONSDERATION OF A PROPOSED DISPOSITION AND
DEVELOPMENT AGREEMENT ("DDA").
Pur ose:
To have the Lynwood Redevelopment Agency (the "Agency") the Lynwood City
Council (the "City") conduct a joint public hearing to consider a DDA between the
Agency and Hermilio Franco for the development of up to Thirty (30) Single-
Family homes on Agency-owned property located along Fernwood Avenue
between Atlantic Avenue and Bullis Road.
Facts:
1. 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.
2. The Property is able to accommodate up to 35 homes.
3. The Agency approved the development concept that included the
development of Thirty (30) homes. The Agency also approved the
incorporation of five open space areas of up to 5,000 sq. ft. each at the
respective corners of the project. The Agency also approved that Five (5)
of the Homes be set aside to be developed by Access Community
Housing.
3. The Developer agreed to the conditions set by the Agency and the project
will be subject to, where applicable, Section 25-14.7 Trip Reduction and
Travel Demand provisions.
AGENDA ITEM
DDA Summary:
The purpose of the DDA is to effectuate the Redevelopment Plan for the
Redevelopment Project Area "A" and to dispose of Agency parcels that normally
without Agency assistance could not be developed. The Developer proposes to
construct Twenty-five (25) Single-Family Homes that will be comprised of three
and four bedroom units. Five will be disposed to Access Family Housing for
Development and will be made to match the architectural design of the project.
The Homes will be for sale units and will have a price range of $265,000 -
$280,000.
As previously mentioned the Agency purchased the Property in the amount of
$3,000. The Property could accommodate the proposed units, however will
require the installation of new sewer lines, which will could cost between
$150,000 - $200,000. The DDA contemplates that the Developer will be
responsible for all costs associated with the project. The Developer will pay the
City a Parkland Impact Fee of $3,000 per lot or $75,000 upon the sale of the
homes. The DDA also contemplates the all City permits will be differed until such
time that the homes are complete and sold. The Developer will pay 100% of the
fees that are due to the City. The City and Agency will not incur any costs as a
result of the project. The only item that will require Agency/City consideration will
the disposition of the Property. The disposition also contemplates a differed
arrangement for payment due upon the sale of the homes. Thus, given that the
Agency only paid $3,000 for the property, the Agency may opt to do any of the
following:
1. Recoup only its initial investment $3,000 for the property.
2. Accept $3,000 for each home and recover the Agency investment
upon the sale of each home.
3. Take a percentage of the sales cost in exchange for the Property.
4. Accept market rate value for the Property. Market rate value could be
between $30,000 to $45,000 per lot.
The Developer was proposing to develop the project in phases and had initially
requested that the Agency fund the first phase in the form of a low interest loan,
which would be paid back to the Agency upon the sale of the homes under the
first phase.
Staff recommends that the Agency select the o ptimum return of t he Agency's
invest of $3,000 (option 4) and approve to enter into DDA with the Developer.
Recommendation:
Staff respectfully requests that after consideration that the Agency and City close
the Public Hearing and adopt the resolutions approving the Disposition and
Development Agreement between the Agency and Hermilio Franco.
33433 SUMMARY REPORT
PURSUANT TO SECTION 33433 OF
THE CALIFORNIA HEALTH AND SAFETY CODE
FOR THE CONVEYANCE OF REAL PROPERTY TO HERMILIO FRANCO
The Lynwood Redevelopment Agency (Agency) proposes to convey for redevelopment
purposes certain real property located just outside Lynwood Redevelopment Project Area
A (the "Site"), pursuant to the California Community Redevelopment Law.
The property is owned by the Lynwood Redevelopment Agency (the "Agency") and is
proposed to be conveyed to the Developer and is located on the south side of Fernwood
Avenue between Atlantic Avenue and Bullis Road (the "Property"). The Property is
proposed to be transferred to the Developer and will be used for the development of 30
Single-Family homes.
The proposed Agreement calls for the Agency to dispose of the Property, subject to
certain terms contained in the proposed Disposition and Development Agreement. The
Agency's costs to implement the proposed Agreement include the cost of staff time. The
Agency will at minimum receive the cost of its initial investment.
The estimated cost of the Site to the Agency is:
Real Property cost $3,000
Sale of Land $3,000
Staff and Attorney time $1,200
TOTAL $1,200
RESOLUTION NO.
A RESOLUTION OF CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE
PROPOSED DISPOSITION DEVELOPMENT AGREEMENT BY AND BETWEEN THE
LYNWOOD REDEVELOPMENT AGENCY AND HERMILIO FRANCO FOR THE
DEVELOPMENT OF SINGLE-FAMILY HOMES ON AGENCY PROPERTY LOCATED
ON FERNWOOD AVENUE
WHEREAS, the Redevelopment Plan for Lynwood Project Area "A"
("Redevelopment Plan"), was duly approved and adopted on July 3, 1973 by Ordinance
No. 945 and subsequently amended on December 27, 1973 by Ordinance No. 960, on
August 19, 1975 by Ordinance No. 990, on June 1, 1976 by Ordinance No. 1000, on
December 7, 1976 by Ordinance No. 1010, on December 16, 1980 by Ordinance No.
1111, July 19, 1988 by Ordinance No. 88-1308, and on March 20, 2001 by Ordinance
No. 1504; and
WHEREAS, the Lynwood Redevelopment Agency ("Agency") is engaged in
activities necessary to execute and implement the Redevelopment Plan for
Redevelopment Project Area "A" ("Redevelopment Project") in the City of Lynwood and in
order to do so the Agency proposes to enter into a Disposition and Development
Agreement ("DDA") with Hermilio Franco ("Developer"), which provides for the
development of aSingle-Family homes on Agency-owned property; and
WHEREAS, the Agency desires to consider the disposition of the Agency property
in connection with the development of the Site by the Developer; and
WHEREAS, the proposed DDA contains all the provisions, terms, conditions and
obligations required by state and local law; and
WHEREAS, the Developer possesses the qualifications and parcels necessary to
insure development of the Site proposed in accordance with the purposes and objectives
of the Redevelopment Plan; and
WHEREAS, the Agency and City Council of the City of Lynwood have held a duly
noticed joint public hearing on the proposed DDA and related agreements;
WHEREAS, the Agency and the City Council have duly considered the proposed
DDA and believe that development pursuant thereto is in the best interest of the City of
Lynwood and in furtherance of the goals and objectives of the Lynwood Redevelopment
Agency to reduce blight in the Project Area;
H: W ORD/REDEYE LP/LMORALES/Fernwd EstatDDACCRESO
NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Lynwood
and the Lynwood Redevelopment Agency as follows:
Section 1. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the DDA is in the best interest of the City of Lynwood
and the health, safety, morals and welfare of its residents, and in accord with the public
purposes and provisions of applicable State and local law.
Section 2. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the proposed DDA is necessary to effectuate the
purpose of the Redevelopment Plan for the Redevelopment Project.
Section 3. The Agency and the City Council hereby find and determine that the
development of the Site pursuant to the proposed DDA will be consistent with the
development permitted at that location by Lynwood's Zoning Ordinance.
Section 4. The Agency has held a joint public hearing with the City Council and has
received, heard and considered all oral and written objections to the proposed DDA and
to the actions connected therewith, and hereby overrules all such oral and written
objections.
Section 5. The Executive Director of the Agency is hereby authorized to execute
the DDA.
Section 6. The Executive Director of the Agency, or his designee, is hereby
authorized, on behalf of the Agency and the City, to sign all documents necessary and
appropriate to carry out and implement the DDA, and to administer and implement the
Agency's obligations, responsibilities and duties to be performed under the DDA.
APPROVED AND ADOPTED this 2"d day of September, 2003.
ATTEST:
Andrea L. Hooper, City Clerk
FERNANDO PEDROZA, MAYOR
Lorry Hempe,
City Manager
H:WORD/REDEVELP/LMORALES/FemwdEstatDDACCRESO
APPROVED AS TO FORM:
James Casso
City Attorney
APPROVED AS TO CONTENT:
Louis Morales, Director
Redevelopment Department
H:WORD/REDEV E LP/LMORALES/Fernwd EstatD DACCRESO
RESOLUTION NO.
A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY APPROVING THE
PROPOSED DISPOSITION DEVELOPMENT AGREEMENT BY AND BETWEEN THE
LYNWOOD REDEVELOPMENT AGENCY AND HERMILIO FRANCO FOR THE
DEVELOPMENT OF SINGLE-FAMILY HOMES ON AGENCY PROPERTY LOCATED
ON FERNWOOD AVENUE
WHEREAS, the Redevelopment Plan for Lynwood Project Area "A"
("Redevelopment Plan"), was duly approved and adopted on July 3, 1973 by Ordinance
No. 945 and subsequently amended on December 27, 1973 by Ordinance No. 960, on
August 19, 1975 by Ordinance No. 990, on June 1, 1976 by Ordinance No. 1000, on
December 7, 1976 by Ordinance No. 1010, on December 16, 1980 by Ordinance No.
1111, July 19, 1988 by Ordinance No. 88-1308, and on March 20, 2001 by Ordinance
No. 1504; and
WHEREAS, the Lynwood Redevelopment Agency ("Agency") is engaged in
activities necessary to execute and implement the Redevelopment Plan for
Redevelopment Project Area "A" ("Redevelopment Project") in the City of Lynwood and in
order to do so the Agency proposes to enter into a Disposition and Development
Agreement ("DDA") with Hermilio Franco ("Developer"), which provides for the
development of aSingle-Family homes on Agency-owned property; and
WHEREAS, the Agency desires to consider the disposition of the Agency property
in connection with the development of the Site by the Developer; and
WHEREAS, the proposed DDA contains all the provisions, terms, conditions and
obligations required by state and local law; and
WHEREAS, the Developer possesses the qualifications and parcels necessary to
insure development of the Site proposed in accordance with the purposes and objectives
of the Redevelopment Plan; and
WHEREAS, the Agency and City Council of the City of Lynwood have held a duly
noticed joint public hearing on the proposed DDA and related agreements;
WHEREAS, the Agency and the City Council have duly considered the proposed
DDA and believe that development pursuant thereto is in the best interest of the City of
Lynwood and in furtherance of the goals and objectives of the Lynwood Redevelopment
Agency to reduce blight in the Project Area;
H:WORD/REDEVELP/LMORALES/Fernwd EstatDDALRARESO
NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Lynwood
and the Lynwood Redevelopment Agency as follows:
Section 1. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the DDA is in the best interest of the City of Lynwood
and the health, safety, morals and welfare of its residents, and in accord with the public
purposes and provisions of applicable State and local law.
Section 2. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the proposed DDA is necessary to effectuate the
purpose of the Redevelopment Plan for the Redevelopment Project.
Section 3. The Agency and the City Council hereby find and determine that the
development of the Site pursuant to the proposed DDA will be consistent with the
development permitted at that location by Lynwood's Zoning Ordinance.
Section 4. The Agency has held a joint public hearing with the City Council and has
received, heard and considered all oral and written objections to the proposed DDA and
to the actions connected therewith, and hereby overrules all such oral and written
objections.
Section 5. The Executive Director of the Agency is hereby authorized to execute
the DDA.
Section 6. The Executive Director of the Agency, or his designee, is hereby
authorized, on behalf of the Agency and the City, to sign all documents necessary and
appropriate to carry out and implement the DDA, and to administer and implement the
Agency's obligations, responsibilities and duties to be performed under the DDA.
APPROVED AND ADOPTED this 2nd day of September, 2003.
ATTEST:
FERNANDO PEDROZA, CHAIRMAN
Andrea L. Hooper, Secretary Lorry Hempe,
Executive Director
H:WORD/REDEVELPlLMORALES/FernwdEstatDDALRARESO
APPROVED AS TO FORM:
James Casso
Agency Counsel
APPROVED AS TO CONTENT:
Louis Morales, Deputy
Executive Director
H:WORD/REDEV E LP/LMORALES/Fernwd EstatDDALRARESO
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
MAKING CERTAIN ENVIRONMENTAL FINDINGS WITH RESPECT TO THE
PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT BY AND
BETWEEN THE LYNWOOD REDEVELOPMENT AGENCY AND HERMILIO
FRANCO
WHEREAS, the Lynwood Redevelopment Agency {the "Agency")wishes
to consider the approval of a Disposition and Development Agreement ("DDA")
by and between the Agency and Hermilio Franco (the "Developer")for the
disposition of certain real property located on Fernwood Avenue between
Atlantic Avenue and Bullis Road (the "Site"); and
WHEREAS, a Project Environmental Impact Report was prepared for the
1980 Amendment to Redevelopment Project Area "A" ("1980 EIR"); and
WHEREAS, the development advances the goals of the 1980
Amendment to Lynwood Redevelopment Project Area "A" ("1980 Amendment")
described in the 1980 EIR which goals are to (1) arrest the decline and decay
and the spread of blight throughout the project area, (2) restore and revitalize
existing residential, commercial and industrial areas to viable centers serving
community and regional needs, and (3) stimulate and attract private investment
thereby improving the City's economic health, employment opportunities and tax
base; and
WHEREAS, the 1980 EIR addresses the environmental impacts of the
development pursuant to the proposed DDA; and
WHEREAS, the Agency has prepared an Initial Study and found and
determined that a subsequent EIR is not needed because none of the following
condition of Section 15162 of Guidelines for the Implementation of the California
Environmental Quality Act ("CEQA Guidelines") has occurred:
Subsequent changes are proposed in the project which will require
important revisions to the 1980 EIR due to the involvement of new
significant impacts not considered in the 1980 EIR; and
Substantial changes occurred with respect to the circumstances
under the project was undertaken due to the involvement of the
new significant impacts not covered in the 1980 EIR; and
H:WORD/REDEVELPlLMORALESlURBANDDACCENVRESO
New information of substantial importance to the project has
become available.
NOW, THEREFORE, the Lynwood City Council hereby resolves as
follows:
Section 1. The redevelopment of the Site provided for by the DDA is
covered by the 1980 EIR which serves as the Final Environmental Impact Report
for the entire Amendment, which Amendment constitutes the "Project".
Section 2. The redevelopment of the Site provided for by the DDA was
considered in the 1980 EIR as part of the Project.
Section 3. The 1980 EIR was considered prior to the approval of the DDA.
The Agency hereby finds: the redevelopment pursuant to the proposed DDA is
within the scope of the 1980 Amendment previously approved; the effects of the
redevelopment pursuant to the proposed Final Environmental Impact Report
together with all other development. All feasible mitigation measures and
alternatives developed in the previous Final Environmental Impact Report for the
Project are incorporated in this Development. No new information of substantial
importance to the Project has become available. The final Environmental
Impact report, therefore, is determined to be adequate to serve as the
environmental impact report for the Development and satisfies all the
requirements of CEQA.
Section 4. Applicable mitigation measures identified in the Final
Environmental Impact Report have been incorporated into this Development
which mitigate any potential significant environmental impacts thereof.
Section 5. The Final Impact Report incorporates certain mitigation
measures which are to mitigate or avoid significant effects on the environment,
and the Agency hereby adopts the following program for reporting and
monitoring the implementation of such mitigation measures pursuant to Public
Resources Code Section 21081.6:
A. The Developer selected by the Agency shall enter into an
Agreement with the Agency to submit all plans and specifications for the
Development to the Agency for its approval, at which time the Agency shall
review the plans and specifications for compliance with such mitigation
measures as are the responsibility of the Developer;
B. The Agency shall comply with all requirements of the City of
Lynwood (the "City") and all public agencies having jurisdiction in any demolition
and construction of public works are to be constructed by the Agency;
H:WORD/REDEVELP/LMORALES/URBANDDACCENVRESO
C. The Agency will report to the City Council of the City not less than
annually on the implementation of the mitigation measures and make any
recommendations it deems necessary to further implement said measures, such
report to be included in the Agency's annual report pursuant to California Health
and Safety Code Section 33089.5 and 33080.4;
D. The City hereby authorizes and directs that a Notice of
Determination with respect to the acquisition and development of the Site
pursuant to the proposed DDA, and all other Agency actions taken in furtherance
thereof, be filed.
APPROVED AND ADOPTED this 2"d day of September, 2003.
ATTEST:
Andrea L. Hooper, City Clerk
APPROVED AS TO FORM:
James Casso,
City Attorney
FERNANDO PEDROZA, MAYOR
Lorry Hempe,
City Manager
APPROVED AS TO CONTENT:
Louis Morales, Director
Redevelopment Department
H:WORD/REDEVELP/LMORALES/U RBAN DDACCENV RESO
RESOLUTION NO.
A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY MAKING
CERTAIN ENVIRONMENTAL FINDINGS WITH RESPECT TO THE
PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT BY AND
BETWEEN THE LYNWOOD REDEVELOPMENT AGENCY AND HERMILIO
FRANCO
WHEREAS, the Lynwood Redevelopment Agency (the "Agency") wishes
to consider the approval of a Disposition and Development Agreement ("DDA")
by and between the Agency and Hermilio Franco (the "Developer") for the
disposition of certain real property located on Fernwood Avenue between
Atlantic Avenue and Bullis Road (the "Site"); and
WHEREAS, a Project Environmental Impact Report was prepared for the
1980 Amendment to Redevelopment Project Area "A" ("1980 EIR"); and
WHEREAS, the development advances the goals of the 1980
Amendment to Lynwood Redevelopment Project Area "A" ("1980 Amendment"}
described in the 1980 EIR which goals are to (1) arrest the decline and decay
and the spread of blight throughout the project area, (2) restore and revitalize
existing residential, commercial and industrial areas to viable centers serving
community and regional needs, and (3) stimulate and attract private investment
thereby improving the City's economic health, employment opportunities and tax
base; and
WHEREAS, the 1980 EIR addresses the environmental impacts of the
development pursuant to the proposed DDA; and
WHEREAS, the Agency has prepared an Initial Study and found and
determined that a subsequent EIR is not needed because none of the following
condition of Section 15162 of Guidelines for the Implementation of the California
Environmental Quality Act ("CEQA Guidelines") has occurred:
Subsequent changes are proposed in the project which will require
important revisions to the 1980 EIR due to the involvement of new
significant impacts not considered in the 1980 EIR; and
Substantial changes occurred with respect to the circumstances
under the project was undertaken due to the involvement of the
new significant impacts not covered in the 1980 EIR; and
H:WORD/REDEVELP/LMORALES/URBANDDACCENVRESO
New information of substantial importance to the project has
become available.
NOW, THEREFORE, the Lynwood Redevelopment Agency hereby
resolves as follows:
Section 1. The redevelopment of the Site provided for by the DDA is
covered by the 1980 EIR which serves as the Final Environmental Impact Report
for the entire Amendment, which Amendment constitutes the "Project".
Section 2. The redevelopment of the Site provided for by the DDA was
considered in the 1980 EIR as part of the Project.
Section 3. The 1980 EIR was considered prior to the approval of the DDA.
The Agency hereby finds: the redevelopment pursuant to the proposed DDA is
within the scope of the 1980 Amendment previously approved; the effects of the
redevelopment pursuant to the proposed Final Environmental Impact Report
together with all other development. All feasible mitigation measures and
alternatives developed in the previous Final Environmental Impact Report for the
Project are incorporated in this Development. No new information of substantial
importance to the Project has become available. The final Environmental
Impact report, therefore, is determined to be adequate to serve as the
environmental impact report for the Development and satisfies all the
requirements of CEQA.
Section 4. Applicable mitigation measures identified in the Final
Environmental Impact Report have been incorporated into this Development
which mitigate any potential significant environmental impacts thereof.
Section 5. The Final Impact Report incorporates certain mitigation
measures which are to mitigate or avoid significant effects on the environment,
and the Agency hereby adopts the following program for reporting and
monitoring the implementation of such mitigation measures pursuant to Public
Resources Code Section 21081.6:
A. The Developer selected by the Agency shall enter into an
Agreement with the Agency to submit all plans and specifications for the
Development to the Agency for its approval, at which time the Agency shall
review the plans and specifications for compliance with such mitigation
measures as are the responsibility of the Developer;
B. The Agency shall comply with all requirements of the City of
Lynwood (the "City") and all public agencies having jurisdiction in any demolition
and construction of public works are to be constructed by the Agency;
H:WORD/REDEVELP/LMORALES/URBAN DDACCENVRESO
C. The Agency will report to the City Council of the City not less than
annually on the implementation of the mitigation measures and make any
recommendations it deems necessary to further implement said measures, such
report to be included in the Agency's annual report pursuant to California Health
and Safety Code Section 33089.5 and 33080.4;
D. The City hereby authorizes and directs that a Notice of
Determination with respect to the acquisition and development of the Site
pursuant to the proposed DDA, and all other Agency actions taken in furtherance
thereof, be filed.
APPROVED AND ADOPTED this 2"d day of September, 2003.
ATTEST:
Andrea L. Hooper, Secretary
APPROVED AS TO FORM
James Casso,
Agency Counsel
FERNANDO PEDROZA, CHAIRMAN
Lorry Hempe,
Executive Director
APPROVED AS TO CONTENT:
Louis Morales, Deputy
Executive Director
H: W ORDlREDEVELP/LMORALES/URBAN DDACCENVRESO
DATE: SEPTEMBER 2, 2003
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Lorry Hempe, Executive Director
By: Louis Morales, Deputy Executive Direct r
SUBJECT: JOINT PUBLIC HEARING FOR CONSIDERATION FOR
CONSDERATION OF A PROPOSED DISPOSITION AND
DEVELOPMENT AGREEMENT ("DDA").
Purpose:
To have the Lynwood Redevelopment Agency (the "Agency") the Lynwood City
Council (the "City") conduct a joint public hearing to consider a DDA between the
Agency and Ray Patel for the development of up to Eight (8) Single-Family
homes o n C ity-owned p roperty I ocated o n t he n orth s ide o f R edwood Avenue
east of State Street.
Facts:
The City currently owns the property (the"Property"), which is the subject
of the proposed project and DDA. The City has owned the Property for
over fifteen years.
2. The Property is able to accommodate up to 8 homes.
3. The Agency met in closed session and directed staff to established terms
for DDA for the development of eight (8) homes. The Agency also
approved the use of homes funds to make two of the homes affordable at
80% of County median income.
3. The Developer agreed to the conditions set by the Agency and the project
will be subject to, where applicable, to Section 25-14 Trip reduction and
Travel Demands .
AGENDn IT~ti~
.t~:
~,.
DDA Summary:
The purpose of the DDA is to effectuate the Redevelopment Plan for the
Redevelopment Project Area "A" and to dispose of City Property through the
Agency. The Developer proposes to construct Eight (8) Single-Family Homes
that will be comprised of three and four bedroom units. Two of the homes will
affordable units. The Homes will be for sale units and will have a price range of
$265,000 - $280,000 with the exception of the affordable units, which will sell at
$205,000.
The City has owned the Property for over Fifteen years and has been exempt
since the City has own the. Property. The Property could accommodate the
proposed units The DDA contemplates that the Developer will be responsible for
all costs associated with the project. The DDA contemplates the all City permits
will be differed until such time that the homes are complete and sold. The DDA
contemplates the use of HOME funds in the amount of $280,000 that will be used
to make two of the home affordable. The Developer will pay 100% of the fees
that are due to the City. The City and Agency will not incur any costs as a result
of the project with the exception of the use of HOME Funds. The Developer will
pay the City $280,000 for the Property which is proposed to differed until such
time that the Homes are sold.
Recommendation:
Staff respectfully requests that after consideration that the Agency and City close
the Public Hearing and adopt the resolutions approving the Disposition and
Development Agreement between the Agency and Ray Patel.
33433 SUMMARY REPORT
PURSUANT TO SECTION 33433 OF
THE CALIFORNIA HEALTH AND SAFETY CODE
FOR THE CONVEYANCE OF REAL PROPERTY TO RAY PATEL
The Lynwood Redevelopment Agency (Agency) proposes to convey for redevelopment
purposes certain real property located just outside Lynwood Redevelopment Project Area
A (the "Site"), pursuant to the California Community Redevelopment Law.
The property is owned by the city of Lynwood (the "City") and is proposed to be conveyed
to the Developer and is located on the north side of Redwood Avenue just east of State
Street (the "Property"). The Property is proposed to be transferred to the Developer and
will be used for the development of 8Single-Family homes.
The proposed Agreement calls for the Agency to dispose of the Property, subject to
certain terms contained in the proposed Disposition and Development Agreement. The
Agency's costs to implement the proposed Agreement include the cost of staff time. The
Agency will at minimum receive the cost of its initial investment.
The estimated cost of the Site to the Agency is:
Real Property cost $240,000
Sale of Land $280,000
Staff and Attorney time $1,200
TOTAL $38,800 surplus
RESOLUTION NO.
A RESOLUTION OF CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE
PROPOSED DISPOSITION DEVELOPMENT AGREEMENT BY AND BETWEEN THE
LYNWOOD REDEVELOPMENT AGENCY AND RAY PATEL FOR THE
DEVELOPMENT OF SINGLE-FAMILY HOMES ON AGENCY PROPERTY LOCATED
ON FERNWOOD AVENUE
WHEREAS, the Redevelopment Plan for Lynwood Project Area "A"
("Redevelopment Plan"), was duly approved and adopted on July 3, 1973 by Ordinance
No. 945 and subsequently amended on December 27, 1973 by Ordinance No. 960, on
August 19, 1975 by Ordinance No. 990, on June 1, 1976 by Ordinance No. 1000, on
December 7, 1976 by Ordinance No. 1010, on December 16, 1980 by Ordinance No.
1111, July 19, 1988 by Ordinance No. 88-1308, and on March 20, 2001 by Ordinance
No. 1504; and
WHEREAS, the Lynwood Redevelopment Agency ("Agency") is engaged in
activities necessary to execute and implement the Redevelopment Plan for
Redevelopment Project Area "A" ("Redevelopment Project") in the City of Lynwood and in
order to do so the Agency proposes to enter into a Disposition and Development
Agreement ("DDA") with Ray Patel ("Developer"), which provides for the development of a
Single-Family homes on City-owned property; and
WHEREAS, the Agency desires to consider the disposition of the City property in
connection with the development of the Site by the Developer; and
WHEREAS, the proposed DDA contains all the provisions, terms, conditions and
obligations required by state and local law; and
WHEREAS, the Developer possesses the qualifications and parcels necessary to
insure development of the Site proposed in accordance with the purposes and objectives
of the Redevelopment Plan; and
WHEREAS, the Agency and City Council of the City of Lynwood have held a duly
noticed joint public hearing on the proposed DDA and related agreements;
WHEREAS, the Agency and the City Council have duly considered the proposed
DDA and believe that development pursuant thereto is in the best interest of the City of
Lynwood and in furtherance of the goals and objectives of the Lynwood Redevelopment
Agency to reduce blight in the Project Area;
H:WORD/REDEV ELP/LMORALES/Fernwd EstatDDACCRESO
NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Lynwood
and the Lynwood Redevelopment Agency as follows:
Section 1. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the DDA is in the best interest of the City of Lynwood
and the health, safety, morals and welfare of its residents, and in accord with the public
purposes and provisions of applicable State and local law.
Section 2. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the proposed DDA is necessary to effectuate the
purpose of the Redevelopment Plan for the Redevelopment Project.
Section 3. The Agency and the City Council hereby find and determine that the
development of the Site pursuant to the proposed DDA will be consistent with the
development permitted at that location by Lynwood's Zoning Ordinance.
Section 4. The Agency has held a joint public hearing with the City Council and has
received, heard and considered all oral and written objections to the proposed DDA and
to the actions connected therewith, and hereby overrules all such oral and written
objections.
Section 5. The Executive Director of the Agency is hereby authorized to execute
the DDA.
Section 6. The Executive Director of the Agency, or his designee, is hereby
authorized, on behalf of the Agency and the City, to sign all documents necessary and
appropriate to carry out and implement the DDA, and to administer and implement the
Agency's obligations, responsibilities and duties to be performed under the DDA.
APPROVED AND ADOPTED this 2"d day of September, 2003.
ATTEST:
FERNANDO PEDROZA, MAYOR
Andrea L. Hooper, City Clerk Lorry Hempe,
City Manager
H:WORD/REDEVELP/LMORALES/Femwd EstatDDACCRESO
-•,..
APPROVED AS TO FORM:
James Casso
City Attorney
APPROVED AS TO CONTENT:
Louis Morales, Director
Redevelopment Department
H:WORD/REDEVELP/LMORALES/FernwdEstatDDACCRESO
RESOLUTION NO.
A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY APPROVING THE
PROPOSED DISPOSITION DEVELOPMENT AGREEMENT BY AND BETWEEN THE
LYNWOOD REDEVELOPMENT AGENCY AND RAY PATEL FOR THE
DEVELOPMENT OF SINGLE-FAMILY HOMES ON AGENCY PROPERTY LOCATED
ON FERNWOOD AVENUE
WHEREAS, the Redevelopment Plan for Lynwood Project Area "A"
("Redevelopment Plan"), was duly approved and adopted on July 3, 1973 by Ordinance
No. 945 and subsequently amended on December 27, 1973 by Ordinance No. 960, on
August 19, 1975 by Ordinance No. 990, on June 1, 1976 by Ordinance No. 1000, on
December 7, 1976 by Ordinance No. 1010, on December 16, 1980 by Ordinance No.
1111, July 19, 1988 by Ordinance No. 88-1308, and on March 20, 2001 by Ordinance
No. 1504; and
WHEREAS, the Lynwood Redevelopment Agency ("Agency") is engaged in
activities necessary to execute and implement the Redevelopment Plan for
Redevelopment Project Area "A" ("Redevelopment Project") in the City of Lynwood and in
order to do so the Agency proposes to enter into a Disposition and Development
Agreement ("DDA") with Ray Patel ("Developer"), which provides for the development of a
Single-Family homes on City-owned property; and
WHEREAS, the Agency desires to consider the disposition of the City property in
connection with the development of the Site by the Developer; and
WHEREAS, the proposed DDA contains all the provisions, terms, conditions and
obligations required by state and local law; and
WHEREAS, the Developer possesses the qualifications and parcels necessary to
insure development of the Site proposed in accordance with the purposes and objectives
of the Redevelopment Plan; and
WHEREAS, the Agency and City Council of the City of Lynwood have held a duly
noticed joint public hearing on the proposed DDA and related agreements;
WHEREAS, the Agency and the City Council have duly considered the proposed
DDA and believe that development pursuant thereto is in the best interest of the City of
Lynwood and in furtherance of the goals and objectives of the Lynwood Redevelopment
Agency to reduce blight in the Project Area;
H:WORD/REDEVELP/LMORALES/Fernwd EstatDDALRARES0
NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Lynwood
and the Lynwood Redevelopment Agency as follows:
Section 1. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the DDA is in the best interest of the City of Lynwood
and the health, safety, morals and welfare of its residents, and in accord with the public
purposes and provisions of applicable State and local law.
Section 2. The Agency and City Council hereby find and determine that the
development of the Site pursuant to the proposed DDA is necessary to effectuate the
purpose of the Redevelopment Plan for the Redevelopment Project.
Section 3. The Agency and the City Council hereby find and determine that the
development of the Site pursuant to the proposed DDA will be consistent with the
development permitted at that location by Lynwood's Zoning Ordinance.
Section 4. The Agency has held a joint public hearing with the City Council and has
received, heard and considered all oral and written objections to the proposed DDA and
to the actions connected therewith, and hereby overrules all such oral and written
objections.
Section 5. The Executive Director of the Agency is hereby authorized to execute
the DDA.
Section 6. The Executive Director of the Agency, or his designee, is hereby
authorized, on behalf of the Agency and the City, to sign all documents necessary and
appropriate to carry out and implement the DDA, and to administer and implement the
Agency's obligations, responsibilities and duties to be performed under the DDA.
APPROVED AND ADOPTED this 2"d day of September, 2003.
ATTEST:
FERNANDO PEDROZA, CHAIRMAN
Andrea L. Hooper, Secretary Lorry Hempe,
Executive Director
H:WORD/REDEVELP/LMORALES/FemwdEstatDDALRARESO
,~.,.
APPROVED AS TO FORM:
James Casso
Agency Counsel
APPROVED AS TO CONTENT:
Louis Morales, Deputy
Executive Director
H:WORD/REDEV E LP/LMORALES/Fernwd EstatDDALRARESO
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
MAKING CERTAIN ENVIRONMENTAL FINDINGS WITH RESPECT TO THE
PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT BY AND
BETWEEN THE LYNWOOD REDEVELOPMENT AGENCY AND RAY PATEL
WHEREAS, the Lynwood Redevelopment Agency (the "Agency") wishes
to consider the approval of a Disposition and Development Agreement ("DDA")
by and between the Agency and Ray Patel (the "Developer") for the disposition
of certain real property located on the northside of Redwood Avenue just east of
State Street (the "Site"); and
WHEREAS, a Project Environmental Impact Report was prepared for the
1980 Amendment to Redevelopment Project Area "A" ("1980 EIR"); and
WHEREAS, the development advances the goals of the 1980
Amendment to Lynwood Redevelopment Project Area "A" ("1980 Amendment")
described in the 1980 EIR which goals are to (1) arrest the decline and decay
and the spread of blight throughout the project area, (2) restore and revitalize
existing residential, commercial and industrial areas to viable centers serving
community and regional needs, and (3) stimulate and attract private investment
thereby improving the City's economic health, employment opportunities and tax
base; and
WHEREAS, the 1980 EIR addresses the environmental impacts of the
development pursuant to the proposed DDA; and
WHEREAS, the Agency has prepared an Initial Study and found and
determined that a subsequent EIR is not needed because none of the following
condition of Section 15162 of Guidelines for the Implementation of the California
Environmental Quality Act ("CEQA Guidelines") has occurred:
Subsequent changes are proposed in the project which will require
important revisions to the 1980 EIR due to the involvement of new
significant impacts not considered in the 1980 EIR; and
Substantial changes occurred with respect to the circumstances
under the project was undertaken due to the involvement of the
new significant impacts not covered in the 1980 EIR; and
New information of substantial importance to the project has
become available.
H:WORDlREDEVELPlLMORALESlURBAN DDACCENVRESO
NOW, THEREFORE, the Lynwood City Council hereby resolves as
follows:
Section 1. The redevelopment of the Site provided for by the DDA is
covered by the 1980 EIR which serves as the Final Environmental Impact Report
for the entire Amendment, which Amendment constitutes the "Project".
Section 2. The redevelopment of the Site provided for by the DDA was
considered in the 1980 EIR as part of the Project.
Section 3. The 1980 EIR was considered prior to the approval of the DDA.
The Agency hereby finds: the redevelopment pursuant to the proposed DDA is
within the scope of the 1980 Amendment previously approved; the effects of the
redevelopment pursuant to the proposed Final Environmental Impact Report
together with all other development. All feasible mitigation measures and
alternatives developed in the previous Final Environmental Impact Report for the
Project are incorporated in this Development. No new information of substantial
importance to the Project has become available. The final Environmental
Impact report, therefore, is determined to be adequate to serve as the
environmental impact report for the Development and satisfies all the
requirements of CEQA.
Section 4. Applicable mitigation measures identified in the Final
Environmental Impact Report have been incorporated into this Development
which mitigate any potential significant environmental impacts thereof.
Section 5. The Final Impact Report incorporates certain mitigation
measures which are to mitigate or avoid significant effects on the environment,
and the Agency hereby adopts the following program for reporting and
monitoring the implementation of such mitigation measures pursuant to Public
Resources Code Section 21081.6:
A. The Developer selected by the Agency shall enter into an
Agreement with the Agency to submit all plans and specifications for the
Development to the Agency for its approval, at which time the Agency shall
review the plans and specifications for compliance with such mitigation
measures as are the responsibility of the Developer;
B. The Agency shall comply with all requirements of the City of
Lynwood (the "City") and all public agencies having jurisdiction in any demolition
and construction of public works are to be constructed by the Agency;
C. The Agency will report to the City Council of the City not less than
annually on the implementation of the mitigation measures and make any
recommendations it deems necessary to further implement said measures, such
H:WORD/REDEVELPlLMORALESlURBANDDACCENVRESO
...,..
report to be included in the Agency's annual report pursuant to California Health
and Safety Code Section 33089.5 and 33080.4;
D. The City hereby authorizes and directs that a Notice of
Determination with respect to the acquisition and development of the Site
pursuant to the proposed DDA, and all other Agency actions taken in furtherance
thereof, be filed.
APPROVED AND ADOPTED this 2"d day of September, 2003.
ATTEST:
Andrea L. Hooper, City Clerk
APPROVED AS TO FORM:
James Casso,
City Attorney
FERNANDO PEDROZA, MAYOR
Lorry Hempe,
City Manager
APPROVED AS TO CONTENT:
Louis Morales, Director
Redevelopment Department
H:WORDlREDEVELPlLMORALES/URBANDDACCENVRESO
.'---
-~.
RESOLUTION NO.
A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY MAKING
CERTAIN ENVIRONMENTAL FINDINGS WITH RESPECT TO THE
PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT BY AND
BETWEEN THE LYNWOOD REDEVELOPMENT AGENCY AND RAY PATEL
WHEREAS, the Lynwood Redevelopment Agency (the "Agency") wishes
to consider the approval of a Disposition and Development Agreement ("DDA")
by and between the Agency and Ray Patel (the "Developer") for the disposition
of certain real property located on the northside of Redwood Avenue just east of
State Street (the "Site"); and
WHEREAS, a Project Environmental Impact Report was prepared for the
1980 Amendment to Redevelopment Project Area "A" ("1980 EIR"); and
WHEREAS, the development advances the goals of the 1980
Amendment to Lynwood Redevelopment Project Area "A" ("1980 Amendment")
described in the 1980 EIR which goals are to (1) arrest the decline and decay
and the spread of blight throughout the project area, (2) restore and revitalize
existing residential, commercial and industrial areas to viable centers serving
community and regional needs, and (3) stimulate and attract private investment
thereby improving the City's economic health, employment opportunities and tax
base; and
WHEREAS, the 1980 EIR addresses the environmental impacts of the
development pursuant to the proposed DDA; and
WHEREAS, the Agency has prepared an Initial Study and found and
determined that a subsequent EIR is not needed because none of the following
condition of Section 15162 of Guidelines for the Implementation of the California
Environmental Quality Act ("CEQA Guidelines") has occurred:
Subsequent changes are proposed in the project which will require
important revisions to the 1980 EIR due to the involvement of new
significant impacts not considered in the 1980 EIR; and
Substantial changes occurred with respect to the circumstances
under the project was undertaken due to the involvement of the
new significant impacts not covered in the 1980 EIR; and
New information of substantial importance to the project has
become available.
H:WORD/REDEVELP/LMORALESlU RBAN DDACCE NV RESO
NOW, THEREFORE, the Lynwood Redevelopment Agency hereby
resolves as follows:
Section 1. The redevelopment of the Site provided for by the DDA is
covered by the 1980 EIR which serves as the Final Environmental Impact Report
for the entire Amendment, which Amendment constitutes the "Project".
Section 2. The redevelopment of the Site provided for by the DDA was
considered in the 1980 EIR as part of the Project.
Section 3. The 1980 EIR was considered prior to the approval of the DDA.
The Agency hereby finds: the redevelopment pursuant to the proposed DDA is
within the scope of the 1980 Amendment previously approved; the effects of the
redevelopment pursuant to the proposed Final Environmental Impact Report
together with all other development. All feasible mitigation measures and
alternatives developed in the previous Final Environmental Impact Report for the
Project are incorporated in this Development. No new information of substantial
importance to the Project has become available. The final Environmental
Impact report, therefore, is determined to be adequate to serve as the
environmental impact report for the Development and satisfies all the
requirements of CEQA.
Section 4. Applicable mitigation measures identified in the Final
Environmental Impact Report have been incorporated into this Development
which mitigate any potential significant environmental impacts thereof.
Section 5. The Final Impact Report incorporates certain mitigation
measures which are to mitigate or avoid significant effects on the environment,
and the Agency hereby adopts the following program for reporting and
monitoring the implementation of such mitigation measures pursuant to Public
Resources Code Section 21081.6:
A. The Developer selected by the Agency shall enter into an
Agreement with the Agency to submit all plans and specifications for the
Development to the Agency for its approval, at which time the Agency shall
review the plans and specifications for compliance with such mitigation
measures as are the responsibility of the Developer;
B. The Agency shall comply with all requirements of the City of
Lynwood (the "City") and all public agencies having jurisdiction in any demolition
and construction of public works are to be constructed by the Agency;
C. The Agency will report to the City Council of the City not less than
annually on the implementation of the mitigation measures and make any
recommendations it deems necessary to further implement said measures, such
H:WORD/REDEVELP/LMORALES/U RBANDDACCENVRESO
~.,.
report to be included in the Agency's annual report pursuant to California Health
and Safety Code Section 33089.5 and 33080.4;
D. The City hereby authorizes and directs that a Notice of
Determination with respect to the acquisition and development of the Site
pursuant to the proposed DDA, and all other Agency actions taken in furtherance
thereof, be filed.
APPROVED AND ADOPTED this 2"d day of September, 2003.
ATTEST:
Andrea L. Hooper, Secretary
APPROVED AS TO FORM
James Casso,
Agency Counsel
FERNANDO PEDROZA, CHAIRMAN
Lorry Hempe,
Executive Director
APPROVED AS TO CONTENT:
Louis Morales, Deputy
Executive Director
H:WORD/REDEVELP/LMORALES/URBANDDACCENVRESO
,~..
DATE: AUGiJST I, 2003
TO: HONORABLE CHAIRMAN AND AG ;CY BOARD MEMBERS
FROM: IRIS PYGATT, CITY TREASURER r 1
SUBJECT: INVESTMENT POLICY: LYNWOOD REDEVELOPMENT AGENCY
INTRODUCTION:
The investment policies and practices of the City of Lynwood are based on state laws and principles of
prudent money management. This statement is intended to provide guidelines for the prudent
investment of the City's temporarily idle and surplus cash, while meeting the short and long-term cash
flow demands of the City, and it is submitted annually for City review. The primary goals of these
policies are:
1, To assure compliance with all federal, state, and local laws governing the investment
of Monies under the control of the City Treasurer.
2. To protect the principal and asset holdings of the City's portfolio.
3. To generate the maximum amount of investment income within the parameters of these
Investment policies and guidelines for suitable investments.
4, To ensure that adequate liquidity is provided for the prompt and efficient handling of City
disbursements,
POLICY:
Annually, in accordance with California Government Code (CGC) Section 53646, the Treasurer will
render to the City Council a Statement of Investment Policy for consideration and approval at a public
meeting. Any investments currently held at that time that does not meet the guidelines of this policy, as
charged from time to time by the City Council, shall be exempt from the requirements of this policy.
However, at the investment maturity or liquidation, such funds shall be reinvested only as provided by
this policy, which offer guidance to brokers and any external investment advisors on the investment of
City funds. This investment policy applies to all investment activities of the City, except for the
Employees Retirement and Deferred
Compensation Funds are excluded because it is separately managed by a third party administrator. This
policy applies to all City funds, except for bond proceeds that are managed by trustees. Trustees must
comply with the provisions of bonds indenture agreements.
AGEL~IDA ITEM
~-~,
SCOPE:
Policy statements outlined in this document apply to the City's pooled funds, as well as other financial
assets under the City Treasurer's control unless exempted by resolution or by statue.
These funds are accounted for in the City of Lynwood Comprehensive Annual Financial Report and
include:
3.1 Fund:
3.1.1 General Fund
3.1.2 Special Revenue Funds
3.1.3 Capital Project Funds 3.1.4 Enterprise Funds
3.1.5 Trust and Agency Funds
3.1.6 Retirement Pension Funds 3.1.7 Internal Service Funds
PRUDENCE:
The standard of prudence to be used by investment officials shall be the "prudent investor" standard
(CGC Section 53600.3) and shall be applied in the context of managing an overall portfolio which
states that:
"Investments shall be made with judgement and care, under circumstances then prevailing,
which persons of prudence, discretion, and intelligent exercise in the management of (heir
own affairs, not for speculation, buf for investment, considering the probable income fo be
derived"
at the time of purchase, it is the City's intent to hold all investments until maturity to ensure the return
of all invested principal. However, it is recognized that market prices of securities will vary depending
on economic and interest rate condition at any point in time.
The City Treasurer, and other individuals who maybe designated to manage the City's investment
portfolio, when acting within the intent and scope of this investment policy and other authorized
written procedures, and when exercising due diligence, are relieved of personal liability for the
individuals security's credit risk or market price change of a security or other investment, provided that
deviations from expectations are reported to the City of Lynwood in a timely manner and that
appropriate action is taken to mitigate unforeseen adverse conditions.
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GOALS AND OBJECTIVES:
Within the overriding requirement of compliance with all Federal, State and local laws governing the
investment of moneys under the control of the Treasurer, and as specified in the (CGC Section
53600.5), when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public
funds.
Taking into account the City's daily and periodic cash-flow needs, the City desires to invest all
temporarily idle funds at a close to 100% as is reasonable possible. The Major portion of the City's
investment portfolio will consist of investment securities having maturates of one year or less. Longer
term maturates are authorized, but may not generally exceed 15 % of the investment portfolio.
The basis goal of the City's investment policy is to ensure safety and availability of temporarily idle
funds when they are needed. The primary objectives, in priority order, of the investment activities shall
be:
a) Safety: Safety of principal is the foremost objective of the investment program. Each
investment transaction must seek to ensure that capital losses are avoided, whether from
securities default, broker-dealer default, or erosion of market value. The City will endeavor to
preserve principal by mitigating both credit risk and market risk, as specified below.
Credit risk, which is defined as the risk of loss due to insolvency or other failure of
the issuer of a security, must be mitigated by purchasing investment grade securities
and by diversifying the investment portfolio so that the failure of any one issuer does
not unduly harm the City's capital base and cash flow.
Market risk, which is defined as market value fluctuations, must be mitigated by limiting the
average maturity of the City's investment portfolio to one year, limiting the maximum
maturity of anyone security to one year, structuring the portfolio to take into account historic
and current cash flow analysis, eliminating the need to sell securities for the sole purpose of
short term speculation,
b) Liquidity: Because the City operates its own water utility and bills monthly for utility
services, cash flow is generated on a daily basis. Historical cash flow trends must be
compared to current cash flow requirements on an ongoing basis to ensure that the City's
investment portfolio will remain sufficiently liquid to enable the City to meet all reasonable
anticipated operating requirements.
c) Return on the Investment: The investment portfolio shall be designed and managed with
the objective of attaining a benchmark rate of return throughout budgetary and economic
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cycles, taking into account the investment objectives, authorized investments and the cash
flow needs of the City.
DELEGATION OF AUTHORITY:
In accordance with Section 53607 of the Government Code, the City of Lynwood management
responsibility for the investment program is hereby delegated to the Treasurer, who shall be
responsible for all transactions undertaken and shall establish a system of control to regulate the
activities of subordinate officials, and their procedures in the absence of the Treasurer. Under the
,provision of CGC Section 53600.3, the Treasurer is a trustee and a fiduciary subject to the prudent
investor standard, The City may delegate to the City Treasurer the authority to invest or reinvest City
funds for aone-year period.
The Treasurer may delegate all, or a portion of his/her investment authority to a Deputy City Treasurer.
Prior to the delegation of the investment authority to a Deputy City Treasurer, the Treasurer shall
notify the City Council and request confirmation of the delegation. Delegation of investment authority
will not remove or abridge the Treasurer's investment responsibility.
INVESTMENT PROCEDURES:
The Treasurer shall establish written investment policy procedures for the operation of the investment
program consistent with this policy. The procedures should include reference to: safekeeping, wire
transfer agreements, banking service contracts and collateral/depository agreements. Such procedures
shall include explicit delegation of authority to persons responsible for investment transactions. No
person may engage in an investment transaction except as provided under the terms of this policy and
the procedures established by the Treasurer.
ETHICS:
Elected officials, City officers and employees and any other individual involved in the investment
operations are prohibited from personal business activity that could conflict with proper execution of
the investment program, or which could impair their ability to make impartial investment decisions, or
which could give the appearance thereof Furthermore, these same individual shall disclose any
material financial interests in financial institutions that conduct business within their jurisdiction, and
they shall further disclose any large personal financial/investment positions that could be related to the
performance of the City.
QUALIFIED DEALERS AND INSTITUTIONS:
The City may transact business only with banks, savings and loans associations, and registered
investment dealers. Any investments other than those purchased directly from an issuer must be
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purchased from (i) an individual or entity licensed by the State as abroker-dealer, as defined in Section
25004 of the Corporations Code, and which is a member of the National Association of Securities
Dealers, or (ii) from a member of afederally-regulated securities exchange, or (iii) a national or state-
chartedbank; or (iv) a federal or state association (as defined by Section 5102 of the Financial Code).
Or (v) a brokerage firm designated as a primary government dealer by the Federal Reserve Bank.
The City Treasurer must investigate and evaluate all financial institutions that desire to do business
with the City in order to determine whether they are adequately capitalized, whether they make
markets in securities that are appropriate to the City's needs, and whether they will agree to abide by
the conditions and limitations set forth in the City's investment policy. This maybe accomplished by
the following: a financial institution tQ_complete and return an appropriate questionnaire, audited
financial statements, proof of National Association of Security Dealers certification.
AUTHORIZED AND SUITABLE INVESTMENTS:
General, investments must be made in accordance with the "prudent investor rule" that is cited under
the heading "Prudence."
The City is subject to California Government Code, Sections 53600 et seq. Within the context of these
limitations, the following investments are authorized, subject to the restrictions noted below:
A. United States treasury bills, notes, and bonds, or similar instruments for which the full faith and
credit of the United States is pledged for payment of principal and interest. There is no limitation on
the percentage of the City's surplus funds that can be invested in these instruments. The maximum
maturity period may not exceed 5 years,
B. Obligation issued by banks for cooperatives, Federal land banks, federal intermediate credit banks,
the Federal Home Loan Board (FHLB), and the Federal National Mortgage Association (FNMA).
Although there is no percentage limitation on investments in these obligations, the "prudent investor
rule" applies to obligations issued by any of these agencies, because U.S. Government backing is
implied rather than guaranteed.
C. Commercial paper rated "PI°' by Moody's Investor Services and "AL+" by Standard & Poor,
and issued by a domestic corporation having assets in excess of $500,000,000 and having
an "AA" or better rating on its long-term debt as determined by Moody's or by Standard
and Poor. The purchase of eligible commercial paper may not exceed 180 days maturity
nor represent more than 1 0% of the outstanding paper of an issuing corporation. The
purchase of commercial paper not to exceed 15% of the City's surplus funds.
D. Negotiable certificates of deposit issued by a national or state-charted bank or a state or federal
saving and loan association. Negotiable certificates of deposit may not exceed 30% of The City's
total portfolio. Certificates purchased from a bank may not exceed the shareholder's equity in the
bank. Certificates over $500,000 purchased from savings and loan association may not exceed the
net worth of the association. A maturity limitation of 5 years is applicable.
E. State of California Local Agency Investment Fund (LAIF) is permitted, with the knowledge that the
fund may invest in some vehicles allowed by statue but not otherwise authorized by the City
Council in this (SIP). The Treasurer shall obtain from the State treasurer, no less than quarterly
reports providing sufficient detail to adequately judge the risk inherent in the LAIF portfolio, and
shall inform the City Council immediately of any risk noted that may warrant reconsideration of
this investment vehicle. (Limits: Maximum concentration $30 million combined limit for all
accounts.)
F. Investment in new Government sponsored pools will be subject to due diligence. A thorough
investigation of the pool is required prior to investing, and on a continual basis.
G. Funds held under the terms of a Trust Indenture or other contract or debt issuance agreement may
be invested according to the provisions of those indentures agreements.
H. The City may invest in non-negotiable time deposits that are collateralized as required by
the California Government Code, and that are maintained in banks and savings and loans
associations that meet the requirement for accepting deposits of public funds. Because
time deposits are not liquid, no more than 25% of the City's temporarily idle funds may be
invested in this category.
I. Medium term corporate notes with a maximum maturity of 5 years my be purchased Securities
eligible for investment must be rated AA or better by Moody's or Standard & Poor's rating services.
Medium term notes may not exceed 305 of the market value of the City's portfolio, and not more
than 15% of the market value of the portfolio may be invested in notes issued by anyone
corporation. Commercial paper holdings must be included when calculating this 15% limitation.
PROHIBITED INVESTMENTS:
The City Treasurer is prohibited from the following:
a) Corporate share of stocks, corporate bonds and reverse purchase agreements.
b) Borrowing for investment purposes ("Leverage") is prohibited.
c) Buying or selling securities "on Margin" is prohibited.
d) Investing in any instrument, which is commonly known as a "derivative" instrument (options,
Futures, swap, caps, floors, collars, U.S. Treasury strips, interest only bonds, interest only strips
derived from mortgage pools), or any investment that may result in a zero interest accrual, even
if held to maturity, is prohibited.
e) Under the provision of CGC Sections 53601.6 and 53631.5, the City shall not invest any funds
covered by this SIP in instruments known as Structured Notes (e.g. inverse floaters, leverage
Floaters, structured CD's range notes, equity-linked securities). Any such investment are
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Prohibited.
f) Trading securities for the sole purpose of speculating on the future direction of interest rates is
prohibited.
COLLATERAL REQUIREMENTS: -
Collateral is required for investments in certificates of deposit and repurchases agreements. In order to
reduce market risk and provide a level of security for all funds, the collateralization level will be
(102%) 0 market value of principal and accrued interest.
In conformity with the provisions of the Federal Bankruptcy Code that provide for the liquidation of
securities held as collateral, the only securities acceptable as collateral are certificates of deposit,
commercial paper, eligible bankers acceptances, and medium term notes or securities that are the direct
obligation of, or are fully guaranteed as to principal and interest by, the United States or any City of
the United States.
Collateral will always beheld by an independent third parry with whom the City has a current
custodial agreement.
The right of collateral substitution is granted.
DIVERSIFICATION:
The Treasurer shall maintain a diversified portfolio to minimize the risk of loss resulting from over
concentration of assets in a specific maturity, issuer, or security type. With the exception of U. S.
Treasury securities and authorized pools, no more than 50% of the City's total investment portfolio will
be invested in a single security type or with a single financial institution.
MAXIMUM MATURITIES:
Every effort will be made to match investment maturities to cash flow needs. Matching maturities with
cash flow dates will reduce the need to sell securities prior to maturity, thus reducing the market risk.
Unless matched to a specific cash flow, the portfolio will not directly invest in securities maturing
more than one year or less from the date of purchase (excluding LAIF).
Reserve funds maybe invested in securities exceeding one year if the maturity of such investments is
made to coincide as nearly as practicable with the expected use of the funds. No portion of the
portfolio may exceed five years.
INTERNAL CONTROL:
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Internal policies and procedures shall be developed to assure that appropriate controls are in place to
document and confirm all transactions. The Treasurer shall recommend establishing an annual process
of independent review by an external auditor. This review will provide internal control by assuring
compliance with policies and procedures.
PERFORMANCE STANDARDS:
The investment portfolio shall be designed with the objective of obtaining a rate of return
throughout budgetary and economic cycles, commensurate with investment risk constraints and cash
flow needs
a) Investment Strategy: The Portfolio's basis investment strategy is to buy and hold investments
until maturity. However, the Treasurer may sell a security due to adverse changes in credit risk
or due to unexpected cash flow needs.
b) Market Yield (Benchmark): Market average will be determined by year-end average rates of
return from a combination of indices: Local Agency Investment Fund (LAIF), 3-month and 6-
month Treasury Bills.
REPORTING:
In compliance with Government Code Sections 53607 and 53646, the Treasurer shall provide the
City Council quarterly investment reports which provide a clear picture of the status of the current
investment portfolio. The management report should provide a condensed summary of the most
important information in the report, plus a detailed report covering the following elements:
1. A listing of individual securities held at the end of the reporting period by authorized
investment category.
2. Average life and final maturity of all investments listed.
3. Coupon, discount or earnings rate.
4. Par value, Amortized Book Value and Market Value.
5. Percentage of the Portfolio represented by each investment category.
INVESTMENT POLICY ADOPTION:
The Treasurer shall annually render to the City Council a Statement of Investment policy as
required in Section 53646(a) of the Government Code. The City's investment policy shall be
adopted by resolution of the City Council and shall be reviewed annually, any modification made
thereto must be approved by the legislative body.
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Glossary
Active Deposits. Funds which are immediately required for disbursement.
Active investment management. An investment strategy that involves the active trading of securities
in an attempt to earn above-average returns on a portfolio. Active investment management requires
frequent monitoring of financial markets.
Agency. A debt security issued by a federal or federally sponsored agency. Federal agencies are
backed by the full faith and credit of the U.S. Government. Federally sponsored agencies (FSAs) are
backed by each particular agency with a market perception that there is an implicit government
guarantee. An example of federal agency is the Government National Mortgage Association (GNMA).
An example of an FSA is the Federal National Mortgage Association (FNMA).
Arbitrage. Generally, transactions by which securities are bought and sold in different markets at the
same time for the sake of the profit arising from a difference in prices in the two markets.
Bankers' Acceptances (BA's). Time drafts or bills of exchange that are accepted payment by banks
engaged in the financing of international trade. BA's finance the importation, exportation, shipment or
storage of foreign and domestic goods. BA's are usually backed by documentation such as invoices,
bills of lading, or warehouse receipts. Upon acceptance by a bank-, a BA becomes an irrevocable and
unconditional obligation of the accepting bank, while it is also an obligation of the drawer as well as
any endorser thereof.
Basis point. By common agreement, 0.01% of yield on a fixed income security (1/100 of 1 %).
Bond Equivalent Yield (BEY)a An annual yield, expressed as a percentage, describing the rectum
provided to bond holders. A bond equivalent yield is double simple interest, semiannual yield. Since
Treasury and agency notes and bonds pay interest semiannually, the bond equivalent yield is a way to
compare yields from discount securities, such as Treasury bills and bankers' acceptances with yields
available from coupon securities. From that usage, this yield measure is also known as the coupon
yield equivalent, For securities that pay daily, monthly or quarterly interest, the bond equivalent yield
understates the benefits obtained from the compounding of those investments.
Book-entry clearance. A system for the transfer of ownership of securities through entries on the
records of a centralized agency. The centralized agency holds securities on behalf of their owners;
A4ien the securities are sold, ownership is transferred by bookkeeping entry from the seller to the
purchaser. In the case of U.S government, securities, securities certificates are not issued, and
ownership of the securities is evidenced in computer records maintained by the Federal Reserve
System. For other types of securities, book entry clearance is made available through linked or
interfaced systems maintained by four securities depositories, which hold securities and act on behalf
of their participants.
Book-entry security. A security which is not available to purchasers in physical form. Such a security
may be held either as a computer entry on the records of a central holder (as is the case with U.S.
certain government securities) or in the form of a single, global certificate.
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Book value. The value at which a security is carried on the inventory lists or other financial records of
an investor. This value may be the original cost of acquisition of the security, or original cost adjusted
by the amortization of a premium, or accretion of a discount. The book value may differ significantly
from the security's current value in the market.
Broker. A broker brings buyers and sellers together for a commission paid by the initiator of the
transaction or by both sides; he does not position or take ownership of the security.
Certificate of Deposit (CD). A deposit of funds, in a bank or savings and loan association, for a
specified term that earns interest at a specified rate or rate formula.
Collateralization. Process by which a borrower pledges securities, property or other deposits for the
purpose of securing the repayment of a loan and/or security.
Commercial Paper. Unsecured short-term promissory notes issued by corporations, with maturities
ranging from 2 to 270 days. Maybe sold on a discount basis or may bear interest. Firms with lower
ratings or without well known names usually back their commercial paper with guarantees or bank
letters of credit.
Coupon rate. Interest rate, expressed as a percent4ge of par or face value, that issuer promises to pay
over lifetime of debt security.
Credit Risk. The risk to an investor that an issuer will default in the payment of interest and/or
principal on a security.
Current Yield (Current Return). A measure of the simple interest annual yield for interest-bearing
investments with maturities of one year or more. To calculate the current yield, the annual coupon
interest income is divided by the amount paid to acquire the investment. It is important to note that the
current yield is only accurate for investments purchased at par. The current yield calculation includes
just one income cash flow. the annual interest income. It ignores the profit or loss resulting from
discounts and premiums.
Custody. The service of an organization, usually a financial institution, of holding (and reporting) a
customer's securities for safekeeping. The financial institution is known as the custodian.
Dealer. An individual or firm who, as a matter of regular business, purchases or sells securities for his
account and risk.
Delivery versus payment (DVP). A settlement procedures where payment for a securities purchase is
made simultaneously with the transfer of the purchased securities. The same procedure applies for a
securities sale; the securities are transferred as payment is made.
Derivative instrument. A security that derives its value from an underlying asset, group of assets,
reference rate, or an index value. Some derivative instruments can be highly volatile and result in a
loss of principal in changing interest rate environments.
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Discount. The amount by which a bond sells under its par (face) value.
Discount securities. Securities that do not pay periodic interest. Investors earn the difference between
the discount issue price and the full face value paid at maturity. Treasury bills, bankers' acceptances
and most commercial paper are issued at a discount.
Diversification. Dividing investment funds among a variety of securities, offering independent returns,
to reduce risk inherent in particular securities.
Effective Annual Yield. A seldom used expression to refer to the yield on an investment expressed on
a compound interest basis.
Fed Wire. Computerized network linking the Fed with its district banks, member banks, and primary
dealers in government securities.
Federal Agency Securities. A variety of securities issued by several Federally sponsored
agencies. Some are issued on a discount basis and some are issued with coupons. Several
have the full faith and credit guarantee of the U.S. government, although others do not.
Federal Deposit Insurance Corporation (FDIC). A federal agency that insures bank deposits,
Currently up to $ 100,000 per deposit.
Federal funds (Fed Funds). Funds placed in Federal Reserve banks by depository institutions in
excess of current reserve requirements. These depository institutions may lend fed funds to each other
overnight or on a longer basis. They may also transfer funds among each other on a same-day basis
through the Federal Reserve banking system. Fed funds are considered to be immediately available
funds.
Fed Funds Rate -Interest rate charged by one institution lending federal funds to another.
Floater. A floating rate security with an interest rate that resets at specified intervals according to an
underlying index, such as LIBOR (the London Interbank Offered Rate), and is based on a
predetermined formula. The value of a floater will fluctuate as interest rates change and therefore can
be very volatile.
Inactive deposits. Funds not immediately needed to disbursement.
Interest rate risk. The risk associated ), with declines or rises in interest rates which cause an
investment in affixed-income security to increase or decrease in value.
Inverse floater. A security that reacts inversely to the direction of interest rates. These securities can be
very volatile and can lose value in a rising interest-rate environment.
Leverage. An attempt to increase the rate of return on an investment by buying securities on margin or
using borrowed funds for investment purposes. This practice can be risky if interest rates rise or if
investment yields are lower than expected.
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,,r..,, ~-~.
Liquidity. The quality of an asset that permits it to be converted quickly into cash without a significant
loss of value.
Local Agency Investment Fund (LA1F). A special fund in the State Treasury which local agencies
may use to deposit funds for investment and for reinvestment. There is no minimum investment period
and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum of $20
million for any agency. It offers high liquidity because deposits can be converted to cash in 24 hours
and no interest is lost. All interest is distributed to those agencies participating on a proportionate share
determined by the amounts deposited and the length of time they are I deposited. Interest is paid
quarterly via a check, warrant, or direct deposit to the agency's State !Pooled Fund account. The State
keeps an amount for reasonable costs of making the investments,
not to exceed 1 /4 of a percent of the earnings.
Marketability. The measure of ease with which a security can be sold in the secondary market.
Mark-to-Market. The practice of valuing a security of portfolio according to its market value, rather
than its cost or book value.
Market Rate of Return. The average yield of the 3-month U.S. Treasury Bill or other index that
closely, matches the average maturity of the portfolio.
Market Value. The price at which the security is trading and could presumably be purchased or sold.
Maturity Date. The specified day on which the issuer of a debt security is obligated to repay the
principal amount, or face value of, a security.
Money Market Mutual Fund. Mutual funds that invest solely in money market instruments (short-
term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and
federal funds).
Mutual Fund. An investment company that pools money and can invest in a variety of securities,
including fixed-income securities and money market instruments. Mutual funds are regulated by the
Investment Company Act of 1940 and must abide by the following Securities and Exchange
Commission (SEC) disclosure guidelines.
Negotiable. Salable.
Par. Face value or principal value of a bond, typically $1,000 per bond.
Passive investment management. An investment strategy where securities are bought with
the intention of holding them to maturity or investments in benchmark products designed to yield a
market rate of return.
Principal. The face amount or par value of a debt instrument.
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Primary Dealer. A small group of large banks and brokers that have pledged to make a market for any
Treasury securities at any time. The are required to report their inventory positions and volume of
activities to the Federal Reserve. Because of this, they are given the right to deal directly with the
Federal Reserve in their daily operations.
Prudent Investor Standard. A standard of conduct where a person acts with care, skill, prudence, and
diligence when investing; reinvesting, purchasing, acquiring, exchanging, selling and managing funds.
The test of whether the standard is being met is if a prudent person acting in a similar situation would
engage in similar conduct to ensure that investments safeguard principal and maintain liquidity.
Rate of return. The amount of income received from an investment, expressed as a percentage. A
market rate of return is the yield that an investor can expect to receive in the current interest-rate
environment utilizing abut'-and-hold to maturity investment strategy.
Public Securities Association. The bond market trade association, which publishes a Master
Repurchase Agreement that is widely accepted as the industry standard.
Rating. Judgment of creditworthiness of an issuer made by an accepted rating service.
Repurchase Agreement (Repo). A form of secured, short-term borrowing in which a security is sold
with a simultaneous agreement to buy it back from the purchaser at a future date. A master repurchase
agreement is a written contract governing all future transactions between the parties and seeks to
establish each party's rights in the transaction.
Reverse Repurchase Agreement. A form of secured, short-term investment in which a security is
purchased with a simultaneous agreement to sell it back to the seller at a future date.
Safekeeping. A procedure where securities are held by a third party acting as custodian for a fee.
Secondary Market, Markets for the purchase and sale of any previously issued financial instrument.
The first sale of a financial instrument by the original issuer is said to be done a Primary market. All
subsequent trades are said to be secondary market.
Securities Investors Protection Corporation (SIPC). A private corporation providing insurance to
brokerage firms to cover customer accounts up to $500,000 in securities (including (100,000 in cash).
Swap. The trading of one asset, or cash flows, for another. Sometimes used in active portfolio
management to increase investment returns by "swapping" one type of security for another. Also used
to manage risk; for example, swapping fixed interest rate payments for floating rate payments.
Total return. Interest income paid on the invested principal, plus interest income earned from the
successive reinvestment of that interest income, plus projected capital gains (or minus losses) on the
investment, Differs from yield to maturity because (1) it can include gains or losses from sales prior to
maturity, and (2) it permits the assumption of a reinvestment rate different from the yield earned on the
underlying principal.
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Treasury Bills. Short-term U.S. government non-interest bearing debt securities with maturities of no
longer than one year and issued in minimum denominations of $10,000. Auctions of three- and six
month bills are weekly, while auctions of one-year bills are monthly. The yields on these bills are
monitored closely in the money markets for signs of interest rate trends.
Treasury Notes. Intermediate U.S. government debt securities with maturities of one to 10 years and
issued in denominations ranging from $ 1,000 to $1 million or more.
Treasury Bonds. Long-term U.S. government debt securities with maturities often years or longer
and issued in minimum denominations of $1,000. Currently, the longest outstanding maturity for such
securities is 30 years. -
Uniform Net Capital Rule. Securities and Exchange Commission 15C3-1 outlining capital
requirements for brokers.
Weighted Average Maturity (W AM). The average maturity of all the securities that comprise
a portfolio.
Yield. Loosely refers to the annual return on an investment expressed as a percentage on an annual
basis. For interest-bearing securities, the yield is a function of the rate, the purchase price, the income
that can be earned from the reinvestment of income received prior to maturity, call or sale and the time
from purchase to maturity, call or sale. Different formulas or methods are used to calculate yield. See
Yield to Maturity and Total Return Analysis.
Yield-to-maturity. The rate of return yielded by a debt security held to maturity when both the interest
payments and the investor's potential capital gain or loss are included in the calculation of the return.
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RESOLt1TtON NO.
A RESOLtTTION OF THE CITY COtJNCiL OF THE CITY OF Ll'N--'OOD
APYitO-"I,ti(; "IHE TREA,IiRER'S 5TA'I~E111ElrT OF }N-'ESTAIENT POI.ICI'
WHEREAS, the Lynwood City Treasurer is responsible for the City's cash flow whereby
funds arc transferred from various accounts to meet operating oblibations, and
WIiEREAS, the Treasurer is also responsible for the investment of idle cash, acid
--~t1ERE:~S, the City Treasurer has prepared guidelines fur a prudent investment policy;
and
-- iIERE.~S, the pulic}~ contains certain imestment criteria, and
H~}}EREAS, the basic premise of tl~e policy is to ensure the safety of funds and assure
that the City ~s .:ash nc:~-ls are rnet
hU--, 7 HEREI•"ONE, the Cn}• Council does herr~y find, proclaim, order and resolve as
follows.
Section 1 That the City l~reasurer"s Statement ut lif~c:~t;,,~nt i'olic} is iicarby appro~•ed
Sertiun 2 Phis resolution shall go into etlect inun~diately upon its aduptiuu
P.~SSED, :-i'YKO-~ED and ADOi'~TE:U this day of • 2003.
AGENCY CHAIRMAN
APPROVED AS TO FORAi.
;AGENCY COUNSEL
.~T1"EST.
ANDRE4~ L HOOPER
SECRETARY
APPRUVED AS 'TO CON'TEN'T.
IRIS PYGATT
Citv Treasurer