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Home My Public Portal About03-04-1997LRA~~. ~~=~~ ,. LYNt1VOOD REDEVELOPMENT AGENCY 11330 BULLIS ROAD LYNWOOD, CALIFORNIA 90262-3845 (310) 603-0220 Paul Richards, CHAIRMAN .~ ~ ~~ t ~ LOUIS J. Heine, VICE CHAIRMAN j ~/~~ ~ Louis Byrd, MEMBER ~L~~~/J/9_ / ~ _ Robert Henning, MEMBER ~ ~./ C E I V E D~ Armando Rea, MEMBER CITY OF LYNWOOU CfTY CLERKS OFFICE AGENDA ~ FED ~ ~ ~59~ 718~9~~1~1~i112i3i4i5f6 LYNWOOD REDEVELOPMENT AGENCY ~' MARCH 4, 1997 "'7~~~ REGULAR MEETING 7:30 P.M. LYNWOOD CITY HALL, 11330 BULLIS ROAD ROBERT HENNING VICE CHAIRMAN I LOUIS HEINE MEMBER EXECUTIVE DIRECTOR FAUSTIN GONZALES OPENING CEREMONIES: A. Call Meeting to Order. LOUIS BYRD MEMBER ARMANDO REA MEMBER AGENCY COUNSEL ROYCE K. JONES B. Roll Call (BYRD-HEINE-HENNING-REA-RICHARDS). C. Certification of Agenda Posting by Secretary. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) ITEMS FOR CONSIDERATION 1. MINUTES OF PREVIOUS MEETING Regular meeting of February 18, 1997 PAUL H. RICHARDS CHAIRMAN 2. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS THEREFOR. i REGULAR ITEMS 3. PROPOSED EXCLUSIVE NEGOTIATING AGREEMENT ("ENA") WITH RESOURCE MANAGEMENT .AFFILIATES GROUP ("RMA") FOR THE DEVELOPMENT OF ASENIOR-HOUSING PROJECT ON AGENCY AND PRIVATE PROPERTY LOCATED AT 12408-12430 LONG BEACH BOULEVARD. Comments: To have the Agency review and approve an ENA with RMA for the development of Senior-Housing project seventy (70) residential units and in turn allow the Developer the opportunity to pursue the project and negotiate the terms of the acquisition and a Disposition and Development Agreement ("DDA") and submit project plans. Recommendation: Staff respectfully requests that after Agency and public review of the ENA Document, that the Agency approve to enter into an Exclusive Negotiating Agreement with Resource Management Affiliated Group for the development of a seventy (70) unit Senior-Housing project on Agency and private property located at .12404-12430 Long Beach Boulevard. 4. PROPOSED EXCLUSIVE NEGOTIATING AGREEMENT ("ENA") BETWEEN THE REDEVELOPMENT AGENCY AND BASKARON INCORPORATED, A CALIFORNIA CORPORATION Comments: To seek Agency approval and review of a proposed ENA with Baskaron Incorporated for the purpose of developing a Chevron Service Station/Drive-through .restaurant at 11601-11629 Long Beach Boulevard. Recommendation: Staff respectfully request that after Agency and public review of the ENA document, that the Agency approve to enter into an Exclusive Negotiating Agreement with Baskaron Incorporated for the development of a Chevron Service Station/Drive-through restaurant at 11601-11629 Long Beach Boulevard. 5. CONCEPTUAL REVIEW OF A PROPOSAL TO DEVELOP THE WEST SIDE LONG BEACH BOULEVARD BETWEEN MARTIN LUTHER KING JR. BOULEVARD AND PLUMA STREET. a Comments: To have the Agency conceptually review a proposal submitted by the Charles Company ("BDC) to develop the west side of Long Beach Boulevard between Martin Luther King, Jr., and Pluma Street with aretail/commercial center. Recommendation: Staff respectfully request that after consideration, -the Agency approve the concept and direct staff to work with the .Charles Company to pursue an Exclusive Negotiating Agreement to develop the site. 6. TO APPROVE A $188,382 GRANT TO HEALTH VIEW, INC. UTILIZING HOME FUNDS AND PREPARING A OWNERS PARTICIPATION AGREEMENT TO REHABILITATE AND EXISTING RESIDENTIAL CARE FACILITY FOR THE ELDERLY FOR THE PROPERTY LOCATED AT 3540 MARTIN LUTHER KING JR. BOULEVARD, KNOWN AS LYNWOOD VILLA. .Comments: To recommend the Lynwood Redevelopment Agency (Agency) adopt the attached resolution authorizing the Executive Director to prepare and execute a Owners Participation agreement (OPA) for a rehabilitation grant between the Agency and Health View, Inc. for the rehabilitation of the Lynwood Villa, a residential home for Low-income elderly individuals, owned and operated by Health View, Inc., utilizing $188,382 of the City of Lynwood's Home Investment Partnership allocation. Recommendation: Staff recommends that the Agency adopt the attached resolution to approve the grant totaling $188,382.00 to Health View, Inc., and authorize the Executive Director to prepare a Owner Participation Agreement (OPA) pursuant to HUD standards and adopt the attached resolution approving the project. PUBLIC HEARING NONE INFORMATION ITEM NONE 3 CLOSED SESSION PUBLIC ORAL COMMUNICATION ADJOURNMENT Motion ~ to adjourn to a Regular Meeting of the Lynwood Redevelopment Agency to be held March 18, 1997 at 7:30 p.m. in the Council Chambers of City Ha11,11330 Bullis Road, Lynwood, California. wp/commdevA racer/022697/r6 4 C] LYNWOOD REDEVELOPMENT AGENCY, FEBRUARY 18, 1997 The Redevelopment Agency of the City of Lynwood met in a Regular Session in the City Hall, 11330 Bullis Road, on the above date at 8:15 p.m. Chairman Richards presiding. Member Byrd, Heine, Henning, Rea and Richards answered the roll call. Also present were Executive Director Gonzales, City Council Attorney Rudell, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced the Agenda had been duly posted in accordance with The Brown Act. ITEMS FOR CONSIDERATION lr was moved by Member Henning, seconded by Member Rea and carried to approve the following minutes: a) Regular Meeting, Februan- 4, 1997 It was then moved by Member Heine. seconded by Member Henning to adopt: LRA RESOLUTION NO. 97-5 ENTITLED: "A RESOLUTION OF THE REDEVELOPMENT AGENCY. OF THE CITY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS THEREFOR". ROLL CALL: AYES: MEMBER BYRD, HEINE, HENNING, REA, RICHARDS NOES: NONE ABSENT: NONE REGULAR ITEMS Chairman Richards introduced the first item, Status Update on Senior Housing Proposal. It was moved by Member Henning, seconded by Member Byrd and carried to: RECEIVE AND FILE THE PRESENTED INFORMATION Chairman Richards introduced the next item; Demolition of Midway Motel 12416 Long Beach Boulevard It was moved by Member Heine, seconded by Member Byrd to adopt: LRA RESOLUTION NO. 97-6 ENTITLED: "A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE USE OF LOW/MODERATE INCOME HOUSING FUNDS FROM REDEVELOPMENT PROJECT _ ARE "A" FOR THE DEMOLITION OF AGENCY OWNED .PROPERTY LOCATED AT 12416 LONG BEACH BOULEVARD". ROLL CALL: AYES: MEMBER BYRD, HEINE, HENNING, REA, RICHARDS NOES: NONE ABSENT: NONE Having no further discussion it was moved by Member Henning, seconded by Member Byrd and carried to adjourn at 8:18 p.m. CHAIRMAN PAUL H. RICHARDS, II SECRETARY ANDREA L. 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I 3 ~' IL • II A AN -~N~ I c o II ~0 NV -+Vm CAV~I I 7 E II -~ W N ~0 ~D O ~JI O O V 0~ CA I et io II "n A CnOwAOC`OOWNO 1 ~ V WO~O~ON00000 ; a ~ ~ an D II f n tl I dl 11 I er II ~ ~O W i a II ~0 Nw0`-+Nr I tl V NV ~+ mNON~IJ I D U N W N ~0 ~0' O UI N -~ V 0~ N r ~ D 11 W NOW AOQ~NOwNO 1 3 '~ -~ wOUiUONNW 000 i m o a £ r. a DON ~OdO N- c SDO mrz ~~ o°~~ ~ Z -i .a = Dm D ~ rG om ~m ~o D 3 GZ ..I D oz ~~ z O O mi m m~ 3 ~-+ . a -I Z{ d UI O 'Tl D zr d ~< O£ and w Z rr7 z m 0 r c -.. O Z z 0 r D AGENDA ITEM DATE: MARCH 4, 1997 TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGEN Y From: Faustin Gonzales, Executive Director By: Emilio Murga, Assistant City Manager Envir nment ~~ Services/Public Works Director Gary Chicots, Director Community Development Subject:, PROPOSED EXCLUSIVE NEGOTIATING AGREII~N'T ("ENA") WITH RESOURCE MANAGEMEI~1'T AFFILIATES GROUP ("RMA") FOR THE DEVELOPMENT OF A SENIOR-HOUSING PROJECT ON AGENCY AND PRIVATE PROPERTY LOCATED AT 12408-12430 LONG .BEACH BOULEVARD. Purpose To have the Agency review and approve an ENA with RMA for the .development of Senior-Housing project seventy (70) residential units and in turn allow the Developer the opportunity to pursue the project and negotiate the terms of the acquisition and a Disposition and Development Agreement ("DDA") and submit project plans. Facts: 1. On December 17, 1996, the Agency purchased the Midway Motel at 12416 Long Beach Boulevard in the amount of $860,000 and directed staff to pursue a Senior-Housing project on the Agency property and on the surrounding properties. At the meeting the Agency directed staff to pursue, an ENA' with the RMA (the "Developer") to be brought back for Agency consideration. 2. Pursuant to Agency direction attached is a draft ENA-for Agency review. The content of the attached ENA has been ,reviewed by the Developer. 3. The Site is approximately 92,102 sq. ft. (.or 2.1 acres) and is located on the west side of Long Beach Boulevard between Carlin Avenue and Palm Avenue 12408-12428 Long Beach Boulevard (the "Site") (See attached map). The Agency holds title to a majority- portion of the Site, approximately 62,200.. sq. ft. Discussion/Analysis: As a result of the qualifications, experience. and identity of the.. .Developer, which are of particular concern to the Agency, the Agency would propose to enter .into this Agreement with the Developer with.. the objective of subsequently agreeing upon and entering into a mutually acceptable disposition and development agreement ("DDA") for the development of the project. The proposed project involves the development of seventy (70) senior residential units. The units shall be exclusive to "Senior Persons" having "Low or Moderate Income" levels at "Affordable Rents" as defined by the Community. Redevelopment. Law codified at California Health and Safety-Code Sections 33000, et sea. The Developer has not submitted any project plans and it is anticipated that the plans would be forthcoming. The ENA calls for the Developer to submit a deposit in the amount of $2,500 that will be used to cover the cost of appraising the surrounding property. The ENA is for a 90 day period which should be ample time for the. Developer to submit architectural drawings and come to terms on the. project and the DDA. 'AGENDA ITEM • ~ • Recommendation: Staff respectfully requests that after Agency and public review of the ENA Document, that the Agency approve to enter into an Exclusive Negotiating Agreement with Resource Management Affiliates Group for the development of a seventy (70) unit Senior-Housing project on Agency and private property located at 12404-12430 Long Beach Boulevard. H:\WP\REDEVELP\RMAENA.STF ~ ~ b. 40 V; ~ r - -. ~ T~ N ~° ' T ~ T v ~S SJ 50 7 2 SO S 7S ~• 6 ~, ; N ~N ~N a ~ ~ ~N m N - o ,~. re w , - o . ~` `J ~ -~ ~~ y~ ~ ~ (p . Q ~ ~. - N Z ~' ti ~~ ~ ~ 1~ ~a~4 o W ~ ~ ~~ ~ ~' a~~~ ~ + ~~ ~ z N Q, ~~rx ~~ ti € t ~` ~~°5 $~fls Oy `~~ ~ Oy N ~ o ~, , a ~ , h ~' ~' • C i ~F. r~~ s ~: ° s a V ~(an-~ y~ ¢¢ c p^ F 5 ? ~ ~~~ ~~ A ~~ ~ g ~ ~.i ~ ~ O O ° ~ ~, ,, ~ O ! f ~ ~ ~ ` _, o ,, ~, . r ~ ,. o'~ w ~ ~~~ o ,. ti ~, ,, o o ~, ~,, .. m ~,~ ,. ~ , v~ //~F A `` ~ `` ~ O !~ ° 'moo Oy ~ ` r ~ ~ (~'~ ~ 0~';~~~ c `' ~ ~ Cu~O o 0~' ~~o c iVj ~ X421 ~~`~~ ~0~, \y~~~e% 8 '' ~' ~ ~N ~ '~'~+ a o a t,~ `9 '''s Ear o vo n~ Zr ~,; RO$ s N C ' ~> O '~ ~ .. ~ .. O n D ~ U. r ti z '° O~ O ~ , t0 ~~~//~~ ~i/ _~ \1 k~k boy ~h~ a'83 8 e~ w o 4 ~ a ~s V • • RESOLUTION NO. A RESOLUTION OF' THE LYNWOOD REDEVELOPMII~TT AGENCY APPROVING THE EXECUTION OF AN EXCLUSIVE NEGOTIATING AGREEMEI~TT {"ENA") WITH RESOURCE MANAGEMEDI'r AFFILIATES GROUP ("DEVELOPER") FOR THE DEVELOPMENT OF SEVENTY (70} SENIOR HOUSING UNITS ON AGENCY-OWNED AND PRIVATE PROPERTY LOCATED AT 12408-12428 LONG BEACH BOULEVARD WHEREAS, the Agency is implementing a Redevelopment Plan (the "Redevelopment Plan"} in the City of Lynwood (the "City"), State of California, adopted by the City by Ordinance No. 945 on July_10, 1973; as amended; and WHEREAS, the proposed ENA will permit the Developer to obtain the necessary financial commitments to complete the project; and WHEREAS, the proposed project will provide seventy (70) Senior-Housing units anticipated for "Low or Moderate Income;" and WHEREAS, the site will be developed pursuant to the General Plan and Municipal Code requirements; and WHEREAS, the proposed project will put underutilized property into productive use. NOW, THEREFORE, BE IT RESOLVED by the Lynwood Redevelopment Agency that: Section 1. The Lynwood Redevelopment Agency based on the aforementioned findings and determinations hereby adopts this resolution and authorizes the Executive Director to execute an Exclusive Negotiating Agreement with the Developer. Section 2. This resolution shall go into effect immediately - upon its adoption. . PASSED, APPROVED, and ADOPTED this 4th day of March, 1997 PAUL H. RICHARDS, CHAIRMAN ATTEST: Andrea L. Hooper, Secretary Faustin Gonzales Executive Director APPROVED AS TO FORM: APPROVED AS TO CONTENT: Agency Special Counsel Gary Chiaots, Director• Community Development H:\41P\REDEVELP\RMAENA.STF ` J ! ~ EBCLIIBIPE NEGOTIATING AGREEMENT This Exclusive Negotiating Agreement (the""Agreement"), dated as of this ~ day of .1997, is .made by and between the Lynwood Redevelopment Agency, a public body, corporate and. politic (the "Agency"), and Donna R. Watson doing business as Research Management Affiliates Group, a sole proprietorship (the "Developer"). For and in consideration of the mutual covenants and promises contained herein, the parties hereto agree as follows: RECITALS This Agreement is entered. into with reference to the following facts: A. In furtherance of the objectives of the California Community Redevelopment Law, the Agency has undertaken a program :for the redevelopment of certain areas within the City, and in that connection, has undertaken and is now carrying out the responsibility for the redevelopment of Project Area "A" (the "Project Area") pursuant to and in furtherance of the Redevelopment Plan for.such Project Area. B. One of the objectives of .the Redevelopment Plan is the expansion of the community's supply of affordable housing through, among other things, the development of certain real property for affordable housing. C. The subject matter of this Agreement is that certain real property owned by the Lynwood Redevelopment Agency (the "Agency") commonly referred to as 12416 Long Beach Boulevard, located within the City of Lynwood, State of California (the,"Sales Parcel") along with those certain other adjacent and third party-owned properties commonly referred to as 12408, 12424 and 12428 Long Beach Boulevard, also located within the City of .Lynwood, State of California (collectively referred to herein as the "Participating Parcels"). Both the Sales Parcel and the Participating Parcels are sometimes collectively referred to herein as the "Site"). The Site. is approximately 92,102 square feet. It is anticipated that in the event of and prior to the development of the Site as contemplated by this Agreement and/or a Disposition and Development Agreement as provided hereinbelow, all portions of the Site will be owned by the Developer. It is proposed by the Developer that the Site be developed as a senior housing project comprised of seventy (70) residential units (which shall hereinafter be referred to as the "Project"). Upon completion of the Project, each of the units shall be rented exclusive to "Senior Persons" having "Low or Moderate.Income" levels at "Affordable Rents" as those terms are RMAG2.ENA 2-10-97 2nd Draft Page 1 of 10 defined in the Community Redevelopment Law codified at California Health and Safety Code Sections 33000, et seer., or hereinbelow. D. As a result of the qualifications, experience and identity of the Developer, which are of particular concern to the Agency, the Agency desires to enter into-this Agreement with the Developer with the objective of subsequently agreeing upon and entering into a mutually acceptable disposition and development agreement ("DDA") for the development of the Project as referenced in Section B hereinabove consistent with the-terms and conditions of this Agreement at the earliest practical .date. E. The Agency anticipates that following the execution of. this Agreement .and through the period of negotiation and preparation of a DDA with respect to the Project, the staff of the Agency, as well as certain consultants and attorneys of the Agency, will devote substantial time and effort to reviewing plans, contacting and meeting with the Developer and various necessary third parties, providing other aid and assistance to the Developer in connection with the proposed Project and negotiating and preparing a DDA consistent with the basic terms and mutual understandings established in this Agreement. F. The Agency and the Developer desire to enter into this Agreement. in order to set forth the rights and duties of the parties during the term of this Agreement subject to the Owner Participation rules and regulations established for the Project Area. Section 1. Definitions. The following terms shall have the meaning ascribed thereto, unless the context requires otherwise: "Affordable Rents" means monthly rent which shall not be less than twenty-eight percent (28$) of monthly gross income for the household, nor exceed the product of thirty-five percent (35$). times. one hundred ten percent (11.0%) of the applicable median income of the Lynwood, California area, adjusted for household size. "Agency" means the Lynwood Redevelopment Agency, a public body, exercising governmental functions and powers and organized and existing under the Community Redevelopment. Law of the State of California, California Health and Safety Code, Section 33000 .et seQ. (as amended from time to time, the "Redevelopment Law"). "Agreement" means this Exclusive Negotiating Agreement, dated as of 1997 by and between the Agency and the Developer. RMAG2.ENA 2-10-97 2~d Dreft Page 2 of 10 • • "City" means the City of Lynwood, a municipal corporation, organized and existing pursuant to the Constitution and laws of the State of California. "Developer" means Resources Management Affiliates Group, a "Exclusive Negotiating Period" means the period of ninety (90) consecutive days beginning on the date of this Agreement, as shortened or extended by the provisions of Section 4, below. "Participating Parcels" means those certain third party-owned parcels of real property commonly referred to as~12408, 12424 and. 12428 Long Beach Boulevard, located within the City of Lynwood, State of California which are located adjacent to the "Sales Parcel" and generally depicted on Exhibit A, attached hereto and incorporated herein by this reference. "Party" means any party to this Agreement. '!Project" means the Developer's proposed development of the Site to provide for the development and construction of a seventy (70) unit senior housing project of approximately square feet, to be rented exclusively to °tSenior Persons" of "Low or Moderate Income" at "Affordable Rents" as those terms are defined"in the Community Redevelopment Law codified at California Health and Safety Code Sections 33000, et seg., as contemplated and set forth in Paragraph B above, and in accordance with plans. and . specifications subject to and approved by the City and the Agency. "Redevelopment Law" means the Community Redevelopment Law, which is codified at California Health and Safety Code Sections 33000, et sea. "Sales Parcel" means that certain. parcel of real property owned by the Agency commonly referred to as 12416 Long Beach Boulevard, located within the City of Lynwood, State of California, located adjacent. to the "Participating Parcels" and generally depicted on Exhibit A, attached hereto and incorporated herein by this .reference. - "Senior Persons" means a person 55 years of age or older. "Site" means those certain real properties consisting of the "Sales Parcel" and the "Participating Parcel" which are located within the City of Lynwood, State of California which~is generally depicted on Exhibit A, attached hereto and incorporated herein by this reference. Section 2. Obligations of Aaen~. During the Exclusive Negotiating Period the Agency shall use its good faith efforts to: RMAG2.EMA 2-10-97 2nd Draft Page 3 of 10 ~ i {) provide all environment assessment and documentation necessary for the review and approval of the Project; (ii) diligently process and cause any required zoning or rezoning to be performed by the City of Lynwood to legally accommodate the development of the .Project consistent with the terms of an Disposition and Development Agreement. (the "DDA"); and (iii) provide such civil engineering and/or off-site analysis, costing and design work necessary for the development of the Project. Moreover, during the Exclusive Negotiating Period and subject to the Owner Participation rules and requirements established for the Project Area, the Agency shall use its good faith efforts to: (i) negotiate.. in good faith with the Developer with respect to the development of the Project and _(ii).. not negotiate, discuss or otherwise communicate with any person or entity, other than the Developer, regarding a DDA for the development of the Project. Throughout the Exclusive Negotiating Period, Agency staff shall be available to meet with the Developer to discuss the Project, the Site Plan, and any other issues pertinent to the preparation of a DDA for the development of the Project. " Section 3. Obligations of Developer. . (a) Within ninety (90) days after the date of this Agreement, Developer shall deliver to the Agency all of the following: (i) a written statement setting forth the Developer's financial projections for the Project, including but not limited to a budget for the acquisition, construction .and development of the Project, a proposed schedule for the construction and sales phases of the Project, a table describing the sources and uses of funds, a pro -forma analysis of anticipated return on investment and a narrative describing the fundamental economics of the Project, all in form and content satisfactory to the Agency; and (ii) evidence of .financing, including but not limited to (A) a commitment letter in form and content satisfactory to the Agency, from an institutional lender satisfactory to the Agency, expressing an intent, subject to the Developer's satisfaction of reasonable conditions, to provide financing for the acquisition, construction and .development of the Project-on specified terms; and (B) written evidence satisfactory to the Agency demonstrating that the Developer either has committed sufficient equity to the Project to qualify for the financing and pay all acquisition, construction, development, marketing and other costs in excess of the anticipated proceeds of the financing or that the Developer has.obtained written commitments from creditworthy investors setting forth their intent to invest in the Project; and (iii) a site plan and basic architectural renderings of the Project, including but not .limited to a well-defined architectural concept for the Project showing location of parking, RMAG2.ENA 2-10-97 2nd Dreft Page 4 of 10 location and size of the building (including-height and perimeter ..dimensions), landscaping and architectural character of the Project, in form and content reasonably satisfactory to Agency and subject to further review and approval or disapproval by Agency and the City following the execution of a DDA. (b) Throughout the Exclusive Negotiating Period, the Developer ,shall negotiate in good faith with the Agency with respect to the development of the Project. Section 4. Extension/Exclusive Negotiation Agreement. AS SET FORTH ABOVE, THE EXCLUSIVE NEGOTIATING PERIOD SHALL TERMINATE ON THE DATE THAT IS NINETY (90) DAYS AFTER THE DATE HEREOF. HOWEVER, THE EXCLUSIVE NEGOTIATING PERIOD MAY BE EXTENDED " BY THE MUTUAL CONSENT OF THE .PARTIES FOR UP TO TWO (2) ADDITIONAL PERIODS OF THIRTY (30) DAYS EACH. .THE AGENCY'S EXECUTIVE DIRECTOR MAY GRANT EACH SUCH EXTENSION FOR AND ON BEHALF OF THE AGENCY IN HIS SOLE AND ABSOLUTE DISCRETION, UNLESS OTHERWISE DIRECTED BY THE AGENCY. PRIOR TO GRANTING ANY SUCH EXTENSION, THE AGENCY'S EXECUTIVE DIRECTOR SHALL DETERMINE IN HIS SOLE AND ABSOLUTE DISCRETION, UNLESS OTHERWISE DIRECTED BY THE AGENCY, WHETHER THE DEVELOPER HAS OBTAINED THE NECESSARY LETTERS OF INTENT AND HAS PERFORMED ALL OTHER OBLIGATIONS DESCRIBED IN SECTION 3 HEREINABOVE. Initials: ' Developer Agency If, in the sole and absolute discretion of the Agency's. Executive Director, unless otherwise directed by the Agency, the Developer .has performed the obligations of the Developer described in Section 3 hereinabove and the Executive Director has granted an. extension of the term of this Agreement as provided .hereinabove,. then the parties shall, within such extended term, continue to negotiate a DDA.with respect to the proposed development of the Project,. Section 5. Distosition and Develot~ment Agreement The Parties hereby acknowledge and agree that during the term of this Agreement, as such term may be extended pursuant to Section 4 hereinabove or shortened pursuant to Section 9 hereinbelow and subject to the applicable Owner Participation rules and regulations, established for the Project Area, the Parties shall use their respective good faith efforts to negotiate and enter into a DDA which shall contain terms and provisions including, but not limited to, the following: (i) the design of the Project by 'the Developer, which design shall be subject to approval by the Agency and the City; (ii) the construction and development of the Project by the Developer, in accordance with final plans and specifications to be provided by the Develaper and approved by the Agency and the City RMAG2:ENA 2-10-97 2nd Draft Page" 5 of 10 and pursuant to a detailed .schedule of performance by the .Developer; (iii) the right"of the Agency and the City to inspect ,the Project from time to time to assure compliance with the .foregoing provisions and all applicable federal, state and local laws;" (iv) the Developer shall market the rental units to only Senior Persons of Low or Moderate Income at Affordable Rents; (v) provision by the Developer to the Agency upon the Agency's request of concepts, schematics and the final plans and working drawings for the Project and participation in presentations with respect thereto; (vi) the Site and the Project shall be subject to covenants running with the land to protect the affordability of the rental units; (vii) provision by each .contractor and/or subcontractor performing work on the Project of the requisite performance bond and labor and materials payment bond to assure completion of the Project free of mechanics' liens; and (viii) that the Project shall be of the highest quality and standard.. Section 6(a). Developer DeDOSit. Upon the approval of this Agreement by the Agency, .the Developer shall pay to the Agency the sum of Two Thousand Five Hundred Dollars ($2,500) as a deposit (the "D.eposit") to the Agency securing its obligation to comply with the terms of this Agreement (i.e., to negotiate with and enter into a DDA with the Agency relative to the .development of the .Project on the Site). The Deposit shall be in the form of (1) cash; or (2) a cashier's or certified check. The proceeds .of the Deposit shall be used in accordance with Section 6(b) of this Agreement. Section _6(b). Reimbursement/Payment of Agencv Fees The proceeds of the Deposit shall be used for the following purposes in the following order: 1. First, the proceeds of the Deposit (or any portion thereof) may be applied by the Agency from time to time as necessary to pay any and all costs incurred by the Agency in carrying out the purposes of this Agreement, including but not limited to the cost of appraisals., environmental site assessments, and fees paid or payable to attorneys and economic consultants.. ' 2. Second, in the event that this Agreement is terminated " pursuant to Section 9 hereof, any remaining proceeds of the Deposit (following application of such proceeds for the purposes specified in paragraph l hereinabove) shall be retained by the Agency as a. holding fee. (in compensation for the Agency's holding the Sales Parcel off the market during the elapsed portion of the Exclusive Negotiating Period), without prejudice to the Agency's right- to RMAG2.ENA 2-10-97 2nd Oraft Page 6 of 10 • obtain monetary damages and/or other remedies for the Developer's breach of this Agreement. 3. Third, in the event that the Developer and the Agency enter .into a DDA with respect to the Site, any remaining proceeds of the Deposit"(following the application of such proceeds for the :purposes specified in paragraphs. 1 and 2 hereinabove) shall be applied toward the purchase price payable for the Site by the Developer under the DDA. 4. Fourth, in the event that the Developer complies with all of its obligations under this Agreement but the Parties do not enter into a DDA within the Exclusive Negotiating Period, any remaining proceeds of the Deposit .(following the application of such proceeds for the purposes specified in paragraphs 1, 2.and 3 hereinabove) shall be returned to the Developer. Section 7. Schedule of Performance. It is the intention of the Agency and Developer that the development of the Site. be completed in a timely and an expeditious manner. Accordingly, the DDA shall provide in reasonable .detail the tasks to be completed by the Parties in the development process and the projected date of completion for each such task. Section 8. Environmental. Execution of a DDA by the Agency shall be subject to the Project's compliance with the California Environmental Quality Act ("CEQA"), California Public Resources Code §§ 21000 et sea. (as amended, and including any successor statutes and regulations promulgated pursuant thereto). ~In this -regard, the Agency may conduct an"Initial Study of the proposed " Project pursuant to Section 15063 of CEQA in order to determine if an .environmental impact report (an "EIR") will be necessary to examine potential and significant effects the proposed Project will have on the environment. The Developer hereby agrees to provide all assistance to the Agency necessary for the Agency to carry out ,its obligations under CEQA. Section 9. Termination. The Agency may terminate this Agreement if the Developer shall fail to comply with and perform in a timely manner all provisions hereof to be performed by the Developer, or if no progress is being made in the DDA negotiations asp provided for herein.. The Agency shall give five (5). days written notice to the Developer specifying any failure of the Developer to comply with the terms of this Agreement. The Agency shall not terminate this Agreement if the Developer cures the deficiency (ies ) specified in the notice within said five ( 5 ) day period.. Section. l0. Owner Participation Requirements. This Agreement and the obligations of the .Parties set forth in this Agreeeent, are RMAG2.ENA 2-10-97 2nd Draft Page 7 of 10 • . subject to the applicable Owner-Participation rules and regulations established for the Project Area. Section 11. Governing Law. This Agreement and the legal relations between the parties hereto shall be governed by and construed and enforced in accordance with the laws of the State of ,California. Section 12. No Other Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof. There are no agreements or understandings between the parties hereto and no representations by either party to the other as an inducement to enter into this Agreement, except. as expressly set forth herein. A11 prior negotiations between the parties are superseded by this Agreement. This Agreement may not be altered, amended or modified except by a writing executed by both parties. Notwithstanding anything provided herein to 'the contrary, whether express or implied, the Agency shall have no . obligation to enter into a DDA with the Developer and neither the Agency nor .its officers, members, staff or agents have made any promises to the Developer other than to exclusively negotiate in good faith with the Developer during the Exclusive Negotiating Period, and no statements of the Agency or its officers, members, staff or agents as to future obligations shall be binding. upon the Agency until a DDA has been approved by the Agency and the City and duly executed by the Executive Director of the Agency or his • designee. Section 13. Prohibition Against Assignment. This Agreement shall not be assigned by the Developer. Section 14. Notices. Any notice which is required or which may .given hereunder may be delivered or mailed to the party to be notified, as follows: If to the Developer.: • Donna R. Watson dba Resource Management Affiliates Group 7400 E. Slauson, Suite. 7W _ Los Angeles, California 90040 Attention: Donna R. Watson If to the Agency.: Lynwood Redevelopment Agency . 11330 Bullis Road Lynwood, California 90262 Attention: Faustin Gonzales, Executive Director RMA62.ENA 2-10-97 2nd Draft Page 8 of 10 With a copy to: Kane, Ballmer and Berkman 515 S. Figueroa Street, Suite 1850 Los Angeles, CA 90071 Attention: Royce K. Jones, Esq. Section 15. Public Hearinct. Any DDA that may be negotiated is subject to consideration at a public hearing by the Agency and the City. Nothing in this .Agreement shall commit or be construed as .committing the Agency or the City to approve any DDA. Section 16. Counterparts. This Agreement may be executed in counterparts, each of which when so executed shall be deemed an original, and all of which, together, shall constitute one and the same instrument. Section 17. Attorney's Fees. Tn the event that either party hereto brings an action or proceeding against the other party to enforce or interpret any of the conditions or provisions of this Agreement, the prevailing party shall be entitled to recover all reasonable attorney's fees and expenses and court costs associated with such action or proceeding. Section 18. Effect of Agreement. Notwithstanding any other provision of this Exclusive Negotiating Agreement, the Parties expressly acknowledge. and agree as follows: None of the matters described in this Agreement as a purported commitment or obligation of the Agency shall have any effect unless and only to the extent such matters are expressly set forth in a DDA or other written agreement duly authorized and approved by the Agency and the City. Notwithstanding any provision of this Agreement to the contrary, Developer acknowledges and expressly . agrees as follows: (a) that this Agreement does not obligate the Agency in any way to approve, in whole or in part, any of the matters described in this Agreement, including, without limitation, matters pertaining to land use entitlements or approvals, permits, waivers or reduction of fees, development or financing of the Site or any other matters to be acted on by the.Agency, as applicable; (b) that all such matters shall be considered and processed by the Agency in accordance with all otherwise applicable Agency and City requirements and procedures; and (c) that the Agency reserves all nights to approve, disapprove or approve with conditions all such matters. in its sole discretion. Developer further acknowledges and ,agrees that during the negotiations, the parties shall conduct such economic analyses and re-use studies as may be necessary to determine the amount, if any, of public funds needed for the redevelopment of the Project as contemplated by this Agreement in an economically feasible manner. RMAG2.ENA 2-10-97 2nd Draft Page 9 of 10 • i -~ Upon the execution of a DDA by the parties, this Agreement shall be null and void and of no effect and shall be superseded by the terms and conditions of the DDA. The Agency and the Developer shall promptly commence the good faith negotiation of a DDA upon execution of this Agreement. IN WITNESS WHEREOF, the Agency and the Developer have executed this Agreement in the City of Lynwood, Los Angeles. County, California, on the date hereinabove first set out. DEVELOPER: - - DONNA R. WATSON dba RESOURCES MANAGEMENT AFFILIATES GROUP a sole proprietorship APPROVED AS TO FORM: KANE, BALLMER & BERKMAN Agency Special Counsel By: Royce K. Jones RMAG2.ENA 2-10-97 .2nd Draft By: Donna R. Watson AGENCY: LYNWOOD REDEVELOPMENT AGENCY a public body, corporate and politic By: Faustin Gonzales Executive Director Page 10 of 10 • • DATE: March 4, 1997 T0: .HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY - FROM: Faustin Gonzales,. Executive Director %~~ By: Emilio Murga, Assistant City Manager Environm Services/Public Works Director Gary Chicots, Director Community Development ~~ SUBJECT: PROPOSED EXCLUSIVE NEGOTIATING AGREENlEr1'T ("ENA")BETWEEN THE REDEVELOPMENT AGENCY AND BASKARON .INCORPORATED, A CALIFORNIA CORPORATION: Purpose• To seek Agency approval and review of a proposed ENA with Baskaron Incorporated for the purpose of developing a Chevron Service .Station/Drive-through restaurant at 1160T-11629 Long Beach Boulevard. Facts: 1. On November 15, 1997, the. Agency approved the concept submitted by Baskaron Incorporated (the "Developer") to develop a Chevron Station/Drive-Through restaurant at 11601- 11629 Lohg Beach Boulevard (the "Site") At the meeting the Agency directed staff to work with the Developer and draft an ENA to be brought back before the Agency for consideration. 2. The Site is comprised of four (4) separate properties and is approximately 44,472 sq. ft. or 1.02 acres (see attached Map). Pursuant. to California Redevelopment Law, staff sent out participation-letters to all the property and business owners that would be effected by the proposed project. The various owners were given the opportunity to participate in the project, 3. The Site is located at a vital intersection that would be ideal for the type of use that is proposed. The proposed project will replace uses that are maintained in a physically blighted condition 'and will provide the Agency with the opportunity to collect tax increment and sales tax. 4. Attached for Agency review, and consideration is a draft ENA document. Analysis• ~' The proposed project calls for the development of a 6,000 sq. ft. Chevron convenience store and a franchise type (Pizza Hut, Taco Bell, etc..) restaurant with a drive-through window.-The project will also be developed with 36 service pumps (See attached site plan) . . Under the ENA staff will be reviewing the project proforma that will be submitted by the, developer as well as more refined architectural drawings. The ENA calls for a $10,000 deposit that will be submitted by the Developer to cover the cost of appraisals and requisite studies. The ENA is for an initial 90 day period.. Recommendation: Staff respectfully respects that after Agency and public review of the ENA document, that the Agency approve to enter into an "Exclusive Negotiating Agreement with Baskaron Incorporated for the development of a Chevron Service Station/ Drive-through restaurant at-116-01-11629 Long Beach Boulevard. h:\wpfiles\redevelp\bdcena.stf AGENDA ITEM ,, .,` ~ o.. c , • a~ ~ 00 ~ qc~ o ~~ ammo . R og4 \ti 0 °o U o 0 o a ~ 6ZS9 1809. 1809 15. ,~ ,~ ~ ~ ~ an18'... HOd3 ON01 a ~~~ ~ ~ a . a i ~ t..r - o, y osz ~ os'ta OS os os ~ or ~Qy ~ Q N ~ ~1 o (~ o ,n ~ o~ ~ O i A / T ~~ ~ ~ O :r 9 ~ ~" • .~ m s°oo, ` os os 0 osld Psza - ~ a ryE~ 8/ 9~ a ~ O~ p 0, pss,~p 0~ cp h Oy/ ~ ` ~ - . ~ \ ho ho ,ph yo ~ \ ~ ~ ~~\ O ,~o ~ ~ + c0~ ~ m O \ ` ~ . ~\~\ ~, O ~ O `p \ ~ ti~ ~ ~ . ~ ~ M1 \O ~ \ ~ ~ti ~ ` ~~ o O Ur ~~~ ~ ~ ` \ tib ~ ~ h oa ~ ~ N ,~~ 4 ~ ~° ~ ~ • y O ~ - ~0 0 o by ~~ ~ ` \ P yp N •- ~ ~° ti"' h Go, ~ `.` h/ Ob o9j O ~ 0 / B °'' h°~ os O/ q Lh\ ry ~ L ~ ~; ~}9-~ f ~/~ b, 06 / o f ~ ~ Q U 06 ~hp ti ~/ Q N ho oe ~ i oe N~ ~i~eON~~ ~p ~ - ~ , .L/ N ; o ~ . N m I I h r~~ t` ~~~ ~ ~ ~ i ~ ~ i ~, I y~i ~f i ~ ~ `N N _ ~ ~, ~ cap ap N o ooo~ o u ca ~ c0 ,~ is ~ ~ `e. RESOLUTION NO. A RESOLUTION OF THE LYNWOOD REDEVELOPMEIJT AGENCY APPROVING THE EXECUTION OF AN EXCLUSIVE NEGOTIATION AGREEMENT (ENA) WITH BASKARON INCORPORATED-(DEVELOPER) TO DEVELOP A CIIEVRON SERVICE STATION AND DRIVE-THROUGH RESTAURANT AT 11601-11629 LONG BEACH BOULEVARD WHEREAS, the Agency is implementing a Redevelopment Plan in the City of Lynwood, State of California, adopted by the City 'Ordinance No. .945 on July 10, 1973,, as amended; and WHEREAS, the proposed ENA will permit the developer to obtain financial commitments from. outside public/private resources; and WHEREAS, the pursuit of the proposed project will assist in the elimination of blight; and -, WHEREAS, the project- will be in furtherance of the implementation of the Redevelopment Plan; and WHEREAS, The proposed project will provide tax increment and generate sales tax; and WHEREAS, The site will be developed pursuant to the General ` Plan and Municipal Code requirements.; and- NOW, THEREFORE., BE IT RESOLVED by the Redevelopment Agency of the City of Lynwood that: Section 1. The Redevelopment Agency, of the City of Lynwood, based on the aforementioned findings and. determinations hereby adopts this resolution and authorizes the Executive Director to { - execute an Exclusive Negotiation Agreement with the Developer. Section 2. This resolution shall go into effect immediately '.upon its adoption.. - PASSED,. APPROVED, and ADOPTED this 4th day of March, 1997 PAUL H. RICHARDS, CHAIRMAN ATTEST: - Andrea L. Hooper, Secretary Faustin Gonzales Executive Director APPROVED AS TO FORM: APPROVED AS TO CONTENT: Agency Special Counsel- Gary Chicots, Director Community Development f:wp\redevelp\BDCENA.STF EBCLIISIVE NEGOTIATING AGREEMENT This Exclusive Negotiating Agreement, is dated as of-this day of 1997 (the "Agreement"), is made by and between the_ Lynwood Redevelopment Agency, a public body, corporate and politic (the "Agency"),.and Baskaron Incorporated, a California corporation (the "Developer"). For and in consideration of the mutual covenants and promises herein, the parties agree as follows:. RECITALS • This Agreement is entered into with reference to the f of lowing facts A. In furtherance of ..the objectives of 'the California Community Redevelopment Law, the Agency has undertaken a program for the redevelopment of certain areas within the City, and in this connection, has undertaken and is now carrying outs the responsibility for the redevelopment of the Project Area "A" (the ,' ~ "Project Area") pursuant to and in furtherance of the Redevelopment Plan for such Project Area. - B. The subject matter of this Agreement is 'those certain -third party-owned parcels of real property consisting of an entire city block comprised of the east side of Long Beach Boulevard along Louise Street and Lynwood Road, within the City of Lynwood., State of California (the "Site"}. The Site is comprised of approximately Forty-Four Thousand Four Hundred Seventy-Two (44,472) square feet in land area. It is anticipated that in the event of and prior to the development of the Site as contemplated by this Agreement and/or a Disposition .and Development Agreement as set forth. hereinbelow, all parcels comprising the Site will be owned by the Developer. It is proposed by the Developer that the Site be redeveloped as a gasoline/retail mini-mart facility of approximately Five Thousand. Four Hundred (5.,400) square feet, including a drive-through restaurant. .The Developer shall also provide all parking (on-site and/or off-site), as appropriate and necessary for the proposed development of the Site along with appropriate landscaping, all in accordance with applicable~City regulations and standards.. C. As a result of the qualifications, experience and identity of Developer, which are of particular concern to Agency, the Agency desires to enter into this Agreement with•the Developer with the objective of subsequently agreeing upon and entering into a mutually acceptable Disposition and Development Agreement for the development of the Site. as referenced in Section B hereinabove consistent with the terms and conditions of this Agreement at the earliest practical date. Baskeron.ENA 2/9/97 Dreft Page 1 of 10 .~ D. The Agency anticipates that following execution- of this Agreement and through the period of negotiation and preparation of a Disposition and Development Agreement with respect to the Project, the staff of the Agency., as well as certain consultants and attorneys of the Agency will devote substantial time and effort in reviewing plans, contacting and meeting with the Developer and various other necessary third parties, and providing other-aid and assistance to the Developer in connection with the proposed Project, and in negotiating and preparing a Disposition and Development Agreement consistent with the basic terms and mutual. understandings established in this Agreement. E. The Agency and the Developer desire to enter. into this: ' Agreement in order to set forth the rights and duties of the Parties during the term of the Exclusive. Negotiating~Period subject to the owner Participation rules and regulations established for the Project Area: Section 1. Definitions. The following terms shall have the meaning ascribed thereto, unless the context requires otherwise: "Agency" means Lynwood Redevelopment Agency, a public body, exercising governmental functions. and .powers and organized and existing under the Community- Redevelopment Law of the State of California, California Health and Safety Code, Section 33000~et sect.. (as amended from time to time, the "Redevelopment Law"). "Agreement" means this Exclusive Negotiating Agreement, dated as of 1997 by and between the Agency and the Developer. "City's means the- City of Lynwood, a municipal corporation, organized and existing pursuant to the Constitution and. laws of the State of. California. "Developer" means Baskaron Incorporated.,' a California corporation. °Exclusive Negotiating Period" means. the period of ninety (90) consecutive days beginning on the date.-of this Agreement, as shortened or extended by the provisions of Section 4, below.. "Party" means any party to this Agreement. "Project" means the Developer's proposed development or improvements along with appropriate parking and landscaping, all as .contemplated and. set forth in Paragraph B, ,above and in accordance with plans and specifications subject to and approved by the City and the Agency. 8askeron.ENA z~9i9~ Draft Page 2 of 10 "Redevelopment Law" means the Community Redevelopment .Law „ being Calfornia'Health and Safety Code Sections 33000, et .sea., "Site" means that certain real .property consisting of an entire city block running along the east side of Long Beach Boulevard along Louise Street and Lynwood Road, within the City of Lynwood, State of California, and is generally depicted on Exhibit "A", attached hereto and incorporated herein by this .reference. .Section. 2. Obligations of Aaency. During the .Exclusive. Negotiating Period the Agency shall. use its good faith efforts tos (i) provide all environment assessment and docun-entation.necessary- for the review and approval of the Project; (ii) diligently process and cause any .required zoning or rezoning to be performed by the City of Lynwood to legally accommodate the development of the Project consistent with the terms of an Disposition and Development Agreement; and (.iii) provide such civil engineering and/or off-site analysis, costing and design work necessary for the development of ,the Project. Moreover, during the Exclusive Negotiating Period and subject to the owner Participation rules and requirements established for_the Project Area, the Agency shall not negotiate, discuss or otherwise communicate with any person or entity, other than the Developer, regarding a Disposition and Development Agreement for the development of the Project. Throughout -the Exclusive Negotiating Period, Agency staff-shall be .available to. meet with the Developer to discuss the Project, the Site Plan and architectural renderings, and any other issues pertinent to the .preparation of an Disposition and Development Agreement for the development of the Project. Section 3. Obligations of Developer. (a) Concurrently with the execution of this Agreement by the Agency -and to the extent construction financing will need to be obtained by the Developer from an institutional lender(s) for. the acquisition and development of the Project, the Developer shall provide the Agency with, a Letter of Intent (in form and substance reasonably acceptable to the Agency) executed by the Developer, indicating to the Agency's reasonable satisfaction that such an institutional lender(s), approved by the• Agency, has expressed interest in ,financing the acquisition, construction and development of the Project by the Developer, as the case may be. Such Letter . of Intent shall also outline the financial terms pursuant to which it would consider loaning money to the Developer for the Project. (b) Prior to the expiration of the Exclusive Negotiating Period, the Developer shall provide an equity commitment acceptable to the. Agency. in a manner specifically identifying the sources of all such equity financing to be used by Developer. to finance the development of the Project. In the event that the Project is to be financed exclusively by equity financing, such equity commitment Baskeron.ENA 2/9/97 Draft' Page 3 of 10 shall be in an amount sufficient to provide for the acquisition of the Site and the development of the Project, as the case may be. Moreover, such equity commitment .may also be in the form of letters ~. of intent from investors 'of adequate credit-worthiness setting forth their intent to invest the equity required for this Project. (c) Prior to the expiration of the Exclusive Negotiating Period, the Developer shall provide to the .Agency a reasonable cost proforma, and a reasonable table describing the sources and uses of .funds and cash flow projections and distributions, concerning the Project, and a narrative describing the fundamental economics of the .Project, all in form and substance acceptable to the Agency. (d) At or prior to 4:30 p.m. on or before the 30th day after the. execution date of this Agreement., the Developer shall deliver to-the Agency.a Site Plan and basic architectural renderings of the .Project. The Site Plan and basic architectural renderings shall include a well defined. architectural concept for the Project showing vehicular circulation and access points, .amounts and location of parking, location and size of. all buildings (including height and perimeter dimensions). pedestrian circulation, landscaping and architectural character of the Project. However, notwithstanding submission by the Developer as set forth herein; no such Site Plan or architectural renderings shall be deemed final until final approval by the Agency, pursuant to a Disposition and Development Agreement, and by the City. In no event shall the Agency .unreasonably withhold its approval of such Site Plan or architectural renderings. Section 4. Extension/Exclusive Negotiation Agreement. AS SET FORTH ABOVE, THE. EXCLUSIVE NEGOTIATING PERIOD SHALL TERMINATE ON THE DATE THAT IS NINETY (90) DAYS AFTER THE DATE HEREOF. HOWEVER, THE EXCLUSIVE NEGOTIATING PERIOD MAY BE EXTENDED BY THE. MUTUAL CONSENT OF THE PARTIES FOR UP TO TWO (2) ADDITIONAL PERIODS OF THIRTY (30) DAYS EACH. THE AGENCY'S EXECUTIVE DIRECTOR MAY GRANT EACH SUCH EXTENSION FOR AND ON BEHALF OF THE AGENCY IN HIS SOLE AND ABSOLUTE DISCRETION, UNLESS OTHERWISE DIRECTED BY THE AGENCY. PRIOR TO GRANTING ANY SUCH EXTENSION,- THE AGENCY, UNLESS OTHERWISE DIRECTED BY THE' AGENCY, WHETHER THE DEVELOPER HAS OBTAINED THE NECESSARY LETTERS OF INTENT AND HAS PERFORMED ALL OTHER OBLIGATIONS DESCRIBED IN SECTION 3 HEREINABOVE. Initials• Developer Agency If, in the sole and absolute discretion of~ the Agency's Executive Director, unless otherwise directed by the Agency, the Developer has performed the .obligations of the Developer described in Section 3 hereinabove and the Executive Director has granted an extension of the term of this Agreement as provided hereinabove, Baskeron.ENA 2/9/9T Dcaft Page,4 of 10 then the parties shall within such. extended term, continue to negotiate an Disposition and Development Agreement with respect to the proposed development of the Project.. Section 5. Disposition and Development Agreement The Parties ,hereby acknowledge-and agree that during the term of this Agreement, as such term may be extended pursuant to Section 4 hereinabove and subject to the applicable Owner Participation rules and regulations established for the Project Area, the Parties shall use their respective good faith efforts to negotiate and enter into an Disposition and Development Agreement which shall include, but not be limited to, the following: () the design of the Project by the Developer, which .design shall be subject to~approval by the Agency and the City, (ii) the construction of the Project by the Developer in accordance with final plans and specifications to be provided by the Developer and approved by the Agency and the City,. pursuant to a detailed schedule of performance by the Developer, (iii) the operation and management of the.Project by .the Developer in a good and professional manner, (iv) the maintenance of landscaping, buildings and improvements in good condition and satisfactory state of repair. so as to be attractive to the residents and to the community, (v) the operation of the Project by the Developer in compliance with all equal opportunity standards established by Federal, State and local law, (vi) the right of the Agency and the City to review the rent rolls of the Project (to the extent applicable) and. to inspect .the .Project from time to time to assure compliance with the foregoing provisions, (.vii) provision by the Developer to the Agency upon the Agency's request of concepts, schematics and the final plans and working drawings for the Project and participation in presentations with respect thereto, (viii). provision by each contractor and/or subcontractor (as the case may require and as appropriate) performing work on the Project of the requisite performance bond and labor and materials payment bond to assure completion of the Project free of mechanics' liens, and (ix) that the Project shall be of the highest quality and .standard. Section 6(a). Developer Deposit.. Upon the approval of this Agreement by-the Agency, the Developer shall pay to the Agency .the sum o'f Ten Thousand Dollars ($10,000) as a deposit to the Agency securing its obligation to comply with the-terms of this Agreement (i.e.; to negotiate with and enter into a Disposition and Development Agreement with the Agency relative to the development of the Project on the Site). The Deposit shawl be in the form of (1) cash; or (2) a cashier's or certified check. Except as otherwise provided hereinbelow, the Deposit shall be fully refundable to the Developer in the event that an Disposition and Development Agreement ("DDA") is entered into by the Parties pursuant to the terms of this Agreement. Baskeron.ENA 2/9/97 Dratf Page 5 of 10 • Section 6(b). Reimbursement/Payment of Agency Fees. The proceeds of the .Deposit shall be used. exclusively for the purpose of reimbursing/paying those actual costs incurred by the Agency with respect to the negotiation and .preparation of an Disposition and Development Agreement. Such costs shall include but not-be limited to environmental site assessment work as well as all fees incurred by the Agency from consultants employed by the. Agency to negotiate and prepare the DDA. All such costs to be paid/.reimbursed to the Agency as provided in .Section 6(a) shall be paid from the Deposit amount whether or not an DDA is entered .into by the Developer and the Agency. However, in the event that any portion of the Deposit is not .necessary to. pay the aforementioned.Agency costs, any remaining balance of the Deposit shall be fully refundable to the Developer. Moreover, the entire amount of the Deposit shall be fully refundable to the Developer in the event that the Agency defaults with respect to any of its obligations set forth in this Agreement and such default is not cured or commenced to be cured within a reasonable time following the default. However, notwithstanding anything contained hereinabove to the contrary, in the event that an DDA is not entered into by the parties as a result of the Developer failing to negotiate in good.. faith or violating any of the terms of this .Agreement, then the entire amount of the Deposit shall be kept by the Agency as minimum . damages to-the Agency independent of the cost or expenses incurred by the Agency pursuant to the Project and/or this Agreement. However, in 'the event an DDA is not entered into by the parties as a result of the Agency failing to negotiate in good faith or violating any of the terms of this Agreement, then any unused portion of the Deposit shall be refunded to the Developer and the Developer shall not be responsible for the reimbursement/payment of any other costs or expenses incurred by the Agency. Section 7. Schedule of Performance. It is the .intention of the Agency and Developer that the redevelopment of the Site be completed in a timely and. an expeditious manner. Accordingly, the DDA shall provide in reasonable .detail the tasks to be completed by - the Parties in the development process and the projected date of completion for each such tasks. Section 8. Environmental. Execution of a DDA by the Agency shall be subject to the Project's compliance with the California Environmental Quality Act ("CEQA"), California Public Resources Code §§ 2100 et sew. (as.amended, and including any successor statutes and regulations promulgated pursuant thereto). In this regard, the Agency may conduct an Initial .Study of the proposed Baskeron.ENA 2/9/97 Draft Page 6 of 10 • • Project pursuant to Section 15063 of CEQA in-order to determine if an environmental impact report ("EIR"} will be necessary to examine potential and significant effects the proposed Project will have on the environment. The Developer hereby agrees to provide all assistance to the Agency necessary for the Agency to carry out its obligations under CEQA. Section 9. Termination. The Developer may terminate this Agreement if the Agency should fail to comply with and perform in a timely manner all provisions hereof .to be performed by the Agency. The Developer shall give five (5) days written notice to the. Agency specifying any failure of the Agency to comply with the terms of this Agreement. The Developer shall not terminate this Agreement if the Agency cures or commences to cure and diligently .prosecute to completion the deficiency(ies) specified in the notice within said five (5) day period. The Agency may terminate this Agreement if the Developer should fail to comply with and perform in a .timely manner all provisions hereof. to be performed by the Developer; or if no progress is being made in the DDA negotiations as~provided for .herein. The~Agency shall give five (5) days written notice to the Developer specifying any failure of the Developer to comply with the terms of this Agreement. .The Agency shall not terminate this Agreement if the Developer cures or commences to cure and diligently prosecute to completion the deficiency(ies) specified in the notice within said five (5) day period. Section l0. Owner Participation Requirements. This Agreement and the obligations of the Parties set forth in this Agreeeent, are subject to the applicable Owner-Participation rules and regulations established for the Project Area. Section 11. Governing Law. This Agreement and the legal relations between the parties hereto shall be governed by and construed and enforced in accordance with the laws of the State of California. Section 12. No Other Agreement. This Agreement constitutes the entire agreement of-the parties hereto with. respect to the subject matter hereof.. There are no agreements or understandings between the parties and no representations by either party to the -other as an inducement to enter into this Agreement, except as expressly set forth herein. All prior negotiations between the parties are sued by both parties. Notwithstanding anything .provided herein to the contrary, whether expressed or implied, the Agency .shall have no obligation to enter into an .Disposition and Development Agreement with the Developer and neither the Agency nor its officers, members, staff or agents have made any promises to the Developer other than to exclusively negotiate in good faith with the Developer during the Exclusive Negotiating Period, and no Baskeron.fNA 2/9/97 Dratt Page 7 of 10 • • statements of the Agency or its "officers, members, staff or agents as to future. obligations shall be binding upon the. Agency until a .Disposition and Development Agreement has been approved by the Agency and the~Cty and duly executed by the Executive Director of . the. Agency or his designee. Section 13. Prohibition Aaainst Assignment. This Agreement shall not be assigned by the Developer. .Section 14. Notices. Any notice which is required or which may given hereunder may be delivered or mailed to the party to be notified, as follows: If to the .Developer: Baskaron Incorporated 1720 West Cameron. Avenue, Suite 200 West Covina, California 91790 Attention: H~ani Baskeron If to the Agency: Lynwood Redevelopment Agency 11330 Bullis Road Lynwood, California 90262 Attention:: Faustin Gonzales, Executive Director With a copy to: Kane, Ballmer and Berkman 515 S. Figueroa Street, Suite 1850 . Los Angeles, CA 90071 Attention: Royce K. Jones, Esq. Section 15. Public Hearina. Any Disposition and Development Agreement that may be negotiated is subject to consideration at a " public hearing by the Agency and the City. Nothing in this :Agreement shall commit or be construed as committing the Agency or the .City to approve any Disposition and Development Agreement. Section 16. Counterparts. This Agreement may be executed in counterparts, each of. which when so .executed shall be deemed an original, and all of which, together, shall constitute one and the same instrument. Section 17. Attorney's Fees. In the event that either party" hereto brings .action or proceeding against the other party to enforce or_interpret any of the conditions or provisions of this Baskeron.ENA 2/9/97 Dratt Page 8 of 10 • Agreement, the prevailing party shall be entitled to recover all reasonable attorney's fees and expenses and .court costs associated with such action or proceeding Section 18. Effect of Agreement. Notwithstanding any other provision of this Exclusive Negotiating Agreement, the Parties expressly acknowledge and agree as follows: None of the matters described in this Agreement as a purported .commitment or obligation. of the Agency shall have any effect unless. and only to the extent such matters are expressly set forth .in-an Disposition and Development Agreement or other wr`itten_agreement~ duly authorized and approved by the Agency- and the City. Notwithstanding any provision of this Agreement to the contrary, .Developer acknowledges and expressly agrees as follows: (a) that this Agreement does not obligate the Agency in any way to approve, in whole or in part, any of the matters described in this Agreement, including, without limitation, matters .pertaining to land use entitlements or approvals, permits, waivers or reduction of fees, development or financing of the Site or any other matters to be acted on by the Agency, as applicable; (b) that all such. matters shall be considered and processed by the Agency in accordance with all otherwise .applicable Agency and City requirements and procedures; and (c) that the Agency reserves all rights to approve, disapprove or approve with conditions all such matters in their sole discretion. Developer further acknowledges and agrees that during the negotiations, the Parties shall conduct such economic analyses and re-use studies as may be necessary to determine the amount, if .any, of public funds needed for the redevelopment of the Project as contemplated by this Agreement in an economically feasible manner. Upon the execution of an Disposition and Development Agreement by the Parties, this Agreement shall be null and void and of no effect and shall be superseded by the terms and conditions of the Disposition and Development Agreement. Thee Agency and Developer shall -promptly commence the good faith negotiation of an Disposition and Development Agreement upon execution of this Agreement. Baskeron.ENA 2/9/97 Draft Page 9 of 10 • IN WITNESS WHEREOF, the Agency and Developer have executed this Agreement in the City of Lynwood, Los Angeles County, California, on the date hereinabove first set out. BASKARON INCORPORATED a California corporation (Developer) By: . LYNWOOD REDEVELOPMENT AGENCY (Agency) By: Executive Director APPROVED AS TO FORM: . ~. ~~ /~ w // -- r d ~r w~ / r% r - - Q Y---- ~a . Na /~ Y ~ -- o N~ a a u~ , ~ "r~ ---..._ ., ._ cry w.. ~. y f r~ / r~ // r! /~ ~/ rl /, ,~~~ ~ I J ~' J Q ~ c~ v ao z Ii 1 l\, Nw w ~~ V ~~ ~Z 0 U 0 O u'i r .._. =z_- ~.... _~ ~ ----_ -- w Q ~ J \ ~ _ _ _ ~jb ~ ~ ' ° II -- o d% .. cv p~- --- ---- ~~ ® ® ° ~ i _ _~ J ~ ® ~ ~ ~ ~ ~ ~ Q J ct_ _C WN. ~ ..~ .~ ' Z i~ zo ~wz ~ ® ®° `~ a N O ~ U --- Y -~ ~._. ~ ~ o Q a ~ 3 ~ O .. ---- - i 1 ~ ~. U ~ 3 ---- ~ Z J c----___ ._....~_._ 0= 5Z - - ~ ~`_ .~` Np Off` `\ ~b~c~dd~•~ . 0 _~ k~t~ ~. ,/~ • ~ ~ z a ~\Q-~, ~ \ \ Z ~ ;• ~ ~~ w~ ~ ~ z I- ~X ~ ~ + ~ ~ ~. ~' '° •, z~ ..p\. `~ w ~ ~ .,O' "O~ l t0 U ~~ ~ W N \ ~~ U I lf') ~ . ~~ Q¢. dX ~~~ Q ~1. ~Q; .. ..,. .. - Z~ /~ _ d I UI U ~ ~, N W N Q( Z ~ ~ Y O • 7-y - - U Z ~ ~~~ ..J 1 w ~ a Q d ( l~ w Z 7 i a fi ._,. \ J ~ ~ ~ ~ , ~ ;~ .. ~ ~: k, ,. 4 ~ . o ~. G ~, a~ _ ~ CJ ,, Y ~... r ~ A wow ° ~ `~,,~ ~~1N _ x`41 _~ + ' iv ~ DRIVE WAY ~~ ~~~ ~d ~ ~ „0 - Z t w a i- a b ~- z •... Q I,~ I Goy a ~~ C g °~ . 1 m ~~ o , Q ~ ~ ~ -- O w d z w „~ I ~ Q Z Z ~ ~ n ~ //~~, ~v`, IJ ' 2l31Ntlld HDd02iddb' 3~Iba ~ ~ 2~31N d -- -- ----- -y-- --~-------- .00'Ob l ---„0_..0~ ._...._._..~ • • DATE: March 4, 1997 T0: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY From: Faustin Gonzales, Executive Director By: Emilio Murga, Assistant City Manager Enviro menta Services/Director Public-Works ~~ Gary Chicots, Director Community Development ~~~ Subject: CONCEPTUAL REVIEW OF A PROPOSAL TO DEVELOP THE WEST SIDE LONG BEACH BOULEVARD BETWEEN MARTIN LUTHER .KING JR. BOULEVARD AND PLUMA STREET Purpose- To have the Agency .conceptually review a proposal submitted by .the Charles Company.("BDC") to develop the west .side of Long Beach Boulevard between Martin Luther King, Jr., and Pluma Street with a retail/commercial center. Facts: 1. The Charles Co. has expressed an interest in developing a retail center on approximately 195,550 sq. ft. of area on Long Beach Boulevard between Martin Luther King Jr. and Pluma Avenue (the "Site") (see attached parcel map). 2. The Agency owns approximately 68,700 sq. ft. of property within the proposed project area. The property owned by the Agency is the former 98-unit American Motor Inn located at 10831 Long Beach Boulevard which was purchased by the Agency for $35-0,000 (5.09 /sq. ft.) in August, 1996. 3. The Charles Company has the ability to under take this type of development and currently owns and operates over fifty (50) properties throughout Southern California that are commercially developed. Discussion- The .Charles Company is seeking an Exclusive Negotiating. Agreement {"ENA") .with the Agency to be able to go out and secure potential tenants for the Site. The Developer has submitted an initial conceptual site plan that depicts how the Site may be developed (see attached site plan). However, the site plan may change depending on the final tenant mix for the project. Some of the potential uses mentioned for the Site are Sav-on, Smart N Final, Pic N Save, Family Bargain Chothing, etc. In addition, staff also produced an iteration of a site plan to further illustrate how the Site may be developed (see attached plan).. The Developer will be submitting a more refined conceptual site plan for Agency consideration on Monday, March 3,1997. Approving the project concept at this location will eliminate the' blighted conditions maintained at the Site which is predominately auto repair uses, a vacant motel, and an operating•motel_ The proposed concept would allow for the development of a sales tax generator and would provide additional tax increment for the Agency. An approval would allow staff to pursue an ENA with the Charles. Co. that would be brought back for Agency consideration.. AGENDA ITEM G.:;. Recommendation: Staff respectfully request that after consideration, the Agency approve the concept and direct staff to work with the Charles. Company to pursue an Exclusive Negotiating Agreement to develop the . Site. h:\up\redevelp\CHARCNCP.STF 6pe 9 m . ~,~'7 ~ sped troop ` ~~'~~ ~.~ A ~ ~ ~ m ~ oo~ e~ oy~R o ; . ~ o ~iN ti G ~ --I Aso ti a ~, ~~ . ~R H T m .T ~ ~ ti o . + °O d •~_~ QI ~ ~ ~ i6~$ ~~ W W ~ Z + ~ °'~.qs tDI J i A ~ + y y 90 p, O ~ ~ Lr (r ~ Ol O ~\ Q N N Z n i~ ~ vO ' ~ti .)~a0 a~ r N ~ O ~ ~ ~ ~ + ~ ~ Z 00 _ Z ~ I -~ 'O ~ ~ c .:Z O O Q~ + O O '~~ eO col !o Q~ ` ~ ~ Cb 0 + ~ ~ ~ e.w ~~ ~ Q ~~ o D D D O i I • ' ~,~ ~ ~ 90 (~ ..D ~~/ %o D D J t ~ 0~ ~ t 0 C 0~ ~ ~^ ,A tia n 9 ~~~ OmO ~ v~ ~\~° ,~~ Q, cr z o ~ o ~a ;~~ e , ~, ~/ ' ~.2 n ~ fit' ~ ~°`~. ti 0 ~ ~`•°P ~ .O . D ~ -p ~L ~~ ~ e n D O ~ °' •Z ~ wti \ ®~~ ~ . v D -~ /~ ® 0~ w ~ so m O O ?~ Z ! ~ ~~ ~ y .$~t,~ ~ ~! A L M A _ ~ ~ ~ o ~ ~ ~ AVE. O Z ~ + v\ 4~' ~~ ~ 'ti a r ~ ~. + ti O ~ ~ ~ /oo C = ~ ~ \ `4 ~ m ~~, ~~i w ~; °' ~ ~ ~,• ~ o ~ b u '§~ ~ ~ ~ \ ~ yB~ isr~, ; .86.5 . ~d~ ~ /~\ y V ~ .~ y~ ~ \~ b 0~ O \ ; 90 ~ .? 0 N ~ s vO n ~` ~s~ w ~' ~ ~ AND ~ ~pC ~ .?s. p~ ® ~ sus ~ ~ ~ ~ vl~ ,~ , / s ~-• ~ O ~ 96.5 ~ ~ ~ 6pe9. ~ s' / so ~,S ~ ~ ioo. c° f.m`~°o ~ ~ ~` d~ ~ 9 ' o m N.~ 6s29 yB'• `~~ ow• (n ELfZIBETF •% ~ ~- AV E . ,~ y >~a ~ 9G.5Q ~ I vH ~ c f ~ spe/ S~. ~ / .' . A N ~. ~ • O a A ~ ~ 'n~/J~ hb0 N NPQ1 . ~ ~ Y ~~ ~Q w- ~ , ~~~ ~ ~ DATE: .March 4,1997 TO: Honorable Chairman and Agency Members FROM: Faustin Gonzales, Executive Director BY: Emilio Murga, Assist. City Manager/Director of Enviro ~tal Services j~.~ Gary Chicots, Director of Community Development ~ ~/ '>'~ .SUBJECT: To Approve a $188,382.00 grant to Health View, Inc. utilizing Home Funds and preparing a Owners Participation Agreement to rehabilitate an existing residential care facility for the elderly for the property located at 3540 Martin Luther King Blvd., known as Lynwood Villa. PURPOSE: To recommend the Lynwood Redevelopment Agency (Agency) .adopt the attached resolution authorizing the Executive Director to prepare and execute a Owners Participation Agreement (OPA) for a rehabilitation grant between the Agency and Health View, Inc: for the rehabilitation of the Lynwood Villa, a residential home for Low- income elderly individuals, owned and operated by HealthView, Inc., utilizing $188,382.00 of the City of Lynwood's Home Investment Partnership allocation. FACTS: Health View. Inc. is requesting a grant in the amount of $188,382.00 from the Agency to assist with the rehabilitation of a 178 bed residential care facility for the elderly located at 3540 Martin Luther King Blvd., known as the Lynwood Villa. This facility houses 21 Lynwood residents. Health Vie~y..,inc., a non-profit housing organization dedicated to providing qualit<• social, health and psychiatric care service. has been providing residential care to low income, mentally ill individuals for thirty years. Health View• began.to manage- Lynwood Villa on September 28, . 1994 and purchased the facility on March 28, 1995. During the management and ownership tenure the faciliri• has been operated as a non-profit residential care facility for the elderly. The City of Lynwood~s Consolidated Plan Section N, Housing and.Community Development Strategic Plan ,identified the elderly and frail elderly households as a priority special needs population. This included the pro~~sion of rental assistance, increasing the supply of affordable housing, and the provision of support service to allow special needs households to remain independent. The Cih• of Lynwood has received federal grant allocations in the form of Home . Investment Partnership Funds (HOME) and Community Development Block Grant Funds (CDBG) in an effort to implement programs to address the priority needs identified in the Consolidated Plan. There are sufficient -funds available from the federal Department of Housing .and Urban Development to carry out certain eligible activities and priority needs in accordance with the City of Lvnwood's Consolidated Plan.. A :grant to Health View, Inc. for the purpose of rehabilitation of the Lynwood Villa is a eligible activity pursuant to the Home Investment Partnership Program regulations 24 CFR 92, and the ,priority goals established by the Cit<- of Lynwood Consolidated Plan. PROJECT DESCRIPTION: HealthViev<-, Inc. has been renovating the Lynwood Villa in four phases since the purchase of the property in March of 1995. Currently the organization has completed upgrading the facility utilizing their existing capital. AGENDA. ITEM j f I ~ ~ To date the organization has invested approximately $337,423.00 for the renovation of the facility. The improvements include roof replacement, repair of the heating and air conditioning system, ea~terior landscaping and painting, and interior work which consisted of remodeling the existing corridors and common areas. In addition, an Alzheimer's unit was included .into the faciliri~. ` HealthView, Inc. is now requesting assistance from the Agency in order to complete the renovation of the facilit<~. HealthView, Inc. plans on utilizing the requested Home Funds to upgrade the remaining 86 units on the. second floor. Once completed the units will be used for additional Alzheimer's housing units and regular elderly housing units Staff has inspected the facility and. reviewed the scope of work with cost estimates and has found that the itemized description of the work and cost are acceptable and relevant to the type of , renovation that will provide the residents with a ,decent, .safe, sanitar}' and affordable living. environment. The hype of construction activity is eligible work for the use of HOME funds. The Cit<~ of L~~nwood~s Consolidated Plan, Housing and Community Development Strategic Plan has assigned a high priorit,~ to addressing the assistance to households with special needs such as .the elderly and frail elderl~~ households. The Agency has HOME Investment Partnership Funds to .assist Health Views, Inds rehabilitation of the Lynwood Villa and meet the City of Lvnwood's five year strateg~~ of pro~~iding assistance to special needs population. RECOMMENDATION: Staff recommends that the Agency adopt the attached resolution to approve the grant totaling $188,382.00 to Health Vier, Inc.. and authorize the Executive Director to prepare a Owner Participation Agreement (OPA) pursuant to HUD standards and adopt the attached resolution approving the project. Attachments l .Proposal Submitted from HealthView, Inc. 2. Resolution • LRA RESOLUTION NO. A RESOLUTION. OF THE LYNWOOD .REDEVELOPMENT AGENCY APPROVING A GRANT BETWEEN THE AGENCY AND HEATLHVIEW, INC. FOR THE REHABILITATION OF THE LYNWOOD .VILLA AND AUTHORIZING THE EXECUTIVE DIRECTOR TO PREPARE THE OWNER PARTICIPATION AGREEMENT ° AND TO MAKE , THE NECESSARY APPROPRIATION OF HOME FUNDS WHEREAS. HealthVie~-, lnc.-has submitted a request for $188,382.00 grant for the • rehabilitation of there residential care facility for the elderly, lmown as Lynwood Villa, located at 3540 Martin Luther King Blvd.: and .WHEREAS. The Agency has reviewed the HealthView, Inc. request for grant funding and the Agenc~~ deems the activities to be provided by the organization as consistent with the support of the Cit< of L~`m~•ood Consolidated Plan five year strategy and that HealthView, Inc. requires fire . financial assistance of thr City of L~~nwood to initiate its activities; and WHEREAS. HcalthView, lnc. is desirous of participation in activities eligible under - HOME. and further agrees that the beneficiaries of its. activities under the program are or will be individuals or families who meet the income eligibility guidelines as identified in title 24 CFR part 92.216/21.7: and ' • WHEREAS. the agency authorizes the Executive Director to prepare a Owners ,Participation Agreement that is consistent with the requirements established by the Department of Housing and Urban Development for the use of HOME funds at title 24 CFR 92; and WHEREAS, In order to proceed ,HOME funds need to be appropriated for this project. NOW, THEREFORE, the Agency does hereby resolves as follows: ~. Section 1. That the Agenc~~ approves the grant in the amount of $188,382.00 to HealthView, Inc. for the rehabilitation of the L~•nwood Villa located at 3540 Martin Luther King. Blvd. - .Section 2 That the Executive Director is authorized to prepare a Owner Participation Agreement in accordance with HOM£ Investment Partnership Program 24 CFR 92. ' Section 3. .That the Executive Director is authorized to make the following fund appropriations and transfers: FROM TO • Unappropriated Agency HOME funds Fund 26/ Area "A" L/M Housing Fund ° . $188,320.00 $188,382.00 .Section 4.~ This Resolution shall go into effect immediately upon its adoption. . PASSED,- APPROVED and ADOPTED this 4th day of March 1997 PAUL H. RICHARDS, CHU~I[RMAN • • ATTEST: Andrea L. Hooper, Secretary Faustin Gonzales, Executive Director APPROVED AS TO FORM : APPROVED AS TO CONTENT Agency Special Counsel Gary Ctucots, Community Development Director LYN WOOD V[LGA PROPOSAL February 25, 1997 Job name: Lynwood Villa Job addresa: 3549 Martin Luther King h Bl., i.ynwood, CA 90262 Re: Remodeling R upgrading of building at above address. - " Ceabawk Construction CruP• Lic. No. 704583 ' Commercial Residential - Seismic 'The line items and their respective rates are as fopows Varnish new bathroe,rn doom, new walls and moldings complete 71 bathrooms C~ ~BSrrathruum = 56,035.00 Removal and replac~mcnt of bathroom cabinets & sinks with cultured marble top 88 ~? $250 ?2,000.00 Replacement of cxistut~ faucets with single handle faucets. `88 @ .575 " 6,600.00 Replacement of ex;stm~; lights over medicine cabinets. 88 @ S40 3,520.00 ' Replacement of trim. far the heat lamps . 35 @ S20 700.00 " Installation of new heat lamps in bathrooms ' . 53 @ S50 2.650.00 * Installation of circular tluorescent lifihts for room entry.- 88 @ S35 3,080.00 " Replacemenr of medicine cahinetc 50 @ 585 4 250.00 * Supply & installation of wooden toilet seats. , ` S0 @ S30 1 500.00 "' Supply of vile pans in wall;-in showers , - 12 @ 5100 1 200.00 ' ' . Installation of new shower heads including rough plumbing. , . ' S0 (~ 5361 18 050 00 ' lntnallation of 24' towel hare, .toilet piper holders, door levers . . for bathrooms. 88 ®5150 room 13 2UU.VU * Installation of levers fo r the entry doors. _ 88 (~ S95 pre dour 8,630.00 * installation of a pair of grab bars in each bathroom G9 @ $180 * 12 420.00 InKtallati~n of bifurd closet doors (hard board tact) , Fkfal i 'r'nCr i- `. . • • 88 @ 5275 ' 24 ZOO.OU * Installation of carpet in resident rooms. , 24 rooms( $30U each room 7 ZOU 00 ` Installation of vinyl floor in resident morns. , 35 rooms @ $4,50 each room 1 S,7S0 00 Paint rooms with latex paint S9 rooms (~ 572 each room 4 248.00 ' Paint rooms with oil paint , ' S9 rooms @ $80_each room 4 72Q00 Varnish emry ~c bethr~orn doors , 1 t R @ $fi 1 each room 7, 198.t)U Supply & installation of wall paper g bcirders in resident •rooms. S9.mnmc @ $7~ each room . 4, (30.00 59 shower curtains Vii! 5Zc) 1,277 O~ . 59 vertical blinds C? $t?U 7,67U.UU Cove base 59 (a? $ ] 00 . 5 9~A p0 ' Drywall patch 6 Cw $1-0U , 600.00 Respray ceilings 4 `i~ $SU 200:00 . ' Total $188,382 00 i City of Lynwood - Request for Grant HealthView, Inc. 1. Executive Summary HealthView, Inc., is requesting a X72,150 grant from the City of Lynwood-for the rehabilitation of Lynwood Villa, a .residential home for low-income elderly individuals. Funds will be used for Phase 111 of renovation and would include the rehabilitation of the building, and the completion of an Alzheimer s unit. HealthView, Inc., anon-profit organization dedicated to providing quality social, health. and psychiavic care services, for individuals in the Southern California regiori, has been providing residential care to low-income, mentally ill individuals for thirty years. To expand the services offered, HealthView; Inc., began to manage Lynwood Villa, anon-profit residential home for low-income elderly, on September 28, 1994 and purchased the facility on March 28, 1995.. Lynwood Villa has been part of the community for. over thirty years. and provides safe and affordable housing to low-income elderly individuals. Residents have access to all necessary medical services; a pharmacy on the premises, and a variety of activities to choose from. We provide excellent care and most importantly, we give our clients a place to call home. In our commitment to our residents, we strive to make their home as comfortable and atvactive as possible.. 1 • • 2. The Statement of Need The cost to .renovate and furnish Lynwood Villa is.$457,423.85 . Payments for this -,__ .capital investment are currently being taken from the HealthView, Inc. cash reserve. Every dollar spent on debt service. and renovation means that a dollar is drained from funds that are intended for emergency use. The majority of our funds are. from the government and a reserve is needed to continue daily . ,operation. According to the Bureau of the Census, September 1993, from 1990 to 2020, the elderly population is projected to increase to 54 million persons nationwide. The growth rate of the elderly would be more than double that of the total population during this period. In 2020, about 1 in 6 Americans would be elderly. Emerging data suggest hat (imitations to activities among the elderly'due to disabilities may have decreased during the 1980's, even among the oldest-old. Increased education and the use of mechanical aids may be helping. many to overcome their health limitations. The Board of Directors at HealthView, Inc. is dedicated to charting the future . course of Lynwood Villa, with innovative, supportive and effective programs. Swift payments of capital costs will insure that the depth and quality of programs will not be diminished. Quality facilities, like Lynwood Villa, are needed now to meet the demands of the growing elderly population.. 2 • 3. Project Description Due to the poor condition of Lynwood Villa at the time of purchase, $120,000 of the down payment was negotiated for capital. improvements. Cost breakdown of rehabilitation is summarized on Attachment 1. Phase 1 of renovation included: • the removal and replacement of a leaky roof, • and replacement of a heating and air conditioning unit that was completely ~. ~ none functional. In an effort to provide optimum care for each of the elderly residents at Lynwood Villa, HealthView, lnc. has contributed $110,444 in the 1994/1995 fiscal year as of January 1, 1996 to renovation and has allocated $120,000 for the 1995/1996 budget.. Rehabilitation is needed to increase and maintain the maximum ' occupancy of 178: Currently, Lynwood Villa has 108 residents and is 60% occupied. In order to attract more clients, we need to provide a home that is atuactive .and that will meet the standards set by licensing and our competitors. Phase 11 ,which is near completion, focused on the renovation of the first floor ' including: . - landscaping the front and back of the building, ' interior and exterior painting, • wallpapering, ~~ 3 • ~ • • replacing flooring, • building a front patio, • .furnishing the dining room, patio, offices, and all common areas, • replacing drapes and blinds, • carpeting, • and replacing lighting. I-lealthYiew, Inc., is requesting $72,150 to assist in the completion of Phase 111 renovation at Lynwood Villa. Phase 111, projected to begin in Apri] 1996, will entail renovation of the building, completion of an Alzheimer's unit, and the following: - Second Floor: • replacing all flooring, • wallpapering and painting, ,• replacing all furniture in common areas, • replacing lighting fixtures and blinds, • remodeling two publit bathrooms,- . Alzheimer's unit: ~~ •installing and supplying fire doors, • converting storage room into Medicine room, . 4 • installing aril supplying alarm system, • replacing patio doors with windows, • replacing glass on windows to thicker grades, . • installing a fence around the patios, Facility Rehabilitation: " • demo and laying of new concrete for back driveway, • .tiling kitchen floor, • replacing. double doors at back of building, • new seal coat on front driveway and riew striping of parking lot, • and upgrading eight bathrooms to handicap requirements. ~~~ The last part of the renovation process, Phase IV, is scheduled for completion by " December 1997 and includes:. " refurnishing 89 resident rooms. Lynwood Villa is committed to providing excellent service to low income, elderly individuals. In order to provide optimum quality of life for each of our residents, renovation of the. facility is necessary. In addition, a safe and attractive environment is needed to attract more clients and increase our census..By maintaining maximum occupancy, Lynwood Villa will continue to provide service to the community well. into the future. 5 " • 4.' Budget Renovation Expenses: Phase I ` Phase II Phase II1 Phase I~' Total Expenses $113,979 $82,272.02 $76,829.274 $113,000 $110,444.85 $113,979 $120,000 $457,423.85 • 5. Organization Information Mission: HealthView, Inc., dba HARBOR VIEW HOUSE. of Southern California, shall operate non-profit, cost effective facilities/programs, dedicated to providing quality social, health and psychiatric care services, for individuals in the Southern California region. Overview: Harbor View House is the largest non-profit residential mental health care facility in California. HealthVie~~, Inc. also owns and operates Lynwood Villa, a Residential Care " Facility for the Elderly. in Lynwood, California. Levels of Care: Harbor View House serves over 250 residents and offers two levels of care: l) An Adult Residential Facility, licensed by the State Department of Social Services, provides nonmedical care and daily supervision to 160 residents who are predominantly in the low and ven~ lo«~ income levels, and whose main source of income is the Federal Supplemental Securin~ Income (SSI). State license # 191601918. 2) An Intermediate Care Facility. licensed by the State Department of Health Services, provides basic nursing support for 77 residents who need nursing supervision.-This program offers a protective living arrangement with 24-hotu supervision and internunent skilled nursing care or observation. State license # 910000062. Programs: A Dav Rehabilitation Program, certified by the State of California, provides social, recreational and educational activities to improve and enhance the daily living, social skills and leisure to 40 persons with a severe and persistent mental illness. The objectives, taught at ~ti~ork sessions and with activities, include the following: life management skills, social skills, and. leisure management. A Dual Diagnosed Program provides a preventive and stabilizing avenue for residents to seek further positive reinforcement and reduce deterioration of their mental illness through illicit drug trse. There are. weekly AA (Alcoholics Anonymous), NA (Narcotics Anonymous), and CA (Cocaine Anonymous) meetings held within the facility. Life Support, a residential program for six homeless, mentally ill adults, provides fourteen day crisis intervention, housing, counseling, food, medical care.. and medication. Advocacy for entitlements and assistance for finding long term housing, i.e., residential care or independent ln~ng. are provided. The Resident Work Program allows the resident with basic work skills the opportunity to work in-house at a wage established by the Department of Labor that is based. on the residents ability to function in a particular job. Residents are employed within Harbor. View House in numerous capacities, such as the Thrift Shop and Coffee Shop. Transitional Living Apartments, a 12 unit one bedroom apartment complex owned and operated by Harbor View House, accepts highly functional clients who desire to try independent living. 10/95 7 . p .~ Attachment 1 Lynnwood Villa " " Phase 1 Date ..Amount Vendor Usea e Sept/95 $113;000.00 Via Imperial Bank Roof, heating, a/c Sub Total $113,000.00 r Lynwood Vitla Phase Two IDate Amount Vendor Usea e 10/15/95 $1,120.00 Basically Cabinets .Cabinet Work .08/24/95 655.00 American Unifed Landscape 09/15/95. 2,00.00 Basically Cabinets Cabinet Work 06%25/95 2,345.00 Basically Cabinets Cabinet Work 07/15/95 1,612.92 R.P.Brooks Patio Furniture 08/1 1/OS 124.24 Ellen Cantor Patio Furniture 1 1/15/95 15.48 Ellen Cantor Wallpaper 10/18/95 5,598.58 Ellen Cantor FeeJBrass Fixtures 10/24!95 14.03 Ellen Cantor Office Furniture } 0/23/95 1 ] 8.11 Ellen Cantor ~ Wallpaper Blinds 10/15/95 5,164.35 -Ellen Cantor Wallpaper, Blinds Fur 09/I5/95~ 1,688.25. Ellen Cantor , Blinds .. 09/05/95 2,805.00 Ellen Cantor Fee .07/15/95. 1,077.28 Ellen Cantor Fee/Wallaper 07/05/95 ~ 3;032.1.7 Ellen Cantor Fee 09/15/95 1,T55.50 Designers Collection Patio Furinture 08/ 1 1 /95 1,.15 5.50 Designers Collection Patio Furinture ] 0/25/95 1,449.00 Dozar Office Furn Chairs l0/15/95 6,338.07 Dozar Office Furn Chairs 09/29/95 1,4 T7.63 Dozar Office Furn Furniture 07/ 15/95- 1,003.48 Dozar Office Fum Chairs 06/26/95 9,400.00 Dozar Office Furn Office Furniture 09/29/95 1,823.00 Eyedeal Interiors Carpet 06/26/95 6,000:00 Eyedeal Interiors Vinyl . 1 1 /09/95 13:00 Federal Express . Wallpaper 10/24/95 7,176.00 Gutierrez Landscape Landscape 08/02/95 1,695.00 Gutierrez Landscape Landscape 10/05/95 100.00 Steve Jarman Wallpaper Border 09/29/95 1,100.00 ~ Steve Jarman Wallpaper Border 09/21/95 2,683.00 Steve Jarman Wallpaper Border 09/29/95. 206.94 Lamps Plus Lamps 09/15/95. .154.32 Lamps Plus Lamps 08/24/95 177.78 Lamps Plus - Lamps i Date Amount Vendor Usea e _ 08/01/95 4,386.07 06/26/95 1,421.21 07/15/95 1, 178.33 07/ 15/95 3 60.93 10/05/95 3;268.00 . 08/11/95 x,470.00 09/05/95 1,124.00 07/15/95 ~ 724.00 10/05/95 ~ 145.00 09,15/95 285.00 10/05/95 89.40 09/05/95 3 8.00 08/21 /95 1.189.40. 08/1 1/95 674.36 08/1 1/95 18.21 07/1:5/95 317.88 l 0/ l 5/95 ~ 190.00 .07/15/95 886.57 08/11 /95 99.83 07/1 5/95 1,011.91 ]:0/23/95 9.50 10/05/95 1, 775.30 07/15/95 1,629.39 11/]7/95 3,878.60 09/29/95 108.25 05/29/95 814.04 01 / 19/96. 405.00 02/06/96 345.00 12/08/9 ~ 3 , 494.00 12/29/95 1,143.08 12/15/95 2,003.02 12/08/95. 457.62 12/01 /95 1, 966.08 12/01 /95 2,119.06 Total Phase. 2 $110 444.85 Grand Totaf $223 444.85 Lamps Plus Lamps Lamps Plus - Lamps Lite Extrusion Paint J.M. Lynne Wallpaper James Paul Construc . Construction James Paul Constr Construction Larry_Price Inc. Painting Larry Price Inc. Relaminating Reliable Installation Install Blinds Reliable Installation Install Blinds Sellers & Josephson Wallpaper Sellers & Josephson Wallpaper Sellers & Josephson Border Sellers 8. Josephson Material' 172yds Sellers & Josephson Material Sellers & Josephson Wallpaper Spencers Carpet Furn Cleaning Spot Lighting Lights Jeffrey Stevens Material Jeffrey Stevens Material UPS Shipping Western Frame Art Wolf Gordon Inc. Border Wholesale Carpet Carpet Wholesale Carpet Carpet Wholesale Carpet Carpet Pedro Ocampo Carpet Installation Pedro Ocampo Carpet Installation EvedealInteriors Carpet Ellen Cantor Vertical' Blinds Ellen Cantor Vertical Blinds Ellen Cantor Vertical Blinds Ellen Cantor Design Consultion Dozar Office Furn. Office Furniture