CC - 05-10-88a APPROVED
CITY OF ROSEMEAD
MINUTES OF THE REGULAR MEETING DATF S a - P~
ROSEMEAD CITY COUNCIL BY ~~tc~ _D
MAY 10, 1988
The Regular Meeting of the Rosemead City council was called to
order by Mayor Bruesch at 8:07 p.m. in the Council Chambers of City
Hall, 8838 E. Valley Boulevard, Rosemead-, California.
The Pledge to the Flag was led by Councilman Imperial.
The Invocation was delivered by Pastor Paul Bengston of the
Neighborhood Covenant Church.
ROLL CALL OF OFFICERS:
Present: Councilmen DeCocker, Imperial,'Taylor, Mayor Pro Tem
McDonald, and Mayor Bruesch
Absent: None
APPROVAL OF MINUTES: MARCH 22, 1988 - REGULAR MEETING/DEFERRED
MOTION BY COUNCILMAN TAYLOR, SECONDED BY MAYOR PRO TEM MCDONALD
that the Minutes of March 22, 1988 be approved. Vote resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
APPROVAL OF MINUTES: APRIL 19, 1988 - ADJOURNED MEETING
MOTION BY MAYOR PRO TEM McDONALD, SECONDED BY COUNCILMAN IMPERIAL
that the Minutes of April 19, 1988 be approved. Vote resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
APPROVAL OF MINUTES: APRIL 26,.1988 - REGULAR MEETING
MOTION BY COUNCILMAN IMPERIAL, SECONDED BY MAYOR PRO TEM McDONALD
that the Minutes of April 26, 1988 be approved. Vote resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
A Proclamation was presented to Peggy Williams for Barbara Mouron
on behalf of the "Just Say No" organization declaring the week of May
8-14, 1988, as "Just Say No" Week. Ms. Williams expressed her
gratitude to the City and stated to be effective-the-program must
have the support of the community.
Former Mayor G.H. "Pat" Cleveland received honors in recognition
of his years of service to the City of Rosemead from the following:
1. Todd Bullen, representing Congressman Martinez.
2. Bob Ogert, representing Assemblywoman Sally Tanner.
3. Sarah Flores, representing Supervisor Schabarum.
4. Captain Doug McClure, representing the Los Angeles County
Sheriff's Department and Sheriff Sherman Block.
5. Assistant Fire Chief, Hal McCann, representing the Los
Angeles County Fire Department.
6. John Steelesmith, representing Southern California Edison
Company.
CC 5-10-88
Page #1
I
I;
7. Betty Dondanville, President of the Rosemead Chamber of
Commerce, presented Mr. Cleveland with the first honorary lifetime
membership in the Rosemead Chamber of Commerce. Mr. Cleveland was
also appointed as an ambassador for the Chamber of Commerce.
8. Ray Gibbs, representing the West San Gabriel Valley
Consortium.
9. Mayor Bruesch, representing the Rosemead City Council.
Mayor Pro Tem McDonald commended Mr. Cleveland for his service
and contributions to the community. Mr. McDonald stated that Mr.
Cleveland was indeed "Mr. Rosemead."
Pat Cleveland stated his appreciation for the recognition paid to
him by these presentations and that they will be proudly displayed in
his home. He expressed his greatest appreciation for the opportunity
to make friends of this Council and this community and expressed the
hope that this friendship would never end.
Councilman Imperial requested that Mr. Cleveland's picture be
added to those on display on the wall of the council chambers as
former Mayor, retired.
A five-minute recess was called at 8:35 p.m. and the meeting was
reconvened accordingly.
I. ORAL COMMUNICATIONS
A. None
II. PUBLIC HEARINGS
A. PUBLIC HEARING TO CONSIDER AN AMENDMENT TO THE ROSEMEAD
MUNICIPAL CODE GOVERNING LOT COVERAGE, DENSITY, AND PARKING
REQUIREMENTS IN THE R-1 ZONE
The Mayor opened the public hearing and there being no one
wishing to speak, the public hearing was closed.
The following Ordinance was presented to the Council for
introduction:
ORDINANCE NO. 624
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
REPEALING SECTION 9104.20 CONCERNING DEEP LOTS-IN THE SINGLE
FAMILY RESIDENTIAL (R-1) ZONE AND AMENDING SECTION 9104
CONCERNING LOT COVERAGE, DENSITY, AND PARKING REQUIREMENTS
MOTION BY MAYOR PRO TEM McDONALD, SECONDED BY COUNCILMAN DeCOCKER
that Ordinance No. 624 be introduced and reading in full be waived.
Vote resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
III.LEGISLATIVE
A. RESOLUTION NO. 88-24 - CLAIMS & DEMANDS
The following resolution was presented to the Council for
adoption:
RESOLUTION NO. 88-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM OF
$208,420.08 NUMBERED 00845-00872/21960 THROUGH 22138
CC 5-10-88
Page #2
MOTION BY MAYOR PRO TEM McDONALD, SECONDED BY COUNCILMAN IMPERIAL
that Resolution No. 88-24 be adopted. Vote resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
B. ORDINANCE NO. 625 - APPROVING ZONE CHANGE FROM R-1 TO M-1D
FOR PROPERTY LOCATED AT 2709, 2717, 2719, AND 2729 STINGLE
AVENUE
The following ordinance was presented to the Council for
adoption:
ORDINANCE NO. 625
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
APPROVING A CHANGE OF ZONE FROM R-1 TO M-1D FOR PROPERTY
LOCATED AT 2709 THROUGH 2729 STINGLE AVENUE (ZC 88-156)
MOTION BY MAYOR PRO TEM McDONALD, SECONDED BY COUNCILMAN DeCOCKER
that further reading be waived and Ordinance No. 625 be adopted.
Vote resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
Mayor Bruesch expressed concern that a buffer zone be retained in
that area if the trailer park is eventually dismantled.
IV. CONSENT CALENDAR (CC-C AND CC-E PULLED FOR DISCUSSION)
CC-A RELEASE OF BOND - TRACT 44194 - 8844 SHERRI WAY
CC-B CLAIM AGAINST THE CITY - ALICIA JAUREQUI
Recommendation: Rejection
CC-D APPROVAL OF PLANS AND SPECIFICATIONS AND AUTHORIZATION TO
SEEK BIDS - PROSPECT AVENUE (GARVEY AVENUE/WHITMORE STREET)
CC-F EXTENSION OF AGREEMENT - SIGNAL MAINTENANCE, INC. (SMI)
CC-G APPROVAL OF EXTENSION TO LANDSCAPE AGREEMENT - MARIPOSA
LANDSCAPE
MOTION BY COUNCILMAN IMPERIAL, SECONDED BY MAYOR PRO TEM McDONALD
that the foregoing items on the Consent Calendar be approved. Vote
resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
CC-C EXTENSION OF AGREEMENT - SENIOR CITIZEN LUNCH PROGRAM
Mayor Bruesch asked for a detailed chart showing what programs
are handled by what members of staff at all locations in the City as
well as where the funding for various programs comes from and the
numbers of people in attendance and where they come from.
MOTION BY COUNCILMAN TAYLOR, SECONDED BY COUNCILMAN IMPERIAL that
CC-C be approved. Vote resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
CC-E EXTENSION OF AGREEMENT - R.F. DICKSON FOR STREET SWEEPING
SERVICES
Juan Nunez, 2702 Del Mar Avenue, expressed the opinion that the
streets are not always swept in a suitable manner and cited the area
near the Auto Auction.
CC 5-10-88
Page #3
Councilman Taylor explained that the Auto Auction will be
providing off-street parking for its patrons and the entire project
will be surrounded by a buffer wall. Street parking will not be
necessary.
Mayor Bruesch requested that staff investigate the possibility of
having the street sweeping day changed for the Auto Auction until the
remodeling is completed.
Mayor Bruesch requested that staff investigate the two cul de
sacs that are west of Walnut Grove and north of Valley Boulevard for
lapses in street sweeping coverage.
Mr. Nunez also stated that the landscape maintenance contractor
sometimes blows trimmings into the street when the sweeper has
already passed that area.
Councilman Imperial requested that Mr. Nunez meet with staff to
report any problems he has found with the various services.
Councilman Taylor requested that this item be deferred to allow
the contract to be offered for bid. A substantial increase had been
asked for and this service had not been subjected to the bidding
process for approximately three years.
Mayor Pro Tem McDonald asked if the City does put a contract out
for bid if it is required to accept the lowest bidder.
Robert Kress, City Attorney, stated that if a formal bidding
process is used, then the City is required to accept the lowest
responsible bidder.
Councilman Imperial requested that the following information be
included in the bid packet: 1) the number of street sweepers that
will be put on the street; 2) time schedules; 3) the type of backup
that will be provided; and 4) a survey of costs that surrounding
cities are being charged.
Mayor Bruesch asked that staff contact the contractor and make
arrangements to extend the current contract for ninety days at the
existing rate and if that-is not acceptable, then grant the requested
increase for that ninety-day period.
MOTION BY COUNCILMAN TAYLOR, SECONDED BY COUNCILMAN IMPERIAL that
this contract be extended for ninety days and the contract be put out
to bid. Vote resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
V. MATTERS FOR DISCUSSION & ACTION
A. REQUEST FROM CALIFORNIA CHRISTIAN HOME TO TEMPORARILY CLOSE
THE 4700-4879 BLOCK OF DELTA STREET ON MAY 14, 1988
MOTION BY COUNCILMAN IMPERIAL, SECONDED BY MAYOR PRO TEM McDONALD
that this request be approved subject to the California Christian
Home placing and manning temporary barriers during the road closure
to provide emergency access to area residents and the San Gabriel
Valley Water District should the need arise and that the California
Christian Home assume the costs of these barriers. Vote resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
B. RELOCATION OF NISSAN AUTOMOBILE DEALERSHIP
CC 5-10-88
Page #4
VERBATIM DIALOGUE FOLLOWS:
COUNCILMAN TAYLOR: This particular item, I talked with Mr. Tripepi,
in general, about a month ago. He said that they were still
interested in the property. I thought it was going along fairly
smoothly because we'd discussed, a year ago or so, before the hotel
was going in and it just seemed ironic that we got the hotel built
and now here's a car dealer that's interested and still it sounded
pretty positive that there's a good chance that they're going
relocate up there anyway because an agreement had been worked out.
He did make the comment that they were going to ask for some
assistance but we never got any detail on what it was they were going
to ask. Now, it comes up that it's a 1/4 million dollars,
approximately. The ironic part about it is, it's almost like a gold
mine. They're talking about how successful it's going to be -
they're going to triple or quadruple their income off of this - it's
like the rich are getting richer and the poor are getting poorer.
It's given to us in really high praised glorious sounds of how much
of a success it's going to be and more power to them. I believe
every business is entitled to the profits for the risk that they
take. It's what they've been trying to get all along - the corridor
on the Pomona Freeway. I thought it's great. They're going to be
able to get up there on their own. I'd also mentioned to Mr. Tripepi
the streets have been deteriorating up here on Rosemead Boulevard,
the residential streets are actually coming out in chunks, now. I'd
asked him to see what we could with getting those streets repaired
before they really get to be a problem. They've been slurried two,
three, four times. It just goes against my grain when I know what
the community needs, and there's ways that it should be spent rather
than giving a 1/4 million dollars to somebody who's going to make a
success, anyway. I just can't go for this particular concept because
it's going to be a success on its own. I'd like to know what
positive steps or what is the actual agreement that.... and I don't
criticize the dealer for asking... any of us would do that. "How can
I get somebody else to put their money in and to help us on it." I
think it's going to be a virtual success, with us or without us.
MAYOR BRUESCH: Mr. Tripepi. I have a question. There's two figures
given us. Right now, we're receiving an average of $93,000 of sales
tax. It fluctuates with the market, of course, 186 being a good year
and '87...
FRANK G. TRIPEPI, CITY MANAGER: That's correct, sir. 186 was
$108,715 and 187 was $78,030.
BRUESCH: Sales are apparently up across the board according to... all
of a sudden we see the fact that the mere moving of that down to the
freeway takes us up to the first year, $384,000. Who's projection is
this?
TRIPEPI: This is the projection given basically by the dealership in
conjunction with the factory. This is what they feel that they can
do on that particular site. You have to realize, they've been, in
our opinion, fairly successful on an existing site on Mission Drive
which is virtually hidden from any kind of freeway exposure. I don't
want to sit here and try to convince the Council that freeway
visibility is the way to go. Unfortunately, all of the factories,
right now, are basically forcing all of their dealerships to get on
the freeway. Whether it's right or wrong, the factory feels that is
the best location for the dealerships and if the dealerships want to
maintain franchises then that's where they must relocate. The
problem that you get into and as Mr. Taylor said, the dealers will
ask for whatever they feel they can get. If the Council would ...we
tried to make this thing as objective as we could. Our main purpose
was obviously to try to maintain the dealership in the City. I can't
sit here this evening and tell you that if we do not assist the
dealer in the relocation that he will not move up there nor can I
tell you that he would. I don't know. I can only go by the way I
feel in the discussions that we've had. What I would call your
attention to is the exhibit that we've attached, known as Exhibit
"C." If you will look in there you will see that there are a number
of cities that offer assistance and have made these kinds of deals in
order to maintain dealerships in their community.
CC 5-10-88
Page 45
BRUESCH: Mr. Tripepi. Is it a foregone conclusion that Montebello
will have a car row - a car dealership row - in that vicinity?
TRIPEPI: I think eventually the City of Montebello will have an auto
mall. If they don't, I know of another city that's adjacent that
will also develop an auto mall.
BRUESCH: I do know that South E1 Monte, both South E1 Monte and E1
Monte are looking at auto malls.
TRIPEPI: That's correct. They're looking at twenty acres in South
E1 Monte.
BRUESCH: And Monterey Park is also looking at....
TRIPEPI: Monterey Park - they're not going to build until after the
year 2000, at least, in my opinion. There's a report that came out
from State Department of Health Services that said that they can't
build.
TAYLOR: That's what I wanted Mr. Tripepi to clarify that it
gets ...I've seen... something needs to be clarified in these reports.
They're referring to six or eight cities but we don't have the dollar
values that a lot of these cities used redevelopment to acquire the
properties. The dollars are not stated. It said that assistance was
given to them. With redevelopment, it's a different issue all
together. They're going in and wheeling and dealing with the tax
increment money and what they can get back off of the improvement. I
think that that report should have been more specific not just giving
the names of the cities and how they were assisted. Again, it's a
tough situation when you look at the sales increase, you mentioned
$93,000 the first year; it jumps to $384,000 and at ten years you're
up to $650,000 going from an $88,000 or $93,000. But what's beyond
that? That's only one percent. If we've gone from $93,000 up to
$650,000, keep in mind, that's one percent of sales. If they're
selling $25,000,000 worth of cars and you multiply that times six you
got $150,000,000 sales in cars and that's why I say unless it's a
glorious projection why do we need to put in $250,000 when this thing
is just a tremendous success and we keep the dollars for the
community and use it throughout the City. If somebody else is richer
than I am, I'm not going to home and not sleep tonight because
they've got it and I don't.
COUNCILMAN IMPERIAL: I don't think that's the point, Mr. Mayor. I
think the point is we're looking at long term projections. And if
we'd looked at this way, we wouldn't have an Edison Company sitting
down there; we wouldn't have a Cal-Fed. I'm not saying I'm for or
against this, but I think we'd better look at this rationally, and
look at the future because tax dollars are going to be hard to come
by. What we're saying in reality is we're looking at the future, and
what it can do for this City. We haven't got too many places in this
City where anything can do that for this City.
TAYLOR: Mr. Mayor. Edison came first, then we developed the Agency
to get the money after Edison did it on their own. Cal-Fed was an
across-the-board exchange on the property. We didn't subsidize; they
moved in and paid full dollar for it. That's the difference. Here
is somebody that just is reeking of pure success and we're going to
take 1/4 million dollars out of a City of 44,000 people and give it
to them and they're going to make it with or without us.
BRUESCH: I look at this way. A quarter of a million dollars is a
lot. If they're not located in the City, then we have nothing.
TAYLOR: Who says they're not going to be in the City? They haven't
said that.
CC 5-10-88
Page #6
• 0
BRUESCH: Because the game that is being played with car dealerships
right now and all you have to do is look in the newspapers, not even
in the editorials or anything; just look at the ads and see how these
dealerships are moving. The game that is being played is "What are
you going to give to me?" Nissan has said that it has to move and it
is going to move. It wants to stay in Rosemead, but they need help.
What does that mean? If you don't give us the help, we're going to
move elsewhere. And we don't have $250,000 to give to them; nobody
has $250,000 to give to anybody because that money is not going to be
in existence. I don't like it anymore than you do, Gary. I won't
sell out to the markets that are trying to do the same thing to us
but if it means that we can keep a dealership that can provide monies
to us without condemning property, without using redevelopment
powers. A straight across deal on sales tax then, if that's going to
keep that money flowing into our City then I have to go on record as
being for it. Mr. DeCocker?
DeCOCKER: Mr. McDonald, first.
MCDONALD: I was the first. Gary, I think you need to move into the
1980s. I think if you look at all the malls up and down the I-10,
there isn't a city that didn't participate in establishing those
malls through either redevelopment or coaxing them to come in. I
think this situation is appropriate; it's the current method of
looking down the road and progressively getting tax dollars for years
and years to come. I would certainly be in favor of the move.
DeCOCKER: For about ,two years now we've been hearing about
restaurant row and I haven't seen a restaurant row up there, yet. I
don't think you're going to see a restaurant row. It's my
understanding that the value of that property is that restaurants
cannot afford to buy it. When you look at Alhambra, Alhambra is
doing extensive work on their streets up there for one reason and
that's for their automobile row. I think those people understand
that the automobile industry does bring revenue into the City. I'd
be in favor of this, Mr. Mayor.
BRUESCH: I'll begin my comments with saying that we began discussing
this about two and a half years ago when we were informed that they
would have to move or lose their lease. The idea was to put them up
in the mall. At that time I said I would not be in favor of using
redevelopment powers to give them any type of "freebie." I would be
against any type of condemnation. What has been worked out here
satisfies my misgivings on this. I am in favor of it.
TAYLOR: Mr. Mayor. I'd like my comments in the Minutes, verbatim.
This particular document (referring to the Staff Report that
accompanied this item) is a public document, is it not?
BRUESCH: Yes, it is.
TAYLOR: I would like it incorporated into the Minutes so that it
will not be lost and then when other businesses in this community ask
for assistance, we're going to be able to say "Yes, this is the way
you do it; this is how you're entitled to your percentage. You may
not be the number one sales tax producer but you're a viable entity
in this community." We have 1,000 businesses in this community and
when we start doing this then they're all going to be entitled to a
fair chance.
END VERBATIM DIALOGUE
MOTION BY MAYOR PRO TEM McDONALD, SECONDED BY COUNCILMAN DeCOCKER
that this item be approved. Vote resulted:
Yes:
Councilmen Imperial,
and Mayor Bruesch
No:
Councilman Taylor
Absent:
None
Abstain:
None
DeCocker, Mayor Pro Tem McDonald,
The mayor declared said motion duly carried and so ordered.
CC 5-10-88
Page #7
C
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD.,CITY COUNCIL
FROM: ~r FRANK G. TRIPEPI, CITY
DATE. MAY 5, 1988
•
RELOCATION OF NISSAN AUTOMOBILE DEALERSHIP
For some time now, we have been working to try and relocate Freeway
Nissan to a site within our City's boundaries. We feel that the
sales tax produced to the City warrants our efforts. As you can see
by the attached Exhibit A, the City receives approximately $93,000
per year in revenue.
As each of you know, our relocation efforts are hampered by the fact
that automobile manufacturers are afflicted by a malady referred to
as "Freewayitis". In short, the dealerships try to locate, whenever
possible, at sites adjacent to freeways. In Nissan's case, the
factory has indicated that our dealership has to be relocated on the
60 Freeway corridor.
Our efforts, I think, have been fruitful. The factory has approved a
4-acre site next to the new Sheraton Hotel. However, as you can
appreciate, the land does not come cheap. The most recent "comp" has
a price of $15.00/a square foot. It is because of this "high" comp
that we haven't seen the development of a "restaurant row" yet.
The attached letter (Exhibit B) from Barry Daniel indicates a
willingness to relocate, but, he is requesting assistance from the
City. I don't think his request is that unreasonable. We have
attached Exhibit C which shows the financial assistance that other
cities have provided to auto dealerships. As you can see, there is
always a subsidy involved in either moving a dealership into your
city or relocating it to another site within your city.
The next Exhibit, D, shows conservative projections of how much Sales
Tax Revenue will be generated by Freeway Nissan if relocated adjacent
to the 60 Freeway.
COUNCIL AGENDA
1988
MAY 10
ITEM No. 3
MANAGER
CC 5-10-88
Page #8
Relocation of Nissan Automobile Dealership
Page 2.
We have given this project a lot of thought and to make it work, we
propose the following:
1.
2.
Offer the City of Montebello 15% of the Sales Tax received by
Rosemead in exchange for all the approvals needed by the City of
Montebello. This would eliminate any incentive for Montebello to
try and attract Freeway Nissan to move to their proposed Auto
Mall.
Offer this entire relocation as a project of our CDBG Program and
submit it along with all the necessary documentation to the
Commission for funding in an amount of $250,000.00. Since the
City of Rosemead is 51.4% low and moderate income, to lose a
business that generates that kind of dollars shown on Exhibit A
could result in reduction of services to the residents. This
project is clearly eligible and would illustrate an innovative
use of these funds by the Council to both HUD and the Commission.
3. Finally, we would propose a rebate of Sales Tax to Freeway Nissan
to fill the request of Mr. Daniel in his letter of March 24, 1988
(Exhibit B). Rather than give him a one year rebate of
$250,000.00 though, I would propose 11% of our 1% to be rebated
from the third year of operation to the ninth year. That would
total a 66% rebate instead of 100% and we can pay it over 6 years
instead of in one year. Also, by allowing Mr. Daniel a
percentage instead of a fixed amount, he has incentive to sell
more cars. The more he sells, the more rebate he receives and
the more the City makes.
You can see by the complexity of this deal, that there has been a lot
of thought given. Our sole purpose in all this was to find a
practical and politically feasible way to allow the Council to retain
Rosemead's only car dealership. I know we are treading on new ground
here, but we must if we are to retain our No. 1 and/or No. 2 Sales
Tax producer. If there is any concern about setting dangerous
precedents, let's remember that we only have one auto dealership and
all of this is designed to retain it. We don't have any others that
will ask for the "same deal." Also, we have tried to put this
together without any "condemnation" of property or direct land
subsidy through a three-way escrow. Finally, Mr. Daniel has been
informed that all of this requires an affirmative vote by the City
Council. We have made no commitments except to present a relocation
program. The final Exhibit, E, provides the projected revenue,
including the 15% to Montebello and the 11% to Freeway Nissan.
If you have any questions, we would be happy to respond.
FGT:nv
Attachments
cc 5-10-88
Page 119
Ag:5-10-88:8
0 0
EXHIBIT "A"
FREEWAY NISSAN SALES TAX
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
TWO YEAR AVERAGE
1986 1987
$ 28,605 $ 16,305
26,102 21,127
31,093 20,929
22,915 19,669
$108,715 $ 78,030
$ 93,372
CC 5-10-88
Page 1110
0
•
W NISSAN
EXHIBIT "B"
Mr Frank Tripepi
Rosemead City Manager
44 , ',?Rosemead City Hall
!!r4k`Rosemead, Ca 91770
VIA HAND DELIVERY
Dear
March 24, 1988
Pe`r our telephone conversation We 6 ,.,relocation
of Freewayssan,to the 2 4 8c`° re"'site ontheY.southjside of ,,,60 freeway
known as SOOMontebello Blvd"~Weha erequestedwrtt°en approvalfr om Nissan
140 orreCorporat'on,and would aequest tha you obtain wh=atever City Cquncil
approval that is necessary:-Per our:.conversaton,.we need the following-
items to go forward on the project; = "
1 - A land price per square foot of between ten and twelve dollars.
2 - A rebate from the City of Rosemead equal to two years sales tax,
based on annual sales of $25,000,000.
3 - A ground lease on the approximately five acres behind the property
for vehicle storage and parking.
4 - Adequate signage to have optimum freeway visibility.
If these terms are agreeable please proceed as we have discussed. If
there are any problems or questions please contact myself or Tammy Kastelz.
cc: Dan Lackey
BD/wp
/gards,%
c __JG~.
Barry Dajniel
CC 5-10-88
Page #11
P.O. BOX 6008 • ROSEMEAD, CALIFORNIA 91770-6008 9 (213) 283-4343 (818) 286-1131
EXHIBIT "C"
•
i
AUTO DEALERSHIP DEVELOPMENT SURVEY
CITY TYPE OF ASSISTANCE
Alhambra Land sold at a write down. Average
cost to the developer was $12.00.
per square foot. Also contributed
approximately $50,000 in public
improvements, including utility
relocation and landscaping.
West Covina Land sold at a write down. Average
cost to the developer was $4.00 per
square foot. Also contributed
on and off-site improvements
which include street lighting
and sewer construction.
Claremont City purchased the land at $4 - 5.00
per square foot. Dealers lease the
land with an option to buy at fair
market value. Also contributed public
improvements.
Monrovia Land sold at write down. Average
cost to the developer ranged from
$5.25 -7.25 per square foot depending
on location. Also landscaped all the
property and relocated utility lines,
as well as several other off-site
improvements.
Cerritos Land sold at write down. Average
cost to the developer is $12.00 per
square foot. City also contributes
public improvements.
E1 Monte The City purchased the previous
location of Longo Toyota at 10%
above fair market value. Longo
Toyota then purchased their current
site at fair market value.
CC 5-10-88
Page #12
ra-ZEWTA-T NISSAN
EXHIBIT "D"
May 5, 1988
Mr Frank Tripepi
City Manager
City of Rosemead
8838 East Valley Blvd.
Rosemead, Ca 91770
Dear Frank,
Per our earlier discussions we have met;-withaour C P:A.'"firm`afid
ez
prepared a,ten year.,forecas for projected taxable sales-for the proposed
2.4 acre site,on<the-60,-Freeway at;°San'=Cabrieh-Boulev,$rd
The,;enc16s'ed projections are based".'on the following assumptions:
1 g y y
,.Y b ( 1 T X
i r3 < j P e _ fl 5
1. That business has a five percent increase for the first five
years due to increased visibility and promotion of the dealership.
2. That inflation is four percent per year.
We feel confident that these assumptions are extremely conservative and
that the sales figures projected should be reached under normal
circumstances, and in the time frame specified.
Should we be able to acquire the two acre parcel presently optioned by
the Hotel and locate.the new 'INFINITI' franchise on that parcel we should
be able to generate approximately double the enclosed projections. While
'INFINITI' will not sell the same volume as Nissan, the price of the
Infiniti is considerably more than that of the Nissan vehicles
Should you require any further information, please do not hesitate to
contact me personally.
i Sincerely,
J' r
Barry Daniel
President
CC 5-10-88
Page 1113
P.O. BOX 6008 • ROSEMEAD, CALIFORNIA 91770-6008 • (213) 283-4343 (818) 286-1131
CITY PORTION SALES TAX TEN YEARS
PARTS $
VEHICLE SALES $
TOTAL S
YEAR
ONE
54,000.00
330,000.00
384,000.00
YEAR
TWO
.56,160.00
361,046.00
417,206.00
YEAR
THREE
58,406.00
394,062.00
452,468.00
YEAR
FOUR
60,743.00
429,130.00
489,873.00
YEAR
FIVE
63,172.00
467,917.00
531,089.00
YEAR
SIX
65,699.00
486,642.00
552,341.00
YEAR
SEVEN
68,326.00
506,095.00
574,421.00
YEAR
EIGHT
71,059.00
526,347.00
597,406.00
YEAR
N114E
73,091.00
547,400.00
620,491.00
YEAR
TEN
76,857.00
569,288.00
646,145.00
TOTAL 647,513.00 4,617,927.00 5,265,440.00
CC 5-10-88
Page #14
rt
O r r
r to
rr oW a=
x
mo 0
O M m
H. rt rt
0 o 0
rtrt rt
~a a
r r
m m to
a a a
yr r
m m
o to w
M
O a a
ro x x
m
H H H
am (D
rt <
P. m m m
o 0 #
~ m m
a
m
w
w
W
ti
LO
rt
V
Q
rt
:r
r•
H
a
k
m
a
H
0
M
O
ro
m
H
a
rt
- w
o
p
0
•
H 14 m
O H O
rt m p
a m ft
r 8 m
m a
~e m
r
x o
a :
FA
a
s
s
w
O N
A J
o
O N
O O
0 0
A
r o~
J N
N to
O 0)
m O
A
{n A 01
N t0 J
A V o
O V V
0) r O
A
o M V
%0 W w
W w it,
J co 0)
w m o
w
W In V
r o 0
o A 0%
co r rn
e ~ w
w
w 0+ co
N O N
w V co
A In {n
r V H
W
J O co
A W 0~
a r r
h) 0) O%
r 0~ W
w
\0 0~ co
V UI b
A V 0%
o r r
0s A O
01
N 10
O w
O
A o
J
r A
m
A ~O
m rn
o
A N
to N
'd
O
m
m
m
a m
a
r
C7
r
H
?7
w
N
0h
Ir
A
O
0
w
N
A
~ IN
of
N
at
w r
w O
A
IW K
N !Do
v Stl
0)
w
4m r
IA h 0
to
V x
W SU
w
o IN q x
O O 4"
V Ib~ tr!
ro
A A
O o
W 4
jai to
V O
w H
w M
0
x
A 0)
N
~ IJ
0
V
N
A
A
N
IO)
O
w
N
N
N
J
p0
A
F.
V
N
A
CC 5-10-88
N Io Page 1115
N
W
VII.MATTERS FROM OFFICIALS
A. COMMISSION APPOINTMENT
MOTION BY COUNCILMAN IMPERIAL, SECONDED BY MAYOR PRO TEM McDONALD
that Commissioner Mattern be reappointed to the Planning Commission,
the term to expire in May of 1990. Vote resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
Mayor Bruesch asked about the City's representative to the Senior
citizens council. Mr. Bruesch stated that he did not recall having
heard anything from that body, recently.
Mayor Pro Tem McDonald asked that staff investigate this and
report back to the Council.
B. MAYOR'S APPOINTMENTS FOR 1988-1989
MOTION BY COUNCILMAN IMPERIAL, SECONDED BY MAYOR PRO TEM McDONALD
that these appointments be approved. Vote resulted:
UPON ROLL CALL VOTE ALL COUNCILMEN PRESENT VOTED AYE. The Mayor
declared said motion duly carried and so ordered.
C. COUNCILMAN IMPERIAL
1. Requested a status report on the next Agenda in regard
to the condition of the street on Valley Boulevard at Rosemead
Boulevard, the south end of the street, near the Mobil Station and
the pot holes on Rosemead Boulevard, south of Valley Boulevard.
D. COUNCILMAN TAYLOR
1. Requested that staff do a survey of the streets in the
northern portion of the City for possible resurfacing; slurry is no
longer enough.
Frank G. Tripepi, City Manager, stated that some of the streets
in question are part of the Infrastructure Report and an inventory of
the streets is planned with a possible funding source.
Mayor Bruesch requested the Council consider holding a study
session to fully discuss the Infrastructure Report.
2. Requested clarification of a report received on the
mosquito problem at Klingerman Street.
Mayor Bruesch stated the opinion that a mosquito problem still
exists.
Alfonso Rodriguez, Deputy City Engineer, stated that staff had
been dispatched to treat the catch basins at that location; these
catch basins are believed to be the source of the mosquitoes.
E. MAYOR BRUESCH
1. Directed staff to investigate the northside of Hellman
Avenue between Del Mar Avenue and the city boundary for trash that
was left and strewn along the street.
Hugh Foutz, City Treasurer, stated that he had seen a senior
citizen and a child trash picking along there and had left the mess.
2. Asked for an update on the usage of Handyman funds for
senior citizens weatherizing their homes.
Frank G. Tripepi, City Manager, stated that this item would be
placed as a future Agenda.
CC 5-10-88
Page #16
3. Asked for an update on the progress of establishing a
committee to study the southwest traffic problem.
Councilman Taylor requested that this study not be limited to the
southwest but include the entire city.
Councilman Imperial concurred and stated this would allow an
overall picture to be developed that would include all traffic
problems that are encountered by Rosemead residents.
Mayor Bruesch directed staff to prepare a cost estimate of a
study that would include the entire city and the feasibility of such
a comprehensive study.
Councilman Imperial requested
regard to any traffic study until
the Council.
that nothing further be done in
this cost analysis is returned to
VIII.ORAL COMMUNICATIONS
A. Juan Nunez, 2702 Del Mar Avenue, expressed his opinion on the
method used for handling pine needles that the street sweeper cannot
pick up; that the Nissan dealership appeared to be blackmailing the
City into helping them to relocate; and asked about a water pipe at
the corner of Prospect and Garvey Avenues that appeared to be
considerably higher than the surrounding area.
The City Council recessed at 10:20 p.m. to a Closed Session to
discuss a personnel matter. No action was taken and the meeting was
reconvened accordingly.
There being no further action to be taken at this time, the
meeting was adjourned at 11:15 p.m. to the Budget Study Session on
May 14, 1988 at 9:00 a.m.
APPROVED:
Respectfully submitted:
9L
CC 5-10-88
Page #17