CDC - Item 2 - Rehabilitation Rebate For 8338 Valley Blvd.�4
,a.
Rosemead Community Development Commission
RCDC8838 East Valley Boulevard, CA 91770 Tel 626.569.2100 Fax 626.307.9218
TO: HONORABLE CHAIRMAN
AND MEMBERS OF THE ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
FROM NK G. TRIPEPI, EXECUTIVE DIRECTOR'. 1
DATE: MAY 28, 2002 J
SUBJECT: REVIEW AND APPROVAL OF COMMISSION COMMERCIAL
REHABILITATION REBATE FOR 8338 VALLEY BOULEVARD
The Rosemead Community Development Commission's Commercial Rehabilitation
Program offers financial assistance to businesses in the form of rebates for exterior
improvements based on 50 percent of approved costs to a maximum amount of
$15,000. The property owner of the Community Animal Hospital is proposing to make
property improvements totaling $42,500 and requesting a 50 percent rebate for an
amount not -to- exceed $21,250. Staff is presenting for your review and approval this
rebate request which exceeds the maximum rebate amount under the current program
guidelines and includes the cost of parking lot improvements not normally covered
under the rebate program.
The. owner of the property purchased the property in November 1968, and has
maintained the property as a veterinary clinic the entire time. The property is an anchor
property located on a prominent corner at the western entrance to the City. The owner
is seeking to make general property improvements including a new the roof, exterior
lighting and paint, replacement of heating and air conditioning units, and parking lot
improvements.
COMMISSION AGENDA
MAY.-2 8 2002
ITEM No. �_� —
Al
May 28, 2002
Page 2
Staff believes that the proposed improvements to the property will provide for extensive
exterior improvements to the commercial property and will create a strong visual impact
on the western entrance to the City. Staff worked with the property owner to obtain .
construction bids for the project. The owner has selected a State licensed contractor to
complete the construction work.
Summary of Transaction .
The Participation Agreement requires the owner to renovate the building and parking lot
and further requires the owner to maintain the improvements and not allow ineligible
uses, such as. Video arcades and. Liquor stores for a period of ten (10) years.
Participant's estimated cost of improvments to the property is $42,500. The cost to the
Commission in the form of a rebate, other than administrative .costs, will be no more
than $21,250.
The Commission currently has $250,000 budgeted for Commission- funded Commercial
Rehabilitation. Of that amount, $25,751.35 has been expended on two projects year to
date, leaving a balance of $224,248.65. There are sufficient funds available to fund the
requested rebate.
This project will improve the existing entrance to the City and will prevent blight in the
project area. The building will be rehabilitated to present a desirable use that has had a
successful track record within the City.
Environmental Determination
This project is exempt under CEQA.
RECOMMENDATION
Staff recommends that the Commission approve a rebate in the amount not to exceed
$21,250 for the purpose of renovating the property located at 8338 E. Valley Boulevard
and authorize the Executive Director to execute the appropriate agreements.
Attachments:
Owner Participation Agreement
Covenant
CITY OF ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
COMMERCIAL REHABILITATION PROGRAM
OWNER PARTICIPATION AGREEMENT _
THIS AGREEMENT made and entered into this — day of 2002, by and
between property owner S & D Johnson Family Limited Partnership, represented by
Stanley D. Johnson, DVM (hereinafter "OWNER ") and the City of Rosemead Community
Development Commission (hereinafter "COMMISSION ").
WITNESSETH
WHEREAS, S & D Johnson Family Limited Partnership is owner of commercial property.
commonly known as 8338 E. Valley Blvd., Rosemead, CA (the "PROPERTY "), which is
legally described in Exhibit "A," attached hereto .
WHEREAS, the PROPERTY is in need of general exterior property improvements to
improve the visual appearance and ensure the property is in compliance with the City of
Rosemead zoning requirements, the cost of which has the, effect of discouraging the
upgrading of the property.
WHEREAS, COMMISSION is the administrator of redevelopment funds which may be
used to provide incentives for the rehabilitation of commercial buildings, owned by private
for - profit businesses, where improvements are limited to the exterior of the building and
the correction of code violations.
WHEREAS, OWNER desires to have improvements made to the property with the
assistance of the financial incentives offered by the COMMISSION. .
NOW, THEREFORE, for and in consideration of their mutual promises, the OWNER and
the COMMISSION hereby agree as follows:
1. REBATE AMOUNT: COMMISSION shall make a reimbursement to OWNER in an
amount not to exceed 50% to a maximum of twenty one thousand two hundred and
fifty dollars ($21,250) for eligible property improvement costs including the cost of a
new tile roof, new exterior lighting and paint, parking improvements, and heating and
air conditioning. Reimbursement will be made on satisfactory completion of the
improvements upon the PROPERTY (the "IMPROVEMENTS') in accordance with the
scope of work, attached hereto as Exhibit "B," submission of acceptable evidence of
full prior payment for all associated costs and finalized permits with no outstanding
City or Commission issues, and execution and delivery of the Agreement Containing
Covenants Affecting Real Property referenced in Section 9 of this Agreement.
2. FINANCING: OWNER agrees.to finance the cost and expense of constructing the
IMPROVEMENTS and'costs and expenses incidental thereto, using private funds.
3. TIME OF PERFORMANCE: OWNER agrees to cause construction . of the
IMPROVEMENTS to be commenced and to be prosecuted with due diligence and
good faith without delay, so that the same will be fully completed in accordance with
the Schedule of Performance attached hereto as "Exhibit C ".
4. CHANGES IN WORK: OWNER shall not permit any amendments or modifications of
the IMPROVEMENTS or the performance of any work pursuant to such amendments
or modifications, which would increase the cost of the project, without prior written
consent of the COMMISSION first being obtained with respect thereto.
5. RIGHTS OF INSPECTION: COMMISSION shall have the right at any time and from
time to time to enter the property for the purposes of inspection. OWNER agrees to
provide access to all records pertaining to the project, as the COMMISSION may
deem necessary to establish proper accounting of the use of the rebate proceeds.
6. INDEMNIFICATION: OWNER shall indemnify, defend and hold harmless, the
COMMISSION, its officers, agents, or employees from and against any loss, liability,
or expense from defense costs, legal fees, and claims for damages that may arise or
result from the wrongful acts or omissions or the allegedly wrongful or negligent acts
or omissions of the OWNER, its officers, agents or employees.
7. COMPLIANCE WITH REHABILITATION STANDARDS: All plans and specifications
must comply with the City of Rosemead Building and Fire Codes, Seismic Ordinance,
General Plan and Zoning Ordinances.
8. ASSIGNABILITY. OWNER shall not assign or transfer any interest in this
AGREEMENT, whether by assignment, delegation or novation, without the prior
written consent of the COMMISSION.
9. OCCUPANCY. OWNER agrees to execute for recordation in the Office of the Los
Angeles County recorder an Agreement Containing Covenants Affecting Real
Property attached hereto as Exhibit "D" and obligating OWNER to maintain the
improvements to the property for a period of ten (10) years in accordance with the
Rosemead Municipal Code and, for a concurrent period of ten (10) years, prohibiting
use of the property for ineligible purposes as outlined in the Guidelines.
IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day
and year first set forth hereinabove.
RECORDING REQUESTED BY:
City of Rosemead )
WHEN RECORDED RETURN TO: )
Patrick Goode
City of Rosemead, Community Development
8838 E. Valley Boulevard - )
Rosemead, CA 91770
AGREEMENT CONTAINING COVENANTS
AFFECTING REAL PROPERTY .
THIS AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (the
"Covenant Agreement ") is entered into this _ day of 2002, by and between S & D
Johnson Family Limited Partnership, represented by Stanley D. Johnson, DVM (hereinafter
referred to as "Owner ") and the Rosemead Community Development Commission, a public
body, corporate and politic (hereinafter referred to as "Commission ") with reference to the
following:
A. Owner is the owner of certain real property in the City of Rosemead, County
of Los Angeles, California, as described in the legal description attached
hereto as Exhibit "K-and incorporated herein ( "Property ").
B. Owner desires to participate in the Commission's Commercial Rehabilitation
Program and desires to enter into this Agreement as part of such program.
NOW, THEREFORE, COMMISSION AND OWNER AGREES AS FOLLOWS:
1. Owner covenants and agrees that there shall be no discrimination against or
segregation of any person or group of persons on account of race, color, creed,
religion, sex, marital status, national origin, handicap, or ancestry in the
development, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment
of the Property, nor shall Owner or any grantees or any persons claiming through
Owner establish or permit any such practice or practices of discrimination or
segregation.
2. Owner covenants and agrees that, for a period of ten (10) years from date hereof, .
Owner will not permit uses excluded under the Commission - funded rebate program.
Those uses include: Automobile storage garage; Bars and cocktail lounges (except
in conjunction with a bona fide dinnerhouse restaurant); Club or lodge; Frozen food
lockers; Mortuaries; Sanitariums; Baths, Turkish and the like; Churches; Coin-
operated and automatic car washes; Public garages; Open air theatres;
Refrigerated lockers (except in conjunction with other uses allowed by this
Agreement); Storage garage; Upholstery shop; Used furniture thrift shop; Utility
trailer and truck rental yard; Any establishment selling, renting or exhibiting adult
materials (defined in Section 19.63.020 of the RMC that accounts for more than
10% of the business of the establishment or which sells drug paraphernalia); Any
flea market, amusement arcade, pool or billiard hall; Any operation used primarily
as a,warehouse.operation and any assembling, manufacturing, distilling, refining,
smelting, agricultural or mining operation; Any "second hand" store, army, navy or
government "surplus" store; Video arcades; Pawn shops; check cashing services;
Laundromats; Bail bonds; Liquor stores; Massage parlors; Garment manufacturer;
or Poultry, fish or meat processing establishment.
3. Owner covenants and agrees -that Owner will maintain the improvements funded
with the Commission's assistance through the Commercial Rehabilitation Program
for a period of ten (10) years from date hereof. Owner understands that, if
improvements are not maintained, the Commission will notify the Owner of repairs
to be made. If the Owner does not make repairs within a reasonable time frame,
Owner agrees that the Commission or its agents shall be authorized to enter onto
the Property to make such repairs and shall bill. the Owner for such repairs. If
Owner does not reimburse the Commission for amounts disbursed to make repairs
as authorized under this Covenant, the Commission shall place a lien on the
property for the amount of funds disbursed to make such repairs.
4. All conditions, covenants and restrictions contained in this Covenant Agreement
shall be Covenants running with the land and shall, in any event, and without
regard to technical classification or designation, legal or otherwise, tie, to the fullest
extent permitted by law and equity, binding for the benefit and in favor of, and
enforceable by the Commission and its assigns, and its successor and assigns,
against Owner, its successors and assigns, to or of the Property described.herein.
5. In amplification and not in restriction of the provisions set forth hereinabove, it is
intended and agreed that the Commission shall be deemed a beneficiary of the
covenants provided hereinabove both for and in its own right and also for the
purposes of protecting the interest of the community. The Commission shall have
the right, in the event of any breach of any such agreement or covenant, to exercise
all the rights and remedies, and to maintain any actions at law or suit in equity or
other proper proceedings to enforce the curing of such breach of agreement or
covenant.
IN WITNESS WHEREOF, The Commission and Owner has caused this instrument to be
executed on their behalf by their respective officers hereunto duly authorized as of the
date first written hereinabove.
Commission: ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
By:
FRANK G. TRIPEPI
City Manager
Owner:
EXHIBIT A
THE LAND REFERRED TO IN THIS REPORT IS LOCATED IN AND IS DESCRIBED AS
FOLLOWS: .
ASSESSORS PARCEL NO.: 5371 - 005 -012
OWNER'S NAME: S & D Johnson Family Limited. Partnership
OWNER'S ADDRESS: 8338 E. Valley Boulevard, Rosemead, CA 91770
Y
EXHIBIT B
SCOPE OF WORK
ITEM 1 Tile Roof
Furnish all materials, review including labor to
perform the following:
• Remove existing tile roof down to wood deck.
• Remove and replace first board at perimeter and
fascia boards at gable ends.
• Cut back rafter ends approximately 8
• Install new fascia board along front eave.
Clean and prepare roof surface.
• Apply two plies of 40 -pound base sheet, nailed
on.
• Install new one piece "S" Mission tile birdstop
metals.
(50% Bermuda Blend, 50% El Camino Blend wt.
App rox. 800 lbs./ 100ft.2)
• Install custom made L -metal for junction
between parapet wall and tile.
• Apply mortar cement / weatherblock at base of
exterior walls.
• Apply tile trim on top edge of flat roof on east,
north, and west side including the parapet wall.
• Pick up and haul away all roofing debris.
ITEM 2 Flat Roof
Furnish all materials, review including labor to
perform the following: '
I
Remove existing roof down to wood deck.
• Remove and replace dry rotted boards as
needed at the perimeter of the roof. .
• Eliminate unused equipment platforms on roof
deck.
• Build and install two new air conditioning
platforms.
• Reinforce sagging area on rear roof deck
(approximately 200 square feet).
• Build and install support frame for air
1 conditioning shield.,
• Clean and prepare roof surface.
e ' Apply 28 -pound base sheet, nailed on.
• Install custom -made gravel guard metal at
perimeter of roof.
4 Install all new pipe flashings and vents.
$ 9.400.00
ti
f
• Apply two layers of #11 felt, with a coat of hot
asphalt between each ply. .
• Seal all pipes and vents with a layer of plastic
cement.
• Apply flood coat of hot asphalt with new rock.
• Install two new sheet metal caps on air .
conditioning platform.'
• Pick up and haul away all roofing debris.
ITEM 3 Paintinci
Furnish all materials, review including labor to
perform the following: - /
• Prepare the exterior block walls and woodwork
to receive new paint.
• I Prime all newly installed wood surfaces and
other areas, as needed.
•_ Apply a fresh coat of exterior grade paint
according to manufacture's specifications.
ITEM 4 Air Conditioning
I
j • Install two (2) new air conditioning unit
. mounted on the roof. (Bryant model 5838
j with Puron).
• A/C unit shall be screened from view from
the streets and screening material shall be
approved by the City Planning and Building
Department.
ITEM 5 Parking Improvements
Furnish all materials, review including labor to
perform the following:
• Remove, patch and repair damaged asphalt
surfaces on east side of building. The area of
asphalt parking lot area to be removed, patched
and repaired is approximately 1,386 square feet
(See Plans and Specifications). Grade parking
lot so that the finished asphalt will remain above
grade sufficiently to allow water run -off. Refer to
"Greenbook" Section 203 — Bituminous
MAIterials, 203 -6 Asphalt Concrete, 203 -6.1
General. A*halt concrete material shall be
class and gre6le D1 -AR -4000.
• Remove and dispose of any excess soil offsite
or bring in any hileded fill.
• Apply new slui'N coat seal on remainder of
existing parking lot area and patch cracks.
$ 8.200.00
$ 4.200.00
$ 10.400
• Paint new parking stall lines and Handicap
parking spaces in accordance . to parking
governing codes.
• Salvage wheel stops and re- install. $ 7.600
ITEM 5 Lighting
Furnish all materials, review including labor to
perform the following:
• Remove and install 4 new hanging light fixtures
with Melissa Lighting, Medium 651 Series into
the existing location. Retail allowance should
not exceed $137.05 plus tax.
• Remove and install 7 new wall mount light
fixture with Melissa Lighting, Medium 6504
Series into the existing location. Retail
_ allowance shall not exceed $153.10 plus tax.
• Both design and color of fixture shall be owners
choice. $ 2.700
TOTAL $ 42.500
EXHIBIT C
EXHIBIT D
IN ORDER TO BE ELIGIBLE FOR ASSISTANCE UNDER THE COMMERCIAL
REHABILITATION PROGRAM, PROPERTIES CANNOT BE RENTED OR
OCCUPIED BY THE FOLLOWING USES:
Automobile storage garage;
Bars and cocktail lounges (except in conjunction with a bona fide dinnerhouse
restaurant); ;
Club or lodge;
Frozen food lockers;
Mortuaries;
Sanitariums;
Baths, Turkish and the like;
Churches;
Coin- operated and automatic car washes;
Public garages;
Open air theatres;
Refrigerated lockers (except in conjunction with'other uses allowed by this
Agreement);
Storage garage;
Upholstery shop;
Used furniture thrift shop;
Utility trailer and truck rental yard;
Any establishment selling, renting or exhibiting adult materials (defined in Section
19.63.020 of the RMC that accounts for more than 10% of the business of the
establishment or which sells drug paraphernalia);
Any flea market, amusement arcade, pool or billiard hall;
Any operation used primarily as a warehouse operation and any assembling,
manufacturing, distilling, . refining, smelting, agricultural or mining operation;
Any "second hand" store, army, navy or government "surplus" store;
Video arcades;
Pawn shops;
Check cashing services; `
Laundromats;
Bail bonds;
Liquor stores;
Massage parlors;
Garment manufacturer; or
Poultry, fish or meat processing establishment.