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CC - Item III. A - Resolution 2001-37RESOLUTION NO. 2001 -37' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM OF $913,736.72 NUMBERED 35945 THROUGH 36076 MOTION BY MAYOR PRO TEM BRUESCH, SECOND BY COUNCILMAN VASQUEZ that the Council adopt Resolution No. 2001 -37. Vote resulted: Yes: Vasquez, Taylor, Bruesch, Clark, Imperial No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. IV. . CONSENT CALENDAR (CC-13 was removed for discussion purposes) CC -A AUTHORIZATION TO ATTEND ANNUAL CALIFORNIA CONTRACT CITIES ASSOCIATION'S LEGISLATIVE ORIENTATION TOUR, SACRAMENTO, JANUARY 14-16,2002 MOTION BY COUNCILMAN TAYLOR, SECOND BY MAYOR PRO TEM BRUESCH that the Council approve the aforementioned item. Vote resulted: Yes: Bruesch,' Taylor, Imperial, Clark, Vasquez No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. C -B GROUND LEASE FOR WALMART SIGN Juan Nunez, 2702 Del Mar, Rosemead, stated that this is a high price to pay for someone else's business sign, and will the City be responsible for any liabilities that the sign may incur. Councilman Taylor responded that this item only authorizes staff to proceed with the lease negotiations. Mr. Nunez stated that every business that comes into Rosemead will now be asking for a business sign. 9 Mayor Imperial stated that this sign will advertise that there is a Walmart in the City and where to exit the freeway, should the City be fortunate enough to have a Walmart here. Frank Tripepi, City Manager, stated that this type of store does not serve just Rosemead. People will be coming from a radius around the City in order to shop there. Mr. Nunez asked about the life of the lease. Mr. Tripepi responded that the lease will be structured in such a manner that when Walmart is no longer there, the lease will cease to exist. Mayor Pro Tern Bruesch stated that Walmart is the biggest retailer in the world. Mr. Bruesch continued that Walmart and those types of cut -rate large department stores have weathered the recession, and have actually prospered. Walmart has nationwide expansion plans with 25 stores earmarked for California, of which, 8 will be built in Los Angeles County. Mr. Tripepi explained that Walmart needs to have a signed Purchase Agreement with Southern California Edison in order for Walmart's executive committee to come out and visit the site. Mr. Tripepi continued that one of the reasons why Walmart would not sign the Purchase Agreement, is because no provisions have been made for an off -site sign that has freeway access. Mr. Tripepi stated that the City has secured the Charley Brown's site and that the landlord is willing to lease the spot, for an amount not to exceed $2200 per month. Mr. Tripepi stated that a better lease price will try to be negotiated. The lease will include the provisions that should Walmart not be built or closes, the lease will cease at those points. Mr. Tripepi concluded that once the lease is negotiated, it will be brought before the Council for discussion and approval. Mr. Tripepi stated that once the lease is approved, Walmart can no longer use that as an excuse not to enter into a Purchase Agreement. Councilman Taylor asked if there was any information about the City of Baldwin Park's offer to Walmart to come into their City. Mayor Imperial replied that Baldwin Park has not heard anything from Walmart. Councilman Taylor asked if any other property owners were contacted about the ground lease? Mr..Tripepi replied that the sign location requires certain eye level heights. The existing freeway sign at Charley Brown's provides the City with an opportunity to utilize an existing sign, which will simplify the process necessary for Caltrans approval. Walmart has agreed with that location. Therefore, there was no need to talk with other property owners to try and find a new location, and, to basically start from the beginning with a lengthy process. Councilman Taylor asked if this is an existing sign? Mr. Tripepi replied that it is an existing sign. However, a larger post with a higher sign, to include two signs (Charley Brown's & Walmart) will have to be constructed. Mr. Tripepi stated that it will be the City's responsibility to build the sign. Councilman Taylor asked again if anyone else was contacted? Mr. Tripepi replied no. Councilman Taylor stated that he has to disagree with this. Mr. Taylor stated that for a 25 -year lease, just for the sign.on Charley Brown's property, of which Charley Brown will share with Walmart, the City will pay a total of $650,000. Mr. Taylor continued that wherever Walmart goes, other stores + close because they cannot compete with them, which is part of doing business. Mr. Taylor commented on the possibility of the City purchasing a small strip of land to place the sign on. Mr. Tripepi replied that City property was considered. However, Walmart did not approve the eye level height. Mr. Tripepi agreed that the City would be paying $650,000 in lease fees over the years. But, the sales tax to the City would be approximately $500,000 to $650,000 per year. Councilman Taylor stated that the City will lose some of the smaller businesses. Mayor Imperial stated that the City just lost the Toys R Us to Montebello, and that this is a sign of the times. Mr. Imperial continued that the City needs to encourage businesses to come into this community. Councilman Taylor stated that this item was not researched enough. Mr. Taylor started to say that we just had a meeting in the back there, in our other.... Mayor Imperial stated that research should have been done prior to getting eight furniture stores in one block. That should serve as a learning experience. Mr. Imperial concluded that we are now on the road to recovery. Councilmember Clark requested that Councilman Taylor clarify his statement about his reference to a meeting held in the back room. Councilman Taylor clarified that the back room is the room of the meeting just held, and that at that meeting, no one did the research on the tree removal costs. Councilmember Clark explained to the audience that the meeting just concluded was an agendized meeting about a tree removal problem. Councilman Taylor explained for those in the audience, that the Redevelopment Agency, the Rehabilitation Appeals Board, and the Rosemead Housing Development Corporation meet in the adjacent room. Mr. Taylor stated that at the Housing Development meeting, discussion ensued about payment of $22,000 for removal of trees on a property, which should have been researched better. Mr. Taylor stated CCMIN:I1 -27 -01 Page #4 - that with the Walmart sign, no one checked with any other property owners about the possibility of leasing their property, or for the City to purchase a small strip of land for about $100,000. Now, the City will have to pay $650,000 plus the construction of the sign. Mr. Taylor stated again, that this was not researched properly. Mayor Imperial clarified that all the trees were counted on the Lawin property. Mr. Imperial stated that the Charley Brown site is the only place where the sign is visible. Mayor Imperial continued that there is no use putting a sign where it will not be seen. Mr. Imperial, gave as an example, the highly visible Walmart sign just off the 10 freeway, and stated that is what we are trying to accomplish here. Councilman Taylor stated that he is not opposed to Walmart, but that he cannot agree with this particular item. MOTION BY COUNCILMAN VASQUEZ, SECOND BY MAYOR PRO TEM BRUESCH that the Council authorize the City Attorney and City Manager to negotiate a lease with Charley Brown's "not to exceed $2200 per month" and authorize the City Manager to execute said lease on behalf of the City. The lease will be written in such a manner that should Walmart decide not to build in Rosemead, the lease is null and void. Vote resulted: Yes: Bruesch, Imperial, Clark, Vasquez No: Taylor Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. Councilman Taylor stated for the record that he voted No because this item was not researched enough to try to obtain a better cost than $650,000. Mayor Pro Tern Bruesch disagreed and stated that staff and many Councilmembers have devoted countless hours and research efforts in trying to attract businesses to locate in Rosemead. Mr. Bruesch pointed out that the country is in an economic downtrend and it is not the best time for businesses to relocate. Yet, due to efforts of staff and Council, there are dozens of businesses looking at Rosemead as a good site to come to. Mr. Bruesch continued that approximately 130 different restaurants were contacted in an effort to interest them in relocating at the proposed McDonald's site. Councilman Taylor stated that the corporations contacted know where they want to or not want to build their restaurants. Mr. Taylor stated that after the Montgomery Wards chain declared bankruptcy, Kemko bought the leasehold interests for those stores. Mr. Taylor continued that their first selection was to have a Target store at that freeway location. Mr. Taylor pointed out that Kemko researched and decided on their own that they wanted a Target store there. Councilwoman Clark stated that Walmart did the same. CCMIN:11 -27 -01 - Page #5 - Mr. Tripepi explained that the Agency became interested in Walmart once their project with the San Gabriel Nursery fell through. Mr. Tripepi stated that Southern Ccalifornia Edison decided that they were not going to develop their Walnut Grove property and were seeking RFP's to sell it. Mr. Tripepi �) continued that the City requested to become involved with this process as the property is in the middle of the Redevelopment Project Area. Walmart submitted a good price. Mr. Tripepi added that he agrees that when Walmart opens, smaller businesses will be forced out. However, he wants to ensure that Walmart will locate in Rosemead in order for the City to benefit from the sales tax. If Walmart should locate in another nearby city, that city will receive all of the sales tax and it will ultimately force Rosemead's small ' businesses out anyway. Councilman Taylor stated that he is not opposed to Walmart coming in. However, the option of checking with property owners may have saved the City some money. Mayor Pro Tern Bruesch stated that the proposed site is the only location that affords a clear view �f the Walmart sign from either side of the 60 Freeway. V. MATTERS FOR DISCUSSION AND ACTION - None VI. STATUS REPORTS - None VII. MATTERS FROM OFFICIALS VIII. ORAL COMMUNICATIONS FROM THE AUDIENCE Juan Nunez, 2702 Del Mar, Rosemead, commented that since the Council grants approval for furniture stores, why complain about so many of them in one block. Mayor Imperial replied that those businesses cannot be denied an Occupancy Permit as that area is zoned for furniture stores. IX. ADJOURNMENT There being no further action to be taken at this time, the meeting was adjourned at 8:35 p.m. The next regular meeting will be held on Tuesday, December 11, 2001, at 8:00 p.m. Respectfully submitted: City Clerk 0 APPROVED: r 4 A OR CChfIN:11 -27 -01 Page s6