CDC - Item 3A - Minutes 3-25-08•
Minutes of the Regular Meeting
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
March 25, 2008
Chairman Tran called the regular meeting of the Rosemead Community Development Commission to order
at 6:13 p.m. in the Rosemead Community Recreation Center, 3936 N. Muscatel Avenue, Rosemead,
California. The pledge to the flag was led by Vice-Chairman Nunez and Chairman Tran led the invocation.
ROLL CALL OF OFFICERS:
Present: Commissioners Clark, Low, Taylor
Vice-Chairman Nunez, Chairman Tran
Absent: None
1. PUBLIC COMMENTS FROM THE AUDIENCE - None
2. CONSENT CALENDAR
A. Minutes
February 12, 2008 - Regular Meeting
February 26, 2008 - Regular Meeting
Resolution No. 2008.06 Claims and Demands
Recommendation: Adopt Resolution No. 2008-06 for payment of Commission
expenditures in the amount of $244,048.80 demands no. 8195 through 8205 and 9344
through 9347.
C. Resolution No. 2008.09 Claims and Demands
Recommendation: Adopt Resolution No. 2008-09 for payment of Commission
expenditures in the amount of $67,528.55 demands no. 8206 through 8211 and 9348
through 9350.
Vice Chairman Nunez made a motion, second by Commissioner Low to approve the Consent
Calendar. Vote resulted in:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain: None
Absent: None
Rosemead Community Development Commission
Minutes of March 25, 2008
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3. MATTERS FROM THE CHAIRMAN & COMMISSIONERS.
Commissioner Clark made staff aware of the graffiti along the railroad tracks on Grand Avenue. She
questioned the jurisdiction where the graffiti is located and asked staff to check on the matter.
Executive Director Chi assured the Commission that staff would look into graffiti issue.
4. MATTERS FROM THE EXECUTIVE DIRECTOR & STAFF
A. Update on Status of Development Site at the Southwest Corner of Rosemead
Boulevard and Glendon Way
On January 8, 2008, the Rosemead Community Development Commission (CDC)
approved an Exclusive Negotiating Agreement (ENA) with Jacobsen Family Holdings, LLC
for the development of the Glendon Way project. The term of the ENA provided an initial
negotiating period of 90 calendar days, subject to one (1) 90 calendar day extension given
that sufficient progress has been made during the initial 90 day Period.
Over the last 3 months, Jacobsen has been working with a nationally recognized retailer
who has shown interest in the Glendon Way project. If a commitment is made by the
retailer, Jacobsen will prepare a development package for the Commission's consideration
which will include a preliminary site plan and elevations and a draft project proforma.
Because the initial 90 day period is scheduled to expire in early April, Jacobsen has
requested an additional 90 day extension to continue negotiations with the retailer.
Recommendation: That the Rosemead Community Development Commission approve a
90 day extension to the Exclusive Negotiating Agreement between the Rosemead
Community Development Commission and Jacobsen Family Holdings for the development
of a proposed project on the southwest corner of Rosemead Boulevard and Glendon Way.
Executive Director Chi reviewed staff report regarding the ENA between Jacobsen Family Holdings in
which staff recommends the Commission grant a 90 day extension.
Commissioner Taylor made a motion, second by Councilmember Low to approve the 90 day
extension. Vote resulted in:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain: None -
Absent: None
Rosemead Community Development Commission
Minutes ofMareh 25, 2008
Page 2 of 5
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B. City Council Chamber Renovation
On January 12, 2008, the City Council approved a construction contract with Caltech
Construction for renovating the Council Chambers. As approved by general counsel, the
entire project was budgeted in the Rosemead Community Development Commission's
(RCDC) Special Projects budget using tax exempt bond funds as the funding source
(Attachment 1). However, at a later time, based on Section 33445 of the Health and
Safety (H & S) Code (Redevelopment Law) Agency Bond Counsel advised that City Hall
renovations would not be an allowable use of tax exempt bond proceeds except for bonds
issued prior to January 1, 1994 (Attachment 2). This means that the tax exempt bond
proceeds received from the City's $34 million "1993 Series Bond" issued in 1993 are
exempt from the prohibition of City Hall renovations mandated by H & S Code Section
33445, providing the City is able to account for any remaining proceeds from the "1993
Series Bond".
Finance Department staff has identified approximately $200,000 of remaining "1993 Series
Bond" proceeds which will be used to support the appropriation in the RCDC Special
Projects budget. Therefore, of the $643,000 total amount needed to renovate the Council
Chambers (architectural - $70,000, construction - $573,000), only $200,000 can be paid
for with tax exempt bond proceeds. The $443,000 difference can be funded partially with
Community Development Block Grant funding ($10,000) and the remainder ($433,000)
with funds to be appropriated in the General Fund.
In November 2007, the Commission approved a $2.4 million loan from the City to pay for
administrative expenses incurred by the redevelopment agency for FY 2007-08. Based
upon unexpected increases in tax increment revenue and salary savings realized through
vacant positions during this fiscal year, a portion of the loan will not be needed to fund
expenses in the redevelopment agency. Therefore, the Agency will be able refund the
$433,000 cost to complete the Chambers remodel back to the City from this initial loan and
not require the City Council to appropriate any new additional funds for the Council
Chambers renovation project. Resolution No. 2008-08 (Attachment 3) authorizes an early
partial repayment of the loan from the City to the Agency and is attached for your
consideration.
Recommendation: That the Rosemead Community Development Commission approve a
Resolution No. 2008-08 authorizing a partial repayment ($433,000) of the loan from the
City to the Redevelopment Agency.
Executive Director Chi reviewed staff report in which, the Agency had an unexpected increase in tax
increment revenues and salary savings during the fiscal year of 2007-2008, the Agency is able to refund
$433,000 back to the City from its initial loan.
Commissioner Clark made stated regarding repayment of loan.
Rosemead Community Development Commission
Minutes of March 25. 2008
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Executive Director Chi explained that in 1993 the City issued a Series Bonds and those bonds were exempt
from the change in state law which disallowed the continued used of redevelopment funds for city halls.
The initial bonds were made in 1993; therefore, the City can use those dollars as a potential planning
source for remodel of any part of city hall. Staff has determined that there is only $200,000 dollars that can
be tracked of those initial bonds that were issue in 1993. The loan the City made in general fund dollars to
the Agency has a remittance schedule that the Agency must give back to the City over the course of 20
years.
Commissioner Clark clarified it was general fund money
Commissioner Taylor clarified, the City loaned the Community Development Commission $2.4 million. Out
of the $2.4 million dollars the Agency is taking $433,000 dollars out of that loan and leaving the balance
roughly at $1,950,000 dollars, it is being paid back to the City out of City loan.
Executive Director Chi answered correct.
Commissioner Low asked for clarification of the time of approval of using redevelopment dollars.
Executive Director Chi explained that several years ago staff was unbudgeted out of the RA
(Redevelopment Agency) to perform remodeling to the council chambers and also with the complete
remodel of city hall. In conversations with our Bond Counsel, it was determined the City needed to find an
alternative planning sources.
Commissioner Low asked Executive Director Chi if he remembered around what time or year was that
approved by that counsel.
Chairman Tran answered it was approved approximately in August of 2006.
Vice-Chairman Nunez clarified the approval was made by the previous general counsel.
Executive Director Chi indicated it was the firm Wallin, Kress and Kranitz that served as the general
counsel, as well as, the agency counsel. Mr. Chi stated staff was able to track down only $200,000 in bond
proceeds; the issue is that some of the 1993 Series Bonds were refunded twice over the last 15 years, and
are not retractable.
Vice-Chairman Nunez asked when the bonds were refunded.
Assistant Executing Director Saeki replied it was during March of 2006 and then December of 2006
Commissioner Taylor made a motion, second by Vice-Chairman Nunez to approve the partial
payment from Redevelopment Agency to the City. Vote resulted in:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain: None
Absent: None
Rosemead Community Development Commission
Minutes of March 25, 2008
Page 4 of 5
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5. ADJOURNMENT
0
The meeting adjourned at 6:28 p.m. The next regular Community Development Commission meeting is
scheduled to take place on April 8, 2008 6:00 p.m.
Respectfully submitted: Approved:
Gloria Molleda John Tran
Commission Secretary Chairman
Rosemead Community Development Commission
Minutes ofMarch 25, 2008
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