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CDC - Item 3A - Minutes 08-26-08• • ITEM NO. 3A, Minutes of the Regular COMMUNITY DEVELOPMENT COMMISSION MEETING August 26, 2008 Chairman Tran called the regular meeting of the Rosemead Community Development Commission to order at 6:03 p.m. in the City Hall Council Chambers, 8838 E. Valley Boulevard, Rosemead, California. FLAG SALUTE: Vice-Chairman Nunez INVOCATION: Commissioner Clark ROLL CALL OF OFFICERS PRESENT: Commissioner's Clark, Low, Taylor, Vice-Chairman Nunez, Chairman Tran. OFFICIALS PRESENT: Executive Director Chi, Agency Attorney Richman, Assistant City Manager Saeki, Assistant City Manager Hawkesworth, Director of Finance Brisco, Director of Parks and Recreation Montgomery-Scott, and Commission Secretary Molleda. 1. PUBLIC COMMENTS FROM THE AUDIENCE- None 2. PUBLIC HEARINGS A. Public Hearing on the Expenditure of Commission Funds for the FY 2008.2009 Capital Improvement Plan Pursuant to Health & Safety Code Sections 33679 and 33445 Redevelopment Law (Health and Safety Code Section 33445) requires that, if redevelopment funds are to be used to pay for improvements which will be publicly owned, both within and outside of the project area, the City Council and the Community Development Commission must make three findings: a) that the proposed improvements are of benefit to the Project Areas or the immediate neighborhood in which the projects are located; b) that there are no other reasonable means of financing the proposed projects available to the community; c) that the projects will assist in the elimination of blighting conditions in the Project Areas and are consistent with the adopted Implementation Plan. For the FY 2008-2009 Capital Improvement Plan, there are two projects that require the use of Commission funds. The Rosemead Parks Trail Project was considered and approved by the City Council as a part of the recently adopted budget. The Project will beautify the park by adding landscaping, adding a new walking/jogging trail around the park's perimeter, and adding new exercise and fitness equipment adjacent to the new trail. The Sewer Plan Project was also considered and approved by the City Council as a part of the recently adopted budget. The Project will conduct an overall analysis and needs assessment of the City's sewer system infrastructure. The plan will also allow staff to develop needed capital improvements projects over the next 5 and 10 years. • • Construction of the Rosemead Park Trails is expected to occur between September 2008 and November 2008. The Sewer System Master Plan is expected to be completed by April 2009. Recommendation: That the Community Development Commission adopt Resolution No. 2008-23 making the appropriate findings under Health and Safety Code Section 33445 and the Council consent to the proposed Commission expenditures. Mayor Tran opened Public Hearing at 6:05 p.m.; there being no speakers the public hearing was closed at 6:05 p.m. Commissioner Clark made a motion, seconded by Commissioner Taylor to bifurcate this issue and vote separately on Item 1 and 2. Vote resulted in: Yes: Clark, Taylor No: Low, Nunez, Tran Abstain: None Absent: None Vice-Chairman Nunez made a motion, seconded by Commissioner Low to approve the staff recommendation. Vote resulted in: Yes: Low, Nunez, Tran No: Clark, Taylor Abstain: None Absent: None 3. CONSENT CALENDAR B. Resolution No. 2008.22 Claims and Demands Recommendation: Adopt Resolution No. 2008-22 for payment of Commission expenditures in the amount of $54,817.64 demands Nos. 11026 through 11030 C. Resolution No. 2008.24 Claims and Demands Recommendation: Adopt Resolution No. 2008-24 for payment of Commission expenditures in the amount of $41,047.58 demands Nos. 9910 through 9927 and 11031. D. Resolution No. 2008.25 Claims and Demands Recommendation: Adopt Resolution No. 2008-25 for payment of Commission expenditures in the amount of $248,976.21 demands No. 8252. Rosemead Community Development Commission Minutes o/'August 26, 2008 Page 2 of'7 • • E. Resolution No. 2008-26 Claims and Demands Recommendation: Adopt Resolution No. 2008-26 for payment of Commission expenditures in the amount of $35,825.77 demands Nos. 9928 through 9932 and 11032 through 11033. Vice-Chairman Nunez made a motion, seconded by Commissioner Low to approve the consent calendar, except for items A and F. Vote resulted in: Yes: Low, Nunez, Taylor, Tran No: Clark Abstain: None Absent: None A. Minutes July 8, 2008 - Joint Regular Meeting July 22, 2008 - Regular Meeting Commissioner Low made a motion, seconded by Vice-Chairman Nunez to approve Item 3A. Vote resulted in: Yes: Low, Nunez, Tran No: Clark, Taylor Abstain: None Absent: None F. 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 five parcels aggregating approximately 8.5 acres on the southwest corner of Rosemead Boulevard and Glendon Way. This ENA was amended on May 13, 2008 to exclude the property owner (Primestor Development) of 8920 Glendon Way as they were and continue to be in negotiations for a nationally known retailer interested in locating at that site. At that time, the amended ENA was also extended for ninety (90) calendar days to allow Jacobsen Family Holdings the time to adjust their site pan, acquisition strategy, and proforma accordingly. Since then, the City has been working with Primestor and Jacobsen to design an appropriate site plan and develop a financing and acquisition strategy that would be acceptable to the City, Primestor, Jacobsen, and the proposed retailers. Because of the overall complexity of the project, it has taken longer than initially expected therefore exceeding the 90 day extension provided by the Commission to Jacobsen. Rosemead Community Development Commission Minutes gfAugust 26, 2008 Page 3 of 7 • • Recommendation: That the Community Development Commission extend the Exclusive Negotiating Agreement between the Rosemead Community Development Commission and Jacobsen Family Holdings for an additional ninety (90) calendar days, subject to one (1) additional 90 calendar day extension to finalize the site plan and the financing and acquisition strategies. Mayor Tran announced that a letter was submitted by Richards/Watson/Gershon who represent SAC Self Storage Corp. and U-Haul Co. to have it read during the Community Development Commission Meeting. Mayor Tran stated the letter would be incorporated into the minutes for tonight's meeting (Attached). Commissioner Taylor made a motion, seconded by Commissioner Clark to read the mentioned letter into the minutes. Vote resulted in: Yes: Clark, Taylor No: Low, Nunez, Tran Abstain: None Absent: None Commissioner Low made a motion, seconded by Vice-Chairman Nunez to approve Item 3F. Vote resulted in: Yes: Low, Nunez, Tran No: Clark, Taylor Abstain: None Absent: None 3. MATTERS FROM THE CHAIRMAN & 4. MATTERS FROM THE EXECUTIVE DIRECTOR & STAFF A. Rosemead Inn Hotel Operations On July 2, 2008, the Rosemead Community Development Commission acquired the Rosemead Inn located at 8832 Glendon Way. As the Commission may recall, the purchase of this site is part of an overall larger redevelopment project known as the Glendon Way Project. Over the past several months, staff has been working with Primestor Development (owner of the Levitz site) and Jacobson Family Holdings on a conceptual overall development plan for the Glendon Way Project. Regarding the Rosemead Inn Hotel, the Commission has the option to renovate/upgrade the property and contract with a firm to continue with the current operation. This would create an additional flow of cash for the City while the long term development plans for the site are finalized. Staff has solicited proposals from reputable company's specializing in hotel operations and received responses from Grand Inn, Inc. and Rosemead Inn Hotel Partners, LLC. Rosemead Community Development Commission Minutes ofAugust 26, 2008 Page 4 of 7 ® • Recommendation: That the Community Development Commission select Rosemead Inn Hotel Partners, LLC, as the operator for the hotel and direct staff to negotiate a finalized operating agreement for consideration. Commissioner Low made a motion, seconded by Vice-Chairman Nunez to select Rosemead Inn Hotel Partners, LLC, as the operator for the hotel and have staff negotiate a proposed agreement and have it be brought back to Council. Vote resulted in: Yes: Low, Nunez, Tran No: Clark, Taylor Abstain: None Absent: None Development Impact Fee Justification Study In 1987, the California Legislature adopted Assembly Bill 1600, or the Mitigation Fee Act, that established a uniform process for formulating, adopting, imposing, collecting, accounting for, and protesting developer impact fees. Impact fees are charges assessed by local governments against new development projects that attempt to recover the cost incurred by government in providing the public facilities required to serve the new development. Impact fees are only used to fund facilities, such as roads, schools, and parks, that are directly associated with the new development. They may be used to pay the proportionate share of the cost of public facilities that benefit the new development; however, impact fees cannot be used to correct existing deficiencies in pubic facilities. Given that the City is in the process of updating its General Plan, proposals were solicited for a Development Impact Fee Study in the interest of establishing a development impact fee program for streets and transportation, general government, law enforcement, libraries, parks, wastewater treatment, and public art in the City of Rosemead. In completion such a study, all projects and needs must be identified and a methodology developed with a nexus justifying the fees that are established in compliance with AB 1600. Recommendation: That the Community Development Commission authorize the City Manager to enter into a professional services agreement with Willdan Financial Services to provide a Development Impact Fee Study for the City of Rosemead, in accordance with the requirements of the Mitigation Fee Act (California Government Code Sections 66000 to 66025) in the amount of $50,860. Vice-Chairman Nunez made a motion, seconded by Commissioner Low to authorize the City Manager to enter into a professional service agreement with Willdan Financial Services in the amount of $50,860. Vote resulted in: Yes: Clark, Low, Nunez, Taylor, Tran No: None Abstain: None Rosemead Community Development Commission Minutes ofAugust 26, 2008 Page 5 (?f'7 • Absent: None Mayor Tran announced that this item would be discussed during the City Council meeting in conjunction with Item 5C of that meeting. C. Rosemead Park Trail Enhancement Project - Award of Contract At its July 22nd meeting, the City Council selected a trail design for the Rosemead Park Trail Project and authorized staff to advertise and solicit bids for the completion of a fitness trail and recreational enhancements at Rosemead Park. This project will include the addition of a jogging trail, recreational equipment, and a tai-chi exercise pad. On August 20, 2008, bids were received and reviewed for the project. Recommendation: That the Community Development Commission award a contract to the lowest responsive bidder, The Nazerian Group, and authorize the Chairman and the City Clerk to execute the contract. Mayor Tran recessed the meeting to Closed Session at 6:43 p.m. 5. CLOSED SESSION CONFERENCE WITH REAL PROPERTY NEGOTIATORS (GOVERNMENT CODE SECTION 54956.8) Property 8828 Glendon Way 8832 Glendon Way 8920 Glendon Way 3520 Ivar Avenue 3527 Ivar Avenue Negotiating Parties - Agency Property Owner M. Garcia R C & I Group City of Rosemead Thang Q. & Kathy T. Pham Fifteen SAC Self Storage Corp. Executive Director Assistant Executive Directors Under Negotiation - Price and terms of payment The Commission reconvened back from Closed Session at 7:01 p.m. Mayor Tran announced that on the matter of the Community Development Commission Closed Session the following action had been taken and noted that Commissioner Taylor had not been present during the closed session discussion: Vice-Chairman Nunez made a motion, seconded by Council Member Low to direct staff to enter into negotiations with a property owner. Vote resulted in: Yes: Clark, Low, Nunez, Tran No: None Abstain: None Absent: Taylor Rosemead Community Development Commission Minutes (`August 26, 2008 Page 6 of 7 • • Mayor Recessed the Community Development Commission meeting at 7:03 p.m. Mayor Reconvene the Community Development Commission meeting at 7:53 p.m. to discuss the Rosemead Park Trail Enhancement Project (Item 4C) concurrently with the City Council meeting. Chuck Lyons - submitted pictures to City Council for their consideration in regards to the park trail design. Barbara Murphy - stated she wanted to make clarifications to comments made by Council Member Clark and stated she did not fool anyone when she had residents sign a communication in favor of the Rosemead Park Trail Project. Vice-Chairman Nunez made a motion, seconded by Council Member Low to award a contract to the lowest responsive bidder, The Nazerian Group, and authorize the Chairman and the City Clerk to execute the contract. Vote resulted in: Yes: Low, Nunez, Tran No: Clark, Taylor Abstain: None Absent: None 6. ADJOURNMENT The meeting adjourned at 8:01 pm. The next Community Development Commission meeting will take place on September 9, 2008 at 6:00 pm. John Tran Chairman ATTEST: Gloria Molleda Commission Secretary Rosemead Community Development Commission Minutes o/August 26, 2008 Page 7 o 7 e • 1:4►y RICHARDS WATSON GERSHON NNW ATTORNEYS AT LAW -A PROFESSIONAL CORPORATION 355 South Grand Avenue, 4oth Floor, Los Angeles, California 900713101 Telephone 213.626.6484 Facsimile 213.626 0078 RICHARD RICHARDS (1916-19BB) August 26, 2000 GLENN R. WATSON (RETIRED) VIA PDF/EMAIL HARRY L. 6ERSHON (19-Z-mD7) EVE" L. DORSEY Al LLIAM L STRAURADEZ SZ Rosemead Community Development Commission A MI T E.ABBOTT GREGORY E P ICIC" S Rosemead City Hall H . ELLLLS ER OWNE ROC WILLIAM LL 8838 East Valley Boulevard NN QUI QU M. . BARROW CAROL W. LYNCH GREGORY M KUNERT Rosemead, California 91770 . THOMAS M, JIMBO RO B EST C. CECCON STEVEN E. KAUFMANN KEVI N N G G. . EN ENNIS Re: CDC Agenda for August 26, 2008 ROBIN D. HARRIS MI N (1) Item 3-F and (2) Item 4-A WURE C S. WIENER STEVEN WIENER STEVEN R ORR . B. TILDE. KIM KIM SpAL URA 0. S UM" HA'SER Dear Chair and Members of the Rosemead Community Development Commission: PETER M M. TH GREG" LAMES LMARARKMAKMAN CRAIGE 'T" TO T. PETRPIERCE We represent Fifteen SAC Self Storage Corp. and U-Haul Co. of California TERENCE R. BOLA "CAB °"D S N A (collectively "U-Haul") owners and operators of real property located at 3527 Ivar JANET E COLESO A""EM' FIAZ JIM G . ORAYSON Avenue, and longstanding property owners and business owners in the City of RDYAELARKE WILLIAM CURLEY III Rosemead. We submit this letter on their behalf and request that the letter be read MICHAEL ICHAEL F. YOSHIBA REGINA N.DANNER into the record at the Public Comments portion of the CDC meeting of August 26, PAULA GUTIER BFZ 6AEZA TEE TO U O C W RR GALLOWAY and copies of this letter to be included in the record for Item 3-F (Update on 2008 A. D IAN DIANA 8 PATRICK K. 80 BO BKO Ko , Status of Development Site at the Southwest Corner of Rosemead Boulevard and BILLY D. OUNSMORE AMY GREYSON DEBORAH R. HAKMAN Glendon Way) and Item 4-A, Rosemead Inn Hotel Operations). D. CRAIG FOX ALEXANDER ABBE SUSA "°S "AK DAVID M W s interested property owners within the footprint of the so-called Glendon Way WMAN Y R EIRIQUEZ DOLLY BOWMAN KIS. we have the following concerns regarding the recommendations before Project Area G.INDER KHALSA GINETTA L. GI°VINCO TRISHA ORTIZ , the CDC Commission: CANDICE K. LEE DAVID G. ALDER SON MELISSA M.CROTE MAR RRO U RO MARICEI 4 E UIN 1. Recital D of the May 14, 2008 ENA with Jacobsen Family Holdings, LLC Q G . Q SE A GEN M. STINNETr er understands that the Commission as not et undertaken the rovides: "Develo JENNIFER PETRESIS p p y STEYEM L. FLOWEX CHRISTOPHER L DIAZ Owner Participation Process for the Project and that Developer shall provide within MATTHEW E. COHEN DEBBIE Y.CND Y W 90 days of the execution of this agreement a more defined Project for the site to the E ERIN L. POWERS ToUFSSAINNT T 5, 5A EY A Commission may undertake its owner participation process as required by its WHI TNEYG. CDONA LB SERITA R. . BOTH A EBB LN Redevelopment Plan and California Redevelopment Law." The initial 90-day period VERONICA S. GUNDESSON DrDE NSEL expired on August 12, 2008, but U-Haul has not been provided any information, far MARK L. SAYRE WMKE WEAVER R less any "more defined Project " that would allow U-Haul, respond meaningfully NORMAN A. D"P°NT , with an Owner Partici ation ro osal for develo ment of an or all of the 4 5 M R. KARPIAK p p p y . p SRN FRANCISCO OFFICE proposed project site. TELEPHONE 415 421-8484 ORANGE COUNTY OFFICE TELEPHONE 714-990.0901 2. The recommendation to "extend" the Jacobsen ENA for an additional 90 days due to the "overall complexity of the project" is problematic. The amended Jacobsen ENA was executed on May 14, 2008, with a 90-day extension. This period • RICHARDS WATSON I GERSHON• ATTORNEYS AT LAW -A PROFESSi ON AL CORPORATION Rosemead Community Development Commission August 26, 2008 Page 2 expired on August 12, 2008. Therefore, there is at present no ENA in effect with Jacobsen and the recommendation to "extend" a non-existent ENA is inappropriate. 3. In addition, Agenda Item 3-F states that a 90-day "extension" is required "due to the overall complexity of the project." Yet, despite written requests to be provided with all information involving the Glendon Way project, U-Haul has been provided with no information about the project, and no information has been made available to explain the "overall complexity" or the need for additional extensions. 4. Moreover, on April 30, 2008, we requested email notice of the complete agenda packets for all agenda items pertaining to the U-Haul property and/or the Glendon Way Project, pursuant to Government Code § 54954. 1, which are required to be mailed "at the time the agenda is posted pursuant to Section 54954.2 and 54956 or upon distribution to all, or a majority of all, of the members of a legislative body, whichever occurs first." Yet, we have never received any agenda packets in advance of any meeting since our request, though many have included the Glendon Way project. And today, we received an email enclosing the agenda for today's meeting, long after it was presumably posted, allowing us minimal time to meaningfully respond and precluding us from appearing personally. 5. U-Haul is also concerned, and perplexed, that the CDC is considering "extending" the expired Jacobsen ENA for the reduced-size 4.5 project area, and yet at the same meeting, is proposing to engage a hotel operator to operate the Rosemead Inn property adjacent to U-Haul's property. If the Rosemead Inn property is effectively excluded from the project site, an "extension" of the expired Jacobsen ENA is nonsensical. Of greater concern, it appears that as more parcels are being eliminated from the proposed project (first the Levitz property and now the Rosemead Inn property), the CDC's focus is narrowly targeted at U-Haul's property. 6. As one of the owners of one of the remaining privately owned properties within the footprint of the proposed project referenced in the Jacobsen ENA, and a long time property owner in the City at this location, U-Haul is troubled by the CDC's continued failure to provide the affected property owners with a meaningful opportunity for owner participation in the redevelopment of the Glendon Way area. Owners have the right to know enough about what project is proposed for development in this area to state whether they might wish to develop that project, or to provide a plan for an alternate project which they believe can compete with the proposed project. However, no description of a proposed project has ever been provided to owners prior to the CDC entering into a series of ENAs for this area. None of the RICHARDS I WATSON I GERSHON• ATTORNEYS AT LAW -A PROFE5SIONAL CORPORATION Rosemead Community Development Commission August 26, 2008 Page 3 ENAs have resulted in a clear project description, and yet the Agency continues to extend these ENAs, modify the scope of the proposed site, reinstate expired ENAs, consult in closed session about acquiring the U-Haul property, and in effect tie up the area to the benefit of outside developer(s), and to the potential detriment of property owners who wish to retain and otherwise redevelop their property. Accordingly, U-Haul requests that the CDC not extend or reinstate the Jacobsen ENA at this time, that a clear and detailed description of the proposed project for the Glendon Way area be developed, and that owners be given an opportunity to respond to an owner participation solicitation that complies with the Agency's Owner Participation Rules. That includes a detailed description of the proposed project so that the owners can respond meaningfully, including by proposing alternate projects and showing the CDC why the alternate projects will more successfully achieve the CDC's redevelopment goals for the area than the proposed project. sideration of the foregoing. Cc: Fifteen Self Storage Corp U-Haul Co. of California • • Page 1 of I Gloria Molleda From: Saskia T. Asamura [sasamura@rwglaw.com] Sent: Tuesday, August 26, 2008 3:36 PM To: Gloria Molleda Cc: Ericka Hernandez Subject: Letter for today's CDC meeting Attachments: U-Haul- 8_26_08 letter to CDC (with STA_s signature).PDF Dear Ms. Molleda, This morning, I received the CDC agenda for tonite's meeting from Ms. Hernandez. Enclosed please find a letter that addresses two of the agenda items. We request that the letter be read to the CDC Board during the Public Comments section of the CDC meeting, and that copies of the letter be included with the packets for the Agenda Items 3-F and 4-A. Kindly confirm receipt and compliance with the above request. We will also fax a copy in case of technical issues with email. Thank you, Saskia Asamura Richards, Watson & Gershon 355 South Grand Avenue, 40th Floor Los Angeles, CA 90071 NOTICE: This communication may contain privileged or other confidential information. If you are not the intended recipient of this communication, or an employee or agent responsible for delivering this communication to the intended recipient, please advise the sender by reply email and immediately delete the message and any attachments without copying or disclosing the contents. Thank you. 9/4/2008