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CDC - 03-25-08• 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 o March 25, 2008 Page I o 5 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 of March 25, 2008 Page 2 o 5 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 a statement regarding repayment of loan. Rosemead Community Development Commission Minutes ofMarch 25, 2008 Page 3 of 5 • 0 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 5. ADJOURNMENT J 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: G d Gloria Molleda Commission Secretary Rosemead Community Development Commission Minutes of March 25, 2008 Page 5 of 5 • STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF ROSEMEAD ) s 1, Gloria Molleda, Commission Secretary for the City of Rosemead, do hereby certify that the minute's from March 25, 2008, were duly and regularly approved and adopted by the Rosemead Community Development on the 13th of May, 2008, by the following vote to wit: Yes: Clark, Low, Nunez, Taylor, Tran No: None Abstain:None Absent:None Gloria Molleda Commission Secretary