Loading...
RRA – Item 2 – Consideration of Proposal from GRC Associates, Inc. for Valley Blvd. Economic Development Strategy R R A , ROSEMEAD REDEVELOPMENT AGENCY 8838 VALLEY BLVD. ROSEMEAD.CA 911770•(818)288-667 •Telecopier 81 83079218 TO: HONORABLE CHAIRMAN AND MEMBERS ROSEMEAD REDEVELOPMENT AGENCY FROM: FRANK G. TRIPEPI,EXECUTIVE DIRECTOR DATE: AUGUST 20, 1997 RE: CONSIDERATION OF PROPOSAL FROM GRC ASSOCIATES, INC. FOR VALLEY BOULEVARD ECONOMIC DEVELOPMENT STRATEGY During the past year, the Rosemead Redevelopment Agency has begun to focus its attention, in conjunction with the Rosemead Chamber of Commerce, on the current business conditions along Valley Boulevard and discussing methods of addressing issues identified in that area. Additionally, the City has taken some steps to improve conditions by acting to begin reconstruction of the Boulevard and opening negotiations with Howard's Appliances to relocate that business to Rosemead. However, during that time, it has become apparent that these efforts would be more effective if they were part of a coordinated strategy for economic development on Valley Boulevard. Toward that end, staff has attached a proposal from GRC Associates, Inc. for consulting services related to formulating that type of strategy. The proposal outlines the work to be performed by GRC and the associated costs. The principal consultant would be Steve Copenhaver, whom the Council has worked with successfully in developing the Angelus Senior Housing project and the current senior housing project now in the planning stages on Garvey Boulevard. Mr. Copenhaver has an extensive economic development background and has worked successfully in many cities, including Lakewood,La Mirada, Azusa and La Verne. It is anticipated that the cost of completing the strategic plan would not exceed $30,000. A copy of the proposal from GRC Associates has been attached for the Agency's review. RECOMMENDATION: It is recommended that the Rosemead Redevelopment Agency retain GRC Associates to prepare an Economic Development Strategy for Valley Boulevard. AGENCY AGENDA AUG 261997 ITEM No. 22 Proposal for the Valley Boulevard Economic Development Strategy City of Rosemead August 1997 GK Table of Contents UNDERSTANDING OF THE ASSIGNMENT 1 SCOPE OF WORK 1 Phase 1 Property Owner and Tenant Survey and Data Collection 1 Phase 2 Protect Analysis 1 Phase 3 Final Report 2 Phase 4 Public Meetings 2 QUALIFICATIONS 3 EXPERIENCE 5 BUDGET BY TASK 10 CRC Approach and Scope of the Project CQc Proposal - Valley Boulevard Economic Development Strategy UNDERSTANDING OF THE ASSIGNMENT The purpose of the Valley Boulevard Economic Development Strategy is to develop an economic development strategy designed to define: a) the economic goals of the Valley Boulevard owners and tenants; b) the financial, market and program feasibility of implementing the property owner and tenant economic goals; c) the fiscal impacts of the programs on the City of Rosemead; c) the potential for recycling underutilized portions of Valley Boulevard; and d) to review the techniques available to the City to encourage the commercial and employment growth. SCOPE OF WORK PHASE 1 PROPERTY OWNER AND TENANT SURVEY AND DATA COL LFCTION A. Development survey topics and questions. B Survey each available property owner and tenant by visiting each Valley Boulevard site and tabulating all results for City review. B. Collect data and conduct on-site review of the existing land use pattern, ownership, lease rates, tax generation, land re-sale rates, access, parking and traffic patterns and surrounding land uses. C. Assess the locational advantages and disadvantages of the Valley Boulevard Corridor from a broad market perspective and generally compare it with portions of the corridor in adjacent cities. D. Interview Sheriff's Department, the Fire Projection District and the building and planning divisions for code infractions, crime problems, safety difficulties- perceived problems and opportunities. PHASE 2 PROJECT ANALYSIS A. Analyze the propensity of the parcels to recycle in the near, mid and long terms based on the quality of the existing development, vacancy rates in selected areas, sales per square foot, historic recycling patterns and the competitiveness of the existing design. B. Identify physical (such as parking) and economic obstacles to further development in the Valley Boulevard Corridor. C. Develop a financial model of alternate land use scenarios designed to identify the residual land value which can be supported by uses CPC Proposal - Valley Boulevard Economic Development Strategy of interest to the community such as a supermarket shopping center. D. Review comparable sales and lease rates in the greater Valley Boulevard Corridor. E. Review the market feasibility of desirable land use alternatives based on market, location, and site characteristics. F. Prepare alternate economic development strategies and approaches for incentives, eliminating obstacles and generating conditions required to help market and attract users to the area. G. Formulate recommendations based upon the market constraints and community goals. PHASE 3 FINAL REPORT Consultant will prepare a Draft Report and Final Report and meet with staff and City Council. Meetings within the scope of this proposal will be limited to a total of four without amending the scope. PHASE 4 PUBLIC MEETINGS Consultant will attend one public meeting before the City Council to publicly present the findings and conclusions contained in the Final Report. CRC 2 Qualifications and Experience CRC Proposal - Valley Boulevard Economic Development Strategy QUALIFICATIONS GRC Associates, Inc. has provided economic, redevelopment and housing consulting services to the clients listed below: • Arcadia - Hesperia • Pomona . Azusa • Indio • Redondo Beach • Bakersfield • Irwindale - Rosemead • Baldwin Park • La Mirada • San Fernando • Brea • La Verne • Santa Clarita • Buena Park . Laguna Hills • Stanton • Burbank - Lakewood • Union City • Claremont • Lawndale . Upland • City of Industry • Long Beach . Vacaville • Colton - Loma Linda • Vallejo • Commerce - Los Alamitos • Ventura Port Authority • Corona • Lynwood . Visalia • Cypress Montery Park . West Covina • Downey • Orange • Yorba Linda • Fullerton • Pasadena • Hawthorne • Perris Continuous experience in the field of redevelopment and urban planning has kept GRC abreast of the ever-changing law that affects both present and future projects. In addition, GRC has shown the ability to deal with a variety of redevelopment, environmental and adaptive re-use projects, i.e., residential, commercial and/or industrial uses. Equally impressive is GRCs ability to complete projects on time and on budget Evidence of all of these traits is confirmed by the large number of clients who have contracted with GRC for additional projects. GRC is continually involved in issues of economic development planning and implementation for it's clients, from economic development assessment and analysis, industry and occupational analysis, strategic planning, implementation programs including administration and budgets, and program monitoring. GRCs experience includes: CQC 3 Proposal - Valley Boulevard Economic Development Strategy • Community economic analysis, including industry and occupational profile, and opportunities/constraints for economic development by sector. • Economic development programs including goals and objectives, strategy determination, and program definition. • Economic development business planning including staffing, work program and budgets. • Preparation of State mandated administrative reports. • Preparation of housing compliance plans and comprehensive housing strategies • Negotiations with developers and other public entities • Property acquisition and relocation services • Developer and user solicitation • Land use analysis • Market and financial proforma analysis and feasibility analysis, financing analysis and fiscal consultant reports • Preparation of specific plans, general plan elements, environmental documents and entitlement documents • Negotiating and preparing development agreements involving land sales, property exchanges,ground leases, and participation • Preparation of grant and enterprise zone applications • Preparation of budgets and financial plans • Preparation of multi-year departmental work programs and cash flow analysis • Preparation of plan adoptions (including all preparation of required reports, public notices,public hearings). • Preparation and presentation of comprehensive agenda reports for committees, commissions, agencies, and councils. • Financial advisory services. GQC 4 Proposal - Valley Boulevard Economic Development Strategy EXPERIENCE I. Baldwin Park GRC is currently assisting the Baldwin Park Redevelopment Agency with an economic development strategy for the Freeway Corridor which includes the identification of specific economic/redevelopment objectives, review of the Agency's redevelopment program and preparation of a ten-year cash flow, preparation of a site and physical needs analysis, and an analysis of market demand for the study area properties. 2. Brea As the program director responsible for all economic development projects for a period of five years, GRC prepared the statutory specific plan, assisted in the preparation of the redevelopment plan, and acted as the project manager of a$100 million budget for the revitalization of the core housing and downtown commercial area, including the acquisition and redevelopment of Downtown Brea and the negotiation and preparation of dozens of development agreements for in-fill residential, commercial and office redevelopment projects. GRC also served as the agency's consultant on the expansion of the regional mall to include two additional department stores and a Class 'A" hotel and the development of several hundred thousand square feet of office and industrial development. As the program director, GRC attended staff and city council meetings, was responsible for hiring and managing city staff, and represented the agency in negotiations with the school district, county and other public agencies. 3. Buena Park GRC has assisted the Buena Park Redevelopment Agency on a wide range of redevelopment, housing and economic development programs including: the mall expansion; senior citizen housing projects; rental rehabilitation projects; Ford, Toyota, Mercedes, BMW and General Motors dealerships; a proposed CarMax location; redevelopment plan adoptions; and hotel projects in the entertainment corridor. 4. Claremont As the agency's overall economic development consultant for over eight years, GRC has been involved in the preparation and implementation of the agency's Village and Foothill Corridor redevelopment project areas, including providing property acquisition and relocation services, proforma and economic feasibility CPC s Proposal - Valley Boulevard Economic Development Strategy analysis, developer solicitation, negotiations and development agreement preparation for a high-quality freeway auto mall, a 155-unit "independent-living' affordable senior citizen complex, and the redevelopment of a neighborhood-level shopping center. A particular emphasis of GRC's work in Claremont has been redevelopment programs for the Village Area including transactions with shops, restaurants, preparation of a commercial rehabilitation program, and development of public parking lots. GRC also assists staff in the day-to-day operation of the agency, including preparing agenda materials, formulating agency work programs and budgets, assisting staff in complying with state and county financial requirements, and fills in for staff as required. 5. Colton GRC negotiated and prepared development agreements for the 35-acre Cooley Ranch recreational vehicle and sales and service center, including approximately 30 dealerships; Wal-Mart and K mart shopping centers on off-freeway sites in the project area; the renovation and expansion of Dieterich International truck sales facility on the I-10 Freeway; and, the rehabilitation of the 13-acre Mt. Vernon shopping center. 6. Corona GRC authored the auto mall and industrial park specific plan, and assisted staff in property acquisition, auto-dealer relocation and negotiation of development agreements. Additional work with Corona includes analyzing the economic feasibility of a freeway business park, an Alpha Beta shopping center, and a Wal- Mart shopping center and doing the fiscal analysis of various redevelopment financings. 7. Cypress Serving as the agency's overall redevelopment implementation consultant for several years, GRC negotiated an exchange of property with the Cypress Unified School District for the construction on a joint-venture basis of an affordable senior housing project. Related project activities include the acquisition of a five-acre site for the property exchange, relocation of all occupants from the site, preparation of the replacement housing plan, and conducting several workshops with the agency board to develop project parameters, analyze project economics at various densities and rental rates to determine the appropriate level of agency participation and develop the development and density bonus and operating agreements. Additional consulting services include having assisted in the negotiation and preparation of an Owner Participation Agreement for a 671-unit residential project involving the formation of a Mello-Roos District and a bond issue, and preparing a five-year GRC 6 Proposal - Valley Boulevard Economic Development Strategy agency financial plan, including an accounting of the cost and timing of public and private improvement projects and tax-increment projections after accounting for housing set-aside funds and pass-through agreements for all of the agency's project areas. 8. Downey GRC advised the City and performed the economic analysis for the expansion of Stonewood Mall including the enclosure of the shop space and the addition of a food court and Robinson-May Department Store. Additionally, GRC advised the Agency on several auto development transactions. .9. Hawaiian Gardens Serving as the consultant redevelopment project manager under the executive director, GRC assisted the director in negotiating the acquisition of surplus property from the ABC School District and surrounding property owners, relocated existing users, procured a developer for the site through a competitive request for proposal process and negotiated a disposition and development agreement resulting in the development of a 10-acre neighborhood shopping center. Additional tasks included complying with filings to the State, debt statements to the county and preparing annual reports, and serving as the acquisition and relocation agent for the assembly of an additional 15 acres of property which resulted in the development of a Home Club and five-acre shopping center. 10. Lakewood GRC supported the City of Lakewood in the economic development reuse alternatives for the 35-acre Long Beach Navy Hospital property located adjacent to Lakewood City boundaries. Activities included identification of marketable uses for the site, conceptual land use planning of each alternative, analysis of market feasibility of each alternative and the analysis of potential reuse options for existing facilities. GRC 7 Proposal - Valley Boulevard Economic Development Strategy 11. La Mirada GRC has assisted staff in analyzing development proformas, determining the economic feasibility and negotiating the redevelopment of the La Mirada Mall, including new anchor tenants, a housing component, a Mello-Roos District for the rejuvenation of the civic theatre and a public parking lot. Additionally, GRC assisted in the structuring of the business deal involving the development of over one-half mile of mixed-use freeway development, two hotel projects and three neighborhood-level shopping centers. 12. Long Beach GRC has served as project manager for the adoption of the Long Beach Corridor Redevelopment Plan; Harbor West Industrial Park Master Plan; implementation of several industrial projects within the West Long Beach Industrial project area; and, performed redevelopment administrative responsibilities in the absence of the Redevelopment Administrator. 13. Monrovia GRC prepared a study of appropriate uses for Myrtle Street together with an analysis of development standards to induce development in downtown. 14. Orange GRC advised the Agency on projects including an 80-acre Mills regional center, a Ford dealership, a brew-pub restaurant in the historic depot, expansion of Chapman University, a senior citizen project by Kaufman & Broad, a Car-Max ground lease, and a city-wide economic development strategy. 15. San Dimas Assisting the executive director for over ten years, GRC has been involved in the preparation and implementation of the agency's Creative Growth Redevelopment Project Area, including the development of a redevelopment strategy and the negotiation and preparation of development agreements for two large freeway- oriented shopping center developments, an industrial development, an ice skating rink and bowling center developments. 16. San Fernando GRC assisted the Agency for the implementation of Buick, Chevrolet and Dodge dealerships, a neighborhood supermarket center in downtown, an economic CRC 8 Proposal - Valley Boulevard Economic Development Strategy development strategy, a Home Depot/Price Savers center and several other economic development projects designed to increase revenue and employment. 17. Stanton GRC was involved in the creation and implementation of the Stanton Community Development Project, including proforma analysis and negotiation of development agreements for a Home Club shopping center development, a Price Savers, a community-level shopping center, and recently negotiated and prepared the development agreement for a 335-unit affordable senior citizen housing complex involving a$17 million multi-family housing revenue bond issue and an innovative use of density-bonus concessions to achieve a$1.5 million developer contribution toward development of the new civic center. GRC was recently assigned the task of developing a city-wide economic development strategy to identify and promote opportunities for projects, maximize development potential, develop incentive programs, and formulate project acquisition strategies and financing techniques. 18. Upland GRC assisted the City with economic development strategic planning for several areas of the City including Ninth Street and Foothill Boulevard. GRC has provided all acquisition and development contract negotiation services for three auto sales facilities, a 25-acre shopping center anchored by a Von's Pavilion and Home Depot, and a Wal-mart shopping center on Agency land. GRC also developed administrative guidelines, a work program for the agency, prepared tax- increment projections, and an analysis of bonding capacity for the agency. 19. Yorba Linda GRC is providing an Economic Development Strategy and Implementation Plan for the City's Redevelopment Agency. Activities include on-going implementation support to the Agency identifying potential users and developers for vacant commercial and industrial properties in the City, negotiating owner participation agreements between the Agency and developers, providing coordination between the Agency and brokers and evaluating developer proformas submitted to the Agency by potential users. Projects negotiated by GRC include a Petsmatr/Staples center, a 36-acre Home Depot/Best Buy promotional center, a Koo Koo Roos restaurant lease, a 125-unit senior citizen complex and a 50-unit family apartment complex. GRC 9 ' Budget CDC Proposal - Valley Boulevard Economic Development Strategy BUDGET BY PHASE Our proposed fee for the Scope of Work is as follows,with a not to exceed total for labor of$28,000. APPROXIMATE BUDGET Phase Hours Fee Phase 1 - Property Owner and Tenant Survey and Data Collection A. Design questions/topics 5 B. Train surveyor 6 C. Survey Property Owners 80 D. Filed work-land use, ownership,etc. 24 E. Market Area Assessment 12 F. Interview municipal representatives (3) 12 Subtotal $10,842 Phase 2 - Project Analysis A. Analyze propensity of parcels to recycle 8 B. Identify obstacles to development 6 C. Develop financial model ,residual land value 10 D. Review comparable sales and lease rates 20 E. Review the market feasibility of land uses 40 F. Develop economic development strategy 60 C. Formulate recommendation 16 Subtotal $12,480 Phase 3 - Draft Report- 36 Subtotal $2,808 Phase 4 - Meetings - Attendance at four (4) staff 20 meetings and one (1) City Council meeting. $1,560 Subtotal Total Hours at$78.00/hr. Average 355 $27,690 Out of pocket costs including printing, facsimile, demographic materials, market comps, etc., will be billed at cost plus 20% for handling. CQC 10 110; 'AO .1415