CDC - Item 2C - Glendon Way Redevelopment Project•
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ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
STAFF REPORT
TO: HONORABLE CHAIRMAN AND COMMISSION MEMBERS p
FROM: OLIVER CHI, INTERIM EXECUTIVE DIRECTOR
DATE: JULY 17, 2007
SUBJECT: GLENDON WAY REDEVELOPMENT PROJECT
SUMMARY
In December 2006, the Community Development Commission approved an Exclusive
Negotiating Agreement (ENA) with YK America International Group (YK), a San Gabriel
Valley based development company, to redevelop the 8+/- acre site at the southwest
corner of Rosemead Boulevard and Glendon Way. Because of the lack of progress by
YK over the last six (6) months, the Commission denied YK's request for an extension
to their ENA on June 26, 2007.
Over the past several weeks, staff has been talking with several larger developers who
have shown interest in developing this site. Based upon relevant experience, financial
capability, and an overall understanding of the complexities of a project of this
magnitude, staff believes that Jacobsen Family Holdings, Manarino Realty, and
Primestor Development Inc. are the most qualified.
Staff Recommendation
Staff recommends that the Commission select a developer for the Glendon Way project
and authorize the City Manager to enter into an ENA for a six (6) month period.
BACKGROUND
The southwest corner of Rosemead Boulevard and Glendon Way is one of many
prominent commercial/retail sites in the City because of its excellent freeway visibility
and demographic characteristics. The City has been approached by several major
commercial/retail developers over the past several months with development proposals
for this site. Because the City had entered into an ENA with YK, these development
proposals were not accepted.
Now that Commission is no longer committed to doing business with YK, staff has been
working with several of the larger commercial/retail development firms to solicit
development interest in this site.
APPROVED FOR CITY COUNCIL AGENDA: v
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Community Development Commission
July 17, 2007
Paqe 2 of 3
After researching many of these larger firms, it is staffs opinion that Jacobsen Family
Holdings, Manarino Realty, and Primestor Development Inc. are the most capable of
developing this site. These firms have submitted their qualifications to the City and
those documents have been attached to this staff report.
Jacobsen Family Holdings
Mr. Douglas Jacobsen (CEO of Jacobsen Holdings) and his development team have
over 40 years of commercial/retail development experience. Their projects range in
size from 3 to 30 acres and have included major nationally recognized retailers, many of
which have shown interest in the Glendon Way site. They include Lowe's, Home Depot,
Best Buy, Kohl's, and major supermarket users. The Jacobsen Team understands the
complexities of the redevelopment process and being able to assemble and develop a
project of this magnitude. Their submittal of qualifications has been attached to this
report (Attachment A).
Manarino Realty
Bob Manarino (President of Manarino Realty) is currently engaged with the Commission
for the redevelopment of the northeast corner of Temple City and Valley Boulevards.
As the Commission is aware, Mr. Manarino is a very capable developer with an
impressive track record and has made significant progress on the Temple City and
Valley Boulevards site. Mr. Manarino initially requested to be considered to develop the
Glendon Way site mainly because he would be able to market both the Temple City and
Glendon Way sites simultaneously to interested retailers. This could be an
advantageous position for the City as we would have over 15 total acres of developable
land to offer to retailers. Like Mr. Jacobsen, Mr. Manarino, over his many years in the
development field, has established relationships with many nationally recognized
retailers. A list of Mr. Manarino's pertinent development experience and references has
also been attached to this report (Attachment B).
Primestor Development Inc.
Primestor Development Inc. is a nationally recognized development company with
offices in Los Angeles and in Chicago. Primestor has been involved in the
development, management, and acquisition of several million square feet of
commercial/retail nationally. Locally, Primestor has developed commercial projects in
cities of Bell Gardens, North Hills, Pacoima, South El Monte, and Carson. The potential
advantage that Primestor has over other developers is that they currently own a major
parcel in the project site (the Levitz property). This would be one less parcel that the
developer would have to acquire which could lead to cost savings. Primestor's
qualifications are also attached to this report (Attachment C).
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Community Development Commission
July 17, 2007
Page 3 of 3
FINANCIAL REVIEW
As part of the Commission's standard ENA, the selected developer will be required to
provide the Commission with an initial deposit of $10,000. This will be drawn upon by
the Commission to pay actual and reasonable out-of-pocket costs incurred by the
Commission during the term of the Agreement. The costs could include fees for an
economic consultant, legal and appraisal service fees, any environmental work, etc. If
the fees associated with the project exceed the initial amount, the developer will be
required to provide additional funds to pay for the services.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
LEGAL REVIEW
This staff report and has been reviewed and approved by the City Attorney.
ia d b y:
eki
Interim Community Development Director
Attachment A-Jacobsen Family Holdings Qualifications
Attachment B - Manarino Realty Development and References
Attachment C - Primestor Statement of Qualifications
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4733 Westchester Drive
Woodland Hills, CA 91364
(310) 505.1954, cell
(818) 340-6961, phone
. (818) 340-1965, fax
bftp://wwvv.jacobsenholdings.com/
A limited Partnership affiliated with Jacobsen Family Holdings, Douglas C.
Jacobsen, CEO. Mr. Jacobsen was previously a principal of the well-known Western
U.S. development company, Realty Bancorp Equities. At RBE, Mr. Jacobsen was the
Partner in charge of every facet of development.
Projects Completed or Under Development include projects by Jacobsen Family
Holdings, Realty Bancorp Equities, and JFH affiliated partnerships:
Projects 1 thru 16 are owned & managed by Jacobsen Family Holdings
1) Duarte South Shopping Center; Lary Boy, IHOP and 12,025 Sq. Ft of Shops,
Under Construction for Completion April, 2005.
2) San Gabriel Gateway; Longs anchored Shopping Center; 15,000 Sq. Ft. Longs
Drugs and 13,000 Sq. Ft. of Shops (Fully Entitled; in Design)-2005 project.
3) El Monte/SWC Peck & Lower Azusa- 13,000 Sq. Ft. CVS Drug Store; 2005
4) Corona; Sav-on Drug Store (Albertson's); 16,689 square feet; Bank of America;
ATM Drive Through
5) Stockton; Safeway/Safeway Gas/Shops; 65,000 square foot shopping center
6) Stockton; Big Lots/Blockbuster, 33,600 square foot shopping center
7) Pasadena; Pacific Clinics; 22,600 square foot medical bldg - Single Tenant
8) Apple Valley; 16 Acres of Land to be developed as a Home Depot Center
9) Grand Terrace; 2 Acres of Land to be developed a Sav-on Drug Store and 3,000
Sq. Ft. shops; Fully Entitled, Construction start January 2005.
10) Grand Terrace; 18 acre Redevelopment project; Proposed Lowe's and Stater Bros.
11) Glendora; Hollywood Video, 4,836 square feet - Single Tenant (now Sold)
12) Agoura Hills; Teradyne (2 Story Office Bldg) - 103,000 square feet - Single
Tenant
13) Corona; Wendy's International Inc.; 3,184 square feet - Single Tenant Drive
Through
14) Modesto; Petco Pet Supplies; 17,700 square feet - Single Tenant
15) Norco; ARCO AM/PM Mini Mart - plus future development shops.
16) Redlands; Walgreens/Ranch Market; 80,000 Sq. Ft. shopping center
Projects 17 through 27 are owned by RBE Affiliated companies
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17) Glendora; Sav-on Drug Store; 26,884 square foot shopping center
18) Agoura; Line 6 Systems; 7 acre R&D park
19) Alhambra; Office Depot/Blockbuster; 31,006 square feet (Office Depot nrnv
Sold)
20) Pasadena, Sav-on Drug Store; 14,884 square feet - Single Tena nt
21) Redlands; Walgreens/Ranch Market/Howie's Pizza; 66,000 square foot shopping
center
22) Riverside; Sav-on Drug Store, 16,640 square feet - Single Tenant
23) Santa Fe Springs; Sav-on/McDonalds; 29,000 square foot shopping center.
24) Tujunga; Sav-on/McDonalds/IHOP; 44,000 square foot shopping center
25) Van Nuys; Los Angeles Unified School District; 7.5 Acre Bus Depot
26) Van Nuys; Hydra Warehousing; 11.5 Acre Industrial Park - Single Tenant
27) West Covina; Sav-on/Stater Bros/Starbucks; 106,000 square foot shopping center
PROJECTS DEVELOPED AND SOLD
28) Pasadena; Staples Office Supply Superstore; 24,027 square feet (now Sold)
29) Thousand Oaks; Conexant Systems; 16 acre R&D park (now Sold)
Project Details and Pictures Available on our web site - http://www.jacobsenholdings.com/
REFERENCES:
• Mike Reed, Albertson's/Sav-on Drugs Real Estate Department: 714-300-6303
• Brandon Farrell, Safeway's Real Estate Department: 925-467-2617
*.Norman Morales, Vineyard Bank - Chief Executive Officer: 909-987-0177
• Marchell Hilliard, Bank of America Vice President - Relationship Manager: 213-228-
5086
• Janine Peck, Loan Officer/Underwriter, Wells Fargo Private Mortgage Banking: 818-
889-3018
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DOUGLAS C. JACOBSEN
In 1998, Douglas Jacobsen and Dr. Dennis Jacobsen formed the real estate development
company; Jacobsen Family Holdings. Prior to JFH, Mr. Jacobsen was a principal of the
well-known Western U.S. development company, Realty Bancorp Equities. At RBE, Mr.
Jacobsen was the Partner in charge of every facet of development, from site acquisition to
anchor leasing, from entitlements to construction. Before forming Realty Bancorp
Equities, LLC in 1994, Douglas Jacobsen was President of the West Los Angeles
division of Lee & Associates, a national real estate brokerage firm. .
BRADLEY A. TALT
Principal of B.A.T. Ventures, formed in 2002 to develop and hold Commercial Retail
Properties. Before forming B.A.T. Ventures; Brad was a Commercial Real Estate Broker
First Vice President CB Richard Ellis, Los Angeles - Retail Division, from 1983 to 2002.
During his tenure with CB Richard Ellis, Brad Talt worked exclusively within the San
Gabriel Valley market; building up sales, leasing and development transactions in excess
of twenty million square feet and 500 Million dollars.
JEFFREY C. TIMBERS
• Prior to Joining JFH Retail Development partners; Jeff Timbers spent the last 20+ years
as a Real Estate Executive in Souther California with several high profile retail
companies, with extensive development experience, including 1995-2003,
Albertson's/Sav-on Drug; 1991-1995, Pic'N'Save Stores; 1987-1991, Thrifty Drug Stores
and 1983-1987, Payless Shoe Stores. Prior to that, Jeff spent 10 years in various Finance
positions with May Department Stores.
•
Pertinent Developments and References
Westminster, CA
Westminster Center
SEC Golden West and Westminster, 500,000sf- $50M Development Cost
Home Depot, Albertsons, Savon, Edwards Theater 10 Plex.
This was a redevelopment of a blighted 50-acre former shopping center site in
partnership with the Westminster Redevelopment Agency.
Reference: Phil Anthony
Consultant
714.454.2003
Mark E. Briggs
Director of Public Finance
Cherokee Investment Partners, LLC
505 N. Tustin Avenue, Suite 115
Santa Ana, CA 92705
P: 714.550.0390
Long Beach, CA
Los Altos MarketCenter
SWC Bellflower Blvd., and steams, 500,000sf - $50M Development Cost
Sears, Bristol Farm Market, Borders Book and Music, Circuit City, CompUSA.
This was a redevelopment of a blighted 20-acre former shopping center site in
partnership with the Long Beach Redevelopment Agency.
Reference: Barbara Kaiser
City of Long Beach
333 West ocean Blvd, Third Floor
Long Beach, CA 92802
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S I OS lrvinr irnlcr [~r tiuik I 1 101rvinr, CA 121;18 pltonc 91`.1.7-18.7801 fxN `.1.19.748.7807 bnbm:matinn'Frm;uuu'inorcall}crom
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San Jose, CA
San Jose MarketCenter
SWC Coleman Avenue and Taylor Street, 500,000sf - $100M Development Cost
Target, Marshalls, Cost Plus, Michaels, PetSmart, Office Depot, Trader Joe's.
This was a redevelopment of a blighted former UPRR railyard turned brownfield site in
partnership with the San Jose Redevelopment Agency.
Reference: Harry Mavrogenes
Executive Director
City of San Jose-Redevelopment Agency
200 East Santa Clara Street,
Tower 14th Floor
San Jose, CA 95113
408.795.1888
harry.mavrogenes@sanioseca.gov
Kelly Kline
• Downtown Manager
City of San Jose Redevelopment Agency
200 East Santa Clara Street
Tower 14th Floor
San Jose, CA 95113
408.795.1813
kelly.klinc@sanjoseca.gov
Nanci Klein
Corporate Outreach Manager
City of San Jose
Office of Economic Development
200 East Santa Clara Street
San Jose, CA 95113-1905
408.535.8184
nanci.klein@sanjoseca.gov
Mayor Ron Gonzales
City of San Jose
200 E. Santa Clara Street
Tower 18th Floor
San Jose, CA 95113
408. 535.4800
• ron.gonzales@sanjoseca.gov
Page 2 of 3
Patinmi nev and RetcTmces
• Other References:
Gary Glick
Cox. Castle & Nicholson, LLC
2049 Century Park East
Twenty-Eighth Floor, Suite 2800
Los Angeles, CA 90067
310.2842256
gglick@coxcastle.com
Mike Cohn
Managing Director
Faison & Associates
One Concourse Parkway, Suite 180
Atlanta, GA 30328
770.352.0203
Mike.cohn@faison.com
Charles Miller
Prudential Real Estate Investors
• 770.993.7348
charemil@bellsouth.net
Keith Eyrich
President
The Irvine Company
100 Innovation Drive
Irvine, CA 92617
949.720.2306
keyrich@irvinecompany. com
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Page 3 of 3
Richard Ziman
Ziman, Anderson UCLA School of
Real Estate and Chairman
Arden Realty
11601 Wilshire Blvd, 4th Street
Los Angeles, CA 90025
310.966.2601
rziman@ardenrealty. com
Victor Coleman ,
Managing Partner
HudsonCapital LLC
11601 Wilshire Boulevard, Suite 1600
Los Angeles, CA 90025
310.966.2666
victor@hudsonllc.com
John Long
Chairman & President
The Richard S. Ziman Center for Real
Estate and Highridge Partners
400 Continental Boulevard,Suite 160
El Segundo, CA 90245
310.648.7600
jlong@highridgepartners.com
Jack Mahoney
President
Summit Commercial
100 N. Sepulveda Blvd., Suite 1210
El Segundo, CA 90245
310.648.7500
JMahoney@scprop.net
Pminrnt Dev and acfe cncm
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174
PRIMESTOR DEVELOPMENT, INC.
Los Angeles Office
Chicago Office
228 South Beverly Drive
120 North Lo Salle ti 1210
Beverly Hills, CA 90212
Chicago, IL 60602
P: 1310) 652-1177
P: (312) 345-4700
F: (310) 652-3165
F: (312) 345-4701
The Vision
t'
Driven by a need to revitalize urban areas, Primestor was founded to
build community shopping centers in areas overlooked by other
developers. Primestor's track record of detailed architecture, highly
desirable tenants, generous on-site amenities and extensive
community outreach, has made the Company a leader in the
shopping center industry.
Primestor develops, manages, leases and constructs groundbreaking
urban projects in cities throughout the country. In partnership with
community stakeholders, Primestor's projects become regional and
local gathering spaces for the neighborhoods they serve.
Primestor Development Inc. was established in March of 1999 to
become the administrative and development arm of Primestor
Properties, a twenty (20) year family-owned business. Primestor
Development Inc. and its employees run day-to-day activities for
assets under management, development and construction.
The History
Primestor Development Inc. has its roots embedded in the retail sector
since its original formation. Through development, rehabilitation,
acquisition, leasing and management, the partners and employees
have acquired on extensive amount of experience in all aspects of
the real estate industry with an emphasis in the urban markets and
Hispanic community.
Primestor has been involved in the development, management and
acquisition of several million square feet, and currently manages in
excess of 1,270,000 net rentable square feel and is developing
approximately 1,800,000 net rentable square feet on over 6,000,000
square feel of land. The company has a diverse real estate portfolio;
including residential units, office buildings, community retail centers,
industrial properties, and open land.
Primestor's deep understanding of minority markets has been
recognized through various awards, most recently the Lalino,Business
Association's 2002 Business of the Year Award and the City 'of"Los
Angeles' Minority Construction Firm of the Year Award for 2005.
Primestor has positioned itself as an important source and leader of
real estate for the retail sector in said marketplace.
Primestor believes that in order to have a successful development, it is
always best to include the input of the Community. We focus on
working closely with redevelopment agencies, business improvement
districts, neighborhood groups, community leaders and local
municipalities. By doing outreach, we can ensure that we will have a
project that the Community will embrace and be a part of. The
Primestor Development Team will consist of the following staff
members:
ARTURO SNEIDER, CLS, PARTNER
Mr. Sneider is a partner of Primestor Development, Inc. Mr. Sneider's
primary responsibilities include acquisitions, project conceptual
design, financing, and corporate management. With a strong focus
in largely underserved urban communities and under his direction,
Primestor's diverse portfolio has maintained an approximate 95%
occupancy rate in approximately eighty projects. He was nominated
as Entrepreneur of the year in 1997 by Hispanic Business Magazine
and has had extensive written and televised press about him and his
work. As the winner of the Latin Business Association's "2000 Business
of the Year Award", Primestor has consistently been on the Hispanic
Business 500 list as well as on the 2005 and 2006 "100 Fastest Growing
Companies" List. Primestor is currently working on approximately 1.8
million square feet of development in diverse Latino markets and
presently owns and manages a portfolio well in excess of 350 million
dollars.
Mr. Sneider was a founding member of the Downtown Property
Owner's Association, the Wilshire Center Business Improvement District
and the Lincoln Heights Business Improvement District. He has served
as an advisor to the City of Los Angeles' Economic Development
Department program and is currently working on a major
revitalization project with the City of Los Angeles. He is a sought after
speaker and has recently been a panelist at Urban Land Institute.
International Council of Shopping Centers, the Association of
Corporate Real Estate Executives and the California Association for
Local Economic Development (CALED).
LEANDRO TYBERG, PARTNER
Mr. Tyberg, a partner of Primestor Development Inc, is responsible for
all execution-related duties such as feasibility, design, plan creation,
and construction of Primestor's assets. Mr. Tyberg has been
responsible for the successful construction of over 200 million dollars in
assets and is currently managing the development and construction
of 350 million dollars in projects.
Prior to joining Primestor in 1993, Mr. Tyberg was a student at Boston
University, Lorenzo de' Medici College in Florence, Italy, and the
American International School of Florence, where he graduated with
honors. Mr. Tyberg serves on the Board of Directors for the Southeast
Rio Vista Family Y.M.C.A., and the Valley Economic Development
Corporation.
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GENE DETCHEMENDY, PARTNER
Mr. Deichemendy's, a partner of Primestor Development Inc., is
responsible for leasing management and its related marketing and
design. Before joining Primestor in 2000. Mr. Detchemendy served as
Vice President of Development of Lucy's Loundrymort, Inc. where he
created and oversaw all real estate and construction matters of the
start-up chain in the course of its 32-store rollout. He also served as
National Director of Real Estate for Chief Auto Parts (purchased by
AutoZone) where he headed up the national expansion of the 580-
store chain. After the Los Angeles civil unrest in 1992, Mr.
Detchemendy, in conjunction with Rebuild LA, spearheaded the
reconstruction of Chief Auto Paris' looted and fire damaged stores
and then opened 23 new units in inner-city areas of Los Angeles, the
largest commitment of any national retailer.
Mr. Detchemendy is a long time member of the International Council
of Shopping Centers and is the immediate past President of the
Association of Corporate Real Estate Executives. He is a graduate of
California State University, Northridge and is President of the CSU
Northridge Alumni Association Board of Directors. He also serves as a
member of the CSUN Foundation Board of Directors and as an advisor
to the University's President on NCAA Athletics.
VANESSA DELGADO, DIRECTOR OF DEVELOPMENT (WEST COAST)
Ms. Delgado is responsible for managing Primestor West Coast
projects through the pre-development cycle, community and
government relations and marketing. Prior to joining Primestor, Ms.
Delgado consulted for a number of public and private clients,
including the Community Redevelopment Agency of Los Angeles.
She also worked in redevelopment for the cities of Anaheim, Downey,
and Pico Rivera. Ms. Delgado received her undergraduate
education at Stanford University and completed a Masters of Public
Administration at the University of Southern California (USC). She
received additional training in Real Estate Finance and Development
at UCLA and through the Ross Program at the Lusk Center at USC.
ERIC SALCIDO, DIRECTOR OF DEVELOPMENT (MIDWEST)
Mr. Salcido is the Director of Development of the Midwest Region. As
head of the Chicago office, Mr. Salcido currently oversees the
development of two 40-acre sites with over 1 million SF of new retail
and residential space. Prior to joining Primestor, he was with Wells
Fargo where he underwrote over $500 million in construction
loans. Having earned an MBA from UCLA's Anderson School and
a Bachelors of Arts in Architecture from UC Berkeley, Mr. Salcido
contributes to Primestor an understanding of the design and
construction process. Mr. Salcido is active in the community, serving
on the board of the UC Berkeley Latino Alumni Club, and as a
member of ULI and of ICSC.
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