CDC - Item 2C - Minutes 07-17-07C
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MINUTES OF THE REGULAR MEETING
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
July 17, 2007
Chairman Tran called the regular meeting of the Rosemead Community
Development Commission to order at 5:02 p.m, in the conference room of City
Hall, 8838 E. Valley Boulevard, Rosemead, California. The pledge to the flag was
led by Commissioner Clark and Commissioner Taylor 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. Resolution No. 2007-13 Claims and Demands
Recommendation: Adopt Resolution No. 2007-13 for payment of
Commission expenditures in the amount of $22,360.50 demands
8146 through 8156.
B. Minutes
June 12, 2007 - Special Meeting
Vice-Chairman Nunez made a motion, with a second by Commissioner Low
to approve Resolution 2007-13 and the June 12, 2007 minutes with one minor
typo correction. Vote resulted:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain: None
Absent: None
June 26, 2007 - Regular Meeting;
Vice-Chairman Nunez made a motion, with a second by Commissioner Low
to approve the June 26, 2007 minutes. Vote resulted:
Yes: Low, Nunez, Taylor, Tran
No: None
Abstain: Clark
Absent: None
Community Development Commission Minutes 7/17/07
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C. Glendon Way Redevelopment Project
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 for 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 Reality,
and Primestor Development Inc. are the most qualified.
Recommendation: 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.
Commissioner Taylor clarified that no action was taken at the last Closed
Session on June 26, 2007 to deny the YK extension. Rather, the ENA was
allowed to lapse. Mr. Taylor requested the record reflect this.
Staff has been working with other development firms to potentially grant another
ENA. Interim Community Development Director Saeki and Interim Executive
Director Chi presented a summary regarding the three developers under.
consideration.
Commissioner Taylor was hesitant to award the ENA to Manarino Realty as that
firm recently requested an extension for their ENA at Temple City and Valley and
results have not been reported yet for that project.
Vice-Chairman Nunez made a motion to grant the ENA to the Primestor
Development with a second by Commissioner Clark for six months because
Primestor owns a big portion of the land already.
Commissioner Low asked what the benefit of land ownership was. Interim
Community Development Director Saeki explained the advantage.
Commissioner Low advocated Manarino Realty because of their ability to
leverage two sites.
Mr. Saeki conceded this is a benefit and pointed out each of the three firms has
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unique strengths and indicated it was up to the Commission to decide which firm
presents the best package.
Commissioner Taylor asked if developers are expecting a subsidy for the
demolition of the building as this will determine total project cost to the City.
Previous developer demands have included sales tax relief for 20 years, property
tax rebate for 20 years and'a $1.3 to $3 million subsidy on land purchase price.
A representative from Jacobsen Family Holdings replied that it would be difficult
to determine a subsidy request until tenants are determined to gauge costs. The
representative from Jacobsen advised the Commission to endorse Primestor.
The representative from Manarino Reality indicated it was difficult to pinpoint
specifics, but felt some type of economic assistance will be needed.
Vice-Chairman Nunez made a motion, with a second by Commissioner
Clark to grant the ENA to Primestor as they own the Levitz property already and
Mr. Saeki reported this is a major advantage for redevelopment efforts. Vote
resulted:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain: None
Absent: None
D. Community Development Commission Legal Counsel
On June 26, 2007, the Rosemead Community Development
Commission directed that a Request for Qualifications (RFQ) be
distributed by the City Attorney to solicit firms to provide legal
counsel services of land use, housing, and redevelopment related
functions. A total of five (5) firms offered responses to the RFQ by
the 5:00 p.m. submission deadline on July 16, 2007.
Recommendation: That the Community Development
Commission provide direction regarding the selection of legal
counsel to provide land use, housing, and redevelopment related
services.
Commissioner Low requested to meet with each firm prior to making a decision
Commissioners Clark and Taylor inquired about the need for a separate CDC
attorney.
Vice-Chairman Nunez replied that he made the motion to authorize a separate
CDC attorney to address potential conflicts when the Commission borrows
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money from the City and to provide a different point of view. Mr. Nunez pointed
out his motion was approved by a majority of the Commission.
Commissioner Taylor felt it has been legal, convenient and economic to have the
same attorney represent both the City and CDC. Mr. Taylor suggested the City
might double or triple legal expenses if a separate CDC attorney is chosen.
Chairman Tran pointed out, although they were from the same firm, Mr. Wallin
was the attorney for CDC and Mr. Kress was the attorney for the City in the past.
Commissioner Low reminded the Commission that approval for a separate CDC
attorney had already been given and the issue remaining was to determine the
best way to choose a firm.
Only one of the firms (Alvarez-Glassman) was in attendance at the meeting.
Chairman Tran and Vice-Chairman Nunez both reported they were ready to
choose an attorney without conducting interviews.
Commissioner Taylor asked what the other four firms were told, as they were not
at the meeting. Commission Attorney Garcia replied that no one was given notice
of an interview.
Commissioner Low made a motion, with a second by Commissioner Clark
to invite the five law firms for interviews before the Commission on August 14,
2007 at 4:30 pm. Each interview will be scheduled for 15 minutes and will be
conducted in open session. Vote resulted:
Yes: Clark, Low, Taylor
No: Nunez, Tran
Abstain: None
Absent: None
3. MATTERS FROM THE CHAIRMAN & COMMISSIONERS - None
4. MATTERS FROM THE EXECUTIVE DIRECTOR & STAFF
A. Closed Session
Conference with Real Property Negotiators (Government Code
Section 54956.8) Under Negotiation - Price and terms of payment
Pro ert8832 Glendon Way
Property Owner
R C & I Group
Negotiating Parties -
Executive Director
Deputy Executive Director
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The Commission recessed at 5:50 pm to convene the City Council Meeting. The
Community Development Commission reconvened at 7:05 to meet in closed
session. At 7:20 pm the Commission emerged from closed session.
Chairman Tran reported the Commission acted to authorize staff to enter
negotiations to purchase 8832 Glendon Way. Vote resulted:
Yes: Clark, Low, Nunez, Tran
No: Taylor
Abstain: None
Absent: None
5. ADJOURNMENT
The meeting adjourned at 7:21 pm. The meeting of July 24, 2007 has been
cancelled due to a lack of quorum while the Community Development
Commissioners attend the League of California Cities Mayors and
Councilmembers Executive Forum.
The next Community Development Commission meeting will take place on
August 14, 2007 at 4:30 pm.
Respectfully submitted: APPROVED:
Nina Castruita
COMMISSION SECRETARY
John Tran
CHAIRMAN
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