CDC - Item 4B - Rosemead Inn Purchasea
ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: OLIVER CHI, CITY MANAGER
DATE: JUNE 10, 2008
SUBJECT: ROSEMEAD INN PURCHASE
SUMMARY
On December 11, 2007, the City Council authorized staff to purchase the Rosemead Inn
located at 8832 Glendon Way for $4.4 million. At that time, the Agency did not have the
available funds to purchase the property. Therefore, the City Council approved a $4.4
million loan from the general fund to the Agency to pay for the property. It should be noted
that the property appraised for $4.5 million (Attachment A).
The motel is now in escrow and is scheduled to close on June 27, 2008. Over the last
several weeks, staff has been preparing for the close of escrow and in doing so, has been
researching other potential funding sources available to purchase the hotel. After much
vetting and research, it has been determined that there are non-restricted tax increment
dollars available in the CDC to fund the transaction. Therefore, a loan from the general
fund to the Agency is no longer required. In fact, the general fund will not need to contribute
a single dollar toward the purchase of the hotel.
Staff Recommendation
It is recommended that the Community Development Commission approve Resolution No.
2008-18 (Attachment B) appropriating $4.4 million of unrestricted tax increment dollars to
purchase the Rosemead Inn.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
City Manager
Attachment A - Property Appraisal
Attachment B - Resolution No. 2008-18
APPROVED FOR CITY COUNCIL AGENDA: •U
• s
RESOLUTION NO. 2008- 18
A RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
TO APPROPRIATE $4,400,000 FOR THE PURCHASE OF THE ROSEMEAD INN
WHEREAS, on December 11, 2007 in a closed session, the Rosemead Community
Development Commissioners approved the purchase of the Rosemead Inn for $4,400,000;
and
WHEREAS, funds to pay for the Rosemead Inn are available in unreserved,
undesignated fund balance; and
WHEREAS, the funds must be appropriated before they are expended.
NOW THEREFORE, $4,400,000 is appropriated in the Special Projects
organization, Property Acquisition object of the Capital Projects Fund (4215-8470-Fund45)
for the purchase of the Rosemead Inn.
The additional appropriation is made a part of the approved FY2007-08 budget as though
it were a part of the initial approved budget fully set forth and the Executive Director. is
authorized and empowered to expend such sum for the purpose of such account, but with
no expenditure by any office or department for any item within an account shall exceed the
amount budgeted therefore without prior written approval of the Executive Director.
PASSED, APPROVED and ADOPTED this 10`h day of June 2008.
Chairman
ATTEST:
Commission Secretary