BURBANK REDEVELOPMENT AGENCY

Tuesday, July 12, 2005

AGENDA

CITY COUNCIL CHAMBER - 275 EAST OLIVE AVENUE

This facility is disabled accessible.  Auxiliary aids and services are available for individuals with speech, vision or hearing impairments (48 hour notice is required).  Please contact the ADA Coordinator at (818) 238-5021 voice or (818) 238-5035 TDD with questions or concerns.

5:00 P.M. CLOSED SESSION IN CITY HALL BASEMENT LUNCH ROOM/ CONFERENCE ROOM.

a.      Conference with Real Property Negotiator:

Pursuant to Govt. Code �54956.8

Agency Negotiator:  Assistant Executive Director/Susan M. Georgino.

Property:  Opportunity Site No. 5 � Bounded by Olive Avenue, First Street, Angeleno Avenue and the back or businesses along San Fernando Boulevard.

Parties With Whom Agency is Negotiating:  Alex Wong, Trammel Crow Residential, 949 South Coast Drive, Suite 400, Costa Mesa, California  92626.

Name of Contact Person:  Jennifer Mack, Redevelopment Project Manager.

Terms Under Negotiation:  Sale of properties.

b.      Conference with Real Property Negotiator:

Pursuant to Govt. Code �54956.8

Agency Negotiator:  Assistant Executive Director/Susan M. Georgino.

Property:  1902 Keeler Street.  Northeast corner of Keeler Street and Elliot Drive in the Peyton-Grismer Focus Neighborhood.

Parties With Whom Agency is Negotiating:  Burbank Housing Corporation, 10137 Riverside Drive, Suite 201, Toluca Lake, California  91602.

Name of Contact Person:  Doug Swoger.

Terms Under Negotiation:  Purchase of residential property for development of affordable housing.

When the Agency reconvenes in open session, the Agency may make any required disclosures regarding actions taken in Closed Session or adopt any appropriate resolutions concerning these matters.

6:30 P.M.

INVOCATION:          Reverend Tania Kleiman, Olive Branch Ministries.          

                                   The Courts have concluded that sectarian prayer as part of City Council meetings is not permitted under the

                                   Constitution.

FLAG SALUTE:

ROLL CALL:

JOINT MEETING WITH THE CITY COUNCIL:

1.      Burbank Housing Corporation Childcare Center (Cottages Childcare Demonstration Project):

In March 2004, the Burbank Housing Corporation (BHC) opened its childcare center at 2300 North Ontario Street in partnership with the Burbank Redevelopment Agency (Agency).  The center was developed due to the lack of quality and affordable childcare services in Burbank.

As part of the center�s development, the Agency required that 18 of the 92 childcare spaces (20 percent) have reduced tuition rates.  For example, market tuition rates for infants and toddlers are $231 per week, while the affordable spaces are $200 per week representing a 15 percent difference. The Agency has historically wanted to enhance or provide a greater level of affordability in the tuition rates, unfortunately, the economics of operating a childcare center has limited the Agency and the BHC from offering even more affordable tuition rates.

At the same time, it has also been recognized that demand for childcare comes from both residents of Burbank as well as employees of Burbank businesses.  Early in the planning stages of the center, staff had sought corporate sponsors to help pay for the cost of developing the childcare facility.  Unfortunately, there had not been any strong corporate interest at the time of development.  However, there have been some changing business dynamics within the City in the immediate vicinity of the center, particularly with the continued development of the Media Studios North office project. Just recently, WMC Mortgage relocated nearly 1,000 employees into the Media Studios North project and Yahoo! (Overture) plans to begin relocating up to 1,800 employees to Burbank in November 2005.  Staff now sees an opportunity for companies to provide corporate sponsorship that would in return provide greater discounts for the 18 affordable spaces and ultimately have ability to create more affordable spaces.

Over the last several months, staff has worked with the BHC, Knowledge Learning Centers (the operator of the facility) and the City�s Childcare Committee to allow for corporate sponsorship.  In developing a plan, staff had to balance the desire to make the spaces available to both Burbank residents and corporations, and be flexible enough to allow several corporations to become corporate sponsors.  The plan that has been developed would require corporations to pay a fee to obtain priority enrollment.  A portion of that fee would then be used to lower tuition rates for the 18 affordable spaces or spread the tuition reduction across a larger number of spaces.

However, there is already a significant waiting list at the center and staff felt that it would not be appropriate to allow corporations to move up on the existing waiting list. On the other hand, a corporation would not want to pay a fee and still not be able to get any of their employees� children into the center within a reasonable amount of time. Taking this into consideration, it is recommended that there would be a minimum two-year agreement with a first year fee of $5,000, which would then increase up to $10,000 in the second year.  The fee would be paid for a block of 12 spaces and corporations would not be able to reserve more than 48 of the 92 spaces in the center.  A portion of this fee would be used to pay for administrative costs with the rest for tuition reduction.  It is estimated this would reduce the tuition rates for the 18 affordable spaces on average by $20.83 per month (this represents a 10 to 14 percent reduction depending on the age group) for each block of 12 spaces.  If two blocks of 12 spaces are reserved, the discount on the 18 affordable spaces would be $41.66 (this represents a 20 to 28 percent reduction of tuition rates).  If three or four blocks of 12 spaces are reserved, it is recommended that the number of affordable spaces be increased from 18 spaces.  Thus, if three blocks of 12 spaces are reserved, the number of affordable spaces will increase by nine spaces for a total of 27 spaces.  Accordingly, if four blocks of 12 spaces are reserved, there would be 36 affordable spaces in the 92-space center. 

In addition, the affordable spaces must first be reserved for households whose income is at or below moderate income levels.  First priority for these lower rates would also be given to households in BHC or City/Agency-sponsored affordable housing projects.

In order to allow for the flexibility in allowing corporate sponsors to participate, it is recommended that the Agreement Pertaining to the Improvement, Use and Operation Agreement of Childcare Center be amended to change the existing priority enrollment system to allow for corporate sponsorship.

Recommendation:

Adoption of proposed Redevelopment Agency resolution entitled:

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING AND AUTHORIZING AN AMENDMENT TO THE AGREEMENT WITH THE BURBANK HOUSING CORPORATION PERTAINING TO THE IMPROVEMENTS, USE AND OPERATION OF THE CHILD CARE CENTER OF THE HOUSING AND CHILDCARE DEMONSTRATION PROJECT.

RECESS to conclude the City Council meeting.

ADJOURNMENT.