BURBANK REDEVELOPMENT AGENCY
Tuesday, April 25, 2006
AGENDA
CITY COUNCIL CHAMBER - 275 EAST OLIVE AVENUE
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4:30 P.M. CLOSED SESSION IN CITY HALL BASEMENT LUNCH ROOM/ CONFERENCE ROOM.
Conference with Real Property Negotiator:
Pursuant to Govt. Code �54956.8
Agency Negotiator: Assistant Executive Director/Susan Georgino.
Property: Businesses along San Fernando Boulevard, Burbank, California.
Party With Whom Agency is Negotiating: Kimberly Paperin and Kevin Andrade, Trammel Crow Residential, 949 South Coast Drive, Suite 400, Costa Mesa, CA 92626.
Name of Contact Person: Jennifer Mack.
Terms Under Negotiation: Instruction to negotiator will concern price and terms of payment concerning the purchase of real property.
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:
The Courts have concluded that sectarian prayer as part of City
Council meetings is not permitted under the Constitution.
FLAG SALUTE:
ROLL CALL:
CONSENT CALENDAR: (Item 1)
The following items may be enacted by one motion. There will be no separate discussion on these items unless a Member so requests, in which event the item will be removed from the consent calendar and considered in its normal sequence on the agenda. A roll call vote is required for the consent calendar.
The purpose of this report is to provide information to the Burbank Redevelopment Agency (Agency) Board to consider a Loan Agreement to assist the Burbank Housing Corporation (BHC) to acquire residential property located at 1722 Elliot Drive (Property) for the purpose of providing affordable housing. On February 16, 2006, BHC entered into a purchase agreement with the owner of the Property. This property is visibly one of the most blighted properties in the Peyton-Grismer Focus Neighborhood. The site is approximately 7,050 square feet and is located on two adjacent parcels containing five dwelling units, including a two-bedroom house, three one-bedroom units and a studio unit.
The purchase agreement between BHC and the seller includes a purchase price of $650,000 and relocation assistance of $150,000 to assist the property owner and specific residents of the property that have been identified as members of the owner�s extended family. Escrow on the Property is scheduled to close on April 28, 2006, contingent upon Agency Board approval. BHC has requested Agency assistance and proposes to purchase the Property and demolish the existing housing units in preparation for a future affordable home ownership development proposed for the site.
Under the terms of the proposed Loan Agreement, the Agency will provide a no-interest, deferred repayment loan to BHC in the estimated amount of $844,000. The Agency loan will be secured by a first priority deed of trust on the Property.
BHC will maintain insurance on the Property and pay all Property Taxes. The estimated cost to secure and maintain the Property and pay the Property Taxes and insurance is $12,000 annually. Because the Property will generate no revenue to support these annual costs, Agency staff is proposing to provide an asset management fee to BHC to offset these costs. The proposed amount of the asset management fee is $60,000 payable to BHC in increments of $12,000 annually during the five-year term of the loan agreement. BHC will use the asset management fee to offset the costs incurred for maintaining and insuring the Property and paying Property Taxes.
Agency staff contracted with Overland, Pacific & Cutler, Inc. to prepare the 1722 Elliot Relocation Plan (Relocation Plan) and provide professional relocation assistance to the three households displaced from the Property. Displaced households will be eligible for relocation assistance pursuant to California Relocation Assistance Law and Real Property Acquisition Guidelines and in accordance with the Relocation Plan. The total, actual amount of relocation assistance to be provided for the three households will be determined upon relocation of the households. The relocation budget for the households is estimated to be $115,000.
The fiscal impact to the Agency is estimated at $1,019,000. This amount includes a loan to BHC to acquire and demolish the Property, payment of relocation costs for displaced households, and payment of an asset management fee to BHC as summarized below:
Agency Loan to BHC: $ 844,000
Relocation: $ 115,000
Asset Management Fee: $ 60,000
Total: $ 1,019,000
Recommendation:
Adoption of proposed resolutions entitled:
1. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING AN AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE AGENCY AND BURBANK HOUSING CORPORATION FOR 1722 ELLIOTT DRIVE.
2. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK AMENDING THE FISCAL YEAR 2005-2006 BUDGET BY APPROPRIATING $1,019,000 FOR THE ACQUISITION OF 1722 ELLIOTT DRIVE.
RECESS to conclude the City Council meeting.
ADJOURNMENT.