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 Legal Counsel � Anticipated Litigation:

Initiation of litigation pursuant to Govt. Code �54956.9(c)

Number of potential case(s):  1

 

b.      Conference with Real Property Negotiator:

Pursuant to Govt. Code �54956.8

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

Properties:  700 South San Fernando Boulevard, 206 East Cedar Avenue and 704-722 South San Fernando Boulevard (former Lance Site).

Parties With Whom Agency is Negotiating:  Greg and Linda Owens (206 East Cedar Avenue) and the Olson Company (700-722 South San Fernando Boulevard).

Agency Negotiator:  Jennifer Mack, Redevelopment Project Manager.

Terms Under Negotiation:  Purchase of real property located at 206 East Cedar Avenue (price and terms of payment); Sale of entire site located at 700-722 South San Fernando Boulevard and 206 East Cedar Avenue to the Olson Company (price and terms of payment).

 

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 Larry Stamper, Burbank First United Methodist Church.

                                               The Courts have concluded that sectarian prayer as part of City Council

                                                meetings is not permitted under the Constitution.

 

FLAG SALUTE:

 

ROLL CALL:

 

 

6:30 JOINT PUBLIC HEARING WITH THE CITY COUNCIL:

 

1.      DISPOSITION AND DEVELOPMENT AGREEMENT, PLANNED DEVELOPMENT AND RELATED DOCUMENTS FOR 700-722 SOUTH SAN FERNANDO BOULEVARD AND 206 EAST CEDAR AVENUE (FORMER LANCE SITE):

 

The purpose of this report is for the Redevelopment Agency (Agency) Board and the Council to consider the proposed sale of Agency property and development entitlements for the former Lance site project.  The specific land use applications for the 33-unit residential project include:  Planned Development No. 2004-3; Development Review No. 2004-3; Tentative Tract Map No. 60875; a Mitigated Negative Declaration; Development Agreement; and, the associated legal documents. The terms of the proposed sale of Agency-owned property are documented in the Disposition and Development Agreement (DDA). 

 

The former Lance site is located at 700-722 South San Fernando Boulevard and 206 East Cedar Avenue and encompasses the entire east side of South San Fernando Boulevard between Cedar Avenue and Elmwood Avenue within the South San Fernando Redevelopment Project Area.

 

The applicant is requesting approval to construct 33 for-sale residential units on the site, including 10 units that will be designated for moderate-income buyers.  The project includes 75 parking spaces.  The proposed tract map will subdivide the units for condominium purposes.

 

The purpose of the Planned Development process is to provide an alternate process to accommodate unique developments for residential, commercial, professional or other similar activities, including modified development standards which would create a desirable, functional and community environment under controlled conditions of a development plan. The proposed multi-family residential project meets the requirements of this process.  Specifically, the land use components that were considered for this project include: density; height; setbacks; parking; lot coverage; open space; landscaping; amenities; and, design.

 

The Planning Board, by a vote of five to zero, recommended approval of the proposed Planned Development project on May 10, 2004.  The Board discussed issues related to site circulation and project design including proposed setbacks, architecture and utility undergrounding.   

 

Since the proposed project requires the Agency to sell property to the Developer, a DDA has been negotiated to document the real estate transaction and to outline the roles and responsibilities of both the Agency and the Developer.  Salient provisions of the proposed DDA include the following:

 

DEVELOPER RESPONSIBILITIES

• The Developer must acquire the site for $1,012,000; 

• The Developer will make a deposit of five percent of the purchase price, or $50,600, at the opening of escrow, which shall be non-refundable (unless the Agency defaults or both parties mutually agree to terminate the transaction);

• The balance or $961,400 will be paid at the close of escrow on the site;

• If cost savings and/or sales revenue increases are achieved by the project, the Developer will make a participation payment to the Agency equal to 50 percent of the net profit achieved above the threshold identified in the Agreement;

• The Developer has the right to investigate the site�s soils and environmental conditions prior to accepting conveyance of the site.  If remediation is required, the Developer is required to fund the first $50,000 in costs;

• The Developer is required to submit evidence that sufficient equity capital and construction financing has been committed to fund 100 percent of the project costs;

• The Developer must prepare the Declaration of Covenants, Conditions and Restrictions for the project to which the City and Agency must be named as third party beneficiaries. This document also includes the following requirements:  occupancy standards for all units will allow two persons per bedroom, plus one additional person; all ongoing maintenance requirements, that meet the Agency�s defined standards, will be imposed; and, the homeowners or homeowners� association cannot modify the Covenant, Conditions and Restrictions without the City�s and Agency�s approval;

• The Developer will develop the site in accordance with the City�s Planned Development No. 2004-3;

• The Developer will complete the project in a timely manner as described in the Schedule of Performance; and,

• The Developer will sell 10 of the 1,200 square foot two-bedroom units to households earning less than 120 percent of the Los Angeles County median income (moderate-income level).

AGENCY RESPONSIBILITIES

• The Agency must convey the site to the Developer free of any buildings, structures and active utilities;

• All tenants shall have been relocated from the site in accordance with Federal, State and local laws;

• The site must be conveyed free and clear of tenancies, occupancies and possessory rights of any third parties;

• The Agency will assist with the acquisition of the remaining portion of the site. If negotiations to acquire the remaining parcel are unsuccessful, the Agency will schedule a hearing on a Resolution of Necessity to consider using eminent domain (but will not be obligated to adopt a Resolution of Necessity).  If the Agency does not adopt a Resolution of Necessity, and thereafter does not otherwise obtain possession of the privately-owned parcel in a timely manner and transfer same to the Developer at the scheduled close of escrow for the entire site, the Developer can terminate the DDA and the Agency will be required to return the Developer�s deposit to the Developer; and,

• The Agency is conveying the site in an �as is� condition.  However, if it is determined during escrow, that environmental remediation is required, the Developer will fund costs up to $50,000.  If the costs exceed $50,000, the Agency will fund up to an additional $50,000 in costs.  If potential remediation costs exceed a total of $100,000, the parties will meet and confer with the option to terminate the transaction.  However, once escrow has closed, the Developer must indemnify the Agency and City from any hazardous materials claims related to the site.

Pursuant to the California Community Development Law, both the DDA and 33433 Summary Report have been made available for public review immediately following the initial publication (June 12, 2004) of the public notice.

 

In addition to the land sales proceeds of $1.01 million, the South San Fernando Redevelopment Project Fund will realize Property Tax increment revenue.  Based on the overall project value, the Project Area will collect tax increment revenue through 2043 (the last year in which the Agency can collect tax increment revenue) totaling about $3.4 million in nominal terms or $1.2 million in present value terms (using a six percent discount rate).  These two revenue components yield a total anticipated Agency revenue projection of approximately $ 4.4 million in nominal terms and $2.2 million in present value terms.

 

When comparing the total Agency costs associated with the proposed project (approximately $2.05 million) to the anticipated Agency revenue, the net revenue to the Agency is projected at $2.4 million (in nominal terms) and $178,000 in present value terms (using a six percent discount rate).  The Agency will also potentially receive participation payments from the Developer and/or repayment of the silent second trust deeds placed on the affordable units.

 

Assuming the proposed Lance site project is approved on June 29, 2004, the Developer will proceed with design development drawings and construction plans.  The project is scheduled for completion in approximately 18 months or Fall 2006.

 

The proposed project will redevelop an underutilized and blighted block into a 33-unit for-sale residential development while creating a pedestrian-friendly environment along the San Fernando Boulevard corridor.  It will also enhance the economic viability of the area and provide support for existing businesses in the downtown.  The proposed land use and project design are consistent with the principles of the Burbank Center Plan.  Furthermore, the proposed project supports the goals of the South San Fernando Redevelopment Plan as well as provides additional residential units to the City�s affordable housing inventory.