9-27-01 - For ref
9-28-01 - Ref to Economic Development and Employment Committee
9-28-01 - File to Economic Development and Employment Committee Clerk
10-12-01 - For ref - Transmittal from the Chief Legislative Analyst (CLA) relative to various actions with respect to the proposed Santa Barbara Plaza Development within the Crenshaw Redevelopment Project Area.
10-26-01 - Council Action - Motion ADOPTED to APPROVE Economic Development and Employment Committee report to:
1. AUTHORIZE the Administrator, Community Redevelopment Agency (Agency), or designee, to negotiate and execute an amendment to the Exclusive Negotiation Agreement (ENA) with Capital Vision Equities/Regency Centers in order to extend the exclusive negotiating period an additional 180-days.
2. APPROVE the selection of Paragon Partners, LTD to provide acquisition and relocation services for the proposed Santa Barbara Plaza Development.
3. INSTRUCT the City Administrative Office (CAO), the Chief Legislative Analyst, and the Mayor's Office to participate in the exclusive negotiating process and the development of the Owner Participation Agreement (OPA) to ensure that all possible financing opportunities are explored and that appropriate safeguards and guarantees are established to minimize the risk to the City should any City General Fund revenues be identified as part of the project's gap financing proposal.
4. INSTRUCT the Agency to report back within 90-days to the Agency Board and Council relative to the status of the proposed Santa Barbara Plaza Development.
10-30-01 - File to Economic Development and Employment Committee Clerk OK
11-1-01 - File in files
5-10-02 - This days Council session - Motion - Ridley-Thomas Mover 2002 / Perry - In November 2000, the City Council approved the Community Redevelopment Agency's (CRA) Exclusive Negotiating Agreement with Capital Vision Equities for the development of Santa Barbara Plaza (aka Marlton Square, Council File 96-1463). The developer, in conjunction with Regency Centers and The Lee Group, has recently submitted a new site plan for staff review. The new proposal is a 22-acre mixed use project consisting of single family homes, senior housing, and a large retail component.
The development team has been negotiating intensively with staff from Community Redevelopment Agency, the Mayor's office, the Chief Legislative Analyst, the City Administrative Officer and the Council office over the past several months on the financing plan necessary to effectuate development of the proposed project. Inasmuch as the project is complicated and requires creative financing solutions, staff has requested authorization to enter into an agreement with a consultant to explore and develop alternative financing scenarios for the Marlton Square Project. Sufficient funds are available from the Community Redevelopment Agency's Special Revenue Fund to pay for this contract.
THEREFORE MOVE that the City Council authorize the Community Redevelopment Agency to negotiate and execute an agreement with Kosmont & Associates in an amount not to exceed $25,000 for financial services related to the Marlton Square Project, subject to the approval of the City Attorney as to form and legality.
5-10-02 - Ref to Economic Development and Employment Committee
5-10-02 - File to Economic Development and Employment Committee Clerk
6-5-02 - Council Action - Motion ADOPTED
6-11-02 - File to Economic Development and Employment Committee Clerk OK
6-11-02 - File in files
7-10-02 - For ref - Transmittal from Community Redevelopment Agency relative to loan commitment in the amount of $5.7 million to Capital Vision Equities for the Buckingham Place Senior Housing Project, Crenshaw Redevelopment Project.
7-12-02 - Ref to Housing and Community Development Committee
7-12-02 - File to Housing and Community Development Committee Clerk
7-12-02 - Council Action - Motion - Ridley-Thomas Mover 2002 / Garcetti - ADOPTED - MOVE that Item No. 2 (Council File 99-06997) on today's City Council Special Meeting with respect to a communication from the Community Redevelopment Agency and Resolution dated July 11, 2002 relative to a letter of loan commitment in the amount of $5.7 million to Capital Vision Equities for the Buckingham Place Senior Housing Project in the Crenshaw Redevelopment Project Area of Council District 8 BE ADOPTED as amended by the Housing and Community Development Committee, as follows:
Recommendation No. 5 is modified to read:
5. Request the Mayor to identify $5.6 million of HOME or other appropriate funds to replace the Bunker Hill Housing Trust Fund monies; the priority is to identify sources of revenue other than HOME funds for this purpose.
This matter was considered and approved by the Community Redevelopment Agency Board at its meeting of July 11, 2002, and the Housing and Community Development Committee at its meeting of July 12, 2002 - Resolution ADOPTED
7-18-02 - File in files
8-2-02 - For ref - Transmittal from the Community Redevelopment Agency 4253 relative to various actions relating to the proposed Marlton Square Mixed Use Development (Santa Barbara Plaza) - Amended Crenshaw Recovery Redevelopment Project Area.
8-2-02 - Ref to Economic Development and Employment and Housing and Community Development Committees
8-5-02 - File to Economic Development and Employment Committee Clerk
9-12-02 - For ref - Transmittal from Mayor relative to proposed redevelopment of Santa Barbara Plaza in Council District 8 into a mixed-use project called Marlton Square.
9-13-02 - Ref to Economic Development and Employment and Housing and Community Development Committee - to Committee Clerk
11-1-02 - For ref - Transmittal from the City Administrative Officer 0220-00013-1863 / Chief Legislative Analyst relative to proposed GAP financing for the Marlton Square Mixed Use Project.
11-8-02 - Ref to Economic Development and Employment, Housing and Community Development and Budget and Finance Committees - to Economic Development and Employment Committee Clerk
11-15-02 - Council Action - Economic Development and Employment Committee report ADOPTED *AS AMENDED (see attached motions), subject to the approval of the Mayor to:
1. APPROVE the earmarking of future Program Year Community Development Block Grant Funds, subject to availability, to assist in the financing of the Marlton Square Project, as follows:
a. An estimated $3.6 million in project gap financing (Program Year 2003-2004 - $1,750,000 and Program Year 2004-2005 - $1,850,000).
b. An estimated $19.8 million ($1.1 million annual for 18-years) to assist in debt service obligations on $15.1 million in Section 108 Loan Guarantee ($25.0 million in principal and interest) beginning in Program Year 2005-2006, subject to the approval of a Master Agreement by Council and the Mayor (Recommendation No. Seven below).
2. REAFFIRM the use of $9.0 million in City Section 108 loan authorization previously committed to the Santa Barbara Plaza project and the $2.0 million in companion Economic Development Initiative funds, subject to approval by the Department of Housing and Urban Development (HUD), the availability of funds, and execution of the Master Agreement.
3. AUTHORIZE the General Manager, Community Development Department, to submit an application to HUD for an additional $6.1 million in Section 108 Loan Guarantee Funds should the City fail to receive a Brownfields Economic Development Initiative award, subject to HUD approval and Section 108 authorization.
4. APPROVE the earmarking of 49 percent of future site specific tax revenues (business license fees, sales tax and utility user fees) to be generated by the project in the estimated amount of $5.2 million (over 18-years) as additional Section 108 debt service assistance, subject to a developer guarantee, backed by a replenishing letter of credit, to the satisfaction of the City, for the full amount of such funds generated on an annual basis (as set forth in Attachment Two of the joint City Administrative Officer and Chief Legislative Analyst report dated October 31, 2002 attached to the Council file); such guarantee to be incorporated in the Master Agreement.
5. APPROVE the earmarking of future HOME funds in the amount of $8.5 million, subject to availability of funds, as a source of financing for the Buckingham Place Senior Housing, subject to the negotiation and execution of a Master Agreement, as follows:
a. Land acquisition - $2,680,000.
b. Relocation - $220,000.
c. Buckingham Place Senior Apartments gap financing - $5,600,000.
6. APPROVE, in principle, the use of Mello-Roos bond financing as an additional source of project gap financing ($4.9 million in estimated net bond proceeds) subject to review by the City's Infrastructure Subcommittee and financial analysis prepared by the City Administrative Officer; all costs associated with such review and analysis to be borne by the developer.
7. INSTRUCT the Community Redevelopment Agency, with the assistance and cooperation of the City Attorney, Community Development Department, Los Angeles Housing Department (LAHD), City Administrative Officer, and Chief Legislative Analyst, to:
a. Negotiate and present to Council and Mayor for approval within 60-days, a Marlton Square Master Agreement incorporating various City financing obligations and the Community Redevelopment Agency's Owner Participation Agreement (OPA) with the Marlton Square development entity comprised of: Capital Vision Equity, LLC (CVE); Keyshawn Capital Development, LLC (KCD); Regency Reality Group (Regency); Lee Group and Buckingham Place LP (Buckingham Place), or related entities; subject to the following: (1) the review of the City Administrative Officer, Contractor Enforcement Section, for applicable contract provisions compliance; and, (2) the review of the City Attorney as to form and legality.
b. Direct that the Master Agreement shall include, but not be limited to, the Deal Points set forth in Attachment Two of the joint City Administrative Officer/Chief Legislative Analyst report dated October 31, 2002 (attached to the Council file).
8. ADOPT the accompanying Community Redevelopment Agency Resolution (Attachment C of the Community Redevelopment Agency report dated August 1, 2002 (attached to the Council file)) making the findings pursuant to Section 33445 of the California Redevelopment Law.
9. AMEND the Community Redevelopment Agency Fiscal Year (FY) 2002-03 Adopted Budget to:
a. Transfer $350,000 CR2140 (Santa Barbara Plaza) from additional
Fiscal Year 2001-2002 Special Revenue carryover.
b. Accept and utilize any funds deposited with the Community Redevelopment Agency from the developer of acquisition and relocation related expenses.
10. FIND that Council has reviewed the environmental records in this matter and that the Marlton Square Project will have no significant impact on the environment as indicated by the Mitigated Negative Declaration dated June 19, 2002.
11. FIND that the Marlton Square Project meets the National Objective of the Housing and Community Development Act and is necessary and appropriate to accomplish the City's economic development objectives.
12. REQUIRE the developer to apply for Los Angeles County/City of Industry Program and to the California Department of Housing and Community Development, if the State housing bond program is approved in November 2002 elections, and any other available funding source, in order to reduce the need for HOME funds.
13. AUTHORIZE the General Manager, Community Development Department, to prepare Controller instructions, with the City Administrative Officer's concurrence, including any technical adjustments relative to the intent of this report, and instruct the Controller to implement these instructions and expend funds upon proper demand of the General Manager, Community Development Department, or designee.
14. INSTRUCT the Administrator, Community Redevelopment Agency, or designee, with the assistance of the Community Development Department, Los Angeles Housing Department, City Administrative Officer, Chief Legislative Analyst, and City Attorney, to prepare a report detailing the feasibility of the City/Community Redevelopment Agency acquiring the subject site using public monies as identified in this report should the currently contemplated project prove to be unworkable.
15. AMEND Attachment Two of the joint City Administrative Officer and Chief Legislative Analyst report dated October 31, 2002 (attached to the Council file) as follows:
a. Direct that the terms and documents necessary to implement the Mello-Roos district and financing, including any requirements for separate guarantees, if required, be brought back to Council separately.
b. Authorize the release of funds when the following conditions are met:
1. Require that the developer will have acquired 80% of the site's properties and the Community Redevelopment Agency has determined that the developer and/or the Community Redevelopment Agency will be able to acquire the balance of the properties in a reasonable time frame or that a project can be constructed absent any properties that the Developer and/or the Community Redevelopment Agency cannot acquire in a reasonable time frame.
2. Require pre-lease commitments of at least 50 percent of the retail/commercial component from national credit tenants, plus receipt of Letters of Intent for an additional 20 percent of the retail/commercial component.
3. Exclude HOME funds from these conditions. HOME funds will be authorized for use on the acquisition, pre-development costs, and gap financing related to the senior housing project. As is standard in tax credit housing projects, the land acquisition funds will initially be secured on the property; upon commencement of construction, the lien will be subordinated to a construction loan and investor equity.
4. Amend the $40 million net worth requirement for the Letter of Credit guaranteeing the City's site specific revenues to read that the development entity's net worth requirement will be determined by the Community Development Department's standard underwriting criteria.
5. Authorize the Community Development Department to accept the Brownfields Economic Development Initiative grant and related Section 108 funds ($2.0 million of Brownfields Economic Development Initiative and $6.1 million of Section 108 loan funds), and approve its use to off-set the requirement that the developer come up with additional grant funds of $2.0 million.
6. Clarify Attachment Two, Section "Other Conditions Precedent to Execution of City Commitments," Deal Point G-7 to read: "...funding the construction loan; letter of commitment from the permanent financing lender..." (The Housing and Community Development and Budget and Finance Committees waived consideration of the above matter) - Resolution ADOPTED - Mitigated Negative Declaration ADOPTED - Findings ADOPTED.
11-15-02 - Council Action - *Amending Motion - Garcetti Mover 2002 / Ridley-Thomas - ADOPTED - At its meeting of November 4, 2002, the Economic Development and Employment Committee considered the proposed Marlton Square mixed-use development project. At that time, various amendments were offered to the recommendations contained in the joining City Administrative Officer / Chief Legislative Analyst report on this matter. There is a need to clarify the intent of the Committee with respect to those amendments as expressed in Recommendation No. 15 of the Committee report.
MOVE that Recommendation No. 15 of Item No. 7 on today's Council Calendar (Council File No. 01-2069) is substituted, as follows:
15. AMEND Attachment Two of the joint City Administrative Officer and Chief Legislative Analyst report dated October 31, 2002 (attached to the Council File) as follows:
1. Section "Mello-Roos Financing" paragraph C shall read: Direct that the terms and documents necessary to implement the Mello-Roos district and financing, including any requirements for separate guarantees, if required, be brought back to Council separately.
2. Section "other Conditions Precedent to Execution of City Commitments, paragraph G-3 shall read: Require that the developer will have acquired 80% of the site's properties and the Community Redevelopment Agency has determined that the developer and/or the Community Redevelopment Agency will be able to acquire the balance of the properties in a reasonable time frame or that a project can be constructed absent any properties that the Developer and/or the Community Redevelopment Agency cannot acquire in a reasonable time frame.
3. Section "Other Conditions Precedent to Execution of City Commitments," paragraph G-4 shall read: Require pre-lease commitments of at least 50 percent of the retail/commercial component from national credit tenants, plus receipt of Letters of Intent for an additional 20 percent of the retail/commercial component.
4. With respect to Section "Other Conditions Precedent to Execution of City Commitments," HOME funds are to be excluded from those conditions. HOME funds will be authorized for use on the acquisition, pre-development costs, and gap financing related to the senior housing project. As is standard in tax credit housing projects, the land acquisitions funds will initially be secured on the property; upon commencement of construction, the lien will be subordinated to a construction loan and investor equity.
5. Section "Other Conditions Precedent to Execution of City Commitments," paragraph G-6 is amended to reflect that the $40 million net worth requirement for the Letter of Credit guaranteeing the City's site specific revenues shall now require the development entity's net worth requirement be determined by Community Development Department's standard underwriting criteria.
6. Authorize the Community Development Department to accept the Brownfields Economic Development Initiative grant and related Section 108 funds ($2.0 million of Brownfields Economic Development Initiative and $6.1 million of Section 108 loan funds), and approve its use to off-set the requirement that the developer come up with additional grant funds of $2.0 million.
7. Section "Other Conditions Precedent to Execution of City Commitments," paragraph G-7 is modified to read: "...funding the construction loan; letter of commitment from the permanent financing lender..."
11-15-02 - Council Action - *Amending Motion - Ridley-Thomas Mover 2002 / Garcetti / Greuel - ADOPTED - Although staff has spent considerable time structuring the financing plan for Marlton Square project to protect the City's interest, it is prudent for the City Council to continue to find ways to alleviate the impact of the project on Community Development Block Grant funds.
THEREFORE MOVE that the Economic Development and Employment Committee report regarding Marlton Square, Item No. 7 on today's City Council agenda (Council File 01-2069) be amended as follows:
A. Add to Recommendation No. 1A: Direct the City Administrative Officer, as part of the City's annual budget process and Consolidated Plan process, to annually explore and make recommendations to the Mayor and Council to encumber all available sources of funds to reimburse the $3.6 million Community Development Block Grant grant. Potential sources of funds to be considered, but are not limited to: proceeds from the sale of surplus property, Urban Development Action Grants and related program income, tax increment revenues from the Marlton Square project that are greater than estimated, and reduction of Community Development Block Grant administrative funds.
B. Amend Recommendation No. 1B to designate that the debt service obligation from the Section 108 Loan Guarantee will come from the sources indicated below, in descending order of priority, but with the guarantee that if one is not available, the next source will be accessed:
*Tax increment revenues greater than predicted from the Marlton Square Project Area
*The City's share of profits greater than the developer's 12% return
*Increase the portion of Site Specific Tax Revenue (SSTR) from 49% to 100%. As detailed in the existing proposal, the developer will guarantee 49% of projected Site Specific Tax Revenue.
*Community Development Block Grant administrative funds (by restricting the current allocation for administrative costs from 20%, as viable, to no lower than 19%)
*Community Development Block Grant
11-15-02 - File to Mayor FORTHWITH
11-15-02 - Mayor's message concurred in action of November 15, 2002
11-18-02 - File to Calendar Clerk
11-19-02 - File to Economic Development and Employment Committee Clerk OK
11-21-02 - File in files
1-17-03 - For ref - Transmittal from Community Redevelopment Agency 4351 relative to various actions related to the acquisition and predevelopment loan agreement with Buckingham Place Senior Housing, L.P. for the Buckingham Place Senior Housing Project within the Marlton Square Development, Crenshaw Redevelopment Project.
1-21-03 - Ref to Housing and Community Development Committee
1-22-03 - File to Housing and Community Development Committee Clerk
1-23-03 - Transmittal from City Administrative Officer 0220-00013-1879 relative to various actions related to the Development of the Buckingham Place Senior Housing Project to be located within the proposed Marlton Square Project at Martin Luther King Boulevard, Marlton Avenue, Santa Rosalia Drive and Buckingham Road in the Crenshaw Redevelopment Project Area - To Housing and Community Development Committee Clerk
1-28-03 - Council Action - Housing and Community Development Committee report ADOPTED, subject to the approval of the Mayor, to:
1. ADOPT the accompanying RESOLUTION finding that an economically feasible alternative method of financing on substantially comparable terms without subordination of the Community Redevelopment Agency's Deed of Trust, covenants and use restrictions is not reasonably available, and AUTHORIZE the subordination of the Community Redevelopment Agency's Deed of Trust, covenants and use restrictions to the construction and permanent loans provided for the Project.
2. AUTHORIZE the Community Redevelopment Agency, Administrator, or designee, to negotiate and execute an Acquisition and Predevelopment Loan Agreement with Buckingham Place Senior Housing, L.P. (Developer) in an amount not to exceed $5.6 million for the Project, substantially in the form of Attachment A of the Community Redevelopment Agency report dated January 17, 2003 and attached to the Council file, and to take such other actions as may be necessary to carry out the Agreement, consistent with the following:
a. The federal regulations for Home Investment Partnership Program (HOME) funds.
b. The negotiated Master Agreement or Owner Participation Agreement (to be approved by the Community Redevelopment Agency Board, City Council and Mayor).
3. AUTHORIZE an increase of Community Redevelopment Agency contract authority for Fixtures and Equipment Appraisal Services from $100,000 to $600,000.
4. AMEND the Community Redevelopment Agency's Fiscal Year 2002-2003 Adopted Budget to transfer an additional $350,000 to CR2140 (Santa Barbara Plaza) from additional Fiscal Year 2002-2003 Special Revenue carryover - Resolution ADOPTED.
1-28-03 - File to Mayor FORTHWITH
1-28-03 - Mayor's message concurred in action of January 28, 2003
1-29-03 - File to Calendar Clerk
1-30-03 - File to Housing and Community Development Committee Clerk OK
1-31-03 - File in files
4-25-03 - For ref - Transmittal from Community Redevelopment Agency 4403 relative to various actions regarding the agreement for the Marlton Square mixed use development (Santa Barbara Plaza) - Amended Crenshaw Recovery Redevelopment Project Area in Council District 8.
4-25-03 - Ref to Housing and Community Development and Economic Development and Employment Committees
4-28-03 - File to Housing and Community Development Committee Clerk
6-25-03 - For ref - Transmittal from City Administrative Officer / Chief Legislative Analyst relative to proposed interim agreement for the Marlton Square mixed use project located in the Amended Crenshaw Recovery Redevelopment Project Area.
6-26-03 - Ref to Housing and Community Development and Economic Development Committees - to Housing and Community Development Committee Clerk
6-27-03 - Council Action - Economic Development and Employment Committee report ADOPTED, to subject to the approval of the Mayor to:
1. Find that:
a. The environmental records, including the Mitigated Negative Declaration, dated June 19, 2002, in this matter indicate that the Marlton Square Project will have no significant impact on the environment. As such, on or about May 29, 2003, the City was requested by the U.S. Department of Housing and Urban Development (HUD) to issue a Certificate of Compliance under Title I of the Housing and Community Development Act of 1974 for the Project. The Certificate of Compliance was received by the Community Development Department (CDD) on June 14, 2003.
b. The Marlton Square Project meets a National Objective of the Housing and Community Development Act and is necessary and appropriate to accomplish the City's economic development objectives.
2. AUTHORIZE the General Manager, Community Development Department, or designee, and the Administrator, Community Redevelopment Agency, or designee, to execute an Agreement (Attachment A of the Community Redevelopment Agency report, dated April 24, 2003, and attached to Council file 01-2069) and of the Mayor's Office of Economic Development (MOED) report, dated June 18, 2003, and attached to Council file 01-2069-S1, with Marlton Square Associates, LLC (Master Developer) for the development of the Marlton Square Project, subject to the approval of the City Attorney as to form and legality.
3. INSTRUCT the General Manager, Los Angeles Housing Department, or designee, to report back in 30 days relative to the use of certain Community Development Block Grant (CDBG) eligible monies allocated by the City's Consolidated Plan to the Los Angeles Housing Department Section 108 loan debt service line item and Community Redevelopment Agency Housing Trust Fund monies, including but not limited to: which Section 108 debt service amounts are eligible; the number years remaining in the loan term; the required term of affordability for the loans; and qualifying loans which are located in eligible Council Districts or Project Area, subject to the review and approval by the City Attorney.
4. REAFFIRM the allocation of an amount not to exceed $21.95 million ($15.2 Million of Section 108 funds; $2.0 Million of Economic Development Initiative Grant funds; $2.0 Million of Brownfields Economic Development Initiative Grant funds; $1.0 Million of the Mayor's Urban Development Action Grant funds; and, $1.75 Million of Community Development Block Grant funds) in financing the Retail/Commercial and Community facilities portions of the $123.2 million Marlton Square Project, subject to disbursement conditions contained within the subject Agreement.
5. AMEND the Agreement language to reflect that the Community Redevelopment Agency has 21 days, instead of 14 days, to approve the agreement or it's deemed approved.
6. INSTRUCT the Administrator, Community Redevelopment Agency, or designee, to report back to the Housing and Community Development (HCD) Committee within 30 days on the 25% housing trust fund set aside dollars (tax increment funds generated from the project) relative to a nexus for the swap of the Community Development Block Grant eligible monies allocated by the City's Consolidated Plan to the Los Angeles Housing Department Section 108 loan debt service line item.
7. INSTRUCT the Chief Legislative Analyst to report in 30 days relative to the status of the Marlton Square financing plan and ways in which to alleviate the project's financial impact upon Community Development Block Grant funds (according to (Amending) Motion (Ridley-Thomas - Garcetti - Greuel), adopted by Council on November 15, 2002 (Council file No. 01-2069)).
6-27-03 - Council Action - Motion ADOPTED to APPROVE communication recommendations from Housing and Community Development Committee, subject to the approval of the Mayor to:
1. Find that:
a. The environmental records, including the Mitigated Negative Declaration, dated June 19, 2002, in this matter indicate that the Marlton Square Project will have no significant impact on the environment. As such, on or about May 29, 2003, the City was requested by the U.S. Department of Housing and Urban Development (HUD) to issue a Certificate of Compliance under Title I of the Housing and Community Development Act of 1974 for the Project. The Certificate of Compliance was received by the Community Development Department on June 14, 2003.
b. The Marlton Square Project meets a National Objective of the Housing and Community Development Act and is necessary and appropriate to accomplish the City's economic development objectives.
2. AUTHORIZE the General Manager, Community Development Department, or designee, and the Administrator, Community Redevelopment Agency, or designee, to execute an Agreement (Attachment A of the Community Redevelopment Agency report, dated April 24, 2003 and attached to Council file 01-2069) and of the Mayor's Office of Economic Development (MOED) report, dated June 18, 2003, and attached to Council file 01-2069-S1, with Marlton Square Associates, LLC (Master Developer) for the development of the Marlton Square Project, subject to the approval of the City Attorney as to form and legality.
3. INSTRUCT the General Manager, Los Angeles Housing Department, or designee, to report back in 30 days relative to the use of certain Community Development Block Grant (CDBG) eligible monies allocated by the City's Consolidated Plan to the Los Angeles Housing Department Section 108 loan debt service line item and Community Redevelopment Agency Housing Trust Fund monies, including but not limited to: which Section 108 debt service amounts are eligible; the number years remaining in the loan term; the required term of affordability for the loans; and qualifying loans which are located in eligible Council Districts or Project Area, subject to the review and approval by the City Attorney.
4. REAFFIRM the allocation of an amount not to exceed $21.95 million ($15.2 Million of Section 108 funds; $2.0 Million of Economic Development Initiative Grant funds; $2.0 Million of Brownfields Economic Development Initiative Grant funds; $1.0 Million of the Mayor's Urban Development Action Grant funds; and, $1.75 Million of CDBG funds) in financing the Retail/Commercial and Community facilities portions of the $123.2 million Marlton Square Project, subject to disbursement conditions contained within the subject Agreement.
5. AMEND the Agreement language to reflect that the Community Redevelopment Agency has 21 days, instead of 14 days, to approve the agreement or it's deemed approved.
6. INSTRUCT the Administrator, Community Redevelopment Agency, or designee, to report back to the Housing and Community Development (HCD) Committee within 30 days on the 25% housing trust fund set aside dollars (tax increment funds generated from the project) relative to a nexus for the swap of the Community Development Block Grant (CDBG) eligible monies allocated by the City's Consolidated Plan to the Los Angeles Housing Department Section 108 loan debt service line item. (Economic Development and Employment Committee report to be submitted in Council).
6-27-03 - File to Mayor FORTHWITH
6-30-03 - Mayor's message concurred in Council Action of June 27, 2003
6-30-03 - File to Calendar Clerk
7-2-03 - File to Economic Development and Employment and Housing and Community Development Committee Clerks OK
7-7-03 - File in files
8-23-04 - For ref - Communication from the Community Redevelopment Agency relative to the implementation agreements for the retail, single family and condominium components of the Marlton Square mixed use development located in Santa Barbara Plaza - amended Crenshaw Recovery Redevelopment Project South Los Angeles Region.
8-24-04 - Ref to Housing, Community, and Economic Development and Budget and Finance Committees
8-24-04 - File to Housing, Community, and Economic Development Committee Clerk
9-22-04 - Council Action - CONTINUED TO October 6, 2004 and IN THE INTERIM REFERRED TO Housing, Community, and Economic Development Committee
9-22-04 - File to Housing, Community, and Economic Development Committee Clerk
10-6-04 - Council Action - CONTINUED TO October 20, 2004
10-20-04 - Council Action - CONTINUED TO October 22, 2004
10-20-04 - For ref - Communication from the City Administrative Officer 0220-00013-1959 / Chief Legislative Analyst relative to proposed implementation agreements for the Marlton Square Mixed Use Project.
10-22-04 - Ref to Housing, Community, and Economic Development and Budget and Finance Committees - to Housing, Community, and Economic Development Committee Clerk
10-22-04 - Council Action - Housing, Community, and Economic Development Committee report ADOPTED *AS AMENDED, subject to the approval of the Mayor to:
1. APPROVE the revised configuration of the Marlton Square Mixed-Use Project, which is bordered by Martin Luther King Jr. Boulevard on the north, Marlton Avenue on the east, Santa Rosalia Drive on the south, and Buckingham Road on the west, and located in the Amended Crenshaw Recovery Redevelopment Project Area, for a total development cost of $183.3 million, of which $155.9 million represents total development costs for retail, single family and condominium elements as set forth in the joint report of the City Administrative Officer (CAO) and Chief Legislative Analyst (CLA) dated October 15, 2004 (attached to the Council file), as amended to included the amended document entitled “Attachment Seven” to said report, including the reduction of the retail component from 140,000 square feet to 119,000 square feet and the addition of 150 units of market rate condominiums.
2. APPROVE the use of the aggregate amount of $22,875,000 in public funds to assist in the financing of the proposed project, as follows:
Funds Amount
Section 108 Loan Guarantee $ 15,175,000
Economic Development Initiative (EDI) 2,000,000
Brownfields Economic Development Initiative (BEDI) 2,000,000
Community Development Block Grant (CDBG) 2,700,000
Mayor’s Urban Development Action Grant (UDAG) 1,000,000
Total: $ 22,875,000
3. AUTHORIZE the Chief Executive Officer, Community Redevelopment Agency (Agency), and the General Manager, Community Development Department (CDD), or designees, subject to approval of the recommended modifications as set forth in the joint CAO-CLA report, approval of the City Attorney as to form and legality, and review by the Department of Public Works, Bureau of Contract Administration for contract compliance provisions, to negotiate and execute the following,
a. Single Family Implementation Agreement between the Agency; the City; Marlton Square Associates (MSA), LLC; and, Santa Rosalia Homes, LLC (Single Family Developer), for the proposed single family development.
b. Retail Implementation Agreement (RIA) between the Agency; the City; MSA, LLC; and, LNR Marlton Square Associates, LLC (Retail Developer), for the proposed retail development; subject to the modifications set forth in Recommendation No. 24 below.
c. Residential Condominium Implementation Agreement (RCIA) between the Agency; the City; MSA, LLC; and, The Lee Group, Inc. (Condominium Developer), for the proposed residential condominium development.
4. AUTHORIZE the General Manager, CDD, and the Chief Executive Officer, Agency, or designees, to negotiate and execute grant agreements for the use of $1,000,000 in UDAG funds as collateral and debt service on the Agency Fannie Mae Line of Credit (LOC), subject to the Agency providing to the City a guarantee on the use of such funds, and further subject to the approval of the City Attorney as to form and legality.
5. AUTHORIZE the General Manager, CDD, or designee, with the assistance and cooperation of the CAO and CLA, to negotiate and execute a Section 108 Loan Guarantee agreement with MSA, LLC, in the total amount of $15,175,000 for land acquisition of the Marlton Square parcels, subject to the prior approval of U.S. Department of Housing and Urban Development (HUD), and subject to the approval of the City Attorney as to form and legality.
6. AUTHORIZE the General Manager, CDD, or designee, to negotiate and execute a grant agreement(s) with MSA LLC, in an amount not to exceed $5,400,000 [BEDI-$700,000, EDI-$2,000,000 and Community Development Block Grant (CDBG) -$2,700,000] for land acquisition of the Marlton Square parcels, subject to the approval of the City Attorney as to form and legality.
7. AUTHORIZE the General Manager, CDD, to use $1,300,000 of the BEDI for interest payments relative the Section 108 Loan Guarantee repayments.
8. APPROVE, in principal, the use of future program year CDBG funds in an estimated amount of $19,563,832 (approximately $1.1 million annually over 17.5 years) to assist in debt service obligations relative to the $15.2 million Section 108 Loan Guarantee with the Master Developer, subject to the disbursement and guarantee conditions set forth in the RIA and the Section 108 Loan Agreement between the City and MSA, LLC.
9. AUTHORIZE the use of not more than 49 percent of future site specific tax revenues (SSTR) (business license fees, sales tax and utility user fees) to be generated by the Marlton Square Mixed-Use Project over 17.5 years as additional Section 108 Loan Guarantee debt service assistance, estimated at $5.2 million, subject to the disbursement and guarantee conditions set forth in the RIA and the Section 108 Loan Agreement between the City and MSA, LLC.
10. AUTHORIZE the City Controller to:
a. Change the name of Fund No. 47F from BEDI to CDD-EDI/BEDI Grants.
b. Establish new account W201 Marlton Square-EDI and appropriate $2,000,000 within Fund No. 47F CDD-EDI/BEDI Grants.
c. Establish new account W202 Marlton Square-BEDI and appropriate $2,000,000 with Fund No. 47F CDD-EDI/BEDI Grants.
d. Establish new account W201 Marlton Square Section 108 Loan and appropriate $15,175,000 within Fund No. 43F Section 108 Loan Guarantee Program.
e. Establish new account W202 Marlton Square-Fees and appropriate $10,000 within Fund No. 43F Section 108 Loan Guarantee Program.
f. Establish new account W203 Marlton Square-SSTR within Fund No. 43F Section 108 Loan and appropriate on an as needed basis as SSTR are received.
g. Transfer cash on an as needed basis from Fund #43F to Union Bank Accounts to allow CDD to reimburse HUD for principal and interest payments for the Section 108 Loan.
h. Establish new account W201 Marlton Square and appropriate $1,000,000 within Fund No. 356 UDAG Miscellaneous Revenue.
i. Transfer cash on an as-needed basis, in an amount not to exceed $1,000,000, from Fund #303 Industrial/Community Revolving Loan Account T340 Marlton Square to Fund No. 356 UDAG Miscellaneous Revenue.
j. Expend funds in amount not exceed $2,700,000 from accounts V249 Marlton Square ($1,750,000) and W249 Marlton Square ($950,000) within the Community Development Trust Fund #424.
k. Reallocate funds totaling $900,000 in the 30th Year Consolidated Plan from Marlton Square Project ID No. 29 to Handyworker Program Project ID No. 98, and instruct CDD to amend the 30th Year Consolidated Plan, as necessary, to implement this instruction, subject to the citizen participation process, as needed.
11. AUTHORIZE the General Manager, CDD, or designee, to prepare Controller instructions and/or make any technical adjustments that may be required and are consistent with this action, subject to the review of the City Administrative Officer (CAO), and REQUEST that the Controller implement these instructions.
12. *CONCUR with the Agency report dated August 19, 2004 (attached to the Council file) finding that the Addendum to Marlton Square Mixed-Use Development has been prepared in compliance with the California Environmental Quality Act (CEQA) and State and Agency CEQA Guidelines and certifying that the Addendum, which addresses a minor change in the project description of the Marlton Square Mixed Use Development, has been reviewed and considered along with the Marlton Square Mixed Use Development Initial Study/Mitigated Negative Declaration. *(Garcetti-Ludlow)
13. CONCUR in the Agency Board action of August 19, 2004, to adopt the Relocation Plan for the Single Family, Condominium, and Retail Development phases of the Marlton Square Mixed-Use Development.
14. AUTHORIZE the Chief Executive Officer, Agency or designee, to negotiate and execute a loan agreement with the Fannie Mae Corporation establishing a LOC financing as a means of securing an estimated $8 million bridge loan to be repaid through the use of property tax increment (TI) funds generated from the Marlton Square project site and project area Assembly Bill (AB) 1290 funds, as may be necessary, the use of said AB 1290 funds subject to the approval of the Council.
15. AUTHORIZE the Chief Executive Officer, Agency, or designee, in the event that the Agency is unable to establish or use a Fannie Mae LOC, to negotiate and execute a Promissory Note to the Master Developer pledging the TI Funds and, if necessary, the AB 1290 receipts generated by the proposed developments on the Marlton Square site as the source(s) of funds for the Developer to pay off any loan(s) secured by the Master Developer using such Promissory Note, the use of said AB 1290 funds subject to the approval of the Council.
16. INSTRUCT the Chief Executive Officer, Agency, or designee, to develop and implement an out-reach plan to the Crenshaw community relative to specific proposals for the proposed community facility to be built into the retail or condominium component and the identification of funds (TI Funds, Quimby fees, Arts Development fees or other sources) to fund its construction and to report back to the Agency Board and Council as appropriate.
17. CONCUR with Agency Board action of August 19, 2004, to approve residential uses on Regional Center (commercial) designated parcels for the construction of 150 condominium units and 140 single family homes pursuant to Section 5003.3 of the Redevelopment Plan for the Amended Crenshaw Redevelopment Project Area.
18. CONCUR with the Agency action of August 19, 2004, to approve the Marlton Square Master Plan, entitled “Attachment B” to the Agency report to Council dated August 19, 2004 for the Marlton Square mixed-use development, consisting of 140 single family detached housing units, 150 for-sale condominium residential units, and 119,000 square feet of retail space, as shown on the Marlton Square Master Plan.
19. CONCUR with the Agency action of August 19, 2004, to authorize the Chief Executive Officer, Agency, or designee, to:
a. Approve subsequent design drawings and construction documents, including Schematic Design Drawings, Design Development Drawings, and Final Construction Documents, in accordance with the Schedule of Performance and Scope of Development in the respective Implementation Agreements (IAs); subsequent submittals will be based on the Marlton Square Master Plan and will show a natural progression of the design process through the completed construction documents.
b. Recognize future receipt from the City of $1.0 million in UDAG funds to serve as partial collateral requirements in the establishment of the Fannie Mae LOC financing utility and enter into a cooperation agreement with the City to effectuate the transfer of funds, if necessary.
20. ADOPT the accompanying RESOLUTION, attached to the Agency report to Council August 19, 2004, making the findings required by Health and Safety Code Section 33433 as described in the 33433 Summary Report for the IAs.
21. REQUEST that the President, Board of Public Works, or designee, facilitate the street vacation proceedings for the frontage road along Martin Luther King Boulevard, between Buckingham Road and Marlton Street, relative to the development of the Marlton Square Mixed-Use Development project.
22. INSTRUCT the Chief Executive Officer, Agency, or designee, to report on an annual basis the property TI funds generated by the Marlton Square Mixed-Use Project and/or any tax allocation bond proceeds in excess of the amount necessary to retire the Fannie Mae LOC, and appropriate such monies on an annual basis to assist the City in reducing its obligations to the project.
23. INSTRUCT the Chief Executive Office, Agency, or designee, to report on a proposed First-Time Home-Buyer Program for residential components of the project, such program to be financed from project specific 25 percent housing set-aside funds.
24. APPROVE the following modifications to the IAs as appropriate:
a. The Guarantor of City and Agency financial assistance shall be identified by the Master Developer and underwritten by CDD, subject to the unanimous approval of the CAO, the CLA, and the City Attorney prior to the execution of the IA’s, the concurrence of all three entities is required, otherwise the matter is returned to Council.
b. Include in the RIA Guaranty Amount the following City resources: Section 108 Loan Guarantee - $15.2 million; CDBG - $2.7 million; EDI - $2.0 million; and, BEDI - $2.0 million; all as structured in the joint CAO-CLA report to the Mayor and Council dated October 15, 2004.
c. Modify Section 7.8 (j) with respect to the release of City resources (site control) to require the Agency to have received an Immediate Order of Possession from the court if Agency land acquisition assistance is needed by the Developer.
d. With respect to establishing the “stabilization date” for the retail component, the retail component will be deemed complete when the last Temporary Certificate of Occupancy is issued for the retail improvements shell components.
e. SSTR reporting requirements shall be in keeping with the requirements as set forth in the Findings section of the joint CAO-CLA report dated October 15, 2004.
f. Exhibit K of the RIA to be modified to reflect the projected SSTR as set forth in the Keyser Marston Associates, Inc., report to the Agency dated August 4, 2004.
25. REQUIRE the development entities, with respect to the creation of a Mello-Roos Community Facilities District, to provide the following:
a. Deposit with the City, funds to cover the City cost of reviewing the Developer’s request to establish a Mello-Roos Community Facilities District, estimated at $300,000 prior to execution of IAs.
b. Complete the Mello-Roos application process and receive approval to issue bonds or demonstrate its capacity to complete the proposed project with alternate resources should the Mello-Roos district not be established prior to the release of public funds.
26. AUTHORIZE the Planning Department and the CAO to negotiate and execute a Deposit and Reimbursement Agreement between the City and MSA, LLC, to recover all City and consultant costs associated with the development of a Mello-Roos financing program for the Marlton Square Project.
27. REQUEST that the City Attorney, with the assistance of the CAO, prepare an ordinance establishing a special fund for the purposes of receiving the fees pursuant to the Deposit and Reimbursement Agreement for the Marlton Square Project, paying consultants, and reimbursing the City for staff costs.
28. INSTRUCT the CAO, as part of the annual budget and consolidated plan processes, to explore and make recommendations to encumber all funds from available sources to reimburse the $3.6 million in CDBG funds; and, designate that sources of Section 108 debt repayment will come from the following sources in priority order: TI funds from the project if greater than anticipated, City share from any profit sharing, CDBG administrative funds, and CDBG funds.
29. DIRECT CDD to extend the project’s local hiring program to include residents of Council Districts Eight (8) and Ten (10) - Resolution ADOPTED - (The Budget and Finance Committee waived consideration of the above matter).
10-25-04 - File to Mayor FORTHWITH
11-3-04 - Mayor's message concurred in Council Action of October 22, 2004
11-3-04 - File to Calendar Clerk
11-5-04 - File to Housing, Community, and Economic Development Committee Clerk OK
11-5-04 - File in files