NOTICE. URBAN COMMUNITY DEVELOPMENT COMMISSION AGENDA Tuesday, February 15, :30 PM WORKSHOP(S) HEARING(S) OPENING

Transcription

1 -1- Tuesday, February 15, 2011 NOTICE The Urban Community Development Commission (UCDC) was established by Ordinance No. 1,479, adopted on July 15, The Commission functions as the governing body for the Community Redevelopment Agency (CRA) and the Local Housing Authority (LHA) and exercises the power, authority, jurisdiction and functions of redevelopment agencies, housing authorities and federal surplus property authorities granted under the Marks Foran Residential Rehabilitation Act to charter cities. URBAN COMMUNITY DEVELOPMENT COMMISSION AGENDA Tuesday, February 15, :30 PM WORKSHOP(S) HEARING(S) OPENING ROLL CALL PUBLIC COMMENTS ON AGENDA AND NON-AGENDA ITEMS APPROVAL OF MINUTES EXECUTIVE SECRETARY'S REPORT 1. FOLLOW-UP REPORT TO THE AGENCY'S FIRST QUARTER REPORT ON THE 2010 TAX ALLOCATION BONDS (Receive/File) CLOSED SESSION UNFINISHED BUSINESS

2 -2- Tuesday, February 15, 2011 NEW BUSINESS 2. A RESOLTUION OF THE URBAN COMMUNITY DEVELOPMENT COMMISSION, ACTING AS THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF COMPTON AUTHORIZING THE EXECUTIVE SECRETARY TO ENTER INTO AN EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY AND TRADEMARK TO WORK OUT THE TERMS AND CONDITIONS OF A DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE ACQUISITION AND DEVELOPMENT OF CERTAIN AGENCY OWNED PROPERTY LOCATED IN THE COMPTON REDEVELOPMENT PROJECT AREA IN CONNECTION WITH THE AGENCY 2010 TAX ALLOCATION BOND PROGRAM COMMISSION COMMENTS ADJOURNMENT

3 #1. February 15, 2011 TO: FROM: INFORMATION: CHAIRMAN AND COMMISSIONERS EXECUTIVE SECRETARY FOLLOW-UP REPORT TO THE AGENCY S 1 st QUARTER REPORT ON THE 2010 TAX ALLOCATION BONDS SUMMARY The purpose of this report is to provide a second update on the status of the expenditures of the Community Redevelopment Agency s (Agency) 2010 Tax Allocation Bond funds. BACKGROUND On December 21, 2010, agency staff presented its 1 st quarter report to the Commission regarding the expenditure of the 2010 Tax Allocation Bond proceeds and the estimated project completion dates. The 2010 Tax Allocation Bond funds are separated into three separate, legally-distinct fund categories that have distinct guidelines for permissible utilization of funds. The Bond fund series are delineated as follows: 1. Series A ($27,665,704.57) Housing Funds. Restricted to the production, development, acquisition, down-payment assistance and rehabilitation of Affordable Housing units. 2. Series B ($45,195,531.13) Tax Exempt Funds. Restricted to the implementation of Redevelopment projects that generate economic benefits to the Community and substantiates the revenue capacity of project area to finance the total issuance amount of the tax allocation bond funds. The activities/projects/programs identified under this series includes: land acquisition, site clearance, environmental remediation, direct project costs. 3. Series C ($15,895,000.00) Taxable Funds. These funds are restricted to the Statutory Obligations of the Redevelopment Agency, in accordance with California Redevelopment Law. -1-

4 #1. SUMMARY OF EXPENDITURES Series A Funds: a S. Atlantic Ave. The Agency acquired the subject property in July 2010 for $1.8 million dollars and is reviewing proposals to develop the site for affordable housing. i. Budget: $2,500, ii. Expenditure:$1,753, iii. Balance:$745, b W. Compton Blvd. The Agency acquired the property for $1.4 million dollars and is reviewing proposals to develop the site for affordable housing. i. Budget: $1,500, ii. Expenditure:$1,497, iii. Balance:$3, c. 930 W. Compton Blvd. The property is currently in escrow on this property for $2 million dollars. Upon close of escrow, the property will be marketed to developers as an Affordable Housing site. i. Budget: $3,500, ii. Expenditure:$2,100, iii. Balance:$1,400, d N. Central Ave. = The Agency has entered into a purchase agreement with Luxor Properties, Inc for the acquisition of this site in the amount not to exceed $2.4 million dollars. Upon acquisition, the property will be marketed to developers as an Affordable Housing project. i. Budget: $2,000, ii. Expenditure:$1,999, iii. Balance:$ e. Meta Housing = The Agency allocated additional financial assistance in the amount of $2.2 million dollars to the developer in order to facilitate the implementation of the project through the State of California 4% Tax Credit program for non-competitive funding. In addition, the developer will be applying for leveraging funds from the City of Industry Low Moderate Housing fund pool, to complete the financing structure for the project. i. Budget: $2,200, ii. Expenditure:$2,200, iii. Balance:$0.00 f Rosecrans Avenue = The Agency is in negotiations with property owner. Staff anticipates that the final purchase price will be agreed upon by all parties within the next 60 days. Upon acquisition, the property will be marketed to developers as a Mixed-Use vertical or horizontal development site. i. Budget: $750, ii. Expenditure:$750, iii. Balance:$

5 #1. g. Long Beach/Chevron Site (1117 S. Long Beach Blvd.) = The Agency is reviewing development proposals for the site, to construct Affordable Homeownership units. The Agency anticipates that we will present an Exclusive Negotiations agreement to Council within the next 30 days. i. Budget: $1,300, ii. Expenditure:$0.00 iii. Balance:$1,300, h. First Time Homebuyer Program = The Agency has implemented this project and will expend funds as eligible applicants are approved for the program in accordance with the program guidelines. The Agency has committed $2.3 million dollars to the Alameda Court project for Low to Moderate First Time Homebuyers. i. Budget: $9,000, ii. Expenditure:$2,300, iii. Balance:$6,700, i. 415 Compton Boulevard = the Agency has demolished the previous structure on the site and staff is currently marketing the site as Mixed-Use development site. i. Budget: $100, ii. Expenditure:$2, iii. Balance:$98, j. Alondra/Grandee Mixed-Use Project = Agency has entered into a purchase agreement with East West Bank for the property located at 950 W. Alondra Blvd. for approximately $2.1 million dollars. Agency staff will be performing the appropriate due diligence prior to acquisition. Agency staff is also researching the acquisition of the vacant lot across the street. i. Budget: $3,500, ii. Expenditure:$2,100, iii. Balance:$1,400, k. Alondra/Atlantic Mixed-Use Project = Agency staff is reviewing the title reports and owners information to determine the appropriate owners and perform the necessary due environmental due diligence prior to site acquisition. The Agency is incorporating this area into the Agency s its Redevelopment Project Area to provide additional assistance if needed. i. Budget: $1,215, ii. Expenditure:$ iii. Balance:$1,214, l. Alondra Housing Project = Agency staff is currently working with a Design and Engineering firm for the preliminary plan of a regional park for the site. Additionally, the performing the necessary due environmental due diligence prior to final design -3-

6 #1. Series B Projects: i. Budget: $1,000, ii. Expenditure:$35, iii. Balance:$964, a. Performing Arts Center = the Agency is in negotiations with the owners of the Crystal Park casino for the acquisition/lease of the adjacent parking lot next to the casino for development of the Performing Arts Center. The Agency is in receipt of a proposal from a nationally recognized developer for a Lease Lease back program for the construction of the Performing Arts Center. i. Budget: $9,085, ii. Expenditure:$0.00 iii. Balance:$9,085, b. Willowbrook Avenue Streetscape = The Agency in coordination with the Public Work Department implemented this project and it has been completed. The total project cost from bond proceeds is $1.4 million dollars. i. Budget: $1,600, ii. Expenditure:$1,400, iii. Balance:$138, c. Citywide Street Lighting Project = The Agency is working in partnership with the City Public Works Department to implement the Citywide Street lighting program. At this time, the Agency has encumbered $2.5 million dollars i. Budget: $3,000, ii. Expenditure:$2,496, iii. Balance:$504, d. Greenleaf Streetscape Project = The Agency is working in partnership with the Public Works Department to implement this project. At this time, the design has been completed and the City is awaiting final funding notification. The total project costs have been allocated in the amount of $1 million dollars. i. Budget: $1,000, ii. Expenditure:$150, iii. Balance:$849, e. MLK Project The Agency has expended approximately $6.0 million dollars of bonds funds on this project. iv. The contractor (MEPCO) is approximately 55% completed with construction activities. The project scheduled is scheduled for completion of the building shell and core and Bus bays/roadway by December 31, Project completion by March 22, i. Budget: $8,185, ii. Expenditure:$5,100, iii. Balance:$3,085, f. Compton Boulevard Streetscape = The Agency has held three (3) community meetings regarding the proposed new streetscape design for Compton Boulevard. The Agency presented the proposed streetscape to the City Council and will be -4-

7 #1. presenting the streetscape concept to the Planning Commission in January The Agency is working with the Public Works department on an R.F.P. for an intersection study of Compton Blvd. /Willowbrook Ave. and traffic study of Compton Blvd. i. Budget: $3,000, ii. Expenditure:$0.00 iii. Balance:$3,000, g. Rosecrans Avenue Streetscape = The Agency will conduct several community stakeholder meetings to solicit input and design for the Rosecrans Avenue Streetscape project. i. Budget: $1,000, ii. Expenditure:$0.00 iii. Balance:$1,000, h. Alameda Streetscape = The Agency will conduct several community stakeholder meetings to solicit input and design for the Alameda Streetscape project i. Budget: $1,000, ii. Expenditure:$0.00 iii. Balance:$1,000, i. Alameda Industrial Park = the Agency has purchased the City Yard at 458 S. Alameda St. in the amount of $4.4 million dollars and entered into an Exclusive Negotiations Agreement (E.N.A.) with Prism IQ Partners for the development of a Class A Light Industrial Business Park for the site. i. Budget: $4,500, ii. Expenditure:$4,485, iii. Balance:$12, j. SWC Compton/Central Mixed-Use Project = the Agency owns this property and is currently reviewing several development proposals for commercial/retail development of the site. i. Budget: $1,000, ii. Expenditure:$4, iii. Balance:$995, k. NEC Compton/Central Mixed-use Project = the Agency has entered into discuss with the surrounding property owners regarding acquisition of the Adjacent parcel next to the Agency property at 250 North Central Avenue. i. Budget: $1,000, ii. Expenditure:$0.00 iii. Balance:$1,000, l. Rosecrans School District Site = the Agency is currently marketing the site as an affordable housing. Upon sell of the property, the Agency will utilize bond funds for site clearance and preparation activities. i. Budget: $500, ii. Expenditure:$0.00 iii. Balance:$500,

8 #1. m. Community Center, Senior Activity Center and Parking Structure = The Agency has expended $75, for the environmental review of the three (3) public facilities. i. Budget: $75, ii. Expenditure:$75, iii. Balance:$0.00 n. Gateway Towne Center Phase II = the Agency has extended the term of our DDA with Prism IQ Partners for an additional 36 months, to further facilitate the lease negotiations for tenants. i. Budget: $500, ii. Expenditure:$ iii. Balance:$499, o. Long Beach Boulevard Revitalization Project = the Agency currently owns two parcel along the northern area of the city between Rosecrans and Palmer Avenue. The Agency is in discussions with the additional property owners for acquisition to complete a 2 acre retail development. i. Budget: $1,000, ii. Expenditure:$1,000, iii. Balance:$0.00 p. Central Avenue Revitalization Project = the Agency is in discussion with the owners of the Atkinson Brickyard for the future redevelopment of the site. As such, the Agency will be entering into negotiations for the acquisition/relocation of the METRO bus yard and implementation of certain public improvements along Central Avenue. i. Budget: $1,000, ii. Expenditure:$0.00 iii. Balance:$1,000, q S. Santa Fe Avenue Commercial Project = the Agency is in negotiations with the property owner for acquisition of the property. For the future development of a commercial/retail user. i. Budget: $750, ii. Expenditure:$0.00 iii. Balance:$750, r. Compton Boulevard Revitalization = The Agency has acquired several properties along Compton Blvd. and are engaged in negotiations with several other property owners on Compton Blvd. At this time, the Agency has the following properties under negotiation/escrow: i. Budget: $5,000, ii. Expenditure:$3,000, iii. Balance:$2,000,

9 #1. s. Alameda Corridor Revitalization project = The Agency completed the acquisition of several properties along Alameda Corridor in the amount of $1 million dollars. Specifically, the properties located within the and 1500 blocks of Alameda Street. Series C Projects: i. Budget: $1,000, ii. Expenditure:$1,000, iii. Balance:$0.00 t West Rosecrans Avenue = The Agency is in escrow for the acquisition of this property in the amount of $2.2 million dollars. Upon completion of the purchase, the Agency will market the site for a Redevelopment Reuse activity. i. Budget: $1,000, ii. Expenditure:$1,000, iii. Balance:$0.00 a. SERAF Payment The Agency made this payment on or about July 1, 2010, when the bonds were deposited into U.S. Bank. This project was completed through a direct wire from the Trustee to the lien holder Yamkochav Investments, LLC. i. Budget: $9,175, ii. Expenditure:$9,175, iii. Balance:$0.00 b. SERAF Payment The Agency made this payment to the County in January 2011 as part of the State mandatory SERAF FY 2011 budget approval. i. Budget: $1,750, ii. Expenditure:$1,750, iii. Balance:$0.00 c. AB 1389 payments = The Agency has processed the prior fiscal year obligations. i. Budget: $3,800, ii. Expenditure:$1,542, iii. Balance:$2,257, d. Compton Unified School District = The Agency is working with the City Attorney s Office to negotiate the final settlement amount. i. Budget: $1,149, ii. Expenditure:$0.00 iii. Balance:$1,149, DR. KOFI SEFA-BOAKYE DIRECTOR OF REDEVELOPMENT WILLIE NORFLEET EXECUTIVE SECRETARY -7-

10

11 #2. February 15, 2011 TO: CHAIRMAN AND COMMISSIONERS FROM: EXECUTIVE SECRETARY SUBJECT: A RESOLUTION OF THE URBAN COMMUNITY DEVELOPMENT COMMISSION, ACTING AS THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF COMPTON AUTHORIZING THE EXECUTIVE SECRETARY TO ENTER INTO AN EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY AND TRADEMARK DEVELOPMENT COMPANY, LLC TO WORK OUT THE TERMS AND CONDITIONS OF A DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE ACQUISITION AND DEVELOPMENT OF CERTAIN AGENCY-OWNED PROPERTY LOCATED IN THE COMPTON REDEVELOPMENT PROJECT AREA IN CONNECTION WITH THE AGENCY S 2010 TAX ALLOCATION BOND PROGRAM SUMMARY Staff is requesting the Commission to authorize the Executive Secretary to enter into an Exclusive Negotiation Agreement (ENA) between the Community Redevelopment Agency (Agency) and Trademark Development Company, LLC to work out the terms of a Disposition and Development Agreement for the acquisition of Agency owned property located at 1117 South Long Beach Boulevard in the Redevelopment Project Area in connection with the Agency s 2010 Tax Allocation Bond Program. BACKGROUND Over the past two (2) years the Agency has implemented a variety activities and programs in an effort to rebrand and market the image of the City of Compton. The Agency has carried the vision of Birthing a New Compton to international, national, and regional housing development arenas. The fruits of those efforts have yielded significant interest from the investor community to develop in the City. At this time, the Agency has obtained a proposal from Trademark Development Company, LLC a recognized leader in the development of high quality infill residential housing, for the acquisition and development of certain Agency owned property located at the 1117 South Long Beach Boulevard. -9-

12 #2. STATEMENT OF THE ISSUE In order to fulfill the objectives of the proposed development, Trademark Development is requesting an exclusive negotiation agreement (ENA) for period of 6 months to work the terms of negotiations with the Agency culminating in a Disposition and Development Agreement (DDA). Trademark is a Los Angeles/Pasadena based real estate development company that specializes in developing infill housing. Trademark has been recognized for their design, construction and sale of new homes to entry-level, first time move-up, and move-down homebuyers. Trademark develops new homes in neighborhoods within close proximity to employment centers, retail centers and civic facilities. Trademark has identified the 1117 South Long Beach property as an extremely viable residential development site. As such, Trademark Development proposes to develop up to twenty-four (24) affordable (moderate-income) single-family residential units at 1117 South Long Beach Boulevard. Additionally, the development of this project will assist the Agency in meetings its 2010 Tax Allocation Bond requirements and Five-Year Implementation goals for the production of Affordable Housing units in the City. FISCAL IMPACT The Agency has funds in the amount of $1,300, available in its 2010 Tax Allocation Bond account number# to facilitate the development of this project. RECOMMENDATION Staff is respectfully requesting the Commission to authorize the Executive Secretary to enter into an Exclusive Negotiation Agreement (ENA) between the Community Redevelopment Agency (Agency) and Trademark Development Company, LLC to work out the terms of a Disposition and Development Agreement for the acquisition of Agency owned property located at 1117 South Long Beach Boulevard in the Redevelopment Project Area in connection with the Agency s 2010 Tax Allocation Bond Program. DR. KOFI SEFA-BOAKYE DIRECTOR OF REDEVELOPMENT WILLIE NORFLEET EXECUTIVE SECRETARY -10-

13 #2. RESOLUTION NO. A RESOLUTION OF THE URBAN COMMUNITY DEVELOPMENT COMMISSION, ACTING AS THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF COMPTON AUTHORIZING THE EXECUTIVE SECRETARY TO ENTER INTO AN EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY AND TRADEMARK DEVELOPMENT COMPANY, LLC TO WORK OUT THE TERMS AND CONDITIONS OF A DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE ACQUISITION AND DEVELOPMENT OF CERTAIN AGENCY-OWNED PROPERTY LOCATED IN THE COMPTON REDEVELOPMENT PROJECT AREA IN CONNECTION WITH THE AGENCY S 2010 TAX ALLOCATION BOND PROGRAM WHEREAS, the Community Redevelopment Agency of the City of Compton (the "Agency") is carrying out the Redevelopment Plan for the Compton Redevelopment Project Area, as merged and amended by Ordinance No. 2,114 adopted by the City Council on November 16, 2004; and WHEREAS, over the past two (2) years the Agency has implemented a variety activities and programs in an effort to rebrand and market the image of the City of Compton. The Agency has carried the vision of Birthing a New Compton to international, national, and regional housing development arenas. The fruits of those efforts have yielded significant interest from the investor community to develop in the City; and WHEREAS, at this time, the Agency has obtained a proposal from Trademark Development Company, LLC a recognized leader in the development of high quality infill residential housing, for the acquisition and development of certain Agency owned property located at the 1117 South Long Beach Boulevard; and WHEREAS, Trademark, who has been recognized for their design, construction and sale of new homes to entry-level, first time move-up, and move-down homebuyers proposes to develop up to twenty-four (24) affordable (moderate income) single-family residential units at 1117 South Long Beach Boulevard; and WHEREAS, the development of this project will assist the Agency in meetings its 2010 Tax Allocation Bond requirements and Five-Year Implementation goals for the production of Affordable Housing units in the City; and WHEREAS, in order to fulfill the objectives of the proposed development, Trademark is requesting an exclusive negotiation agreement (ENA) for period of 6 months to work out the terms of negotiations with the Agency culminating in a Disposition and Development Agreement (DDA). NOW, THEREFORE, THE URBAN COMMUNITY DEVELOPMENT COMMISSION, ACTING AS THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF COMPTON, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. That the Executive Secretary is hereby authorized to enter into Exclusive Negotiation Agreement for a period of six (6) months with Trademark Development Company, LLC for the proposed acquisition and development of certain Agency owned property, located at 1117 South Long Beach Boulevard, Compton, in the Redevelopment Project Area. Section 2. That a certified copy of this resolution shall be filed in the offices of the Executive Secretary, City Attorney, City Controller, Community Redevelopment Agency, and Clerk. Section 3. That The Agency has funds in the amount of $1,300, available in its 2010 Tax Allocation Bond account number# to facilitate the development of this project. -11-

14 #2. Resolution No. Page 2 Section 4. this resolution. That the Chairman shall sign and the Clerk shall attest to the adoption of ADOPTED this day of CHAIRMAN OF THE URBAN COMMUNITY DEVELOPMENT COMMISSION ATTEST: CLERK OF THE URBAN COMMUNITY DEVELOPMENT COMMISSION STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF COMPTON I, Alita Godwin, Clerk of the Urban Community Development Commission of the City of Compton, hereby certify that the forgoing resolution was adopted by the Commission, signed by the Chairman, and attested by the Clerk at a regular meeting thereof held on the day of That said resolution was adopted by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: COMMISSIONERS- COMMISSIONERS- COMMISSIONERS- COMMISSIONERS- CLERK OF THE URBAN COMMUNITY DEVELOPMENT COMMISSION -12-

15 Housing Development Proposal for 1117 S. Long Beach Blvd. #2. INTRODUCTION This development proposal was prepared for submittal to the Compton Community Redevelopment Agency for the development of a twenty four unit ownership housing development located at 1117 South Long Beach Boulevard in the City of Compton. The following sections are included in this proposal: Section 1: Development Team and Proposed Development Entity Section 2: Development Experience in Affordable & Market Rate Housing Section 3: Developer References Section 4: Financial Capacity & Banking/Lender Relationships Section 5: Proposed Development Site & Design Concept Section 6: Preliminary Development Proforma Section 7: Proposed Sales & Marketing Plan; and Section 8: Proposed Project Timeline SECTION 1. DEVELOPMENT TEAM AND PROPOSED DEVELOPMENT ENTITY DEVELOPMENT TEAM ORGANIZATION CHART Developer: Trademark Development Company, LLC Project Manager: Joel C. Bryant Architect: KTGY Group, Inc. Structural Engineer: BORM Engineers Civil Engineer: Tritech Associates, Inc. General Contractor: TM Constructors, Inc. Legal Counsel: GIA Law December 20 th, 2010 Page 1-13-

16 #2. Housing Development Proposal for 1117 S. Long Beach Blvd. DEVELOPMENT TEAM RESUMES DEVELOPER Trademark Development Company, LLC 1028 N. Lake Avenue, Suite 101 Pasadena, California Tel: (626) Fax: (626) Primary Contact: Joel Bryant, Principal Trademark Development Company, LLC: The development team will be led by Trademark Development Company, LLC, which will be responsible for coordinating all aspects of the proposed development from signing the Exclusive Negotiation Agreement to selling the housing units upon completion. Trademark is a San Gabriel Valley-based real estate development company which was formed to take advantage of the numerous development opportunities in the Southern California infill housing market. The company specializes in the design, construction, and sale of new homes to entry-level, first time move-up, and move-down homebuyers. Trademark builds new homes in mature Southern California neighborhoods within close proximity to employment centers, retail centers, and cultural/entertainment attractions. Trademark s homes illustrate the highest level of quality, foster a sense of community, and provide long-lasting value to its homebuyers. Trademark is more than a builder of residential developments. Trademark is a community builder. The company strives to improve the overall quality of the neighborhoods where its housing developments are located. Finally, the Company continually makes a concerted effort to build on challenging sites often overlooked by typical development entities. Trademark s Principal, Joel Bryant, possesses the combined experience, educational background, and acquired skills which enable the company to successfully direct its housing development ventures from inception to completion. Joel Bryant is a co-founder and principal in Trademark. Mr. Bryant oversees all the divisions of the company from land acquisition to completed operations. He is directly responsible for the Project Development and Administrative Divisions of Trademark. Mr. Bryant's experience in the real estate industry started in Prior to co-founding Trademark, Mr. Bryant worked as a land use planner and housing development specialist with the City of Burbank and the Burbank Redevelopment Agency. Mr. Bryant was responsible for entitling several high profile commercial projects in Downtown Burbank. In addition, Mr. Bryant analyzed the feasibility of several affordable housing projects in Burbank and played a major role in forming a Citywide Task Force with the mission of producing and preserving affordable housing units in the City. December 20 th, 2010 Page 2-14-

17 Housing Development Proposal for 1117 S. Long Beach Blvd. #2. Mr. Bryant served on the City of Pasadena's Community Development Committee from 1996 to 1999 where he participated in numerous negotiating sessions between developers and the City regarding proposed residential and retail developments where public funds were being sought. From 1994 to 1996, Mr. Bryant served on the Board of Pasadena Neighborhood Housing Services, a non-profit agency dedicated to the rehabilitation and preservation of affordable ownership and rental housing in Northwest Pasadena. Mr. Bryant has expertise in the land entitlement process and housing and redevelopment finance, particularly affordable housing. Mr. Bryant earned his Bachelor of Science degree in Urban and Regional Planning from California State Polytechnic University Pomona and his Master s degree in Real Estate Development from the University of Southern California. Mr. Bryant also holds a California General Contractors (Class B) License. ARCHITECT KTGY Group, Inc Fitch Irvine, Ca Primary Contact: Dave Kent Tel: (949) Fax: (949) E mail: dkent@ktgy.com CONTRACTOR TM Constructors, Inc N. Lake Avenue, Suite 101 Pasadena, California Primary Contact: Joel Bryant Tel: (626) Fax: (626) E mail: jb@trademarkdevelopment.com CIVIL ENGINEER Tritech Associates, Inc. 135 N. San Gabriel Boulevard, Suite 100 San Gabriel, California Primary Contact: Tom Cao Tel: (626) Fax: (626) E mail: info@tritechassociates.com December 20 th, 2010 Page 3-15-

18 #2. Housing Development Proposal for 1117 S. Long Beach Blvd. STRUCTURAL ENGINEER BORM Engineers 60 Corporate Plaza Irvine, California Primary Contact: George Richards Tel: (949) , ext. 202 Fax: (714) E mail: georger@borm.com LEGAL COUNSEL Greg I. Anderson, Attorney at Law 1028 N. Lake Avenue, Suite 201 Pasadena, California Primary Contact: Greg I. Anderson Tel: (626) Fax: (626) E mail: greg@gialaw.com PROPOSED DEVELOPMENT ENTITY The development entity for the proposed Long Beach Boulevard housing development will be Trademark Development Company, LLC. Trademark Development Company is a for-profit, San Gabriel Valley-based real estate development company which specializes in the design, construction, and sale of new homes. If selected to develop the subject property, Trademark will form a single-purpose California limited liability company, whereby Trademark will be the managing member. In all instances, the Compton CRA staff will communicate directly with the Principal of Trademark Development Company. SECTION 2. DEVELOPMENT EXPERIENCE IN AFFORDABLE HOUSING Trademark Development Company has extensive experience working with local governmental agencies and non-profit organizations on the creation and provision of affordably priced for-sale housing targeted toward moderate income homebuyers. Trademark is scheduled to begin construction in January 2011 on the Classics at Washington Park, an eight unit townhome development located in Northwest Pasadena on the site of a former blighted liquor store property. Four of the units will be marketed and sold to first-time homebuyers. On both the Classics at Washington Park and the Allen Brigden Classics, Trademark worked closely with staff of the Pasadena Housing Department and Pasadena Neighborhood Housing Services to identify qualified households and assist them in the purchase of the affordable units. December 20 th, 2010 Page 4-16-

19 Housing Development Proposal for 1117 S. Long Beach Blvd. #2. In November 2010 Trademark completed construction on its first mixed use project, the Allen- Brigden classics. This development, located at 1142 N. Allen Avenue in the City of Pasadena, includes 6 units, two of which were designed, constructed, and marketed as live-work units. Five of the 6 units in the project are geared toward moderate-income and low-income households. Homeowners began moving into the development in January In March 2008 Trademark completed sales of six affordable townhomes in the City of Arcadia. This project, the Alta Street Classics, was the first for-sale affordable housing project built in the City of Arcadia. Trademark worked closely with the Redevelopment Agency staff to structure the financing program for the homebuyers. In addition, Trademark took the lead in bringing in the non-profit Housing Rights Center of Los Angeles to ensure that the homebuyer selection process was fair and equitable. Also in 2008, Trademark worked with the Azusa Redevelopment Agency to identify qualified buyers for its Foothill Classics townhome development. In early 2008, the City of Azusa adopted a First-Time Homebuyer Program whereby City residents, if qualified, receive up to $120,000 in down payment assistance. Trademark worked with the Azusa Redevelopment Agency to identify a qualified First Time Homebuyer and structure an affordable financing package for the purchase of one the Foothill Classics townhomes. In 2002, Trademark completed the Lincoln Classics townhome development in Northwest Pasadena. All of these units were marketed and sold to first-time homebuyers from the neighborhood. This project was developed in partnership with the Pasadena Community Development Commission, which provided silent second trust deeds to the buyers. Please see Appendix 1 for photographs of Trademark s projects and for newspaper articles on the company s projects and business activities. December 20 th, 2010 Page 5-17-

20 #2. Housing Development Proposal for 1117 S. Long Beach Blvd. Completed Projects: (see APPENDIX 1 for photos of all projects listed below) THE LINCOLN CLASSICS Lincoln Avenue Pasadena, California In partnership with the City of Pasadena s Community Development Commission (i.e., Redevelopment Agency) Trademark Development Company developed an aesthetically attractive Craftsman-style residential condominium development known as the Lincoln Classics (the Project ). The Project involved the construction of two (2) single-family detached homes that were marketed and sold to entry-level moderate-income households (see Appendix 1 for Photographs). Sale Price: $222,000 and $224,000 Commission Assistance: Total Project Cost: $400,000 Completion: January 2002 $115,000 land write down $90,000 ($45,000/unit) in Silent-Second Trust Deeds THE CYPRESS CLASSICS Cypress Avenue Pasadena, California The Cypress Classics is comprised of three (3) single-family detached homes. The design concept for the homes features contemporary elements of Craftsman and Victorian architectural styles with the amenities of today s newly built homes. The site features a 1,900 square foot main garden with a mature oak tree, which functions as the focal point of the development. By focusing the homes around the main garden, the residents enjoy a sense of community and experience pride of ownership (See Appendix 1 for Photographs). Target Market: Entry-Level and First Time Move-up homebuyers Sale Price: $435,000 - $455,000 Total Project Cost: $960,000 Completion: April, 2004 December 20 th, 2010 Page 6-18-

21 Housing Development Proposal for 1117 S. Long Beach Blvd. #2. THE MINNESOTA CLASSICS 330 E. Bennett Street Glendora, California The Minnesota Classics features four (4) new single-family detached homes located on Minnesota Avenue in the City of Glendora. The site is located in an attractive north Glendora neighborhood, which is adjacent to the City s historic downtown district. The homes showcase Craftsman-inspired architectural design, including exterior wood siding and river rock columns. The homes also feature inviting front porches providing homeowners with an opportunity to enjoy the development s ample open space. A central landscaped courtyard functions as the centerpiece of the Minnesota Classics Homes (See Appendix 1 for Photographs). Target Market: Entry-Level and First Time Move-up homebuyers Sale Price : $460,000 - $465,000 Total Project Cost: $1.2 Million Completion: October 2004 THE ALTA STREET CLASSICS 119 & 121 E. Alta Street Arcadia, California In partnership with the Arcadia Redevelopment Agency, Trademark developed six townhomes featuring a Craftsman/Prairie inspired design. All six homes were reserved and sold to first time homebuyers who earned up to 120% of the Los Angeles County area median income. Trademark played a significant role working with the City to select the eventual homebuyers. (see Appendix 1 for Photographs). Target Market: 1 st Time homebuyers - up to 120% of LA Co. A.M.I. Sale Price : $189,000 - $203,000 Total Project Cost: $1.6 million Completion: March 2008 December 20 th, 2010 Page 7-19-

22 #2. Housing Development Proposal for 1117 S. Long Beach Blvd. THE FOOTHILL CLASSICS Foothill Boulevard Azusa, California The Foothill Classics includes fourteen (14) attached townhomes located in the downtown district of Azusa. The unit mix is comprised of two and three bedroom units with attached two car garages. The townhomes range in size from 1,646 to 1,759 square feet and are developed at a density of approximately 20 dwelling units to the acre. The site plan is situated to provide front facades, which face onto Foothill Boulevard in an effort to communicate with the street, as opposed to turning its back and creating an unwelcome environment. Each of the homes will feature 150 square foot usable front porches, which also face Foothill Boulevard; thereby placing eyes on the street. Target Market: Entry-Level, Move-Up, and Move-Down homebuyers Sale Price: Mid $300,000s to Low $400,000s Total Project Cost: $5.9 million Completion: May 2008 THE ALLEN-BRIGDEN CLASSICS 1150 North Allen Avenue Pasadena, California The Allen-Brigden Classics project included the redevelopment of a blighted former gas station property located in Northeast Pasadena. This project was a joint venture between the City of Pasadena and Trademark. The project provided a total of 6 for-sale townhomes, five of which are reserved and will be sold to first-time homebuyers earning up to 120% of the area median income (AMI) for Los Angeles County. The one remaining unit provides a unique ownership opportunity whereby a residential and commercial condominium will be sold as one unit. The non-residential space will create a unique work /live option for professional artisans. All the units have attached garages. Target Market: Moderate-Income, Entry-Level, and Move-Down Homebuyers Sale Price: Market Rate: mid $500,000s Affordable: $232,000, $262,000 and $292,000 Commission Assistance: $960,000 land acq. loan recast to buyers at sale-out. Completion: November, 2010 December 20 th, 2010 Page 8-20-

23 Housing Development Proposal for 1117 S. Long Beach Blvd. #2. Current Projects: THE CLASSICS AT WASHINGTON PARK 1350 El Molino Avenue Pasadena, California The Classics at Washington Park is located on the northeast corner of Washington Boulevard and El Molino Avenue in the City of Pasadena. The project will be developed in partnership with the City of Pasadena s Community Development Commission. The Classics at Washington Park will feature the design, construction, and sale of eight (8) single-family attached townhomes, comprised of a mix of two and three bedroom units. The homes will range in size from 1,300 to 1,600 square feet. Four of the homes will be marketed and sold at prevailing market rate prices. The remaining four homes will be reserved for moderate-income homebuyers. The design concept of the homes will feature craftsman-inspired architecture, which is consistent and compatible with the architectural resources of the surrounding neighborhood. Target Market: Moderate-Income, Entry-Level, and Move-Down Homebuyers Sale Price: Market Rate: low to mid $400,000s Affordable: $238,000 and $266,000 Commission Assistance: $1,529,000 Land Acquisition Loan; payable at sale out. $300,000 in Silent Second Trust Deeds ($150,000 per affordable unit). Anticipated Completion: September, 2011 December 20 th, 2010 Page 9-21-

24 #2. Housing Development Proposal for 1117 S. Long Beach Blvd. SECTION 3. REFERENCES Richard Bruckner Director of Regional Planning County of Los Angeles 320 W. Temple Street, 13 th Floor Los Angeles, CA (213) Lola Workman Osborne Northwest Manager City of Pasadena Planning & Development Department 236 W. Mountain Street, Suite 201 Pasadena, CA (626) Michael Huntley Director of Community Development City of Montebello 1600 W. Beverly Blvd. Montebello, CA (323) Dianne Walter Associate Planner City of Glendora 116 E. Foothill Blvd. Glendora, CA (626) Susan Cole Associate Planner City of Azusa 213 E. Foothill Blvd. Azusa, CA (626) December 20 th, 2010 Page

25 Housing Development Proposal for 1117 S. Long Beach Blvd. #2. SECTION 4. FINANCIAL CAPACITY & BANKING/LENDING RELATIONSHIPS Trademark Development Company has worked with several equity and conventional construction lending sources. The company has been successful in obtaining construction and equity funds for all of its completed and current projects. Trademark has developed a successful track record of completing residential development projects throughout the San Gabriel Valley, which have also provided attractive returns to both construction lending and equity sources. Trademark s primary banking references include the following: CONSTRUCTION LENDER Century Community Lending Company 1000 Corporate Pointe Culver City, California Primary Contact: Tracey L. Burns Tel: (310) Fax: (310) E mail: tburns@centuryhousing.org Web site: December 20 th, 2010 Page

26 #2. Housing Development Proposal for 1117 S. Long Beach Blvd. SECTION 5. PROPOSED DEVELOPMENT SITE & DESIGN CONCEPT PROJECT SUMMARY The proposed Long Beach Boulevard housing development consists of twenty-four (24) quality townhomes built at a density of approximately 20 units per acre. Each of the units will be marketed and sold to those households categorized as moderate income under California Redevelopment Law. The table below provides a summary of the proposed unit mix, unit size, and estimated base sales price: Unit Type No. of Units Square Footage Base Sale Price Unit A (2 bd.rm.) $225,000 Unit B (3 bd.rm.) $250,000 Totals 24 du s 34,000 sq.ft. The development site is located at 1117 South Long Beach Boulevard. The site is located on the west side of Long Beach Boulevard and is bounded by Temple Avenue on the north, Caldwell Street on the south, and a twenty foot wide alley along the western portion of the property (see Exhibit 2). The entire development site is 54,324 square feet (1.25 acres) and it is rectangular in shape. The site topography is relatively flat. It should be noted that the actual density of the project may need to be decreased to achieve a functional site plan with ample open space and guest parking for residents. DESIGN APPROACH The project s design will stem from both a thorough understanding of the Agency/City s parameters discussed through negotiations and a strong desire to create an aestheticallypleasing, yet functional housing development. Furthermore, the development team will place a strong emphasis on connecting the proposed project seamlessly into the fabric of the existing neighborhood. A strong effort will be made to design a project which complies with the development standards of Compton s RH zoning designation. Trademark will retain the services of KTGY Group, a nationally renowned architectural firm, for the design of the proposed development. Trademark has worked with KTGY for over 6 years on several projects in Pasadena, Azusa, and Culver City. UNIT FLOOR PLANS: EFFICIENT LAYOUT FOR DIVERSE FAMILY DYNAMICS Comfortable lifestyles do not have to be compromised while designing efficient homes. Efficiently considered plans are characterized by clever and functional design within restrictive parameters. These were key ideals in designing these plan unit types, while providing solutions that are cost effective to build. In addition, the plans provide flexibility for the individual needs of different family dynamics; ranging from single parent households to dual parent households with 2 or more children; while allowing December 20 th, 2010 Page

27 Housing Development Proposal for 1117 S. Long Beach Blvd. #2. the collective to live together as a thriving community. The design solutions provided demonstrate plans that provide intimate spaces, with the ability to expand livability through the site as a whole. BUILDING EXTERIOR DESIGN & CONSTRUCTION Paramount to the building exterior is its curb appeal. Just as important, the design solution will be sensitive to scale, lifestyles, and a connection to the outdoors. The project building will be composed of two and three-stories. The proposed architectural theme for the project will be Classic Contemporary. This architectural style is represented by clean lines, a playful composition of low angled roofs, and employment of careful window configurations that help accentuate the lines. Modern elements with a warm feel will be achieved. In keeping with the home building trends of today, a green approach to building will be employed. For example, the roof design is relatively simple, allowing the use of standard engineered wood trusses, improving quality, saving costs and cutting down on waste. Moreover, the use of drought tolerant landscaping, container planting, and drip irrigation will be incorporated. The Long Beach Boulevard home development will be constructed with at-grade or tuck-under parking. All units will be built on concrete slab foundations. The units will be framed utilizing conventional lumber and engineered wood products (Type V construction). All driveways, walkways, and patios will be constructed with concrete. Exhibit 2 Parcel Map PROPOSED DEVELOPMENT SITE: 1117 S. Long Beach Blvd. December 20 th, 2010 Page

28 #2. Housing Development Proposal for 1117 S. Long Beach Blvd. SECTION 6. PRELIMINARY DEVELOPMENT PROFORMA PROPOSED METHOD OF FINANCING Trademark Development Company will obtain conventional construction financing and equity share financing for the proposed project. Trademark has established relationships with local construction lenders who have expressed an interest in providing construction financing for the proposed development. NOTES TO PROFORMA Project Unit Mix: the Compton Affordable Housing Development is comprised of twentyfour (24) attached condominium units ranging in size from 1,300 square feet to 1,500 square feet. Two floor plans are featured in the development. The following table describes the unit mix for the proposed development. Plan No. No. of Units Bedrooms Baths Square Feet Base Sale Price Price/SF Plan A ,300 $225,000 $ Plan B ,500 $250,000 $ The total building area of all of the housing units is 34,000 gross square feet. SECTION 7. PROPOSED SALES & MARKETING PLAN Trademark Development places a strong emphasis on the marketing and sales function of its homes. Our nation s current economic climate has been particularly challenging for home sales. Trademark has first-hand experience in selling homes in this challenging market. For example, in 2008 Trademark began sales of fourteen units in the downtown district of Azusa. The sales activity in Azusa became particularly challenging due to rapidly declining home prices evident in the market at that time. With the proper price adjustments and aggressive marketing, Trademark was able to effectively sell the inventory and close out the project. Signage Signage will be placed on-site with language indicating Coming Soon with the units size and types. As the projects progresses, signage will be placed at the Site indicating such catch-phrases as Be In Your New Home This Summer! and an indication of the starting prices. Web Presence Since a large majority of buyers will start their search online, Trademark realizes this will be a critical means of disseminating the information to a large audience. The individualized property website will show the project s overall layout, property information, pricing, financing opportunities and any bonuses available for the homebuyers. The website will also have links to Facebook and Twitter with property updates and photos showing the project s progress. The web presence, look December 20 th, 2010 Page

29 Housing Development Proposal for 1117 S. Long Beach Blvd. #2. and feel will be an introduction to the project for many people and will be a critical part of the initial marketing prior to the delivery of any tangible units. Also, by placing ads on Facebook and Google, Trademark will be able to tap into internet searches that prospective homebuyers will be conducting. Trademark has preferred vendors to aid in this portion of the marketing. Newspaper and other media Newspaper ads have worked well for other projects that the Trademark team has worked on. Reaching out to the community through LA Times, Daily News, Press Telegram, Daily Breeze and Sentinel will be planned for preliminary outreach and continued marketing for the community. Placement in the Home Buyers Guide will be another source of traffic. Broker Programs and Homebuyer Referral Programs Having a broker program in place from the inception of the development is a big draw to any new community. Presentations will be given at local realty offices and at the local real estate boards followed by a broker s open caravan. Additionally, E-Blasts will be sent to community brokers. Also, Trademark has found that using a graduated broker referral fee scale created urgency among the broker community for multiple sales within other communities that our sales team has represented. In addition, Trademark will implement a homeowner s referral program in place for registered buyers bringing new buyers to the Property. This has proven to be an effective program in the past with other projects. SECTION 8. PROJECT TIMELINE The development team has prepared a schedule for the proposed project based upon an assumed Agency approval in February The estimated timeline has been categorized into the following three phases: ENA/DDA Approval Phase Pre-Development Phase Construction Phase It is estimated that the proposed project will be completed in early December 20 th, 2010 Page

30 #2. Housing Development Proposal for 1117 S. Long Beach Blvd. THE LINCOLN CLASSICS Lincoln Avenue Pasadena, California December 20 th, 2010 Page

31 Housing Development Proposal for 1117 S. Long Beach Blvd. #2. THE CYPRESS CLASSICS Cypress Avenue Pasadena, California December 20 th, 2010 Page

32 #2. Housing Development Proposal for 1117 S. Long Beach Blvd. THE MINNESOTA CLASSICS Minnesota Avenue Glendora, California December 20 th, 2010 Page

33 Housing Development Proposal for 1117 S. Long Beach Blvd. #2. THE ALTA STREET CLASSICS E. Alta Street Arcadia, California December 20 th, 2010 Page

34 #2. Housing Development Proposal for 1117 S. Long Beach Blvd. THE FOOTHILL CLASSICS Foothill Boulevard Azusa, California December 20 th, 2010 Page

35 Housing Development Proposal for 1117 S. Long Beach Blvd. #2. THE ALLEN/BRIGDEN CLASSICS 1150 N. ALLEN AVENUE PASADENA, CA December 20 th, 2010 Page

36 #2. Housing Development Proposal for 1117 S. Long Beach Blvd. THE CLASSICS AT WASHINGTON PARK 1350 N. EL MOLINO AVENUE PASADENA, CA (COMPLETION SCHEDULED FOR NOVEMBER 2011) December 20 th, 2010 Page