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HomeMy WebLinkAboutAgenda Packet - November 23, 2009 OF.4:1 — U 4i* • `,:f.0::440[1,(1c.i P a "� 16Z </FORS us AGENDA SPECIAL MEETING OF THE CITY COUNCIL AND THE AZUSA REDEVELOPMENT AGENCY AZUSA LIGHT AND WATER MONDAY, NOVEMBER 23, 2009 729 NORTH AZUSA AVENUE immediately following the Utility Board Meeting which begins at 6:30 p.m. A. PRELIMINARY BUSINESS • Call to Order • Roll Call B. PUBLIC PARTICIPATION- Please note that public comments are welcomed by recognition of the Mayor. C. CITY AGENDA ITEM 1. Discussion regarding appointments to the Cultural and Historic Preservation Commission and/or setting a date for interview of applicants. D. AGENCY AGENDA ITEM 1. AUTHORIZATION TO NEGOTIATE REDEVELOPMENT AGENCY FINANCIAL ASSISTANCE FOR A POTENTIAL RESTAURANT LOCATED AT 855 E. ALOSTA AVENUE RECOMMENDED ACTION: Authorize the Executive Director to enter into negotiations with a potential restaurant business owner for the property located at 855 E. Alosta Avenue to provide financial assistance. E. CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATOR (Gov. Code Sec. 54957.6) Agency Negotiators: City Manager Delach and Administrative Services Director-CFO Kreimeier Organizations: IBEW F. ADJOURNMENT 1. Adjourn "In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city meeting,please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the meeting or time when special services are needed will assist staff in assuring that reasonable arrangements can be made to provide access to the meeting." 2 pF,q�G jr ; UY M { > # F# 4</F00�� US' AGENDA ITEM TO: HONORABLE MAYOR AND CITY •UNCIL MEMBERS FROM: VERA •MENDOZA, CITY CL j� , VIA: F.M. DELACH, CITY MANAGER,, W DATE: NOVEMBER 23, 2009 RE: APPOINTMENTS OR INTERVIEWS FOR CULTURAL AND HISTORIC PRESERVATION COMMISSION RECOMMENDATION It is recommended that the City Council either appoint from attached list of applicants or set date and time for interviews for the Historic Preservation Commission. BACKGROUND At the City Council Meeting of October 5, 2009, staff was directed to solicit applicants for the Cultural and Historic Preservation Commission, due to two vacancies that exist. Three applications were received and all applicants have been interviewed by Council Members, recently or in the past. There is still one vacancy in the Architectural Barriers Commission, no applications were received. FISCAL IMPACT: Stipend of$25.00 per meeting, not to exceed $50.00. CITY OF AZUSA NOVEMBER- 2009 BOARD AND COMMISSIONS NEW APPLICANTS ARCHITECTURAL BARRIERS COMMISSION (1 POSITION) None. CULTURAL AND HISTORICAL PRESERVATION COMMISSION (2 POSITIONS) Daysi Hernandez Bruce Knoles Art Morales 21) 40. / /, G �jn a wr zF.it 1 'v }rea }amu N Ci./ ii•1. O AGENCY AGENDA ITEM TO: HONORABLE CHAIRPERSON AND AGENCY BOARD FROM: KURT CHRISTIANSEN, DIRECTOR OF ECONOMIC & COM. DEVELOPMENT VIA: F.M. DELACH, EXECUTIVE DIRECTOR DATE: NOVEMBER 23, 2009 SUBJECT: AUTHORIZATION TO NEGOTIATE REDEVELOPMENT AGENCY FINANCIAL ASSISTANCE FOR A POTENTIAL RESTAURANT LOCATED AT 855 E. ALOSTA AVENUE RECOMMENDATION It is recommended that the Agency Board authorize the Executive Director to enter into negotiations with a potential restaurant business owner for the property located at 855 E. Alosta Ave. to provide financial assistance. BACKGROUND In an effort to recruit and incentivize quality restaurants to locate in Azusa, the City and the Redevelopment Agency ("Agency")have previously entered into loan agreements with a number of business operators using redevelopment tax increment and Community Development Block Grant ("CDBG") funds. These loans have typically provided financing for start-up costs, cash flow, and furniture, fixtures and equipment ("FF&E"). Payments on these loans are deferred and the principal amount ultimate forgiven after a fixed period of time depending on the operator's successful performance of certain contractual requirements (i.e., staying in business for a specified period, hiring specified numbers of low-income Azusa residents, etc.). In order to insure repayment in the event of default, these loans have been secured by promissory notes, guarantees, and by certain fixed assets of the business. On November 16, 2009, the city received a letter on behalf of Dalia's Pizza in Azusa, requesting to participate in the City's Business Assistance Program. Dalia's Pizza has operated in Azusa at their existing location 584 E. Foothill Blvd., for fifteen years. Dalia's Pizza has an extensive customer base which consists of approximately 40,000 return customers, many of them from Azusa Pacific University and Citrus College faculty, staff and students in addition to the residents of the city. Recently, Dalia's Pizza opened a second store in nearby Covina at an area shopping center where they continue to expand awareness of their brand in the San Gabriel Valley. Currently, Dalia's Pizza plans to move their smaller location on Foothill Blvd. to a site located at 855 E. Alosta Ave. which was formerly occupied by the Whole Enchilada. Dalia's Pizza vision and concept for the new location includes a full-service restaurant with an expanded Italian inspired menu and banquet room. The expansion of Dalia's Pizza at this new location will allow the business to fill a void that promises to attract families, students and working professionals to enjoy a high quality and diverse dinning experience. Further, the new Dalia's Pizza will contribute to the growing adjacent amenities and compliment the recently redeveloped Citrus Crossing Project. The Objective: To assist Dalia's Pizza in securing a Furniture, Fixtures and Equipment (FFE) Loan to expand the restaurant at the new location 855 E. Alosta Ave. allowing Dalia's the opportunity to connect their new concept with their loyal patrons by displaying the creative branding for the new location. AUTHORIZATION REQUESTED Based on the recent economic market and restrictive lending conditions, it is clear to staff that funding opportunities are scarce making it difficult for businesses to obtain funding for start-up costs. While fast food and other similar chain restaurants are stilling expressing some interest in opening new sites within the city, securing a full-service restaurant at the subject location may require a creative partnership between the Agency and Dali's Pizza to craft an attractive financial incentive. Consequently, staff requests that the Agency Board give budget authority not to exceed $50,000 to the Executive Director to participate in negotiations with Dalia's Pizza. Staff envisions that any financial assistance that would be offered would be limited to loans for FF&E and that such loans would carry the same forgiveness provisions as the Agency's other assistance agreements. FISCAL IMPACT There would be no immediate fiscal impact associated with negotiating a financial assistance agreement. The final amount, if any, would not exceed $50,000 and would be funded by the Agency. Such assistance would be brought back to the Board for final approval.