The meeting was called to order at 9:30 a.m. by Chair Rising. As Recording Secretary, Sharron Hasley recorded the minutes of the meeting.

Transcription

1 MINUTES OF THE REGULAR MEETING OF THE CRA/LA, A DESIGNATED LOCAL AUTHORITY (SUCCESSOR TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA) HELD ON MAY 7, 2015 The Regular Meeting of the CRA/LA, a Designated Local Authority and Successor to the Community Redevelopment Agency of the City of Los Angeles, California was held at the Kenneth Hahn Hall of Administration, 500 West Temple Street, 3 rd Floor, Conference Room 374-A, Los Angeles, California, at 9:30 a.m. on May 7, The meeting was called to order at 9:30 a.m. by Chair Rising. As Recording Secretary, Sharron Hasley recorded the minutes of the meeting. Copies of exhibits are available upon request and payment of the nominal copying charges. Tapes of the meeting are available for one year from the date of adoption of the minutes for this meeting and are in the Records Department. Members of the public may listen to the tapes by making a request to the Records Department. ROLL CALL The Recording Secretary took the roll and noted the following present: Nelson Rising, Chair Mee Semcken, Vice Chair Timothy McOsker, Board Member The Chair declared a quorum in attendance. Also in attendance were: Steve Valenzuela, Chief Executive Officer, CRA/LA-DLA Tom Webber, Legal Counsel, CRA/LA-DLA

2 CONSENT ITEMS Chair requested that, in the absence of public speakers and requests for presentations by the Governing Board on consent items, the Board Members consider a consent calendar to approve Items 1, 2, 3 and 4. Ms. Semcken made a motion to approve Items 1, 2, 3 and 4. Mr. McOsker seconded the motion. 1. APPROVAL OF MARCH 5, 2015 REGULAR MEETING MINUTES. 2. WESTERN GAGE REMEDIATION. CONTRACT WITH NINYO & MOORE TO REMEDIATE THE ENVIRONMENTAL CONTAMINATION OF THE BROWNFIELD SITE LOCATED AT 6300 S. WESTERN AVENUE. That the Governing Board authorize the Chief Executive Officer or designee to execute a contract with Ninyo & Moore in an amount up to $220,000 to perform the remediation of the environmental contamination of the brownfield site located at 6300 Western Avenue. 3. CLEANTECH MANUFACTURING CENTER SITE. AMENDMENT TO CONTRACT NO WITH E2 MANAGETECH, INC. TO INCREASE CONTRACT AUTHORITY IN CONNECTION WITH REMEDIATION OF THE PROPERTY LOCATED AT 2455 E. WASHINGTON BOULEVARD. That the Governing Board authorize the Chief Executive Officer or designee to execute an amendment to Contract No with E2 ManageTech, Inc. to increase the maximum contract authority by $66,900, from $1,760, to $1,827, LEASE AMENDMENT W. 25 TH STREET. AUTHORIZATION TO EXECUTE A SECOND AMENDMENT TO THE LEASE AGREEMENT WITH ADRIENNE O BRIEN AND THE BENTON SIMMRIN IRREVOCABLE TRUST FOR THE USE OF THE PROPERTY LOCATED AT 1119 W. 25 TH STREET. That the Governing Board authorize the Chief Executive Officer or designee to execute a Second Amendment to the Lease Agreement with Adrienne O Brien and the Benton Simmrin Irrevocable Trust for the use of the 10,350 square foot facility located at 1119 W. 25 th Street adding two years for an expiration date of December 31, ACTION ITEMS 5. MEXICAN AMERICAN LEGAL DEFENSE AND EDUCATION FUND PROPERTY MANAGEMENT CORPORATION ( MPMC ). ACTION RELATED TO THE SATISFACTION OF THE $2,180,000 OUTSTANDING LOAN MADE TO MPMC FOR THE REHABILITATION OF THE HISTORIC BANKS-HUNTLEY BUILDING LOCATED AT 634 SOUTH SPRING STREET. 2

3 Mr. Cesar DelaCruz, Jr., Sr. Finance Officer, presented the item. Following the presentation Chair Rising called for public comment. Public comment was heard from Mr. Zac Guevara, Chair, Board of Directors, MALDEF. The Governing Board had brief comments and questions. Ms. Semcken then moved that the Governing Board, subject to Oversight Board approval, authorize the Chief Executive Officer or designee to execute an Accord and Satisfaction Agreement to accept $1,000,000 from MPMC as full and final settlement of the deferred loan of $2,180,000, which matured on May 3, Mr. McOsker seconded the motion. 6. RECORDS RETENTION POLICY. ADOPTION OF A RECORDS MANAGEMENT AND RETENTION POLICY, AND AUTHORIZATION FOR THE CHIEF EXECUTIVE OFFICER TO IMPLEMENT THE POLICY. Mr. Barron McCoy, Chief Operating Officer, joined by Ms. Martha Estrada, Special Projects Officer, presented the item. Following the presentation, the Board had questions regarding destroying documents related to ongoing litigation. Mr. McCoy stated that documents pertaining to litigation would not be destroyed. Moreover, the Successor Agency has implemented procedures to ensure that the Records Department retains any document determined to be a permanent record. The Governing Board then inquired about the cost to digitize permanent records. Mr. Steve Valenzuela, Chief Executive Officer, stated that the Successor Agency is currently exploring various solutions that for costeffectiveness and that are compatible with the Successor Agency s current document imaging system. The Successor Agency s recommendations will be presented to the Governing Board in the near future. Any costs to digitize permanent records will be identified in a future Administrative Budget and ROPS schedule. Ms. Semcken then moved that the Governing Board take the following actions: (1) Adopt a Records Management and Retention Policy; and (2) Authorize the Chief Executive Officer to implement the adopted policy. Mr. McOsker seconded the motion. 7. REAL ESTATE BROKERS. AUTHORIZATION TO ASSIGN THE BALANCE OF THE FOR SALE REAL PROPERTY ASSET PORTFOLIO TO CUSHMAN & WAKEFIELD. Mr. Barron McCoy, Chief Operating Officer, presented the item. Following the presentation, Mr. Valenzuela added that Cushman & Wakefield and CBRE were the two real estate brokerages firms selected from the CRA/LA s prequalified list to submit proposals to market and sell the For Sale property assets of the LRPMP. Mr. Valenzuela indicated that a third firm, Jones, Lang, LaSalle (JLL), was also on the prequalified list and submitted a proposal; the Successor Agency subsequently determined that Cushman & Wakefield and CBRE were the two best qualified firms to perform the work by virtue of their experience, staffing resources and familiarity with all project areas where assets are 3

4 located. The Successor Agency staff has recently informed JLL that assets in the For Sale category had been reduced in number following the City s optioning of certain properties for future development and the separate treatment of certain high-value assets (whose disposition is set forth in underlying ground leases and DDA s). Mr. Valenzuela further stated that he had advised the JLL representatives of staff s intentions to allocate the balance of the portfolio to Cushman & Wakefield, and that JLL had not objected. Further, staff believes that having one firm manage the entire For Sale portfolio would provide greater accountability for all interested stakeholders. Mr. Valenzuela then provided the Governing Board with another option for their consideration, which was to reserve a portion of the For Sale portfolio until Cushman and Wakefield, has demonstrated performance on their current allocation. The Governing Board held a brief discussion and Ms. Semcken moved that the Governing Board authorize the CEO or designee to execute a listing agreement with Cushman & Wakefield for the balance of the real property assets in the For Sale category of the Long Range Property Management Plan (LRPMP) to Cushman & Wakefield. Mr. McOsker seconded the motion. 8. CHIEF EXECUTIVE OFFICER S REPORT Mr. Steve Valenzuela, Chief Executive Officer, reported on outstanding DOF items. The Grand Central Square loan receivable is still under review by DOF; no additional information has been requested of Successor Agency staff. DOF plans to have more information by May 15, DOF has completed its review on the final and conclusive determination submitted in December 2014 on the amounts due to the county and developer for the Phase 1 (Parcel Q) component of the Grand Avenue Project. DOF estimates that a determination letter should be issued by mid May DOF denied the termination agreement with Bamboo Plaza Public Garage. The Oversight Board will need to revise its resolution to affirmatively state that the proposed agreement is in the best interests of the affected taxing entities. There is no further action required from the Governing Board. Mr. Valenzuela then reported that management has finalized its analysis of the Successor Agency s staffing plan and will present its staffing recommendation at the June 2015 board meeting, including a proposed reduction in force later this year. Management has also been meeting with AFSCME representatives to keep them apprised. 9. REPORT TO THE GOVERNING AND OVERSIGHT BOARD ON CITY OF LOS ANGELES MATCHING GRANTS 6-MONTH REPORTING 4

5 The report was provided to the Governing Board for informational purposes. The Successor Agency will continue to update the Governing Board on the city s progress to implement the grants. 10. PUBLIC COMMENT Public comment was heard from Mr. O Malley Miller, MOCA; Mr. Michael Harrison, MOCA; Ms. Maria Seferian, MOCA; Mr. David Zoraster, CBRE; Mr. Philippe Vergne, MOCA; and Mr. Seth Weintraub, Colburn School who spoke regarding the appraisal for the acquisition of the fee for MOCA s ground lease. Public comment continued and was heard from Ms. Joyce Dillard. 11. CLOSED SESSION RECESS 1. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION ( (d)(1) of the Govt. Code) Independent Living Center of Southern California v. City of Los Angeles, CRA/LA, et al (US District Court No.SACV ). 2. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION (Section )(a) of the Govt. Code) (1 case) 3. REAL PROPERTY NEGOTIATIONS:(Government Code Section ) Conference with real property negotiators regarding the price and terms for the purchase of an approximately 304 space parking garage and adjacent public plaza located at Grand Avenue and Second Street in Los Angeles. Negotiators: Steve Valenzuela, Barron McCoy, and Thomas Webber. Negotiating Party: The Broad Foundation. 4. REAL PROPERTY NEGOTIATIONS: (Government Code Section ) Conference with real property negotiators regarding the price and terms for the sale of fee interest in 38,536 square foot parcel of real property located at 230 Grand Avenue, Los Angeles (LRPMP Asset I.D. 244). Negotiators: Steve Valenzuela, Barron McCoy, and Thomas Webber. Negotiating Party: Museum of Contemporary Art. RESUMPTION OF MEETING Mr. Tom Webber, CRA/LA-DLA Legal Counsel, reported that the Governing Board took no reportable action in Closed Session. 5

6 12. ADJOURNMENT There being no additional business to come before the Board, upon motion made, seconded and carried unanimously, the meeting was adjourned at 11:15 a.m. Sharron G. Hasley Recording Secretary 6