2013-11-07 OB MinutesMINUTES OF THE REGULAR MEETING OF THE
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON
HELD THURSDAY, NOVEMBER 7, 2013, IN THE
COUNCIL CHAMBER OF THE CITY HALL LOCATED AT
4305 SANTA FE AVENUE, VERNON, CALIFORNIA
MEMBERS PRESENT: W. Michael McCormick, Jonathan S. Fuhrman,
William J. Davis, Steven Reyes, Mary
Gallagher and David Vela
MEMBERS ABSENT: Alex Cherniss
The meeting was called to order at 4:02 p.m. by Chairperson
McCormick; Member Davis led the flag salute.
Legal Counsel Gustavo Lamanna announced that there are no
changes to the agenda.
PUBLIC COMMENT
Chairperson McCormick announced that this was the time allotted
for public comment and inquired whether anyone in the audience
wished to address the Board. No one responded.
MINUTES
1. It was moved by Vice Chairperson Fuhrman and seconded by
Member Davis to receive and file the Minutes of the
Regular Meeting of the Oversight Board of the Successor
Agency to the Redevelopment Agency of the City of Vernon
held October 3, 2013. Motion carried, 5-0, Member
Gallagher had not yet entered the meeting.
ORAL REPORTS
1. Notice of California Department of Finance approval of the
Long-Range Property Management Plan which includes the
sale of Angelus Can pursuant to Oversight Board
instruction under an approved contract for sale of 4900
Pacific Boulevard and disposition of Austin Trucking for
Government Use regarding 4528 Bandini Boulevard.
Legal Counsel Gustavo Lamanna summarized the communication that
approved the Long-Range Property Management Plan for the two
above referenced properties.
2. Update on the Recognized Obligation Payment Schedule for
period January 1, 2014 through June 30, 2014; response
from Los Angeles County Auditor-Controller on the
$1,407,382 reduction.
Legal Counsel Gustavo Lamanna advised that the County Auditor
Controller elected to reduce funding for the Recognized
Obligation Payment Schedule (“ROPS”) for period January 1, 2014
through June 30, 2014, by $1,407,382. Staff disagrees with the
reduction; however, the Department of Finance has adopted the
County’s position. Staff will be working on determine whether
there was legal justification for the reduction and will be
capturing the reduction in the next ROPS period.
Oversight Board Regular Meeting Minutes
November 7, 2013
Page 2 of 4
3. Response to Vice Chairperson Fuhrman’s Request for list of
City of Vernon Housing Properties.
Pursuant to the request, a list of City owned housing was
provided. There were no further requests from the Board.
4. Update on the Angelus Can, 4900 Pacific Boulevard,
transaction with GBD Properties.
Legal Counsel Gustavo Lamanna reported that during the due
diligence period, invasive testing on the property was
conducted. The testing indicated that approximately $340,000 in
remediation is needed. Whole Foods budgeted $100,000 for this
expense and is requesting a reduction of $240,000 in the sale
price to account for the difference in the expense.
Lamanna noted that reports justifying the remediation costs were
not received; therefore, staff has denied the request. They
additionally requested that the Successor Agency to the
Redevelopment Agency be named on the manifest, the Agency
declined to assume the responsibility.
The City of Vernon has alternatively offered economic tools to
assist Whole Foods with the additional financial burden.
Vice Chairperson Fuhrman supports Staff’s decision. He stated
that the property was purchased “as-is”.
In response to Member Vela’s inquiry, Lamanna advised that the
agreement can still be terminated as the sale is in escrow.
Vela is in agreement with Vice Chairperson Fuhrman that there
should be no reduction in the sale price.
At 4:10 p.m. Member Gallagher entered the meeting.
5. Brief reports on activities, other brief announcements,
and directives to staff.
In order to accommodate upcoming holidays, Legal Counsel Gustavo
Lamanna requests that the December 5, 2013, meeting be
cancelled, and that the January 2, 2014, meeting be rescheduled
to January 9, 2014.
Chairperson McCormick suggested that both meetings simply be
cancelled.
Vice Chairperson Fuhrman inquired on the status of the sale of
the Angelus Can property. In response, Lamanna opined that
Whole Foods has invested a great deal in the transaction; he is
optimistic that sale can be concluded in the upcoming weeks.
Successor Agency Staff Alex Kung noted that although remediation
costs were identified, the entire site is not contaminated.
Traces of diesel were found, but reasoned that that is to be
expected in an industrial city.
Vice Chairperson Fuhrman is in agreement with simply cancelling
the December 2013 and January 2014 meetings. He suggested
keeping January 9, 2014, open as a contingency date should a
special meeting need to be called to address the Angelus Can
property. It was moved by Gallagher and seconded by Davis.
Motion carried 6-0.
Oversight Board Regular Meeting Minutes
November 7, 2013
Page 3 of 4
CLOSED SESSION
At 4:20 p.m., it was moved Member Davis and seconded by Vice
Chairperson Fuhrman that the Oversight Board go into closed
session to discuss the items listed under closed session.
Motion carried, 6-0.
1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (6)
Government Code Section 54956.8
(1) Property: 4900 Pacific Blvd., Vernon, California
Agency negotiator: Alex Kung, Successor Agency staff
Negotiating parties: Whole Foods
Under negotiation: Price and Terms of Payment
(2) Property: 4900 Pacific Blvd., Vernon, California
Agency negotiator: Alex Kung, Successor Agency staff
Negotiating parties: Rexford Industrial
Under negotiation: Price and Terms of Payment
(3) Property: 4900 Pacific Blvd., Vernon. California
Agency negotiator: Alex Kung, Successor Agency staff
Negotiating parties: Xebec Realty Partners, Inc.
Under negotiation: Price and Terms of Payment
(4) Property: 4900 Pacific Blvd., Vernon, California
Agency negotiator: Alex Kung, Successor Agency staff
Negotiating parties: Bruce Gabay
Under negotiation: Price and Terms of Payment
(5) Property: 4900 Pacific Blvd., Vernon, California
Agency negotiator: Alex Kung, Successor Agency staff
Negotiating parties: Bon Appetit, LLC
Under negotiation: Price and Terms of Payment
(6) Property: 4900 Pacific Blvd., Vernon, California
Agency negotiator: Alex Kung, Successor Agency staff
Negotiating parties: CEG Development, LLC
Under negotiation: Price and Terms of Payment
Oversight Board Regular Meeting Minutes
November 7, 2013
Page 4 of 4
At 4:32 p.m., it was moved by Vice Chairperson Fuhrman and
seconded by Member Davis, that the Oversight Board exit closed
session.
Legal Counsel Gustavo Lamanna reported that the Board reaffirms
staff’s decision to not reduce the sale price pursuant to Whole
Food’s request. There were no reportable actions concerning the
other negotiating parties.
With no further business, at 4:33 p.m., it was moved by Member
Vela and seconded by Vice Chairperson Fuhrman to adjourn the
meeting. Motion carried, 6-0.
________________________
W. Michael McCormick
Chairperson
ATTEST:
_________________________
Ana Barcia
Deputy Secretary