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Resolution No. 73231 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 7323 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON GRANTING A VARIANCE TO LILLIAN KAMPH FROM SECTION 26.4.2-8, DEVELOPMENT STANDARDS, OF THE COMPREHENSIVE ZONING ORDINANCE, FOR THE PROPERTY LOCATED AT 3063 FRUITLAND AVENUE IN THE CITY OF VERNON WHEREAS, Lillian Kamph owns the property located at 3063 Fruitland Avenue in the City of Vernon and is requesting a variance from Section 26.4.2-8(c), Development Standards, of the Comprehensive Zoning Ordinance ("Zoning Ordinance") ; and WHEREAS, the property is unique in that the existing building measures approximately 30,902 square feet, was built with 2 non -conforming truck loading spaces, and the building currently contains both warehousing and distribution operations; and WHEREAS, Section 26.4.2-7 (b) of the Zoning Ordinance requires two truck loading spaces for buildings with a gross floor area of between 25,001 and 50,000 square feet in size; and WHEREAS, Section 26.4.2-8 (c) of the Zoning Ordinance specifies that each truck loading space shall be a minimum of 10 feet wide and 65 feet long; and WHEREAS, Section 26.4.6-4 (c) of the Zoning Ordinance provides that a non -conforming building must comply with these standards within five years of April 18, 1989 unless a variance is granted; and r . f 1 WHEREAS, Lillian Kamph has requested permission to 2 utilize 2 non -conforming truck loading spaces on Fruitland 3 Avenue; and 4 WHEREAS, 3063 Fruitland Avenue is located in the M 5 zone and the operation is consistent with the objectives of 6 the General Plan and Zoning Ordinance; and 7 WHEREAS, strict application of the off-street 8 parking access and loading requirements of the Zoning 9 Ordinance would create an unreasonable hardship in that 10 recessing the non -conforming truck loading spaces would 11 require the applicant to demolish a significant portion of 12 its property or acquire additional property; and 13 WHEREAS, The existing use does not and will not 14 adversely affect the surrounding area because the applicant 15 has agreed to use shorter trucks at the truck loading space 16 fronting Fruitland Avenue to ensure that vehicles will not 17 extend into the street right-of-way while in the loading 18 space; and 19 WHEREAS, with approval of the variance the 20 facility will have the minimum number of truck loading 21 spaces as required by Section 26.4.2-7(b) of the Zoning 22 Ordinance; and 23 WHEREAS, the City Council has received a Staff 24 Report dated April, 19 1999, upon which it has relied in 25 making the foregoing recitals; and 26 WHEREAS, the City Council of the City of Vernon 27 held a hearing on said application for a variance on May 4, 28 1999. -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained herein -above are true and correct. SECTION 2: A variance from Section 26.4.2-8 of the Comprehensive Zoning Ordinance, requiring all truck loading spaces to be 10 feet wide by 65 feet long, is hereby granted for the parcel of property at 3063 Fruitland Avenue. SECTION 3: The variance granted is subject to the following conditions: a. The trucks using the truck loading spaces fronting Fruitland Avenue shall be limited to less than 49 feet so that no truck shall extend into the street right-of- way as shown on the Master Plan of Streets, dated June 16, 1992 b. All existing and future tenants shall be notified of this restriction and a condition stating this shall be placed in all future leases. C. This variance shall automatically expire at the time of any expansion or structural alteration of the building, or on August 19, 2009, whichever occurs first, at which time the use of the parking, access or loading area(s) allowed by this variance shall be discontinued unless brought into compliance with all applicable standards for parking, access and loading areas set forth in the Comprehensive Zoning Ordinance. It is the intent of the City Council that said parking, access or loading area(s) be -3- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 treated in the same manner as a legal nonconforming use subject to section 26.4.E-4(b). SECTION 4: Noncompliance with these conditions shall constitute sufficient grounds for the City Council of the City of Vernon to void this variance and require the application of Zoning Ordinance Section 26.4.2-8 and the authorized truck loading space requirement. SECTION 5: The City Clerk of the City of Vernon shall certify to the passage of this Resolution and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 4th day of May, 1999 ��LEON��ISC. MAL URG, MJyor ATTEST• BRUCE V. MALKENHORST, City Clerk ME 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 7323 was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, May 4, 1999 and thereafter was duly signed by the Mayor of the City of IVernon. (SEAL) BRUCE V. MALKENHORST, City Clerk -5- SUPPORTING DOCUMENTS �. FILED MAY 2 01999 3. MOR ORMA i r ULERK NOTICE OF EXEMPTION TO: Office of Planning and Research FROM: City o Vernon 1400 Tenth Avenue 4305 Santa Fe Avenue Sacramento, CA 95814 Vernon, CA 90058 X County Clerk County of Los Angeles Environmental Filings 12400 E. Imperial Hwy. Rm 1101 Norwalk, CA 90650 Project Title Lillian Kamph Project Location - Specific 3063 Fruitland Avenue, Vernon, CA 90058 Project Location - City Project Location - County Vernon - Los Angeles Description of Nature, Purpose and Beneficiaries of Project Lillian Kamph has requested a variance from the Comprehensive Zoning Ordinance Section 26.4.2-8(c), Development Standards for the property •located at 3063 Fruitland Avenue in the City of Vernon. The variance is to allow the use of two non -conforming truck loading spaces. All the loading spaces, however, will be restricted to trucks that do not extend into the Public Right -of -Way. Name of Public Agency approving project City of Vernon Name of Person or Agency carrying out project Lillian Kamph Exempt Status: (check one) Ministerial (Sec. 21080 (b) (1); 15268 Declared Emergency (Sec. 21080 (b) (3); 15269(a)); Emergency Project (Sec. 21080 (b) (4); 15269(b) (c)). X_ Categorical Exemption - Class 1 (Sec. 15301) Statutory Exemptions Reasons why project is exempt: The project is egorically exempt from CEQA because it is an existing faci Fit expansion of use as described in Section 15301. o Area Code/Telephone/Extension Samuel "Kevin" Wilson 323/583-8811/245 Date received for filing: THIS NOTICk WAS poSTSD ON MAY 2 0 1999 UNTIL RN 2 1 W ISTRAR-RECORDUR/COUNTY CLER9t April 21, 1999 TO: Bruce V. Malkenhorst, City Administrator FROM: Samuel "Kevin" Wilson, Director of Community Services & Water SUBJECT: VARIANCE - LILLIAN KAMPH AT 3063 FRUITLAND AVENUE Lillian Kamph has submitted a complete application for a variance. They are proposing to utilize two non -conforming truck loading spaces at their existing facility located at 3063 Fruitland Avenue. It is recommended that you receive this application and that a public hearing be set for May 4, 1999. SKW: pp Attachment Memo to Set PH.wpd April 28, 1999 TO: Bruce V. Malkenhorst, City Administrator FROM: Samuel "Kevin" Wilson, Director of Community Services & Water SUBJECT: VARIANCE - Lillian Kamph at 3063 Fruitland Avenue Lillian Kamph has requested a variance from the Comprehensive Zoning Ordinance Section 26.4.2-8(c), Development Standards for the property located at 3063 Fruitland Avenue in the City of Vernon. The variance is to allow the use of two non- conforming truck loading spaces. All the loading spaces, however, will be restricted to trucks that do not extend into the Public Right -of -Way. Herewith is the following evidence: 1. Staff report. 2. Application for variance. 3. Notice of Public Hearing, copies of notification letters to owners and tenants in the area and affidavits of posting and mailing. It is recommended that the variance be granted with the following conditions: a. The usage of the two truck loading spaces shall be limited so that no truck parked at the loading docks shall extend into the street right-of-way as shown on the Master Plan of Streets, dated June 16, 1992. b. All existing and future tenants shall be notified of this restriction and a condition stating this shall be placed in all future leases. C. The owner of the property shall provide to the City of Vernon a utility easement for the overhead electrical lines located on the applicants property in a form and manner subject to approval of the Director of Community Services and Water. d. This variance shall automatically expire at the time of any expansion or structural alteration of the building, or on August 19, 2009, whichever occurs first, at which time the use of the parking, access or loading area(s) allowed by this variance shall be discontinued unless brought into compliance with all applicable standards for parking, access and loading areas set forth in the Comprehensive Zoning Ordinance. It is the intent of NOTICE OF PUBLIC HEARING The City of Vernon will conduct a Public Hearing which you may attend. Place: Vernon City Hall City Council Chambers 4305 Santa Fe Avenue Vernon, CA 90058 Time: Tuesday, May 4, 1999 at 5:00 p.m. Applicant: Lillian Kamph The purpose of the hearing is to obtain testimony from affected and/or interested persons regarding this application. The public is also invited to submit written comments regarding the request prior to the Hearing. Request: Grant a variance to allow the applicant to utilize two non -conforming truck loading spaces. Property Involved: 3063 Fruitland Avenue in the City of Vernon (see reverse side) Review of the file: The application, maps, and supporting information are available in the office of Community Services, Vernon City Hall, 4305 Santa Fe Avenue, between the hours of 7:15 a.m. and 5:15 p.m. Monday through Thursday. If you challenge the granting of this Variance or any provisions thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. Bruce V. Malkenhorst -2- April 28, 1999 the City Council that said parking, access or loading area(s) be treated in the same manner as a legal nonconforming use subject to section 26.4.E-4(b). SKW:pp Attachments 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 7323 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON GRANTING A VARIANCE TO LILLIAN KAMPH FROM SECTION 26.4.2-8, DEVELOPMENT STANDARDS, OF THE COMPREHENSIVE ZONING ORDINANCE, FOR THE PROPERTY LOCATED AT 3063 FRUITLAND AVENUE IN THE CITY OF VERNON Page 1 of 4 APPLICATION FOR VARIANCE Application is hereby made to the City of Vernon, petitioning for a variance for the following described property: Legal description (give exact legal description) : Five (500) Hundred acres tract of the Los Angeles Fruit Lot 32 (Parcel #6303-029-006) e,_rgj location (give street address) : 3063 Fruitland Avenue Name of Applicant (s) Lillian Kamph (print or type name of business) Mailing address_ 1320 East Ocean Front, Balboa, CA 92661 Phone No(949) 675-6660 fgcord Owner (s) of property: Name Lillian Kamph Mailing address 1320 East Ocean Fronts Balboa, CA 92661 - Phone No. (949) 675-6660 Pr2ggrty Qwner(s) representative: Name Otto L. Aumack, Jr. (DAUM Commercial Real Estate) Mailing address 123 South Figueroa Street, Suite 400 Los Angeles phone No. (213) 626-9101 California 90012 relationship to owner(s) (engineer, contractor, attorney, purchaser, lessor) Real Estate Agent Written consent of owner (s) must be attached. Present use of property: Empty Present Zoning: Vernon Proposed use of property: __Warehousing/manufac ur;ng/off;cas for bedding and any other related legal uses. How long has owner held title to this property? 1983 Are there any easements controlling the use of this propert No / Yes described Expiration date Are there any private or deed restrictions controlling use of this property? ( :) No Yes, describe Page 2 of 4 Variance applied for (described in detail the nature and purpose of this request for which the premises are to be used) attach additional sheet(s) if necessary: To seek a waiver of the 651 truck indenture setback that applies to the Fruitland Avenue indenture. NOTICE TO APPLICANT: In the variance procedure it shall be shown that the following five (5) conditions exist in reference to the property being considered. The applicant should answer the following statements. If you have difficulty finding reasonable answers to the statements contained in this application it may be an indication that your request has insufficient factors to justify approval. (Attach additional sheet(s) if necessary. (1) That special conditions and circumstances exist which are peculiar to the land, structure, or building involved and which are not generally applicable. to other lands, structures, or buildings in the same vicinity and zone: The Fruitland Avenue truck indenture from the sidewalk to the loading dock floor is 501 and any larger truck than 481 will be instructed to use the rear 651, from sidewalk, loading dock. (2) That literal interpretation of the provisions of this ordinance would deprive the applicant of rights commonly enjoyed by other propertied in the same vicinity and zone in which the property is located, under the terms of this Chapter. The Fruitland Avenue truck indenture will not be used to accommodate any vehicle that would extend onto public right-of-way. Page 3 of 4 (3) That the special conditions and circumstances do not result from actions of the applicant: The existing building has both a recessed interior loading dock and exterinr rear loading dock. (4) That granting the variance requested will not confer on the applicant any special privilege that is denied by this Chapter to other lands, structures, or buildings in the same vicinity and zone in which the property is located: Our understanding is that this waiver requested shall apply to any occupancy of -the - Leased premises and the Lease will be specific in so indication of this restrigtion. (5) That the granting of such variance will be in harmony and not adversely affect the Comprehensive General Plan: We understand that the law is to augment the plan to keep trucks fron interfering with public right-of-way and we will see that this continues. NOTE: Non -conforming use of neighboring lands, structures, or buildings shall not be considered grounds for the issuance of a variance. Are the required site and design plot plans showing the area covered in the legal desgx.3,ption and all existing and proposed improvements attached? No/es) Are the required three (3) area maps attached? No/ es n3!17/99 13.57 FAX 2136210003 DAUM COMMERCIAL t�007, 012 Page 4 of 4 Is there a certified list attached of names and mailing addressee of all property owners within 300' of a exterior boundaries of the property in this application? No es is the required fee enclosed? N /Y Make check or money order payable o e City of Vernon. I declare -under penalty of perjury that to the best of my knowledge and belief the foregoing is true, complete, and accuraite. Si e D pro erty_owner(s) or owners representative 03/17/99 13:57 FAX 2136210903 DAUhi Cp4jMERC,IAL 003/012 PROPERTY OWNERS LIST STATEMENT The undersigned has duly prepared the attached "Property owners List". This list includes all of the names, and respective addresses, of persons being owners of property any part of which is within 300 feet of the outer boundaries of the property in subject zoning case. This information is to be obtained from the latest available Los Angles County Tax Assessment Roll. This list was prepared on bo,`Zs; I q 9 1 from the Tax Roll maintained at X/A) SSP-- (nam "nd loc/ltion f office) It is understood that the accuracy and completeness of this list is the responsibility of the applicant. _ Signed: who prepared list) On this day of 19gf71 before me the undersigned a Notary Public in and for said county and State, personally appeared known to me, or proven to me to be the person that executed the within instrument. WITNESS my hand and offici#Qp a1. Notary Public Hi-fi andJoor said County and `9'tate My commission es: � 2Q� OTTO L. RUMACK, JR. CVLOMM. # 11s8427 NOTARY PUBLIC-CALIFORNIA LOS ANGELES COUNTY A COMM. EXP. JUNE 26, 2002 - 0 Si d: (Applicant) � �.,/V a �j yy//.//.//-- //��yy�� f(.i�,rrae. �uvtr.�lriz� jr x• l.'.U.��Zi�•'yLU�i��U�'�'ruxrir�srf- A CORPOETE DIY _. March 25, 1999 CITY OF VERNON 4305 Santa Fe Avenue Vernon, CA 90059 R,E; Variance for 3061 Fruitland Avenue, Vemon, CA 90058 TO W 140M IT MAY CONCERN' Pacific Designs, established in 1985, is,a mangier of bedding products. The campar%Y assembles and mmufacumm #2 types o f beddh* aoceakades i am comforters to piilowa. The desire to relocat_ their opemdon #learn Los Angeles to Vernon is the reed for additional expaasion space as wall as Vernon's pro business Cnviro!>tmcesnnt For manufaoturers. The request for the Variance oii the Fruitland Avetlua PrepertV is to seek a waiver of tho 65' truck indents.urc setback that appliea to the Fruitbmd Av*VUe indenture. This indcntum will 2M be used to accommodate any vebick that would extend onto the public right of way, With the existing building having a Cxmior rMatU&&ng dock tarp enougbL to accommodate larger vehicles, Pacific Designs finds tho raotiicfion on the fiyont leading positions tolerable for its o#�ersatians. It is Pacific: Designs undrrsttmdin$ tip the l will be specif is iA indicating this restriction and Pacific Designs fiuther understands thm the lave is to AmBa tkt Ehe plan to keep trucks f m imertering with public right -or -way anti Pacific Designs wffl gee that this continues. 5inv.. rely, SAr016bb 4619 S. ALAMEDA STREET, LOS ANGELES, CALIFORNIA 90058 • TEL: (323) 234-6131 • FAX, (323) 234-5086 ff AW C�.�` ✓_../ �_lcrruexclurri- �f " rrxrrnrf f�c�rre, �`rnrtr.�zifa�r A CORPORATE MV. March 25, 1999 CITY OF VERNON 4303 Santa Fe Avenue Vernon, CA 90059 R.E, Variance for 3063 Fruitland Avenue, Vemmm, CA 90058 -i0 WHOM IT MAY CONCERN - Pacific 1>esignns, established in 1985. is a mawfamuez of bedding products. The company assernble;s quid mmufactures $A types of'beddistg ao eswrie s froth ewnforters to pillows. The desire to relocatz their operation from Los Angeles to lie non is the need for additional txpansion space as well as Vernon's pro business a nvironMent for n=ufactuxerc. The request for the Varia=v nit the Fruitland Avenue Property is W seek a waiver of the 63, truck indenture setback that applies to the Fruitlaul; Avevm . ibis indcnturt will = be used to accommodate any ve-hide that would extend onto the public right of way, With the existing isuilding. haying a exterior rear!liosding dock large enoug%so accom.-nodate larger vehicles, Pacific Designs finds the regtiiptlon on the front loading positions tolerable for its operations. It is Pacific Designs understanding that ihe Lease vvill be specific is indicating this restriction and Pacific Designs further understands thzt the law is to aunt the plan to keep trucks from in.terfar ing with public right -or -way and Pacific Designs will see that this cantinues. Sin"rely: DESIGNS Mike Dated: Z sNua�t,a 4619 S. ALAMEDA STREET, LOS ANGELES, CALIFORNIA 90058 • TEL. (323) 234-5131 - FAX; (323) 234-5086 /'ram r / %rr� ■ • f� L �"f (�`,//�/ // �.-'CICYIlt�ClG�!/'E'!"' �U�' � �uxrusrf• �rre ./illl�/�/Jl�!%�' A CORPORATE DIV. _ March 25, 1999 CITY OF VERNON 4305 Santa Fe Avenue Vernon, CA 90059 RE: Variance for 3063 Fruitland Avenue, Ve mon, CA 90058 TO w140M IT MAY CONCERN: Pacific Designs, established in 1985. is.a manuftwor of bedding products. Tice: compariy asscmblc5 and maztufacWreS 02 types af.bedding 000e8WACS from c0mfortcrs to pillows. The desire to relocate their operwion ftm Los Angeles to Vernon is the aced for additional txpans ion space as well as Vernon's pro business envirorment for nmufWTW..M. Tho request for the Variance on the Fraitlerd Av=w PrapertX is to seek a waiver of the 65' truck indenturc setback that applies to tuna Fruitland AVa*Ue indenture. This ilydcnture will =1 be used to accommodate unyvcbick the would extend onto the public right of way, With the existing building having a extedor rm 46eding dock large enough to accommodate larger ,,•thioles, pacific Designs finds** res6jpdon on the front loading positions tolerable for its opezatiozis. It is Pacific Dasigus uadetstattding tlaa t,tiic Lase will be spedfic iz indicating this restriction and Facitic'Designs further undmtsnds thatt the law is to auarkt the plan to keep trucks from interfering with public right-m6way and Pacific D4cfig7ns Will. see that this tontiftues. Sinoorely, DESIGNS Mike p Dated; 22, 1f SA)03465 . 4619 S. ALAMEDA STREET, LOSANGELES, CAUFORNIA 90058 • TEL; (323) 234-5131 • FAX. (323) 234-5086 City of Vernon NOTICE C 4305 Santa Fe Avenue Vernon, Califomia 90058 (323) 583-8811 The City of Vernon will conduct'a Public Hearing which you may attend. Place: Vernon City Hall City Council Chambers 4305 Santa Fe Avenue Vernon, CA 90058 Time: Tuesday, May 4, 1999 at 5:00 p.m. Applicant: Lillian Kamph The purpose of the hearing is to obtain testimony from affected and/or interested persons regarding this application.. The public is also invited to submit written comments regarding the request prior to the Hearing. Request: Grant a variance to allow the applicant to utilize two non -conforming truck loading spaces. Property Involved: 3063 Fruitland Avenue in the City of Vernon (see reverse side) Review of the file: The application, maps, and supporting information are available in the office of Community Services, Vernon City Hall, 4305 Santa Fe Avenue, between the hours of 7:15 a.m. and 5:15 p.m. Monday through Thursday. If you challenge the granting of this Variance or any provisions thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. ER17CE V . MALKENHORS City Administrator/ ity Clerk i.? CITY COUNCIL IX", S C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem Wm. 'BILL" DAVIS Councilman H. "`CARRY" GONZALES Councilman W. MICHAEL McCORMICK Councilman BRUCE V. MALKENHORST City Administrator/City Clerk FAX (323) 581-7924 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 April 22, 1999 Interested parties or property owners: DAVID B. BREARLEY City Attorney FAX (626) 330-5818 KEVIN WILSON Director of Community Services & Water FAX (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX (323) 583-1983 DAVE TELFORD Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX (323) 583-5236 Enclosed herewith for your information is a Notice of Public Hearing to consider an application for variance for the property at 3063 Fruitland Avenue in the City of Vernon. The applicant, Lillian Kamph, is requesting a variance from Section 26.4.2-8(c), Development Standards, of the Comprehensive Zoning Ordinance to allow the use of 2 non -conforming truck loading spaces. The building was originally designed with one conforming and two non -conforming truck loading docks measuring approximately 10 and 12 feet in width and 50 feet in length. The currentComprehensive Zoning Ordinance requires truck loading spaces to be 10 feet in width and 65 feet in length.- All the loading spaces, however, will be restricted to trucks that do not extend into the Public Right -of - Way. A copy of the application and supporting evidence is available for public review at my office between the hours of 7:15 a.m. and 5:15 p.m.' Monday through Thursday. You are welcome to attend the meeting on May 4, 1999 or to send written comments prior to the meeting if you so desire. This notice is intended for interested parties or property owners within the project area. If you are no longer a property owner in this area, please forward this notice to the new property owner. Direc S KW : pp Enclosure n, P.E. s r- Water AFFIDAVIT OF POSTING STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF VERNON. ) I, Peter Pirnejad, Planning Assistant of the City of Vernon, do hereby certify that I did, on the 22°d day of April, 1999, post three (3) copies of: NOTICE OF PUBLIC HEARING to be held 05/04/99, (see attached copy) regarding a variance application for Lillian Kamph. to utilize 2 nonconforming truck loading docks at 3063 Fruitland Avenue in the City of Vernon. One in each of the following places to wit: At the northwest corner of 38th Street and Santa Fe Avenue; the northeast corner of Leonis Boulevard and Pacific Boulevard; and on the bulletin board in the lobby of the City Hall of the City of Vernon, located at 4305 Santa Fe Avenue, all in said City, there being no newspaper of general circulation printed and published in the City of Vernon. Date: y Peter Pirnejad, Planning Assistant State of California ) ) ss. County of Los Angeles ) On t �3ggg before me, V V a Rn Notary Public, personally appeared Peter Pirnejad, personally known to me (or known to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which executed the instrument. the person acted, MARTHA Vr' LENWELA Comm! 4.41098533 WITNESS my hand and of f icialeal �NotaryPw�.:i;—CcOomNp Los Angeles County My Comm. Expkw Moy 23.= �iIZZ� AFFIDAVIT OF MAILING I, Peter Pirnejad, declare as follows: 1. That I am employed by the City of Vernon in the position of Planning Assistant in the Department of Community Services. 2. That on April 22, 1999 I mailed a copy of NOTICE OF PUBLIC HEARING to be held on May 4, 1999 along with the attached letter regarding a variance application for Lillian Kamph. to utilize 2 nonconforming truck loading docks at 3063 Fruitland Avenue, to the owners, tenants and interested parties on the attached lists, by United States Mail with postage prepaid. , a= � STAFF REPORT LILLIAN KAMPH 3063 FRUITLAND AVENUE VARIANCE APPLICATION (April 19, 1999) Lillian Kamph has requested a variance from the Comprehensive Zoning Ordinance Section 26.4.2-8(c), Development Standards for the property located at 3063 Fruitland Avenue in the City of Vernon. The variance is to allow the use of two non -conforming truck loading spaces. The building was originally designed with one conforming and two non -conforming truck loading docks measuring approximately 10 and 12 feet in width and 50 feet in length. The current Comprehensive Zoning Ordinance requires truck loading spaces to be 10 feet in width and 65 feet in length. The applicant has agreed to only use trucks that do not extend into the Public Right -Of -Way thus complying with the length requirements for truck loading spaces. The building is 30,902 square feet and is proposed to be used for warehousing and distribution. The previous occupant, American Laminating applied for a similar variance in 1993. As a condition of the Variance the applicant was limited to using trucks that where not in excess of 49 feet. Section 26.4.2-7(b) of the Comprehensive Zoning Ordinance requires two truck loading spaces for buildings with a gross floor area of between 8,001 and 25,000 square feet in size. Section 26.4.2-8 (c) of the Comprehensive Zoning Ordinance -1- specifies that each loading space shall be a minimum of 10 feet wide and 65 feet long and Section 26.4.6-4 (c) provides that the non -conforming building must comply with these standards within five years of April 18, 1989 unless a variance is granted. The proposed site is surrounded by industrial uses compatible with the proposed use. No potentially significant impacts are expected to result from the project. The project is categorically exempt under Section 15301 of the California Environmental Quality Act because it is an existing facility with no expansion of use. A Notice of Exemption will be prepared and filed with the County Clerk. Staff proposes the following findings: a) Recessing the non -conforming truck loading spaces to meet dimensional requirements would require the applicant to demolish a significant portion of their property or acquire additional property which would cause a significant financial hardship. b) This variance will not adversely affect the interest of the public or the interests of other residents and property owners within the vicinity of the premises because the applicant has agreed to use shorter trucks at the truck loading space fronting Fruitland Avenue to ensure that vehicles will not extend into the street right-of-way while in the loading space. c) With the approval of this variance the facility meets the minimum number of conforming truck loading spaces as required by section 26.4.2-7(b) of the Comprehensive Zoning Ordinance. The operation is in conformance with the Comprehensive Zoning Ordinance and the General Plan. Therefore, it is -2- `X , ,y recommended that the variance be granted with the following conditions: a. The usage of the two truck loading spaces shall be limited so that no truck parked at the loading docks shall extend into the street right-of-way as shown on the Master Plan of Streets, dated June 16, 1992 b. All existing and future tenants shall be notified of this restriction and a condition stating this shall be placed in all future leases. C. The owner of the property shall provide to the City of Vernon a utility easement for the overhead electrical lines located on the applicants property in a form and manner subject to approval of the Director of Community Services and Water. d. This variance shall automatically expire at the time of any expansion or structural alteration of the building, or on August 19, 2009, whichever occurs first, at which time the use of the parking, access or loading area(s) allowed by this variance shall be discontinued unless brought into compliance with all applicable standards for parking, access and loading areas set forth in the Comprehensive Zoning Ordinance. It is the intent of the City Council that said parking, access or loading area(s) be treated in the same manner as a legal nonconforming use subject to section 26.4.E-4(b). -3- r J � CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro -Tern Wm. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL McCORMICK Councilman BRUCE V. MALKENHORST City Administrator / City Clerk FAX (323) 581-7924 City Council City of Vernon DAVID B. BREARLEY City Attorney FAX: (626) 330-5818 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 Honorable Members: KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 DAVE TELFORD Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 April 28, 1999 Lillian Kamph has requested a variance from the Comprehensive Zoning Ordinance Section 26.4.2-8(c), Development Standards for the property located at 3063 Fruitland Avenue in the City of Vernon. The variance is to allow the use of two non- conforming truck loading spaces. All the loading spaces, however, will be restricted to trucks that do not extend into the Public Right -of -Way. Herewith is the following evidence: 1. Staff report. 2. Application for variance. 3. Notice of Public Hearing, copies of notification letters to owners and tenants in the area and affidavits of posting and mailing. It is recommended that the variance be granted with the following conditions: a. The usage of the two truck loading spaces shall be limited so that no truck parked at the loading docks shall extend into the street right-of-way as shown on the Master Plan of Streets, dated June 16, 1992. b. All existing and future tenants shall be notified of this restriction and a condition stating this shall be placed in all future leases. City Council April 28, 1999 Page 2 C. The owner of the property shall provide to the City of Vernon a utility easement for the overhead electrical lines located on the applicants property in a form and manner subject to approval of the Director of Community Services and Water. d. This variance shall automatically expire at the time of any expansion or structural alteration of the building, or on August 19, 2009, whichever occurs first, at which time the use of the parking, access or loading area(s) allowed by this variance shall be discontinued unless brought into compliance with all applicable standards for parking, access and loading areas set forth in the Comprehensive Zoning Ordinance. It is the intent of the City Council that said parking, access or loading area(s) be treated in the same manner as a legal nonconforming use subject to section 26.4.E-4(b). Very truly yours, Bruce V. Malkenhorst City Clerk BVM:rcm . i Lucille Roybal-Allard Charles Calderon Martha Escutia 55 E. 55 2TempleStreet State Senator - 30a' District State Assemblywoman suite 18611 400 N. Montebello Boulevard 2650 Zoe Avenue - 21 Floor Los Angeles, CA 90012 ATTN: Anna Figueroa Montebello, CA 90640 Huntington Park, CA 90255 Dolores Petullo Planning Department Planning Department Chamber of Commerce 6550 Miles Avenue 2535 Commerce Way 3801 Santa Fe Avenue Huntington Park, CA 90255 Commerce, CA 90040 Vernon, CA 90058 City of Los Angeles NNIM L.A. Unified School Environmental Planning Department Planning Department Real Estate and Asset Management Brant, 221 N. Figueroa Street 6330 Pine Street Environmental Review Unit 355 south Grand Avenue, suite 500 Room 1500 Bell, CA 90201 Los Angeles, CA 90071 Los Angeles, CA 90012 E 1 L os Angeles County Gloria Molina Mothers of East L.A. Director of Planning Board of Supervisors P Ms. Guiterrez James Had - Room 1390 500 West Temple Street 924 S. Mott Street 320 West Temple Street Suite 856 Los Angeles, CA Los Angeles, CA 90012 Los Angeles, CA 90012 90023 Management District Planning Department Planning Department 21865 E. Copley Drive 5220 Santa Ana Street 4319 Slauson Avenue Diamond Bar, CA 91765 Cudahy, CA 90201 Maywood, CA 90270 Dave Karrker Smooke - c% Wellman Properties Joseph R. Garruba California Water Service 405 Mateo Street California Portland Cement Co. 5243 E. Sheila Street Los Angeles, CA 90013-2219 2025 E. Financial Way Commerce, CA 90022 Glendora, CA 91740 J.J. Little Sidney R. Title John Kinas J.J. Little Company, Inc. Market Properties, Inc. United States Aluminum 9945 Malgar Drive 5245 Pacific Concourse 3663 Bandini Boulevard Whittier, CA 90603 Suite 190 Vernon, CA 90023 Los Angeles, CA 90045 L.R. Luppen H.P. Long Ron Natik Metal Products Engineering Sweetener Products 33 Pleasant Oak Drive 3050 Leonis Boulevard 2050 E. 38a' Street Sp n ' e, CA 93265 Vernon, CA 90058 Vernon, CA 90058 Catellus Development Corp. Louis Chertkow Ellen Orlando The Bradbury Building Elkay Plastics Company, Inc. Karen Lehrer 304 S. Broadway, 41 Floor P.O. Box 23008 2300 E. 11"' Street Los Angeles, CA 90013 Vernon, CA 90023 Los Angeles, CA 90021 Connie M. Carrasco, President E.J. Contreras Brent P. Chappell Chem -Tech Systems, Inc. Owens -Brockway Catellus Development Corporation 3650 East 2611 Street 2901 Fruitland Avenue 304 S. Broadway #4THFL Vernon, CA 90023 Vernon, CA 90058 Los Angeles, CA 90013-1209 James H. Hilands City of Long Beach Scott Simpson Heger Realty Corporation Office of the City Manager U.S. FILTER RECOVERY 5657 E. Washington Boulevard City Hall SERVICES, (CALIFORNIA), INC. Los Angeles, CA 90040 333 W. Ocean Boulevard, 131 Floor P.O. Box 58128 Long Beach, CA 90802 Los Angeles, CA 90058 .Local. Government Information Services P.O. Box 10448 Arlington, Virginia 22210-1448 Lillian Kamph Trust Owens Illinois glass Container Inc. 1320 East Ocean Front #1 Seagate Balboa, CA 92661 Toledo, OH 43604 Los Angeles By Product Company Detrex chemical Industries 1810 east 251h Street P.O. Box 501 Los Angeles, CA 90058 Detroit, Michigan 48231 Joe Dspeker & Irma Trust P.O. Box 35253 Los Angeles, CA 90035 Ma trac C, Sam / David 3080 East 5011 Street Vernon, CA 90058 Euclid Steel Faricating Co., Inc. 1830 East Ball Road Anaheim, CA 92805 Barilev Investments 5215 Boyle Avenue Los Angeles, CA 90058 United Engineering C/O Frederick Dulien 833 West 17t' Street #4 Costa Mesa, CA 92627 Catherine Spellman, Trustee Spellman Trust 1057 Carmel Drive Simi Valley, CA 93065 Euclid Steel Fabricating Co., Inc. 1830 East Ball Road Anaheim, CA 92805 Aluminum Company of America 5150 Alcoa Avenue Vernon, CA 90058 Roy alexander/Leslie S. Trust 3007 Fruitland Avenue Vernon, CA 90058 Trent Anderson 126 South Windsor Boulevard Los Angeles, CA 90004 L.A., Junction RY Company Euclid Steel Fabricating Co., Inc. 22498 Whirlaway Court Canyon Lake, CA 92587 1 2 3 4 5' 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXECUTION COPY CDBG INFRASTRUCTURE LOAN AGREEMENT THIS CDBG INFRASTRUCTURE LOAN AGREEMENT (hereinafter "Agreement") is made, entered into and executed in duplicate originals, either copy of which may be considered and used as the original hereof for all purposes, as of this 4th day of May, 1999, in the City of Vernon, County of Los Angeles, California BY AND BETWEEN THE CITY OF VERNON (hereinafter referred to as the "City") 4305 Santa Fe Avenue Vernon, California 90058-0805 AND SANDBERG FAMILY LLC (hereinafter referred to as the "Borrower") 3251 E. Slauson Avenue Vernon, California 90058 RECITALS WHEREAS, the Borrower has applied to the City for a Community Development Block Grant ("CDBG") loan for the purpose of helping to finance public infrastructure improvements for the development known as the Alcoa Project ("the Project"); and WHEREAS, the City is willing to make such a loan to the Borrower on the terms and conditions herein set forth. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET FORTH HEREIN: 1. THE LOAN. a. Loan/Note: Subject to the terms and conditions of this Agreement, th&tlCity hereby` -agrees to lend the Borrower the amount of Seventy Thousand Seven Hundred Twenty Dollars and No Cents ($70,720.00) (hereinafter called "Loan") by depositing said funds in an escrow account as set forth hereinafter. 1 b. Loan Repayment. The obligation of the Borrower 2 to repay the City shall be evidenced by a promissory note 3 (hereafter the "Note") of the Borrower substantially in the form 4 of Attachment "A." Such Note shall be secured by a standby letter 5 of credit with the City of Vernon designated as beneficiary issued 6 by a bank acceptable to City in the amount equal to the principal 7 amount of the Loan plus all interest thereon that will have 8 accrued as of December 1, 2001, and shall be subject to a personal 9 guarantee by William Sandberg. The interest rate on the Loan 10 shall be seven percent (7%) per annum. 11 C. Deferral of Payments. The repayment of the Loan 12 shall be deferred to December 1, 2001. Interest shall accrue on 13 the unpaid principal during the deferral period, compounded 14 monthly. 15 d. Forgiveness of Loan. If the infrastructure 16 improvements are located on public property and if the terms and 17 conditions of this Agreement are fully met, repayment of all or 18 part of the Loan will be forgiven. Forgiveness shall be 19 determined by the number of jobs created and retained for a 20 minimum of twenty-four (24) months. The percentage of the Loan 21 forgiven shall correspond to the percentage of required jobs so 22 created and retained. If the terms and conditions of this 23 Agreement are not fully met, repayment shall be made as set forth 24 hereinafter. 25 e. Repayment of Loan. The term of the Loan shall be 26 from the date escrow closes until December 1, 2001. The entire 27 principal amount due, with accrued interest, shall be repaid on 28 December 1, 2001, at the address specified by the City, except to -2- t 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the extent all or part of the Loan has been forgiven. Prepayment of the Loan is allowable with no prepayment penalty. f. Purpose. The purpose of the Loan is to help finance installation of infrastructure on public property consisting of street, storm drain, water system and utility improvements. g. Employment. As a condition of the Loan, the Borrower agrees, for its own account or through Sandberg Manufacturing, Inc., to create at a minimum four (4) full time jobs, allowing for some full-time equivalents, not later than December 1, 1999, and to retain such jobs for a minimum of twenty- four (24) months. At least fifty-one percent (51%) of all jobs created as a result of this Loan must be filled by members of the Targeted Income Group. The Targeted Income Group guidelines, adopted by the State and dependent on family size, are attached to and made a part of this Agreement as Attachment "B." h. Disbursement of Funds. Funds shall be disbursed by the escrow agent as two-party checks payable to the Borrower and a contractor only upon presentation of invoices from said contractor, evidencing materials, services or labor provided in connection with the Project approved by the City. i. Escrow. The escrow agent shall be Commerce Escrow, 1545 Wilshire Boulevard, Suite 600, Los.Angeles, California 90017, attention: Marleny Martin, or another firm mutually acceptable to City and Borrower. Borrower shall be responsible for all routine charges and fees for services of the escrow agent. Escrow shall close when all loan funds have been disbursed or when the Project is otherwise completed and no -3- 1 outstanding expenses payable with the loan proceeds remain to be 2 paid, at which time the escrow agent shall provide an accounting 3 to the parties of the amounts disbursed and any unused balance. 4 The unused balance, if any, may be used to pay the charges and 5 fees of the escrow agent, and the remaining sum, if any, shall be 6 refunded to City and credited to Borrower as a payment of 7 principal on the Note. 8 2. REPRESENTATIONS TERMS AND CONDITIONS. 9 The Borrower represents, warrants, and covenants as set 10 forth in Attachments "C," "D," and "E." The Borrower agrees with 11 each of the terms, conditions, covenants and commitments contained 12 herein and in Attachments "A" through "H" which are attached 13 hereto and made a part hereof by reference. 14 3. CONDITIONS PRECEDENT TO LOAN. 15 The obligation of the City to deposit the Loan amount in 16 escrow shall be subject to the fulfillment of each of the 17 following conditions precedent: 18 a. Loan Agreement. The Borrower shall have executed 19 and deposited in escrow this Loan Agreement and the Note. The 20 Note shall be dated as of the date of the Agreement. 21 b. Security. The Borrower shall have deposited in 22 escrow the standby letter of credit and the personal guarantee, 23 both duly executed and dated as of the date of this Agreement. 24 C. Form of Documents. The documents mentioned in 25 subparagraphs 3(a) and (b) shall be in a form satisfactory to the 26 City Administrator and the City Attorney. The escrow agent shall 27 have authority to complete such documents before closing by dating 28 them and/or inserting the exact amount of the loan, if different -4- 1 from the amount set forth in paragraph 1(a). 2 d. Other Loans/Funds. If the Borrower obtains 3 supplemental funds for off -site improvements as shown below, it 4 shall provide written evidence satisfactory to the City that the 5 Borrower has executed loan documents for such loans/funds and/or 6II that the Borrower has the cash equity shown. 711 i. Cash Equity by Borrower: $14,250 8 ii. Commercial Bank: none 9 iii. City Match: $ 3,430 10 e. Government Approval. The Borrower or its 11 contractor shall have secured all necessary permits, approvals, or 12 consents, if required, of governmental bodies having jurisdiction 13 with respect to any construction contemplated in accordance with 14 the use of the proceeds of the Loan. The Borrower shall comply 15 with the Zoning Ordinance of the Vernon City Code for the 16 development and use of the property described herein. 17 f. Approval of Others. The Borrower shall have 18 secured all necessary approvals or consents required with respect 19 to this transaction by any mortgagor, creditor, or other party 20 having any financial interest in the property or in the Borrower. 21 4. EVENTS OF DEFAULT. 22 The entire unpaid principal of the Note, and the interest 23 then accrued thereon, shall become immediately due and payable 24 upon the written demand of the City, without any other notice or 25 demand of any kind or any presentment or protest, if any one of 26 the following events (hereafter an "Event of Default") shall occur 27 and be continuing at the time of such demand, whether voluntary or 28 involuntary or, without limitation, occurring or brought about by -5- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 operation of law or pursuant to or in compliance with any judgment, decree or order of any court or any order, rules, or regulations of any administrative or governmental body. a. Non -Payment of Loan. If Borrower shall fail to make payment when due of principal or interest on the Note, and if the default shall remain unremedied for ten (10) days after notice from the City. b. Non -Payment of Other Indebtedness. If Borrower shall fail to make payment when due of any installment of principal or interest on any of the Borrower's other indebtedness for the public infrastructure improvements, if such default shall remain unremedied for thirty (30) days. C. Incorrect Representation or Warranty. If any representation or warranty contained in or made in connection with the execution and delivery of this Agreement, or in any documentation or certificate furnished pursuant hereto, shall prove to have been incorrect or invalid when made in any material respect. d. Default in Covenants. If the Borrower shall materially default in the performance of any other term, covenant, or condition contained in this Agreement, and such default shall continue unremedied for thirty.(30) days after either: (1) it becomes known to an executive officer of the Borrower; or (2) written notice thereof shall have been given to the Borrower by the City. e. Employment Plan. If the Borrower shall fail to comply with the provisions of the TIG Employment Plan. 1 f. Voluntary Insolvency. If the Borrower shall 2 become insolvent; shall substantially cease to pay its debts as 3 they mature; shall voluntarily file a petition seeking 4 reorganization or liquidation of the Borrower, or the appointment 5 of a receiver or trustee for all or a substantial portion of its 6 assets, or to effect a plan or other arrangement with creditors; 7 shall be adjudicated bankrupt; or shall make a voluntary 8 assignment for the benefit of creditors. 9 g. Involuntary Insolvency. If an insolvency 10 petition shall be filed against the Borrower under any bankruptcy, 11 insolvency, or similar law or seeking the reorganization or 12 liquidation of the Borrower or the appointment of a receiver or 13 trustee for all or a substantial portion of the assets of the 14 Borrower, or if a writ or warrant of attachment or similar process 15 shall be issued against a substantial part of the property of the 16 Borrower and such petition shall not be dismissed, or if such writ 17 or warrant of attachment or similar process shall not be released 18 or bonded, within sixty (60) days after filing of levy. 19 h. Judgments. If any final judgment for the payment 20 of money that is not fully covered by liability insurance shall be 21 rendered against the Borrower, and shall not be discharged within 22 sixty (60) days of such decision, or if execution thereon, 23 effectively stayed pending an appeal from the date such judgment, 24 is affirmed on such appeal. 25 i. Sale/Refinancinci/Chancte of Ownership. Upon the 26 sale of the business of the Borrower, upon sale or refinancing of 27 any real property financed with this Loan or as part of the 28 project in which funds from this Loan were used, upon sale or -7- 1 2 3 4 5 6 7 8 91 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 refinancing of any real property used as collateral for this Loan, upon change in ownership of the business involving any guarantees of this Loan, or upon cessation of the Borrower to be a majority owner of the business. This Loan shall be non -assumable. 5. RIGHTS UPON DEFAULT. Upon an event of default by the Borrower, the City shall have all remedies available to it under State law in enforcing this Agreement and for enforcing City's rights to the collateral mentioned herein including, but not limited to, the following: a. To accelerate and declare the full balance immediately due and payable on the Note and to commence a lawsuit for collection thereof. b. To take possession of any collateral securing the loan or render it unusable, without notice, except as required by law, provided that said self-help shall be done without breach of peace. c. To request and demand that Borrower assemble any collateral securing the loan at an acceptable location for delivery to City. d. To sell or dispose of any collateral by sale pursuant to the law. e. To specifically enforce the terms of the Note and related agreements. f. To foreclose on any real property or appropriate personal property by strict foreclosure in equity. g. To pursue any and all other remedies available under law to enforce the terms of this Agreement and City's rights to any real and personal property identified herein, and in a 1 2 3 4 5 6 7 8 9 10 11 121 131 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 collateral security documents. 6. OTHER DOCUMENTS. City may require and Borrower agrees to execute such other documents as may be required by the City in its sole discretion in order to comply with State and Federal regulations governing (a) the loan proceeds and (b) prudent lending practices. 7. COLLECTION AGENT. Borrower hereby authorizes the City to appoint a loan collection entity to provide loan servicing in accordance with this Agreement and other loan documents. City may appoint, remove or replace the loan servicing agent at its sole discretion. City shall provide or cause to be provided notice to Borrower of the loan collection agent or any change thereof. 8. WAIVER. No failure or delay on the part of the City in exercising any right, power or remedy hereunder shall operate as a waiver thereof. 9. ATTORNEY FEES. If any party to this Agreement breaches any provision of this Agreement, or becomes party to litigation concerning this Loan or the security for this Loan, then the other party may institute legal action against such party for specific performance, injunction, declaratory relief, damages, or any other remedy provided by law. In addition to the recovery of any such sum or sums expended on behalf of the prevailing party, the prevailing party shall be entitled to recover from the losing party such amount as the court may adjudge to be reasonable attorney's fees for the services rendered to the prevailing party 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 in such action. 10. NOTICES. Notices to the parties unless otherwise requested in writing shall be sent to: City: THE CITY OF VERNON ATTN: BRUCE V. MALKENHORST CITY ADMINISTRATOR 4305 SANTA FE AVENUE VERNON, CA 90058-0805 TELEPHONE NO.: (213) 583-8811 Borrower: SANDBERG FAMILY LLC ATTN: WILLIAM SANDBERG 3251 E. SLAUSON AVENUE VERNON, CA 90058 11. GENERAL TERMS AND CONDITIONS. The general terms and conditions of this Agreement are set forth in Attachment 11F." 12. PROJECT ASSURANCES AND TIG EMPLOYMENT PLAN. The Borrower will comply with the Project Assurances set forth in Attachment "G," and shall achieve the objectives of the TIG Employment Plan set forth in Attachment "H." 13. SEVERABILITY. If any section, paragraph, sentence or requirement of this Agreement is held to be invalid by a court of competent jurisdiction, the remaining portions, sections, and requirements of this Agreement which are not affected by the action of the court shall remain in full force and effect. -10- 1 2 3 4 5 6 7 8 9 10' 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IN WITNESS WHEREOF, the City and the Borrower have executed this Loan Agreement as of the date first written above. THE CITY OF VERNON ATTEST: BRUCE V. MALKENHORST, City Clerk APPROVED AS TO FORM: DAVID B. BREARLEY, City Attor y BY: •LEONIS C. MALBURG, Mayor SANDBERG FAMILY LLC, a Limited Liability Company By: f (Ica Signature) (Name) Title: By: Title: AbJep"" -11- CDBG INFRASTRUCTURE LOAN AGREEMENT LIST OF ATTACHMENTS Attachment A. PROMISSORY NOTE. Attachment B. TARGETED INCOME GROUP GUIDELINES. Attachment C. REPRESENTATIONS AND WARRANTIES. Attachment D. AFFIRMATIVE COVENANTS OF THE BORROWER. Attachment E. NEGATIVE COVENANTS OF THE BORROWER. Attachment F. GENERAL TERMS AND CONDITIONS. Attachment G. PROJECT ASSURANCES. Attachment H. TIG BENEFIT EMPLOYMENT PLAN. ATTACHMENT A PROMISSORY NOTE Principal amount: $70,720.00 Date: _ _ _ _ _ _ On or before December 1, 2001, for value received, the undersigned ("Maker") promise(s) to pay to City of Vernon ("Payee"), or to order, at 4305 Santa Fe Avenue, Vernon, CA 90058-0805, or such other place as the holder of this Note ("Holder") may from time to time designate in writing, the principal sum of Seventy Thousand Seven Hundred Twenty Dollars and No Cents $70,720.00, with interest on the unpaid principal balance of this Note, from the date of this Note until this Note is paid in full, at the rate of seven percent (7%) per year. Accrued interest shall be computed on the basis of a 360-day year, based on the actual number of days elapsed. Maker may prepay this Note, without premium or penalty. No prepayment shall extend or postpone the due date or change the amount of any subsequent payment. This Note shall become immediately due and payable, at Holder's option, without notice, demand, or presentment, and regardless of any prior forbearance, on the occurrence of any of the following events: (a) the filing of a petition in bankruptcy by, or the initiation of any proceeding under any bankruptcy or insolvency laws against, the Maker; (b) the making of a general assignment for the benefit of creditors by Maker; (c) Maker's or any guarantor's default under any agreement or instrument executed in connection with this Note; (d) Maker's default under any other promissory note executed by Maker in favor of Holder; or (e) revocation of any guaranty of this Note by any guarantor. No delay or omission by Holder in exercising any right or remedy under this Note, or any other agreement executed in connection with this Note, shall operate as a waiver of the future exercise of that right or remedy or of any other rights or remedies under this Note or any other agreement executed in connection with this Note. To the extent permitted by law, Maker waives the right, in any action on this Note, to assert that the action was not commenced within the time required by law for Page 1 of 2 ATTACHMENT A commencement of the action. All rights of Holder stated in this Note are cumulative and in addition to all other rights provided by law, in equity, or in any agreement executed in connection with this Note. SANDBERG FAMILY, LL9 By: Signa (Name) Tit;O(Signat By: ' e -/4 `(Name) Title: Page 2 of 2 ATTACHMENT B TARGETED INCOME GROUP GUIDELINES COUNTY STANDARD 1 2 3 4 5 6 7 8 LOS ANGELES Lowest Targeted 17950 20500 23100 25850 27700 29750 31800 33850 Area median: Targeted 28750 32850 36950 41050 44300 47600 50900 54150 $51,300 Page 1 of 1 ATTACHMENT B ATTACHMENT C REPRESENTATIONS AND WARRANTIES The Borrower represents and warrants the following: A. Duly Organized: The Borrower is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of California and has the power to enter into this Agreement and to borrow hereunder. B. Duly Authorized: The making and performance by the Borrower of this Agreement and the execution and delivery of the Note, and any Security Agreements and Instruments have been duly authorized by all necessary corporate actions and will not violate any law, rule, regulation, order, writ, judgment, decree, determination, or award presently in effect or result in a breach of or constitute a default under any bank loan or any other agreement or instrument to which the Borrower is a party or by which it or its property may be bound or affected. C. Legally Binding, Instruments: This Agreement shall be binding upon the Borrower and shall inure to the benefits of the parties hereto and their respective successors. Any further documents and instruments necessary to carry out the terms of this Agreement shall likewise be binding upon the Borrower and shall inure to the benefit of the parties and their successors. D. No Legal Suits: There are no legal actions, suits, or proceedings pending, or to the knowledge of the Borrower, threatened, against the Borrower before any court or administrative agency, which if determined adversely to the Borrower would have a material adverse effect on the financial condition of the business of the Borrower. E. Not in Default: The Borrower is not in default of any obligation, covenant, or condition contained in any bond, debenture, note, or other evidence of indebtedness or any mortgage or collateral instrument securing the same. F. Taxes are Paid: Borrower has paid in full all taxes and assessments levied by any taxing agency, federal, state, or local against Borrower or its personal or real property, except to the extent that any such tax or assessment is being challenged by due legal process. Page 1 of 2 ATTACHMENT C G. No Adverse Change: The Borrower certifies that there has been no adverse change since the date of the loan application in the financial conditions, organization, operation, business prospects, fixed properties, or personnel of the Borrower. H. Evidence of Project Funding: The Borrower has submitted to the City acceptable evidence (e.g., bank commitment letter) of financing or liquidity for the balance of the project cost. Page 2 of 2 ATTACHMENT D AFFIRMATIVE COVENANTS OF THE BORROWER The Borrower agrees to comply with the following covenants from the date hereof until the City has been fully repaid with interest, unless the City shall otherwise consent in writing: A. Payment of The Loan: To pay punctually the principal and interest on the Note according to its terms and conditions and to pay punctually any other costs that may become due and payable to the City pursuant to the terms of this Agreement or Note. B. Payment of Other Indebtedness• To pay punctually the principal and interest due on any other indebtedness now or hereafter owed by the Borrower to the City or any other lender. C. Taxes: To pay and discharge all personal property taxes, assessments, and governmental charges upon it or against its properties prior to the date on which the penalties attached thereto apply, except that the Borrower shall not be required to pay any such tax, assessment, or governmental charge which is being contested in good faith and by appropriate proceedings. If so requested by the City, Borrower will provide a bond guaranteeing payment of such taxes or assessments in any case in which Borrower contests any tax and refuses to pay under this section. D. Additional Fundin : To provide additional equity funds to cover project costs incurred as a result of. overruns or unanticipated expenses or changes in work orders in the project as specified in the Loan Agreement. E. Existence: To maintain its existence, rights, privilege, and franchises within the State of California and qualify and remain qualified in each jurisdiction in which its present or future operations or its ownership of property requires such qualifications. F. Financial and Job Information: To maintain adequate records and books of account, in which all of its business and financial . transactions will be entered in accordance with generally accepted accounting principles. The Borrower will comply with all record keeping requirements. All records concerning the construction, including invoices, receipts and contracts will be kept for a period of not less than three years from the completion of construction. All relevant records pertaining to the project Page 1 of 2 ATTACHMENT D shall be accessible and available for inspection or audit by the City for the same time period. If so directed by the City, Borrower shall deliver to the City all records, accounts, documentation and other relevant materials relating to the receipt and disbursement of loan funds. G. Job Information: To provide job information semi-annually to the City for the period of the Loan or five (5) years, which is less. This job information will include, but not be limited to, the number of new hires, wages, title, starting date or jobs retained that directly relate to this loan, and the number of new or retained employees who are within the Target Income Group. H. Right o Inspection: To grant the City, until the Note has been fully repaid with interest, the right at all reasonable hours to inspect any chattel, personal property, and/or real estate used to secure the Loan, and to provide the City free access to the Borrower's premises for the purpose of such inspection. The Borrower will give the City through any authorized representative the access and the right to examine all records, books, papers, or documents relating to the Loan. I. Notice of Default: To give written notice to the City of any event within 15 days of the event that constitutes an Event of Default under this Loan Agreement as described in Section 4 of the Agreement or that would, with notice or lapse of time or both, constitute an Event of Default under this Loan. Indemnify and Hold Harmless: To indemnify and hold harmless the City, its elected officials, agents and employees from all claims, suits, or actions of every name, kind and description, brought forth on account of injuries to or death of any person or damage to property arising from or connected with the willful misconduct, negligent acts, errors or omissions or activities giving rise.to strict liability, or defects in design by the Borrower or any person directly or indirectly employed by or acting as agent for Borrower, in the performance of this Agreement, including the concurrent or successive passive negligence of the City, its officers, agents or employees. It is understood that the duty of Borrower to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. K. lQhL To create or maintain the number of jobs including the TIG jobs, as described in the TIG Employment Plan (Attachment H). L. Collateral: To provide and maintain any collateral property or equipment in good condition and at the original site identified in the loan application. All property and equipment shall remain free of any additional encumbrances, liens or claims after loan closing. Page 2 of 2 ATTACHMENT E NEGATIVE COVENANTS OF THE BORROWER The Borrower covenants and agrees that, from the date hereof until payment in full of the Note, unless the City shall otherwise consent in writing, the Borrower will not enter into any agreement or other commitment, the performance of which would constitute a breach of any of the covenants contained in this Loan Agreement including, but not limited to, the following covenants. Any breach of these covenants will constitute an Event of Default, and the rights of default by the City may be executed. A. Sell the Borrower's Assets• The Borrower will not sell or transfer all or a substantial part of its assets except those usually sold in the ordinary course of the business. B. Lease or Sublease Property: The Borrower will not lease or sublease all or any portion of the property to be acquired, constructed or rehabilitated with the proceeds of this Loan without the written consent of the City. C. Change of Ownership: The principals of the Borrower will not permit, without the written consent of the City, any material change in the ownership structure, control or operation of the Borrower including, but not limited to: (1) merger into or consolidation with any other person, firm, or corporation; (2) changing the nature of its business; (3) substantial distribution, liquidation, or other transfer of the Borrower's assets to the stockholders or any other party. D. .Change the Project: The Borrower will not permit any material change in the project's plans and/or specifications submitted to the City as set forth in the Loan Application. Material change will include any significant variance in the accepted plans and specifications, increases in contract prices, and/or additional financial obligations with respect to the construction and acquisition or assets. Page 1 of 1 ATTACHMENT E ATTACHMENT F GENERAL TERMS AND CONDITIONS A. Waiver: No failure or delay on the part of the City in exercising any right, power, or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy hereunder. No modification or waiver of any provision of this Agreement or the Note, nor any consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No notice to or demand on the Borrower in any case shall entitle the Borrower to any other or further notice of demand in similar or other circumstances. B. Amendments - Writing Required: The City hereby expressly reserves all rights and provisions of this Agreement to amend or consent to departure from the provisions of the Note, and to release or otherwise deal with any collateral security for payment of the Note; provided however, that all such amendments shall be in writing and executed by the City and the Borrower. C. is All notices, consents, requests, demands, and other communications hereafter shall be in writing and shall be deemed to have been duly given to a party hereto if mailed by certified mail, prepaid, to the City or Borrower, at its address as set forth at the beginning of this Agreement, or at such other addresses as any party may have designated in writing to any other party hereto. This section does not limit other means of delivering written notice if said. notices are actually received. D. Payments: The Borrower will make payments to the City in accordance with the terms and conditions and instructions contained in this Agreement and the Promissory Note. E. Survival of Representations and Warranties: All agreements, representations, and warranties made by the Borrowers herein or any other document or certificate delivered to the City in this transaction shall survive the delivery of this Agreement, the Note and any security instrument hereunder, and shall continue in full force and effect so long as the Note is outstanding. F. Successors and Assigns: This Agreement shall be binding upon the Borrower, its successors, and assigns, except that the Borrower may not assign or transfer its rights without prior written consent of the City. This Page 1 of 2 ATTACHMENT F Agreement shall inure to the benefit of the City and, except as otherwise expressly provided for in particular provisions hereof, any subsequent holders of the Note. G. Counterparts: This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. H. Governi a Law: This Agreement and the Note and Security Agreements, Financing Statements, and Deed of Trust shall be deemed contracts made under the laws of the State of California and for all purposes shall be construed in accordance with the laws of said State. Page 2 of 2 ATTACHMENT G PROJECT ASSURANCES The Borrower hereby assures and certifies that it will comply with all regulations, policies, guidelines, and requirements as they relate to the Loan. The Borrower also assures and certifies to the City of Vernon that the Borrower: A. Will comply with Title VI of the Civil Rights Act of 1964 (P.L 88-352) whereby no person in the United States shall on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination by the Borrower under which the Borrower receives Federal financial assistance, and Borrower will immediately take any measures necessary to effectuate this agreement. The phrase "Federal financial assistance" includes any form of loan, grant, or any other form of direct or indirect Federal assistance. B. Will comply with Title VI of the Civil Rights Act of 1964 (42-USC 2000d) prohibiting employment discrimination where: 1) the primary purpose of the financial assistance is to provide employment, or 2) discriminatory employment practices will result in unequal treatment of persons who are or should be benefiting from the CDBG loan -aided activities. C. Will comply with Section 112 of the Public Law 92-65 and Title III of Public Law 94-135 whereby the Borrower assures that no person in the United States shall, on the grounds of sex or of age, be excluded from participating in, be denied the benefits of, or otherwise be subject to discrimination in connection with CDBG loan -aided activities. D. Will comply with the flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973, Public Law 93-234, 87 Stat. 975, approved December 31, 1976. Section 102(a) requires, on and after March 2, 1975, the purchase of flood insurance in communities where such insurance is available as a condition for the receipt of any federal funds in any area that has been identified by the Secretary of the Department of Housing and Urban Development as an area having special flood hazards. E. Will comply with Section 106 of the National Historic Preservation Act of 1966 as amended 06 USC 47 0), Executive Order 11593, and the Archeological and Historic Preservation Act of 1966 916 USC 469a-1 et. seq.) by: a) consulting with the. State's Historic Preservation Officer on the conduct of investigation, as necessary to identify properties listed on or eligible for inclusion in the National Historic Register (see 36 CFR Part 880.8) by the activity, and noticing of existence of any such properties; and b) complying with all requirements established by the State to avoid or mitigate adverse effects on historic structures. F. Will comply with Section 2 of the Public Works and Economic Development Act which states that under the provisions of this Act, new employment opportunities should be created by developing and expanding new and existing facilities and resources rather than by merely transferring jobs from one labor area to another. G. Will assure that any building or facility financed in whole or in part by any funds provided under the Loan will be designed, constructed or altered so as to assure ready access to and use Page 1 of 2 ATTACHMENT G of such building or facility by the physically handicapped. This provision applies only to firms which deal directly with the general public in the normal and usual course of their business, and to facilities in which business is customarily transacted by and with members of the general public. H. Will ensure that the facilities under its ownership, lease or supervision which shall be utilized in the accomplishment of the project are not listed on the Environmental Protection Agency's (EPA) list of Violating Facilities and that it will notify the City of Vernon Department of Community Services of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be used in the project is under consideration for listing by the EPA as a violating facility. I. Will comply with all requirements imposed by the Federal sponsoring agency concerning special requirements of law, program and other administrative requirements. J. Will comply with the Davis Bacon Act, as amended (40 USC 276a-S), as this Act may apply to the project of the Borrower. K. The Borrower certifies, to the best of its knowledge or belief, that: (a) No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; (b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. Page 2 of 2 ATTACHMENT H TIG EMPLOYMENT PLAN SANDBERG FAMILY LLC (Sandberg Manufacturing, Inc.) This TIG Benefit Employment Plan ("Plan") will be used by Sandberg Family LLC and/or Sandberg Manufacturing, Inc. ("Employer") to assure continuing employment opportunities to economically disadvantaged and unemployed persons. Employer will use the local Job Training Program Agency Program [the Private Industry Council (PIC) and the Office of Employment Training (OET)] as its initial resource for recruitment, referral and placement in positions covered herein, but is not restricted to JTPA resources. 1. General Terms: a) The City of Vernon ("City") provides, Community Development Block Grant ("CDBG") funded low interest loans for business start-up and expansion. By virtue of this loan, the City expects to realize additional employment opportunities for lower income and unemployed persons (the Target Income Group, or TIG). The City has negotiated a loan with the Employer as follows and as additionally described in the Loan Agreement: i. Loan Amount $70,720.00 ii. Interest Rate 7 % iii. Term To December 1, 2001 iv. Job Requirement 4 jobs created (minimum) b) Employer shall hire and retain at least one permanent full-time employee (minimum of 1,750 work hours per year) per $20,000 in CDBG loan funds received. At least 4 jobs/positions will be provided by December 1, 1999. The Employer also agrees that at least 51 % of all jobs created as a result of the CDBG loan will be filled by members of the Target Income Group. c) The loan described in the preceding Section l(a) and in the Loan Agreement will result in the following additional employment opportunities: Number Anticipated Expected fo Jobs Positions (type) Hiring Date 4 General Helper 12/1/99 Page 1 of 3 ATTACHMENT H 2. Employment/Recruitment a) "Covered positions" for the purposes of this Agreement shall include all Employer's job openings in the City of Vernon created as a result of internal promotions, terminations, and expansion of Employer's work force, within the positions listed under Section l(d). b) At least three weeks prior to anticipated hiring dates, the Employer will notify the JTPA Program of its needs for new employees in the covered positions; or, if Employer is hiring on its own behalf, it must provide proof of TIG benefit to the City on self -certification forms obtained from the City. Notification shall be by Job Order Form provided to the JTPA Program, and shall include, but not necessarily be limited to: i Number of employees requested by job title. ii. Job description, including minimum qualifications stated in quantifiable and objective terms. iii. Work to be performed. iv Hiring dates. V. Rates of pay. vi. Hours of work. vii. Anticipated duration of employment. 3. Referral a) The JTPA Program will refer job applicants eligible pursuant to the Job Training Partnership Act (JTPA) and the Community Development Block Grant (CDBG) regulations to the Employer in response to the notification of need for new employees described in Section I (d). The JTPA Program will maintain the documentation of applicant/employee household income required by the CDBG program, and provide such information to the City of Vernon c/o The Holt Group, Inc., upon hiring of any applicant. b) The JTPA Program will notify the Employer of the number of applicants it will refer and begin making referrals no later than one week prior to the anticipated hiring date. The JTPA will make every reasonable effort to refer at least one qualified person(s) for each job opening. c) In the event that the JTPA Program is unable to refer any or all of the qualified personnel requested, the Employer will be notified by the JTPA Program on a timely manner. The Employer will then be free to directly fill remaining positions. In this event, the Employer will make a good faith effort to hire economically disadvantaged persons through additional recruitment techniques in conformance with the terms of the loan and approved by the City. Employer in conjunction with the City's CDBG Consultant, The Holt Group, will then be responsible for verifying Targeted Income Group status. Page 2 of 3 4. Placement a) If Employer is using the JTPA Program for job placement, all decisions on hiring new employees will be made by the Employer. The Employer agrees to provide priority consideration to prospective employees for covered positions from the qualified persons referred by the JTPA Program. If the Employer does not find any of the persons so referred to qualify for the opening(s), the JTPA Program and City will be notified. b) The JTPA Program and the City's CDBG Consultant will monitor job retention and employment performance of employees placed under the Agreement. The employer agrees to cooperate fully in these follow-up efforts, and to provide two times annually hiring summaries for five years after funding, in a form acceptable to the City and the State. This may include, but not be limited to, copies of employee rosters and payroll and tax information submitted to the State of California and to the federal government. c) If the Employer has selected employees from referrals by the JTPA Program, the City will not be responsible for the employee's actions and the Employer hereby releases the City from liability. 5. Training a) The JTPA Program and the Employer may agree to develop additional job training programs. The training specifications and the cost for such training will be mutually agreed upon by the Employer and the JTPA Program and covered under a separate training agreement(s). 6. Controlling Regulations and Laws a) If this Plan conflicts with any labor laws or other governmental regulations, those laws or regulations shall prevail. b) If this Plan conflicts with a collective bargaining agreement to which the Employer is a party, the bargaining agreement shall prevail. c) The Employer shall not discriminate against any applicant for employment due to race, religion, age, color, sex, national origin, physical handicap, sexual preference, or political affiliation. 7. Assignment Modification and Renewal a) Employer should transfer possession of all or a portion of its business concerns to any other party by lease, sale, assignment or otherwise, this Plan will be binding on Employer's successors and assigns. Employer, as a condition of transfer, shall require the party taking possession to agree, in writing, to the terms of this Plan and provide proof to the City. c) This Plan may, upon mutual agreement, be modified in order to improve the working Page 3 of 3 y '. � " relationship described herein. Page 4 of 3