COMMUNITY DEVELOPMENT COMMISSION

Redevelopment Agency MISSION STATEMENT: To enhance the economic base of the City through the elimination of blight, the revitalization of existing properties, and the attraction of new businesses.

The Community Development Commission (CDC) was established by the City of West Covina to eliminate blight, develop affordable housing, and vitalize the economic environment of the City. The City Council serves as the Community Development Commission, with the Mayor as the Chairman and the Mayor Pro Tem as the Vice Chairman of the Commission.

Pursuant to California Redevelopment Law, the CDC establishes project areas with the adoption of redevelopment plans. The CDC works with developers, property owners, and businesses to develop new projects and rehabilitate and/or expand existing developments. This public/private joint venture may involve the construction of new infrastructure and/or the assemblage of land or alternatives for project financing.

The fiscal year 2006-2008 budget for CDC is, among other things, a reflection of implementing the Five-Year Housing and Redevelopment Implementation Plan adopted in December 2004. The budget also allows for the continuation of the CDC's efforts to pursue housing projects and programs, and develop alternatives for several key sites within the City. Once "redeveloped," these projects will improve the City's economic base while concurrently meeting the CDC's mission to remove blight.

COMMUNITY DEVELOPMENT COMMISSION

COMMUNITY DEVELOPMENT COMMISSION

FY 2005-2006 ACCOMPLISHMENTS

  • Administering a Disposition and Development Agreement with West Covina Heights LLC (Eclipse Development) for the development of a first-class commercial center at the southern portion of the West Covina Sportsplex site (commercial site).

  • Administered a Disposition and Development Agreement with McIntyre Companies for the development of a Nissan Dealership (Phase 1) and commercial center (Phase 2) at the corner of Citrus Street and Workman Avenue.

  • Closed escrow on the 8.6-acre Citrus Street and Workman Avenue site.

  • Commenced construction on the Nissan Dealership.

  • Administered a Disposition and Development Agreement for the construction and development of four restaurants (Johnny Carino's, Islands, Chipotle, Pick-Up-Stix) on the Development Opportunity Parcel by the Eastland Shopping Center (The Curve Project). Project is now open and completed.

  • Entered into an Exclusive Negotiations Agreement with Charles Company for a commercial development on the K- Mart/Credit Union site.

  • Monitored the Planning, Design and Construction Consulting Services Agreement, Maintenance and Operations Agreement, and License Agreement with Big League Dreams (BLD), for the West Covina Sportsplex project.

  • Monitored the Design Services Agreement and Construction Managing Services Agreement with Rossetti Architects and Heinbuch Golf Construction, for the West Covina Sportsplex project.

  • Entered into and monitored a Sportsplex Environmental Site Assessment Agreement with Geomatrix Consultants for the West Covina Sportsplex Project.

  • Monitored and completed a Soil Remediation Contract with Camp, Dresser, & McKee for the West Covina Sportsplex Project.

  • Obtained regulatory agency approval for soil remediation on West Covina Sportsplex Project site.

  • Assisted in facilitating interim closure of Class III landfill of BKK site.

  • Administered an Owner Participation Agreement for the construction and development of six new restaurants (Macaroni Grill, Red Brick Pizza, Ohana's Hawaiian Grill, Vieta Coffee, Juice It Up, and Dono Sushi) at the Edward's Entertainment Center (Hillcrest Development Project). Project is now open and completed.

  • Executed several Lease Agreements with various tenants for occupation of several CDC owned properties.

  • Monitored the ongoing construction of the Clippinger Chevrolet Dealership permanent facility at the Auto Plaza.

  • Assisted the following businesses through the City entitlement process:

    • Crazy Horse Steakhouse, located at 1360 E. Garvey Avenue S. (formerly National's Bar & Grill site). Project development soon to commence.
    • Penske Audi, located at 2016 E. Garvey Avenue South. Project development soon to commence.
    • Penske Mercedes Benz expansion project, located at 1829 E. Garvey Avenue S.
    • Brighton Management for the development of a 109-room Marriott Fairfield Suites & Inn, located at 3211 E. Garvey Avenue S.
    • Starbucks located at 101 N. Barranca Avenue.

  • Submitted an RFP for the sale of a 0.26-acre site located at 2533 E. Workman Avenue.

  • Executed an Encroachment Easement Deed to allow a California Pizza Kitchen to expand on CDC property at the former Mattress Gallery Store site in the Westfield Shopping Center.

  • Entered into a Funding Contract Agreement with the Chamber of Commerce at 811 So. Sunset Avenue.

  • Maintained active database of available industrial, commercial, and vacant properties in the city.

  • The CDC completed 52 Home Improvement Loans under the CDBG Home Improvement Loan Program. A total of 2,454 CDBG Home Improvement Loans have been issued since program inception in 1970.

  • The CDC processed 10 loans under the Housing Preservation Program during fiscal year 2004-2005. A total of 823 Housing Preservation Loans have been issued since program inception in 2000.

  • Facilitated and coordinated ground breaking and grand opening ceremonies throughout the City to celebrate its continued development (Hillcrest Development, The Curve, West Covina Nissan).

  • Hosted Annual Business Recognition Dinner to recognize the top businesses in West Covina.

  • Worked in collaboration with the Chamber of Commerce in promoting West Covina's "business friendly" environment to retain and attract businesses through a co-sponsorship of events including the Business Recognition Dinner, ground breaking ceremonies, ribbon-cutting ceremonies, and marketing business opportunities throughout West Covina.

  • Initiated the RFP process to negotiate and enter into an Exclusive Negotiation Agreement with a qualified developer for the Civic Center site.

FY 2006-2008 GOALS AND OBJECTIVES

REDEVELOPMENT

Sportsplex Project - Commercial Site
  • Resolve soil sample issue and testing required and obtain EPA and DTSC approvals
  • Complete design of the site (infrastructure and grading)
  • Remobilize to complete grading activity for the commercial development
  • Satisfy conditions precedent to the close of escrow with commercial developer
  • Close escrow and obtain land sale proceeds from commercial developer Assist and facilitate the commercial developer in the building entitlement process
  • Commence and complete construction of commercial development
  • Facilitate grand opening for commercial tenants (i.e. Target and The Home Depot)

Redevelopment of K-Mart/Credit Union Site
  • Negotiate and enter into an Exclusive Negotiation Agreement with a qualified developer
  • Obtain appraisals and cost estimates
  • Analyze project feasibility

Citrus/Workman Site
  • Assist and facilitate the building entitlement process for Phase 1 - Nissan Dealership
  • Complete construction for Phase 1 - Nissan Dealership
  • Assist and facilitate the developer in securing building permits to commence Phase 2 - commercial center construction
  • Facilitate a groundbreaking ceremony for Phase 2 - commercial center
  • Commence construction of Phase 2 - commercial center
  • Facilitate grand opening for Nissan Dealership

Azusa/Workman Site
  • Facilitate and assist the developer in the entitlement process
  • Commence construction of expansion of Mercedes Benz Dealership Service Center

ECONOMIC DEVELOPMENT

Business Assistance, Attraction, and Retention
  • Manage the Auto Plaza Business Improvement District
  • Attend ICSC Conference in Palm Springs
  • Attend ICSC Conference in Las Vegas
  • Coordinate and host the Annual Business Recognition Dinner
  • Coordinate grand opening ceremonies for Target, The Home Depot, West Covina Nissan, and Crazy Horse Steakhouse
  • Conduct various fund raising events
  • Print marketing material for the City of West Covina
  • Maintain available property list database

HOUSING

Home Improvement Program
  • Review and approve applicants and provide funding for qualified home owners
  • Administer existing loans
  • Continue marketing the program to maximize its utilization

Housing Preservation Program
  • Review and approve applicants and provide funding for qualified home owners
  • Administer existing loans
  • Continue marketing the program to maximize its utilization

PERFORMANCE MEASURES

PERFORMANCE MEASURES


AUTHORIZED POSITIONS

AUTHORIZED POSITIONS


BUDGET COMMENTS

CURRENT BUDGET

The CDC budget is comprised of several different funds. The operating budget is comprised of programmatic related funds, which are primarily accounted for under Funds 862, 876, and 877. In essence, Fund 862 is for housing-related programs and projects, Fund 876 is for programs and projects within the West Covina Project Area (Merged), and Fund 877 is for programs and projects within the Citywide Project Area. All charge backs reflect prior year actual amounts. Charge backs include all cost related to vehicles, telephones, pagers, reprographics, administration, and overhead.

Overall, the fiscal year 2006-2007 and 2007-2008 budgets present a slight increase from the fiscal year 2005-2006 budget. The net budget increase is a result of the following factors:
  • An increase in the cost of Personnel Services

  • An increase in the cost of Materials and Services

  • An increase in the cost of Legal, Consultant, and Other Contractual

PERSONNEL:

Under the current CDC organizational structure, the personnel budget will continue to increase in fiscal years 2006-2007 and 2007-2008 as a result of anticipated salary increases and MOU adjustments that may include salary increases, depending on job classifications.

The CDC is responsible for carrying a percentage of the cost of various indirect personnel. The CDC carries 100% of the cost of five (5) Elective/Appointive positions, 50% of the cost of the City Manager, finance director, and finance account clerk, 35% of the cost of the finance accounting manager, and 25% of the cost of the Assistant City Manager, Assistant City Clerk, controller, accountant, Executive Assistant to the City Manager, Administrative Assistant I to the City Manager's Office, Deputy City Clerk, and the finance management analyst. In addition, it is proposed that the CDC will carry 25% of the cost of the Assistant to the City Manager and Executive Assistant to the City Manager's Office. It will fund the cost of one new senior planner position in the planning department.

MATERIALS & SERVICES:

The Materials and Services budget will experience an increase mainly as a result in an increase in Consultant and Departmental Supplies costs. The CDC will also be responsible for carrying the cost of various City related travel expenses.

FUND 131: HOUSING AND COMMUNITY DEVELOPMENT

Fund 131, 2242 - CDBG Home Improvement Loan Program: The program's budget is to remain constant for fiscal years 2006-2007 and 2007-2008 as set in fiscal year 2005-2006.

FUND 190: BUSINESS IMPROVEMENT DISTRICT

Fund 190 - Business Improvement District (BID): This budget is funded entirely by the membership of the BID. The membership consists of all auto dealerships located in the

West Covina Auto Plaza. The BID's budget will receive a slight continuous increase mainly as a result of the programming, maintenance, and operations costs of the Auto Plaza Sign.

FUND 862: REDEVELOPMENT HOUSING SET-ASIDE

As a result of an increase in personnel, materials, and services costs, the Housing Set-Aside Fund reflects an increase from fiscal year 2005-2006.

Fund 862, 2240 - Housing Preservation Program: The program's budget is to remain constant in fiscal years 2006-2007 and 2007-2008 as set in fiscal year 2005-2006.

Fund 862, 2241 - First Time Homebuyer Program: The program will not carry a budget in fiscal years 2006-2007 and 2007- 2008 due to the program's termination. Staff will continue to manage any outstanding loans.

FUND 876: MERGED PROJECT AREA

The Merged Project Area reflects an increase from fiscal year 2005-2006 in large part to an increase in personnel, materials and services costs. Other significant factors include:

Fund 876, 2220 - Redevelopment Project Development: The Redevelopment Project Development component of the budget will remain fairly constant to cover Consultants, Appraisals, Title, and Escrow costs in an effort to realize target projects in the Merged Project Area.

Fund 876, 2230 - Economic Development Program: The Economic Development component will remain fairly constant over the next two fiscal years as set in fiscal year 2005-2006 with a slight increase in Other Contractual Services and City Newsletter.

Fund 876, 2252 - BKK/West Covina Sportsplex: The BKK/West Covina Sportsplex development will receive an increase in its budget from fiscal year 2005- 2006 to meet the cost of legal and various consultant services necessary for the project.

FUND 877: CITY-WIDE REDEVELOPMENT PROJECT AREA

The City-wide Redevelopment Project Areas will experience an increase to cover the rising cost of Personnel, Materials and Services. Other factors include the following:

Fund 877, 2230 - Economic Development Program: The Economic Development Program section will receive an increase in Other Contractual Services and the City Newsletter.

ACTIVITY TREE

ACTIVITY TREE

BUDGET SUMMARY

BUDGET SUMMARY

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BUDGET SUMMARY

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BUDGET SUMMARY

BUDGET SUMMARY

BUDGET SUMMARY

BUDGET SUMMARY

BUDGET SUMMARY

BUDGET SUMMARY

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BUDGET SUMMARY


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