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HomeMy WebLinkAboutItem 3b: Relocation Plan for 101-111 and 121-159 North Santa Anita and Lease Terms for 33 and 37 West Huntington Drive P!' ii STAFF REPORT Arcadia Redevelopment Agency DATE: November 1, 2011 TO: Chairman and Members of the Agency Board FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director - By: Jerry Schwartz, Economic Development Manager pns SUBJECT: APPROVAL OF THE RELOCATION PLAN FOR THE TENANTS AT 101- 111 AND 121-159 NORTH SANTA ANITA AVENUE, A BUDGET ALLOCATION FOR THE REMAINING RELOCATION CASES AND TO SECURE THE SITE ONCE RELOCATION IS COMPLETE, AND OF LEASE TERMS FOR 33 AND 37 WEST HUNTINGTON DRIVE (SELF STORAGE BUILDING) TO RELOCATE TENANTS FROM THE NORTH SANTA ANITA PROPERTIES Recommendation: Approve BACKGROUND In August 2010, the Arcadia Redevelopment Agency purchased two commercial buildings on North Santa Anita Avenue, between Santa Clara Street and Morlan Place. The properties are 101-111 North Santa Anita Avenue and 121-159 North Santa Anita Avenue, on the west side of the street. On April 5, 2011, the Agency Board approved a contract with Overland Pacific & Cutler (OPC) to oversee the relocation of the tenants in these two buildings. With the restrictions placed on the Agency by the current laws concerning Redevelopment, the relocation process has not had the urgency that it originally did before our activities were curtailed. Nonetheless, the relocation process is ongoing, and tonight's actions are important to allow it to continue so that relocation will be completed when the Agency is ready to take action on the redevelopment of these sites. DISCUSSION Since the tenants first received a letter from the Agency about initiating the relocation process, some have chosen to move to other locations. No tenant has been forced to move. Those that have moved have chosen to stay in Arcadia. OPC has followed the typical relocation process for the tenants that have moved, providing them assistance with their move and making sure that they receive the relocation benefits that are appropriate and lawful. A number of the tenants have elected to stay in the buildings until such time as the Agency requires their relocation. Before the Agency can start the process to force tenants to move by issuing a 90-day notice, the Agency Board must approve the Relocation Plan for these properties. The Relocation Plan was prepared by OPC and it spells out the process, the eligibility for relocation benefits, the role of the Agency and OPC, and the guidelines for appeal if the tenants are not happy with the outcome. The Relocation Plan was sent to all remaining tenants by certified mail on September 30th. To date, OPC has not received any feedback from the tenants. The transmittal told the tenants that the Relocation Plan would be on tonight's agenda, and Agency policy is to allow anyone in the audience a chance to address the Council. This Relocation Plan is similar to the plans that were approved for 19 Lucile Street and the Campus Commons project site. The primary difference is that these are commercial uses, and commercial tenants usually have higher moving costs than most residential tenants. Currently seven (7) tenants have chosen to relocate from the two properties, one tenant is in the process of moving, and seven (7) additional tenants remain to be moved before the properties are vacant. Many of the remaining seven tenants are waiting for the 90- day notice. The 2011-2012 Agency budget included $80,000 for relocation. Approximately $77,500 has been spent to date relocating tenants. The cost to relocate the remaining tenants is estimated at $400,000, according to OPC. The remaining tenants include three hair salons (one of which is in the process of relocating) which can be a high cost to move because of the plumbing and electrical requirements, plus each stylist that rents a chair is treated separately, and needs to be compensated separately. There are two additional tenants that may have high moving costs due to equipment considerations. The actual relocation costs may be less once all tenants have shared their financial information with OPC. Staff is requesting a budget allocation of $400,000 from the Agency's undesignated reserves so that the relocation process can be completed without any delay. The Agency has sufficient funds for this expenditure. Once the buildings are empty, the site will be fenced to keep it free of vagrants and vandalism. The cost to fence the buildings for six months will be $2,600, including privacy screening. It is requested that a $2,600 budget allocation be made from Agency reserves to pay for the fencing. The funding for asbestos removal and demolition of the two buildings is in the approved 2011-2012 CIP budget. The request for bids for this capital improvement will be issued once the building is vacant and secured. The lowest responsible bid will be brought back to the Agency Board for award. In addition, several of those being relocated are interested in moving to Agency-owned property. The Agency owns the Arcadia Self Storage building (former Bekins building) at 35 West Huntington Drive. While that building was originally purchased in 2006 as part of a 2004 Land Assembly and Development Agreement between the Agency and Rusnak, it is the Agency's intent to keep the building rather than include it any expansion of the dealership. The building includes two commercial spaces on Huntington Drive, 33 West Huntington Drive, which is about 1,200 sq. ft., and 37 West Huntington Drive, which is about 800 sq. ft. These spaces have remained vacant so that they could be used to relocate two of the North Santa Anita businesses. The State Santa Anita Properties Relocation/Budget November 1, 2011 Page 2 of 3 Farm insurance office of T.G. Metzger, which is currently located at 149 North Santa Anita, is interested in leasing the 1,200 sq. ft. space at 33 West Huntington Drive. There are discussions with one or two tenants about leasing the 800 sq. ft. space at 37 West Huntington Drive. To facilitate lease negotiations and drafting of leases, we are requesting approval of the following lease terms for both sites: • A five (5) year lease with a five (5) year option to extend • Rent of$1.10 per square foot per month • Tenant is responsible for maintaining their tenant space; Agency will maintain the exterior of the building • Signs will be in keeping with a sign program for the building. • Tenant improvement and sign plans will be submitted to the Development Services Department for review and approval. CALFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) This item is not considered a project per Section 15061 (b)(3) of the CEQA guidelines. FISCAL IMPACT The costs and revenues from the items requested herein involve the Arcadia Redevelopment Agency. The total costs for relocation and fence rental is estimated at $402,600 from undesignated Agency reserves. Revenues from the leasing of the commercial sites at 33 and 37 West Huntington Drive will also come to the Agency as the owner of the property. There is no impact on the General Fund. RECOMMENDATION Approval of the Relocation Plan for the tenants at 101-111 and 121-159 North Santa Anita Avenue, a budget allocation for the remaining relocation cases and to secure the site once relocation is complete, and of lease terms for 33 and 37 West Huntington Drive (Self Storage building) to relocate tenants from the North Santa Anita properties. Approved: Der-•-(4 Donald Penman, City Manager/Executive Director Attachment: Relocation Plan Santa Anita Properties Relocation/Budget November 1, 2011 Page 3 of 3 Relocation Plan North Santa Anita Project Prepared for: City of Arcadia By: Overland, Pacific& Cutler, Inc. 3750 Schaufele Ave.,Suite 150 Long Beach,California 90808 (562)304-2000 September 30, 2011 p INTRODUCTION 1 I. PROJECT AREA DESCRIPTION 3 A. THE REGIONAL LOCATION 3 B. PROJECT SITE LOCATION 4 II. ASSESSMENT OF RELOCATION NEEDS 5 A. SURVEY METHOD 5 B. FIELD SURVEY DATA 5 III. RELOCATION RESOURCES 8 A. METHODOLOGY 8 B. REPLACEMENT SITES AVAILABILITY 8 C. RELATED ISSUES 8 1. Concurrent Displacement 8 2. Temporary Relocation 8 3. Loss of Business Goodwill 9 IV. THE RELOCATION PROGRAM 10 A. PROGRAM ASSURANCES, STANDARDS AND OBJECTIVES 10 B. TECHNICAL ASSISTANCE 11 C. RELOCATION BENEFITS (COMMERCIAL TENANTS) 11 1. Payment for Actual Reasonable and Necessary Moving and Related Expenses 11 2. A Fixed Payment In Lieu of A Payment For Actual Reasonable Moving and Related Expenses 14 D. GENERAL INFORMATION ON PAYMENT OF RELOCATION BENEFITS 15 E. RELOCATION TAX CONSEQUENCES 16 F. GRIEVANCE PROCEDURES 16 G. EVICTION POLICY 16 H. CITIZEN PARTICIPATION 17 I. PROJECTED DATES OF DISPLACEMENT 18 J. ESTIMATED RELOCATION COSTS 18 TABLE 1: Description of Business Uses 6 TABLE 2: Summary of Available Commercial Space 8 � �° i d „ fi r EXHIBIT A: Business Interview Form EXHIBIT B: Business Informational Brochure EXHIBIT C: Public Comments and Response to Public Comments .$YYcr° * 4<i The City of Arcadia (City) and Arcadia Redevelopment Agency (Agency) has been negotiating with Rusnak/Arcadia (Developer)to enter into a Disposition and Development Agreement for the expansion of Rusnak Mercedes Benz dealership in Arcadia (Project). After years of challenging negotiations, Rusnak/Arcadia Mercedes Benz have been working toward increasing the size the dealership by 50% from four acres to six acres. According to the current plan, Rusnak,will create an L-shaped dealership by adding a new showroom along Santa Anita Avenue from Morlan Place to Santa Clara Street, allowing it to benefit from having frontage on both Huntington Drive and Santa Anita Avenue. In the event the negotiations do not produce an agreement with Rusnak (either do to the current legal situation regarding the status of California Redevelopment Agencies or for any other reason), the Arcadia Redevelopment Agency intends to use the site for a large commercial development. The Arcadia Redevelopment Agency believes that combining these two parcels with the two adjacent parcels it currently owns,would create an attractive property that would be able to take advantage of the Santa Anita Avenue visibility and traffic and provide a great opportunity for a commercial tenant. Note - While the Agency has been negotiating with Rusnak, the limits on the redevelopment activity from AB 26 and AB27 and temporary restrictions imposed by the California State Supreme Court do not allow any new agreements by the Arcadia Redevelopment Agency until a formal ruling is issued by the Court, likely in January 2012. Only in the event the ruling is favorable to redevelopment could an agreement potentially proceed. Since the relocation process began before these limitations were put in place,the Agency had decided to continue with the relocation process. The City determined the buildings along Santa Anita Avenue blighted, aging and dilapidated, depreciated properties, with mixed character and incompatible land use mixtures, substandard design, underutilized land, and inadequate public improvements. The proposed Project will replace incompatible land uses, such as these older commercial buildings and the former Church in Arcadia site to create a prime commercial site that will upgrade this area and the entire downtown. In addition, the City anticipates other benefits of the proposed Project, such as: • A first class showroom as part of an expanded dealership that will remain in Arcadia for at least ten additional years. • The preservation of existing jobs and creation of new jobs. Overland,Pacific&Cutler,Inc. Page 9 Relocation Plan for the North Santa Anita Project-Arcadia, California • Value to the community of the continuing presence of a Mercedes Benz dealership. • Increased value to other landowners and potential developers from the investment by Rusnak/Arcadia in their dealership. The Project site currently contains a small, outdated strip mall that involves 17 commercial uses. The Developer is proposing to demolish the existing commercial units and construct a state-of-the-art car dealership facility. As proposed, the expansion of Rusnak Mercedes Benz dealership will be made possible through a combination of Agency Redevelopment funds, and private Developer equity. Within the Project boundaries there are 17 businesses subject to displacement should the Project proceed as planned. Prior to undertaking any displacing activity,the City is required by law(California Government Code Section 7260 et seq.),and regulation(California Code of Regulations, Title 25 Chapter 6)to prepare a relocation plan subject to public review and City Council approval.This Plan conforms to the requirements of the State of California law and regulation or federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended, and the implementing federal regulations of Handbook 1378 of the Department of Housing and Urban Development (Guidelines), as appropriate. The general purposes of a relocation plan are to describe the circumstances of affected parties, the general market for commercial properties and the City's program to provide required technical and financial assistance. It is important to be aware that the preparation and approval of a relocation plan fulfills an administrative requirement but does not, by itself, constitute a commitment to proceed with the Project. This Plan was written by Overland, Pacific& Cutler, Inc. (OPC), a professional consulting firm specializing in public agency acquisition and relocation projects.The Plan is organized in four sections: 1. A description of the Project area and specific Project site (SECTION I); 2. Relocation needs assessment of businesses subject to displacement as a result of the Project (SECTION II); 3. An assessment of available commercial properties within Arcadia and surrounding communities (SECTION III); and 4. The steps and procedures that the Developer will follow to ensure a fair and equitable relocation program (SECTION IV). Overland,Pacific&Cutler,Inc. Page 2 ' .€ "s"t*',:4 M w 4 ^ , ,v t y 1�.'c�99,-"PVT 7w."w,rt.n s ,'%Ell l ° 1 x e iw ;F::4':::: a K.r.4� @ Kt. �+ !,�2yr# .: I , :. A. THE REGIONAL LOCATION The North Santa Anita Project is located in the City of Arcadia which lies at the base of the 5,500 foot San Gabriel Mountains, approximately 15 miles northeast of Los Angeles and is within the famed "Sixty Mile Circle" which encompasses a dynamic concentration of people, business, educational institutions and entertainment venues. With easy access to the 210 Freeway, in addition to a number of federal and state highways, there is a solid infrastructure for easy connections with the rest of Southern California and beyond. Adjacent communities include Sierra Madre, East Pasadena, East San Gabriel, Temple City, North El Monte and Monrovia. (See Figure 1: Regional Project Location) Angeles Naaon.I Fong Akadena qy, Fain yo Park l l., S- I 1 A MI*Nor 10 WW1,Q1L-&Md h '14 •Trc I PAM 4Minyon Perk W Grundnaw An z z �' Shwa...I VM u_ ..-a- _-�:---- -^--. .- Palk .... I 9brra Madly . fl Dim Dta�d9W,i r I d k 1 L O S A N E L E S D_F;W _Odd I Pasadena__ '. �.G94.9rlda_EMd: ..:._ .,._ ` f , .0a. 4FMR-y Fi,k erdbu If f is • + .«EM Paesd na i,, C A C.I F • Pyoj�t LOtadttl X ry .__ H. 1 r.,.. ( ,c !v.Caddemu�kd ,_ tp,...- ,� { 1 y .nArodliw { 1B yjtugai,04,...:. 9 Ry a1.DuMM,Rd LDuuts..Rd ..,�- 5., ...._ .1__I__..I ? , P+n4 a -- ' Munn%:.., V aivi(�i ,.t'rr•t"" yi.D�° ! err Aw i t t -0,4ian mine _ '� " :� r 'i N� Fa Dan Recreational An \ JJ 'ulh \ ..3✓, Wnt�an Dr: Ave...'l AL.*.Az p.. L9wlen Ap ../ _ .. ''� I 1 In Dr 4M .. Edde .. amtte CNtI -w'i !!W'„'> 'A1Cm PaA __�.lsa 7unaa_Rr,. _ 1 , ' Les I rh bra :1n p4abran to i d W Mam « r . 1 - , Anaelaa 5l.. _ _.. ,. erAmp[14.1 y - r- ;i.,.., ''- a Rea. d _..on p'"• 'Saldwln Karl}, Figure 1: Regional Project Location Overland, Pacific&Cutler,Inc. Page 3 Relocation Plan for the North Santa Anita Project-Arcadia, California B. PROJECT SITE LOCATION The Project site owned by the City is located at the northwest corner of Santa Anita Avenue and Morlan Place intersection and is generally bounded by Santa Clara Street on the north, Santa Anita Avenue on the east, Morlan Place on the south and backing into Mercedes Benz dealership parking lots on the west. (See Figure 2:Project Site Location) r ! I �'_":.KL St:Joseph SE � , yy' St E St Joseph St V R$L-Joseph:St-A 17 i E Santa Clara St ■ 2% Off �Prolect Location x i . ! Wheeler Ave dr' Iii m Ffistgnc Route:BG _ 2 d � A V? x Mina K C g Camay Park 1 I v rr r Figure 2:Project Site Location Overland,Pacific&Cutler,Inc. Page 4 . � 4. A. SURVEY METHOD To obtain information necessary for the preparation of this Plan, personal interviews among potentially affected business owners were conducted in May and June 2011. Interviewers were successful in obtaining survey responses from 15 of 17 business owners. The interviews were conducted on-site in places of business or limited, publically available property profile information was used to include non-responsive businesses not personally surveyed. Survey questions of business owners concerned the nature of the business, leasehold circumstances, annual revenues,description and size of current operations, special facility requirements, and area/facility preferences with respect to possible replacement locations. The descriptive data in this Plan concerning commercial uses are based solely on anecdotal responses. No attempt was made to qualify information provided by business owners. A sample of the business interview forms used in the interview process is presented as Exhibit A of this report. B. FIELD SURVEY DATA There are 17 separate businesses within the Project including three hair salons, hair salon rental stations, an insurance agent's offices, a photo shop, a tailor shop, cellular repair and retail, supply store, a Chinese school, a travel agency, and offices for document preparation and in-home health care professionals. Personal surveys were conducted with 15 businesses and a limited information observed by relocation consultant while in the area or obtained from public records is included for a non-surveyed businesses. All surveyed businesses lease or rent their space. Table 1 below provides a breakdown of the commercial uses by type, estimated square footage, notable features, monthly lease amounts and number of employees when available. Overland, Pacific&Cutler,Inc. Page 5 Relocation Plan for the North Santa Anita Project-Arcadia,California TABLE 1: Description of Business Uses Business Name Type of Est Particular Features Lease #of Address Business Sq.Ft. Employees* Larry's Photo Shop photo studio and lab 472 dark room $755 1 3 Morlan PI Quick Fit Tailor tailor shop 420 sawing machine, iron $760 1 5 Morlan PI board Trendy Tresses hair and nail salon 800 4 haircut stations,2 unk 1 101 N Santa Anita Ave wash sinks, manicure/pedicure station Cherly Swartz rental station within 200 hairstylist renting $600 1 101 N Santa Anita Ave Trendy Tresses station on a weekly basis Wini Kwa rental station within 200 unknown 1 101 N Santa Anita Ave Trendy Tresses Ratna Ruski rental station within 200 manicure/pedicure $600 1 101 N Santa Anita Ave Trendy Tresses station on a weekly basis Solution A Hair Salon hair salon 800 4 hair stations $1,160 4 103 N Santa Anita Ave Business Casual travel agency and 1,380 2 businesses under $1,425 2 Apparel dba Hot Spots promotional one corporation;two Travel services desks, phones 109 N Santa Anita Ave First Chinese School non-profit school 600 student desks $500 2 121 N Santa Anita Ave Balanced Living At provider of in-home 1,800 office desks,phones, $1,725 14 Home Health health care printers, computers 123 N Santa Anita Ave Fuli USA Group, Inc unknown 147 N Santa Anita Ave T.G. Metzger Insurance State Farm 1,200 offices $950 4 149 N Santa Anita Ave insurance agent U.S. Pager and Cellular mailbox rentals and 1,000 mailbox lockers, retail $950 2 151 N Santa Anita Ave cellular sale fixtures, includes jewelry/gift shop Freedom Document document 700 legal services,desks, $650 2 Preparation Service preparation services internet 155 N Santa Anita Ave office - Overland,Pacific&Cutler,Inc. Page 6 Relocation Plan for the North Santa Anita Project-Arcadia, California TABLE 1: Description of Business Uses Business Name Type of Est Particular Features Lease #of Address Business Sq.Ft. Employees* AV Industrial, Inc dba retail supply shop 510 shelves and retail $500 2 All Pro Supply fixtures 157 N Santa Anita Ave Hair Connection barber shop 500 3 stations,sink $665 1 159 N Santa Anita Ave Nancy renting a station 150 hairstylist station $500 1 159 N Santa Anita Ave from Hair Connection Totals 10,480 _ 39 *including owner Overland, Pacific&Cutler,Inc. Page 7 A. METHODOLOGY A resource survey was conducted within a three mile radius of the Project to determine the availability of commercial replacement sites utilizing the following sources: - Commercial brokerages serving the area - Internet sources B. REPLACEMENT SITES AVAILABILITY The availability of commercial, retail space in the Arcadia area surrounding the Project site was researched through local brokerages. Space was found within three miles from the Project at rates ranging in asking price from $1.10 - $3.00 per square foot. Table 2, summarizes the availability of the variously sized properties for lease. TABLE 2: Summary of Available Commercial Space Type of Property Total Found Price Range Median Price 100-1,000 sq ft-Retail 13 $1.21 -$3.00 $1.80 1,001 -2,000 sq ft-Retail 24 $1.10-$3.00 $1.80 2,001 -3,000 sq ft-Retail 4 $1.60-$3.00 $1.87 C. RELATED ISSUES 1. Concurrent Displacement There are no current public projects in the City of Arcadia which could compete with the Project for the replacement site resources. The replacement units available on the market are sufficient to absorb this Project and its displacements. 2. Temporary Relocation No need for temporary relocation is anticipated. Overland, Pacific&Cutler,Inc. Page 8 Relocation Plan for the North Santa Anita Project-Arcadia,California 3. Loss of Business Goodwill Business goodwill consists of the benefits that accrue to a business as a result of its location, reputation for dependability,skill or quality,and any other circumstances resulting in probable retention of old, or acquisition of new patronage.Where claims for loss of business goodwill are anticipated, State law (California Code of Civil Procedure Section 1263.510)requires business owners to prove all of the following: (1) The loss is caused by the taking of the property; (2) The loss cannot reasonably be prevented by relocation of the business, or by taking steps and adopting procedures that a reasonably prudent person would take to preserve the goodwill; and (3) The compensation for the loss has not been included as a relocation payment, or duplicated in compensation otherwise awarded to the owner. Claims for loss of business goodwill are considered under the acquisition provisions of Government Code Section 7260 et seq. and are not compensable as a function of the relocation assistance program. Overland,Pacific&Cutler,Inc. Page 9 �,�r '^....e r xnR.. e W17,6,1 +,2„ .y�' "5'a. = � c ,r Overland, Pacific & Cutler Inc. (OPC) has been retained by the City to assist in the administration of the relocation program. The City staff will monitor the performance of OPC and be responsible to approve or disapprove OPC recommendations concerning implementation of the Plan. The relocation program consists of two principal components: Technical Assistance and Financial Assistance. A. PROGRAM ASSURANCES, STANDARDS AND OBJECTIVES The relocation program to be implemented by the City will conform with the standards and provisions of the Law and Regulations. To meet its regulatory obligations, the City and its representatives will: 1. Distribute appropriate written information concerning the City's relocation program; fully inform eligible Project occupants of the nature of and procedures for obtaining relocation assistance and benefits; 2. Determine the needs of each commercial displacee eligible for assistance; 3. Assist commercial uses to identify appropriate replacement space; 4. Provide assistance that does not result in different or separate treatment due to race, color, religion, national origin, sex, marital status or other arbitrary circumstances; 5. Supply information concerning federal and state programs and other governmental programs providing assistance to displaced persons; 6. Assist each eligible business to complete applications for benefits; 7. Make benefit determinations and payments in accordance with state law and the City's relocation guidelines; 8. Assure that no occupant is required to move without a minimum of 90 days written notice to vacate; Overland,Pacific&Cutler, Inc. Page 10 Relocation Plan for the North Santa Anita Project-Arcadia,California 9. Inform all persons subject to displacement of the City's policies with regard to eviction and property management; and 10. Establish and maintain a formal grievance procedure for use by displaced persons seeking administrative review of the City's decisions with respect to relocation assistance. B. TECHNICAL ASSISTANCE Technical assistance services are provided in order to inform displacees about the relocation program, help find replacement accommodations, coordinate claims processing, maintain a communication link with the City and assist with the involvement of outside providers of support services. To follow through on the technical assistance component of the relocation program, relocation staff will perform the following functions: 1. Interview each Project business to determine existing circumstances,general needs and concerns and preferences regarding the replacement of existing accommodations and facilities; 2. Distribute and review a printed Informational Brochure (See Exhibit B)with each displaced business; 3. Assist with arrangements for the purchase of real property, the completion of applications for replacement sites and the preparation and submission of claim forms to request relocation benefits; 4. Make referrals to governmental and non-governmental service providers. C. RELOCATION BENEFITS (COMMERCIAL TENANTS) Eligible businesses and non-profit organizations are entitled to select: 1)compensation for actual reasonable and necessary moving and related expenses, or 2) a fixed moving payment not to exceed $20,000. 1. Payment for Actual Reasonable and Necessary Moving and Related Expenses This payment may include the following costs: Overland, Pacific&Cutler,Inc. Page 11 Relocation Plan for the North Santa Anita Project-Arcadia, California • Transportation of persons and property from the present location to the replacement location (costs are limited to a distance of 50 miles); • Packing, crating, uncrating, and unpacking personal property; • Disconnecting, dismantling, removing, reassembling, and installing relocated and substitute machinery, equipment and other personal property. Includes connection to utilities available nearby and modifications necessary to adapt such property to the replacement structure or to the utilities or to adapt the utilities to the personal property; • Storage of personal property for up to 12 months, at the City's discretion; • Insurance of personal property while in storage or transit and the replacement value of property lost, stolen, or damaged (not through the fault or negligence of the displaced person) in the process of moving, where insurance is not readily available; • Subject to certain limitations, any license, permit, or certification required by the displaced business, to the extent that the cost is necessary for reestablishment at the replacement location; • Subject to certain limitations, reasonable and pre-authorized professional services, including architects', attorneys' or engineers' fees, and consultants' charges, necessary for: (1) planning the move of the personal property; (2) moving the personal property; or, (3) installing the relocated personal property at the replacement location; • Subject to certain limitations, the purchase and installation of substitute personal property limited to the lesser of: (1)the estimated cost to move the item to the replacement location; or, (2) the replacement cost, less any proceeds from its sale; • Subject to certain limitations, modifying the machinery, equipment or other personal property to adapt it to the replacement location or to Overland,Pacific&Cutler,Inc. Page 12 Relocation Plan for the North Santa Anita Project-Arcadia,California utilities available at the replacement location or modifying the power supply; • Actual direct losses of tangible personal property resulting from moving or discontinuing a business or non-profit organization, not-to-exceed the lesser of: (1) the fair market value of the property for continued use at its location prior to displacement; or, (2) an amount equal to the reasonable expenses that would have been required to relocate the property, as determined by the City, subject to certain limitations; • Actual and reasonable expenses incurred in searching for a replacement business or non-profit organization location, not-to-exceed$1,000, and including compensation for transportation expenses; time spent searching for a reasonable location; meals; lodging; and, real estate broker or agent fees; • A Reestablishment allowance of up to $10,000, available to farms, nonprofit organizations and small businesses with no more than 500 employees. Reestablishment allowance payments are made in addition to compensation provided for actual, reasonable and necessary moving expenses. Reestablishment allowance expense categories include but are not limited to: 1) Repairs or improvements to the replacement property as required by Federal, State or local law, code or ordinance; 2) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting business; 3) Construction and installation costs for exterior signing to advertise the business; 4) Provision of utilities from right-of-way to improvements on the replacement site; 5) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling or carpeting; Overland,Pacific&Cutler, Inc. Page 13 Relocation Plan for the North Santa Anita Project-Arcadia, California 6) Licenses, fees and permits when not paid as part of moving expenses; 7) Feasibility surveys, soil testing and marketing studies; 8) Professional services in connection with the purchase or lease of a replacement site; 9) Estimated increased costs of operation during the first 2 years at the replacement site for such items as: a. Lease or rental charges b. Personal or real property taxes c. Insurance premiums, and d. Utility charges, excluding impact fees; 10) Impact fees or one-time assessments for anticipated heavy usage; 11) Other items essential to the reestablishment of the business. 2. A Fixed Payment In Lieu of A Payment For Actual Reasonable Moving and Related Expenses The option to claim a fixed payment enables both for-profit and non-profit businesses to receive compensation for moving expenses without supplying documentation of bids and expenses. The payment amount available to any individual business is based on an average of annual net earnings over a two year period. For businesses which have not been in operation for two years, income figures can be annualized. The method for establishing income is through tax returns and/or certified financial statements. The payment to an eligible business or non-profit organization may not be less than $1,000, nor more than $20,000. To qualify for this payment a displaced business: • Cannot be a part of a commercial enterprise having at least three other establishments which are not being acquired by the City, and which is under the same ownership and engaged in the same or similar business activities; Overland,Pacific&Cutler,Inc. Page 14 Relocation Plan for the North Santa Anita Project-Arcadia, California and • Must not be able to relocate without substantial loss of patronage; and • Must have contributed at least 33 1/3 percent of the owner's total gross income during each of the 2 taxable years prior to displacement or meet specific earnings criteria. D. GENERAL INFORMATION ON PAYMENT OF RELOCATION BENEFITS Claims and supporting documentation for relocation benefits must be filed with the City within 18 months from: • The date the claimant moves from the acquired property; or, • The date on which final payment for the acquisition of real property is made, whichever is later. The procedure for the preparation and filing of claims and the processing and delivery of payments will be as follows: 1. Claimant(s) will provide all necessary documentation to substantiate eligibility for assistance; 2. Assistance amounts will be determined in accordance with the provisions of the Law; 3. Required claim forms will be prepared by relocation personnel in conjunction with claimant(s). Signed claims and supporting documentation will be submitted by relocation personnel to the City; 4. The City will review and approve claims for payment, or request additional information; 5. The City will issue benefit checks, which will be available for pick-up by Claimants, unless circumstances dictate otherwise; 6. Final payments will be issued after confirmation that the Project area Overland,Pacific&Cutler,Inc. Page 15 Relocation Plan for the North Santa Anita Project-Arcadia, California premises have been completely vacated, and actual residency at the replacement unit is verified; 7. Receipts of payment will be maintained in the relocation case file. E. RELOCATION TAX CONSEQUENCES In general, relocation payments are not considered income for the purpose of the Internal Revenue Code of 1968, or the Personal Income Tax Law, Part 10 of the Revenue and Taxation Code. The above statement on tax consequences is not intended to be provision of tax advice by the City. Displacees are responsible for consulting with their own tax advisors concerning the tax consequences of relocation payments. F. GRIEVANCE PROCEDURES The City's Grievance Policy will follow the standards described in Article 5, Section 6150 et seq., Title 25, Chapter 6, State of California, Department of Housing and Community Development Program guidelines. Briefly stated, displacees will have the right to ask for administrative review when they believe themselves aggrieved by a determination as to eligibility, the amount of payment, the failure to provide comparable replacement site referrals or the City's property management practices. Requests for review will be directed first to the Economic Development Manager at the City of Arcadia, or other authorized designee of the City. Details concerning the entire appeals process will be provided upon request. G. EVICTION POLICY 1. Under the State of California guidelines, eviction by the City is permissible only as a last alternative with the exception of persons considered to be in unlawful occupancy. A displaced person's eviction does not affect eligibility for relocation assistance and benefits. Relocation records must be documented to reflect the specific circumstances surrounding the eviction. 2. Eviction may be undertaken only for one or more of the following reasons: Overland,Pacific&Cutler,Inc. Page 16 Relocation Plan for the North Santa Anita Project-Arcadia,California a) Failure to pay rent, except in those cases where the failure to pay is due to the lessor's failure to keep the premises in habitable condition, is the result of harassment or retaliatory action or is the result of discontinuation or substantial interruption of services; b) Performance of a dangerous, illegal act in the unit; c) Material breach of the rental agreement and failure to correct breach within 30 days of notice; d) Maintenance of a nuisance and failure to abate within a reasonable time following notice; e) Refusal to accept one of a reasonable number of offers of replacement sites; f) A requirement under State or local law or emergency circumstances that cannot be prevented by reasonable efforts on the part of the public entity. H. CITIZEN PARTICIPATION As the process for considering the Project moves forward, the City will observe the following protocol: 1. Provide affected tenants with full and timely access to documents relevant to the relocation program; 2. Provide technical assistance necessary to interpret elements of the Relocation Plan and other pertinent materials; 3. Issuance of a general notice concerning the availability of the Plan for public review, as required, 30 days prior to its proposed adoption. Distribution of the Plan, upon request, to all affected and interested parties; 4. The inclusion of written or oral comments and City's response concerning the Plan as an attachment to the Plan when it is forwarded to the City Council for adoption. Overland,Pacific&Cutler,Inc. Page 17 Relocation Plan for the North Santa Anita Project-Arcadia,California I. PROJECTED DATES OF DISPLACEMENT The City contemplates that the relocation process will commence in summer of 2011 and be completed no later than March 2012. J. ESTIMATED RELOCATION COSTS The total budget estimate for relocation-related payments for this Project, including a 10 percent contingency is $440,000. The estimated relocation budget does not include any payments related to property acquisition, improvements pertaining to realty, or loss of business goodwill. In addition,the budget does not consider the cost of any services necessary to implement the Plan and complete the relocation element of the Project. Overland,Pacific&Cutler,Inc. Page 18 EXHIBIT A; hiterview Farm I OVERLAND, PACIFIC & CUTLER, INC. - BUSINESS INTERVIEW FORM CASE ID: - - - PROJECT: AGENCY: CONSULTANT: OCCUPANT INFORMATION: MAJOR EVENTS: Claimant: (Business Name) Site Move-In: / / Address: First Offer: / / Initial Interview: / / Site Owner: NAME TITLE PHONE CONTACT 1: ( ) - CONTACT 2: ( ) - OWNERSHIP TYPE: ❑Sole Proprietorship ❑Partnership ❑Corporation ❑Non-Profit OCCUPANCY STATUS: ❑ Rent ❑ Lease ❑ Mortgage ❑ Own(Clear) ❑ Vacant ❑ No Contact ETHNICITY: ❑ White ❑ Hispanic ❑ Black ❑ Asian ❑ Other: PRIMARY LANGUAGE: ❑ English ❑ Spanish ❑ Other: BUSINESS INFORMATION Business Description: ❑ Relocate Business ❑ Willing to Relocate from Community Monthly Occupancy Payment: $ Federal Tax ID: Special Features/Improvements: Number of Employees: Annual Gross Sales:$ Annual Net Income:$ Area/Facility Preference: FACILITY AREA(SQ.FT): Office/Retail: Whse/Shop: Open Yard: . . D 's. s Bah e,. - { INFORMATIONAL STATEMENT FOR BUSINESSES, NONPROFIT ORGANIZATIONS AND FARMS Introduction The property on which you now conduct your business is in an area to be improved with the assistance of the City of Arcadia ("Displacing Agency"). The Agency's plans require the acquisition of several land parcels and the relocation of existing commercial uses. You will be notified in a timely manner as to the date by which you must move. Please read this information as it will be helpful to you in determining your eligibility and the amount of your relocation benefits under the federal and/or state law. We suggest you save this informational statement for reference. This is not a notice to move. It is important that you do not move before you learn what you must do to receive relocation payments and other assistance to which you may be entitled. The Agency has retained the services of Overland,Pacific&Cutler, Inc. (OPC),a qualified professional relocation firm,to assist you. The firm is available to explain the program and benefits. Their address and telephone number is: Overland, Pacific & Cutler, Inc. 3750 Schaufele Ave., Suite 150 o V l RI A N D Long Beach, CA 90808 C ;; <� LFH' INC. Telephone: (562) 304-2000 Spanish speaking representatives are available. Si necesita esta informacibn en Espanol, por favor Ilame a su representante. Summary of Relocation Assistance As an eligible displaced person,you will be offered appropriate financial and advisory assistance to help you relocate, including: A. Payment for your moving expenses. You will receive either: • A Payment for Actual Reasonable Moving and Related Expenses, or • A Fixed Payment In Lieu of a Payment for Actual Moving and Related Expenses B. Referrals to suitable replacement locations. C. Other help to reestablish your business and minimize the impact of the move including help in preparing claim forms to request relocation payments. If you disagree with the Agency's decision as to your right to a relocation payment, or the amount of the payment, you may appeal that decision. Business Informational Statement Page 1 SOME GENERAL QUESTIONS How will I know I am eligible for relocation assistance? You should receive a written notice explaining that you are eligible for relocation assistance.Ordinarily,eligibility begins on the date the owner of the property receives the Agency's initial written offer to purchase it. Therefore,you should not move before that date. If you do,you may not be eligible for relocation assistance. How Will the Agency Know How Much Help I Need? You will be contacted at an early date and personally interviewed by a representative of the Agency to determine your needs and preferences for a replacement location and other services.The interviewer will ask questions about such matters as your space requirements. It is to your advantage to provide the information so that the Agency can assist you in moving with a minimum of hardship. The information you give will be kept in confidence. How Soon Will I Have to Move? Every reasonable effort will be made to provide you with sufficient time to find and reestablish your business in a suitable replacement location. If possible, a mutually agreeable date for the move will be worked out. Unless there is an urgent need for the property(e.g.,your occupancy would present a health or safety emergency),you will not be required to move without at least 90 days advance written notice. It is important, however, that you keep in close contact with the Agency so that you are aware of the time schedule for carrying out the project and the approximate date by which you will have to move. I Own The Property, Will I Be Paid For It Before I Have To Move? If you reach a voluntary agreement to sell your property to the Agency, you will not be required to move before you receive the agreed purchase price. If the property is acquired through an eminent domain proceeding,you cannot be required to move before the estimated fair market value of the property has been deposited with the court. (You should be able to withdraw this amount immediately, less any amounts necessary to pay off any mortgage or other liens on the property and to resolve any special ownership problems. Withdrawal of your share of the money will not affect your right to seek additional compensation for your property). Will I Have To Pay Rent To The Agency Before I Move? You may be required to pay a fair rent to the Agency for the period between the acquisition of your property and the date that you move. The rent will not exceed that charged for the use of similar properties in similar areas, however, rent is generally the same as in the prior arrangement. How Will I Find A Replacement Location? The Agency will provide you with current and continuing information on available replacement locations that meet your needs. The Agency may also provide you with the names of real estate agents and brokers who can assist you in finding the type of replacement location you need.While the Agency will assist you in obtaining a suitable replacement location,you should take an active role in finding and relocating to a location of your choice.No one knows your needs better than you.You will want a facility that provides sufficient space for your planned activities. You will also want to assure that there are no zoning or other requirements which will unduly restrict your planned operations. Ask the Agency to explain which kind of moving costs are eligible for repayment and which are not eligible. That will enable Business Informational Statement Page 2 you to carry out your move in the most advantageous manner. What Other Assistance Will be Available To Help Me? In addition to help in finding a suitable replacement location, other assistance, as necessary,will be provided by the Agency. This includes information on Federal, State, and local programs that may be of help in reestablishing a business. For example, the Small Business Administration (SBA) provides managerial and technical assistance to some businesses. There may also be a government grant or loan program which can help you reestablish your business.The Agency will assist you in applying for help available from government agencies.The range of services depends on the needs of the business being displaced. You should ask the Agency representative to tell you about the specific services that will be available to you. I Have A Replacement Location And Want To Move. What Should I Do? Before you make any arrangements to move, notify the Agency, in writing,of your intention to move. This should be done at least 30 days before the date you begin your move. The Agency will discuss the move with you and advise you of the relocation payment(s) for which you may be eligible, the requirements to be met, and how to obtain a payment. I Plan To Discontinue My Business Rather Than Move. What Should I Do? If you have decided to discontinue your business rather than reestablish,you may still be eligible to receive a payment. Contact the Agency and discuss your decision to discontinue your business.You will be informed of the payment, if any,for which you may be eligible,the requirements to be met, and how to obtain your payment. What Payment For Moving Expenses will I receive? Every business is entitled to a relocation payment to cover the reasonable cost of moving. You may choose either: A. A Payment For Actual Reasonable Moving and Related Expenses, or B. A Fixed Payment In Lieu of Moving and Related Expenses (if you meet the eligibility requirements). What is Payment For Actual Reasonable Moving And Related Expenses? If you choose a Payment For Actual Reasonable Moving And Related Expenses, you may claim the cost of: A. Transportation of personal property from your present location to the replacement location. (Generally, transportation costs are limited to a distance of 50 miles. If you plan to move beyond 50 miles, discuss your planned move with the Agency.) B. Packing, crating, uncrating, and unpacking personal property. C. Disconnecting, dismantling, removing, reassembling, and installing relocated and substitute machinery, equipment and other personal property.This includes connection to utilities available nearby and modifications necessary to adapt such property to the replacement structure or to the utilities or to adapt the utilities to the personal property. This includes alterations to the replacement structure required to reinstall machinery, equipment or other personal property Business Informational Statement Page 3 D. Storage of personal property for a reasonable period of time, if required. E. Insurance of personal property in connection with the move and required storage.And the replacement value of property lost, stolen, or damaged in the process of moving where insurance is not readily available. F. Any license,permit or certification required by the displaced business,to the extent that the cost is(1)necessary to its reestablishment at the replacement location and(2)does not exceed the cost for the remaining useful life of the existing license, permit, or certification. G. Reasonable and preauthorized professional services,including architect's,attorney's,and engineer's fees,and consultant's charges, necessary for(1) planning the move of the personal property, (2) moving the personal property, or(3) installing the relocated personal property at the replacement location. H. Relettering signs, printing replacement stationery made obsolete by the move and customer notifications. I. The reasonable cost incurred in attempting to sell an item that is not relocated. J. Actual direct loss of personal property.This payment provides compensation for property that is neither moved nor promptly replaced with a "substitute item"at the replacement location. Payment is limited to the lesser of: (1)the estimated cost of moving the property or(2)the fair market value of the property for its continued use at the old location, less any proceeds from its sale. To be eligible, you must make a good faith effort to sell the property, unless the Agency determines that such effort is not necessary. K. Purchase and installation of substitute personal property. Payment will be limited to the lesser of: (1) the estimated cost to move the item to the replacement location,or(2)the actual cost of the substitute item delivered and installed at the replacement location, less any proceeds from its sale or its trade-in value. It is important to discuss your plans with the Agency before you proceed. L. Searching for a replacement location. This payment may not exceed$1,000.00 and may cover costs for: • Transportation expenses • Time spent searching for a replacement location, based on a reasonable salary or earnings • Reasonable fees paid to real estate agents or brokers to find a replacement location (not fees related to the purchase of a site) • Meals and lodging away from home The Agency representative will explain all eligible moving costs,as well as those which are not eligible. You must be able to account for all costs that you incur; please keep all your receipts. The Agency will inform you of the documentation needed to support your claim. You may minimize the amount of documentation needed to support your claim if you elect to"self-move"your property. Payment for self-move is based on the amount of an acceptable low bid or estimate obtained by the Agency. If you self-move,you may move your personal property using your own employees and equipment or a commercial mover. If you and the Agency cannot agree on an acceptable amount to cover the cost of the"self-move,"you will have to submit full documentation in support of your claim. You may elect to pay your moving costs yourself and be repaid by the Agency or, if you prefer, you may have the Agency pay the mover. In either case, let the Agency know before you move. Select your mover with care. The Business Informational Statement Page 4 Agency representative can help you select a reliable and reputable mover. When a payment for"actual direct loss of personal property"or"substitute personal property"is made for an item,the estimated cost of moving the item may be based on the lowest acceptable bid or estimate obtained by the Agency. If not sold or traded-in,the item must remain at the old location and ownership of the item must be transferred to the Agency before you may receive the payment. What are Reestablishment Expenses? As part of Payment For Actual Reasonable Moving And Related Expenses, a small business, farm or non-profit organization may be eligible to receive a payment of up to$10,000 for expenses actually incurred in relocating and reestablishing such operation at a replacement site. Eligible expenses must be reasonable and necessary, as determined by the Agency. They may include but are not limited to the following: A. Repairs or improvements to the replacement real property as required by federal, state or local law, code or ordinance. B. Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business. C. Construction and installation costs for exterior signage to advertise the business. D. Provision of utilities from right-of-way to improvements on the replacement site. E. Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling or carpeting. F. Licenses,fees, and permits where not paid as part of moving expenses. G. Feasibility surveys, soil testing and marketing studies. H. Advertising of replacement location. I. Professional services in connection with the purchase or lease of a replacement site. J. Estimated increased costs of operation during the first 2 years at the replacement site,for such items as: 1. Lease or rental changes 2. Personal or real property taxes 3. Insurance premiums, and 4. Utility charges(excluding Impact fees) K. Impact fees or one-time assessments for anticipated heavy utility usage. L. Other items that the Agency considers essential to the reestablishment of the business. Business Informational Statement Page 5 What Expenses Are Ineligible for Reestablishment Payment? The following is a non-exclusive listing of reestablishment expenditures not considered to be reasonable, necessary or otherwise eligible: A. Purchase of capital assets, such as office furniture, filing cabinets, machinery or trade fixtures. B. Purchase of manufacturing materials,production supplies, product inventory,or other items used in the normal course of the business operation. C. Interior or exterior refurbishments at the replacement site except as otherwise provided for under the business reestablishment payment. D. Interest costs associated with any relocation expense or the purchase of replacement property. E. Payment to a part-time business in the home which does not contribute materially to the household income. What is Fixed Payment In Lieu Of A Payment For Actual Reasonable Moving And Related Expenses? A Fixed Payment In Lieu Of A Payment For Actual Reasonable Moving And Related Expenses to a business or farm operation is based on the average annual net earnings of the business or farm operation. The payment to an eligible business or farm operation may not be less than$1,000,nor more than$20,000.The nonprofit organization may be eligible for a payment from $1,000 to$20,000 subject to the following: A displaced nonprofit organization may choose a fixed payment as stated above if the Agency determines that it cannot be relocated without a substantial loss of existing patronage (membership or clientele.) A nonprofit organization is assumed to meet this test, unless the Agency demonstrates otherwise. Any payment in excess of$1,000, must be supported with financial statements for the two 12 month periods prior to displacement The amount to be used for the payment is the average of the last two(2)years annual net earnings. Documentation required may be income tax returns,certified financial statements and accounting records or other similar evidence acceptable to the Agency.To qualify for an In-Lieu payment: A. A displaced business: 1. must own or rent personal property which must be moved in connection with the displacement and for which an expense would be incurred in such move, and the business vacates or relocates from its displacement site. 2. must be unable to relocate without a substantial loss of existing patronage. 3. must not be part of a commercial enterprise having more than one other entity which is not being acquired by the Agency, and which are under the same ownership and engaged in the same or similar business activities. 4. must not be operated at a displacement dwelling solely for the purpose of renting such dwelling to others. Business Informational Statement Page 6 5. must not be operated at the displacement site solely for the purpose of renting the site to others. 6. must have contributed materially to the income of the displaced person during the two(2)taxable years prior to displacement. B. A displaced nonprofit organization (1) must be unable to relocate without a substantial loss of its existing patronage, and(2)must not be part of an enterprise having another establishment which is not being acquired by the Agency. C. A displaced farm operation must meet certain minimum income requirements. The average annual net earnings of a business farm operation are one-half of its net earnings before Federal,State, or local income taxes during the two(2)taxable years immediately prior to the taxable year in which it was displaced. If not in business for a full two years prior to displacement, the net earnings shall be based on the actual period of operation at the acquired site projected to an annual rate. Average net earnings may be based on a different period of time when the Agency determines it to be more equitable. Net earnings include any compensation paid to the owners of the business,a spouse or dependents. The displaced person shall furnish the Agency proof of net earnings through income tax returns,certified financial statements,or other reasonable evidence which the Agency determines is satisfactory. The Agency will inform you as to your eligibility for this payment and the documentation you must submit to support your claim. Remember, when you elect to take this payment you are not entitled to reimbursement for any other (actual)moving expenses. I Own An Outdoor Advertising Display. What Relocation Payment Will I Receive? As the owner of an outdoor advertising display, you are eligible for a Relocation Payment For Actual Reasonable Moving And Related Expenses. You are not eligible to receive a Payment In Lieu Of A Payment For Actual Reasonable Moving And Related Expenses. If you choose not to relocate or replace the sign,the payment for"direct loss of personal property"would be the lesser of: (1)the depreciated reproduction cost of the sign,as estimated by the Agency, less the proceeds from its sale,or (2)the estimated cost of moving the sign without temporary storage. The Agency will inform you as to the exact costs that may be reimbursed. How do I File A Claim For A Relocation Payment? You must file a claim for a relocation payment.The Agency will provide you with the required claim forms,assist you in completing them, and explain the type of documentation that you must submit in order to receive your relocation payments. If you must pay any relocation expenses before you move (e.g., because you must provide a security deposit if you lease your new location), discuss your financial needs with the Agency.You may be able to obtain an advance payment. An advance payment may be placed in"escrow"to ensure that the move will be completed on a timely basis. If you are a tenant, you must file your claim within 18 months after the date you move. If you own the property,you must file within 18 months after the date you move,or the date you receive the final acquisition payment,whichever is later. However,it is to your advantage to file as soon as possible after you move.The sooner you submit your claim, the sooner it can be processed and paid. If you are unable to file your claim within 18 months,the Agency may extend Business Informational Statement Page 7 this period. You will be paid promptly after you file an acceptable claim. If there is any question regarding your right to a relocation payment or the amount of the payment,you will be notified, in writing, of the problem and the action you may take to resolve the matter. Appeals If you disagree with the Agency's decision as to your right to a relocation payment or the amount of payment,you may appeal the decision to the Agency.The Agency will inform you of its appeal procedures. At a minimum,you will have 18 months to file your appeal with the Agency.Your appeal must be in writing. However, if you need help,the Agency will assist you in preparing your appeal. If you are not satisfied with the final appeal decision,you may seek review of the matter by the courts. Tax Status of Relocation Benefits Relocation benefit payments are not considered as income for the purpose of the Internal Revenue Code of 1986 or the Personal Income Tax Law, Part 10(commencing with Section 17001)of Division 2 of the Revenue and Taxation Code,or the Bank and Corporation Tax law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. Lawful Presence Requirement Pursuant to the Public Law 105-117 of 11-21-97, in order to be eligible to receive non-residential relocation benefits in federally-funded relocation projects,the owner of a sole proprietorship and all owners of a partnership must provide information regarding their lawful presence in the United States,and a for-profit or a non-profit corporation must certify that it is authorized to conduct business in the United States. Sole proprietorships or partnerships with owners who are not lawfully present in the United States or who decline to provide this information, may be denied relocation benefits.Relocation benefits will be prorated to reflect the number of owners with certified lawful presence in the US. Additional Information If you have further questions after reading this brochure, contact Overland, Pacific & Cutler, Inc. at (562) 304-2000 and discuss your concerns with your relocation representative. You may wish to read the California Relocation Assistance Act regulations which describes the relocation process in more detail. Business Informational Statement Page 8 •