HomeMy WebLinkAboutItem 3a: Direction Regarding Request from Church in Arcadia to Extend Financial Assistance uu u
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STAFF REPORT
Arcadia Redevelopment Agency
DATE: May 17, 2011
TO: Chairman and Redevelopment Agency Board
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Directorlt
By: Amber Abeyta, Administrative Assistant f
SUBJECT: REPORT, DISCUSSION AND DIRECTION REGARDING REQUEST
FROM THE CHURCH IN ARCADIA TO EXTEND FINANCIAL
ASSISTANCE FROM THE ARCADIA REDEVELOPMENT AGENCY FOR
THE LEASING OF MEETING HALL FACILITIES AND A WAIVER OF
BUILDING PERMIT FEES FOR CONSTRUCTION OF THEIR NEW
FACILITY.
Recommendation: Provide Direction
BACKGROUND
The Redevelopment Agency (Agency) approved a Purchase and Sale Agreement with
the Church in Arcadia to purchase its property at 21 Morlan Place and include as part of
the transaction a site on Live Oak Avenue for a new Church building. The agreement
included a provision for paying the Church up to $2,000 per month for up to 18 months
to cover costs if it were to relocate temporarily to facilitate the Rusnak expansion. This
amount was doubled by the Agency Board to $4,000 per month at their meeting on
January 20, 2009. The Agency has been expending up to $4,000 a month for the
Church in Arcadia to lease space for meetings at Dana Middle School and office space
at 43 East Huntington Drive. The 18 month period expired in July 2010; however the
Church In Arcadia requested the Agency's assistance for another 12 month period due
to unforeseen circumstances that delayed the planning and building of the new Church.
The Board agreed that given the fact the delays were not in the City's control, the
Agency couldn't fund a 12 month extension and approved a 6 month extension at the
September 7, 2010 Board Meeting. The September 7, 2010 Staff Report (Attachment A)
is included for your reference. This 6 month period has expired. The Church in Arcadia
is now requesting an additional 12 month extension of financial assistance from the
Agency for the leasing of Dana Middle School and a waiver of building permit fees for
the construction of the new Church facility.
DISCUSSION
The Redevelopment Agency began paying for the Church in Arcadia's office and
meeting space in January of 2009. Since that time, the Church has held office space at
43 East Huntington Drive and has held Sunday services and meetings at Dana Middle
School for a total of 24 months. The 24 month period includes the 6 month extension
approved by the Board on September 7, 2010. To date, the Redevelopment Agency has
expended $88,314 for leasing of both facilities. Throughout this time the Church in
Arcadia has worked with the City to submit plans and permit applications for their new
building. There have been a number of delays in this process; however the project has
now reached the construction phase and building permits were issued on April 14,
2011.
On April 13, 2011, David Dong, President of the Church in Arcadia, submitted a letter
requesting an additional 12 month extension for financial assistance from the Agency
for leasing of meeting space at Dana Middle School and a waiver of building permit fees
for the construction of the new Church facility. The Church is no longer leasing office
space at 43 East Huntington Drive in order to reduce their monthly lease expense by
$900. In the letter (Attachment B), Mr. Dong explains that because of delays in the
preliminary stages and efforts to reduce the construction costs, they are only now at the
point where construction can begin, and he estimates that it will take up to 12 months to
complete the project. Additionally, the project budget is limited due to unanticipated
delays and expenses. The 12 month extension requested would require a $66,920
appropriation from Agency unprogrammed reserves. This amount includes $36,000 for
the continued leasing of Dana Middle School, $25,920 for the waiver of building permit
fees and additional fees estimated at $5,000 for fire sprinklers, fire alarms and water
meter connection.
FISCAL IMPACT
The impact to the Redevelopment Agency of the extension of financial assistance for
leasing of Dana Middle School facilities and the waiver of building permit fees could be
$66,920. This amount would be appropriated from the Agency's unprogrammed
reserves; there would be no impact to the General Fund.
RECOMMENDATION
Provide direction.
Approved: DO--d
Donald Penman, Executive Director
Attachment A: September 7, 2010 Staff Report
Attachment B: April 13, 2011 letter from David Dong, President of the Church In
Arcadia
Church In Arcadia
May 17, 2011
Page 2 of 2
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P* PI
iii 14' STAFF REPORT
Arcadia Redevelopment Agency
DATE: September 7, 2010
TO: Chairman and Redevelopment Agency Board
FROM: Jason Kruckeberg, Assistant City Manager /Development Services
Director �L
SUBJECT: REPORT, DISCUSSION, AND DIRECTION REGARDING
REQUEST FROM THE CHURCH IN ARCADIA TO EXTEND
FINANCIAL ASSISTANCE FROM THE ARCADIA
REDEVELOPMENT AGENCY FOR THE LEASING OF OFFICE
AND MEETING HALL FACILITIES.
Recommendation: Provide Direction
BACKGROUND
The Redevelopment Agency approved a Purchase and Sale Agreement with the
Church in Arcadia to purchase its property at 21 Morlan Place and include as
part of the transaction a site on Live Oak Avenue for a new Church building. The
agreement included a provision for paying the Church up to $2,000 per month for
up to 18 months to cover costs if it were to relocate temporarily to facilitate the
Rusnak expansion. This amount was doubled by the Redevelopment Agency
Board to $4,000 per month at their meeting on January 20, 2009. The Agency
has been expending up to $4,000 a month for the Church in Arcadia to lease
space for meetings at Dana Middle School and office space at 43 East
Huntington Drive. The 18 month period expired in July 2010. The Church in
Arcadia is now requesting an extension of the Agency's assistance for another
12 month period, to conclude in July 2011.
DISCUSSION
The Redevelopment Agency began paying for the Church in Arcadia's office and
meeting space in January of 2009. Since that time, the Church has held office
space at 43 East Huntington Drive and has held Sunday services and meetings
at Dana Middle School. Through the 18 month period, the Church has worked
with the City to submit plans and permit applications for their new building. There
have been a number of delays in this process, however, and final plans were
submitted for a building permit on July 29, 2010.
On August 2, Wendy Doo, attorney for the Church in Arcadia, submitted a letter
that requested an extension to the City's 18 month reimbursement period. This
letter (Attachment A) incorporated comments made by architect John Peruzzi
and outlined a number of reasons why the project was delayed and is not under
construction. In a letter dated August 10, the City /Agency responded with a
timeline of events and facts related to the submittals and processing of this
project (Attachment B). The City's letter offered to expend the remaining
allocation approved by the Agency Board (roughly two months of rent for the
meeting hall and four months for the office). On August 25, Ms. Doo submitted
another letter, this time requesting a one year extension of the Agency's
assistance, through July, 2011. Each of these letters provides additional detail
on the reasons for the request and the Agency's response.
The Church's building permit plans were submitted on July 29 and plan check
fees were paid on August 23. The plans were routed upon receipt and are
currently being reviewed by City Departments and the City's contract plans
examiner. The August 25 letter from Ms. Doo states that the Church is hopeful
they can complete the project in 12 months. The 12 month extension requested
would require a $48,000 appropriation from Agency unprogrammed reserves.
(Staff believes the Agency has performed in accordance with the agreement to
provide rent assistance and in fact is recommending some added time.
Therefore, staff does not see any justification for additional subsidy. )
FISCAL IMPACT
The impact to the Redevelopment Agency of the extension of the Rent Subsidy
Agreement with the Church in Arcadia will be $48,000. This amount would be
appropriated from the Agency's unprogrammed reserves; there would be no
impact to the General Fund.
RECOMMENDATION
Provide direction.
Approved: 2 P
Donald Penman, Executive Director
Attachment A: August 2, 2010 letter from Wendy Doo, Attorney at Law
Attachment B: August 10, 2010 letter from Jason Kruckeberg
Attachment C: August 25, 2010 letter from Wendy Doo, Attorney at Law
ATTACHMENT A
LO= ivii lion atreet, quite JUL Mailing Address: P 0 Box 3156
l C ) San Marino CA 91108 South Pasadena CA 91031 -6156
August 2, 2010
CITY OF ARCADIA
240 W. HUNTINGTON DRIVE
ARCADIA, CA 91007
JASON KRUCKEBURG, `? } 2010
COMMUNITY DEVELOPMENT ADMINISTRATOR
RE: Church in Arcadia, 630 E. Live Oak Avenue DEVELOPMENT SERVICES
Dear Mr. Kruckeburg:
The purpose of this letter is to discuss the status of the relocation of the Church in
Arcadia (the "Church ") and the temporary location leased from the City of Arcadia (the
"City").
As you may be aware the development of the Church's new location is currently not on
track to be completed within the original estimated timeframe. This is due to many
unforeseen circumstances and a few mishaps which have delayed planning and
development. This potentially creates a serious issue since the Church's temporary lease
of the satellite location received in exchange for the agreement to relocate is soon
expiring. Without a completed new location, and faced with the prospect of losing
support from the City for the temporary location, the Church fears that it may have no
reliable gathering place to continue serving the community of Arcadia.
With this in mind, we would like to request an extension of the temporary lease paid for
by the City to allow the Church to continue serving the community in its temporary
satellite location until development of the new location is completed.
An extension of the temporary lease would not only confirm the community's belief in
the City's compassion and support of its residents, but we believe that an extension is
also warranted given the events and circumstances leading to the delay in development.
Please find attached a letter from John P. Peruzzi, the architect working with the Church
on this development, discussing in detail the various reasons for the project's delay.
As outlined in Mr. Peruzzi's letter, there have been several contributing factors leading to
the delay, which included inadvertent delays during the City's own procedures in the
planning phase. During the plan review process of the civil engineering drawings, the
civil engineer originally submitted a set of drawings to resolve issues related to
hydrology and the site's proximity to the LA County flood control basin. After an all-
department meeting resulted in an agreement on the design, the second plan check was
submitted. When the Church was notified that the corrections were ready, it was
discovered that the City had inadvertently failed to route the drawings to Public Works
for approval. The drawings had to be routed back, delaying the progress by four weeks.
Once the Church was called to pick up the third round of comments, it was discovered
that the City had inadvertently failed to route the plans to John L. Hunter. Once again,
Wendy L. Doo Attorney at Law telephone (626) 403.3332 facsimile (626) 403.7733
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San Marino CA 91108 Mailing Address: P 0 Box 3156
South Pasadena CA 91031 -6156
the progress was delayed by four additional weeks to correct the oversight and allow for a
full and proper plan check by all necessary parties.
In addition, there have been several other reasons for the delay in development, many of
which cannot be attributed to any particular party. These include: the unusual nature of
the site that the City selected for the Church; complex challenges caused by strict
standards and the location's proximity to the LA County flood control basin; additional
months required for final site zoning and parcel map recordation; and the overly
ambitious timeline set by the original temporary lease. I will refer you to Mr. Peruzzi's
letter which discusses in detail the circumstances surrounding these other reasons for the
delay.
One consideration I do want to draw attention to is the fact that the time originally
allotted for the new development was much too ambitious for this type of project. A
development facing these types of design hurdles would be a challenge even for the most
experienced design and development team. In this case, the team leading the project is a
group of inexperienced Church members, volunteering their time to guide the project in
order to help the Church. While we understand that this consideration does not justify
delays in the project's development, we believe that it must be taken into account when
considering the reasonableness of the project's original demanding timeframe.
For these reasons, we request the City to grant an extension of the Church's temporary
lease paid for by the City while the new location development is completed. Without this
support from the City, the Church in Arcadia faces the prospect of being without a place
to gather and serve the community, as well as losing membership of those who may feel
let down and abandoned by the Church and the City of Arcadia.
We would greatly appreciate your immediate attention to this matter as the expiration of
the temporary lease is fast approaching. If there is any further information you require
during the City's evaluation of this request, or if you have questions or would like to
discuss this matter further, please do not hesitate to contact our office.
Very Truly Yours,
WENDY L. DOO
Attorney at Law
WD:jl
cc: Don Penman; Church in Arcadia
Wendy L. Doo Attomey at Law telephone (626) 403.3332 facsimile (626) 403.7733
P[kUZZI
ARCHITECTS
2010 July 15
Jason Kruckeberg - Community Development Administrator
City of Arcadia
240 W. Huntington Drive
Arcadia, CA 91007
T: 626.574.5442
RE: Church in Arcadia — 630 E. Live Oak Avenue
Dear Mr. Kruckeberg,
I write this letter after a meeting with the members of the Church in Arcadia. We
jointly discussed that this project has moved forward very slowly, and discussed
some of the reasons associated with the slower than normal process. Together,
we have exposed some of the reasons, and feel that the nature & location of this
project is in many ways responsible for a large portion of the delay. I have been
asked to document some of these reasons, such that the Church in Arcadia
might request the City of Arcadia to participate in continued support of their
"satellite location'.
Reason #1 — Site Appropriateness:
One of the largest struggles for our way forward has been the unusual nature of
the site that the City has selected for the Church. It's aspect ratio is highly
unusual at more than 5:1, being 100' wide, and over 500' deep. We realized
early in the process that we were going to need much more design time to create
a building that works with a site this unusual, with it's access issues, etc. For this
reason, we even had to revise the site plan at an additional public hearing as we
began to realize how not only the site, circulation, parking, and security would
work, but the hydrology as well. We believe that these issues slowed our effort
about 4 months.
Reason #2 — Site Civil Engineering and Hydrology:
Due to the strict state standards, and being next to the LA County flood control
basin, we confronted the issue of the how to deal with on site water, as well as
the zone around the project that we would be responsible for. The issue became
complex enough that we had a meeting at the City with all the departments
represented, as well as John L. Hunter. Mr. Hunter agreed that it was a complex
issue, and felt that the Civil Engineer (G4 Group) presented a good knowledge of
what is required. The meeting adjourned with the conclusion that we would
8800 VENICE BLVD SURE 317 LOS ANGELES CALIFORNIA 90034 TEL 310.838.9766 FAX 310.838.0760
PLkJJZZI
ARCHITECTS
study alternate site designs which would require a revision to the site plan. Once
this site plan was revised, we would send these plans around to the agencies for
review, using methods proposed by the Civil Engineer for the NPDES standards.
We believe that this issue took in the neighborhood of 3 months to come to an
equitable condusion.
Reason #3 — Delay in Plan Check of Civil Engineering:
Although this is in no way a complaint nor an indictment of the City procedures,
the City did inadvertently delay the plan review process of the Civil Engineering
drawings. The Civil Engineer originally submitted a set of drawings for flush out
the items in "Reason #2" within this letter, which led to the all department
meeting. Once we had an agreement to the way forward, the second plan check
was submitted. When we were called that corrections were ready, we went to
pick them up and it was then discovered that the City had forgotten to route the
drawings to Public Works. The drawings needed to be routed back, taking
approximately 4 additional weeks. Once we were called for to pick up the 3"
round comments, we discovered that the plans had not been routed to John L.
Hunter, so once again, there was an approximate 4 week wait to get the full plan
check routed. Total time delay, approximately 2 months.
Reason #4 — Client Sophistication and Readiness:
This is a delicate category, but I feel the need to show the effect of this issue on
our timing. The typical client who is developing complex properties and buildings
costing in the millions of dollars has lots of experience in the process leading up
to the commencement of construction. You would obviously assume that the
members in the Church in Arcadia had none. Whereas you might not see this as
an unknown or additional time delay, I differ in that opinion. When the members
of the Church were approached by the City to relocate their Church, I'm sure
their belief at that time is let's hire an architect and a builder, and get going ".
However, as anyone is the development and building trade is well aware, you
cannot simply hire people to do for you what is not yet defined. It is a long and
complex track to complete a design process of a building this complex that will
house 1,000 people. To add to that complexity, the Church in Arcadia makes all
their decisions through "fellowship', or committee, as most churches in the
United States do. This complexity in our process has drawn out our solution
anywhere from 6 to 12 months.
8800 VENICE BLVD SUITE 317 LOS ANGELES CALIFORNIA 90034 TEL 310.838.9766 FAX 310.838.0760
P[kUZZI
ARCHITECTS
Again, I'm sure you are asking yourself "why would this be the City of Arcadia's
problem ? ". I am not writing to place blame on the Church members, nor the City.
However, the Church members, due to their lack of knowledge and sophistication
in this field, had no idea of what they were getting into, so could not have known
that they needed to give themselves more time than an experienced
development team would have needed. Not knowing this, they blindly assumed
that the timelines presented by the City were reasonable. Although this time line
may have been reasonable for an experienced development team, Church
members forming a committee without multiple development experiences could
not be expected to understand the process, and all the requirements that they
would need, to move the project along as fast as possible. This phase of a
project involves constant owner decisions, as everything we design, draw, and
engineer is a manifestation of their needs.
Reason #5 — Final Site Zoning and Parcel Map Recordation:
Once the Church in Arcadia had their first approval through the planning process,
the City still was required to executed a plan amendment for a zoning change to
the parcel, as well as record the final parcel map. This process took
approximately 6 additional months.
We hope you understand all these issues, and would be more than happy to
provide further disclosure of time lines and dates. Please do not hesitate to call
should you have any further questions or comments.
Sincerely,
•
PERUZZI CHITECTS
John P. Pe - , A.LA, N.C.A.R.B.
Cc: David Dong, Church in Arcadia
8800 VENICE BLVD SUITE 317 LOS ANGELES CALIFORNIA 90034 TEL 310.838.9766 FAX 310.838.0760
ATTACHMENT B
0 R
G wi p y
4 11' nip August 10, 2010
\% o� o ¢ °' Wendy Doo, Attorney at Law
14 Ualty of Doo & Chong
City O r 2596 Mission Street, Suite 302
r San Marino, CA 91108
A rcadia RE: Church in Arcadia, 630 East Live Oak Avenue
Dear Ms. Doo:
The City of Arcadia and Arcadia Redevelopment Agency (City) is in receipt of
Development your letter dated August 2, 2010 regarding the status of the relocation of the
Services Church in Arcadia and the City's assistance to the Church. Your letter requests
De artment an extension of the temporary payments by the City to the Church for both the
p office space and the meeting space the Church is currently utilizing for an
undetermined amount of time. Attached to your letter is a letter from John
Peruzzi, project architect, which outlines some of the perceived reasons for the
Jason Kruckcberg delays in completing the Church planning and development.
Assistant City Manager/ As you know, the City and the Church entered into a Purchase and Sale
Development Services Agreement that outlined an 18 month period within which the City would
Director reimburse the Church up to $2,000 per month. Through a subsequent Council
action on January 20, 2009 the City Council, sitting as the Redevelopment
Agency Board (Agency Board) doubled the amount of reimbursement to the
Church to $4,000 per month for a total amount of $72,000. Even though escrow
closed in September of 2008, this 18 month period was "kicked off' by the
submittal of grading plans (as per the Purchase and Sale Agreement) in January
of 2009. As a result, the 18 month timeframe ended in July, 2010. Any extension
of financial assistance by the City would need to be approved by the Agency
Board in a public meeting format.
Mr. Peruzzi's letter outlines five reasons why the project has moved forward
more slowly that expected or desired. While we agree that the site is a
challenging site (Reason #1) and there is an issue with the Church in Arcadia's
sophistication in dealing with land use issues (Reason #4), these are not issues
the City can control. In fact, in an initial meeting with Church representatives and
the City, Mr. Peruzzi specifically indicated he was familiar with the City
development process and that he could easily meet the schedule outlined in the
agreement. With regard to the final site zoning and parcel map recordation
process (Reason #5), we acknowledge this was a long and cumbersome
process. However, the Purchase and Sale Agreement was predicated upon the
entering into escrow which did not begin until January of 2009. The map was
recorded in July of 2008 so this timeframe is really not germane to your issues.
Mr. Peruzzi's letter also lists reasons related to the Civil Engineering and
Hydrology for the site and perceived delays in the plan check process. It will be
helpful to look at the facts of these two issues.
The Purchase and Sale Agreement stipulated that "grading plans" be submitted
within 4 months of the close of escrow in order for the Church to trigger the 18
240 West Huntington Drive month reimbursement plan from the City. A grading sheet was submitted in
Post Office Box 60021
Arcadia, CA 91066 -6021
(626) 574 -5415
(626) 447 -3309 Fax
www.ci.arcadia.ca.us
January 2009 by Kevin Garrity, Civil Engineer. Mr. Garrity acknowledged that
what was submitted in January 2009 was far from a complete grading and
drainage plan. Mr. Garrity had discovered that there were some issues related to
overall site drainage and the proximity to the Flood Control Channel that needed
to be addressed prior to a complete plan being submitted. The City
acknowledged these issues and allowed this preliminary grading sheet as a
qualifying "grading plan" to keep the process moving and trigger the
reimbursement schedule. An "all hands" meeting was held as you describe on
February 2, 2009 with our consultants. An alternative was derived that saved
considerable expense and that also required a change to the parking layout.
Tandem parking was needed to approve this change and this is not allowed in
the City. A modification was granted in April, 2009 to allow the Church to utilize
tandem parking. Below is a timeline of overall events through the plan check
process:
• January 13, 2009 — Grading Sheet submitted
• February 2, 2009 — Applicant, staff, and consultant meeting on grading
and drainage
• March - April, 2009 — New plans drawn up to create better drainage
situation, plan for tandem parking approved through Modification
Committee.
• May 1, 2009 — Original plans available for pick up by Mr. Garrity
• October 21, 2009 — Grading /drainage plans resubmitted for second plan
check (5% month delay)
• December 9, 2009 — Second round of grading /drainage plans returned to
Mr. Garrity
• January 28, 2010 — Plans resubmitted for third round of plan check
• March 2, 2010 — Plans made available again for Mr. Garrity to pick up
• July 29, 2010 — Full building plans submitted including grading plans
(nearly 5 months delay). During this period the building was significantly
redesigned. Since the building was significantly modified from the
original approved design, it was presented to Planning Commission
again on June 22, 2010. The plans were submitted on June 7, 2010 so
this approval process was less than three weeks long; however, staff had
originally seen elevations of these plans nearly six months prior to official
submittal. The revised plans were approved as the new design is very
good and much improved from the original.
To summarize, there are at least 10 months of "down time" within the timeframe
where the applicant had plans and the City was simply waiting for a new
submittal. This does not include the nearly six months from the first view of
changes to the building to the submittal date of the revisions in June, 2010. Mr.
Peruzzi's letter makes mention of two 4 week periods that were lost because of
processing errors on the part of the City. Looking back through the City's
tracking records, it is clear that there was an error made on February 8, 2010
where plans were not routed to John Hunter appropriately. It appears from our
records this was a two week gap. We do not see the additional alleged four
week gap in the tracking records.
In addition, the City sent the Church letters dated September 21, 2009 and
February 17, 2010 (at the one year and 6 month marks) reminding the Church of
the deadline for reimbursement and urging the Church to put priority into their
plans. These letters are attached and both were sent to Mr. Peruzzi at the time
of mailing.
As of the date of this letter, all 18 months of rent have been paid for the office
space at 43 -A East Huntington Drive and 16 months of rent have been paid to
Dana Middle School. We are awaiting a bill from Dana Middle School for these
final two months. Even though the records do not reflect the two month delay in
City processing mentioned in Mr. Peruzzi's letter, the City is willing to expend
the remainder of the $72,000 allocated by the Agency Board. According to our
records, this amounts to $3,600 for the office (up to four months of rent) and
$6,162 for Dana Middle School (up to two months of rent). Your letter does not
suggest any projected completion date for the building or any specific time frame
for continued Agency assistance. Any further assistance desired by the Church
would need to be requested of the Agency Board.
While the Church is to be commended for upgrading the exterior design of their
building, this change has caused delays for which the City is not responsible.
The City has made every effort to work with the Church both in terms of project
processing and financing. In addition to the original purchase of the property and
transfer of the Live Oak site to the Church, the City also agreed to construct a
dedicated left turn pocket into the property off of Live Oak and pave a parking
area near the water tanks to accommodate overflow parking needs. The City
believes that the Meeting Hall will be an excellent addition to the City once
completed and we look forward to working with Mr. Peruzzi and the rest of the
Church team through the remainder of the process. Please call me at 626-574 -
5414 if you have any questions.
Sincerely,
6, Jason Kruckeberg
Assistant City Manager /Development Services Director
CC: Don Penman, City Manager
Jim Kasama, Community Development Administrator
Jerry Schwartz, Economic Development Manager
John Peruzzi, Peruzzi Architects
Attachments
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Poi 19 101
eir
Arcadia Redevelopment Agency
240 W Huntington Dr. • P.O Box 60021 • Arcadia, CA 91066 -6021 • 626-574-5409 • fax 626 - 447 -3309
September 21, 2009
Mr. David Dong
Church in Arcadia
43 -A East Huntington Drive
Arcadia, CA 91007
Subject: Status of New Building at 630 East Live Oak Avenue and Reimbursements
from the Arcadia Redevelopment Agency
Dear David:
As you are aware, the Church in Arcadia and the Arcadia Redevelopment Agency has an
agreement by which you are reimbursed for lease costs as part of the temporary
relocation from 21 Morlan Place. The Church vacated that building, in its entirety, in
time to hold your first Sunday service at Dana Middle School on February 15, 2009. You
moved to the office on 43 East Huntington Drive in January, 2009, for which the Agency
had already paid the first and last month's rents directly to your landlord.
The Church's use of Dana Middle School and occupancy of the office at 43 East
Huntington Drive are intended to be short term during the construction of your new
facility at 630 East Live Oak Avenue. To that end, the agreement provides for the
Agency to reimburse the Church for a period of up to 18 months, with the expectation
that your congregation will have occupied the new building before the reimbursement
period ends.
As a reminder, escrow closed on the Agency's purchase of Morlan Place and the
Church's acquisition of the Live Oak property on September 12, 2008. There was a
requirement for you to submit grading plans within four months of the closing date
(January 12, 2009), and that timing was met. Staff met with your architect and engineer
on February 2, 2009 to discuss grading, parking, and drainage issues. However, in the 7
'/2 months since that meeting, the grading plan has not been resubmitted for approval.
During the meeting, your representatives were concerned about some issues related to the
auxiliary parking lot and indicated that the only solution was to design it as a tandem lot.
To accommodate that concern, staff processed a parking modification since tandem
parking is not allowed in the City. Staff has completed the left turn pocket that was
required for access to your site, and will be going out for bids soon to pave and stripe the
parking lot that we agreed to complete.
The Church has been using the Dana Middle School for seven months, meaning that the
Agency is responsible for reimbursing for another approximately 11 months. During that
time, the Church might consider moving quickly with its grading and construction plans
and the actual work at the site. Obviously, once you occupy the new building, all Church
activities can be consolidated from the two locations where they occur now.
We have received additional complaints from other tenants in the building about Church
events or activities that are large and loud, thus disrupting others in the operation of their
businesses. It is important to make sure that the office space is used for Church
administration and small meetings. It should not be used for large gatherings, services,
singing, or any other church -type activity that could disturb the other businesses in the
building or would be more appropriate to be held in a church rather than an office.
Please feel free to contact me about the status of construction- related activities or any
aspect of this letter.
i erely,
if Schwa -
Economic - velopment Manager
Cc: John Peruzzi, Peruzzi Architects
Page 2
I I I
PI arcadia redevelopment agency
240 west huntington drive • p.o. box 60021 • arcadia, ca 91066-6021 • 626 - 574 -5408 • fax 626 -447 -3309
February 17, 2010
Mr. David Dong
Church in Arcadia
43 -A East Huntington Drive
Arcadia, CA 91007
Subject: Status of New Building at 630 East Live Oak Avenue and Reimbursements
from The Arcadia Redevelopment Agency
Dear David:
As you know, the Church in Arcadia and the Arcadia Redevelopment Agency have an
agreement through which you are reimbursed for lease costs as part of the Church's
temporary relocation from 21 Morlan Place. The Church vacated the site on Morlan
Place in its entirety, in time to hold your first Sunday service at Dana Middle School on
February 15, 2009, exactly one year ago. You moved to the office at 43 East Huntington
Drive in January 2009, for which the Agency paid first and last month's rent directly to
your landlord.
The Church's use of Dana Middle School and occupancy of the office at 43 East
Huntington Drive were intended to be short term alternatives during the construction of
your new facility at 630 East Live Oak Avenue. To that end, the agreement provides for
the Agency to reimburse the Church for a period of up to 18 months, with the expectation
that your congregation will have occupied the new building before the reimbursement
period ends.
Escrow closed on the Agency's purchase of 21 Morlan Place and the Church's
acquisition of the Live Oak property on September 12, 2008. There was a requirement
for you to submit grading plans within four months of the closing date (January 12,
2009), and the plans were submitted within that timeframe. Revised grading plans are
currently in plan check, but a grading permit has still not been obtained. As you are
aware, staff has already completed the left turn pocket for to allow entry into the Church
site and processed a parking modification to allow tandem parking, which is otherwise
not allowed in the City. Staff is ready to pave and stripe the lot once the Church is
further along in the development process.
The Church has been using Dana Middle School for one year, meaning that the Agency is
responsible for six additional months of reimbursements, until mid- August 2010. Given
the status of your construction activities, there is still much to be done before
construction of the new building can even be started. It appears now that there will be a
period of time after the Agency reimbursements end but before your new building is
ready for occupancy. You can control the length of that gap by making the construction
of the building a high priority. Our Building Services Division reviews all plans
promptly once they are submitted, so the City of Arcadia will never slow down the
building process. The Church is responsible to keep things moving.
Please feel free to contact me about the status of construction - related activities or any
aspect of this letter.
Si erely,
J rry Sc wartz
Economic Development Manager
CC: John Peruzzi, Peruzzi Architects
ATTACHMENT C
U 2596 Mission Street, Suite 302 Mailing Address: P 0 Box 3156
C San Marino CA 91108 South Pasadena CA 91031 -6156
August 25, 2010 AFDENE"{l
CITY OF ARCADIA
3 ► 2010
240 W. HUNTINGTON DRIVE DEVELOPMENT SERVICES
ARCADIA, CA 91007
ATTN: JASON KRUCKEBURG,
ASSISTANT CITY MANAGER/DEVELOPMENT SERVICES DIRECTOR
RE: Church in Arcadia, 630 E. Live Oak Avenue
Dear Mr. Kruckeburg:
Thank you for your letter dated August 10, 2010 in response to our request regarding the
temporary lease for the Church in Arcadia. We appreciate your thoughtful response and
the gracious offer for the remaining amount of the $72,000 allocated by the Agency
Board for the full lease of the office building and Dana Middle School facilities.
However, the Church requires additional assistance and an extension of the City's lease
of these facilities while the new construction project is completed. The Church would
like to request an extension of the temporary lease paid for by the City to allow the
Church to continue serving the community in its temporary satellite location until
development of the new location is completed.
Therefore, the Church hereby requests that this matter be brought before the City Council
Redevelopment Agency Board at its next meeting for the Board's decision.
Considering the setbacks and delays the new construction project has suffered, the
Church is cautiously hopeful that the project can be completed within 12 months.
Therefore, the Church will request an extension of the temporary leases paid by the City
up to and including July, 2011.
If any information is required in placing this matter on the Agency Board's agenda for
the next meeting, please contact our office. In addition, information regarding this
request, the Agency Board's meeting details, or the procedure for having this hearing
heard would be greatly appreciated.
If you have any questions or would like to discuss this matter further, please contact our
office.
Very Truly Yours,
•-
WENDY L. DOO
Attorney at Law
WD:jl cc: client
Wendy L. Doo Attomey at Law telephone (626) 403.3332 facsimile (626) 403.7733
2596 Mission Street, Suite 302
C Mailing San Marino CA 91108 Address: P 0 Box 3156
South Pasadena CA 91031 -6156
cc: Don Penman, City Manager
Jim Kasama, Community Development Administrator
Jerry Schwartz, Economic Development Manager
John Peruzzi, Peruzzi Architects
Wendy L. Doo Attorney at Law telephone (626) 403.3332 facsimile (626) 403.7733
The Church in Arcadia
630 East Live Oak Avenue
Arcadia, California 91006
"To announce ... the unsearchable riches of Christ as the gospel" - -- Ephesians 3:8
ATTACHMENT B
April 13, 2011
Mr. Don Penman, City Manager
City of Arcadia Council Members
City of Arcadia, California
Dear Sirs:
We are pleased to report that we have finally arrived at the construction stage of our meeting hall. The
permits are in their final stage and we have selected a general contractor, Pan Construction Inc.
However, this process has not been free of unanticipated delays and expenses. Therefore, we are
requesting that the City aid us by 1) waiving all or part of the permit fees, and 2) extending the rent
reimbursement.
When Mr. Penman first approached us about the City acquiring our property, our goal was to come to a
solution that would allow the City to have our old property and allow us to have a meeting hall for our
use. His proposal was to exchange our property for the City -owned parcel at 630 E. Live Oak Avenue.
With our proceeds from the sale, about $3.4 million, we could build a new meeting hall. To make it
possible for us to continue to operate in the interim, he promised to help us get the building permits
quickly, and offered to reimburse us for the rent on a temporary meeting space for eighteen months.
We agreed to the proposal with the assumption that this would give us enough time and money to
construct a new meeting hall.
This turned out to be unrealistic on both counts. We have met with sixteen general contractors, and on
average they estimated the project would take four years and 4 million dollars — this in addition to the
design and engineering expenses of $260,000 we have already incurred. With interest rates declining
from 4% two years ago to below 1% for the past eighteen months, our budget is stretched very thin. We
were able to negotiate with Pan Construction to reduce the construction cost to $3.2 million, which
leaves us very little for fees and contingencies. (The standard contingency for this type of project is 5%
of the total, $160,000 in our case. In addition, we need to prepare $110,000 for project management,
deputy inspection and building, engineering and grating permit fees.) Dividing and mapping the parcel
and designing rainwater drainage were complicated by the proximity of the land to the County flood
control channel. Because of delays in the preliminary stages, we are only now at the point where
construction can begin. This is estimated to take ten months, but a full year is more realistic.
The City Council previously granted us an additional six months of rent reimbursement with the
opportunity to request an additional extension if necessary. We have done our part to move the project
forward and reduce the construction costs; we have also moved out of our office to reduce our monthly
rent expense from $4,000 to $3,000.
We embarked on this project with the understanding that the City would work with us to complete it
successfully. With the end now in sight, we are appealing to the City's promise to help us, and ask that
the City waive part of all of the permit fees and grant us an extension of the rent reimbursement.
Thank you very much for your consideration.
Sincerely yours,
David Dong, President