* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:02] SOCIALIZING IF YOU WISH. UM, KATE, GO AHEAD AND PLEASE START RECORDING THE MEETING. OKAY. I WOULD LOVE TO CALL THE LONG BETWEEN INVESTMENT, UH, COMPANY MEETING THROUGH ORDER. AND TODAY IS FEBRUARY 1ST, WEDNESDAY, FEBRUARY 21ST. MADAM SECRETARY, PLEASE CALL. THANK YOU. VICE CHAIR. VICE CHAIR DELGADO. PRESENT. THANK YOU. DIRECTOR CHAMBERS. DIRECTOR ESPARZA. PRESENT. THANK YOU. DIRECTOR REJO. PRESENT. THANK YOU. DIRECTOR RAMIREZ. PRESENT. THANK YOU. DIRECTOR SIDES PRESENT. THANK YOU. WE HAVE A FORUM. OKAY. THANK YOU. WE CAN, UH, STAND UP FOR THE PLEDGE OF ALLEGIANCE, DIRECTOR ALLEGIANCE. OF COURSE. KAY. CAN YOU PLEASE PUT THE FLAG UP ON THE SCREEN? THANK YOU SO MUCH. ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH STANDS. ONE NATION UNDERGONE INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. SO REPORTS TO THE REGULAR AGENDA. THE FIRST ITEM IS RECOMMENDATION TO RECEIVE AND FILE PRESIDENT'S REPORT. MAY I HAVE A MOTION TO HEAR THIS ITEM? SO SECOND. SECOND. I HAVE A LOT TODAY, OTHER THAN TO SAY WE HAD, UH, THE MOST FUN, UM, EVENT EVER. UH, LAST WEEK. THIS WAS A DEMOLITION EVENT AND THEN THERE WAS A BIG WALL EXCAVATOR, EXCAVATOR INTO THE SIDE OF THE BUILDING, UM, AND BREAK GROUND ON OUR NEW, UM, HABITAT PROJECT. IT WAS A HUGE, UM, SUCCESS. YOU KNOW, THOSE EVENTS AREN'T JUST ENJOYABLE. THEY ACTUALLY RELATE BACK TO THE WORK WE DO HERE. SO WE DEPEND ON, UM, GOODWILL FROM THE PUBLIC AND SUPPORT FROM OUR, UH, COUNCIL LEADERSHIP AND OUTSIDE LEADERSHIP. AND, UM, BEING ABLE TO TELL THE GOOD NEWS THROUGH, UM, EVENTS IS, IS PART OF THAT. SO THAT'S ALL I HAD FOR TODAY. MAKING OTHER ANNOUNCEMENTS. YOU KNOW WHAT EVA DID A GREAT JOB FILLING IN FOR, UM, MARY. SHE SPOKE AT THE GROUNDBREAKING. THAT WAS, THAT WAS VERY NICE TO HAVE YOU. THANK YOU. IS THERE ANY DISCUSSION ON THIS ITEM? OKAY. WE NOT TAKE PUBLIC COMMENT ON THE DIRECTOR'S REPORT. IF ANYONE WOULD LIKE TO SPEAK, PLEASE STAND. THERE'S NO FURTHER COMMENT. SO ITEM NUMBER TWO, RECOMMENDATION TO APPROVE THE MINUTES OF THE LONG BEACH COMMUNITY INVESTMENT COMMITTEE MEETING ON JANUARY 17TH, 2024. UH, MADAM. SO WE WILL, UH, ANNOUNCE, UM, I'M SORRY, GO AHEAD. IT'S OKAY. OKAY. MAY I HAVE A MOTION TO APPROVE THE MINUTES PLEASE? SO SECOND. OKAY. OKAY. HAS BEEN MOVED AND SECONDED BY, UM, THE VICE CHAIR. IS THERE ANY DISCUSSION ON THE ITEM? NO. OKAY. IS THERE ANY PUBLIC COMMENT ON THE MINUTES? IF ANYONE WOULD LIKE TO SPEAK, PLEASE STAND. THERE'S NO PUBLIC COMMENT. UH, WE WILL, UM, NOW MADAM SECRETARY, PLEASE CALL FOR A VOTE. UM, THE ANNOUNCEMENT IN THE MOTION. THANK YOU. OKAY. VICE CHAIR DELGADO. YES. DIRECTOR CHAMBERS? YES. YOU DIRECTOR BARZA? YES. DIRECTOR ? YES. DIRECTOR RAMIREZ? YES. DIRECTOR SIDES? YES. THANK YOU. PLEASE READ THE NEXT ITEM. ITEM NUMBER THREE, RECOMMENDATION TO RECEIVE AND FILE THE HAVE SOME SUCCESSOR ANNUAL REPORT REGARDING THE LOAN AND MODERATE INCOME HOUSING ASSET FUND FOR FISCAL YEAR 2022 DUE TO 2023. AND DIRECT THE PRESIDENT TO POST AND DISTRIBUTE THE REPORT AS REQUIRED BY SECTION 3 4 1 7 6 0.1 OF THE CALIFORNIA HEALTH AND SAFETY CODE. THIS IS CITYWIDE. THANK YOU. MAY I HAVE A MOTION TO HEAR THIS ITEM? [00:05:01] SO MOVE DIRECTOR CHAMBERS. NEED A SECOND? YES. SECOND, DIRECTOR OF SPAR, PLEASE, UH, PRESENT STAFF REPORT ON THIS AGENDA LETTER, UH, WILL BE GIVING AN EXAM REPORT. GOOD AFTERNOON BOARD MEMBERS DIRECTORS ATTACHMENT A YOU SHOULD HAVE, AND THAT IS FOR YOUR REVIEW IN ORDER FOR US TO RECEIVE FILES AND POSTED ON THE WEBSITE. NEXT SLIDE. AFTER THE DISSOLUTION OF REDEVELOPMENT AGENCIES, THE LEGISLATURE ADOPTED SB 3 41, WHICH PROVIDED PARAMETERS ON THE USE OF THE REMAINING LOW AND MODERATE INCOME HOUSING ASSETS FOR THE HOUSING SUCCESSOR AGENCIES. THE LEGISLATION REQUIRES AN ANNUAL REPORT FOR THE USE OF HOUSING ASSETS DURING THE PREVIOUS YEAR TO BE POSTED WITHIN SIX MONTHS OF THE END OF THE YEAR. SO THIS REPORT'S DUE TO BE PREPARED AND POSTED BEFORE APRIL 1ST OF EACH YEAR. NEXT SLIDE. THIS REPORT HAS 13 SECTIONS. SECTION ONE, UM, IS A SMALL NARRATIVE ON LOAN REPAYMENTS. IT'S ON PAGE THREE. SO THIS SUCCESSOR AGENCY REPAID THE CITY FOR THE LOANS PROVIDED TO THE FORMER REDEVELOPMENT AGENCY AND NO FURTHER LOAN PAYMENTS ARE REQUIRED. SECTION TWO IS A TABLE OF, UM, LISTING DEPOSITS MADE TO THE FUND, WHICH TOTALED OVER $1.3 MILLION, MOSTLY FOR LOAN REPAYMENTS AND INTEREST. SECTION THREE IS THE ENDING BALANCE OF THE FUND, WHICH IS JUST OVER $7 MILLION. THE BALANCE AT THE END OF THE LAST YEAR WAS ALMOST $8.5 MILLION. SECTION FOUR LIST EXPENDITURES OF $2.8 MILLION AND INCLUDES MONITORING, HOUSING ACTIVITIES, PROPERTY MANAGEMENT AND ADMINISTRATION FEES. SECTION FOUR, LIST THE EXPENDITURES. I ALREADY WENT THROUGH THAT. SECTION FIVE LIST VALUES OF ASSETS OWNED, WHICH TOTAL OVER EIGHT $84 MILLION. AND THAT'S, UM, THE LAND WHICH STRUCTURES INCLUDE PROPERTY ON SEVENTH STREET ANAHEIM AND LAND AT 41 51 FOUNTAIN. UM, SECTION SIX MAKES NOTES ABOUT TRANSFERS OF WHICH NONE WERE MADE. SECTION SEVEN IS FOR, UM, TO DESCRIBE PROJECT DESCRIPTIONS, WHICH HOUSING SUCCESSOR DOES NOT HOLD OR RECEIVE ANY PROPERTY TAX REVENUE PROJECTS. SO THAT'S REALLY NO UPDATE TO THAT SECTION. SECTION EIGHT INCLUDES A TABLE TO GO OVER COMPLIANCE AND STATUS ON PROPERTIES. AND THE ONLY STATUS UPDATE IS ON 41 51 EAST FOUNTAIN. THE PROJECTS UNDERWAY AND AS YOU ALL ARE AWARE, DISPOSITION AND DEVELOPMENT AGREEMENT IS ESTIMATED TO BE EXECUTED. UM, WAS ESTIMATED TO BE EXECUTED IN FEBRUARY. , SORRY, I PREPARED THIS A LITTLE BIT. YOU'RE WELCOME. UM, SECTION NINE DESCRIBES OUTSTANDING OBLIGATIONS. THERE ARE NONE. NEXT SLIDE. SECTION 10 IS A TABLE TO CALCULATE FOR THE EXTREMELY LOW INCOME HOUSING TEST, WHICH MUST BE AT LEAST 30% AND WE'RE AT 81%. SECTION 11 IS A TABLE TO CALCULATE FOR THE SENIOR HOUSING TESTS, WHICH CANNOT EXCEED 50% FOR PROJECTS IN THE LAST 10 YEARS. AND CURRENTLY WE'RE AT 37%. SO WE'RE FINE THERE TOO. SECTION 1212 IS A TABLE TO CALCULATE FOR THE EXCESS SURPLUS CALCULATION TEST. THERE'S CURRENTLY NO EXCESS SURPLUS, SO THAT'S GOOD. AND SECTION 13 IS A TABLE STATING HOW MANY HOME OWNERSHIP UNITS ARE RESTRICTED, OF WHICH THERE ARE 279 5 WERE LOST IN THE PREVIOUS YEAR DUE TO LOAN PAYOFFS AND EXPIRED RESTRICTIONS. THAT'S THE END OF THE REPORT. THOSE ARE ALL THE SECTIONS. AND THE RECOMMENDATION TODAY IS TO RECEIVE AND FILE THE HOUSING SUCCESSOR ANNUAL REPORT REGARDING THE LOW AND MODERATE INCOME HOUSING ASSET FUND FOR FISCAL YEAR 22, 23 AND DIRECT THE PRESIDENT TO POST AND DISTRIBUTE THE REPORT AS REQUIRED BY SECTION 3 4 1 7 6 0.1 OF THE CALIFORNIA HEALTH AND SAFETY CODE. THAT CONCLUDES THE PRESENTATION AND STAFF ARE AVAILABLE TO ANSWER QUESTIONS SPEAKING. OKAY. THANK YOU SO MUCH FOR THAT PRESENTATION. ARE THERE ANY QUESTIONS FOR STAFF? OKAY, HEARING NONE. UM, IS THERE A DEVELOPER WILLING TO, UM, PRESENT OR HAVE ANY QUESTIONS? NOT FOR THE SITE YET. OKAY. DOES THE BOARD HAVE ANY QUESTIONS, UM, OR DISCUSSION ON THIS? ANY OF THE ITEMS PRESENTED? OKAY. UH, HEARING NONE. CAN WE MOVE TO VOTE? VICE CHAIR [00:10:01] DELGADO? YES. THANK YOU. DIRECTOR CHAMBERS? YES. THANK YOU. DIRECTOR IS MARZA. YES. DIRECTOR REGO? YES. THANK YOU. DIRECTOR RAMIREZ. I'M, YES. THANK YOU. REC YOUR SIDES. YES. MOTION PASSES. UM, IF YOU CAN, UH, UH, WE CAN HAVE YOU READ, UH, MADAM SECRETARY, THE NEXT ITEM. THANK YOU. VICE CHAIR. ITEM NUMBER FOUR, RECOMMENDATION TO APPROVE A CONTRACT WITH LINCOLN HOUSING CORPORATION IN THE AMOUNT OF UP TO 343,365 FOR THE DEMOLITION OF TWO STRUCTURES AT 4 1 5 1 EAST FOUNTAIN STREET APPROVE AND UP TO 343,365. INCREASE TO THE LOAN TO LINK HOUSING CORPORATION AND AUTHORIZE THE PRESIDENT OR DESIGNEE TO EXECUTE ANY AND ALL DOCUMENTS NECESSARY RELATED TO THE DEMOLITION CONTRACT AND LOAN INCREASE. MAY I HAVE A MOTION TO APPROVE REC ITEM OR, YEAH, I'M SORRY TO READ THIS BACK AND FORTH. AN VIA REPORT. GOOD AFTERNOON DIRECTORS. UM, KATE, CAN YOU PULL? PERFECT. THANK YOU. NEXT SLIDE PLEASE. THE L-P-C-I-C ACQUIRED THE SITE IN 2017 FOR THE DEVELOPMENTAL AFFORDABLE HOUSING. UM, SINCE THEN WE SOLICITED PROPOSALS FROM THE, FOR DEVELOPMENT OF THE SITE. WE ENTERED INTO AN ENA HOUSING CORPORATION. WE'VE PROVEN AN EXTENSION TO THE DNA AND LAST NOVEMBER WE AUTHORIZED THE DISPOSITION AND DEVELOPMENT AGREEMENT FOR CONVEYANCE OF THE SITE AND THE LOAN ABOVE TO 5.9 MILLION. NEXT SLIDE. SO THE CURRENT CONDITIONS ON THE SITE ARE THAT THERE ARE TWO, UM, VACANT, TWO VACANT BUILDINGS ON THE SITE THAT HAVE BEEN SO SINCE 2015. UM, CURRENTLY PEOPLE EXPERIENCING HOMELESSNESS HAVE BEEN TRESPASSING ON THE BUILDING AND THIS HAS BEEN HAPPENING FOR YEARS. UM, WE'VE SENT THE LONG BEACH POLICE DEPARTMENT MORE, SEVERAL TIMES, UM, ALONG WITH THE HEALTH DEPARTMENT TO PROVIDE ANY SERVICES. UM, WE'VE HAD DOZENS OF NUISANCE CALLS FROM NEIGHBORS DUE TO NOISE, TRASH, UM, ILLEGAL ACTIVITY, AND JUST THE FLOW OF TRANS EMPLOY IN AND OUT OF THE SITE. UM, ALL EFFORTS TO SECURE THE BUILDING HAVE BEEN COSTLY AND THEY'RE ONLY TEMPORARILY WHEN THE, WHEN THE PSYCHICS VACATED BY THE POLICE DEPARTMENT, THEY JUST TURN ON IN JUST AND GO BACK. UM, THERE'S ASBESTOS, BLACK MOLD AND BIOLOGICAL WASTE THAT HAVE BEEN CREATED, UM, THAT CREATED HEALTH AND HEALTH AND SAFETY HAZARD. NEXT SLIDE PLEASE. SO THESE PICTURES HERE ARE THE CURRENT CONDITIONS, UM, AND WE'RE CONSTANTLY GOING IN AND SENDING, UM, OUR MAINTENANCE IS BEING OUT OF THIS SITE. NEXT SLIDE PLEASE. SO WE'RE RECOMMENDING, UM, EARLY DEMOLITION TO ADDRESS A NUISANCE, THE BLIGHT, THE URGENT HEALTH AND SAFETY CONDITIONS THAT THE PROP, UM, THAT THE PROPERTY IS EXPERIENCING. UM, ON SEPTEMBER OF 2023, WE BEGAN WORKING WITH OUR PUBLIC WORKS DEPARTMENT, UM, TO INITIATE THE DEMOLITION, BUT DUE TO THE PROCUREMENT PROCESS, IT WOULD TAKE AN ADDITIONAL SIX, FOUR MONTHS JUST TO HIRE A CONTRACTOR. SO THE LENGTH WOULD'VE BEEN, YOU KNOW, LONGER THAN WHAT WE ANTICIPATED TO ADDRESS THESE ISSUES. SO THE FASTER ROUTE TO THE DEMOLITION IS TO CONTRACT DIRECTLY WITH LINK SINCE THEY'VE ALREADY GONE THROUGH THE COMPETITIVE PROCUREMENT PROCESS, UH, FOR THIS DEVELOPMENT. NEXT SLIDE PLEASE. SO THE BENEFIT TO CONTRACT DIRECTLY WITH LINK IS THAT THE DEMOLITION COULD WORK, COULD BEGIN MUCH SOONER TO ADDRESS THESE ISSUES. UM, IT MITIGATES A MAJOR LIABILITY OF THE L-B-C-I-C ASSET. THE EARLY DEMOLITION ALSO MEANS THAT THE PROPOSED AFFORDABLE HOUSING PROJECT CAN BE IN CONSTRUCTION. NEXT SLIDE PLEASE. SO THE CONTRACT TERMS, UM, AS WE WOULD WITH PUBLIC WORKS, PROVIDING WAGES GOING TO APPLY SINCE WE USING, UM, STATE FUNDING LINKS MUST LINK MUST REGISTER THE DEMOLITION CONTRACTOR TO THE STATE, UH, DEPARTMENT OF INDUSTRIAL RELATIONSHIP. LABOR COMPLIANT MONITORING IS GOING TO BE EXPECTED AND THAT IS GOING TO BE A REQUIREMENT A OF PERFORMANCE BOND IS REQUIRED. FUNDS WILL BE ADVANCED TO LINK AND BE STRUCTURED AS A DEFERRED LOAN TO REPAID BY LINK. SO THE GONNA INCUR [00:15:01] THE COST OF THE THEM NEXT SLIDE PLEASE. SO THE RECOMMENDATION HERE IS TO APPROVE THE CONTRACT WITH LINK HOUSING CORPORATION AND THE AMOUNT OF $343,365 FOR THE DEMOLITION OF THE TWO STRUCTURES AT 41 51 FOUNTAIN STREET TO APPROVE AN INCREASE OF 343 3 340 $3,365, UM, TO LINK AND AUTHORIZE A PRESIDENT OR DESIGNEE TO EXECUTE ANY AND ALL DOCUMENTS RELATING TO THIS INCREASE IN THE DEMOLITION CONTRACT. THANK YOU. AND THAT IS TO ANSWER ANY QUESTION. THANK YOU FOR THAT PRESENTATION. ARE THERE ANY QUESTIONS FOR STAFF? THIS CHAMBER, WAS THIS A REHAB FACILITY OR SOMETHING? SO THERE'S A LONG HISTORY OF THIS FACILITY, SO, WHICH I THINK SOMETIMES IS GETTING LOST IN THE DISCUSSION. SO, UM, PRIOR TO 2015, THIS WAS A HOME FOR TR YOUTH. UM, IT WAS NOT A WELL RUN FACILITY, IT WAS ACTUALLY AS A RESULT A NUISANCE, UH, EVEN WHEN IT WAS OPERATING. SO IN 2015, UM, CITY COUNCIL KIND OF CEASED AN OPPORTUNITY. THE FACILITY CLOSED TEMPORARILY AND THE CITY'S GOAL WAS TO SEE IT NOT REOPEN. UM, THE MOST EXPEDIENT WAY TO DO THAT WAS TO PURCHASE THE PROPERTY. UM, MOST EXPEDIENT WAY TO DO THAT WAS TO PURCHASE IT WITH AFFORDABLE HOUSING MONEY, UM, WHICH WE DID IN 2017. UM, AND THEN YOU PASSED FORWARD ALL THE WAY TO, OVER THE LAST COUPLE YEARS WE'VE WORKED WITH LINK, UM, TO PUT TOGETHER AN AFFORDABLE HOUSING PROJECT THAT'S BEEN, YOU KNOW, THE, THE SUBJECT OF MUCH, UM, COMMUNITY DISCUSSION. BUT THERE ARE MANY YEARS OF, OF HISTORY TO THAT AND THIS BOARD WILL PROVE THAT. AND NOW, UM, YOU KNOW, IN OTHER CIRCUMSTANCES WE'D BE ABLE TO WAIT ON THE DEMO OR THE CITY'S OWN RULES HAVE REALLY, UH, MADE IT INCREDIBLY DIFFICULT FOR US TO DEMO THE BUILDING. SO THAT'S WHY WE'RE LOOKING TO, TO CONTRACT WITH THEM, TO DEMO THE EXISTING STRUCTURE. SO IT WAS A, A HOME MANY, MANY YEARS AGO, BUT IT'S BEEN VACANT SINCE 20. THIS DEMOTION INCLUDES, SORRY, RESTORATION PARKING CONCRETE SURFACE. THERE'S REMEDIATION, BUT THEY'RE NOT GONNA DO SITE WORK, RIGHT? SO THEY'RE JUST GONNA REMOVE ALL THE STRUCTURES ON SITE AND THERE'LL BE A MIX OF DURING ASPHALT AND CONCRETE. UH, AND THE ACTUAL SITE PREP WORK WILL REMAIN WITH THE CONTRACTOR FOR THE OVERALL BUILDING CONSTRUCTION. DO WE HAVE A GENERAL, UH, FAMILY FOR ONE? CONSTRUCTION WOULD ACTUALLY START SOON AS POSSIBLE, BUT YEAH, WE'RE LOOKING AT, THERE'S ABATEMENT THAT HAS TO BE DONE AND THEN WHEN YOU'LL ACTUALLY SEE THE BUILDING COMING DOWN, IT SHOULD DEFINITELY BE BY THE END OF APRIL. AND THEN IT TAKES ABOUT 30 DAYS TO GET QUITE A BIG STRUCTURE. SO ABOUT 30 DAYS TO GET IT DONE SHOULD BE COMPLETE, COMPLETED BY THE BEGINNING OF JUNE, WHICH WILL MAKE ALL OF THE NEIGHBORS REALLY, REALLY HAPPY. UM, THIS EXPERIENCE IS MAKING US LOOK AT HOW WE HOLD OUR PROPERTIES DIFFERENTLY. I DON'T HAVE AN ANSWER AS TO WHY, BUT WE DID HOLD THE PROPERTY FOR A HANDFUL OF YEARS BEFORE WE HAD SUCH TROUBLE WITH PEOPLE EXPERIENCING HOMELESSNESS, ENTERING IT AND ANALYZING IT. BUT WE ARE WHERE WE ARE NOW AND, UM, AS SOME OF YOU KNOW, UM, DEVELOPMENT FUNDS DON'T COME IN UNTIL ALL OF THE FINANCING HAS BEEN PUT TOGETHER AND IT'S A CLOSE ON CONSTRUCTION FINANCING AND THEN CONSTRUCTION BEGINS. SO THE DEVELOPER HAS NOT YET BROUGHT IN THE FUNDS FOR DEMOS. SO BECAUSE THE REASON WE ARE LOANING THEM TYPICALLY DEMOLITION WOULD, UM, OCCUR RIGHT AS CONSTRUCTION'S BEGINNING. AND SO WE'RE GOING TO LOAN THE FUNDS TO THEM AND THEY HAVE BEEN A GREAT PARTNER AND IT WAS VERY FAST WHEN WE ASKED 'EM TO, UM, HELP US FIND A SOLUTION FOR THIS AND THEN WE'LL GET PAID OUR TYPICAL ROUTE OF A RESERVE RECEIPT PAYMENT AND THEN THE NEW CONSTRUCTION. WHAT'S THE WELL, WE HOPE, UM, WE'RE HOPEFUL. WE GOT AN I I GFI INFRASTRUCTURE GRANT, UM, AWARD JUST WEEKS AGO. AND NOW THE DEVELOPER HAS APPLIED FOR TAX CREDITS. UM, I'M SORRY, MIXING UP THE DEALS HERE. THAT'S A DIFFERENT LINK PROJECT. UM, THIS ONE, UM, WE HAVE GOTTEN THE, UM, YES, WE ARE MINUTES AWAY FROM HOPEFULLY GETTING CONFIRMATION THAT WE'VE GOTTEN AN MHP AWARD, UM, AND THAT WOULD BE IN ABOUT $20 MILLION AWARD. AND AFTER THAT THEY WOULD BE APPLIED FOR TAX CREDITS EITHER IN APRIL OR LATE SUMMER. UM, AND PENDING AN AWARD OF THOSE TAX CREDITS, WE WOULD START MARCH OF 2025. 'CAUSE THERE'S ALWAYS, FROM THE TIME OF TAX CREDIT AWARD, THERE'S A SIX MONTHS WE'D HAVE TO CLOSE ONE OFF BECAUSE THEN MY ONLY OTHER SUGGESTION WOULD BE TO, IF, IF WE HAVEN'T ALREADY HAD MORE MONEY FOR FENCING [00:20:02] THAT BUILDING, I THINK THAT IT, IT'S FENCED ALREADY. YEAH. UM, BUT IT'S A GREAT SUGGESTION THAT WE'LL WORK WITH THE CONTRACTOR AND THEN TO MAKE SURE THAT IT'S ALWAYS SECURE. YEAH, THEY TAKE IT ALL OUT. WE'RE GONNA LEAVE THE STOP. I, I DO HAVE A QUESTION. JUST I THANK YOU FOR, FOR YOUR QUESTIONS. UM, I, WHEN YOU SAY APPROVE AN UP TO 3 43 65 INCREASE TO THE LOAN, IS THAT, IS IT ONCE YOU RECEIVE THE, THE LOAN FROM THE DEVELOPER OR FROM LINK, DOES IT COME WITH INTEREST RATE OR IS THAT THE MAXIMUM? WE'RE PROVIDING THE LOAN AND THERE'S CONTINGENCY BUILT IN, IN CASE FOR THINGS THAT COME UP. SO THAT'S WHY WE DO AN UP TO AMOUNT BECAUSE WE DON'T WANNA SAY THAT WE'RE GIVING 'EM THE FULL AMOUNT TO SPEND IT. RIGHT. SO WE'VE BUILT IN A CONTINGENCY. AND SO IF THEY DON'T SPEND IT ALL, IT'S NOT NEEDED, THEN WE LOAN LESS THAN THAT AMOUNT. AND, AND ALSO I WANNA TALK THE CITY BECAUSE MOST OF THE DEVELOPMENTS I SEE, I SEE THAT YOU GUYS WRAP, YOU KNOW, UH, THE, THE SITE AND THEN, YOU KNOW, JUST COVER IT WITH OTHER DEVELOPMENTS AND IT DOESN'T LOOK LIKE AN EYES SOURCE. SO. SO THANK YOU FOR YOUR QUESTIONS. UM, DOES ANYONE HAVE ANY MORE QUESTIONS FOR STAFF? DID YOU HAVE ONE, ONE QUESTION. THE DEMOTION IS ONLY FOR A BUILDING ON, UH, THE PROPERTY ON THE FOUNTAIN, NOT WHAT NICK OWNS NEXT TO WELL, COURT IS SEPARATE. YEAH. OKAY. ANYONE ELSE? I JUST WANNA SAY IT'S SO COMMENDABLE THAT WE'RE PAYING ATTENTION TO THIS SITUATION GIVEN THAT, AND DANGEROUS THAT THIS PARTICULAR SEGMENT TO PEOPLE COMING IN RESIDENT AROUND. WELL, IT'S INTERESTING, YOU, YOU, YOU MAY HAVE BEEN ALLUDING TO THIS, BUT YOU SAID IT IS MAKING US RETHINK OUR APPROACH TO HOLDING PROPERTY GOING FORWARD. SO MAYBE WE JUST ANTICIPATE THIS, IF WE WERE GOING TO HAVE TO HOLD A DILAPIDATED PIECE OF PROPERTY IN THE FUTURE THAT WE MIGHT JUST MOVE FORWARD WITH SOMETHING DEMOLITION SOONER. YEAH, SO IF WE'RE CONTEMPLATING, UM, THAT WE WOULD NOT TAKE POSSESSION OF PROPERTY UNLESS EITHER IS DEMO OR THERE'S A PLAN DEMO. THERE IS OTHER DEALS THAT ARE EITHER ALREADY IN THE WORKS OR LEGACY AND WE HAVE TO WORK THROUGH THOSE. BUT IT DEFINITELY CHANGES THE, WE THINK ABOUT, UM, STRUCTURING THINGS UP FRONT AND, UH, THE CITY HAS A LOT OF PROCUREMENT RULES, WHICH IS GOOD AND IMPORTANT, BUT WHAT HAPPENED IN THIS CIRCUMSTANCE WAS THE PROJECT WAS TOO EXPENSIVE TO USE LIKE AN ON-CALL, WHAT'S CALLED A JOB CONTRACTOR. BUT THE AMOUNT WOULD BE SO LOW THAT NO CONTRACTOR IS GONNA WANT TO GO THROUGH THE CONVOLUTED CITY BIDDING PROCESS TO BID ON THIS PROJECT. IT IS IN A SWEET SPOT AND A BAD PLACE OF BEING, UH, TOO EXPENSIVE AND TOO CHEAP AT THE SAME TIME. SO WE'RE GONNA HAVE TO BE CREATIVE ON EVERY DEAL, WHETHER IT'S ASKING THE SELLER TO DEMOLISH THE PROPERTY BEFORE TRANSFERRING TITLE OR HAVING OUR DEVELOPMENT PARTNERS DO THE DEMO. UM, WE'RE JUST GONNA HAVE TO FIGURE THAT OUT. UM, THERE'S SOME STATE RULES THAT DON'T HELP US, UM, BECAUSE YOU'RE NOT SUPPOSED TO START CONSTRUCTION BEFORE, UM, THE DISBURSEMENT OF THE, THE LOAN FROM THE STATE. BUT WE'LL FIND WAYS TO, TO WORK THROUGH ALL OF THAT. AND YOU, WE HAVE KIND OF A ROADMAP. UNFORTUNATELY, STAFF SPENT SIX TO EIGHT MONTHS BECOMING WAY MORE EXPERTS IN DEMOLITION THAN WE EVER DREAMED. AND WE WENT DOWN A PATH THAT DIDN'T GET US TO ANYTHING FRUITION. AND SO NOW WE HAVE THIS ROADMAP AND WE ARE GOING TO BRING ANOTHER AWARD OF CONTRACT TO YOU IN APRIL FOR THE WEST HOLLYWOOD, UH, WORKLOAD DEAL BECAUSE WE DON'T WANNA, UM, TAKE OWNERSHIP OF THAT, A VACANT BUILDING, MUCH LIKE A WITHOUT HAVING A PLAN. AND SO, UM, NOW THAT WE DO HAVE THIS STRUCTURED SORT OF IN PLACE A PATH FORWARD, UM, WE DON'T PLAN TO HAVE OWNERSHIP OF THAT AND WITH THE BUILDING FOR MORE THAN SIX WEEKS. BEFORE WE START THAT ALL ON THAT. WELL, THANK YOU. UM, IF YOU DON'T HAVE ANY MORE QUESTIONS FOR STAFF OR THAT CAN, UM, GET A MOTION TO APPROVE THIS ITEM. SORRY. SKIPPING ONE SEC. . SORRY. UH, ARE THERE ANY QUESTIONS FROM THE PUBLIC FOR THIS ITEM? CAN PLEASE STAND HEARING? NONE, [00:25:02] UH, HEARING NONE, UH, IF WE CAN HAVE A MOTION TO PLEASE APPROVE THIS ITEM. THANK YOU. VICE CHAIR DELGADO? YES. THANK YOU. DIRECTOR CHAMBERS? YES. DIRECTOR ESPARZA? YES. THANK YOU. DIRECTOR REJO? YES. THANK YOU. DIRECTOR RAMIREZ? YES. THANK YOU. DIRECTOR SIDES. YES, THANK YOU. MOTION PASSES IF I MAY. WHO MADE THE MOTION AND WHO WAS THE SECOND? I THINK THE MOTION AND THE SECOND WERE MADE BEFORE DISCUSSION STARTED. RIGHT? DO YOU HAVE THAT NOW? UM, YEAH, WE, WE NEED THAT. UM, CAN WE GO AHEAD AND COLLECT THAT AT THIS POINT? WELL, DOES ANYONE REMEMBER? I THINK THERE WAS NONE. OR DID WE FORGET? IN WHICH CASE, LET'S MAKE A MOTION AND A SECOND AND RE VOTE. YES. IT WAS CHAMBERS AND, AND, UM, THAT WAS FOR ITEM NUMBER THREE. OKAY. UM, IT WAS, UH, DIRECTOR CHAMBERS. DIRECTOR ESPARZA. THIS IS ITEM NUMBER FOUR. AND WE DID NOT CAPTURE, IT'LL JUST TAKE A QUICK SECOND. WE, SORRY. WE'LL JUST REDO IT. THANK QUESTION. THANK YOU. SECOND. AND WE DON'T HAVE TO GO THROUGH, WE CAN JUST SAY ALL IN FAVOR. ALL IN FAVOR SAY AYE. OPPOSED? ALRIGHT. THANKS FOR POINTING THAT OUT. THANK YOU. UH, THANK YOU. SO, NO, IT'S MY JOB. MOTION PASSES. YES. COMMENT. AT THIS TIME WE'LL TAKE NONE. AGENDA, PUBLIC COMMENT. ARE THERE ANY PUBLIC COMMENT ON I ON THE ITEMS? NOT ON THE AGENDA THAT ARE OF INTEREST AND WITHIN THE PURVIEW OF THE BOARD. OKAY. ARE THERE ANY ANNOUNCEMENTS, UH, FROM THE BOARD? NONE AT THIS TIME. OKAY. UH, IS, IF THERE'S NO OBJECTION, I DECLARE THIS MEETING ADJOURNED. NO, WE HAVE HONOR. OH, OKAY. FOUR ITEMS. CONFUS, THERE'S GONNA BE A STACK AT THIS POINT. UH, THE MEETING IS. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.