COMMUNITY DEVELOPMENT COMMISSION
MISSION STATEMENT: To enhance the economic base of the City through the elimination of blight, the revitalization of existing properties, and the attraction of new businesses.
The Community Development Commission (CDC) was established by the City of West Covina to eliminate blight, develop affordable housing, and vitalize the economic environment of the City. The City Council serves as the CDC Commission, with the Mayor as the Chairman and the Mayor Pro Tem as the Vice Chairman of the Commission.
Pursuant to California Redevelopment Law, the CDC establishes project areas with the adoption of redevelopment plans. The CDC works with developers, property owners, and businesses to develop new projects and rehabilitate and/or expand existing developments. This public/private joint venture may involve the construction of new infrastructure and/or the assemblage of land or alternatives for project financing.
The fiscal year 2005-2006 budget for the West Covina CDC is, among other things, a reflection of implementing the Five-Year Housing and Redevelopment Implementation Plan adopted in December 2004. The budget also allows for the continuation of the CDC's efforts to pursue housing projects and programs, and develop alternatives for several key sites within the city. Once "redeveloped," these projects will improve the City's economic base while concurrently meeting the CDC's mission to remove blight.
COMMUNITY DEVELOPMENT COMMISSION
DEPARTMENT ORGANIZATIONAL CHART
FY 2004-2005 ACCOMPLISHMENTS
Throughout the course of 2004-2005, the CDC continued to process projects either initiated or conceived in prior fiscal years and began new projects where the opportunities arose. The goal of the CDC was to carry out its mission by implementing the objectives identified in the 2004-2005 budget. As a result, the CDC's major project initiatives and accomplishments for 2004-2005 include the following:
- Negotiated a Disposition and Development Agreement (DDA) with West Covina Heights LLC (Eclipse Development) for the development of a first-class commercial center at the southern portion of the West Covina Sportsplex site (commercial site).
- Negotiated a DDA with McIntyre Companies for the development of a Nissan Dealership and commercial center at the corner of Citrus and Workman.
- Completed the sale of the Wescove Theatre property to West Covina Medical Group in order to accommodate their relocation and retention in the City of West Covina.
- Completed the sale and development of an 85-unit affordable senior housing apartment complex with West Covina Senior Villas LLC at the Azusa/Workman site. The site is fully leased.
- Administered the construction and development of four restaurants (Johnny Carino's, Islands, Chipotle, Pick-Up-Stix) on the Development Opportunity Parcel by the Eastland Shopping Center (The Curve Project).
- Entered into an Exclusive Negotiations Agreement with Charles Company for a commercial development on the K-Mart/Credit Union site.
- Entered into an Exclusive Negotiations Agreement with Super Lincoln Mercury for the expansion of the West Covina Lincoln Mercury Mazda dealership.
- Entered into an Exclusive Negotiation Agreement with Dynamic Investment for the development of a mixed-use office development at the Civic Center site.
- Entered into an Exclusive Negotiation Agreement with the Charles Company for the development of an office building at the 700 pad located at the West Covina Sportsplex site.
- Monitored the Planning, Design and Construction Consulting Services Agreement, Maintenance and Operations Agreement, and License Agreement with Big League Dreams (BLD), for the West Covina Sportsplex project.
- Monitored the Design Services Agreement and Construction Managing Services Agreement with Rosetti Architects and Heinbuch Golf Construction, for the West Covina Sportsplex project.
- Administered the construction and development of six new restaurants (Macaroni Grill, Red Brick Pizza, Ohana's Hawaiian Grill, Vieta Coffee, Juice It Up, and Dono Sushi) at the Edward's Entertainment Center (Hillcrest Development Project).
- Executed several Lease Agreements with various tenants for occupation of several Community Development Commission owned properties.
- Monitored the ongoing construction of the Clippinger Chevrolet Dealership permanent facility at the Auto Plaza.
- Entered into a Funding Contract Agreement with the Chamber of Commerce at 811 So. Sunset Avenue.
- Maintained active database of available industrial, commercial, and vacant properties in the city.
- Completed 47 Home Improvement Loans under the CDBG Home Improvement Loan Program. A total of 2,402 CDBG Home Improvement Loans have been issued since program inception in 1970.
- Processed nine loans under the Housing Preservation Program during fiscal year 2004-2005. A total of 813 Housing Preservation Loans have been issued since program inception in 2000.
- Facilitated ground breaking and grand opening ceremonies throughout the city to celebrate its continued development.
- Hosted the Business Recognition Dinner to recognize the top businesses in West Covina.
- Worked in collaboration with the Chamber of Commerce in promoting West Covina's "business friendly" environment to retain and attract businesses through a co-sponsorship of events including the Business Recognition Dinner, ground breaking ceremonies, ribbon-cutting ceremonies, and marketing business opportunities throughout West Covina.
FY 2005-2006 GOALS AND OBJECTIVES
To prioritize department activities in accordance with City Council goals to (1) help bridge the City's budget deficit and (2) pursue economic development activities that generates substantial sales tax revenues to the City.
REDEVELOPMENT
Downtown Revitalization Project
- Attend Stakeholder Meetings
- Attend Community Meetings
- Assist in the approval process of the Master Plan Amendment
- Initiate the RFP process to solicit developer interest for a mixed-use development
Redevelopment of K-Mart/Credit Union Site
- Negotiate and enter into an Exclusive Negotiation Agreement with a qualified developer
- Obtain appraisals and cost estimates
- Analyze project feasibility
- Negotiate a development agreement with a qualified developer
- Commence acquisition of the site
Citrus/Workman Site
- Satisfy conditions precedent to escrow
- Close escrow
- Assist and facilitate the building entitlement process for Phase 1
- Assist and facilitate the developer in securing building permits to commence Phase 1 construction
- Facilitate a groundbreaking ceremony
- Commencement of Phase 1 construction
Azusa/Workman Site
- Enter into an ENA with a qualified developer (auto dealer)
- Obtain appraisals and cost estimates
- Analyze project feasibility
- Negotiate a development agreement with a qualified developer (auto dealer)
Sportsplex Project - Commercial Site
- Resolve soil sample issue and testing required and obtain EPA and DTSC approvals
- Resolve soil removal issue with BKK and/or CIWMB, if necessary
- Complete design of the site (infrastructure and grading)
- Remobilize to complete grading activity for the commercial development
- Satisfy conditions precedent to the close of escrow with Eclipse
- Close escrow and obtain land sale proceeds from Eclipse
- Assist and facilitate the developer in the building entitlement process
ECONOMIC DEVELOPMENT
Business Assistance, Attraction, and Retention
- Manage the Auto Plaza Business Improvement District
- Attend ICSC Palm Springs in October 2005
- Attend ICSC Las Vegas in May 2006
- Coordinate and host the annual Business Recognition Dinner
- Conduct various fund raising events
HOUSING
Home Improvement Program
- Approve applicants and provide funding for qualified home owners
- Continue marketing the program to maximize its utilization
Housing Preservation Program
- Approve applicants and provide funding for qualified home owners
- Continue marketing the program to maximize its utilization
PERFORMANCE MEASURES
BUDGET COMMENTS
The CDC budget is comprised of several different funds. The operating budget is comprised of programmatic related funds, which are primarily accounted for under Funds 862, 876, and 877. In essence, Fund 862 is for housing-related programs and projects, Fund 876 is for programs and projects within the West Covina Project Area (Merged), and Fund 877 is for programs and projects within the Citywide Project Area. All charge backs reflect prior year actual amounts. Charge backs include all cost related to vehicles, telephones, pagers, reprographics, administration and overhead.
Overall, the fiscal year 2005-2006 budget is approximately $20,695,017. That reflects a 14.74% increase from fiscal year 2004-2005 budget amount of $18,036,805. The net budget increase is a result of the following factors:
- An increase in the cost of Debt Service payments
- An increase in the cost of Personnel Services
- An increase in the cost of Materials and Services
- An increase in the cost of Legal, Consultant, and Other Contractual Services
The City of West Covina has one of the most aggressive redevelopment agencies in Southern California with such projects as the BKK/West Covina Sportsplex Project, Citrus/Workman Site Project, Civic Center Project, Downtown Revitalization Project, and various auto dealership projects throughout the city. Upon evaluating the department's current staffing levels, the department is of the opinion that there is a need to bring in senior-level redevelopment and economic development experienced personnel, while still retaining current staff. A proposed staffing reorganization was presented to the Council during preliminary budget review and will be submitted to the Human Resources Commission. If approved, this will require a $108,000 increase to CDC's budget.
PERSONNEL:
Under the current CDC organizational structure, the personnel budget will increase from $1,527,746 in fiscal year 2004-2005 to $1,785,943 in fiscal year 2005-2006 (approximately 16.9%, or $258,194). The increase is partially a result of anticipated salary increases and MOU adjustments that include 2% and 3% salary increases, depending on job classifications.
The CDC is also responsible for carrying a percentage of the cost of various indirect personnel. The CDC carries 100% of the cost of five (5) Elective/Appointive positions. The stipend cost of Elective/Appointive positions increased from $7,200 in fiscal year 2004-005 to $72,020 in fiscal year 2005-2006 (a 900.28% increase). The CDC also carries 50% of the cost of the City Manager, finance director, and finance account clerk, 35% of the cost of the finance accounting manager, and 25% of the cost of the Assistant City Manager. The Assistant City Clerk, controller, and accountant positions have been previously carried at 5%, 20%, and 15%, respectively. For fiscal year 2005-2006, all three positions will be carried at 25%. In addition, the CDC will be responsible for carrying 25% of the cost of four positions not previously covered in past fiscal year budgets. The positions include the secretary to the City Manager, City Manager's Office secretary I, Deputy City Clerk, and the finance administrative analyst.
FUND 131: HOUSING AND COMMUNITY DEVELOPMENT
Fund 131, 2242 - CDBG Home Improvement Loan Program: The program's budget is to remain constant as set in fiscal year 2004-2005.
FUND 190: BUSINESS IMPROVEMENT DISTRICT
Fund 190 - Business Improvement District (BID): This budget is funded entirely by the membership of the BID. The membership consists of all auto dealerships located in the West Covina Auto Plaza. The BID's budget will be increased from $85,803 in fiscal year 2004-2005 to $90,749 in fiscal year 2005-2006. The 5.76% increase is mainly a result of an increase in landscaping maintenance costs.
FUND 862: REDEVELOPMENT HOUSING SET-ASIDE
The Housing Set-Aside Fund reflects approximately an increase from $2,957,906 to $3,073,065 (1.38%, or $115,158 increase) from fiscal year 2004-2005 is mainly composed of an increase in personnel, materials and services costs.
Fund 862, 2220 - Redevelopment Project Development: The Consulting, Project Improvements, and Other Contractual Services section of the fund will be decreased from $235,413 to $233,000, a 1% decrease.
Fund 862, 2240 - Housing Preservation Program: The program's budget is to remain constant as set in fiscal year 2004-2005 at $100,000.
Fund 862, 2241 - First Time Homebuyer Program: The program will not carry a budget in 2005-2006 due to the program's termination. Staff will continue to manage any outstanding loans.
FUND 876: MERGED PROJECT AREA
The Merged Project Area reflects approximately an increase from $1,915,122 to $2,566,584 (53.44%, or $1,022,462 increase) from fiscal year 2004-2005 in large part to an increase in personnel, materials and services costs, legal services, and appraisal costs.
FUND 877: CITY-WIDE REDEVELOPMENT PROJECT AREA
The City-wide Redevelopment Project Areas will experience a 24.5% increase from $183,905 in fiscal year 2004-2005 to $228,939 in 2005-2006, a $45,032 difference. Personnel, Materials and Services and costs for Other Departmental Supplies for economic development programs contributed to the increase.
DEBT SERVICE:
Fund 853, CFD Debt Service - CFD Debt Service payments will increase from $4,196,300 in 2004-2005 to $4,350,950 in 2005-2006, a net increase of 3.69% or $154,650.
Fund 882, Merged Project Area Debt Service - Debt Service payments in the Merged Project Area will increase 20%, or $1,622,550, from $7,979,800 in fiscal year 2004-2005 to $9,602,350 in 2005-2006.
Fund 883, Citywide Project Area Debt Service - Debt Service payments in the Citywide Project Area will increase 29.55%, or $64,412, from $217,968 in fiscal year 2004-2005 to $282,380 in 2005-2006.
AUTHORIZED POSITIONS
ACTIVITY TREE
BUDGET SUMMARY
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