Special City Council Mtg. Meeting — August 12, 2024

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Well, welcome to our special meeting on Monday, August 12th.

We'll start with the land acknowledgement.

We'd like to acknowledge that the land we inhabit today was once known as the Tovangaar,

home of the Gavirino Tonga people.

We show respect to the Gavirino Tonga people, as well as all indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gavirino Tonga people, invite you to acknowledge the history, and join us in caring for this land.

That's it. If I can ask everyone to join me in the flag salute.

Right hand over your heart. Ready to begin. I pledge allegiance to the flag of the United States of America

and to the republic of world's hands, a nation, under God, indivisible, in liberty and justice and strong.

All right, thank you. So we'll call the meeting in order.

Clerk can do the roll call please. Council member Sanchez. Present. Council member Lo. Present. Council member Yu. Here. Mayor Pro Tem Ngo. Present. Mayor Wong. Present. Thank you. Any agenda additions, solutions, changes, adoptions? No changes. Hearing none. We'll move on to public communication if there is any. No. All right.

We'll move to item 1A, one-year time extension for tentative map number 73741, South Chandler Avenue as identified by... We'll move on to the item. Is there a staff report?

Good afternoon, Mayor, members of the City Council. This is Beth Chow, planning manager, making this report. The item before you is a second request for a one-year extension for a tentative map. Next, please.

originally back in 2020 city council approved a development for a 40 unit senior housing complex

that included the approval of a tentative map as well as a conditional use permit both the tentative map and conditional use permit had expirations through april 1st of 2023

and at that point in time council again are granted an extension for a period of one year The extension came to a close on April 1st of this year.

However, the applicant filed an application to extend both the conditional use permit as well as the tentative map. Next, please. This evening's item is only in relation to the tentative map because of government code restrictions that tentative map expires today.

unless the city council decides to extend this entitlement. So at this time, the project is in building plan check and applicants finalizing the design of the parking to meet development standards within our code. Applicant has also submitted for demolition of the remaining buildings on the site.

But the applicant has requested additional time for completion of his project, citing COVID delays, loan financing issues, and increased construction costs.

However, he has at this time been able to secure a construction loan and is eager to move forward with the project but needs some additional time.

Since this project counts towards the city's RENA allocation and the city is interested in seeing a project like this come to fruition, the item is being brought to the council for review.

Consideration of the extension for the CUP will happen under a separate public hearing.

So at this time, city staff recommends that the council consider adopting a resolution approving a time extension for tentative map number 73741-TM1801

and taking additional related action that may be desirable.

Both staff and the applicant are here for any questions.

Thank you, Beth. Any questions from Council?

Yes, Mr. Mayor. Thank you for that presentation. May I ask, they've asked for extensions before, right?

There was one previous request.

And when was that?

That was last year in 2023. Council approved that in May.

And do you foresee any issues? They're asking for another extension.

So do we foresee any possible issues with the second extension request?

So the applicant has made some progress since last year.

However, he has not been able to finalize that map or secure building permits, and the additional year will help him do that.

Okay. Well, hopefully this will be the final trial.

And we do have the applicant available if you want to ask

or if they want to respond to that directly, if you want.

No, that's okay.

All right.

Any other questions?

Do we have a development agreement for this project?

There was no development agreement requirement at the time of approval.

All right.

But going forward, projects over 10 units wouldn't require a development agreement, right? Correct.

For this, so it sounded like you said they're submitting for demolition permits

for the existing structures on the property?

Are there current residents in the properties,

or are all the tenants already out of those apartments?

Good evening, everyone.

Steve Scandera here, attorney for the applicant. To answer your question, first of all, thank you all for considering this. I know it's a second extension. I appreciate the effort in doing that.

there is one person in the property

in all of their I think there were eight units there's one person in there hasn't paid rent in a long time

in the process of negotiating relocation

did any of the

previous tenants I guess or even this tenant sounds like maybe are receiving relocation assistance or

I think

how many four

only one

Only one is requested. Everyone else moved out on agreements.

I believe that money was paid to some. Others just left.

So I believe that there was a problem that there were people who were roommates was the issue. Okay.

Well, I hope that gets resolved quickly. I'm amenable to the MAP extension. I know we're going to have to take this up for CEP as well in the coming weeks or months. but I think I would echo what Councilmember Lo was mentioning in terms of my concerns as well as just making sure that this project is actually going to move forward otherwise I would have a hard time voting to extend this another year so I hope that everything sounds like it's being lined up hopefully things are out of control but hopefully no issues with the economy and financing and all that but would love to see this project I remember this project a year ago coming in for this extension and asking about us reiterating the need as was mentioned the staff report for affordable housing and for senior affordable housing so appreciate that it sounds like from what I remember this is not actually going to require any financial assistance from government in terms of tax credits or anything like that so great to us would love to support this project and see it come to fruition and it looks like there's gonna be minimal displacement issues for existing residents so appreciate that but really want to see this project through and and break ground and get constructed and get some folks in there that really are in need of this senior affordable housing as soon as possible yes thank

you it's an important need anything else any other I actually have a question what's the total project

costs before the inflation stuff when you originally had this you're testing

by memory

project costs including completion

eight and a half million and now it's up to what

No, no, that's not the right total cost.

No, I know, I know, and I just, I knew this stuff three years ago when I was here for the first time. I'm trying to remember back.

The total cost of construction.

That's hard cost. Okay.

And then how much is the soft cost?

Right now, I think the consulting cost, I think we spend like half a million over.

We have a lot of finance costs.

It's going to be four million.

Hard cost is eight and a half million before, but what is hard cost if you build it today?

How much has it gone up because of inflation?

Is that the question? Yes. Four million.

No, no, no.

How much has it gone up because of inflation? Because the price of labor?

Yesterday, it cost you $8.5 million. Next year, it's going to cost you how much?

I see this year.

Next year, even starting 2024, I think a little bit of rest. But before, a lot of rest. Two, three years, Lor, and then rest. But before, I see it's meeting, seven meeting. I see the maximum.

I mean the issue is not so much inflation, it's the interest rates are the real problem with a project like this. Going up from what we were looking at this before they were in the range of, you know, for his heart, his loan costs were in the range of 5-6 percent and he's probably gone up 3 percent in that range. So that's the big driver of cost.

That's why I said...

I've been asking this question about how much has labor been going up for a year and a half now and I don't really get the sense that it's gone up beyond just what the minimum wage is. So you figure it you know the laborers before was 20 to 25 dollars an hour for the for the low range now you're looking 20 to $25 an hour for the for the low range now you're looking at 30 35 ! So you're looking at maybe a 30% increase in just that one cost item but other ! costs have come down some of the materials costs have come down there's less ! construction going on now so there's less demand for a lot of building materials ! So it I wouldn't say it balances it's going to be more expensive but I ! keep pounding that in and it's going to be more expensive but they've got it budgeted out and planned but they've got it budgeted out and planned.

Okay.

Good question, though. I wish we had the answers exactly. No, I mean from the economic point of view.

I would recommend you get those numbers because you've got a year to get that done.

Well, the financing was obtained, or new financing was obtained three months ago, and it was based on current projections and current.

So you do have a term sheet in place?

You have a term sheet in place, right? Yes.

Yes. Okay.

At least two or three.

Two or three, okay.

The financing, no problem. Okay.

Well, let's get it done.

Yeah. Okay.

Is there a motion or a question?

Maybe just one, yeah, a simple question. How long ago did you own the land? How long ago did you buy it?

I purchased the land in 2014, end of the year.

2014?

Yes. And then we are from other consultant, the guy got entitled, say, different five years. We got it, waiting, waiting, waiting.

So 10 years you haven't start building anything?

We are got it entitled after repurchase the ISI agreement with the consultant, five years. Waiting, waiting. Oh, wow. After COVID, almost then, we got COVID. I didn't see it on other 18 months or almost two years. Wow. Those interest costs. Oh, my goodness. Right now, my after purchase of land, the stock cost, including consulting and the finance cost, 3.5 million.

3.5? Wow. Okay. I mean, even though you bought the land from your cash, but it's still opportunity cost and everything adds up. Yeah, right? So, okay. Wow. Good luck. Thank you.

All right. Is there a motion? Move. Is there a second? Second. All right. Move and second. Any further discussion? Hearing none. Please vote. Call for the vote. Approved unanimously.

All right.

We'll move on to item 1B, resolution for the City Council of Monterey Park, clearing and recognizing the month of August 2024 as National Back to School Month. I don't know if Council Member Sanchez has any thoughts he wants to share on this one.

Yes, so I recommend that we bring this, and it just so happened we have a council meeting today. Right when two of our school districts in our city started school today, LAUSD and Montebello Unified started school today. And I know that we have one LAUSD school in my district at Robert Hill Lane on the southern part of Monterey Park, and then also we have two Montebello schools in our district as well.

I mean, sorry, in our city.

And then tomorrow we have Alhambra Unified, that's starting school, with 23,000. So yes, I go back to work tomorrow and see my students. So what better way to start the school year and send a message to the community about the importance of school and helping students start, and hopefully they start on a good and positive note. I know we had a little quake earlier today. It was actually the first time as a teacher that I've had to yell at my students to duck and cover. So it speaks to the importance of earthquake education as well, right, and being prepared in case of a possible quake. So if it's okay with the council, I would like to move for us to recognize August as a national back-to-school month here in the city of Monterey Park.

Thank you, Council Member. Is there a second? Second.

Alright, so by Council Member U. I will just say I don't know if we're already planning this with back to school tomorrow and this week I don't know if we're gonna we can step up some PD

Engagement around the school sites

Educational more than ticketing, but maybe it's it's something people will have to be reminded after the summer With that there's a motion a second if there's no further discussion. We'll call for the vote

Approved unanimously

All right, that's all our items.

I believe Council Member Sanchez has an announcement for adjournment.

Thank you, Mayor.

I'd like to adjourn tonight's meeting on behalf of a resident of Monterey Park in my district, who you might remember last year we recognized him for his 95th birthday, but also for his service to our country. Mr. Seferino Rodriguez, who was a veteran of the Korean War, was captured and was missing in action on February 21, 1953 at the age of 24. Was one of the first prisoners that was actually released as part of the prisoner exchange program between the United States and Korea in 1953 at the age of 25 and was returned back as a POW veteran. Passed away this past Saturday, this weekend. So I'd like to recognize his... He's been a longtime resident of Monterey Park. in fact his entire life and so not his entire life, sorry since 1963, sorry

I wanted to correct that

and I also wanted to say

that he served in the

U.S. Army Airborne Division so I promised

his family a close to nice meeting

in his honor and thank you

for his service

If no objection adjourn in his memory

I think I believe that's it unless anyone else has anything else. Thank you. That's it. We're returned. Thank you.

Thank you.

Okay. We're going to go home now.

Everyone's of course welcome to our

Thank you. I'll see you in the next video. Thank you. Thank you. 中文字幕志愿者 李宗盛 李宗盛 Thank you.

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