TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary to submit a grant application to the U.S. Economic Development Administration, Public Works and Economic Adjustment Assistance Program, for improvements to City-owned property at 1850-1862 Atlantic Avenue, and accept said grant, if awarded, in an amount up to $3 million, for creation of the Centro C.H.A. Workforce Development Center; and
Authorize City Manager, or designee, to execute a Memorandum of Understanding with Centro C.H.A., Inc., in connection with the grant and the administration thereof. (District 6)
DISCUSSION
On June 18, 2019, the City Council authorized the execution of a Letter of Intent (LOI) with Centro C.H.A., Inc. (Centro C.H.A.), in connection with the tenancy and potential option to purchase City-owned property at 1850-1862 Atlantic Avenue (Subject Property). Shortly thereafter, the City and Centro C.H.A. began the process of space planning for the Subject Property, at the completion of which, it was determined that approximately $3.6 million would be needed to develop the Subject Property to enable Centro C.H.A. to continue its provision of initiatives and programs consistent with its mission, while expanding upon its workforce development efforts.
On January 21, 2020, the City Council authorized Lease and Option to Purchase No. 35521 (Lease), for the tenancy of the Subject Property for a period of ten years and an option to purchase. Subsequent to executing the Lease, Centro C.H.A. was approved for a loan (Loan) from the Los Angeles County Development Authority (LACDA) for approximately $1.1 million, which will allow for the purchase of the Subject Property and provide for an initial capital outlay to improve the Subject Property. Thus, On April 8, 2020, Centro C.H.A. notified the City of its intent to exercise the purchase option in the Lease.
While the purchase of the Subject Property is ongoing, Centro C.H.A. has expressed in...
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