TITLE
Recommendation to authorize City Manager, or designee, to execute the First Amendment to Joint Application and Indemnification Agreement No. 35623 with Centro C.H.A., Inc.; and
Increase appropriations in the General Fund Group in the Economic Development Department by $292,450, offset by funds available, to facilitate the transfer of ownership of 1850-1862 Atlantic Avenue (Subject Property) from the Refuse and Recycling Fund Group in the Public Works Department to the General Fund Group in the Economic Development Department. (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 CHA), 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 CHA began the process of space planning for the Subject Property, at the completion of which, it was determined that approximately $3.8 million would be needed to develop the Subject Property to enable Centro CHA 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 CHA 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 at a purchase price of $800,000, with the remaining $300,000 to be used for initial tenant improvements. On April 8, 2020, Centro CHA notified the City of its intent to exercise the Lease purchase option, which is in process. The City anticipates closing escrow with Centro CHA on the Subject Property in the second quarter of the calendar year 2021.
The Sub...
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