02-01-2005 - Country Club Center SiteCity of West Covina
Memorandum
AGEN,1DA
TO: Andrew G. Pasmant, City Manager ITEM NO. J-1
and City Council
DATE February 1, 2005
FROM: Christopher J. Chung, Redevelopment Director
SUBJECT: COUNTRY CLUB CENTER SITE
RECOMMENDATION:
It is recommended that the City Council receive & file this report.
DISCUSSION:
Councilmember Roger Hernandez requested an update on the Country Club Center.
The Community Development Commission (CDC) Board has agreed to cooperate' with
McIntyre-Reenders, LLC (Developer) by allowing them one (1) year to design a development
plan for the Country Club Center, with the caveat that every 120 days, the Developer is to
provide an update on his progress. The first 120-day benchmark is February 18, 2005. A letter
reminding the Developer of their progress report obligation was sent on October 26,I1i 2004
(Attachment No. 1).
On January 14, 2005, CDC staff received a letter dated January 13, 2005, from the Developer
(Attachment No. 2), five weeks prior to the first benchmark date. The purpose of the letter was
to provide the CDC Board with a status update of their progress towards the future submittal of a
development proposal. As indicated in the letter, the Developer has recently closed escrow for
the majority interest of the eastern portion of the Center and has been managing the pr'I perry
since the beginning of the year. The Developer has also been meeting with existing partners and
property owners to discuss refacing, landscaping, and resigning the Center, as well as adding new
space. In addition, the Developer has indicated that they have also been exploring costs and
various design alternatives.
Prepared by: y Semblantes
Senior Project Manager .
J. Chung
lent Director
44 ���
Reviewed by: Mike Lee
Redevelopment Manager
Approved via telephone
Reviewed/Approved by: Arnold M. Alvarez-Glasman
Agency General Counsel
Attachments: No. 1 Letter dated October 26, 2004 to McIntyre-Reenders, LLC
No. 2 Letter dated January 13, 2005 from McIntyre-Reenders, LLC
ccc024as
I
�ATTACHMENT
NO.1
COMMUNITY OEYELOP-MENT
COMMISSl01
October 26, 2004
Mr, Steve Reenders
The Reenders Company
128 Avenita Del Mar, Ste, 2C
San Clemente, CA 92672
Re: Country Club Shopping Center Site
Dear Mr. Reenders:
On behalf of the Community Development Commission Board of the City ofJWest
Covina, I wish to extend my thanks and appreciation for your presentation at their meeti11
ng of
October 19, 2004. After due consideration, the CDC Board has elected to defer the mailing of
Owner Participation letters at this time in order to provide an opportunity to fully explore your
development proposal as offered in your presentation at Tuesday night's meeting.
This direction is subject to the following guidelines and restrictions:
I
• Your continued cooperation to work with City and CDC Staff in identifying
complete terms of your development proposal;
• Your continued effort in working with the Country Club Center tenants and
property owners to acquire and/or control the essential land and structures to
accomplish your development proposal;
• Your continued effort for development must be predicated upon no 'CDC
assistance, and
• Status reports must be presented to the CDC Board every 120 days
The CDC Board will evaluate the status of your progress every 120 days to determine
whether or not they wish to defer invoking the Owner Participation process for an additional 120
days. By taking such action, the CDC Board reserves its right to commence the Owner
Participation process at any time. It is anticipated that significant progress will be reached at
each benchmark and that within the period of one year, substantial progress will be made in
achieving your development objectives.
Country Club Shopping Center Site
Page 2 of 2
Finally, it should be noted that the City and/or CDC is ' not indicating any binding
commitanent to any terms of your development proposal, but is extending your team the
opportunity to completely explore the opportunities for improving the Country Club Site.
The CDC looks forward to working with you toward the timely redevelopment of this
important commercial site within our City. If you have any questions concerning this
correspondence or the position of the CDC, please feel free to contact my office.
Very truly yo s,
Andrew Pasmant
Executive Director
=019as
ATTACHMENT NO.2
NTc1ntyre ReenderN, L.L.G.
January 13, 2005
Abby Sembiwites
City of west Covina CDC
1444 West Garvey Avo.
P.O. Box 1440
West Covina, C',A. 91793
Dear Abby:
nanit you for touching base on Country Club Center.
New managemotiL• for the Centet began on January 1, 2005, Mclntyre..R Benders LLC• i,9
now managing and is in the process of acquainting ourselves with the tcnantS and
assetisinb both long and shout term needs,
There has been and will continue to be a dramatic change in ownership. As you know,
Mr. Wilson passed away in 2004 and his heir,, the Reeds, have assumed his ownership
position. Tn addition, McIntyre-Reendcrs has closed escrow o» 52% of the east portion of
the Center.
Existiub partners and new owners have met and committed to explore dosign and costs
for the refacing, landscaping, resigning, and addition of new space. This procoss will
take many months.
Tt is clear to management at this point that existing leases at low rates with options may
in h.ibit the ceuter's ability to leverage in the short term.
Again, thank you for yottr continued interest_
Sincerely,
Sf.even N. R.eendcrs William McIntyre
370 E. Rowland Avenue, Covina, CA 91723
(626) 332-2978 Fax (626) 966-1274