Agenda packet — Bellflower City Council, April 25, 2024

Next CC Resolution No. 24-21 Next CC Agreement No. 1039 Next Ordinance No. 1430

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (562) 804-1424, extension 2220 or [email protected]. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Agenda Items are on file in the Office of the City Clerk and are available for public inspection during normal business hours. For your convenience, the Agenda is also posted on the City’s Website at www.bellflower.org with links to each Agenda Item (unless they are too lengthy or unavailable at the time of posting). Any supplemental material distributed to a majority of the members of the City Council after the posting of this Agenda will be made available for public inspection during normal business hours in the City Clerk’s Office at City Hall, 16600 Civic Center Drive, Bellflower. (Privileged documents and Closed Session documents are exempted.)

SPECIAL MEETING OF THE BELLFLOWER CITY COUNCIL
THURSDAY, APRIL 25, 2024

8:30 A.M. – CLOSED & OPEN SESSIONS

BELLFLOWER CITY HALL, COUNCIL CHAMBERS
16600 CIVIC CENTER DR., BELLFLOWER, CA 90706

11:00 A.M. – BRAVO AWARDS CEREMONY

THE MAYNE EVENTS CENTER
16400 BELLFLOWER BLVD., BELLFLOWER, CA 90706

1 CALL TO ORDER

2 ROLL CALL: Mayor Dan Koops
Mayor Pro Tem Ray Dunton
Council Member Wendi Morse
Council Member Victor A. Sanchez
Council Member Sonny R. Santa Ines

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AGENDA

T h e C i t y o f B e l l f l o w e r
Families. Businesses. Futures.
16600 Civic Center Drive, Bellflower, CA 90706
Tel 562.804.1424 Fax 562.925.8660 www.bellflower.org

Bellflower City Council Special Meeting Agenda
April 25, 2024

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8:30 A.M. – CLOSED SESSION & OPEN SESSION

3 PUBLIC COMMENTS

Pursuant to Government Code Section 54954.3(a), the public may address the City Council ONLY on matters listed on the Agenda. Those wishing to speak on a listed item should come to the podium , be recognized by the Mayor, and state your name for the record. Each speaker will be given three (3) minutes to address the City Council.

4 RECESS TO CLOSED SESSION

A CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): One Matter (not required by applicable law; voluntarily disclosed):

Los Angeles County Metropolitan Transportation Authority: Final Environmental Impact Statement/Environmental Impact Report for West Santa Ana Branch Transit Corridor Project (State Clearinghouse No. 2017061007)

5 RECONVENE FOR OPEN SESSION

6 PUBLIC HEARINGS

A Consideration and possible action to conduct a public hearing to consider ratifying Resolution No. 24-16 – A Resolution authorizing the City Manager to amend the FY 2023-24 Operating Budget and execute a Purchase and Sale Agreement, in a form approved by the City Attorney, with M Power Communication Corporation for the purchase of real property located at 16730 Bellflower Boulevard (APN 7109-013-800 and 801).

Recommendation to City Council: 1) Open the public hearing; take documentary and testimonial evidence; and after considering the evidence, ratify Resolution No. 24-16 amending the fiscal year 2023-24 Operating Budget to allocate funds for the property purchase and authorizing the City Manager to execute the Purchase and Sale Agreement, in a form approved by the City Attorney; or 2) Alternatively, discuss and take other action related to this item.

B Consideration and possible action to conduct a public hearing to consider adopting Resolution No. 24-20 – A Resolution authorizing the City Manager to amend the FY 2023-24 Operating Budget and execute a Purchase and Sale Agreement, in a form approved by the City Attorney, with Arioto Cali Properties Inc. for the purchase of real property located at 9835 Flower Street (APN 7109-013-036 and 037).

Recommendation to City Council: 1) Open the public hearing; take documentary and testimonial evidence including receiving and filing a report required by Government Code § 52201; and after considering the evidence, adopt Resolution No. 24-20 amending the fiscal year 2023-24 Operating Budget to allocate funds for the property purchase and authorizing the City Manager to execute the Purchase and Sale Agreement, in a form approved by the City Attorney; or 2) Alternatively, discuss and take other action related to this item.

Bellflower City Council Special Meeting Agenda
April 25, 2024

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11:00 A.M. – BRAVO AWARDS CEREMONY

7 RECONVENE

8 PRESENTATIONS TO BRAVO AWARD RECIPIENTS

Presentations to BRAVO (Bellflower Recognizes Acts of Valor & Outstanding Service) award recipients, including first responders, public safety personnel, and local citizens for extraordinary acts of heroism and outstanding service.

9 ADJOURNMENT

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES ) SS
CITY OF BELLFLOWER )
I, Jennifer Poole, Management Assistant, of the City of Bellflower, do hereby declare under penalty of perjury, that the Agenda for the Special Meeting of the Bellflower City Council to be held on Thursday, April 25, 2024, at 8:30 a.m., was posted Monday, April 22, 2024, at the following locations in the City of Bellflower:

City Hall Lobby and Doors, 16600 Civic Center Drive
City Website at www.bellflower.org
Los Angeles County Fire Museum — Conference Room, 16400 Bellflower Boulevard Please note that this agenda was not posted at the Clifton M. Brakensiek Library on Monday, April 22, 2024, due to the library being closed .The Agenda for the Special Meeting of the Bellflower City Council to be held on Thursday, April 25, 2024, at 8:30 a.m., was posted Tuesday, April 23, 2024, at the Clifton M. Brakensiek Library.

Executed this 23rd day of April 2024 at Bellflower, California. (1111
Jennif: f"oo •, Management Assistant

Special City Council Meeting
April 25, 2024

PLEASE PRINT LEGIBLY

NAME ORGANIZATION
(if applicable)

SPEAKER SIGN-IN SHEET

(Voluntary)

ITEM 6-B

SUPPLEMENTAL MATERIALS
APRIL 25, 2024, SPECIAL CITY COUNCIL MEETING

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6-B
TO: Honorable Mayor and Members of the City Council

ATTENTION: Ryan Smoot, City Manager

FROM: Jim DellaLonga, Director of Economic Development

SUBJECT: Consideration and possible action to conduct a public hearing to consider adopting Resolution No. 24-20 – A Resolution authorizing the City Manager to amend the FY 2023-24 Operating Budget and execute a Purchase and Sale Agreement, in a form approved by the City Attorney, with Arioto Cali Properties Inc. for the purchase of real property located at 9835 Flower Street (APN 7109-013-036 and 037).

DATE: April 25, 2024

EXECUTIVE SUMMARY

Executing a Purchase and Sale Agreement (PSA) with Arioto Cali Properties Inc. (“Arioto Cali”) would cause the City to purchase real property located at 9835 Flower Street for $5,100,000an amount agreed to by the parties. The asking price is $5.1M. The property includes the United States Post Office and associated parking spaces and is adjacent to a City owned public parking lot. Acquiring the property would give the City control over its future use in a manner that contributes to Downtown Bellflower’s economic growth and image. There is a pending escrow for this property, however, with the adoption of this resolution, the city is in position to acquire the property if the escrow falls through.

RECOMMENDATION TO CITY COUNCIL

1) Open the public hearing; take documentary and testimonial evidence including receiving and filing a report required by Government Code § 52201; and after considering the evidence, adopt Resolution No. 24-20 amending the fiscal year 2023-24 Operating Budget to allocate funds for the property purchase and authorizing the City Manager to execute the Purchase and Sale Agreement, in a form approved by the City Attorney; or

2) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT

The City would pay not more than the asking price $5,100,000 to Arioto Cali Properties to acquire the Property plus $10,000 to pay for estimated escrow fees and title insurance costs.

A budget amendment to the 2023-24 fiscal year operating budget is needed to allocate $5,110,000the purchase price for the Public Projects Fund Account No. 012-47212-9000 for the purchase of the Property. The following sources of funds are available: $1.8 million in cash reserve set-aside for property acquisition, $3.2 million from the sale and liquidation of the Municipal Water System, and $110,000 in unencumbered fund balance.

PUBLIC NOTICE

On April 12, 2024, a Public Hearing Notice was posted at City Hall, Brakensiek Library, Bellflower Substation, Thompson Park, and Simms Park; also, on April 12 and April 19, a Public Hearing Notice was published in the Los Cerritos Community News newspaper.

Staff Report – Purchase and Sale Agreement File No. 1039 with Arioto Cali Properties April 25, 2024

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DISCUSSION

In the spring of 2023, the property at 9835 Flower Street (the “Property”) was put on the market for sale for $8,000,000. In early 2024, Arioto Cali reduced the listing price to $5,100,000. The Property consists of two parcels containing the 18,924 square foot post office building on 60,891 square feet of land. The building is currently under lease to and occupied by the United States Postal Service (“Tenant”). The lease to the Tenant expires in May 2027 and there are no options to renew remaining on the lease. The tenant pays $251,163 in annual rent.

Staff believes the purchase of this property, with the right business or developer, represents an important asset and opportunity that will contribute to this area’s economic growth. As part of this process, the City reviewed recent comparable sales in Downtown Bellflower which support the negotiated purchase price of $5,100,000, agreed to by Arioto Calia price lower than the asking price. The purchase and sale agreement represents the terms and conditions of this pending acquisition. There is a pending escrow for this property, however, with the adoption of this resolution, the city is in position to acquire the property if the escrow falls through.

In the short-term, the City would continue to honor the lease with Tenant and begin discussions regarding the future of the site. In the long-term it is the City’s intent to lease or sell the property to a developer that will contribute to the economic development of the Downtown Bellflower area. Proceeds from the current and any future leases of the property will be returned to the City’s general fund.

Attached is a Summary Report required by Government Code § 52201 that describes the following:

a) the cost of the agreement to the City;

b) the estimated value of the interest to be conveyed or leased determined at the highest and best uses permitted under the general plan or zoning;

c) if applicable, the estimated value of the interest to be conveyed or leased determined at the use with the conditions, covenants, and development costs required by the sale or lease;

d) the purchase price or present value of the lease payments which the lessee will be required to make during the term of the lease;

e) if the sale price or total rental amount is less than the fair market value of the interest to be conveyed or leased, determined at the highest and best use, then the city shall provide, as part of the summary, an explanation of the reasons for the difference; and

f) an explanation of why the sale or lease of the property will assist in the creation of economic opportunity (as defined by Government Code § 52200.2), with reference to all supporting facts and material relied upon in making this decision.

ATTACHMENTS

Summary Report ........................................................................................................................... 3 Resolution No. 24-20 .................................................................................................................... 5

Summary Report Government Code Section 52200 – Purchase and Sale Agreement – 9835 Flower Street 1

SUMMARY REPORT PURSUANT TO
GOVERNMENT CODE § 52201

REGARDING A

PURCHASE AND SALE AGREEMENT

BY AND BETWEEN THE

CITY OF BELLFLOWER AND
ARIOTO-CALI PROPERTIES INC.

The following Summary Report was prepared pursuant to Government Code § 52201. This report sets forth certain details of the proposed Purchase and Sale Agreement (“Agreement”) between the City of Bellflower (“City”) and Arioto-Cali Properties Inc. (“Seller”).

Seller owns a total of 60,891 square feet (1.39 acres) of land located at 9835 Flower Street on two parcels (APNs 7109-013-036 and 7109-013-037) (“Property”). The Agreement requires Seller to sell the Property to the City.

The following Summary Report is based upon information required by the Government Code. It is organized into the following three sections:

I. Salient Points of the Agreement: This section summarizes the major responsibilities agreed to by Seller and the City by the Agreement.

II. Cost of the Agreement to the City: This section details the total cost to the City associated with implementing the Agreement.

III. Creation of Economic Opportunity: This section describes the existing condition of the subject property and explains how the Agreement will assist in the creation of economic opportunity.

This report and the Agreement are to be made available for public inspection prior to the approval of the Agreement and no later than the time of publication of the first required notice of the public hearing pursuant to Government Code § 52201.

I. SALIENT POINTS OF THE AGREEMENT

A. Project Description

The Project is the City’s purchase of all that certain real pro perty located at 9835 Flower Street, Bellflower, CA 90706 on APNs 7109-013-036 and 7109-013-037.

B. Seller Responsibilities Under the Agreement

The Agreement requires the Bank of the West to accept the following responsibilities:

1. Seller agrees to sell the Property, following the satisfactory inspection(s) of the Property by the City and approval of documents produced during a maximum 1015-day Due Diligence Period.

Summary Report Government Code Section 52200 – Purchase and Sale Agreement – 9835 Flower Street 2

2. Seller agrees to pay the costs associated with a CLTA Standard Coverage Police of Title Insurance showing title to the Property vested in Buyer.

C. City Responsibilities Under the Agreement

1. The City will purchase the Property for an amount not more than the asking price of Five Million One Hundred Thousand Dollars ($5,100,000) following satisfactory inspection(s) of the Property during escrow and the Due Diligence Period.

II. COST OF THE AGREEMENT TO THE CITY

The cost incurred by the City to implement the Agreement is not more than $5,100,000 for the purchase of the Property plus half of the typical escrow fees and de minimus costs for inspections and staff time to effectuate the acquisition.

III. ECONOMIC OPPORTUNITY

The Property, located on the major east/west arterial street in Downtown Bellflower, is currently occupied by an operating United States Post Office branch and owned by Seller. As a long-term ownership, legacy property, it is currently generating a minimum of state or local taxes. The City intends to market the Property to produce a private development project that will create economic opportunity, as defined by Government Code Section 52200.2, by increasing property tax revenues to all property tax collecting entities by at least 15% at full implementation of a project when compared to the year before the property being acquired by the City.

Significant new development is occurring within the vicinity of the Property. This includes Edgeway Downtown Bellflower, The Mayne Events Center and Los Angeles County Fire Museum, The Bellflower Regional Transit Center and Parking Structure, SteelCraft outdoor food hall, the Downtown Collection townhomes by City Ventures, The Nest Eatery, and The Stand Up Comedy Club. The Site, located in the heart of Downtown Bellflower just east of Bellflower Blvd., is adjacent to a City-owned public parking lot and is within walking distance from several other public parking lots. Additionally, a street improvement project has been awarded by the City to complete improvements on Bellflower Boulevard from Flower Street south to the 91 Freeway.

The Property is served by all major utilities and has only been vacant for approximately six months. A new sales tax generating use utilizing the square footage of the Property could generate between $3,000 and $100,000 in revenue to the City annually. Furthermore, as part of Downtown Bellflower, the property is included in the Downtown Bellflower Revitalization Vision Strategy, the Downtown Bellflower Strategic Development Plan, the Downtown Bellflower Transit Oriented Development Specific Plan Area, and would be eligible for the Bellflower Business Assistance Plan.

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CITY OF BELLFLOWER

RESOLUTION NO. 24-20

A RESOLUTION AUTHORIZING THE CITY MANAGER TO AMEND THE
FY 2023-24 OPERATING BUDGET AND EXECUTE A PURCHASE AND

SALE AGREEMENT BETWEEN THE CITY OF BELLFLOWER AND
ARIOTO CALI PROPERTIES INC. FOR THE PURCHASE OF REAL
PROPERTY LOCATED AT 9835 FLOWER STREET (APN 7109-013-036 AND 7109-013-037)

THE CITY COUNCIL DOES RESOLVE AS FOLLOWS:

SECTION 1. The City Council finds and declares as follows:

A. In March April 2024, in response to a reduction in sales price, the City of Bellflower made an offer to purchase the property located at 9835 Flower Street (APN 7109-013-036 and 7109-013-037) from Arioto Cali Properties Inc. for a purchase price of $5,100,000;

B. Based on a review of recent comparable sales in Downtown Bellflower in March 2024, the City verified the negotiated asking price for 9835 Flower Street (“Property”) as a fair market purchase price;

C. Arioto Cali Properties Inc. desires to convey the Property to the City of Bellflower for a purchase price of an amount agreed to by the parties not to exceed the asking price of $5,100,000, which represents a fair market value for the Property per the City’s review of recent comparable sales in Downtown Bellflower;

D. As set forth in the accompanying report (as required by Government Code § 52201) the City believes that the Property is an important asset that contributes to the economic activity in Downtown Bellflower. Accordingly, the City Council desires to purchase the Property; and

E. Toward that end, the City and Arioto Cali Properties Inc. desire to enter into a Purchase and Sale Agreement for the Real Property.

SECTION 2. Environmental Assessment. Adopting this Resolution is exempt from further environmental review pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the “CEQA Guidelines”).

Acquisition of the Property (by itself) does not have the potential to cause significant effects on the environment. Consequently, it is categorically exempt in accordance with CEQA Guidelines § 15061(b)(3) as CEQA only applies to projects that have the potential to cause a significant effect on the environment. Additionally, acquiring the property would result in minor (if any) alterations to existing facilities involving no significant expansion of the existing use. Acquiring the Property – by itself – would not have any significant impacts with regard to traffic, noise, air quality, or water quality. There are adequate utilities and public services to serve the Property. Any future redevelopment of the Property would require separate environmental review and either discretionary or

City of Bellflower
Resolution No. 24-20 – 9835 Flower Street Acquisition

Page 2 of 2 ends

ministerial approvals by the City. A simple conveyance of title does not necessitate preparation of an environmental document. The City Manager, or designee, is directed to file a Notice of Determination in accordance with Public Resources Code §§ 21152, 21167(f); CEQA Guidelines § 15075; and any other applicable law.

SECTION 3. Authorizations. The City Council authorizes the purchase of the Property from Arioto Cali Properties Inc. to the City upon payment of an amount agreed to by the parties of not more than the asking price of $5,100,000 by City. In order to effectuate that conveyance, the Mayor and City Manager are authorized to execute all documents, in a form approved by the City Attorney, needed to implement the conveyance of the Property as contemplated by this Resolution including, without limitation, escrow instructions, the grant deed, closing statement, and the certificate of acceptance. The City Manager is further authorized to accept the grant deed and cause them to be recorded in the Office of the County Recorder of the County of Los Angeles after they are executed by Arioto Cali Properties Inc.

SECTION 4. The City Manager, or designee, is directed to amend the FY 2023-2024 Operating Budget to allocate $5,110,000 in the General Fund Account No. 012-47212-9000 to account for the acquisition of property.

SECTION 5. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 6. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or her duly appointed deputy, is directed to attest thereto.

SECTION 7. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.

PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 25th DAY OF APRIL 2024.

________________________________
Dan Koops, Mayor
ATTEST:

________________________________
Mayra Ochiqui, City Clerk

APPROVED AS TO FORM:

________________________________
Karl H. Berger, City Attorney

6-A

TO: Honorable Mayor and Members of the City Council

ATTENTION: Ryan Smoot, City Manager

FROM: Jim DellaLonga, Director of Economic Development

SUBJECT: Consideration and possible action to conduct a public hearing to consider ratifying Resolution No. 24-16 – A Resolution authorizing the City Manager to amend the FY 2023-24 Operating Budget and execute a Purchase and Sale Agreement, in a form approved by the City Attorney, with M Power Communication Corporation for the purchase of real property located at 16730 Bellflower Boulevard (APN 7109-013-800 and 801).

DATE: April 25, 2024

EXECUTIVE SUMMARY

A public hearing was held on April 8, 2024 regarding this matter. Because of a technical error in the timing of the public hearing, and in an abundance of caution, the matter was re-noticed to ratify the action taken by the City Council on April 8, 2024.

RECOMMENDATION TO CITY COUNCIL

1) Open the public hearing; take documentary and testimonial evidence; and after considering the evidence, ratify Resolution No. 24-16 amending the fiscal year 2023-24 Operating Budget to allocate funds for the property purchase and authorizing the City Manager to execute the Purchase and Sale Agreement, in a form approved by the City Attorney;

2) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT

The City will pay $1,945,000 to M Power Communications Corp. to acquire the Property plus $10,000 to cover estimated escrow fees and title insurance costs.

PUBLIC NOTICE

On April 11, 2024, a Public Hearing Notice was posted at City Hall, Brakensiek Library, Bellflower Substation, Thompson Park, and Simms Park; also on April 12 and April 19, 2024, a Public Hearing Notice was published in the Los Cerritos Community News newspaper.

DISCUSSION

A public hearing was held on April 8, 2024 regarding this matter (see attached April 8, 2024 Staff Report). Because of a technical error in the timing of the public hearing, and in an abundance of caution, the matter was re-noticed to ratify the action taken by the City Council on April 8, 2024.

ATTACHMENT

April 8, 2024 Staff Report ...................................................................................................................... 2

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TO: Honorable Mayor and Members of the City Council

ATTENTION: Ryan Smoot, City Manager

FROM: Jim DellaLonga, Director of Economic Development

SUBJECT: Consideration and possible action to conduct a public hearing to consider adopting Resolution No. 24-16 – A Resolution authorizing the City Manager to amend the FY 2023-24 Operating Budget and execute a Purchase and Sale Agreement File No. 422.1 between the City of Bellflower and M Power Communications Corporation for the purchase of real property located at 16730 Bellflower Boulevard (APN 7109-013-800 and 801).

DATE: April 8, 2024

EXECUTIVE SUMMARY

Executing the Purchase and Sale Agreement File No. 422.1 (PSA) with M Power Communications Corporation (the “M Power”) would cause the City to purchase real property located at 16730 Bellflower Boulevard for $1,945,000. The property includes the former M Power building that contains the Chamber of Commerce office, a parking lot containing 29 spaces, and is adjacent to a City-owned public parking lot. Acquiring the property would give the City control over its future use in a manner that contributes to Downtown Bellflower’s economic growth and image.

RECOMMENDATION TO CITY COUNCIL

1) Open the public hearing; take documentary and testimonial evidence including receiving and filing a report required by Government Code § 52201; and after considering the evidence, adopt Resolution No. 24-16 amending the fiscal year 2023-24 Operating Budget to allocate funds for the property purchase and authorizing the City Manager to execute Purchase and Sale Agreement File No. 422.1, in a form approved by the City Attorney; and

2) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT

The City would pay $1,945,000 to M Power Communications Corp. to acquire the Property plus $10,000 to pay for estimated escrow fees and title insurance costs.

A budget amendment to the 2023-24 fiscal year operating budget is needed to allocate $1,955,000 in the General Fund (Cash Reserve for Property Acquisitions) – Account No. 010-47212-9000 for the purchase of the Property.

PUBLIC NOTICE

On March 22, 2024, a Public Hearing Notice was posted at City Hall, Brakensiek Library, Bellflower Substation, Thompson Park, and Simms Park; also on March 22, 2024, a Public Hearing Notice was published in the Los Cerritos Community News newspaper.

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Staff Report – Purchase and Sale Agreement File No. 422.1 with M Power April 8, 2024

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DISCUSSION

In early March 2024, the property at 16730 Bellflower Boulevard (the “Property”) was put on the market for sale. The Property consists of two parcels containing a 6,198 square foot building (APN 7109-013-800) on a 6,559 square foot parcel, and a parking lot (APN 7109-013-801) on a 17,243 square foot parcel. The building is currently occupied by the Bellflower Chamber of Commerce, which is utilizing 1,500 square feet. The remaining 4,698 square feet is vacant.

It is the City’s intent to lease or sell the property to a business or developer that will contribute to the economic development of the Downtown Bellflower area. Proceeds from any future leases of the property will be returned to the City’s general fund.

Attached is a Summary Report required by Government Code § 52201 that describes the following:

a) the cost of the agreement to the City;

b) the estimated value of the interest to be conveyed or leased determined at the highest and best uses permitted under the general plan or zoning;

c) if applicable, the estimated value of the interest to be conveyed or leased determined at the use with the conditions, covenants, and development costs required by the sale or lease;

d) the purchase price or present value of the lease payments which the lessee will be required to make during the term of the lease;

ATTACHMENTS

Summary Report ......................................................................................................................... 3 Resolution No. 24-16 .................................................................................................................. 5

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Summary Report Government Code Section 52200 – Purchase and Sale Agreement – 16730 Bellflower Bl. 1

SUMMARY REPORT PURSUANT TO
GOVERNMENT CODE § 52201

REGARDING A

PURCHASE AND SALE AGREEMENT

BY AND BETWEEN THE

CITY OF BELLFLOWER AND
M POWER COMMUNICATIONS CORP.

Seller owns approximately 23,802 square feet of land located at 16730 Bellflower Boulevard on two non- contiguous parcels (APNs 7109-013-800 and 7109-013-801) (“Property”) with a 6,198 square foot building on one of the parcels. The Agreement requires Seller to sell the Property to the City.

The following Summary Report is based upon information required by the Government Code. It is organized into the following three sections:

I. Salient Points of the Agreement: This section summarizes the major responsibilities agreed to by Seller and the City by the Agreement.

II. Cost of the Agreement to the City: This section details the total cost to the City associated with implementing the Agreement.

III. Creation of Economic Opportunity: This section describes the existing condition of the subject property and explains how the Agreement will assist in the creation of economic opportunity.

I. SALIENT POINTS OF THE AGREEMENT

A. Project Description

The Project is the City’s purchase of all that certain real property located at 16730 Bellflower Boulevard, Bellflower, CA 90706 on APNs 7109-013-800 and 7109-013-801.

B. Seller Responsibilities Under the Agreement

The Agreement requires the Seller to accept the following responsibilities:

1. Seller agrees to sell the Property, following the satisfactory inspection(s) of the Property by the City and approval of documents produced during the escrow Period.

2. Seller agrees to pay the costs associated with a CLTA Standard Coverage Police of Title Insurance showing title to the Property vested in Buyer and half of the escrow fees.

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Summary Report Government Code Section 52200 – Purchase and Sale Agreement – 16730 Bellflower Bl. 2

C. City Responsibilities Under the Agreement

1. The City will purchase the Property for One Million Nine Hundred Forty-Five Thousand Dollars ($1,945,000) following satisfactory inspection(s) of the Property during escrow and the Due Diligence Period.

II. COST OF THE AGREEMENT TO THE CITY

The cost incurred by the City to implement the Agreement is $1,945,000 for the purchase of the Property plus half of the typical escrow fees and de minimum costs for staff time to effectuate the acquisition.

III. ECONOMIC OPPORTUNITY

The Property, located at a signalized intersection at the northeast corner of Bellflower Boulevard and Flower Street, is currently partially vacant and owned by Seller and is not currently generating any state or local taxes, as these are non-taxable parcels (public utility). The City intends to market the Property to produce a private development project that will create economic opportunity, as defined by Government Code Section 52200.2, by increasing property tax revenues to all property tax collecting entities by at least 15% at full implementation of a project when compared to the year before the property being acquired by the City.

Significant new development is occurring within the vicinity of the Property. This includes Edgeway Downtown Bellflower, The Mayne Events Center and Los Angeles County Fire Museum, The Bellflower Regional Transit Center and Parking Structure, SteelCraft outdoor food hall, the Downtown Collection townhomes by City Ventures, The Nest Eatery, and The Stand Up Comedy Club. The Site, located in the heart of Downtown Bellflower, is adjacent to a City-owned public parking lot and is within walking distance from several other public parking lots. Additionally, a street improvement project has been awarded by the City to complete improvements on Bellflower Boulevard from Flower Street south to the 91 Freeway.

The Property is served by all major utilities and has only been vacant for approximately six months. A new sales tax generating use utilizing the square footage of the Property could generate between $3,000 and $25,000 in revenue to the City annually. Furthermore, as part of Downtown Bellflower, the property is part of the Downtown Bellflower Revitalization Vision Strategy, the Downtown Bellflower Strategic Development Plan, the Downtown Bellflower Transit Oriented Development Specific Plan Area, and would be eligible for the Bellflower Business Assistance Plan.

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CITY OF BELLFLOWER
RESOLUTION NO. 24-16

A RESOLUTION AUTHORIZING THE CITY MANAGER TO AMEND THE
FY 2023-24 OPERATING BUDGET AND EXECUTE A PURCHASE AND
SALE AGREEMENT FILE NO. 422.1 BETWEEN THE CITY OF

BELLFLOWER AND M POWER COMMUNICATIONS CORPORATION
FOR THE PURCHASE OF REAL PROPERTY LOCATED AT 16730
BELLFLOWER BOULEVARD (APN 7109-013- 800 AND 7109-013-801)

THE CITY COUNCIL OF THE CITY OF BELLFLOWER DOES RESOLVE AS FOLLOWS:

SECTION 1. The City Council finds and declares as follows:

A. In March 2024, in response to a sales listing, the City of Bellflower made an offer to purchase the property located at 16730 Bellflower Boulevard APN 7109-013- 800 and 7109-013-801) from M Power Communications Corporation for a purchase price of $1,945,000;
B. Based on a review of recent comparable sales in Downtown Bellflower in March 2024, the City verified the negotiated price for the 16730 Bellflower Boulevard ("Property") as a fair market purchase price; C. M Power Communications Corporation desires to convey the Property to the City of Bellflower for a purchase price of $1 ,945,000, which represents a fair market value for the Property per the City's review of recent comparable sales in Downtown Bellflower;
D. As set forth in the accompanying report (as required by Government Code 52201) the City believes that the Property is an important asset that contributes to the economic activity in Downtown Bellflower. Accordingly, the City Council desires to purchase the Property; and
E. Toward that end, the City and M Power Communications Corporation desire to enter into a Purchase and Sale Agreement for the Property.

SECTION 2. Environmental Assessment. Adopting this Resolution is exempt from further environmental review pursuant to the California Environmental Quality Act Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the "CEQA Guidelines").

Acquisition of the Property (by itself) does not have the potential to cause significant effects on the environment. Consequently, it is categorically exempt in accordance with CEQA Guidelines § 15061(b)(3) as CEQA only applies to projects that have the potential to cause a significant effect on the environment. Additionally, acquiring the property would result in minor (if any) alterations to existing facilities involving no significant expansion of the existing use. Acquiring the Property — by itself — would not have any significant impacts with regard to traffic, noise, air quality, or water quality. There are adequate utilities and public services to serve the Property. Any future redevelopment of the Property would require separate environmental review and either discretionary or

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City of Bellflower
Resolution No. 24-16

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SECTION 3. Authorizations. The City Council authorizes the purchase of the Property from M Power Communications Corporation to the City upon payment of 1,945,000 by City. In order to effectuate that conveyance, the Mayor and City Manager are authorized to execute all documents, in a form approved by the City Attorney, needed to implement the conveyance of the Property as contemplated by this Resolution including, without limitation, escrow instructions, the grant deed, closing statement, and the certificate of acceptance. The City Manager is further authorized to accept the grant deed and cause them to be recorded in the Office of the County Recorder of the County of Los Angeles after they are executed by M Power Communications Corporation.

SECTION 4. The City Manager, or designee, is directed to amend the FY 2023-2024 Operating Budget to allocate $1,955, 000 in the General Fund Account No. 010-47212-9000 to account for the acquisition of property.

SECTION 7. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.

PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 8h DAY OF APRIL 2024.
jck 74----tr-ehDanKoops, Mayor
ATTEST:
i
May a Ocjfr s' ?k
APPR j RM:
t
L
f• rl H. Berger ty Attorney

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STATE OF CALIFORNIA

COUNTY OF LOS ANGELES )SS

CITY OF BELLFLOWER
I, Mayra Ochiqui, City Clerk of the City of Bellflower, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 24-16 was duly passed, approved, and adopted by the City Council of the City of Bellflower at its Regular Meeting of the City Council on April 8, 2024, by the following vote to wit:

AYES: Council Members — Sanchez, Santa Ines, Dunton, Morse, and Mayor Koops
Dated: April 9, 2024
May c qui, City erk
Ci of B Ilflower, Califor 'a
SEAL)

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Page 1 of 2 ends

6-B
TO: Honorable Mayor and Members of the City Council

ATTENTION: Ryan Smoot, City Manager

FROM: Jim DellaLonga, Director of Economic Development

DATE: April 25, 2024

EXECUTIVE SUMMARY

Executing a Purchase and Sale Agreement (PSA) with Arioto Cali Properties Inc. (“Arioto Cali”) would cause the City to purchase real property located at 9835 Flower Street for $5,100,000.

The property includes the United States Post Office and associated parking spaces and is adjacent to a City owned public parking lot. Acquiring the property would give the City control over its future use in a manner that contributes to Downtown Bellflower’s economic growth and image. There is a pending escrow for this property, however, with the adoption of this resolution, the city is in position to acquire the property if the escrow falls through.

RECOMMENDATION TO CITY COUNCIL

2) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT

The City would pay $5,100,000 to Arioto Cali Properties to acquire the Property plus $10,000 to pay for estimated escrow fees and title insurance costs.

A budget amendment to the 2023-24 fiscal year operating budget is needed to allocate $5,110,000 for the Public Projects Fund Account No. 012-47212-9000 for the purchase of the Property. The following sources of funds are available: $1.8 million in cash reserve set-aside for property acquisition, $3.2 million from the sale and liquidation of the Municipal Water System, and $110,000 in unencumbered fund balance.

PUBLIC NOTICE

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Staff Report – Purchase and Sale Agreement File No. 1039 with Arioto Cali Properties April 25, 2024

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DISCUSSION

Staff believes the purchase of this property, with the right business or developer, represents an important asset and opportunity that will contribute to this area’s economic growth. As part of this process, the City reviewed recent comparable sales in Downtown Bellflower which support the negotiated purchase price of $5,100,000, agreed to by Arioto Cali. The purchase and sale agreement represents the terms and conditions of this pending acquisition. There is a pending escrow for this property, however, with the adoption of this resolution, the city is in position to acquire the property if the escrow falls through.

Attached is a Summary Report required by Government Code § 52201 that describes the following:

a) the cost of the agreement to the City;

b) the estimated value of the interest to be conveyed or leased determined at the highest and best uses permitted under the general plan or zoning;

c) if applicable, the estimated value of the interest to be conveyed or leased determined at the use with the conditions, covenants, and development costs required by the sale or lease;

d) the purchase price or present value of the lease payments which the lessee will be required to make during the term of the lease;

ATTACHMENTS

Summary Report ......................................................................................................................... 3 Resolution No. 24-20 .................................................................................................................. 5

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Summary Report Government Code Section 52200 – Purchase and Sale Agreement – 9835 Flower Street 1

SUMMARY REPORT PURSUANT TO
GOVERNMENT CODE § 52201

REGARDING A

PURCHASE AND SALE AGREEMENT

BY AND BETWEEN THE

CITY OF BELLFLOWER AND
ARIOTO-CALI PROPERTIES INC.

The following Summary Report is based upon information required by the Government Code. It is organized into the following three sections:

I. Salient Points of the Agreement: This section summarizes the major responsibilities agreed to by Seller and the City by the Agreement.

II. Cost of the Agreement to the City: This section details the total cost to the City associated with implementing the Agreement.

III. Creation of Economic Opportunity: This section describes the existing condition of the subject property and explains how the Agreement will assist in the creation of economic opportunity.

I. SALIENT POINTS OF THE AGREEMENT

A. Project Description

The Project is the City’s purchase of all that certain real property located at 9835 Flower Street, Bellflower, CA 90706 on APNs 7109-013-036 and 7109-013-037.

B. Seller Responsibilities Under the Agreement

The Agreement requires Seller to accept the following responsibilities:

1. Seller agrees to sell the Property, following the satisfactory inspection(s) of the Property by the City and approval of documents produced during a maximum 10-day Due Diligence Period.

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Summary Report Government Code Section 52200 – Purchase and Sale Agreement – 9835 Flower Street 2

2. Seller agrees to pay the costs associated with a CLTA Standard Coverage Police of Title Insurance showing title to the Property vested in Buyer.

C. City Responsibilities Under the Agreement

1. The City will purchase the Property for Five Million One Hundred Thousand Dollars ($5,100,000) following satisfactory inspection(s) of the Property during escrow and the Due Diligence Period.

II. COST OF THE AGREEMENT TO THE CITY

The cost incurred by the City to implement the Agreement is $5,100,000 for the purchase of the Property plus half of the typical escrow fees and de minimus costs for inspections and staff time to effectuate the acquisition.

III. ECONOMIC OPPORTUNITY

The Property is served by all major utilities and is currently occupied by the United States Post Office with 3 years remaining on its lease. A new sales tax generating use utilizing the square footage of the Property could generate between $3,000 and $100,000 in revenue to the City annually. Furthermore, as part of Downtown Bellflower, the property is included in the Downtown Bellflower Revitalization Vision Strategy, the Downtown Bellflower Strategic Development Plan, the Downtown Bellflower Transit Oriented Development Specific Plan Area, and would be eligible for the Bellflower Business Assistance Plan.

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CITY OF BELLFLOWER

RESOLUTION NO. 24-20

A RESOLUTION AUTHORIZING THE CITY MANAGER TO AMEND THE
FY 2023-24 OPERATING BUDGET AND EXECUTE A PURCHASE AND

SALE AGREEMENT BETWEEN THE CITY OF BELLFLOWER AND
ARIOTO CALI PROPERTIES INC. FOR THE PURCHASE OF REAL
PROPERTY LOCATED AT 9835 FLOWER STREET (APN 7109-013-036 AND 7109-013-037)

THE CITY COUNCIL DOES RESOLVE AS FOLLOWS:

SECTION 1. The City Council finds and declares as follows:

A. In March 2024, in response to a reduction in sales price, the City of Bellflower made an offer to purchase the property located at 9835 Flower Street (APN 7109-013-036 and 7109-013-037) from Arioto Cali Properties Inc. for a purchase price of $5,100,000;

B. Based on a review of recent comparable sales in Downtown Bellflower in March 2024, the City verified the negotiated price for 9835 Flower Street (“Property”) as a fair market purchase price;

C. Arioto Cali Properties Inc. desires to convey the Property to the City of Bellflower for a purchase price of $5,100,000, which represents a fair market value for the Property per the City’s review of recent comparable sales in Downtown Bellflower;

E. Toward that end, the City and Arioto Cali Properties Inc. desire to enter into a Purchase and Sale Agreement for the Real Property.

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City of Bellflower
Resolution No. 24-20 – 9835 Flower Street Acquisition

Page 2 of 2 ends

preparation of an environmental document. The City Manager, or designee, is directed to file a Notice of Determination in accordance with Public Resources Code §§ 21152, 21167(f); CEQA Guidelines § 15075; and any other applicable law.

SECTION 3. Authorizations. The City Council authorizes the purchase of the Property from Arioto Cali Properties Inc. to the City upon payment of $5,100,000 by City.

In order to effectuate that conveyance, the Mayor and City Manager are authorized to execute all documents, in a form approved by the City Attorney, needed to implement the conveyance of the Property as contemplated by this Resolution including, without limitation, escrow instructions, the grant deed, closing statement, and the certificate of acceptance. The City Manager is further authorized to accept the grant deed and cause them to be recorded in the Office of the County Recorder of the County of Los Angeles after they are executed by Arioto Cali Properties Inc.

SECTION 7. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.

PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 25th DAY OF APRIL 2024.

________________________________
Dan Koops, Mayor
ATTEST:

________________________________
Mayra Ochiqui, City Clerk

APPROVED AS TO FORM:

________________________________
Karl H. Berger, City Attorney

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. When Gary isn't on stage performing,he is more than likely working as an animal advocate. He works tirelessly, saving and transporting dogs from the shelter to .....' vets and forever homes. During the pandemic, Gary housed over twelve dogs until they were safely placed with new owners.To learn more about Gary Cannon, rfi visit www.garycannon.com . .'
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Deputy Detective
Los Angeles County Sheriff's Department Los Angeles County Sheriff's Department Austin Weisenburger OUTSTANDING SERVICE
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In the world of professional sports,Dave Winfield
GEoRGE cHEviiviii-
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ever. He made history as the only athlete ever
SINCE 1 9 6 1 to be drafted in three professional sports: A iii '
' basketball (Atlanta Hawks and Utah Stars),
PROUD SPONSOR OF football (Minnesota Vikings) and baseball (San ti40 CITY OF BELLFLOWER Diego Padres).

Dave's professional sports career began in 1973
BRAVO AWARDS 2024 when he directly jumped to the San Diego 1 - Padres from college — never spending a day
in the minor leagues. His next stop: 8 All-Star
.. i4ril seasons with the New York Yankees. In 1990, he joined the California Angels for two seasons,followed by a magical year with the :°. -1- or)
__ o Toronto Blue Jays, in which he drove in the winning run of the 1992 World Series. �� ' ' Dave then returned to his native Minnesota and reached the 3,000th hit milestone with the Twins.He retired after the 1995 season with the American League champion ��'�� cHEify Cleveland Indians.Dave currently serves as a special advisor to the Executive Director of the Major League Baseball Players Association.

DEALEROF THE MIR In over two decades of high-powered success on the baseball diamond, Dave was considered a complete baseball player. One of only 5 players ever to collect over 3,000 DEAL DEAL DEAL DEAL 1EAL: EAL,. hits and slam more than 450 home runs,the 12-time All-Star and winner of 7 Gold • ,,tvr•. Mn+Y E ./th,YE mA YE a'Of, .1,F.

Glove and 6 Silver Slugger Awards,was a first ballot inductee to the National Baseball . •
Hall of Fame in Cooperstown in 2001.

Dave was one of the first athletes ever to create a charitable Foundation. For over - 20 years, the Winfield Foundation provided healthcare services and nutritional 1

GEORGECHEVROLET GEORGECHEVROLET
counseling to youth, scholarships, and computer literacy programs to deserving 2018-2019-2020-2021-2022-2023 high school students; holiday dinners to families in need;and community outreach programs for children—in and beyond the 6 major league cities in which he played. __: ► Together
Dave's charitable work has earned him numerous honors, including Major League GEORGECHEVY.COM CHEVROLET letsdrrve Baseball's Roberto Clemente Award, presented to the player who best exemplifies 17000 LAKEWOOD BLVD BELLFLOWER,CA 90706 SALES:(562)925-2500 I SERVICE(562)239-4106 ` baseball on and off the field.
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Bellflower City CouncilApril 25, 2024

Bellflower City Council
April 25, 2024