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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. 24-52 – A Resolution authorizing the City Manager to execute Agreement File No. 1057, in a form approved by the City Attorney, with Silvestre Madrigal Jr. for building façade improvements at 10003 Alondra Boulevard, pursuant to the Bellflower Economic Development Business Assistance Plan Chapter 3.1.
DATE: August 26, 2024
EXECUTIVE SUMMARY
Adoption of Resolution No. 24-52 would authorize the City Manager to execute Agreement File No. 1057 with Silvestre Madrigal Jr., owner of Richie’s Hot Chicken (Applicant). If approved, the Applicant will use the financing for façade improvements to an existing building. Chapter 3.1 is a city-wide matching loan provided through the City’s Economic Development Business Assistance Plan (the Plan), which requires a matching contribution from the business owner and adherence to Plan guidelines.
RECOMMENDATION TO CITY COUNCIL
1) Open the public hearing; take documentary and testimonial evidence; and after considering the evidence, consider adopting Resolution No. 24-52; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The total loan amount payable under Agreement File No. 1057 for building façade improvements is $25,000. Funds for the Plan are available and have been budgeted in Account No. 510-44410-4002.
DISCUSSION
On April 8, 2024, the City Council adopted Resolution No. 24-19 which set forth policies and procedures for distributing economic development funds to business and/or property owners participating in the Plan. This resolution introduced Chapter 3.1, City-wide Matching Loan, to Chapter 3 Commercial Facade Improvements.
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Staff Report – Resolution No. 24-52 – Ch. 3.1 City-Wide Façade Improvement Loan– Silvestre Madrigal Jr. (Richie’s Hot Chicken)
August 26, 2024
DISCUSSION
This Program includes commercial properties throughout the City and helps with façade improvements and exterior building upgrades that are visible from the street.
Chapter 3.1 of the Plan provides a 66% matching loan for building façade upgrades, up to a maximum loan amount of $25,000. The loan is disbursed on a cost reimbursement basis, requiring the Applicant to match the remaining costs. Chapter 3.1 loans are amortized over five years and are 100% forgivable at the end of the term, provided the business is still operational or has not been sold. If the Applicant defaults or sells the business, he must immediately repay the outstanding balance of the loan.
Silvestre Madrigal Jr., owner of Richie’s Hot Chicken, submitted his completed application for Chapter 3.1 of the Plan to enhance the façade of his restaurant at 10003 Alondra Boulevard, specifically, building signage and the branded drive-through directional signage (see attached Exhibit “A”). This is the site of a former Kentucky Fried Chicken drive-through restaurant, which has been vacant for over 10 years. The Economic Development Department staff reviewed the application and confirmed that all Program requirements are met. He has requested a $25,000 loan for these improvements, all of which are eligible under the Plan's guidelines. The improvements are anticipated to be completed before the end of the year.
ATTACHMENTS
Exhibit A – Proposed Signage ......................................................................................... 3 Resolution No. 24-52 ....................................................................................................... 4 -2-
EXHIBIT A
Eucalyptus Ave. Frontage
Alondra Blvd. Frontage and Parking Lot/West Bound Traffic Signage -3-
CITY OF BELLFLOWER
RESOLUTION NO. 24-52
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AGREEMENT FILE NO. 1057, IN A FORM APPROVED BY THE CITY ATTORNEY, WITH SYLVESTRE MADRIGAL JR. FOR BUILDING FAÇADE IMPROVEMENTS AT 10003 ALONDRA BOULEVARD PURSUANT TO THE
BELLFLOWER ECONOMIC DEVELOPMENT BUSINESS ASSISTANCE PLAN CHAPTER 3.1
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. On October 8, 2013, the Governor signed Senate Bill No. 470 Community development: economic opportunity, in an effort to promote economic development on a local level so that communities can enact local strategies to increase jobs, create economic opportunity, and generate tax revenue for all levels of government;
B. On June 28, 2023, City Council approved the City’s Operating Budget for Fiscal Years 2023-24 and 2024-25, in which $330,000 was approved in fiscal year 2024-2025 for special economic development programs related to marketing, business retention, tenant improvements, web/social media business support, façade/sign improvements, restaurant attraction, and other financial assistance to business operators and developers;
C. On April 8, 2024, the City Council adopted Resolution No. 24-19 to approve policies and procedures for distributing Economic Development funds to attract or retain customers to business and/or property owners participating in the Economic Development Business Assistance Plan (the “Plan”).
D. In June 2024, Silvestre Madrigal Jr. (the “Applicant”) submitted a completed application for Chapter 3.1 of the Plan for building façade improvements at Richie’s Hot Chicken located at 10003 Alondra Boulevard, which provides qualified business owners with a total loan amount of $25,000, per the Plan policies and procedures;
E. Economic Development staff carefully reviewed the Application and determined that the Applicant qualifies for a $25,000 (Twenty-Five Thousand Dollar) forgivable, matching loan with a 0% interest rate amortized over five years based on the policies and procedures of Chapter 3.1 of the Plan;
F. On August 26, 2024, the City Council heard public testimony and considered evidence in a public hearing held and noticed in accordance with Government Code § 6066; and
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City of Bellflower
Resolution No. 24-52
After careful consideration, including a review of the documentary and testimonial evidence submitted during the public hearing, including, without limitation, the staff report submitted by the Director of Economic Development (“Director”), the City Council finds it is in the public interest to adopt this Resolution.
SECTION 2. Loan Findings. Pursuant the Plan, the City Council finds that the Applicant:
A. Is a new business seeking to locate and aesthetically improve the structure at 10003 Alondra Boulevard, located within the Project Area;
B. Will obtain a valid business license before the City issues a final certificate of occupancy for the project;
C. Provided receipts and paid invoices as part of his application for assistance, showing the amount of private investment within the business;
D. As a new business with limited start-up capital, has demonstrated good cause for public assistance under the Plan;
E. Provided to the Director that 15 people will be employed by the Business; and
F. Provided, as part of his application for assistance, a signed partnership agreement with Richie’s Hot Chicken, an executed lease for the property, and the Property Owner’s signature on the application for assistance authorizing Applicant’s application submittal.
SECTION 3. Action. The City Council:
A. Declares Silvestre Madrigal Jr.’s Loan Application for facade improvements at 10003 Alondra Boulevard qualifies for funding pursuant to the Plan;
B. Authorizes the City Manager, or designee, to enter into a Loan Agreement (the “Agreement”), in a form approved by the City Attorney, and to administer the Agreement and Plan, including monitoring and enforcing all terms and conditions.
SECTION 4. Construction. This Resolution must be broadly construed in order to achieve the purposes stated in this Resolution. It is the City Council’s intent that the provisions of this Resolution be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Resolution.
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City of Bellflower
Resolution No. 24-52
SECTION 5. Reliance On Record. Each and every one of the findings and determinations in this Resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the Project. The findings and determinations constitute the independent findings and determinations of the City Council in all respects and are fully and completely supported by substantial evidence in the record as a whole.
SECTION 6. Limitations. The City Council’s analysis and evaluation of the project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis of the project is the City Council’s lack of knowledge of future events. In all instances, best efforts have been made to form accurate assumptions. Somewhat related to this are the limitations on the City’s ability to solve what are in effect regional, state, and national problems and issues. The City must work within the political framework within which it exists and with the limitations inherent in that framework.
SECTION 7. Preservation. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.
SECTION 8. Severability. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.
SECTION 9. The City Manager will establish policies and procedures as necessary to carry out this policy.
SECTION 10. Summaries of Information. All summaries of information in the findings, which precede this section, are based on the substantial evidence in the record.
The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact.
SECTION 11. 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 12. 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 13. Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.
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City of Bellflower
Resolution No. 24-52
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 26TH DAY OF AUGUST 2024.
________________________________
Dan Koops, Mayor
ATTEST:
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Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
Karl H. Berger, City Attorney
______________________________________
By: Justin A. Tamayo, Deputy City Attorney
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