Cudahy City Council
August 1, 2023

AGENDA

A REGULAR MEETING

OF THE CUDAHY CITY COUNCIL
and JOINT MEETING of the
CITY OF CUDAHY AS SUCCESSOR AGENCY and HOUSING SUCCESSOR AGENCY

TO THE CUDAHY DEVELOPMENT COMMISSION
Tuesday, August 1, 2023 – 6:30 P.M.

Written materials distributed to the City Council within 72 hours of the City Council meeting shall be available for public inspection at www.cityofcudahy.com In compliance with the Americans with Disabilities Act (ADA) if you need special assistance to participate in this meeting, you should contact the City Clerk’s Office at (323) 773-5143 at least 72 hours in advance of the meeting.

Rules of Decorum
Under the Government Code, the City Council may regulate disruptive behavior that impedes the City Council Meeting.

Disruptive conduct may include, but is not limited to:
• Screaming or yelling during another audience member’s public comments period; • Profane language directed at individuals in the meeting room; • Throwing objects at other individuals in the meeting room; • Verbal altercations with other individuals in the meeting room; and • Going beyond the allotted three-minute public comment period granted.

When a person’s or group’s conduct disrupts the meeting, the Mayor or presiding officer will request that the person or group stop the disruptive behavior and WARN the person or group that they will be asked to leave the meeting room if the behavior continues.

If the person or group refuses to stop the disruptive behavior, the Mayor or presiding officer may order the person or group to leave the meeting room and may request that those persons be escorted from the meeting room. Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403.)
Daisy Lomelí, Mayor
Jose R. Gonzalez, Vice Mayor
Elizabeth Alcantar, Council Member
Martin U. Fuentes, Council Member
Cynthia Gonzalez, Council Member
This meeting will be conducted in
person, telephonically, and
electronically.

Council Chambers/Bedwell Hall
5240 Santa Ana Street
Cudahy, CA 90201
Teleconference Phone Number:
1 (669) 900-6833
Meeting ID: 895 7642 2150
https://us06web.zoom.us/j/89576422150

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
August 1, 2023, at 6:30 P.M.

1. CALL TO ORDER

2. ROLL CALL
Council / Agency Member Gonzalez
Council / Agency Member Fuentes
Council / Agency Member Alcantar
Vice Mayor / Vice Chair Gonzalez
Mayor / Chair Lomelí

3. APPROVAL OF AGENDA

4. PLEDGE OF ALLEGIANCE

5. LAND ACKNOWLEDGMENT
We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respects to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.

6. PRESENTATIONS
A. Presentation by Cudahy’s Visionary Youth Leaders
B. Certificate of Recognition to Rent Control Ad Hoc Committee Members

7. PUBLIC COMMENTS
(Each member of the public may provide a public comment in person, telephonically or electronically.

In person participants must submit one comment card if they wish to address the City Council. Only speakers that submit a comment card within the first 20 minutes of the meeting will be permitted to speak. Remote participants may provide public comment by clicking the hand icon on Zoom or pressing star (*) nine (9) on the telephone, if they wish to address the City Council. Members of the public are permitted to speak for three (3) minutes concerning items under the City Council’s jurisdiction, including items on the council agenda.)
(Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403).)

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS (Each Council Member is limited to three minutes.)
(This is the time for the City Council / Agency to comment on any topics related to “City Business,” including announcements, reflections on city / regional events, response to public comments,

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
August 1, 2023, at 6:30 P.M.

suggested discussion topics for future council meetings, general concerns about particular city matters, questions to the staff, and directives to the staff (subject to approval / consent of the City Council majority members present, regarding staff directives). Each Council / Agency Member will be allowed to speak for a period not to exceed three (3) minutes. Notwithstanding the foregoing, the City Council Members shall not use this comment period for serial discussions or debate between members on City business matters not properly agendized. The City Attorney shall be responsible for regulating this aspect of the proceeding.)

9. CITY MANAGER REPORT (information only)

10. REPORTS REGARDING AD HOC, ADVISORY, STANDING, OR OTHER COMMITTEE

MEETINGS

11. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES (Consideration to waive full text reading of all Resolutions and Ordinances by single motion made at the start of each meeting, subject to the ability of the City Council / Agency to read the full text of selected resolutions and ordinances when the item is addressed by subsequent motion.) (COUNCIL / AGENCY)
Recommendation: Approve the Waiver of Full Reading of Resolutions and Ordinances.

12. CONSENT CALENDAR
(Items under the Consent Calendar are considered routine and will be enacted by one motion, prior to the vote to approve the Consent Calendar, each Council Member shall have a maximum of three (3) minutes to comment on the Consent Calendar as a whole. There will be no separate discussion of these items unless a Council / Agency Member so requests specific item(s) be removed from the Consent Calendar for separate action. Items may only be considered as a separate action if either (1) a Council Member must recuse themselves due to a conflict of interest or (2) a Council Member has specific questions for City Staff. Items called for separate discussion will be heard as the next order of business.) A. Consideration to Review and Approve the Draft Minutes of July 18, 2023, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission (page 7) Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for July 18, 2023.

13. PUBLIC HEARING - NONE

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
August 1, 2023, at 6:30 P.M.

14. BUSINESS SESSION
A. Cudahy LA River Area Improvement Project Presentation Presented by the Public Works Director/SWA Group Consultant Recommendation: The City Council is requested to receive and file.

B. Review of Draft Economic Development Strategic Plan (page 21) Presented by the Community Development Director/Willdan Consultant Recommendation: The City Council is requested to take the following action(s):

1. Review, discuss, and provide feedback on the draft Economic Development Strategic Plan (“EDSP”).

2. Direct staff to bring back the EDSP, with feedback received, for City Council adoption at a future City Council regular meeting.

C. Declaration of surplus property pursuant to Government Code Section 54220 et. seq. located at 8100 – 8110 Atlantic Avenue and 4720 – 4734 Santa Ana Street, in the City of Cudahy, California, County of Los Angeles (APNs: 6224-018-911, 6224-018-912, 6224-018-913, 6224-018-914, and 6224- 018-915) (page 115)
Presented by the Community Development Director
Recommendation: Staff recommends that the City Council of the City of Cudahy (the “City”):

1. Find that the declaration of surplus property is exempt from environmental review pursuant to the California Environmental Quality Act (“CEQA”); and

2. Adopt Resolution No. 23-37 declaring that the properties located at 8100 – 8110 Atlantic Avenue and 4720 – 4734 Santa Ana Street (APNs: 6224-018-911, 6224-018-912, 6224-018-913, 6224-018-914, and 6224-018-915) are surplus land and are no longer necessary for the City’s use; and

3. Direct the City Manager to follow the procedures set forth in the Surplus Lands Act (“SLA”), (Gov. Code § 54220, et seq.), for the sale of surplus land.

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
August 1, 2023, at 6:30 P.M.

D. Consideration of a Resolution No. 23-38 Authorizing the City Manager Approve a Lease Proposal for Temporary Offices at City Hall Pursuant to Section 3.16.140 of the Cudahy Municipal Code (Alternate Procurement Procedure) (page 125)
Presented by the City Attorney
Recommendation: It is recommended that the City Council adopt Resolution No. 23-38 authorizing the City Manager approve a lease proposal for temporary offices at City Hall in accordance with Section 3.16.140 of the Cudahy Municipal Code.

E. Consideration to Approve Lease Agreement with CSLM Construction, Inc., for Temporary Offices at City Hall (page 131)
Presented by the Public Works Director
Recommendation: It is recommended that the City Council:

1. Approve a lease agreement with CSLM Construction, Inc. in the amount of $39,580 to install temporary offices at City Hall for new Staff who will be hired by the city within the calendar year.

2. Approve funding in the amount of $39,580 from SIEMENS Project Contingency Fund to cover this expense.

F. Consideration to Adopt Resolution No. 23-39, Establishing a Sister City Relationship with San Miguel el Alto Jalisco, Mexico (page 139)
Presented by the City Clerk
Recommendation: The City Council is requested to Adopt Resolution No. 23-39, Establishing a Sister City relationship with San Miguel el Alto Jalisco, Mexico through the Sister Cities Program.

15. COUNCIL DISCUSSION - NONE

16. CLOSED SESSION
A. Closed Session Pursuant to Government Code Section 54957 – Routine Public Employee Performance Evaluation
Title of Employee: City Attorney

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
August 1, 2023, at 6:30 P.M.

B. Closed Session Pursuant to Government Code Section 54956.9(e)(1) – Conference with Legal Counsel to Discuss Matter Involving Potential Litigation – One Matter

17. CLOSED SESSION ANNOUNCEMENT

18. ADJOURNMENT
I, Richard Iglesias, hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City’s Website, City Hall, Clara Park, and Lugo Park not less than 72 hours prior to the meeting. A copy of said Agenda is on file in the City Clerk’sOffice.

Dated this 27th day of July 2023
Richard Iglesias
City Clerk

“Serving the People” "Sirviendo A La Comunidad"
Staff Report
08/01/2023 Page 1 of 2

STAFF REPORT
Date: August 1, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Richard Iglesias, City Clerk
Subject: Consideration to Review and Approve the Draft Minutes of July 18, 2023, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission

RECOMMENDATION
The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for July 18, 2023.

BACKGROUND / ANALYSIS
On December 12, 2016, the City Council of the City of Cudahy adopted Resolution No. 16-38, approving the use of summary action minutes, meant to allow the City Clerk's Office to write the minutes in brief, assuring a record of Council's actions, due to having a recording of the full Council Meeting on the City’s website.

Historically
The Municipal Clerk is one of the oldest professions in government, dating back to 1272 A.D., originating in England. The record keeper then was called Remembrancer, an English official whose job was to remind the Lord Treasurer and Barons of Court, of business pending.

Years later, in the 1600s, when early colonists came to America, the office of the Clerk was one of the first offices to be established. Over the years, the City Clerk’s office has become the core for local government, and the liaison to the residents of the Community. The Municipal Clerk (City Clerk) is the record keeper of a City’s recorded history.

Item Number
12A

“Serving the People” "Sirviendo A La Comunidad"
Staff Report
08/01/2023 Page 2 of 2
William Bennett Munro, a Canadian historian, and political scientist, who taught at Harvard University and the California Institute of Technology, stated in one of his first textbooks written: “No other office in municipal service has so many contacts. It serves the Mayor, the City Council, the City Manager (when there is one), and all administrative departments, without exception. All of them call upon it, almost daily, for some service or information. Its work is not spectacular, but it demands versatility, alertness, accuracy, and no end of patience.

The public does not realize how many loose ends of city administration this office pulls together.”
Moving forward to the present time, the City Clerk’s office today is generally responsible for keeping a record of City Council meetings; agreements; recordings of official documents; legal advertisements; municipal elections; commissions and committees current files; claims against the city; and other legal or official documents.

City Clerks are required to keep record of the proceedings (minutes) of Council meetings (Government Code Sections 36814 and 40801). Minutes are the official record of a meeting which provides a history of the Council’s decisions and actions.

CONCLUSION
The City Council is requested to approve the attached City Council / Agency Draft Minutes of the proceedings of July 18, 2023.

FINANCIAL IMPACT
No Financial Impact.

ATTACHMENT
A. July 18, 2023, Minutes
B. Resolution No. 16-38, approving the City Clerk’s use of Summary Action Minutes as the Official Record of the City Council proceedings.

City Council/Successor Agency Minutes of 7/18/2023

MINUTES
CUDAHY CITY COUNCIL REGULAR MEETING and
CITY OF CUDAHY AS SUCCESSOR AGENCY and

HOUSING SUCCESSOR AGENCY TO THE CUDAHY

DEVELOPMENT COMMISSION JOINT MEETING
July 18, 2023 6:30 P.M.

1. CALL TO ORDER
Mayor / Chair Lomelí called the meeting to order at 6:38 p.m.

2. ROLL CALL
PRESENT: Council / Agency Member Cynthia Gonzalez
Council / Agency Member Martin Fuentes
Council / Agency Member Elizabeth Alcantar
Vice Mayor / Vice Chair Jose R. Gonzalez (joined remotely at 6:49 p.m.)
Mayor / Chair Daisy Lomelí
ABSENT: None
ALSO PRESENT: City Manager, Alfonso Noyola, City Attorney, Stephanie Arechiga, Assistant City Attorney, Paloma McEvoy, City Clerk, Richard Iglesias, Assistant City Clerk, Estefania Zamora, Assistant to the City Manager, Andres Rangel, Finance Director, Joshua Calhoun, Administrative Services Director, Brenda Rodriguez, Public Works Director, Aaron Hernandez, Community Development Director, Juan Arauz, Administrative Analyst, Daniela Trujillo, Administrative Analyst, David Reyes, Senior Accountant, Charles Ortiz, and Executive Assistant, Janet Andrade.

3. APPROVAL OF AGENDA
Administrative Services Director, Brenda Rodriguez requested City Council to consider moving item 6B to be heard before item 6A.

Motion: Council Member Alcantar motioned to move item 6B before item 6A, seconded by Council Member C. Gonzalez. Motion passed 4-0-1 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, and Lomelí
NOES: None
ABSENT: J. Gonzalez
ABSTAIN: None
Attachment A Page 9 of 147
City Council/Successor Agency Minutes of 7/18/2023

4. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Fuentes.

5. LAND ACKNOWLEDGEMENT
The Land Acknowledgment was led by Council Member Alcantar.

We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respects to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.

6. PRESENTATIONS
A. Certificate of Recognition presented to the City of Cudahy by the Bell Chamber of Commerce
B. Citizen Recognition Award
C. City Manager Presentation
Vice Mayor Gonzalez announced he would be joining the meeting virtually because he is ill and does not want to get others sick.

Motion: Council Member Fuentes motioned to allow Vice Mayor J. Gonzalez to participate in the Council Meeting remotely under emergency circumstances, seconded by Council Member Alcantar. Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez, and Lomelí NOES: None
ABSENT: None
ABSTAIN: None

7. PUBLIC COMMENTS
Patricia Osorio stated she has eight months of living in Cudahy and has seen problems in the area she lives in, hopes the city takes action, parking permits cost a lot, streetlights are too dark, and has been reported to the City.

Amanda Arambula mentioned completing a six-year anniversary with youth with Down syndrome and autism and thanked Council for their support.

Berta M mentioned she has been living in Cudahy for the past three years, is a homeowner, works nights, and has issues with parking, people living in their cars, car break-ins, and trash being thrown after the street sweeper passes; she does not find it

correct that she has to pay $150-$160 for parking when others who come to Cudahy do not pay. Yet, she has to pick up their trash when they leave; cars are not cited, called numerous times, speeding on Live Oak and Flora, the stop sign is not respected, and asked to fix the stop sign issue and parking enforcement.

David Rodriguez spoke in opposition of renaming Clara Expansion Park to Christopher Garcia Park and read out a statement from the Secretary of State alleging Former Councilmember Garcia did not live in the City of Cudahy.

Susie commented on translation services item, asked Council to continue services with the current vendor, Municipal Translation Company, supported the previous speaker's comments regarding the renaming of the park and asked for an update for repairs at Lugo Park and other parks.

Star Laca spoke in opposition to renaming the park after Chris Garcia.

EMAILED PUBLIC COMMENTS
Tevina Quintana commented on the decision to name Expansion Park after Chris Garcia made in the previous council meeting, provided guidelines for schools and families posted by "The Society Prevention of Teen Suicide," and directed her comments to four council members.

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member Fuentes thanked everyone for the birthday wishes, commented on activities he participated in, the pride event in June, rent stabilization meetings, City of Bell reorganization, meet and greet with State Senator Lena Gonzalez, attended Cudahy's 4th of July event, Cudahy's movie night, requested to explore creating an ad hoc to beautify the City.

Council Member C. Gonzalez asked for an update on parking fees, cost, and changes in cost, based on comments made, mentioned vehicles vandalized, lighting projects taking place, information going out to residents, congratulated city staff for the 4th of July event, joined Councilmember Fuentes in meet and greet with State Senator Lena Gonzalez, expressed her excitement to serve Cudahy and continue to see staff making the City great.

Council Member Alcantar commented on being a part of the Water Education for Latino Leaders presentation, wants to dive deeper into water issues in Cudahy, supports Unite Here Local 11, attended the rent stabilization April session at Clara Park, wants the City to have Spanish interpretation available, was part of the YEO Network Jordan-Huerta Women's Leadership Program, attended the NALEO conference taking part in workshops, mentioned a community choice aggregate model around energy, wants staff to look at how to support unions and a community choice aggregate.

City Council/Successor Agency Minutes of 7/18/2023

City Council/Successor Agency Minutes of 7/18/2023

Vice Mayor J. Gonzalez commended the team for the 4th of July event and other events, commented on the partnership with the County, mental health hotline, staff working with leading experts, and spoke on his attendance at the NALEO conference.

Mayor Lomelí echoed the opportunity to attend NALEO, mentioned hearing how the City is on the right path, spoke on rent control becoming official, encouraged everyone to reach out to staff if they have questions, requested that staff use the backpack giveaway to reach out to families, possibly include a flyer in the backpacks, requested for Rent Control Ad Hoc Committee Members be recognized at the upcoming Council Meeting, thanked the community, highlighted the turn out for the 4th of July event, would like to see how many more events the City can have with a big turnout.

9. CITY MANAGER REPORT (information only)

10. REPORTS REGARDING AD HOC, ADVISORY, STANDING OR OTHER

COMMITTEE MEETINGS - NONE

11. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Motion: Council Member Fuentes motioned to waive full reading of resolutions and ordinances, seconded by Vice Mayor J. Gonzalez. Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez, and Lomelí NOES: None
ABSENT: None
ABSTAIN: None

12. CONSENT CALENDAR
A. Consideration to Review and Approve the Draft Minutes of July 7, 2023, for the Special Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for July 7, 2023.

B. Approval of the Local Agency Investment Fund (LAIF) for the Month of June 2023 Presented by the Finance Director
Recommendation: The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of June 2023 in the amount of $12,396,515.06.

City Council/Successor Agency Minutes of 7/18/2023

C. Approval of the City Demands and Payroll Including Statement of Investment for the Month of June 2023
Presented by the Finance Director
Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $1,230,025.68 including the Statement of Investments for the month of June 2023.

D. Informational Item – ARPA Utilization Plan Monthly Report (June 2023) Presented by the Finance Director
Recommendation: The City Council is requested to receive and file the ARPA Utilization Plan Monthly Report for the month of June 2023.

E. Adoption by Second Reading of Ordinance No. 738 Repealing Ordinance No. 696, Terminating Development Agreement No. 696 between the City of Cudahy and 420 Realty LLC, and Revoking Commercial Cannabis Permit No. CCP 18-0002 Presented by the Community Development Director
Recommendation: Staff recommends the City Council open the public hearing, receive public testimony, and consider the following action(s):

1. Adopt by second reading, in title only, Ordinance No. 738 repealing Ordinance No. 696 (Attachment B), terminating Development Agreement No. 696 between the City of Cudahy and 420 Realty, and revoking related Commercial Cannabis Permit No.

CCP 18-0002 is currently held by 420 Realty, LLC (“Owner”).

F. Adoption by Second Reading of Ordinance No. 739 to repeal Ordinance No. 688, accept the voluntary surrender of Commercial Cannabis Permit No. 18-0004 and terminate related Development Agreement No. 18-004C between the city of Cudahy and Cecilia Street, LLC
Presented by the Community Development Director
Recommendation: Staff recommends the City Council open the public hearing, receive public testimony, and consider taking the following action(s):

1. Adopt by second reading, in title only, Ordinance No. 739 to repeal Ordinance No. 688 (Attachment B), accept the voluntary surrender of Commercial Cannabis Permit No. 18-0004 and terminate related Development Agreement No. 18-004C between the city of Cudahy and Cecilia Street, LLC.

City Council/Successor Agency Minutes of 7/18/2023

G. Adoption of Proposed Resolution No. 23-35, A Resolution of the City Council of the City of Cudahy Amending the Salary Plan for City Employees Presented by the Human Resources Manager
Recommendation: The City Council is requested to approve Resolution No. 23-35, of the City Council of the City of Cudahy amending the Salary Plan for City employees.

Motion: Vice Mayor J. Gonzalez motioned to approve Consent Calendar items, seconded by Council Member Fuentes. Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez, and Lomelí NOES: None
ABSENT: None
ABSTAIN: None

13. PUBLIC HEARING
A. A Public Hearing to Consider and Adopt Resolution No. 23-36 of the City of Cudahy City Council Approving Substantial Amendment No. 1 to the Fiscal Year 2023-2024 Community Development Block Grant (CDBG)
Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to Adopt Resolution No. 23-36, approving Substantial Amendment No. 1 to the Fiscal Year 2023-2024 Community Development Block Grant (CDBG).

At 7:43 p.m. Mayor Lomelí opened public comment
Public Comments: None
At 7:45 p.m. Mayor Lomelí closed public comment
Motion: Council Member Alcantar motioned to adopt Resolution No. 23-36, approving Substantial Amendment No. 1 to the Fiscal Year 2023-2024 Community Development Block Grant (CDBG), seconded by Council Member C. Gonzalez. Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez and Lomelí NOES: None
ABSENT: None
ABSTAIN: None

City Council/Successor Agency Minutes of 7/18/2023

14. BUSINESS SESSION
A. Approval of Professional Services Agreement for Remote and On-site Translation Services
Presented by the City Clerk
Recommendation: The City Council is requested to award a Professional Services Agreement (PSA) to both Municipal Translation Company and Language Network, to provide remote and on-site translation for a one-year term, maximum of two (2) one-year extension terms, with the total services for both agreements not to exceed $18,000 annually.

Motion: Council Member C. Gonzalez motioned to award a Professional Services Agreement (PSA) to both Municipal Translation Company and Language Network, to provide remote and on-site translation for a one-year term, maximum of two (2) one-year extension terms, with the total services for both agreements not to exceed $18,000 annually, seconded by Council Member Fuentes. Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez and Lomelí NOES: None
ABSENT: None
ABSTAIN: None
B. Adoption Approval of Professional Services Agreement with Fiesta Taxi Cooperative, Inc. for Dial-A-Ride Services
Presented by the Administrative Analyst
Recommendation: The City Council is requested to approve a Professional Services Agreement (PSA) with Fiesta Taxi Cooperative, Inc. for Dial-A-Ride Services in the amount not-to-exceed $100,000 annually.

Motion: Council Member Fuentes motioned to approve a Professional Services Agreement (PSA) with Fiesta Taxi Cooperative, Inc. for Dial-A-Ride Services in the amount not-to-exceed $100,000 annually, seconded by Vice Mayor J. Gonzalez. Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez and Lomelí NOES: None
ABSENT: None
ABSTAIN: None

City Council/Successor Agency Minutes of 7/18/2023

C. Approval of a First Amendment Willdan Engineering to Provide Design Phase Engineering Services for the Cudahy Park Renovation Project Presented by the Assistant to the City Manager
Recommendation: City Council is requested to approve a First Amendment to Professional Services Agreement (PSA) with Willdan Engineering Inc. to provide additional design services for the preparation of PS&E (Plan, Specifications, and Estimates) for the Cudahy Park Renovation Project, not to exceed $40,866.

Motion: Council Member Alcantar motioned to approve a First Amendment to Professional Services Agreement (PSA) with Willdan Engineering Inc. to provide additional design services for the preparation of PS&E (Plan, Specifications, and Estimates) for the Cudahy Park Renovation Project, not to exceed $40,866, seconded by Council Member C. Gonzalez. Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez and Lomelí NOES: None
ABSENT: None
ABSTAIN: None
D. Consideration to Authorize the City Manager to Execute an Agreement for the Purchase of a Double Drum Roller with Dynapac Fayat Group

Presented by the Administrative Analyst
Recommendation: The City Council is requested to authorize the City Manager to enter into a Cooperative Purchase Agreement with Dynapac Fayat Group for Double Drum Roller, for an amount not-to-exceed $51,516.96.

Motion: Council Member Alcantar motioned to authorize the City Manager to enter into a Cooperative Purchase Agreement with Dynapac Fayat Group for Double Drum Roller, for an amount not-to-exceed $51,516.96, seconded by Council Member C. Gonzalez Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez, and Lomelí NOES: None
ABSENT: None
ABSTAIN: None
E. Mobile App and City Website Redesign Progress Update Presented by the Administrative Analyst
Recommendation: The City Council is requested to receive and file.

City Council/Successor Agency Minutes of 7/18/2023

NO MOTION – PRESENTATION ONLY
F. Finance Department Annual Update
Presented by the Finance Director
Recommendation: The City Council is requested to receive and file.

NO MOTION – PRESENTATION ONLY

15. COUNCIL DISCUSSION
A. Council Member Fuentes
i. Branding of City Murals
At 9:20 p.m., Assistant City Attorney, Paloma McEvoy recessed to closed session.

16. CLOSED SESSION
A. Closed Session Pursuant to Government Code Section 54956.9(e)(1) – Conference with Legal Counsel to Discuss Matter Involving Potential Litigation – Two Matters At 11:12 p.m., Mayor Lomelí reconvened to open session.

17. CLOSED SESSION ANNOUNCEMENT
Assistant City Attorney Paloma McEvoy announced that the City Council meet in closed session pursuant to Government Code Section 54956.9(e)(1) to conference regarding two matters involving potential litigation, no reportable action.

18. ADJOURNMENT
The City Council / Agency meeting adjourned at 11:13 p.m.

Daisy Lomelí
Mayor
ATTEST:

Richard Iglesias
City Clerk

Attachment
B

Blank Page

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
08/01/2023 Page 1 of 4

STAFF REPORT
Date: August 1, 2023
To: Honorable Mayor and City Council Members
From: Alfonso Noyola, City Manager
By: Cecilia Madrigal-Gonzalez, Senior Planner
Concurrence: Juan Arauz, AICP, Community Development Director Subject: Review of Draft Economic Development Strategic Plan

RECOMMENDATION
The City Council is requested to take the following action(s):

1. Review, discuss, and provide feedback on the draft Economic Development Strategic Plan (“EDSP”).

2. Direct staff to bring back the EDSP, with feedback received, for City Council adoption at a future City Council regular meeting.

BACKGROUND
Location
The City of Cudahy is centrally located at the southeastern Los Angeles gateway at a thriving regional market with substantial population density and associated spending power. In area, Cudahy is the second smallest city in Los Angeles County with one square mile of area, but with one of the highest population densities of any incorporated city in the United States. Cudahy is bordered by the cities of Bell (north), Bell Gardens (east), South Gate (south and southwest), and Huntington Park (west). Cudahy offers transportation access for commerce through adjacent I-710 and I-5/I-105 freeways.

Previous Economic Development Initiatives
Through a series of planning initiatives from 2018 to 2022, the City of Cudahy identified the need to focus community and economic development resources on the revitalization of Atlantic Avenue as the City’s most viable commercial corridor. These efforts included:
• City of Cudahy General Plan 2040 & Economic Development Element (Adopted 2018) • Zoning Code Updates (2018-2022)
• Development Impact Fee Update (2021)
Item Number
14B

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Background
In 2019, the City of Cudahy retained the consulting team of Willdan Financial & Economic Consulting Services to undertake a retail market analysis and redevelopment strategy referred to as the Economic Development Strategic Plan (EDSP). The objective of the EDSP is to identify opportunities related to Atlantic Avenue, the City’s primary commercial corridor. Since 2019, staff identified the need to focus community and economic development resources on the revitalization of Atlantic Avenue, with a specific focus on the City’s Entertainment District as shown in Figure 1 below:

Figure 1: Entertainment District Priority Redevelopment Area Community Engagement
To obtain feedback on the redevelopment concept in the Entertainment District of Atlantic Avenue, the consultant and City staff conducted community and business outreach through various methods from June 2022 to July 2023. The outreach included the following:
• In-person data collection interviews with City staff from the City Manager, Community Development, and Finance departments.
• Virtual interviews with members of the City’s leadership. • Virtual community survey in English and Spanish.
• In-person SWOT Work Session at Clara Park.

The results of the community engagement are summarized in the draft EDSP.

DISCUSSION
Market Opportunities
To evaluate the market demand for all uses, the EDSP reviewed readily available economic and market data from industry standards data from Business Analyst, CoStar, and Placer. Ai for the

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City and surrounding areas such as South Gate, Huntington Park, Bell, and Bell Gardens. The analysis revealed key economic opportunities for the City that would serve to attract new businesses to the Entertainment District as summarized below in Table 1.

Table 1: Summary of Market Opportunities
RETAIL • Substantial retail leakage and projected spending power growth indicate an opportunity for a variety of retail/dining/entertainment users.
• Zoning code revisions to help support an Entertainment District would provide a more competitive employment center.

MULTI-FAMILY • Substantial demand for a variety of housing options. • Aging housing stock with minimal amenities creates opportunities for upgrades and new competitive supply.
• Land banking with City Successor Agency Sites for redevelopment opportunities.

INDUSTRIAL • Underutilized and aging properties create opportunities for reimagined retail/dining/entertainment uses.

COMMERCIAL AND MEDICAL
OFFICE
• Proximity to Kaiser Permanente and regional wellness hub opportunities long-term.
• Build-to-suit opportunity for specific, identified medical office users.

HOTEL/HOSPITALITY • The Entertainment District could catalyze high-quality redevelopment to attract future hotel construction.
• Market occupancy growth is climbing, indicating COVID recovery.

Implementation Plan Priorities
To achieve the City of Cudahy’s future vision and brand identity into a regional Entertainment District and community gathering hub, the EDSP recommends the following key recommendations:

1.0 Internal Capacity Building Initiative.

2.0 Community Identity/Branding Program.

3.0 Business & Investment Attraction Program.

4.0 Community Preservation Program.

5.0 Quality of Life Investment Strategy.

6.0 Major Project Accelerator Program.

These initiatives are supported by detailed action steps to be managed primarily by the Community Development Department. The action steps supporting each proposed initiative would also market the City as a proactive development partner.

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PLANNING COMMISSION RECOMMENDATION
On July 17, 2023, the Planning Commission reviewed the draft EDSP and provided recommendations for the EDSP to address parking concerns due to development growth, continue outreach and education, and review development standards in the Zoning Code to maximize land space. To assist with the EDSP's goals and policies, the Planning Commission also directed City staff to assess the current development standards, particularly those pertaining to parking and building height to name a few. City staff has incorporated all recommendations from the Planning Commission into the EDSP draft.

STRATEGIC PLAN IMPACT

The EDSP supports the following Strategic Plan Goals and Strategies:
• Goal E (City Infrastructure and Service Delivery), Strategy 5. The EDSP supports the development of citywide design guidelines for Cudahy’s branding. • Goal F (Communication and Outreach), Strategy 1. The EDSP provides recommendations to develop the Cudahy brand.

FINANCIAL IMPACT
The City entered into a Professional Services Agreement (PSA) with Willdan Financial to create the EDSP, not to exceed $42,440 paid by the General Fund.

CONCLUSION
The EDSP would establish a vision for improving the City’s long-term fiscal resilience and community identity through City-led commercial redevelopment and effective public-private partnerships. Adoption of the EDSP would clearly communicate to interested businesses, developers, and stakeholders that the City of Cudahy is proactively pursuing economic prosperity by inviting new businesses of diverse types and sizes.

ATTACHMENTS
A. Draft Economic Development Strategic Plan as of July 26, 2023.

f<INSERT COVER ART>
City of Cudahy, CA
DRAFT Retail Market Analysis & Economic Development
Strategy
July 03, 2023 (v19_cg)
City of Cudahy, CA
Economic Development
Strategic Plan
Draft Draft July 2023 : August 2023
Attachment A Page 25 of 147
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ACKNOWLEDGEMENTS
City of Cudahy Staff
Alfonso Noyola, City Manager
Juan Arauz, Community Development Director
Cecilia Madrigal-Gonzalez, Senior Planner
Joshua Calhoun, Finance Director
Mayor & City Council
Daisy Lomeli, Mayor
Jose R. Gonzalez, Vice Mayor
Elizabeth Alcantar, Council Member
Martin U. Fuentes, Council Member
Cynthia Gonzalez, Council Member
Planning Commission
Krystal Markovich, Chair
Yessica Alvarez, Vice Chair
Richard Corvera-Hernandez, Commissioner
Gustavo Mendez, Commissioner
Real Estate & Economic Development Consulting
Support
Willdan Financial & Economic Consulting Services
Temecula, CA
www. willdan.com

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TABLE OF CONTENTS
Part I: Economic Development Strategic Plan .......................... I-1 I...................................................Introduction & Executive Summary ...................................................................................... I-1 Economic Development Policy Context .............................. I-1 Market Analysis Findings ................................................... I-3 Entertainment District Infill Opportunities ......................... I-3 Entertainment District Growth Supports Hotel Development ......................................................................................... I-3 Emerging Multifamily Development.................................. I-3 Office/Medical Office Development.................................. I-4 II. Implementation Plan Priorities ........................................... I-7 Introduction..................................................................... I-7

1.0 Internal Capacity Building Initiative ............................... I-8 Existing Conditions ........................................................... I-8 Recommendations ....................................................... I-8

2.0 Community Identity/Branding Program ....................... I-10 Existing Conditions ......................................................... I-10 Recommendations ..................................................... I-11

3.0 Business & Investment Attraction Program................... I-12 Existing Conditions ......................................................... I-12 Recommendations ..................................................... I-13

4.0 Community Preservation Program............................... I-14 Existing Conditions ........................................................ I-14 Recommendations..................................................... I-14

5.0 Quality of Life Investment Strategy............................. I-15 Existing Conditions ........................................................ I-15 Recommendations..................................................... I-15

6.0 Major Projects Accelerator Program............................ I-17 Existing Conditions ........................................................ I-17 Recommendations..................................................... I-17 Entertainment Destination Case Study: SteelCraft ............. I-18 III. Economic Development Funding Plan.............................. I-20 Public Private Funding Tools ........................................... I-20 Real Estate and Property ................................................ I-20 Development Incentives................................................. I-22 Special Assessment Districts........................................... I-22 Land Use / Zoning.......................................................... I-23 Tax/Revenue Rebates..................................................... I-23 Public Private Partnership Delivery Methods................... I-24 Community Revitalization and Investment Area (CRIA) /
Enhanced Infrastructure Financing Districts (EIFDs)......... I-24 State and Federal Grants / Funding................................ I-25 Property Assessed Clean Energy (PACE) ........................ I-26 Joint Powers Authorities................................................. I-27 Next Steps ...................................................................... 30 Performance Metrics .........................................................30

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Part II: Demographic & Economic Profile Report ............... II-1 I. Community Change & Growth........................................... II-1 Population .......................................................................II-1 Household Growth and Size Characteristic.......................II-3 Age Characteristics ..........................................................II-4 Household Income...........................................................II-5 Population by Race..........................................................II-6 Housing Value and Tenure Characteristics .......................II-7 Educational Attainment....................................................II-9 Fiscal Resiliency Assessment..........................................................II-10 Part III. Real Estate Market Analysis ................................. III-1 I. Redevelopment Constraints & Opportunities....................... III-1 Executive Summary ........................................................III-1 Methodology and Approach............................................III-5 Geographic Information Systems (GIS)............................III-5 Regional Housing Needs Assessment .............................III-5 Existing Conditions.........................................................III-6 Location..........................................................................III-6 Development History ......................................................III-6 Physical Characteristics ...................................................III-6 Legal & Regulatory Overview..........................................III-7 Zoning Considerations ....................................................III-7 Community & Economic Development Context.................III-8 Traffic Counts..................................................................III-8 Retail Market Indicators .................................................. III-9 2023: Vacancies, Absorption, Rents and Sales...............III-10 Cudahy Entertainment District Opportunities ................III-11 Retail Gap Analysis........................................................III-12 Market Leakage & Lost Tax Revenues ...........................III-14 Spending Power Analysis ..............................................III-16 Multifamily Market ........................................................III-18 Supply Characteristics ...................................................III-18 Housing Needs Assessment Demand............................III-22 Constraints & Opportunities..........................................III-24 Industrial Market Overview ............................................III-25 2023: Vacancies, Absorption, Rents, and Sales..............III-25 Supply Characteristics ...................................................III-26 Demand Drivers ............................................................III-27 Constraints & Opportunities..........................................III-28 Commercial & Medical Office Market..............................III-28 Supply Characteristics ...................................................III-28 Demand Drivers ............................................................III-28 Constraints & Opportunities..........................................III-28 Hotel/Hospitality Market Overview .................................III-29 Supply Characteristics ...................................................III-29 Demand Drivers ............................................................III-29

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Constraints & Opportunities..........................................III-29 Conclusion...................................................................III-30 Community Engagement...............................................III-31 Community Visioning 2022/23: SWOT Workshop Results..III-33 Part IV: Real Estate & Economic Development Consulting Support Contact Information ......................................................... IV-1

INDEX OF TABLES
Table 1: Atlantic Avenue Commercial Market Opportunities 2024- 2028Sector........................................................................................... I-5 Table 2: Retail/Dining/Entertainment Void Analysis – City of Cudahy (20-Minute Drive Time), 2021-2022 ................................................... I-6 Table 3: Cudahy Long Range Master Plan Successor Agency Sites ............................................................................................................ I-12 Table 4: Cudahy Public-Private Funding Tools Rankings ............... I-28 Table 5: EDSP Performance Metrics ................................................ I-30 Table 6: Population Growth Trends, Cudahy & Neighboring Jurisdictions, 2023-2028 .................................................................... II-1 Table 7: Household Growth Trends, 2023-2028.............................. II-3 Table 8: General Fund Revenue...................................................... II-10 Table 9: Atlantic Avenue Commercial Market Opportunities 2024- 2028 .................................................................................................... III-4 Table 10: Retail Supply: City of Cudahy Retail Market Indicators, 2023 .................................................................................................. III-10 Table 11: Cudahy Customer Journey: Top 15 Retail Destinations, 2021-2022......................................................................................... III-12 Table 12: Cudahy Resident Retail Sales Tax Leakage, 2021-2022 ........................................................................................................... III-14 Table 13: Retail/Dining/Entertainment Void Analysis by Operator – City of Cudahy (20-Minute Drive Time), 2021-2022......................III-15 Table 14: Southeast LA Submarket Incremental Retail Spending Power Projections (2023 to 2028)...................................................III-17 Table 15: 20-Minute Drive Time Spending Power Projections (2023 to 2028).............................................................................................III-18 Table 16: City of Cudahy Multifamily Market Summary................III-19 Table 18: Cudahy Multifamily Supply.............................................III-22 Table 19: City of Cudahy RHNA 6th Cycle Estimated Housing Construction Need, October 2021 – October 2029 .....................III-22 Table 20: Cudahy Multifamily Vacancy and Absorption...............III-23

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Table 21: Cudahy Industrial Submarket Square Footage by Asset Type...................................................................................................III-25 Table 22: Local and Submarket Industrial Real Estate Indicators ...........................................................................................................III-26 Table 23: Cudahy Industrial Supply ................................................III-26 Table 24: Summary Table Constrains and Opportunities by Product Type...................................................................................................III-30

INDEX OF FIGURES
Figure 1: City of Cudahy Zoning Map, 2023..................................... I-2 Figure 2: Example of Latino Heritage City Plaza – Tuxcueca, Jalisco ............................................................................................................ I-11 Figure 3: Cudahy Economic Development Element – P3 Opportunity Sites, 2022.......................................................................................... I-12 Figure 4: Cudahy Community Outreach.......................................... I-14 Figure 5: City of Cudahy – Top 15 Destinations, 2021-2022......... I-15 Figure 6: Project for Public Spaces: What Makes a Great Placemaking?..................................................................................... I-16 Figure 7: Steelcraft Brewery, Bellflower, CA ................................... I-18 Figure 8: Comparison of Retail Destination Inflow – Bellflower vs.

Cudahy................................................................................................ I-19 Figure 9: Community Gathering-Oriented Redevelopment,
Bellflower, CA (2023) ....................................................................... I-19 Figure 10: Public-Private Funding Tools .......................................... I-21 Figure 11: Public-Private Partnership Delivery Methods................. I-24 Figure 12: Estimated and Projected Population Growth, 2000-2028 . .................................................................................................... II-2 Figure 13: Average Household Size (Persons Per Household)........II-3 Figure 14: Age Distribution by Cohort, 2023 ...................................II-4 Figure 15: Projected Net Change in Median Household Income (2023 to 2028) .....................................................................................II-5 Figure 16: Population by Race1
, 2023...............................................II-6 Figure 17: Housing by Tenure ...........................................................II-7 Figure 18: Median Housing Value, 2023...........................................II-8 Figure 19: Population 25+ Years by Educational Attainment, 2023.... ..............................................................................................................II-9 Figure 20: Traffic Heat Map ...............................................................II-9 Figure 21: Cudahy Retail Submarket.............................................. III-10

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Figure 22: Retail Supply Overview – Regional Superstores, 2022........ ...........................................................................................................III-13 Figure 23: Regional Submarket (20-Minute Drive Time) ...............III-16 Figure 24: Cudahy Multifamily Submarket .....................................III-18 Figure 25: Cudahy Multifamily Building Location Map .................III-20 Figure 26: Cudahy Multifamily Units by Year Built, Q3 2022........III-21 Figure 27: Cudahy Industrial Submarkets.......................................III-25 Figure 28: California Taxable Cannabis Sales ................................III-27 Figure 29: Cudahy Hospitality Submarket......................................III-29

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City of Cudahy, CA
Economic Development Strategic Plan 2023
Part I – Implementation & Funding Plan
Draft: August 2023

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Part I: Implementation & Funding Plan
I. Introduction & Executive Summary
The City of Cudahy retained the consulting team of Willdan Financial & Economic Consulting Services (Temecula, CA) to undertake a retail market analysis and redevelopment strategy. The objective of the market analysis is to identify development constraints and opportunities related to Atlantic Avenue, the City’s primary commercial thoroughfare.

Economic Development Policy Context
Through a series of planning initiatives from 2018 to 2022, the City of Cudahy identified the need to focus community and economic development resources on the revitalization of Atlantic Avenue as the City’s primary commercial tax generator.

Community feedback collected through surveys, workshops, and other mechanisms supports the redevelopment concept defined by the City’s zoning code amendment that designates the southern quadrant of Atlantic Avenue as an Entertainment District to serve as a regional and community gathering hub (Figure 1).

Today, Atlantic Avenue is a fragmented regional thoroughfare with underutilized, disinvested industrial uses, scattered fast food establishments, and adequately performing Class B/C commercial shopping plazas.

With intentional urban infill redevelopment activity and a revitalized community identity, the City of Cudahy will catalyze much needed commercial development and capture a greater “fair share” of regional spending and tax revenue going forward.

The City of Cudahy’s 2018 Economic Development Element
established six goals to guide the Community Development Department’s work task priorities, staff resource allocations, and strategic partnerships.

The City’s Economic Development Element (2018)
Goal 1: A diverse and healthy economy
Goal 2: A thriving business climate attracting and
retaining new businesses of diverse types
and sizes
Goal 3: A skilled and adaptable local workforce
Goal 4: A partner for public and private
development that aligns with the
community vision
Goal 5: Maintain the City’s fiscal health
Goal 6: A City that values and uplifts the
economic potential of its vulnerable
populations

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Figure 1: City of Cudahy Zoning Map, 2023
Source: City of Cudahy; LA County Assessor; Willdan, 2023 Cudahy
Entertainment
District
Priority
Redevelopment
Area

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This policy guidance established a vision for improving the City’s longterm fiscal resilience and community identity through City-led commercial redevelopment and effective public-private partnerships.

The following market analysis validates the opportunity for this redevelopment concept and provides an implementation strategy to guide Cudahy’s Community and Economic Development activities over the next five to ten years.

Market Analysis Findings
As a key Gateway Community of Los Angeles County, the City of Cudahy’s real estate market holds potential for complementary uses that better meet the vision of the City and serve the community.

To evaluate the market demand for all uses, Willdan reviewed readily available economic and market data for the City of Cudahy and the larger submarkets the City falls within.

Interviews with local and regional real estate brokers, economic development entities, and civic/cultural representatives were also conducted.

The market study revealed several transformative opportunities for the City of Cudahy within the regional market that would serve to attract new businesses to the Entertainment District and generate new tax revenues:

Entertainment District Infill Opportunities
Cudahy is well-positioned in a powerful regional market with strong spending power. The area also demonstrates substantial demand for a variety of retail, dining, and entertainment options. However, existing options within Cudahy and $65 million in retail leakage indicate that residents primarily spend outside City limits to meet their needs. This strong spending power and local demand create near-term opportunities to attract, grow, and support various
retail/dining/entertainment users within the Entertainment District. The SteelCraft brewery in Bellflower represents a model for how the City can support unique infill opportunities to make the Entertainment District a destination hub for residents and surrounding communities.

Entertainment District Growth Supports Hotel Development The City is leading an intentional transition from disinvested industrial uses to destination Entertainment District uses. Over the long term, this strategy will support new hotel demand along Atlantic Avenue as the City’s primary commercial corridor with excellent visibility and traffic counts (midscale class, 100-150 keys, 2-4 stories).

Emerging Multifamily Development
Multifamily residential development activity is occurring on its own.

Public support for future residential development should focus on attracting new urban infill mixed-use product to meet the City’s

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Regional Housing Needs Assessment (RHNA)1 targets and the scale, quality, and character of new product according to the General Plan Update 2040.2
Office/Medical Office Development
With a focus on the potential synergies of proximity to the regional Kaiser Permanente Medical Center and emerging “Med-Tail” development3
, medical office product is considered a longer-term
opportunity and tied to availability of commercial space at a price point that will support the high fit-out costs of investment grade medical space users.

In the future, disinvested/underutilized commercial shopping centers may offer opportunity for redevelopment and reuse for medical office.

This strategy would be further strengthened by outreach and marketing.
1 https://www.hcd.ca.gov/housing-elements/docs/cudahy-6th-draft101521.pdf 2 https://www.cityofcudahy.com/DocumentCenter/View/216/Cudahy-General-Plan2040-PDF 3 “Med-Tail” is a new retail sector that refers to the business arrangement of retail centers in mixed-use developments leasing space to medical facilities. It commonly These real estate market opportunities are further supported by the General Plan’s guidance. The specific Entertainment District properties with the highest likelihood of attracting near-term investment and redevelopment activity will be those with sufficient land capacity, environmental approvals, and an identifiable and willing seller.

The City’s role in catalyzing the targeted redevelopment envisioned by the new Zoning Code is tied to these foundational elements that will be further addressed in the Economic Development Strategic Plan’s implementation recommendations.

The following tables provide a summary of these market findings according to data and input provided by the City of Cudahy Community Development Department, Urban Land Institute (ULI), Lee & Associates (commercial brokers), and research collected by Willdan Financial & Economic Consulting Services from May 2022 through June 2023.
includes less invasive or non-invasive medical services including dental, dermatology, eyecare offices, and counseling and mental health services. https://www.cushmanwakefield.com/en/united-states/insights/us-articles/medtailwhen-healthcare-meets-retail

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Table 1: Atlantic Avenue
Commercial Market
Opportunities 2024-
2028Sector
Atlantic Avenue Market Opportunity Developer Requirements

MULTIFAMILY
2 to 3 mixed-use multifamily buildings over the
next 5-7 years
low-income and market rate workforce housing
product
Neighborhood Infill typology
(25-120 units per property, 2-5 stories)
1 to 5 acres per project
Street frontage and rear-access parking
Structured parking likely requires public subsidy

DESTINATION RETAIL/

ENTERTAINMENT
Substantial retail leakage identified; near-term
opportunity for a variety of regional family-oriented
retail/dining/entertainment uses:

Dining, sports arena, gambling, bowling alley, jump
zone, fast casual dining (sit-down pizza), community
gathering (brewery)
1 to 2 acres per project
Approx. 5,000-10,000 Sq Ft per tenant
High visibility locations & intersections
along Atlantic Avenue
MIXED-USE RESIDENTIAL Ground-floor mixed-use residential over retail will occur on a site-by-site basis over the next five years
Multifamily building retail uses require
1,000 - 5,000 Sq Ft per tenant

MEDICAL OFFICE
Outpatient facility is possible if aligns with
expansion needs of nearby regional medical center
systems (i.e., Kaiser Permanente Cudahy Medical
Offices)
20,000 - 30,000 Sq Ft
2 stories
High visibility locations & intersections
along Atlantic Avenue
HOTEL 1 new hotel in the next 5-10 years

1.5 to 4 acres per project
Midscale class (100 -150 keys, 2-4 stories)
High visibility locations & intersections
along Atlantic Avenue
Source: City of Cudahy; Urban Land Institute; Lee & Associates; Willdan, 2023

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Table 2: Retail/Dining/Entertainment Void Analysis – City of Cudahy (20-Minute Drive Time), 2021-2022 Source: Placer.ai; Willdan, 2022

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II. Implementation Plan Priorities
Introduction
To achieve the City of Cudahy’s future vision and brand identity that would be created through the redevelopment of Atlantic Avenue into a regional Entertainment District and community gathering hub, the following Economic Development initiatives are recommended for adoption by the City Council.

These strategies are supported by detailed recommendations to be managed by the Department of Community Development and
associated strategic partners. These activities should be tracked regularly to evaluate the City’s economic development performance and resource allocations.

Adoption of the Economic Development Strategic Plan will clearly communicate to investors and developers that the City is proactively facilitating Cudahy’s evolution from a bedroom community to a fullservice community with dedicated Community Development Department resources.

The recommendations supporting each proposed initiative will also market the City as a proactive development partner who will provide clarity to the investors/developers, thereby reducing risk and time in the entitlement and construction process.

City of Cudahy
Economic Development Strategic Plan
FY2023/24 –FY2028/29
Key Recommendations

1.0 Internal Capacity Building Initiative

2.0 Community Identity/Branding Program

3.0 Business & Investment Attraction Program

4.0 Community Preservation Program

5.0 Quality of Life Attraction Strategy

6.0 Major Projects Accelerator

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1.0 Internal Capacity Building Initiative
Existing Conditions
The City of Cudahy is actively implementing several long-term strategies to expand internal capacity for managing commercial redevelopment activity.

In 2022 the City’s updated the zoning code and hired a full-time Community Development Director. With expanded staffing, the City has positioned itself to leverage the value of publicly owned land on Atlantic Avenue.

To achieve the City’s vision of Atlantic Avenue as a thriving commercial corridor and majority contributor to the City’s General Fund revenues, the City should explore investing in additional staffing dedicated to implementing the Economic Development Strategic Plan’s recommendations.

These focused resources would take the lead on administering the Business Retention & Expansion and Community Preservation Programs to actively facilitate commercial redevelopment while also protecting the City’s existing small businesses.

Initially, this role could be filled by a dedicated Economic Development staff resource (1 full-time equivalent). As the Entertainment District redevelopment plan progresses, the City should consider adding part-time or contract staff support to conduct outreach and collect data.

Recommendations

1.1 Expand Planning & Economic
Development Resources

1.1.1 Hire Economic Development Staff
Resource (1 FTE)

1.1.2 Increase Targeted Business Retention &
Attraction Activities

1.2 Form BRE Working Group (include
neighboring Jurisdictions)

1.2.1 Create & Track Business Target List

1.2.2 Create & Track Developer Target List

1.3 Refocus and Expand the Recreation, Arts,
and Cultural Heritage Commission to
Include Entertainment (“REACH”
Commission)

1.4 Actively Market the EDSP to Recruit for
Vacant Commission Seats

1.5 Reevaluate the Civic Center Master Plan

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Another important element of economic development capacity building is the strength of the City’s appointment and volunteer support networks. Here, there is more work to be done to strengthen existing business and community partnerships.

As a starting point, it is recommended that the City explore refocusing and expanding the Recreation, Arts, and Cultural Heritage Commission (RACH) to facilitate commercial
redevelopment activity. The City could consider rebranding the RACH Commission to include entertainment-related initiatives as well (i.e., “REACH” Commission).

Adding entertainment initiatives to the Commission’s purview would create a natural internal small working group focused on Economic Development Strategic Plan implementation and would bolster recruitment of new volunteers. The need for additional volunteer resources also applies to a single City Planning Commission seat vacant as of July 2023.

Finally, internal capacity building is also connected to the physical space occupied by City Departments.

To accommodate the increase in construction and permitting activity which is expected to continue to accelerate, the City should explore renovating and expanding City Hall’s office space to provide an optimal environment for conducting business. The City could accomplish this in the near-term by reevaluating the Civic Center Master Plan to relocate City Hall into the Los Angeles County Library.

Figure 2: Cudahy Community Outreach Event
Source: City of Cudahy, 2023

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2.0 Community Identity/Branding Program
Existing Conditions
Municipal branding defines a City’s sense of identity while also marketing the community’s shared values through transparent communication of civic policies and investments.

The Economic Development Community Workshop identified a cohesive desire for a better-defined community brand and identity.

Community branding is also an important factor in successful business attraction and retention. When site selectors visit a new market, the impressions they take back to the ultimate decision makers begin the moment they set foot in the market.

In 2018, the City undertook a rebranding effort to modernize Cudahy’s web and print design guidelines and logo.4
This effort
created an image of a California bear with the tagline “Open Minds.

Open Doors.” The community outreach survey included questions related to brand recognition of the bear and tagline. Responses were mixed (55% no; 45% yes) indicating an opportunity for the City to revisit its municipal branding strategy and to integrate targeted branding into future redevelopment projects.
4 https://tinyurl.com/CudahyLogo
Beyond branding related to a sense of place, investors and developers associate the ease of doing business with a city as a form of branding.

A City’s capacity to manage large scale redevelopment projects is partially evidenced by existing infrastructure and commercial development activity. According to interviews with area brokers and mixed-use developers, when a city is “professional, reasonable and proactive” throughout the development process these conditions help to provide clarity, reduce risk, and mitigate additional costs related to construction delays.

As an example, the City is in the process of establishing Architectural Design Guidelines to further support the creation of a new City brand and identity.

Establishing architectural guidelines is an important step to improve Cudahy’s image relative to the City’s peers in the submarket and create a distinct sense of place within the City’s jurisdictional boundaries. Other activities that will enhance the City’s community identity and brand recognition are detailed in the recommendations below.

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Other specific activities include establishing placemaking guidelines for future redevelopment on Atlantic Boulevard to improve walkability and opportunities for community gathering.

These initiatives are also linked to the 5.0 Quality of Life Initiative and 6.0 Major Projects Accelerator Program.

To launch the City’s Community Identity and Branding Program, it is recommended that the Community Development Department
requests approval to release a public Request for Proposals for a municipal branding consultant. The scope of work should include, at a minimum:
 Reviewing feedback collected during the EDSP’s community outreach process (see Part III)
 Revisiting the City’s logo to incorporate Latino Heritage design elements
 Creating place-based branding collateral for future
redevelopment sites and public infrastructure
 Integrating the updated City logo and other branding materials in additional communication channels to enhance Cudahy
residents’ community identity as redevelopment continues to progress.

Recommendations

2.1 Launch Community
Identity/Branding Program

2.2 Adopt & Market Architectural
Guidelines

2.3 Establish placemaking guidelines for
future redevelopment
Figure 2: Example of Latino Heritage City Plaza – Tuxcueca, Jalisco Source: City of Cudahy; Wikimedia Commons; Willdan, 2023

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3.0 Business & Investment Attraction Program
Existing Conditions
The City has identified several “Opportunity Sites” and target uses for urban infill redevelopment. In addition to several privately owned, disinvested and underutilized properties fronting Atlantic Avenue, there are six publicly owned “Successor Agency Sites” that the City is actively marketing for transition as envisioned by the General Plan Update 2040 and related zoning code revisions.

Figure 3: Cudahy Economic Development Element – P3 Opportunity Sites, 2022 Source: City of Cudahy; Willdan, 2023
The City Community Development Department is facilitating this development with a focus on preserving properties with frontage along Atlantic Avenue for future commercial or mixed-use residential over retail uses. This strategy is consistent with prior planning guidance to diversify the City’s tax base.

Table 3: Cudahy Long Range Master Plan Successor Agency Sites Site Name Type Acres Zoning
1 Elizabeth Street
Residential Property Other 0.94 HDR-G
2 Atlantic Ave/Santa Ana St
Commercial Property
Commercial/
V/O 1.02 CC HDR-G
3 Santa Anna St Residential
Property Vacant Land 1.35 CC HDR-G
4 Atlantic Ave/ Cecelia St
Commercial Property
Other/Vacant
Land 2.47 CC
5 Atlantic Ave/ Patata
Street Commercial
Property
Commercial/
V/O 2.1 CC
6 Atlantic Ave/ Clara St
Commercial Property
Commercial/
V/O 1.66 CC
TOTAL ACRES 9.54
1 Commercial/V/O = Commercial Buildings/Vacant Land/Other Source: City of Cudahy Long Range Property Management Plan; Willdan, 2023

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The private real estate development community has responded favorably to this policy guidance and is engaged in advancing development approvals for:
 Starbucks
 Sprouts
 42 Unit Apartment
Complex
 5 Unit Apartment Complex
 15 Unit Apartment
Complex
 50 New Townhomes
 Potential Casino
 Other Commercial &
Mixed-Use Developments
on Atlantic Avenue
Current market conditions are positive for housing development due to a chronic and critical lack of sufficient supply. The multifamily housing industry is advocating for new housing construction, financial and development tools to increase the volume of construction, reduce construction costs, and expand the diversity of funding sources and financing tools. The City has a clear role in partnering with the development community by facilitating development approvals and reducing development timetables – thereby mitigating risk and creating clarity for investors.

Recommendations
Commercial redevelopment directly supports both job creation and fiscal revenue generation through property and sales taxes.

Together with Initiative 1.0, Cudahy can accelerate commercial development activity within the Entertainment District by hyperfocusing limited resources on targeted business and investment attraction opportunities. Retailer voids identified within the regional market and community stakeholder input clearly indicate the need for high quality family entertainment, retail, and dining establishments. The following recommended action steps will ensure that the City is proactively marketing the Entertainment District’s sites to the development community.

Recommendations

3.1 Launch Business & Investment Attraction
Program

3.2 Build Relationships with Property
Owners and Developers

3.3 Track & Market Sites Available for
Development

3.4 Attend Conferences & Local Networking
Events (APA LA, ULI LA, ICSC LA)

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4.0 Community Preservation Program
Existing Conditions
The City of Cudahy’s current lack of focused economic development resources is a barrier to commercial redevelopment. The majority of the City’s existing businesses are small and independent retail and light industrial entities.

While the Cudahy’s City Council has established an important goal of protecting existing businesses from the potential negative impacts of redevelopment such as gentrification and displacement, there is not a formalized program to routinely conduct outreach as a mitigation measure.

Figure 4: Cudahy Community Outreach
Source: City of Cudahy, 2023
This role would also include responsibility for data collection, monitoring and reporting on business contacts, displacement risks, vacancies, and other small business needs. These activities include launching a formalized Community Preservation Program focused on providing licensing, code It is recommended that the City of Cudahy continue to expand its staffing resources to effectively manage the commercial development activity envisioned in the City’s General Plan.
violations, and relocation assistance. This initiative is an example of the importance of expanding the City’s existing organizational capacity by hiring a full-time Economic Development Manager responsible for business retention and attraction.

Recommendations

4.1 Launch Small/Independent
Industrial/Commercial Business Outreach
Program

4.2 Update Retail Inventory (Quarterly)

4.3 Launch Community Preservation
Program

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5.0 Quality of Life Investment Strategy
Existing Conditions
According to feedback provided by the Economic Development Survey and Community Workshop, City residents and businesses desire enhanced quality of life amenities in Cudahy. Existing conditions are illustrated by the following graphic detailing the 50 destinations for City of Cudahy residents. Only three of the top 50 destinations are located in the City limits: McDonald’s (#30), Clara Street Park (#37), and Cudahy Park (#47).

Figure 5: City of Cudahy – Top 15 Destinations, 2021-2022 Source: Placer.ai; Willdan, 2023
5 Spark and Strengthen Economic Prosperity Guiding Principle, General Plan 2040 Amenities like pedestrian walkability, retail/dining/family entertainment offerings, and other community gathering spaces are also important for cultivating a thriving business climate attracting and retaining new businesses of diverse types and sizes.5 The following recommendations will focus City Community Development resources on integrating important quality of life improvements into future commercial development activity along Atlantic Avenue and Citywide.

Recommendations

5.1 Integrate Community Quality of Life
Goals into Developer outreach materials

5.2 Promote Walkability/Mobility
Improvements

5.3 Facilitate development of neighborhoodserving businesses • Community gathering hub
• Pharmacy
• Hotel

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Figure 6: Project for Public Spaces: What Makes a Great Placemaking? City of Cudahy
Community Vision for
Quality of Life Amenities:
• Opportunities for Enhanced Sense of
Place
• New Locations for Sociability, Uses &
Activities, Comfort & Image, Access &
Linkages
• Latino Heritage Plazas and Squares
• Walkable/Bikeable Pathways Throughout
the City
• Family Entertainment:
o Outdoor Brew Pubs with Games
o Bowling with Pizza)
o Food Trucks
• Outdoor Markets
• Clean & Safe Parks & Recreation Facilities
• Public Wellness Offerings:
o Rooftop Decks,
o Native Plant/Biofilter Landscaping
o Community Gardening
o Drinking Fountains/Comfort Stations)
Source: Project for Public Spaces; Cudahy Economic Development Community Workshop, November 2022; Willdan, 2023 What Makes a Great Place?

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6.0 Major Projects Accelerator Program
Existing Conditions
The City of Cudahy has designated the Atlantic Avenue corridor as a priority redevelopment area. There is measurable demand for multifamily residential and family entertainment uses, especially when considering the future stations. It is expected that these opportunities will not move forward without attention and proactive facilitation by the City of Pleasanton.

The Community Development Department should work closely with the Office of the City Manager on such efforts to resolve barriers to redevelopment and ensure the City can capitalize on investment opportunities. The advancement of major projects within the Entertainment District are expected to generate substantial incremental tax revenues over time. These revenues are currently lost due to retail leakage and—if recaptured—could be used for needed operating and infrastructure funding that the City will require in the years to come.

Recommendations

6.1 Prioritize Infrastructure Investments
linked to Entertainment District
Development

6.2 Advocate for Metro Station Name
Change (Gateway Cities to
Southgate/Cudahy Station)

6.3 Explore Implementation Framework for
Local Trolley System with Neighboring
Jurisdictions

6.4 Explore Shared and Structured Parking
Solutions

6.5 Market Successor Sites
Market Support for Cudahy
Entertainment District
Net New Annual Spending Power (2028)
Restaurants Bars Entertainment
Southeast LA Submarket: $56.8 M
20-Minute Drive Time: $448.0 M

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Entertainment Destination Case Study:

SteelCraft
To provide the City of Cudahy’s elected leaders with an example of the type of redevelopment activity envisioned by the Economic Development Strategic Plan, following is a case study example of a recent successful dining and family entertainment project in Bellflower, California.

SteelCraft is an outdoor urban eatery set in a communal dining environment, completely constructed from repurposed shipping containers. The project is an excellent case study of City-led retail/dining/entertainment redevelopment.

According to SteelCraft, the business first opened in February 2017 and became a staple within the Bixby Knolls neighborhood of Long Beach providing craft coffee, beer, wine, craft food and dessert (breakfast, lunch, and dinner). Two additional locations in Bellflower and Garden Grove opened in 2019. SteelCraft has curated high quality craft food and drink vendors where people can “Shop Local” while accessing a variety of unique multinational products.

These vendors include:
 Off Duty Wine Bar
 Solid Coffee Roasters
 Burger Monster
 Tacos Arandas
 Ten Mile Brewing  Brown Cup Boba
The project opened for business in June 2019 after 18 months of planning and economic development support from the City of Bellflower.

Figure 7: Steelcraft Brewery, Bellflower, CA
Source: SteelCraft; Willdan, 2023
The development is estimated to generate $50,000 in annual sales tax and an additional $22,000 in annual lease revenue. Moreover, these eateries will add approximately 64-120 jobs to the Bellflower community.

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The following true trade area Figure 4 illustrates the powerful draw of creating an entertainment destination. The red shading represents the inflow of customer spending to the Cudahy Shopping Center.

In comparison, the blue shading represents the higher volume of inflow to the SteelCraft brewery and food hall in Bellflower.

Figure 8: Comparison of Retail Destination Inflow – Bellflower vs. Cudahy Source: Placer.ai; Willdan, 2023
This comparison illustrates the potential regional draw for family entertainment-anchored eating and drinking uses. Building materials reflect a relatively lower cost composition of shipping container metals, enhanced with contemporary community branding in bright colors and ample gathering spaces. This type of
retail/dining/entertainment product is a gap in the Cudahy market with sufficient evidence of existing pent-up demand to attract interest from investors/developers and entrepreneurial small businesses.

Figure 9: Community Gathering-Oriented Redevelopment, Bellflower, CA (2023) Source: SteelCraft Bellflower; Willdan, 2023

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III. Economic Development Funding Plan
Public Private Funding Tools
The City may consider evaluation of potential economic
development tools and strategies on a case-by-case or transactional basis. Figure 4 profiles the tools that are available for communities in supporting public-private projects, which are often most effective when utilized in combination. Definitions for each tool are provided below and context for how the City might utilize these tools to meet its goals.

Real Estate and Property
Publicly owned, underutilized real estate assets such as vacant land and buildings, underutilized storage sites, dormant parking lots, or other assets have substantial unrealized value. Governments can reimagine these properties and facilitate development in alignment with their goals through ground leases, property sales, or other arrangements with the private sector. Utilizing these existing assets can generate revenue for a city without raising taxes. This tool should be used once a city has created a database of its assets, assessed potential market value of public assets, explored scenarios for development, and estimated the revenue impact.

The City of Cudahy may consider discounting land in specific cases where the project meets public benefit goals while also demonstrating that the project is not financially feasible without external funding (“gap financing”).

Land Banking is an emerging and valuable tool for City-led urban infill redevelopment. The value of the City’s Successor Agency sites may be leveraged to provide gap financing for the City’s major projects.

The City should revisit these redevelopment objectives when evaluating development proposals on a case-by-case basis to identify specific projects that qualify for gap funding versus others that are financially feasible without public subsidy. These projects would generate a higher cash return to the City if sold at market value – funds that may be allocated to support other projects in need on Atlantic Avenue. Successful use of this tool would require requests for proposal (RFPs) from developers for action on these properties and City Council approval.

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Figure 10: Public-Private Funding Tools
Source: Urban Land Institute; Willdan, 2023

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Development Incentives
Development incentives can take the form of both monetary and non-monetary tools. Non-monetary incentives include supporting a development project through the entitlement and permitting process as a “concierge” program that offers issue resolution and/or expedited reviews.

Monetary incentives include the reduction, exemption, or waiver of Development Impact Fees and administration fees. Tax and revenue rebates can also serve as a type of development incentive and have been outlined in greater detail as a separate tool.

Development and administrative fees are important sources of revenue for cities to ensure they can pay for the review of documents and the infrastructure, facilities, and other capital improvements associated with new development.

However, reducing, waiving, or creating exemptions for these fees can help reduce cost barriers for developments that align with local government goals. These incentives are best used when a local government has determined which projects may qualify for fee 6 https://localhousingsolutions.org/housing-policy-library/reductions-in-impact-feesand-exactions/ reductions, exemptions, or waivers and have alternative funding sources to support the cost of infrastructure that the fees would cover.6
The City has already completed a Development Fee Impact study, which makes this a viable tool to support Cudahy’s goals. Successful utilization of this tool requires the formation of a new program to define qualifying projects, application procedures, City Council approval, and ongoing monitoring and reporting to City Council.

Special Assessment Districts
These are special-purpose governmental units that exist separately from local governments to meet specific community health, safety, or economic needs.7 Special districts are established by state statute, are governed by a board, and pay special taxes to cover the expenses of the services that are provided beyond what the local government provides.

Tourism and Business Improvement Districts (BIDs) are formed by private property owners and businesses who pay a special tax to provide services such as advocacy on behalf of businesses, 7 https://www.csda.net/special-districts/learn-about

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infrastructure improvements, landscaping, marketing, and planning.

These districts work best when local businesses in an area have been organized by a coordinating entity and are collectively interested in establishing a district and willing to pay additional fees for services.

This tool is recommended for mid- to long-term implementation within the Entertainment District as short-term implementation may place an unreasonable burden on small and independent local businesses.

Land Use / Zoning
Land use and zoning tools can be used to help offset the cost of development that align with City goals. These include the ability to build increased density, reduce site development standards, modify architectural design requirements, and reduce parking requirements can help offset the costs of development. These incentives are decided locally, and cities should weigh the costs and benefits of each tool when deciding which to offer for priority developments.

The City is well-positioned to utilize this tool to facilitate development as the zoning for the Entertainment District has already been established and other work for land use and zoning efforts have been completed or are underway. Successful utilization of this tool requires the development of a program to define qualifying projects and City Council approval.

Tax/Revenue Rebates
Cities can provide tax and revenue rebates to businesses as incentives for creating new jobs, moving into distressed neighborhoods, and enhancing the local economy. Businesses pay cities taxes (sales, use, payroll, etc.) and fees (administrative, utility, etc.), and a proportion of these can be refunded back to businesses for activities that cities wish to incentivize. Qualifying activities could include purchasing new equipment and business property, creating high-wage jobs, and/or creating and retaining jobs in specifically targeted industries.

Unique businesses and land uses such as casinos within Cudahy may be potential candidates for tax and revenue rebates. The City is only one of two in the state that has obtained a “roaming” casino license. Offering rebates would require the development of a new program that defines project eligibility; application, approval, and administration processes; and City Council approvals. Given the City’s prioritization of fiscal resiliency, the costs and benefits of utilizing this tool should be considered prior to program development.

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Public Private Partnership Delivery Methods
Public Private Partnerships (P3) are cooperative arrangements between public and private sector entities to construct public assets.

Delivery methods are the arrangements that P3 partners make to share responsibilities and risks such as project ownership, financing, design, construction, operation, and maintenance between each other.

Figure 5 highlights a range of delivery methods, demonstrating various stages of increasing private involvement and private sector assumption of risk.8

P3s are most often used on large, complex public works and development projects with extended timelines and where there’s a shortage of public funding. Use of this tool requires City capacity to identify, negotiate, and coordinate with a private sector partner. It also requires identification of a large project best suited for the P3 model in which the benefits outweigh the costs for both the City and the private sector partner.

Figure 11: Public-Private Partnership Delivery Methods
8 https://www.cacities.org/UploadedFiles/LeagueInternet/34/3483b09d-78d8-4fe1- b2e3-4e57c01af646.pdf
Source: League of California Cities; Willdan, 2023
Community Revitalization and Investment Area (CRIA) /
Enhanced Infrastructure Financing Districts (EIFDs)
Community Revitalization and Investment Authorities (CRIAs) and Enhanced Infrastructure Financing Districts (EIFDs) were created by the California Legislature from 2014-2015 to enable new models for financing infrastructure, affordable housing, and economic development in the state. The statutes allow cities and counties to form districts governed by a board or Public Financing Authority and use Tax Increment Financing (TIF)9 to finance qualifying projects. 9 TIF works by freezing property tax revenues at the “base level” of a designated project area. Additional tax revenue created in future years due to anticipated redevelopment and investment in the area (the “increment”) is diverted into a

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CRIAs focus on the production of affordable housing in areas that meet criteria for disadvantaged communities such as neighborhoods with high unemployment or crime rates, deteriorated infrastructure, and/or significantly lower median household income.10 CRIAs have an affordable housing set aside of 25% and have eminent domain powers. Eligible projects include civic infrastructure, mixeduse/affordable housing, business assistance, environmental remediation, roads/circulatory infrastructure, and
wastewater/groundwater.

EIFDs fund infrastructure, housing, economic development, climate adaptation projects, and other uses. All housing developed in EIFDs must be affordable.11 Eligible projects include industrial structures, mixed-use/affordable housing, Transit projects,
wastewater/groundwater, civic infrastructure, parks and open space, environmental remediation, childcare facilities, libraries, roads and bridges.
separate pool of money that can be used to pay for improvements or pay back financing issued against the anticipated TIF revenue.
10 https://scag.ca.gov/post/community-revitalization-and-investment-authority-cria 11 https://scag.ca.gov/post/enhanced-infrastructure-financing-district-eifd 12 https://ibank.ca.gov/
These tools each have their own specific requirements. To utilize them, the City generally must meet eligibility criteria, create a board or Public Financing Authority, develop plans for specific projects and funding, notify/engage residents in the process, and gain City Council approval.

State and Federal Grants / Funding
The state of California and federal government agencies offer numerous funding tools that can be layered into the capital stack of a project. State funding tools include the California Infrastructure and Economic Bank (IBank),12 Affordable Housing and Sustainable Communities Program (AHSC),13 and the CalHome Program.14 The state also has a searchable database of grants available based on category.15
Federal funding ranges broadly from business financing to direct funding for local governments for infrastructure and community and economic development. Tools can include Community
13 https://www.hcd.ca.gov/grants-and-funding/programs-active/affordablehousing-and-sustainable-communities 14 https://www.hcd.ca.gov/grants-and-funding/programs-active/calhome 15 https://www.grants.ca.gov/

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Development Block Grants (CDBG),16 Opportunity Zones,17 New Market Tax Credits,18 Small Business Administration Loans,19 and EB-5 Immigrant Investor Program.20 Federal funding is also available for local governments and regional collaborations through numerous programs created by the Investment Infrastructure and Jobs Act/Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act.

Philanthropic organizations also offer funding for place-making infrastructure in public spaces. An example of this type of funding is the Knight Foundation’s Community Grant Program in Long Beach, CA. The funding is used to connect people to the places where they live and to the public life of the community through the design, construction, and programming of inclusive and equitable public spaces.21
Each state, federal, and philanthropic funding mechanism has specific eligibility and reporting criteria that should be evaluated to 16 https://www.hud.gov/program_offices/comm_planning/cdbg 17 https://www.irs.gov/credits-deductions/businesses/opportunity-zones 18 https://www.cdfifund.gov/programs-training/programs/new-markets-tax-credit 19 https://www.sba.gov/funding-programs/loans
20 https://www.uscis.gov/working-in-the-united-states/permanent-workers/eb-5- immigrant-investor-program
determine fit on a project-by-project basis. Use of these funding sources also requires City capacity to identify, apply for, and manage funds.

Property Assessed Clean Energy (PACE)
This model is used for financing energy efficiency and renewable energy improvements on private properties. PACE uses borrowed capital from public or private funds to pay for upfront costs on qualifying improvements, the local government places a property tax assessment secured with a lien on the property, and the property owner pays for the completed work via the assessment, and repayments are remitted back to the lender.22
PACE statutes are enabled at the state level, and local governments provide further authorization of the program. The industry is trending towards more standardized programs administered by third-party entities and a spectrum of involvement by local governments exists.23 This tool is best used in alignment with a city’s 21 https://knightfoundation.org/programs/communities/
22 https://www.energy.gov/sites/prod/files/2017/10/f39/FL1710_WIP_CPACEv2.PDF 23 https://www.energy.gov/scep/slsc/property-assessed-clean-energy-programs

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energy efficiency/renewable energy goals and when local governments have adequate resources to ensure legal and administrative set up for the program.

The State of California created the Commercial Property Assessed Clean Energy (C-PACE) program to encourage commercial,
industrial, and multi-family property owners to finance energy efficiency and renewable energy improvements through their property tax payment. Note that CRIAs and EIFDs can combine tax increment with PACE funding to further reduce capital cost outlays.

The PACE program can assist with energy efficiency goals but is not expected to attract major investments in Cudahy’s Entertainment District or further the City’s future vision and brand identity. Table 4 provides an overview of each tool in the context of redevelopment targets in Cudahy’s emerging Entertainment District.

Joint Powers Authorities
These agreements allow two or more public agencies to join together and provide more effective or efficient government services (i.e., redevelopment projects, regional transportation projects, etc.). Public agencies can either contract to jointly exercise common powers or form a separate legal entity. The new entity has independent legal rights including the ability to enter into contracts and hold property.

JPAs in California are governed by state Government Code section 6500 and are formed when public agencies enter into agreements that state the powers of the JPA and how those powers will be exercised. The governing bodies of all public agencies involved must approve the agreement for a JPA to be formed.

To note, precedent exists for Successor Agencies to form a JPA for redevelopment purposes (i.e., to pool resources, coordinate redevelopment efforts, and eliminate redundant or overlapping services to reduce local government costs). JPAs can also obtain more favorable rates or bids from outside services to achieve economies of scale.

Use of this tool requires identification of and coordination with a partner jurisdiction in alignment with the City’s goals, capacity to negotiate an agreement, and City Council approval of the agreement. This tool is not considered a primary target by the City of Cudahy due to the desire to maintain autonomy over the City’s decision-making authorities and funding priorities. This tool may prove useful at some point in the future in cases where a regional approach to transportation infrastructure would clearly benefit the City’s interests.

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Table 4: Cudahy Public-Private Funding Tools Rankings
Rank Tool Description Opportunities/Constraints For Use 1 Real Estate &
Property
• Cities can reimagine publicly owned properties and facilitate development in line with their goals through ground leases, property sales, land banking, and other arrangements with the private sector
• Used once a city has created a database of its assets, assessed the potential market value of public assets,
explored scenarios for development, and estimated the
revenue impact
• Successor sites already identified
• Requires RFPs for action on property and City Council approval
2 Land Use/Zoning • Allow target developments ability to build increased density, reduce site development standards, modify architectural design requirements, and/or reduce parking requirements • Decided locally, weigh costs and benefits of each tool when deciding which to offer for priority developments
• Zoning of entertainment district already established, other work for land use/zoning completed or underway
3 Development
Incentives
• “Concierge” entitlements and permitting provides nonmonetary incentives; reduction of Development Impact Fees is a form of monetary incentive
• Best used when local government has determined which
projects may qualify for fee reductions, exemptions, or waivers and have alternative funding sources to support the cost of infrastructure that the fees would cover
• Requires City Council approval on a case-by-case basis and formation of a new program defining qualifying
projects, application procedures, and ongoing
monitoring and reporting to City Council
4 Tax/Revenue
Rebates
• Businesses pay cities taxes and fees, and a proportion of these can be refunded back to businesses for qualifying activities that cities wish to incentivize
• Fiscal resilience is a primary concern for the City;
rebates may not provide meaningful reimbursement to
close project gaps in the near- to mid-term
5 State, Federal,
and Philanthropic
Funds
• State, federal, and philanthropic entities have numerous funding mechanism available, and each has specific eligibility and reporting criteria that should be evaluated to determine fit on a project-by-project basis
• Requires capacity to apply for and manage grant funds • Projects must align with funding eligibility requirements and some programs require matching funds
6 P3 Delivery
Methods
• Arrangements that P3 partners make to share responsibilities and risks such as project ownership, financing, design, construction, operation, and maintenance between each
other
• Best suited for large, long-term projects
• City capacity needed to identify/ negotiate/coordinate with private sector partner, and private sector benefit that outweighs risk

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Rank Tool Description Opportunities/Constraints For Use 7 Special Districts • Formed by private property owners and businesses who pay a special tax to provide services such as advocacy on behalf of businesses, infrastructure improvements, landscaping, marketing, and planning
• Work best when local businesses in an area have been
organized and are collectively interested in establishing a district and willing to pay additional fees for services • Need local business support and willingness to pay
additional fees, and an organizing entity
• Recommended for mid- to long-term implementation
within Entertainment District as short-term
implementation is expected to place an unreasonable
burden on existing small and independent local
businesses
8 CRIA • Type of regional multi-jurisdiction Tax Increment Financing (TIF) focused on affordable housing
• Eligible projects include: civic infrastructure, mixeduse/affordable housing, business assistance, environmental remediation, roads/circulatory infrastructure, and
wastewater/groundwater
• Must meet disadvantaged eligibility criteria,
demonstrate need and bond servicing requirements,
create 5-person board.
• No voter approval required for formation or bond
issuance; however, plan adoption is subject to one-time majority protest
9 EIFD • Type of Tax Increment Financing (TIF) focused on infrastructure and public/private partnership development • Eligible projects include Industrial structures, mixeduse/affordable housing, Transit projects, wastewater/groundwater, civic infrastructure, parks and open space, environmental remediation, childcare facilities, libraries, roads and bridges
• Must create 5-person Public Financing Authority and
develop District’s Infrastructure Financing Plan (IFP), which outlines the specific projects the District will fund 10 Joint Powers
Authorities
• Agreements allow two or more public agencies to join to provide more effective or efficient government services such as redevelopment and regional transportation projects
• New entity has independent legal rights including the ability to enter into contracts and hold property
• Requires coordination among Cudahy and outside
partner jurisdiction(s), negotiation, and City Council
approval of agreement
• Precedent exists for Successor Agencies to form a JPA for redevelopment purposes
11 PACE • Used for financing energy efficiency and renewable energy improvements on private properties
• Best used in alignment with a city’s energy
efficiency/renewable energy goals and when local
governments have adequate resources to ensure legal and administrative set up for the program
• Can assist with energy efficiency goals but is not
expected to attract major investments in Cudahy’s
Entertainment District or further the City’s future vision and brand identity
Source: City of Cudahy; Urban Land Institute; Willdan, 2023

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Part I: Implementation & Funding Plan I-30
Next Steps
Performance Metrics
In the early years of Economic Development Strategic Plan (EDSP) implementation, it is typical for performance metrics to be limited to variables tied to readily available data.

Going forward, performance targets should expand to evaluate annual progress against goals defined by each economic
development recommendation (i.e., increases or decreases in values according to a baseline year benchmark).

Given that the majority of the recommended performance indicators are aspirational at this time, it is reasonable to assume that each variable is starting at zero and that the target of each variable is to increase over the next five to ten years upon adoption of the EDSP.

Table 5: EDSP Performance Metrics
Top 15 Performance Metrics Targets by Economic Development Recommendation

1.0 Internal Capacity Building Initiative 4.0 Small Business Support Program 1: # of Planning & Economic Development Resources (FTEs) 10: # of New Business Licenses Approved for Minority, Women-Owned & Disadvantaged Business Owners
2: # of Formal Strategic Partnerships (Neighboring Jurisdictions, Regional Organizations) 11: # of Small Business Outreach Touchpoints

2.0 Community Identity/Branding Program 5.0 Quality of Life Initiative 3: # of new projects adhering to established architectural guidelines 12: $ Value of Walkability/Mobility Improvements 4: # of new projects including placemaking improvements 13: # of New Neighborhood-Serving Businesses (Community Gathering Sites, Hotel, Pharmacy)
5: # of Examples of City Identity Initiatives Achieved

3.0 Business & Investment Attraction Program 6.0 Major Projects Accelerator Program 6: Tax Base Value ($) 14: $ Value of Private Construction Investment 7: # of New Business Licenses 15: Sq. Ft. of New Entertainment District Commercial Development
8: # of Housing Starts
9: # of Target Business/Developer contracts established 1 Proposed Economic Development Strategic Plan performance metric targets are planning factors subject to change according to the City's economic development priorities and resource availability.

Source: City of Cudahy; International Economic Development Council; Willdan, 2023

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Part II – Demographic & Economic Profile Report Part II – Demographic & Economic Profile Report II – 0 Draft: August 2023
City of Cudahy, CA
Economic Development Strategic Plan 2023

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Part II – Demographic & Economic Profile Report II – 1
Part II: Demographic & Economic Profile Report
I. Community Change & Growth
Population
Table 6 presents historical and projected population estimates for Cudahy, Bell, Bell Gardens, Huntington Park, Maywood, and South Gate.

South Gate has the largest population among the comparison jurisdictions. Cudahy ranks the lowest in population totals compared to the surrounding jurisdictions. However, as a one-square mile city, Cudahy has the densest population in the region.

According to Esri, Cudahy and its surrounding jurisdictions have experienced a slight population decline since 2000 and are projected to continue to decline through 2028.

Cudahy has and is projected to continue to experience a population decrease, but at a slower rate than all other surrounding jurisdictions averaging a -0.21% decrease from 2023 to 2028.

Table 6: Population Growth Trends, Cudahy & Neighboring Jurisdictions, 2023-2028 Population 2023 2028
Projected Net
Change
Cudahy 22,613 22,514 -231
Bell 32,976 32,309 -667
Bell Gardens 38,628 37,850 -778
Huntington Park 50,051 53,113 -938
Maywood 24,668 24,243 -425
South Gate 91,872 90,472 -1,400
TOTAL 260,808 260,501 -4,439
Source: Esri Business Analyst; Willdan, 2023
Notably, Esri calculates population growth projections based on multiple economic indicators including historical housing starts.

California out-migration, existing housing shortage, and cost of living are contributing factors to this trend.

Cudahy’s projected declining population assumes no change in planning interventions like such as the City of Cudahy’s new Entertainment District designation and urban infill housing development.

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Part II – Demographic & Economic Profile Report II – 2
Figure 12: Estimated and Projected Population Growth, 2000-2028 Source: ESRI Business Analyst; Willdan, 2023
70%
80%
90%
100%
110%
120%
130%
140%
150%
2000 2010 2023 2028
Cudahy Bell Bell Gardens
Huntington Park Maywood South Gate

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Part II – Demographic & Economic Profile Report II – 3
Household Growth and Size Characteristic
According to the US Census Community Survey and data
reported by ERSI Business Analyst, Cudahy ‘s population is not projected to grow between 2023 to 2028. These
projections are based on historical building permit data and other factors.

Cudahy can manage future growth by facilitating and
accelerating mixed use multifamily housing construction that would eventually surpass the US Community Survey’s
projections.

Table 7: Household Growth Trends, 2023-2028
Number of
Households 2023 2028
Projected Net
Change
Cudahy 5,737 5,739 2
Southeast LA 70,656 70,133 -523
LA County 3,427,635 3,453,233 25,598
Source: ESRI Business Analyst; Willdan, 2023
Cudahy’s average household size continues to be relatively higher than Southeast LA and LA County at 3.94 versus 3.73 and 2.85, respectively.

This metric is highlighted in Cudahy’s Regional Housing Needs Assessment as an indicator of overcrowding and an opportunity for improvement.

Figure 13: Average Household Size (Persons Per Household) Source: ESRI Business Analyst; Willdan, 2023

3.94 3.73

2.85 0.00

0.50 1.00

1.50 2.00

2.50 3.00

3.50 4.00

4.50 Cudahy Southeast LA LA County

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Age Characteristics
Cudahy is home to predominantly working-age residents and their children. Nearly 42% of Cudahy’s population is aged 25 to 54, with an additional 43.4% of residents who are 24 and younger. Only 7% of Cudahy’s population is of retirement age (65 years or older). On average, the comparison jurisdictions reported 40% of residents who are high school age or younger. Figure 8 compares the age distribution for each of the geographies examined in this analysis.

Figure 14: Age Distribution by Cohort, 2023
Source: ESRI Business Analyst; Willdan, 2023 8.5%

16.6%

8.6%

9.6%

41.9%

7.8%

7.0%

8.2%

16.4%

8.2%

8.4%

42.0%

8.5%

8.3%

8.5%

16.8%

8.2%

9.1%

41.8%

7.9%

7.9%

7.7%

16.0%

7.8%

8.4%

42.4%

8.2%

8.5%

9.2%

17.0%

8.1%

8.5%

42.4%

7.7%

7.5%

8.0%

15.7%

7.7%

8.2%

42.0%

8.8%

9.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%
0-4 (Pre-K) 5-14 (Elem./MS) 15-19 (HS) 20-24 (Coll.) 24-54 (Prime WF) 55-64 (Late Career) 65+ (Retired) Cudahy Bell Bell Gardens Huntington Park Maywood South Gate

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Part II – Demographic & Economic Profile Report II – 5
Household Income
Household income is an important factor in mixed-use
retail/dining/entertainment and multifamily investment attraction.

Prior to inflation and interest rate pressures, the target threshold for median household incomes was $75,000 per year.

Household income distributions indicate higher concentrations of lower and middle-income households within Cudahy and its neighboring jurisdictions (Figure 12). Cudahy has the second lowest median household income among the comparison jurisdictions, Bell Gardens being the lowest median household income. Higher income households are more concentrated in South Gate and Maywood, compared to Cudahy. However, the projected net change in household incomes within the Southeast LA submarket is expected to generate substantial incremental retail spending power to support new Entertainment District businesses. Taken as a whole, the Southeast LA submarket is a powerful driver of demand for the City of Cudahy’s target retail/dining/entertainment uses.

Figure 15: Projected Net Change in Median Household Income (2023 to 2028) Source: ESRI Business Analyst; Willdan, 2023 $51,563
$53,547
$50,872
$52,854
$55,779
$61,658
$6,041 $6,633 $5,739
$7,769 $7,969
$10,028
$57,604
$60,180
$56,611
$60,623
$63,748
$71,686
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
Cudahy Bell Bell Gardens Huntington Park Maywood South Gate 2023 2028

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Population by Race
Among all comparison jurisdictions Hispanic residents make up the majority of the population. Residents of Hispanic origin make up over 90% of the population in Cudahy, Bell, Bell Gardens, Maywood, and Huntington Park. Huntington Park also has residents consisting primarily of either Hispanic, White or “Other.” Figure 16: Population by Race1, 2023
1 Persons of Hispanic origin are a subset of other race categories; therefore, totals do not add. The category labeled "Other Race" Includes the Census Categories "Indian American", "Pacific Islander", "Some Other Race Alone" and "Two or More Races" which individually represent a small percentage of the City's and County's population.

Source: ESRI Business Analyst; Willdan, 2022 16.0% 0.9%

3.1%

0.8%

0.2%

61.0%

18.0%
96%

17.9%

0.5%

2.6%

0.8%

0.1%

55.7%

22.3%
94%

13.7%

0.7%

3.2%

0.7%

0.1%

62.4%

19.3%
96%

14.2%

0.8%

2.8%

0.7%

0.1%

61.5%

19.9%
97%

12.9%

0.6%

2.8%

0.4%

0.0%

61.7%

21.6%
97%

14.9%

1.1%

3.4%

0.8%

0.1%

57.7%

22.0%
26%
0%
20%
40%
60%
80%
100%
120%
White Black Amer. Indian/AK
Native
Asian Pacific Islander Other Race Two or More
Races
Hispanic Origin
Cudahy Bell Bell Gardens Huntington Park Maywood South Gate

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Housing Value and Tenure Characteristics
The share of homeowners compared to renters has generally decreased in Cudahy and Los Angeles County since 2010, while the share of homeowners has remained relatively constant in the Los Angeles MSA. Cudahy has the lowest share of homeowners
compared to the other two geographies, and it is projected to decrease further through 2028. The Los Angeles MSA has the highest projected share of homeowners among the geographies identified with 49.1% of homes projected to be owner occupied by 2027.

Figure 17: Housing by Tenure
Source: ESRI Business Analyst; Willdan, 2023 18.0% 14.1%

14.8%

32.8%

31.5%

32.6%

47.7%

46.1%

46.4%

82.0%

85.9%

85.2%

67.2%

68.5%

67.4%

52.3%

53.9%

53.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2023 2028 2010 2023 2028 2010 2023 2028
Cudahy Southeast LA LA County
Owner Occupied Renter Occupied

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Part II – Demographic & Economic Profile Report II – 8
The lower rates of homeownership in Cudahy can be partially attributed to the low median age as younger households are more likely to own than rent their homes. It can also be attributed to the affordability of housing in Cudahy compared to both the County and the region as rising housing prices make homeownership less attainable for residents.

Figure 16 presents a comparison of current median housing value in Cudahy, Los Angeles County, and the Los Angeles MSA. The median value in Cudahy is approximately $171,000 below the County and $194,000 less than in the MSA.

Fix
Figure 18: Median Housing Value, 2023
Source: ESRI Business Analyst; Willdan, 2023 $514,757 $576,490 $792,145
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Median Value
Cudahy Southeast LA LA County

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Part II – Demographic & Economic Profile Report II – 9
Educational Attainment
Cudahy’s educational attainment levels are similar to comparison jurisdictions, except for Huntington Park and South Gate. Of Cudahy’s population aged 25 and older, 8% have a bachelor’s degree or higher, and over 25% are high school graduates or GED recipients.

Cudahy, Bell Gardens and Maywood had the lowest shares of residents with bachelor’s degrees or graduate or professional degrees and have a significant proportion of residents without a high school diploma.

Figure 19: Population 25+ Years by Educational Attainment, 2023 Source: ESRI Business Analyst; Willdan, 2023
0%
5%
10%
15%
20%
25%
30%
35%
South Gate Huntington Park Maywood Bell Bell Gardens Cudahy

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Part II – Demographic & Economic Profile Report II – 10 Fiscal Resiliency Assessment
The City’s General Fund revenue is primarily reliant upon General Fund Taxes, Intergovernmental Revenues, and Licenses and Permits, which account for 86% of total General Fund revenue.

Table 7 shows the total revenue contributing to the General Fund by source and dollar amount and demonstrates the diversity of the City’s revenue streams.

Over the last four years, licenses and permits have become the largest source of revenue. This growth is driven by new business development and operations, particularly in urban farming.

General Fund Taxes, which include Sales Tax, have decreased moderately during the same period due to population changes and resident spending moving outside City limits.

Table 8: General Fund Revenue
General Fund Revenue
Revenue Source FY19/20 FY20/21 FY21/22 FY22/23
General Fund Taxes $3,830,413 $3,725,383 $3,362,720 $3,441,700 Intergovernmental
Revenues $3,287,469 $3,549,258 $3,210,998 $3,187,964
Licenses & Permits $1,032,736 $2,595,205 $2,319,100 $3,593,999 Fines & Forfeitures $153,076 $164,380 $86,500 $181,500
Building & Safety $525,499 $322,977 $373,000 $292,000
Use of Money &
Property $1,100,698 $99,939 $132,500 $101,500
Charges for ServicesPlanning,
Engineering
$285,706 $217,901 $239,000 $182,000
Charges for ServicesMisc. $77,986 $5,036 $50,300 $114,000 Other Revenues $351,530 $261,098 $87,000 $732,500
TOTAL REVENUE $10,645,114 $10,941,177 $9,861,118 $11,827,163 Change in GF
Revenue $296,063 -$1,080,059 $1,966,045
Source: City of Cudahy Budget Fiscal Year 2022-23; Willdan, 2023 The City’s intentional efforts to attract new
retail/dining/entertainment business activity
within Atlantic Avenue’s emerging Entertainment
District will recapture and grow future General
Fund Tax revenues

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Part II – Demographic & Economic Profile Report Part II II – 11 I – Real Estate Market Analysis Draft: August 2023
City of Cudahy, CA
Economic Development Strategic Plan 2023

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Part III: Real Estate Market Analysis III – 1
Part III. Real Estate Market Analysis
I. Redevelopment Constraints & Opportunities
Executive Summary
As a key Gateway Community of Los Angeles County, the City of Cudahy’s real estate market holds potential for complementary uses that better meet the vision of the City and serve the community. To evaluate the market demand for all uses, Willdan reviewed readily available economic and market data for the City of Cudahy and the larger submarkets the City falls within. Interviews with local and regional real estate brokers, economic development entities, and civic/cultural representatives were also conducted.

The market study revealed a number of unexpected opportunities for the City of Cudahy within the regional market that would serve to attract new businesses to the Entertainment District and generate new tax revenues:

Cudahy is Primarily a Bedroom Community
The City is not currently an importer of jobs for residents from throughout the region. Currently, 97% of those who are employed and live in Cudahy travel outside of the City for work. To diversify the tax 24 https://www.hcd.ca.gov/housing-elements/docs/cudahy-6th-draft101521.pdf base, Cudahy must evolve from serving as a bedroom community to a competitive employment center in the region.

Weak Industrial Sector
The City's industrial businesses are not contributing to the City’s economic base. The City’s rezoning of industrial land to Entertainment District uses will trigger redevelopment activity adjacent to underutilized and disinvested industrial properties. These existing businesses should be evaluated on a property-by-property basis for code and licensing violations as part of a targeted Business Retention & Expansion Program. Special consideration should be given to nonconforming business operations to mitigate the threat of displacement and gentrification.

Emerging Multifamily Development
Multifamily residential development activity is occurring on its own.

Public support for future residential development should focus on attracting new urban infill mixed-use product to meet the City’s Regional Housing Needs Assessment (RHNA)24 targets and the scale, quality, and character of new product according to the General Plan Update 2040.25
25 https://www.cityofcudahy.com/DocumentCenter/View/216/Cudahy-General-Plan2040-PDF

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Entertainment District Infill Opportunities
Cudahy is well-positioned in a powerful regional market with strong spending power. The area also demonstrates substantial demand for a variety of retail, dining, and entertainment options. However, existing options within Cudahy and $65 million in retail leakage indicate that residents primarily spend outside City limits to meet their needs. This strong spending power and local demand create near-term opportunities to attract, grow, and support various
retail/dining/entertainment users within the Entertainment District. The SteelCraft brewery in Bellflower represents a model for how the City can support unique infill opportunities to make the Entertainment District a destination hub for residents and surrounding communities. 26 https://www.cushmanwakefield.com/en/united-states/insights/us-articles/medtailwhen-healthcare-meets-retail Office/Medical Office Development
Cudahy is not considered a high-value office market location, and office development is even less likely within the current post-Covid office market conditions where work from home policies have upended the economics of speculative office development.

With a focus on the potential synergies of proximity to the regional Kaiser Permanente Medical Center and emerging “Med-Tail” development26, medical office product is considered a longer-term opportunity and tied to availability of commercial space at a price point that will support the high fit out costs of investment grade medical space users.

In the future, disinvested/underutilized commercial shopping centers may offer opportunity for redevelopment and reuse for medical office.

This strategy would be further strengthened by outreach and marketing.

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Entertainment District Growth Supports Hotel Development The City is leading an intentional transition from disinvested industrial uses to destination Entertainment District uses. Over the long term, this strategy will support new hotel demand along Atlantic Avenue as the City’s primary commercial corridor with excellent visibility and traffic counts (midscale class, 100-150 keys, 2-4 stories).

These real estate market findings are further supported by the General Plan’s guidance. The specific Entertainment District properties with the highest likelihood of attracting near-term investment and redevelopment activity will be those with sufficient land capacity, environmental approvals, and an identifiable and willing seller.

The City’s role in catalyzing the targeted redevelopment envisioned by the new Zoning Code is tied to these foundational elements that will be further addressed in the Retail Redevelopment Strategy’s policy and program recommendations.

The following table provides a summary of these market findings according to data and input provided by the City of Cudahy Community Development Department, Urban Land Institute (ULI), Lee & Associates (commercial brokers), and research collected by Willdan Financial & Economic Consulting Services from May 2022 through June 2023.

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Table 9: Atlantic Avenue Commercial Market Opportunities 2024-2028 Sector Atlantic Avenue Market Opportunity Developer Requirements

MULTIFAMILY
2 to 3 mixed-use multifamily buildings over the
next 5-7 years
low-income and market rate workforce housing
product
Neighborhood Infill typology
(25-120 units per property, 2-5 stories)
1 to 5 acres per project
Street frontage and rear-access parking
Structured parking likely requires public subsidy

DESTINATION RETAIL/

ENTERTAINMENT
Substantial retail leakage identified; near-term
opportunity for a variety of regional familyoriented retail/dining/entertainment uses:

Dining, sports arena, gambling, bowling alley,
jump zone, fast casual dining (sit-down pizza),
community gathering (brewery)
1 to 2 acres per project
Approx. 5,000-10,000 Sq Ft per tenant
High visibility locations & intersections along Atlantic Avenue

MIXED-USE

RESIDENTIAL
Ground-floor mixed-use residential over retail will
occur on a site-by-site basis over the next five
years
Multifamily building retail uses require
1,000 - 5,000 Sq Ft per tenant

MEDICAL
OFFICE
Outpatient facility is possible if aligns with
expansion needs of nearby regional medical
center systems (i.e., Kaiser Permanente Cudahy
Medical Offices)
20,000 - 30,000 Sq Ft
2 stories
High visibility locations & intersections
along Atlantic Avenue
HOTEL 1 new hotel in the next 5-10 years

1.5 to 4 acres per project
Midscale class (100 -150 keys, 2-4 stories)
High visibility locations & intersections
along Atlantic Avenue
Source: City of Cudahy; ULI-the Urban Land Institute; Lee & Associates; Willdan, 2023

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Methodology and Approach
Willdan collected demographic and economic data from June through November of 2022 from a variety of industry standard software subscription licenses to evaluate trends and projections using a baseline of the year 2021. The study also relies on client provided background reports, studies, data, and individual market research interviews.

Geographic Information Systems (GIS)
This analysis is informed by geographic information systems (GIS) data in several ways. Spatial data was collected for each District where available, including from ESRI Business Analyst, CoStar and Placer.ai. A description of these proprietary data sources is provided below.

ESRI Business Analyst
ESRI Business Analysis (www.bao.arcgis.com) was used to collect data for several purposes within this analysis. It was primarily used to obtain demographic and economic indicators for each of the comparison cities. The platform aggregates data from a variety of 27 https://www.hcd.ca.gov/housing-elements/docs/cudahy-6th-draft101521.pdf sources, including the US Census’ American Community Survey, Bureau of Labor Statistics, and other proprietary sources.

CoStar
CoStar (www.costar.com) is a commercial real estate data aggregator that provides real-time analytics for retail, multifamily, office and industrial properties. Willdan accessed CoStar on or before February 2023 to identify market indicators for rents, lease rates, sales, vacancy and absorption.

Placer.ai
Placer.ai (www.placer.ai) is a new web-based tool that provides analysis of consumer behaviors based on anonymous cell phone data. Willdan relied on Placer.ai data to define the “true trade areas,” customer journey patterns, and leakage for
retail/dining/entertainment uses.

Regional Housing Needs Assessment
The City of Cudahy 6th Cycle Housing Element Update27 is a required element of the City’s General Plan. The update covers the time period from October 15, 2021, to October 15, 2029, and includes the Regional Housing Needs Assessment (RHNA) – the measure of Cudahy’s share of regional housing needs in comparison

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to what has already been achieved in meeting those needs. While the Housing Element includes community demographics, programs, and ‘quantified objectives’ to guide the City’s development through 2029, the EDSP’s Economic Development Briefing Book provides custom trends and projections for the year 2023 through 2029 specific to the City’s broader economic development objectives.

Existing Conditions
Location
The City of Cudahy (“the City”) is centrally located at the southeastern gateway into the thriving Los Angeles regional market with substantial regional population density and associated spending power. In area, Cudahy is the second smallest city in Los Angeles County with one square mile of area, but with one of the highest population densities of any incorporated city in the United States.

Cudahy is bordered by the Cities of Bell (north), Bell Gardens (east), South Gate (south and southwest), and Huntington Park (west).

Cudahy offers exceptional transportation access for industry as a “Gateway City” located south of the Los Angeles BNSF rail yard, the confluence of I-710 and I-5/I-105, and north of the Southgate Diamond Railroad Crossing.

With intentional urban infill redevelopment activity, the City of Cudahy can attract new businesses to the City’s
retail/dining/entertainment district and capture a greater “fair share” of regional spending.

Development History
The City was incorporated in 1960, nearly 52 years after Mr. Michael Cudahy, a local cattle rancher, acquired the original 2,777 acres from the larger Ranch San Antonio and subdivided the land into long and narrow “Cudahy lots” approximately 50-100 feet wide and 600-800 feet long.

Cudahy is primarily a bedroom community of low density attached single family housing units stacked horizontally within the Cudahy lots and accessible by the City’s primary commercial corridor – Atlantic Avenue.

Over the years, Cudahy grew into a home for multiple generations of Mexican American families with more than 93% of residents speaking Spanish at home today.

Physical Characteristics
Atlantic Avenue, the City’s primary commercial corridor located south of E. Florence Street and north of Patata Street, is characterized as fragmented, deteriorated, and blighted.

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The northern half of the City has evolved into a mix of disinvested neighborhood-serving retail plazas. The southern half of the City is challenged by low-intensity, non-conforming industrial uses including truck storage, auto body repair, and other light industrial businesses. The existing conditions of Atlantic Avenue as the City’s primary commercial, tax generating corridor are considered both an opportunity and a threat.

In comparison, the City of Southgate located just across the southern City boundary has successfully attracted several large, big box retailers after more than 20 years of planning the Azalea shopping center. There is evidence of retail leakage by Cudahy residents who leave the City’s boundaries for a variety of retail/dining/entertainment venues currently not available at home.

Legal & Regulatory Overview
Through a series of planning initiatives from 2018 to 2022, the City of Cudahy identified the need to focus community and economic development resources on the revitalization of Atlantic Avenue as the City’s primary tax generator. These efforts include:
 City of Cudahy General Plan 2040 & Economic Development Element (Adopted 2018)
 Zoning Code Revision (2023-2024)
 Development Impact Fee Update (2021)
 City of Cudahy 6th Cycle Housing Element Update (October 2021)
 City of Cudahy Strategic Plan (2022)
 Architectural Design Guidelines (2024)
Taken together, this policy guidance illustrates the progression from reactive to proactive planning with a focus on implementation.

The City is also in the process of expanding staff resources to administer increased development activity. To date, the City has increased full-time staff from 5 to 50 FTEs and reorganized internal staff departments to house planning and zoning, economic development, and community redevelopment functions under one umbrella in the Community Development Department. The City’s resources have been expanded to implement the City’s priority planning initiatives and diversify the City’s tax base through commercial redevelopment and new business attractions.

Zoning Considerations
As one notable example, the City rezoned the southern half of Atlantic Avenue from light industrial to mixed-use Entertainment District to allow for a shift to more commercial tax generating activity while concurrently updating the City’s Development Impact Fee policy to increase revenue for capital improvements.

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Community & Economic Development Context
Concurrently, the City’s Comprehensive Plan Update 2040 included an Economic Development Element that calls for:
 a diverse economy
 attracting and retaining a thriving business climate
 fostering a skilled workforce
 strengthening public and private development that aligns with community vision
 fiscal health; and
 uplifting the economic potential of the City’s vulnerable populations.

While the Economic Development Element’s goals and objectives are still relevant today, the prior recommendations lacked a detailed implementation plan to direct the Community Development Department’s workplan and secure the required staff resources.

The Economic Development Element also identified several PublicPrivate Partnership (P3) Opportunity Sites to define the City’s priority redevelopment areas along Atlantic Avenue. These P3
opportunities build off the City’s 2015 Long Range Property Management Plan that brought 9.54 acres of property under the Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis
City of Cudahy’s oversight after the Cudahy Community
Development Commission was dissolved.

In 2021, the City undertook a rezoning initiative that designated the southern quadrant of Atlantic Avenue as “Entertainment District” use and a priority redevelopment area. With intentional urban infill redevelopment activity, the City of Cudahy has the opportunity to attract new businesses to the City’s retail/dining/ entertainment district and capture a greater “fair share” of regional spending.

The City is also in the process of expanding staff resources to support this increased development activity. Since 2022, the City has increased full-time staff from 18 to 42 and part-time staff from 11 to 26. The increase in staff capacity was coupled with an internal departmental reorganization to house planning and zoning, economic development, and community redevelopment functions under one umbrella in the Community Development Department.

Traffic Counts
An important measure of potential demand for destination retail and family entertainment uses may be illustrated by traffic counts.

Analysis of the relationship between gross retail sales and the

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volume of vehicles traveling north and south along Atlantic Avenue suggests that traffic is primarily commuter drive-through activity.

Figure 20: Traffic Heat Map
Source: ESRI Business Analyst; Willdan, 2023
This existing volume of vehicle trips is in the range of 120,000 to 250,000 trips per day. This level of throughput is an indicator of the opportunity for competitive, new retail/dining/entertainment products in the local submarket.

Retail Market Indicators
According to CoStar, Cudahy is located in the Los Angeles MidCities retail submarket (“the submarket”), which comprises many cities including Bellflower, South Gate, Lakewood, and Compton as well as parts of the city of Los Angeles (Figure 17). Data reflects Q2 2023 retail market indicators for the submarket as well as Cudahy specific indicators listed in Table 9.

The Cudahy submarket contains 50.4 million square feet of retail space. This includes 11.6 million square feet at Neighborhood Centers, 5.5 million square feet at Strip Centers, and 25 million square feet of General Retail. Most retail properties in the submarket are in smaller shopping centers which have outperformed malls and other retail buildings for the last several years.

Cudahy contributes 377,220 square feet of retail to the submarket (or 16.7 square feet per capita). In comparison, the City of South Gate contains 3.2 million square feet of retail (or 35 square feet per capita). This statistic illustrates the challenging “category killer” competition at the local level between Cudahy and its neighboring jurisdictions. Cudahy will need to evolve and diversify its retail product to a use lacking in the regional market to overcome the retail dominance of nearby shopping centers.

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Figure 21: Cudahy Retail Submarket
Source: CoStar; Willdan, 2023
2023: Vacancies, Absorption, Rents and Sales
Retail vacancy rate for the submarket is 4.2% compared to 5.4% vacancy in the Los Angeles metro. In 2022, Cudahy’s vacancy rate was 6.6%, which is lower than the City’s five-year average of 8 percent. While vacancy rates in Cudahy are higher than those in the submarket and LA metro, they have been decreasing slightly over the last three years as retail has recovered from the pandemic.

CoStar data indicates that retail rents in the submarket grew in the last 12 months by 1.2%, outpacing the LA metro on a year-over-year basis since Q1 2020.

Table 10: Retail Supply: City of Cudahy Retail Market Indicators, 2023 Retail Availability Q2 2023 5-Year Avg
NNN Rent Per SF $27.45 $18.09
Vacancy Rates 6.60% 8.00%
Vacant SF 24,913 32,074
Availability Rate 7.20% 10.80%
Available SF 27,313 43,216
Sublet SF - 130
Months to Market 21.3 13.4
Existing Buildings 35 35
Existing SF 377,220 400,445
12 Mo. Const. Starts - -
Under Construction - -
12 Mo. Deliveries - -
Retail Sales Past Year 5-Year Avg
Sale Asking Price Per SF - $607
Asking Price Per SF $482 $482
Sale Volume (Mil.) - $1.10
Retail Demand Q2 2023 5-Year Avg
12 Mo. Absorption SF 1,240 -1,828
12 Mo. Leasing SF 10,465 27,282
Source: CoStar; Willdan, 2023
A growing preference for convenience has helped grow demand for grocery-store anchored shopping centers, including in
neighborhood centers. This demand for retail also primarily serves

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residents due to a limited number of current tourist attractions in the submarket.

In the last 12 months, the submarket has seen 153,000 square feet of absorption, and the City has seen 1,240 square feet of absorption. Despite demand, the Cudahy submarket has had little retail development in recent years. According to CoStar, during the past five years, retail inventory has decreased by 110,000 square feet with demolitions outweighing new construction. Sales activity has also slowed due to the recent increases in interest rates.

Notably, there have been no new construction starts, deliveries, or projects under construction over the past five years or presently in the City of Cudahy. This along with strong regional retail demand are indicators of opportunity for infill retail/dining/entertainment redevelopment activity.

Cudahy Entertainment District Opportunities
The City of Cudahy is actively promoting the transformation of the City’s recently zoned Entertainment District from currently underutilized, disinvested light industrial uses. To evaluate the feasibility and potential benefits of this concept, Willdan conducted an in-depth market analysis of retail/dining/entertainment supply and demand characteristics.

Although Class A retail space is non-existent within the City limits according to CoStar, Class B/C retail is performing adequately with relatively low vacancy rates (6%) and rental rates averaging $30 per square foot.

Substantial retail leakage from Cudahy residents spending outside of the city’s boundaries underscores the existing gaps in retail/dining/entertainment supply.

Placer.ai’s Void Analysis indicates regional demand and sufficient spending power to support a variety of retail/dining/entertainment chains within the City limits.

True Trade Area analysis of the Steelcraft food hall and brewery illustrates the potential fiscal benefits of creating a destination draw in Cudahy.

The detailed assumptions in support of these findings as reported by Esri Business Analyst and Placer.ai is provided in the following overview of Placer.ai retail gap findings.

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Retail Gap Analysis
Customer journey data reported for City of Cudahy residents illustrates the lack of supply for a variety of retail goods and services.

For spenders who live in Cudahy and journeyed between home or work to a retail destination, only one of the top 15 locations over the past 12 months was inside of the City limits (Cudahy Plaza).

Table 11: Cudahy Customer Journey: Top 15 Retail Destinations, 2021-2022 # Retail Destination Location Visits
1 Azalea Regional Shopping Center South Gate 239,980
2 Stonewood Center Downey 156,892
3 Promenade at Downey Downey 136,566
4 Walmart South Gate 114,526
5 Plaza La Alameda Walnut Park 103,144
6 Plaza Mexico Lynwood 99,699
7 Downey Landing Downey 97,572
8 Lakewood Center Lakewood 96,920
9 Bell Gardens Marketplace Bell Gardens 79,339
10 Pico Rivera Towne Center Pico Rivera 77,865
11 Target South Gate 77,677
12 Cudahy Plaza Cudahy 76,547
13 Citadel Outlets Commerce 73,505
14 El Paseo South Gate Shopping Center South Gate 59,540 15 Costco Wholesale Norwalk 59,112
Source : Placer.ai; Willdan, 2022
The Cudahy local market lacks
regional superstore retail
product, highlighting sales
and property tax revenues
lost to neighboring
jurisdictions

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Figure 22: Retail Supply Overview – Regional Superstores, 2022 Cudahy City Boundaries
Source: Placer.ai; Willdan, 2022

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Market Leakage & Lost Tax Revenues
According to market outlook data reported by Placer.ai, a comparison of Cudahy residents’ spending power (demand) against sales captured by regional retail/dining/entertainment destinations (supply), there exists today substantial “unmet need” within the City of Cudahy.

The following Table 12 illustrates that the City of Cudahy is losing almost $2.3 million in annual local sales taxes from $65 million in lost sales from residents spending outside of the city limits.

Taking the evidence of retail leakage as an indicator of pent -up demand, the retail/dining/entertainment “void” data reported by Placer.ai illustrates the diversity of potential tenants that would be likely to have a commercial interest in locating a new operation in the City of Cudahy.

Note: the data does not account for potential compatibility between trade area characteristics and retailer demographic preferences, as well as current retailer expansion activity within the regional market.

The following Table 13 is a sampling of users by category including urban arcades/bowling alleys, trampoline parks, urban golf/minigolf, breweries, wine bars, and a diverse array of restaurants from pizza to poke and steakhouses that could be attracted to operate within the City of Cudahy.

Table 12: Cudahy Resident Retail Sales Tax Leakage, 2021-2022 Estimated Sales Tax
Leakage by Use1 Total Resident Visits Average Ticket Size Gross Estimated Sales
Leakage ($M) Local Tax Rate
Total Estimated Local
Sales Tax Leakage ($M)
Hotels & Casinos 54,578 $284.39 $15.52 5.5% $0.85
Grocery 415,216 $44.06 $18.29 3.0% $0.55
Dining 1,381,370 $22.56 $31.16 3.0% $0.94
Total 1,851,164 $351 $64.98 $2.34
1 Reflects selected retail/dining/family entertainment uses proposed for City of Cudahy Entertainment District redevelopment area.

Source: Placer.ai; Willdan, 2023

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Table 13: Retail/Dining/Entertainment Void Analysis by Operator – City of Cudahy (20-Minute Drive Time), 2021-2022
Source: Placer.ai; Willdan, 2022

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Spending Power Analysis
Although the City of Cudahy is limited to a little over one square mile of area, it is in a powerful regional market with substantial spending power. To calculate this spending power, Willdan analyzed data within two geographies:
 Southeast LA Submarket (City of Cudahy combined with
contiguous neighboring jurisdictions
 20-minute drive time from the center of Cudahy
These geographies are the basis for the Economic Development Strategic Plan’s evaluation of gaps and opportunities generated by growth in households and median household income as the primary driver of retail spending power.

Consumers make decisions based on road networks when deciding where to shop, and drive times provide information on the City’s trade area based on travel speeds and distance on existing roadways.

A 20-minute drive time from the center of Cudahy and neighboring jurisdictions were analyzed to assess market demand for destination retail. Consumers are willing to travel over longer distances for destination businesses and community attractions, and the attraction of new retail/dining/entertainment in the City’s Entertainment District has the potential to draw visitors from a wide surrounding area.

The following Figure 21 illustrates the City of Cudahy’s relative positioning within a 20-minute drive time.

Figure 23: Regional Submarket (20-Minute Drive Time)
Source: ESRI Business Analyst; Willdan, 2023

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Table 14: Southeast LA Submarket Incremental Retail Spending Power Projections (2023 to 2028) Median Household Income Cudahy Bell Bell
Gardens
Huntington
Park Maywood South Gate Total
Submarket (Median)
2023 $51,563 $53,547 $50,872 $52,854 $55,779 $61,658 N/A 2028 $57,604 $60,180 $56,611 $60,623 $63,748 $71,686 N/A Net Change $6,041 $6,633 $5,739 $7,769 $7,969 $10,028 $44,179 X 2028 Households 5,739 9,063 9,741 14,851 6,450 24,289 70,133 New Spending Power ($ Million)1 $34.0 $60.0 $55.0 $115.0 $51.0 $243.0 $558.0 Retail/Dining/Entertainment
Spending ($ Million)2 $2.4 $4.2 $3.9 $8.1 $3.6 $17.0 $39.1 1 Figures are rounded to reflect hypothetical values
2 Per the US Consumer Expenditure Survey 2022, US households spend 7% on food away from home, liquor (bars), and entertainment Source: ESRI Business Analyst; Willdan, 2023
The table above highlights Cudahy’s projected spending power alongside its neighboring communities. The household and household income growth projected in the next five years is expected to increase spending power by $558.0 million over the next five years with Cudahy contributing $34 million to this figure.

Of the total, an estimated $39.1 million will be spent on retail/dining/entertainment options.

Within the 20-minute drive time area, new spending power is projected to increase by $6.77 billion (Table 15), of which $474 million will be spent on retail/dining/entertainment options.

The anticipated growth over the next five years further validates the regional market’s projected incremental retail spending power available to support high quality new retail/dining/entertainment offerings – especially considering family-oriented retail and entertainment gaps in existing supply.

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Table 15: 20-Minute Drive Time Spending Power Projections (2023 to 2028) Net New Spending Power Support for Retail
Dining & Entertainment (2023-2028)
20 Minute Drive Time
from Cudahy City
Center
Median Household Income (2023) $61,175
Median Household Income (2028) $75,059
Net Change in Income $14,520
X 2028 New Households 464,964
New Spending Power ($ Billion)1 $6.4 B
Retail/Dining/Entertainment ($ Million)2 $448.0 M
1 Figures are rounded to reflect hypothetical values
2 Per the US Consumer Expenditure Survey 2022, US households spend 7% on food away from home, liquor (bars), and entertainment
Source: ESRI Business Analyst; Willdan, 2023
Multifamily Market
Supply Characteristics
The City of Cudahy is completing its 6th Cycle Housing Element Update (HEU), which includes a Regional Housing Needs Allocation (RHNA). This analysis measures Cudahy’s share of regional housing needs compared to what has been achieved. Data from the HEU along with CoStar data from Q2 2023 are utilized to highlight indicators for supply and demand characteristics of Cudahy’s multifamily market.

Cudahy is located in the Southeast Los Angeles multifamily submarket (“the submarket”), which covers a wide area of the LA metro from Downtown LA to the Orange County border (Figure 19).

Figure 24: Cudahy Multifamily Submarket
Source: CoStar; Willdan, 2023
Market Support for Cudahy
Entertainment District
Net New Annual Spending Power (2027)
Restaurants Bars Entertainment
Southeast LA Submarket: $39.1 M
20-Minute Drive Time: $448.0 M

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According to CoStar, the submarket contains 59,382 multifamily market-rate units, and there is an abundance of small complexes with fewer than 20 units. Cudahy is primarily a residential community and has 152 multifamily properties spread across the City that contribute 1,738 units to the submarket.

Several characteristics are important to evaluate when testing market demand against existing supply of multifamily rental properties. These include, but are not limited to:
 Building quality and
amenities
 Building scale and size
 Location
 Year built
An evaluation of Cudahy and the submarket’s supply related to these variables is provided in the following overview.

Building Quality and Amenities
Building quality encompasses the quality of the building design, materials used, and number and quality of amenities offered at a property. The range of amenities offered on rental products can be quite diverse across a market. CoStar’s proprietary star rating system takes a range of factors into consideration to determine building quality and amenities. The highest ranking is five stars, and the lowest ranking is one star. The submarket consists of 939 four- and five-star units, 9,323 three-star units, and 49,120 one- and two-star units. Eighty-three percent of multifamily units fall within the twostar category, which means they have minimal to no amenities.

Three-star properties have average quality finishes and a few shared amenities, and four- and five-star properties include higher end or luxury amenities in newly constructed buildings.

Taking a micro-market view, multifamily units within the City of Cudahy boundaries are predominantly two-star units (75%), with the balance falling in the one- and three-star category. Table 15 profiles the star rating and number of units in each category.

Table 16: City of Cudahy Multifamily Market Summary
Real Estate Market Indicators Q2 2023
Inventory (Units) - TOTAL 1,738
1 & 2 Star 1,297
3 Star 441
4 & 5 Star 0
Units Under Construction 6
12 Month Net Absorption Units 51
Vacancy Rate 1.5%
Effective Market Rent Per Unit $1,387
12 Month Asking Rent Growth 2.2%
Source: CoStar; Willdan, 2023

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The lack of four- and five-star properties indicates that there is a gap in new and competitive supply of multifamily housing in the City.

Building Scale and Size
Building scale and size is another factor when assessing the nature of the multifamily market in Cudahy. Properties in the City have one to three floors, and the average building is a single story. Properties have an average of 12 units and have a higher proportion of oneand two-bedroom units. Properties with a smaller number of bedrooms may be a challenge to families in Cudahy as household size and overcrowding have increased over the years. According to the HEU, the average household size in the City is five people in comparison to 2.9 people per household in greater Los Angeles County. Household size in Cudahy is driven largely by increased family size, increased cost of living, and lack of available affordable housing.

Unit sizes range widely from 300 square feet to 1,520 square feet with the average unit size being 898 square feet. While overcrowding is a challenge for households, the City did not find the size of units themselves to be issues of concern for residents in its HEU surveys.

Location
Cudahy predominantly consists of dense residential development.

Residential neighborhoods account for approximately 394 acres, or

51.5%, of the total land area of the City. For this reason, multifamily is found throughout the City, as indicated in Figure 21. The exception is primarily along Atlantic Avenue where retail, commercial, entertainment, light industrial, and public uses are currently found. The City’s recent land use updates promote new residential development along these corridors to facilitate mixeduse development.

Figure 25: Cudahy Multifamily Building Location Map
Source: CoStar; Willdan, 2023

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Year Built
The lack of regionally competitive multifamily stock is further illustrated by an analysis of year built.

The age of the existing housing supply indicates an opportunity to renovate units to add or improve amenities and build higherdensity, quality housing in alignment with the City’s goals.

The following , approximately 83% of 998 existing units were constructed prior to 1990. More than half of all units were constructed prior to 1960; only 77 units (8%) were built in the last 10 years.

Figure 26: Cudahy Multifamily Units by Year Built, Q3 2022 Source: CoStar; Willdan, 2023
In assessing housing age, new construction should also be considered. According to CoStar, there are 280 units under construction in the submarket, and 315 units have been delivered in the last 12 months. The number of units under construction equates to 0.5% of the submarket’s existing inventory and is below the LA metro average of 2.4 percent.

However, this figure does not take into account the multiple new developments in the submarket that have been designated for lowincome, affordable, and senior housing as the CoStar data only incorporates market-rate statistics.

In the last 12 months, while there were no construction starts, 48 units have been delivered and six units are currently under construction in the City of Cudahy.

While the City of Cudahy enacted a rent increase moratorium ordinance in January 2023, the City’s Community Development Department is actively engaged in facilitating several multifamily housing development proposals. This intentional developer assistance demonstrates the City’s commitment to protecting at-risk residents while balancing the need to provide exceptional redevelopment services to private developers.
0%
10%
20%
30%
40%
50%
60%
-
100
200
300
400
500
600
1912 to
1945
1961 to
1965
1966 to
1990
1991 to
2015
2016 to
2022
Number of Units
# of Units
% of Total

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Table 17: Cudahy Multifamily Supply
Inventory In Units Q2 2023 5-Year Avg
Existing Units 1,716 1,662
12 Mo. Constr. Starts 0 20
Under Construction 6 41
12 Mo. Deliveries 48 18
Source: CoStar; Willdan, 2023
Housing Needs Assessment Demand
According to the RHNA, the Southern California Association of Governments (SCAG) estimated the eight-year future housing construction needs for Cudahy to be 393 housing units, not including the roll-over of 280 units not constructed from the previous cycles. The number of units is allocated by income level to meet different affordability needs in the city and can be found in Table 18. While the City is not involved in the actual construction of housing units, it is actively involved in creating a regulatory environment to facilitate the development of housing to work towards its housing goals.
29 https://www.cityofcudahy.com/DocumentCenter/View/780/Cudahy-Draft-6thCycle-Housing-Element-Mar-2022 To further assess housing needs, the City collected community input through public hearings and community outreach surveys that were available in both English and Spanish.29 Surveys were used to identify housing issues facing the city and possible options for addressing those issues. Primary concerns included the need for affordable housing throughout the City and the rehabilitation of existing housing. The assessment of housing demand in Cudahy utilizes the results of these surveys along with CoStar Q2 2023 data.

Table 18: City of Cudahy RHNA 6th Cycle Estimated Housing Construction Need, October 2021 – October 2029
Housing Affordability Level
(AMI: Area Median Income)
Number
of
Units
Percentage of
Total Units
Very-Low Income (<50% AMI) 80 20.35%
Low Income (50-80% AMI) 36 9.16%
Moderate Income (80-120% AMI) 53 13.48%
Above Moderate Income (>120% AMI) 224 56.9%
Total Needed Future Housing 393 100%
Source: City of Cudahy 6th Cycle Housing Element Update; Willdan, 2023

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Vacancy
The multifamily vacancy rate is the share of rentable building area (square feet) available or not leased and does not factor in common area space or amenities that are not leasable. According to CoStar, the submarket vacancy rate is 2.7% and is slightly higher than the vacancy rate of 2.3% one year ago. The increase is the result of 310 new units being completed and only 51 units absorbed in the submarket within the last year. Despite this slight increase, the vacancy rate has remained below the submarket’s average since 2000 of 3.3% as well as the Greater LA apartment market average of

4.6%, which indicates modest renter demand in the submarket.

Demand for multifamily is even greater in Cudahy, and the City’s vacancy rate is 1.5 percent (Table 19). This is below the City’s 5-year average of 2%, and CoStar data indicates that only 25 units were vacant at the time the analysis of the market was conducted.

Low vacancies and limited options were key concerns that residents expressed in the City’s survey. In response to the question, “How important is providing more housing for all income levels to you and your household?” approximately 40.4% of respondents using the English survey and 60.6% using the Spanish survey said that this issue is “very important.” Residents also expressed interest in a diversity of housing options including single family, multifamily, condominiums, and duplex/attached housing.

Table 19: Cudahy Multifamily Vacancy and Absorption
Leasing Units Survey 5-Year Avg
Vacant Units 25 34
Vacancy Rates 1.5% 2%
12 Mo. Absorption Units 51 12
Source: CoStar; Willdan, 2023
Rent
According to CoStar, the Southeast Los Angeles submarket average asking rents of $1,660 per month are among the most affordable in the Greater LA apartment market. Despite lower rents in the submarket compared to the metro area, rents are increasing at a sharper pace and creating cost burdens for residents.

Average asking rents have seen gains of 3.1% during the past 12 months, outpacing the gains of 1.1% seen across the LA metro. The submarket witnessed an average annual growth of 3.7% over the past five years, and the LA metro trailed that pace, with average annual gains of 2.7 percent.

The average rent per unit in Cudahy is $1,387, and the average rent per square foot is $1.60. While rental rates are more affordable relative to the larger submarket, the steady increase in rents over the last ten years creates affordability challenges for Cudahy’s

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residents. According to the Housing Element Update, residents expressed a great need for affordable housing in Cudahy as well as a concern regarding high rental prices being charged by landlords.

In the City’s survey, 60.6% of respondents using the English survey and 66.7% of those using the Spanish survey indicated that promoting housing affordable to working families was a “very important” priority to them and their households.

Absorption
Absorption is the rate at which units are leased or exited over a given period. A positive absorption number indicates that more units are leased than the number no longer occupied and is a positive sign of demand in the market.

According to CoStar, during the past 12 months, the submarket saw a net absorption of 51 units. The net absorption in the past decade averaged 140 units, indicating a decrease and some softening of demand in the larger submarket. However, demand has
strengthened in Cudahy, and the City saw an absorption of 51 units in the last 12 months. This is an increase from the five-year average of 12 units absorbed in a 12-month period.

Constraints & Opportunities
The nation – and California in particular—is experiencing the greatest housing inventory crisis in the last 50 years. Housing construction cost inflation pressures, and labor and materials shortages are exacerbating the mismatch between demand (buying power) and the cost to produce a unit.

Local market demand focused around low- to moderate income and workforce housing products at price points that require some form of subsidy.

However, the City’s recent community development policy initiatives like the inclusionary housing ordinance and affordable housing impact fee are being used to leverage affordable housing development opportunities in the City.

The City’s Successor Agency Sites provide a land banking opportunity to attract the type of multifamily development that is envisioned in the General Plan Update 2040 and its associated Housing Element.

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Industrial Market Overview
Cudahy is located in both the Vernon and Commerce industrial submarkets, with the dividing line between the markets running through Atlantic Avenue (Figure 22). Both are large industrial submarkets characterized by aging stock, and there is 133 million square feet of industrial space between the two submarkets. A breakdown of Logistics, Specialized Industrial, and Flex space square footage for both submarkets are provided in Table 20. The City of Cudahy has 43 buildings that contribute 1,013,144 square feet to the submarkets.

Figure 27: Cudahy Industrial Submarkets
Source: CoStar; Willdan, 2023
Table 20: Cudahy Industrial Submarket Square Footage by Asset Type Q2 2023 Vernon Commerce Total SF
Logistics 47,118,742 37,524,140 84,642,882
Specialized Industrial 35,834,326 11,445,437 47,279,763 Flex 553,650 970,344 1,523,994
TOTAL 83,506,718 49,939,921 133,446,639
Source: CoStar; Willdan, 2023
2023: Vacancies, Absorption, Rents, and Sales
Key indicators for Cudahy and the Vernon and Commerce
submarkets can be found in Table 21. The vacancy rate in both submarkets has increased over the last two years due to a sharp contraction in activity at the nearby port, which many tenants in the markets serve. In contrast, Cudahy’s vacancy rate has remained very low and currently sits at zero percent.

Rents average $16.62 in the Vernon submarket and $16.40 in Commerce, which are lower than the Greater LA market average of $19.20. Despite an increase in vacancies, rents in both submarkets have increased over the past 12 months by 7.8% and 9.9% respectively. The five-year average rent for industrial space in Cudahy is $12.26.

Vernon Commerc

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Sales activity has slowed since Q3 2022 as investors cope with higher interest rates, and activity early in 2022 contributed to the large sale volume numbers in the submarkets.

Twelve-month sales volume tallied at $44.7 million in Vernon and $160 million in Commerce. In Cudahy, sales volume was up to $6.4 million from the City’s five-year average of $3.8 million.

Absorption rates reflect the growing vacancy rates, and both submarkets had negative absorption rates of 2.4 million (Vernon) and 1.5 million (Commerce). Cudahy had an absorption rate of zero.

Table 21: Local and Submarket Industrial Real Estate Indicators Supply Characteristics
The industrial submarkets are largely built out, and in most cases, new development requires demolition of existing, older properties.

The supply pipeline is modest in both submarkets with zero proposed square feet in the next eight quarters in Commerce and four industrial buildings under construction in Vernon. Table 22 demonstrates that there has also been no new supply activity in Cudahy with zero projects under construction and none started in the last five years.

Overall, supply has declined over the past five years in the Vernon submarket as some buildings have been demolished and inventory has declined by an average of 94,000 square feet annually over the past five years.

Table 22: Cudahy Industrial Supply
Inventory In Units Q2 2023 5-Year Avg
Existing Buildings 43 43
Existing SF 1,013,144 1,013,144
12 Mo. Constr. Starts 0 0
Under Construction 0 0
12 Mo. Deliveries 0 0
Source: CoStar; Willdan, 2023
Real Estate
Market Indicators Cudahy Vernon Commerce
Vacancy 0% 6.30% 3.80%
Absorption 0 -2,400,000 -1,500,000
Rents $12.26 $16.62 $16.40
Sales Volume (Million) $6.4 $44.7 $160
Source: CoStar; Willdan, 2023

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 27
Demand Drivers
Given the aged inventory, tenant demand in the submarkets is driven by small to midsized users as older properties often lack the building heights, loading docks, and other amenities needed by major distributors.

Urban Farming
In terms of tax revenue opportunities, both dispensaries and light industrial processing/warehousing can contribute to the local economy. Dispensaries are retail establishments that sell cannabis products directly to consumers. They generate tax revenue through sales taxes, excise taxes, and local business taxes. The tax rates and regulations vary depending on the jurisdiction.

Light industrial processing/warehousing refers to facilities involved in activities such as cultivation, processing, and distribution of cannabis products. These operations may include growing and harvesting plants, manufacturing products like edibles or extracts, and storing inventory. Taxes can be collected through licensing fees, permit fees, and taxes based on the volume or value of products.

Despite the growth and source of revenue for local jurisdictions, the cannabis market in California faces challenges. Competition among businesses is intense, and an oversaturated cannabis market in the state has led to steeply declining product prices. Compliance with evolving regulations and rising industry taxes has led to cannabisbased businesses shutting down to diminishing profit margins, and Figure 23 demonstrates the decline in sales that has begun due to these factors.

Figure 28: California Taxable Cannabis Sales
Source:

Source: CA Department of Tax and Fee Administration; Willdan, 2023 $-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2021 2021 2021 2021 2022 2022 2022 2022 2023
$ Millions

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 28
Constraints & Opportunities
The declining industrial market and significant square footage currently occupied by industrial product presents a meaningful opportunity for revitalization of currently underutilized and aging industrial properties in the Cudahy.

To realize the vision of the Entertainment District, the City should evaluate existing businesses on a property-by-property basis for code and licensing violations as part of a targeted Business Retention and Expansion Program. With zero percent vacancy in its industrial spaces, special consideration should be given to nonconforming business operations to mitigate the threat of displacement and gentrification.

Commercial & Medical Office Market
Supply Characteristics
The Mid-Cities submarket area which includes the City of Cudahy boundaries has among the lowest percentage of four and five-star inventory in the LA Metro market area.

Data illustrating location of existing office market centers in LA CBD and environs
Demand Drivers
According to ULI-the Urban Land Institute, office demand is typically informed by office employment growth projections. Given that Cudahy does not include a concentration of office properties, future office development will require a build-to-suit strategy. Due to the current under-performance of the Cudahy office submarket, inflation, the impact of Covid on hybrid office policies, and the continually rising costs of construction, office is not considered the highest and best use of property on Atlantic Avenue.

Constraints & Opportunities
With the Covid impact on office occupancy rates, demand for highly amenitized spaces, inflation, and borrowing rates, speculative office development is not considered to be financially feasible.

However, there is an opportunity to explore build-to-suit medical office “wellness hub development with Keyser Permanente Center through a regional play.

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 29
Hotel/Hospitality Market Overview
Supply Characteristics
Cudahy is part of the Los Angeles Southeast submarket within which there are 156 hotels and 8,516 rooms (Figure 24). Cudahy currently has no hotel rooms reported in this inventory.

Figure 29: Cudahy Hospitality Submarket
Source: CoStar; Willdan, 2023
Within the submarket, the average property has 55 rooms and economic lodging dominates the market. More than two-thirds of the rooms are limited service or midscale product.

Demand Drivers
While business and visitor hotel stays are stabilizing from Covid in the larger market, Atlantic Avenue’s existing conditions are not competitive for new hotel product in the near term.

The occupancy forecast for the submarket is projected to increase from approximately 67% in 2022 to 70% by 2023. According to CoStar, as of April 2023, the 12-month average RevPAR in the submarket was climbing at an exceptionally strong 9.2% annual rate, which is similar to the market-wide trend.

New development in the submarket continues, and there is one hotel project with 71 rooms underway. Over the past three years, three projects with 320 rooms came online.

Constraints & Opportunities
The City of Cudahy is not yet a destination with amenities and attractions. The City should focus on laying the foundation to catalyze high quality, transformational redevelopment activity that would attract new hotel construction investment in the future.

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 30
Conclusion
Table 23 below provides a summary of the opportunities and constraints by product type for the City.

Table 23: Summary Table Constrains and Opportunities by Product Type Sector Opportunities Constraints
Retail
 Substantial retail leakage and projected spending power growth indicate opportunity for variety of
retail/dining/entertainment users
 Zoning code revisions and creation of Entertainment District will support more competitive employment center
 Existing conditions, lot size, and fragmented uses along main commercial corridor
Multifamily
 Substantial demand for a variety of housing options
 Aging housing stock with minimal amenities create
opportunities for upgrades and new competitive supply
 Lank banking with City Successor Agency Sites for
redevelopment opportunities
 Lot sizes
 Housing construction costs, labor and material shortages, and inflation
 Subsidies required for low- to moderate income housing products are limited and highly competitive
Industrial  Underutilized and aging properties create opportunity for reimagined retail/dining/entertainment uses
 Existing industrial spaces are fully occupied, and existing businesses must be evaluated on property-by-property basis  Urban Farming users generate meaningful General Fund
revenue for City
Commercial
and Medical
Office
 Proximity to Kaiser Permanente and regional wellness hub opportunities long-term
 Build-to-suit opportunity for specific, identified medical office  Office is not highest and best use on Atlantic Avenue due to under-performance of office submarket caused by COVID,
costs for highly amenitized spaces, and inflation
Hotel/Hospitality
 Entertainment District will catalyze high-quality
redevelopment to attract future hotel construction
 Market occupancy growth is climbing, indicating COVID recovery
 City not currently a destination with attractions, amenities, or existing hotel product
Source: City of Cudahy; CoStar; Lee & Associates; Willdan, 2023

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 31
Community Engagement
To inform the Economic Development Plan recommendations, the consulting team conducted community and business outreach through a variety of mechanisms from June 2022 to July 2023.

The outreach included:
 Stakeholder interview tracking tool
 In-person data collection interviews with City of Cudahy staff in the Office of the City Manager, Community Development, and City Finance Department
 Video interviews with members of the City’s leadership who opted to participate
 Electronic community engagement survey in English and Spanish via Sli.do
 Economic Development SWOT Work Session (approximately 25 community participants in attendance)
 City Planning Commission presentation and feedback on the draft Economic Development recommendations
 Preliminary City Council presentation of findings and recommendations
The results of this broad approach to community engagement are summarized in the following overview of interview and survey results.

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 32
Spanish Version Survey: English Version Survey:

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 33
Community Visioning 2022/23: SWOT Workshop Results
Q2: Where is your favorite place to go in Cudahy?
Chris’s Burgers
Chute Fitness
El Superior Grocery Store
Gym
Lee’s BBQ
Mar y Sol Restaurant
None
Small Plaza on Clara St. and
Atlantic Ave.

Wendy’s
“I don’t have one.”

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 34
Community Visioning 2022/23: SWOT Workshop Results

Q3: How would you describe Cudahy as a community?
“A miracle I can live and work so close”
“Hard working-class community”
“A typical densely populated community”
“A community divided, but lots of potential”
“Small-town feel and a close-knit community”
“An oasis in the LA metro”
“Home”
“A plethora of community-based organizations,
but each with their own mission”

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 35
Community Visioning 2022/23: SWOT Workshop Results

Q4: What landmarks do you associate with Cudahy’s brand as a City or a place?
Atlantic Avenue Corridor
Choze Shopping Center
Chris’s Burgers
Clara Park and Extension: “Nostalgic!”
Elizabeth Learning Center
El Superior Grocers
Lugo Park
“None!”

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 36
Community Visioning 2022/23: SWOT Workshop Results

Q5: In Your Opinion, What is Missing in Cudahy?
Family Entertainment
Restaurants
Shopping
Public Art
Gathering Spaces
“Bowling Alley with Pizza”

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 37
Community Visioning 2022/23: SWOT Workshop Results
Q6: When you leave Cudahy to shop, dine or enjoy
family entertainment, specifically where do you go and
why?
Bell
Cerritos
Chuck-E-Cheese: “it’s good for the kids”
Downey: ”Lots of diverse restaurants and
entertainment”
Downtown Los Angeles
Lakewood
Little Tokyo: “Different food options,
Open Spaces”
Long Beach
Lynwood
Southgate:” Nails and
Sam’s Club”
Tijuana
Orange County
Pico Rivera
“I only go to
El Superior for
groceries.

I go outside of
Cudahy for
anything else”

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 38
Community Visioning 2022/23: SWOT Workshop Results
Q7: Do you identify Cudahy
with the City’s logo of the
Bear?
Yes: 28%
No: 72%
Q8: Do you think the City
tagline Open Minds, Open
Doors” defines the City’s
brand for marketing
redevelopment
opportunities?
Yes: 45%
No: 55%

City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part IV: Consulting Support Contact Information IV—1
Part IV: Real Estate & Economic Development
Consulting Support Contact Information
Willdan Financial & Economic
Consulting Services
1939 Harrison St Suite 430, Oakland, CA 94612
Phone: (202) 510-0511
Project Manager:

Molly McKay, Managing Principal
Community Engagement & Economic Development
Strategic Plan Lead
[email protected]
Principal-in-Charge:

James Edison, Managing Principal
Municipal Finance Advisor
[email protected]
Research Analysts:

Carlos Villarreal, Principal
Demographic & GIS Lead
[email protected]
Chelsea Gaylord, Project Director
Economic Profile Report & Real Estate
Market Analysis Lead
Nick Zatrine, Analyst
GIS Analyst
[email protected]

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55733.00005\41460899.1
“Serving The People” "Sirviendo A La Comunidad"
Staff Report
08/01/2023 Page 1 of 3

STAFF REPORT
Date: August 1, 2023
To: Honorable Mayor and City Council
From: Alfonso Noyola, City Manager/Executive Director
By: Juan Arauz, AICP, Community Development Director
Subject: Declaration of surplus property pursuant to Government Code Section 54220 et. seq. located at 8100 – 8110 Atlantic Avenue and 4720 – 4734 Santa Ana Street, in the City of Cudahy, California, County of Los Angeles (APNs: 6224-018-911, 6224-018-912, 6224-018-913, 6224-018-914, and 6224-018-915)

RECOMMENDATION
Staff recommends that the City Council of the City of Cudahy (the “City”):

1. Find that the declaration of surplus property is exempt from environmental review pursuant to the California Environmental Quality Act (“CEQA”); and

2. Adopt Resolution No. 23-37 declaring that the properties located at 8100 – 8110 Atlantic Avenue and 4720 – 4734 Santa Ana Street (APNs: 6224-018-911, 6224-018- 912, 6224-018-913, 6224-018-914, and 6224-018-915) are surplus land and are no longer necessary for the City’s use; and

3. Direct the City Manager to follow the procedures set forth in the Surplus Lands Act (“SLA”), (Gov. Code § 54220, et seq.), for the sale of surplus land.

BACKGROUND
The City owns and controls real property located at 8100 – 8110 Atlantic Avenue and 4720 – 4734 Santa Ana Street (“Property”). The Property is comprised of five parcels located within the Entertainment (“E”) Zone. The Property’s General Plan Designation is Entertainment, which is also one of the General Plan’s mixed-use land designations and is located within the Entertainment Subdistrict of the Atlantic Avenue District. Four of the five parcels are currently vacant and one parcel located at 8100 Atlantic Avenue currently contains a tire shop. Future development of the Property would further the redevelopment and beautification of City’s Atlantic Avenue District.

Item Number
14C

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Staff Report
08/01/2023 Page 2 of 3

Figure 1 below shows the five subject parcels that comprise the Property.

Figure 1. Property Aerial Image
Effective January 1, 2020, Assembly Bills 1486 and 1255 amended the SLA, which prescribes a process for localities to first make surplus lands available for affordable housing prior to the disposition of any surplus lands. Although parties have expressed interest in developing the Property for commercial uses, the City must first comply with the SLA and make the Property available for affordable housing prior to making it available for other developments, as detailed later in this report.

ANALYSIS – SURPLUS LANDS ACT COMPLIANCE
The SLA requires all local agencies to prioritize affordable housing, as well as parks and open space, when disposing of surplus land. Given that the Property is located in the City’s Atlantic Avenue District and its proximity to other commercial and mixed-use projects, the Property may ultimately be developed as mixed-use or commercial. Nevertheless, in order to proceed to an eventual sale of the properties, it is necessary to comply with the SLA.

New legislation which took effect on January 1, 2020, requires that before a local agency takes any action to dispose of land, the land must be declared either “surplus land” or “exempt surplus land,” as supported by written findings. “Surplus land” means the land owned by a local agency for which the local agency’s governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency’s use. The City Council must take formal action declaring the subject City-owned property is surplus property.

Adoption of the attached Resolution would declare the subject properties as surplus land.

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Staff Report
08/01/2023 Page 3 of 3

Upon the City’s determination that the subject properties are surplus land, the procedures set forth in Government Code Section 54220 et seq. must be followed. Those procedures require the City to offer the sale of surplus land to certain entities for a period of 60 days by transmitting a written notice of availability (“NOA”) to those entities, including:

1. For the purpose of developing low- and moderate-income housing, any “local public entity” as defined in Health and Safety Code Section 50079 within whose jurisdiction the surplus land is located and to “Housing Sponsors” that have notified the California Department of Housing and Community Development (“HCD”) of their interest in surplus land for the development of affordable housing.

2. For open space purposes, to local park districts.

3. For the purpose of use by a school district for school facilities construction or open space purposes, to the Cudahy Unified School District.

4. To any other public entities with jurisdiction over the parcels of surplus land.

If the City receives correspondence expressing interest from any of the above entities after transmitting an NOA, the City is required to enter into good faith negotiations concerning the price and terms of the sale with that entity for a period of 90 days. If the price and terms cannot be agreed upon after 90 days. Alternatively, if no entity gives notice of interest, the City may sell the surplus land without further regard to the surplus land procedures.

ENVIRONMENTAL ANALYSIS:

The action is exempt from environmental review pursuant to CEQA (Pub. Res. Code § 21000 et seq.) and State CEQA Guidelines (Cal. Code Regs., Tit. 14, § 15312) which applies to the declaration and sale of surplus government property.

FISCAL IMPACT
If the disposition of the Property results in the sale of the Property to an affordable housing developer or other party for the purposes of private development, the City would negotiate a price to sell the property and would be compensated for the sale.

ATTACHMENTS
A. Resolution No. 23-37
B. Notice of Availability

55733.00001\41460876.1
RESOLUTION NO. 23-37

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUDAHY
DECLARING PROPERTY LOCATED AT 8100 – 8110 ATLANTIC AVENUE AND 4720 – 4734 SANTA ANA STREET (APNS: 6224-018-911, 6224-018-912, 6224-018-913, 6224-018-914, AND 6224-018-915) AS SURPLUS LAND; APPROVING THE FORM OF NOTICE OF AVAILABILITY; DIRECTING THE

CITY MANAGER TO COMPLY WITH THE REQUIREMENTS OF THE
SURPLUS LANDS ACT, GOVERNMENT CODE SECTION 54220 ET. SEQ.;

AND FINDING THE ACTION EXEMPT FROM CEQA
WHEREAS, the City of Cudahy (the “City”) owns that certain 1.02 acre property, located at 8100 – 8110 Atlantic Avenue and 4720 – 4734 Santa Ana Street which is more particularly depicted at Exhibit A (the “Property”); and
WHEREAS, the Property is in the Entertainment (“E”) Zone and is currently comprised of five parcels, four of which are vacant and one containing a tire shop; and WHEREAS, the Property generates monthly income through a month-to-month lease; and WHEREAS, the Property is not intended for a governmental use; and WHEREAS, Assembly Bill 1486 went into effect on January 1, 2020 (“AB 1486”), and expanded the Surplus Land Acts (Government Code Section 54220 et seq.) (the “Act”) requirements for local agencies prior to the disposition and disposal of a “surplus land”; and WHEREAS, the Property is “surplus land” because it is not necessary for the City’s use and none of the statutory exemptions set forth under Government Code Section 54221(f)(1) are applicable, and therefore the Property and disposition thereof are subject to the Act; and WHEREAS, City staff and consultants will use an appraisal of the Property to establish its market value; and
WHEREAS, the City’s portion of the proceeds from the disposition of the Property and property tax generated may provide funding to enhance City services, and the future development of the Property would attract tax revenue generated by sales activities.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUDAHY HEREBY RESOLVES AS FOLLOWS:

Section 1. The above recitals are true and correct and are incorporated in full, herein by this reference.

Section 2. The City Council finds that the Property is “surplus land” because it is not necessary for the City’s use, as defined under the Act, Government Code Section 54221(c), and does not qualify as “exempt surplus land” under the Act, Section 54221(f) based on the true and correct written findings in this Resolution.

Attachment A Page 118 of 147
55733.00001\41460876.1
Section 3. The City Council authorizes and approves the form of Notice of Availability, attached hereto as Exhibit B (the “Notice”), and authorizes the City Manager, Community Development Director, or designee(s) to comply with the requirements of the Act, to issue the Notice to those statutorily entitled to receive it pursuant to Government Code Section 54222, and to negotiate in good faith with those entities, if any, who submit qualified Notices of Interest (Government Code Sections 54222.5 and 54223).

Section 4. The action authorized by this Resolution does not authorize or approve the actual disposition or sale of the Property. Any proposed agreement for the disposition of the Property shall be subject to the approval of the City Council.

Section 5. The disposition of Property as surplus is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15312 (Cal. Code Regs., Title 14). However, if development is proposed on the Property by a buyer at a future date, then that subsequent development may be subject to environmental review under CEQA.

Section 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

Section 7. Effective Date. This Resolution shall become effective immediately upon its adoption.

Section 8. The City Clerk shall certify to the adoption of this Resolution and that the same shall be in full force and effect.

The City Clerk of the City of Cudahy shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this __ day of August, 2023. _____________________________________
DAISY LOMELÍ, MAYOR
ATTEST:
________________________________

CITY CLERK

55733.00001\41460876.1

STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES )

CITY OF CUDAHY )
I, RICHARD IGLESIAS, City Clerk of the City of CUDAHY, DO HEREBY CERTIFY that foregoing Resolution No. 23- 37 was duly passed and adopted by the City Council of the City of Cudahy at their regular meeting held _______, 2023, by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:
____________________________________

RICHARD IGLESIAS, CITY CLERK
APPROVED AS TO FORM:

City Attorney

55733.00001\41460876.1
Exhibit A
Property Depiction
Table Summary
APN Address Lot Size Existing Use
6224-018-912 8100 Atlantic Avenue 6,305 SF Tire Shop
6224-018-915 8110 Atlantic Avenue 11,674 SF Vacant
6224-018-913 4720 Santa Ana Street 16,866 SF Vacant
6224-018-914 - 1,304 SF Vacant
6224-018-911 4734 Santa Ana Street 7,754 SF Vacant
Aerial Image

August 2, 2023

NOTICE OF AVAILABILITY OF SURPLUS LAND
TO: Whom It May Concern (Via Electronic Mail)
RE: Notice of Availability of Surplus Land in the City of Cudahy, Pursuant to California Government Code Section 54220 et seq.

Pursuant to the provisions of the Surplus Land Act (California Government Code Section 54220 et seq.) (the “Act”), the Successor Agency to the former Cudahy Redevelopment Agency (“Successor Agency”) hereby notifies those entities designated in Section 54222 of the Act of the availability for lease or purchase of the Successor Agency-owned land identified in Exhibit 1 attached hereto and incorporated herein by reference (the “Development Site”), for the purposes authorized in the Act, which land the Successor Agency has declared surplus by Resolution No. 23-37, dated August 1, 2023, prior to the disposition of the Development Site by the Successor Agency consistent with the Act and the Successor Agency’s policies or procedures.

The Development Site is located at the southeast corner of Atlantic Avenue and Santa Ana Street within the City of Cudahy and consists of five parcels totaling approximately 1.02 acres. Table 1 below summarizes the Development Site:

Table 1. Surplus Parcels
APN Address Lot Size Existing Use
6224-018-912 8100 Atlantic Avenue 6,305 SF Tire Shop
6224-018-915 8110 Atlantic Avenue 11,674 SF Vacant
6224-018-913 4720 Santa Ana Street 16,866 SF Vacant
6224-018-914 - 1,304 SF Vacant
6224-018-911 4734 Santa Ana Street 7,754 SF Vacant
All parcels are located in the Entertainment Zone. The Successor Agency desires a fair market value sale (as determined by an appraisal) of the Development Site.

If you have any questions regarding the Development Site, you may contact the Successor Agency’s representative, Juan Arauz, at the telephone number or email address listed below or by responding to the cover email accompanying this transmittal.

In accordance with Government Code Section 54222, if interested in purchasing the property for an authorized purpose under the Act, you must notify the Successor Agency in writing of your interest in purchasing the property within 60 days of the date of this Notice of Availability. All inquiries to purchase the Development Site shall address ability of the developer/housing sponsor to: (1) acquire the Development Site for fair market value; (2) pay for and process relocation of existing tenant(s); and (3) address any environmental conditions (i.e., soil contamination) that may exist.

Any offers received shall not obligate the Successor Agency to sell the property to you. Instead, the Successor Agency would enter into a minimum ninety (90) day of negotiation period pursuant Attachment B Page 122 of 147

to Government Code Section 54223. If no agreement is reached on sales price and terms, the Successor Agency may market the property to the general public. As required by Government Code Section 54227, if the Successor Agency receives more than one letter of interest during this sixty (60) day period, it will give first priority to entities proposing to develop housing where at least twenty-five percent (25%) of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.

Written notices of interest must be sent, if at all, to, and must be received by, October 2, 2023, within said sixty (60) day period at the following address. The receipt of an email or notice by certified mail by way of the United States Postal Service is acceptable. If by certified mail, we suggest that you send it via certified mail with return receipt requested.

Please send written notices of interest to:

Juan Arauz, AICP
Community Development Director
City of Cudahy
5220 Santa Ana St., Cudahy, CA 90201
(323) 773-5143 ext. 224 [email protected]
Entities proposing to submit a letter of interest are advised to review the requirements set forth in the Surplus Land Act (Government Code Sections 54220-54234).

Figure 1. Aerial View

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
8/01/2023 Page 1 of 2

STAFF REPORT
Date: August 1, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: City Attorney’s Office
Subject: Consideration of a Resolution No. 23-38 Authorizing the City Manager Approve a Lease Proposal for Temporary Offices at City Hall Pursuant to Section 3.16.140 of the Cudahy Municipal Code (Alternate Procurement Procedure)

RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 23-38 authorizing the City Manager approve a lease proposal for temporary offices at City Hall in accordance with Section

3.16.140 of the Cudahy Municipal Code.

BACKGROUND AND ANALYSIS
Pursuant to the newly amended Chapter 3.16.140, the City Council may allow for the purchase of equipment without complying with the formal contract procedure as set forth in CMC Section 3.16.130.

The City is in need of a lease for temporary offices at City Hall due to the tight space currently experienced by staff and the recent increase in staff members. CMC Section 3.16.130 requires the purchase of equipment in excess of $25,000 be acquired through the formal contract procedure. State law does not require the purchase of equipment to go through the formal contract procedure, the CMC is applying an extra requirement to the purchase of equipment.

The Alternate Procurement Procedure set forth in CMC Section 3.16.140 allows the Council to waive the requirement for this specific purchase only through adoption of a resolution by a 4/5 vote.

Staff has reviewed and processed three informal quotes for this project already and requests the Council adopt Resolution No. 23-38.

Item Number
14D

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
8/01/2023 Page 2 of 2

CONCLUSION
In order to address the lack of staff space in City Hall, City staff recommends the City Council adopt Resolution No. 23-38 and authorize the City Manager approve a lease proposal for temporary offices at City Hall.

STRATEGIC PLAN CORRELATION
Goal E (City Infrastructure and Service Delivery)

FINANCIAL IMPACT
If approved, the cost to complete this project will be $37,280 from SIEMENS Project Contingency Fund.

ATTACHMENTS
A. Resolution No. 23-38

RESOLUTION NO. 23-38

A RESOLUTION OF THE CITY OF CUDAHY

CALIFORNIA, AUTHORIZING THE CITY MANAGER

APPROVE A LEASE PROPOSAL FOR TEMPORARY

OFFICES AT CITY HALL PURSUANT TO SECTION

3.16.140 OF THE CUDAHY MUNICIPAL CODE
(ALTERNATE PROCUREMENT PROCEDURE)
WHEREAS, pursuant to Government Code section 54201 through 54203, a city must adopt, by ordinance, policies, and procedures, including bidding regulations, governing purchases of supplies and equipment by the city; and.

WHEREAS, on June 22, 2015, the City of Cudahy City Council ("City Council") adopted Ordinance No. 649 establishing Chapter 3.16 (Purchase and Sale of Services, Supplies, and Equipment) of Title 3 (Revenue and Finance) of the Cudahy Municipal Code; and
WHEREAS, on October 4, 2022, the City Council adopted Ordinance No. 726, adding chapter 3.16.140, allowing the procurement of supplies, materials, equipment, or general services, to be exempted from the requirements of CMC 3.16.120 and 3.16.130, if the City Council finds, by resolution adopted by not less than four-fifths (4/5) of its members, that such procurement may be most economically and efficiently effected through the use of an alternate transactional process or alternate procurement procedure; and WHEREAS, Public Contract Code (“PCC”) Section 20162 requires expenditures for public projects in excess of five thousand dollars ($5,000) “be contracted for and let to the lowest responsible bidder after notice”; and
WHEREAS, PCC Section 20161 defines a “public project” as (a) a project for the erection, improvement, painting, or repair of public buildings and works; (b) work in or about streams, bays, waterfronts, embankments, or other work for protection against overflow; (c) street or sewer work except maintenance or repair; (d) furnishing supplies or materials for any such project, including maintenance or repair of streets or sewers; and WHEREAS, Section 3.16.130 of the Cudahy Municipal Code (“CMC”) requires purchases for equipment greater than $25,000 be by purchase order or written contract with the lowest responsible bidder; and
WHEREAS, Section 3.16.130 of the CMC imposes a requirement on the purchase of equipment that is more stringent than state law.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cudahy, California, as follows:

SECTION 1. The City Council hereby approves by four-fifths vote, the City Manager approve a lease proposal for temporary offices at City Hall, without compliance with Section Attachment A Page 127 of 147
Resolution No. 23-38

3.16.130 (Formal Contract Procedure) of the Cudahy Municipal Code, in accordance with Section 3.16.140 of the Cudahy Municipal Code (Alternate Procurement Procedure).

SECTION 2. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 1st day of August 2023.

Daisy Lomelí
Mayor
ATTEST:

Richard Iglesias, CMC
City Clerk

Resolution No. 23-38

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 23-38 was passed and adopted by the City Council of the City of Cudahy at a regular meeting held on the 1st day of August, 2023 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my
hand and affixed the Seal of the City of Cudahy,
this day of , 2023.
_______________________________________
Richard Iglesias, CMC
City Clerk

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STAFF REPORT
Date: August 1, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: From: Alfonso Noyola, City Manager/Executive Director By: Aaron Hernandez-Torres, Public Works Director
Subject: Consideration to Approve Lease Agreement with CSLM Construction, Inc., for Temporary Offices at City Hall

RECOMMENDATION
It is recommended that the City Council:

1. Approve a lease agreement with CSLM Construction, Inc. in the amount of $39,580 to install temporary offices at City Hall for new Staff who will be hired by the city within the calendar year.

2. Approve funding in the amount of $39,580 from SIEMENS Project Contingency Fund to cover this expense.

BACKGROUND

1. On June 6, 2023, Cudahy City Council approved the City Budget for FY 23/24.

2. In June and July 2023, city staff solicited proposals for leasing temporary offices to accommodate four (4) new positions at City Hall

ANALYSIS
The newly adopted City Budget for FY 23/24 includes four new positions for whom there is no more office space available inside City Hall. While new offices are built at or around city hall, a few alternatives were explored to provide the city with additional office space. The most feasible option is the lease of temporary office spaces to be installed adjacent to City Hall. This option includes the lease of a 20’X32’ Unit for a term length of 12 months in the amount of Item Number
14E

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$39,580. The unit is a modular building equipped with Air Condition, ventilation, lighting, and ADA compliance accessibility. The proposed 20’X32’ unit will accommodate up to six (6) people.

The following are the new positions approved in the current City’s budget for FY 23/24 and expected to be filled in within the following weeks:
• Permit Technician
• Building Official
• Housing Specialist
• Management Analyst
Public Works Staff researched trailer and modular building options for office space leasing and solicited proposals from well-known companies which provide these services. The following is a summary of the quotes received:

Company Name Lease Proposal Cost/ Year
WILLSCOT - mobile mini SOLUTIONS $67,509
Mobile modular – VESTA MODULAR $49,240
CSLM Construction, Inc $39,580
Due to its cost, experience, and ability to deliver and install the modular building in a timely manner, the city deemed CSLM Construction, Inc. to be the lowest, responsive, and responsible lease proposal.

CONCLUSION
City Staff recommends approving a lease agreement with CSLM Construction, Inc. in the amount of $39,580 to install temporary offices at City Hall for new Staff who will be hired by the city.

STRATEGIC PLAN CORRELATION
Goal E (City Infrastructure and Service Delivery)

FINANCIAL IMPACT
The cost to perform this activity is $39,580 from SIEMENS Project Contingency Fund.

ATTACHMENTS
A. Lease Agreement.

CSLM CONSTRUCTION INC.

DOCUMENT TITLE:

Cudahy City Hall 20' x 32' DSA Lease Agreement
PRESENTED BY: SEBASTIAN MARINESCU
CONFIDENTIALITY: The information contained in this transmission may contain privileged and confidential information. It is intended only for the use of the person(s) named above. If you are not the intended recipient, you are hereby notified that any review, dissemination, distribution or duplication of this communication, and the information contained in it, is strictly prohibited. If you are not the intended recipient, please contact the sender and immediately destroy all copies of the original message.

This message and the accompanying documents may contain information that is privileged, confidential, or exempt from disclosure under applicable law. If the reader of this document is not the intended recipient, you are hereby notified that you are strictly prohibited from reading, disseminating, distributing, or copying this communication. If you have received this e-mail in error, please notify the sender immediately and destroy the original transmission. Thank you.

Attachment A Page 133 of 147
CSLM Construction Inc.
5753 Sanata Ana Canyon Ste #137
Anaheim, CA 92807
Phone: (714) 863-7686 DATE
7/27/23
Juan Rodriguez
City of Cudahy
5220 Santa Ana St
Cudahy, CA 90201
323-630-4103
Provided by: Sebastian Marinescu

ITEMIZED COSTS QTY UNIT PRICE AMOUNT
MONTHLY RATE TO LEASE 20' x 32' 12 1,195.00 14,340.00
TRANSPORTATION TO SITE 1 3,000.00 3,000.00
SET UP 1 4,500.00 4,500.00
INSTALL WOOD FOUNDATION 1 3,500.00 3,500.00
CLOSE UP MATERIALS 1 800.00 800.00
INSTALL RAMP AND LANDING 1 800.00 800.00
TRANSLIFT ROLL BUILDING 1 1,200.00 1,200.00
-
TEARDOWN 1 3,000.00 3,000.00
REMOVE AND DISMANTLE WOOD FOUNDATION 1 1,500.00 1,500.00 REMOVE RAMP 1 800.00 800.00
TRANSLIFT ROLL BUILDING 1 1,200.00 1,200.00
TRANSPORTATION BACK TO CSLM YARD 1 3,000.00 3,000.00
CLOSE UP MATERIALS 1 800.00 800.00
-
MONTHLY RATE TO LEASE ADA STRAIGHT RAMP + LAND 12 95.00 1,140.00 -
$ 39,580.00
______ Note: Pricing provided above is for standard wages. If prevailing wages apply, pricing is subject to change.

Monthly lease rate (RENT) by LEASEE will be due to LEASER on the 1st of each month. FIRST + LAST MONTH RENT + UPFRONT DUE PRIOR TO DELIVERY AND INSTALLATION.
32004565
ESTIMATE #

TOTAL ESTIMATE
TO
LEASE OF 20' X 32' DSA
LEASE OF 20' X 32' DSA FOR TERM LENGTH: 12 MONTHS
BEGINNING OF TERM LENGTH: August 2023
END OF TERM LENGTH: August 2024
*** UTILITIES BY OTHERS***

GENERAL TERMS AND CONDITIONS

1. Acceptance of this Proposal shall constitute an agreement by the buyer to all the terms and conditions herein, subject, however, to the right of the Seller at home office to cancel this agreement within fifteen (15) days of receipt of acceptance or order by Seller’s home office.

2. In consideration of Seller furnishing Equipment described on the front page hereof, the Buyer shall pay to the Seller the sum stipulated on the front page hereof, subject to such additions or deductions relative to changes which may hereinafter be agreed upon between the parties in writing. Payment shall be made to the Seller at its offices at 5753 Santa Ana Canyon Ste #137, Anaheim, CA 92807. The Buyer shall pay to the Seller the full sales price within ten (10) days of invoice date, or as otherwise stipulated on the front page hereof. In the event delivery of the Equipment for the project requires more than one shipment, Seller may, at its option, render separate invoices for each shipment. If shipment of any part of the project is delayed Buyer’s obligation for the remainder of the Equipment shall not be affected thereby.

3. Unless otherwise specifically set forth in this Proposal and Agreement, it is specifically agreed and understood between the parties that the price herein specified does not include any state or local taxes or other governmental charge. Any tax or other governmental charge upon the production, sale, use or shipment of the products sold, now imposed or hereinafter becoming effective, shall be paid and remitted to the appropriate governmental agency by the Buyer. If state federal law does not permit payment and remission in such manner, said tax or other governmental charge shall be added to the price and shall be paid by the Buyer to the Seller.

4. Seller’s delivery of the Equipment described on the front page hereof, is subject to delays in manufacture or delivery due to fire, flood, windstorm, riot civil disobedience, strike, failure to secure materials from the usual source of supply, Act of God, or any other circumstances beyond the Seller’s control which shall prevent the manufacture of Equipment or the making of deliveries in the normal course of business. It is further understood and agreed that Buyer will not hold Seller responsible for liquidated damages or other damages for delay which may be imposed upon Buyer pursuant to any other contract which Buyer may have entered into with respect to the project to which Seller is not a party.

5. The Buyer shall be solely responsible for any and all additional materials, labor, site preparation and all other items on the project other than those materials are specifically set forth on the front page hereof.

6. The Buyer shall be solely responsible for the compliance with applicable building codes, for obtaining any type of building permits and licenses that may be required in the project, and for payment of state and local taxes other than those set forth in this Proposal and Agreement.

7. The Buyer agrees to indemnify and save harmless the Seller against all loses, cost or damages incurred or paid by Seller on account of any claim under Workmen’s Compensation Acts or other employee benefits acts, any claim for damages because of bodily injury, including death, to Buyer’s employees and all others, and any claims for damages to property caused by, or resulting from, or arising out of the Buyer’s performance of this Agreement, any aspect hereof or of the project to which this Agreement is related, or use of this Equipment after delivery. Buyer shall pay and all attorney’s fees and expenses incurred or paid by the Seller on account of any such claims; and Buyer, if requested by Seller, shall assume and defend at its own expense any suit, action or other legal proceeding arising therefrom.

8. The Buyer agrees that it shall not assign or transfer this Agreement or any part hereof or any amount payable hereunder, except with the prior written consent of the Seller. Seller may assign its interest, obligations, and rights of this Agreement.

9. THE BUYER SHALL:
a. Reimburse Seller for all costs incurred in order to correct improper or inaccurately constructed foundations, to correct misalignment or inaccuracy in any bolts, walls, footings, cutoffs for doors, or other work. b. Provide storage and be responsible for loss of or damage to materials and Equipment if site and foundations are not ready or accessible in accordance with delivery provision contained in this contract, and reimburse the Seller for all additional costs incurred by the Seller including, but not limited to, the cost of unloading, reloading, and hauling materials resulting from the Buyer’s failure to perform this condition. Delay in completing foundation and inaccessibility of the site may necessitate rescheduling of the order for which Seller shall not be responsible and shall extend the period of performance by the period of delay. c. Schedule his operations so that the erection, by the Seller, can be carried out in one continuous operation and in proper sequence. Should delays in preparation of the foundation and the site be encountered which would delay erection, Seller must be advised thereof not less than ten (10) days in advance of the tentative shipping date set by the Seller at the time of acknowledgement of order. In the event that the provisions of this sub-paragraph are not complied with, Buyer shall reimburse the Seller for actual costs and damages incurred, including a reasonable profit for the work performed thereon resulting from such delay. Any delay resulting therefrom shall extend the period of performance under this agreement by the period of delay.

d. Provide and maintain roadway to each building site so that trucks can drive alongside each building site; provide suitably leveled and compacted area with each building unit for the support of crane operation in erection; furnish power for the Seller’s machine tools during the course of erection; and furnish accessible utility services required by the Seller in the performance of the contract at the job site.

10. Unless otherwise specified, additional expense caused by obstructions, either overhead or underground, demolition work, grading to bring site to level, or depth or width of concrete footings, foundations or excavations caused by earth fill, or abnormal soil conditions which may require foundations different from the standard plans approved by Building Department, are to be paid for by the Buyer.

11. The Buyer warrants that they own, or have the right to construct buildings on the property upon which the Equipment is to be located. If required by the seller, buyer shall provide proof of title or other documentation as may be required to assert this representation.

12. The Buyer agrees not to interfere with the progress of the work, and not to occupy any portion of the building until all terms and conditions herein are fulfilled by both parties. Buyer further agrees not to permit any workmen other than those of the Seller to work at or in the immediate vicinity of the building without the Seller’s written consent until the Seller’s work on the building is completed.

Should any workmen or contractors or sub- contractors of the Buyer perform any such work, the Buyer will furnish to the Seller in writing their names before such work is commenced. The Buyer agrees to pay the Seller for any damage that may be caused by anyone other than workmen or sub-contractors of the Seller, by reason of disturbing or damaging concrete forms, grade finishing or any construction work in process whatsoever.

13. No charge for labor or material furnished by the Buyer shall be allowed as a credit under this agreement unless authorized in writing by the Seller.

14. The Buyer shall obtain insurance naming Seller as sole insured on all Seller’s property located on the building site, against loss by fire, lightning, wind, storm, insurance shall also cover the following items whether they be in of adjacent to the structure insured, materials in place or used to be as part of permanent construction including surplus materials, temporary structures, scaffoldings protective fence, bridging, forms and miscellaneous materials and supplies. Insurance need not cover tools or Equipment owned by or rented by the Seller. Buyer shall furnish to the Seller certificates of insurance on demand by Seller.

15. Expressly incorporated herein by reference thereto are the plans and specifications relating to the Equipment specified in this proposal and Agreement of Sale.

16. In the event any act or thing required by Buyer hereunder shall not be done and performed in the manner and at the time or times required by this Agreement, Buyer shall thereby be held in default and all amounts due under the terms and conditions of this Agreement shall be payable immediately by Buyer to Seller, without demand by Seller. In addition Buyer will reimburse Seller for any legal fees and costs that become due as a direct result of Buyer’s default of this Agreement, and Buyer will pay to Seller interest at the rate of 18% per annum, calculated on a 360 days = equals one (1) year base, on the unpaid balance owed. Interest will be calculated from the date said default takes place, through and including the date of Settlement.

17. The Seller’s Equipment as described herein is warranted for a period of one year against structural failure due to defective material or workmanship in the Equipment manufactured, unless otherwise stated by warranties of the Seller’s supplier of purchased components. Such warranties will be conveyed to Buyer and Buyer will deal directly with the Supplier if a claim arises. Seller’s liability is limited to replacing (but not to dismantling and installing) defective parts on an exchange basis. F.O.B. the manufacture’s factory. The warranty is limited to “Normal” usage and exposure. The following are excluded by the definition of “Normal” and therefore from this warranty if such conditions exist:
a. Improper installation affecting the structural design of the building or failure to provide drainage of water from all surfaces without internal penetration of the building.

2. Improper Maintenance

3. Installation in an area subject to heavy fall out or corrosive chemicals, ash or fumes from chemical plants, foundries, plating works, kilns, fertilizing manufactures, paper plants and the like. d. Acts of God, vandalism, falling objects, external forces, explosion, fire, riots, acts of war and radiation. In the event that any defect is discovered by the Buyer, notice of the defect shall be given to the Seller in writing and such notice must be sent within the warranty period by certified registered mail. The warranty is tendered for the sole benefit of the original Buyer and is not transferable or assignable and further is void in the event the product is removed from its original location of installation. THERE ARE NO

OTHER WARRANTIES EXPRESSED OR IMPLIED (INCLUDING WARRANTIES RELATING TO MERCHANTIBILITY) EXCEPT THOSE STATED HEREIN.

18. The warranty as outlined in Paragraph 17 is hereby specifically EXCLUDED as to materials and Equipment currently owned (or “used”) and is in possession of the Seller. Said material and Equipment is sold in an “as is” condition with NO WARRANTIES EXPRESSED OR IMPLIED.

19. The failure by Seller to enforce at any time, or for any period of time, any one or more of the terms of this Proposal and Agreement shall not be a waiver of such terms and conditions or of the Seller’s right thereafter to enforce each and every term and condition contained herein.

20. Upon acceptance of this Proposal, together with its terms and conditions, shall constitute the entire agreement between the Seller and the Buyer, there being merged all prior and collateral representations, promises and conditions in connection with this proposal, and any representation, promise or condition not incorporated herein shall not be binding on either party.

21. LEASEE(s) and any member or any guest shall not engage in any criminal or illegal activity, including but not limited to, illegal drug related activity, gang related activity or acts of violence on or near the subject Premises.

22. Dispute Resolution: The parties will promptly give each other written notice of problems or concerns arising in connection with the other’s actions under this agreement and will meet as needed, but not later than three (3) business days after receipt of a written request for a meeting, to discuss and make all possible efforts through good faith discussions and negotiations to resolve the matter.

If after full good faith effort to resolve the problem has been unsuccessful, and the dispute is not resolved by a meeting between the parties as provided above, then either party may refer the dispute to mediation or arbitration by request made in writing upon the other. Then venue for such proceeding or any litigation will be within the county of the headquarters of the Seller. Arbitration shall be conducted in accordance with the American Arbitration Association Construction Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The prevailing party at arbitration shall be entitled, in addition to such other relief as may be granted, to a reasonable sum for all its costs and expenses related to such arbitration, including, without limitation, the fees and expenses of the arbitrator and attorney’s fees, which shall be determined by the arbitrator or any court of competent jurisdiction that may be called upon to enforce or review the award.

23. Definitions:
a. Delivery – Date that structures arrive at site address. b. Notice of Completion – Date of written notice given by LEASER to LEASEE that structures are complete and available for LEASEE occupancy.
c. Equipment – The term Equipment as used herein shall refer to the item or items provided by the Seller as described on the front page of this Proposal and Agreement of Sale.

24. Stenographical and clerical errors herein are subject to correction.

25. Lease Conditions:
a. Rent will be due to LEASOR by LEASEE on the 1st of every month. Total of 12 payments of $1,290.00 per year. b. LEASEE agrees to term length of 12 months with an option to extend without any increase in monthly rate. Extension applies for an additional year beyond original 12 month lease whereby LEASEE is responsible for payment on continued month by month basis as original terms state. c. LEASEE is responsible for payment of down deposit of $26,680.00. Down deposit is comprised of first and last month rent addition to all upfront costs of install and removal of unit. Upon end of lease, LEASEE will NOT be charged any removal fees prompted collected in "upfront deposit" paid. Any additional fees associated with removal not accounted for during site inspection fall upon LEASER responsibility. d. LEASEE bears full responsibility of unit during time of lease and is fully responsible of unit damages up to $500,000.00. If unit is severely damaged, LEASEE is responsible for covering any and all non-minor damages. e. If LEASEE chooses to terminate lease agreement prior to agreed term length, LEASER is not responsible for returning any fees collected within deposit.
f. LEASEE is responsible for providing clear access during delivery and installation process. If access is obstructed, fees may apply.

By: _______________________________________________
Title: _____________________________________________
Date: ______________________________________________
By: _____________________________________________
Title: ___________________________________________
Date: ___________________________________________

CSLM CONSTRUCTION INC
7/27/23 7/27/23

CITY OF CUDAHY

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Staff Report
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STAFF REPORT
Date: August 1, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Richard Iglesias, City Clerk
Subject: Consideration to Adopt Resolution No. 23-39, Establishing a Sister City Relationship with San Miguel el Alto Jalisco, Mexico

RECOMMENDATION
The City Council is requested to Adopt Resolution No. 23-39, Establishing a Sister City relationship with San Miguel el Alto Jalisco, Mexico through the Sister Cities Program.

BACKGROUND

1. On May 19, 2020, City Council directed staff to obtain a membership with Sister Cities International (“SCI”) to develop global relationships.

2. On July 20, 2020, City of Cudahy became a member of SCI. After becoming a member, the City Clerk’s office received a recommendation to seek a potential relationship with San Miguel, el Alto.

3. On November 11, 2021, City Council directed staff to execute a Letter of Invite to San Miguel el Alto, Jalisco for a potential Sister City relationship.

4. On November 26, 2021, San Miguel el Alto, Jalisco responded to the City’s invitation for a potential Sister City relationship.

5. On April 5, 2022, City Council reviewed the SCI basic introduction to the program and toolkit, and gave direction on the type of affiliation (Sister City relationship or Friendship Cities) with San Miguel el Alto, Jalisco, that the Council wished to enter into. The Council also instructed staff to draft a resolution of its intent to enter into a partnership and draft an agreement.

Item Number
14F

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Staff Report
08/012023 Page 2 of 2

ANALYSIS
Sister Cities International works with the City to establish long-term partnerships through exchanges and initiatives between two communities which addresses issues that are most relevant to each other.

CONCLUSION
Staff requests Council adopt Resolution No. 23-39, establishing a Sister City relationship with San Miguel el Alto and enter into an agreement between the City of Cudahy and San Miguel el Alto.

FINANCIAL IMPACT
To be determined based on discussions and scope of the agreement.

ATTACHMENTS
A. Resolution No. 23-39, with exhibit.

RESOLUTION NO. 23-39

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CUDAHY ESTABLISHING A “SISTER CITY” RELATIONSHIP

WITH SAN MIGUEL EL ALTO IN JALISCO, MEXICO

THROUGH THE SISTER CITIES PROGRAM
WHEREAS, Sister Cities International (SCI) is a nonprofit founded in 1956; and WHEREAS, SCI is a membership organization for Cities, counties, and states, established with the intent to form relationships between people from different cities around the world; and
WHEREAS, SCI works with the Cities to establish long-term partnerships through exchanges and initiatives between two communities that address issues that are most relevant to each other; and
WHEREAS, the City of Cudahy wishes to establish a partnership with San Miguel el Alto in Jalisco, Mexico; and
WHEREAS, there is a shared desire between the City of Cudahy and San Miguel el Altoto explore goals, resources, education, technology, economic and cultural opportunities within one and other; and
WHEREAS, establishment of the Sister City relationship between the City of Cudahy and San Miguel el Alto would strengthen the bond for a long-lasting partnership.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cudahy, California, as follows:

SECTION 1. The City Council of the City of Cudahy approve the establishment of a Sister City relationship with San Miguel el Alto, Jalisco, Mexico.

SECTION 2. The City Council of the City of Cudahy authorizes the Mayor to execute the Sister City agreement (Exhibit A).

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at its special meeting on this 1st day of August 2023.
__________________________
Daisy Lomelí
Mayor
Attachment A Page 141 of 147
Resolution No. 23-39

ATTEST:
___________________________
Richard Iglesias
City Clerk

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 23-39 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a special meeting of said Council held on the 1
st day of August, 2023, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________
Richard Iglesias
City Clerk

Resolution No. 23-39

Exhibit A
Sister City Agreement
by and between the City of Cudahy, California and San Miguel el Alto, Jalisco, Mexico.

2023

SISTER CITY AGREEMENT
(Parties: San Miguel el Alto and City of Cudahy)

THIS SISTER CITY AGREEMENT (“Agreement”) is made and entered into this ___ day of _________ 20___ (hereinafter, the “Effective Date”), by and between the City of Cudahy, California and San Miguel el Alto, Jalisco, Mexico.

This agreement is made and entered into with respect to the following:

WHEREAS, Sister Cities International is a membership organization committed to promoting connectivity and expanding relationships with municipalities and agencies worldwide.

Its mission is to promote understanding, cooperation, and develop lifelong relationships that increase “citizen diplomacy” among all its participants; and WHEREAS, the City of Cudahy and San Miguel el Alto, Jalisco, Mexico, seek to establish a partnership through mutual respect, understanding, collaboration, and cooperation for the benefit of our communities; and
WHEREAS, we agree to form a partnership to explore common interests, goals, resources, education, technology, economic and cultural opportunities; and WHEREAS, our collaboration would foster professional exchanges and the limitless possibilities of this relationship in hopes of a long-lasting partnership.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the City of Cudahy and San Miguel el Alto, Jalisco, Mexico, agree to enter into a Sister Cities Partnership.

IN WITNESS WHEREOF, the Parties hereto have caused this agreement to be executed the day and year first appearing in this agreement above.

City of Cudahy:

By:

Daisy Lomelí, Mayor
Date:

San Miguel el Alto, Jalisco:

By:

Name: Luis Alfonso Navarro Trujillo
Title: Presidente Municipal
Date:

2023

ACUERDO DE HERMANAMIENTO ENTRE CIUDADES
(Partes: San Miguel el Alto y Ciudad de Cudahy)

EL PRESENTE ACUERDO DE HERMANAMIENTO ENTRE LAS CIUDADES (“Acuerdo”) se realiza y celebra este día ___ de _________ de 20___ (en adelante, la "Fecha de Vigencia"), por y entre la Ciudad de Cudahy, California, USA y San Miguel el Alto, Jalisco, México.

El presente acuerdo se hace y celebra con respecto a lo siguiente:

CONSIDERANDO QUE, Sister Cities International es una organización de afiliación comprometida con la promoción de la conectividad y la expansión de relaciones con municipios y agencias de todo el mundo. Su misión es promover el entendimiento, la cooperación y el desarrollo de relaciones de por vida que incrementen la “diplomacia ciudadana” entre todos sus participantes; y además
CONSIDERANDO QUE, la Ciudad de Cudahy, California, USA y San Miguel el Alto, Jalisco, México, procuran establecer una sociedad a través del respeto mutuo, la comprensión, la colaboración y la cooperación para el beneficio de nuestras comunidades; y además CONSIDERANDO QUE, acordamos establecer una sociedad que nos permita explorar intereses, metas, recursos, educación, tecnología, oportunidades económicas y culturales comunes; y además
CONSIDERANDO QUE, nuestra colaboración fomentaría los intercambios profesionales y las posibilidades ilimitadas de esta relación con la esperanza de una sociedad duradera.

AHORA, POR LO TANTO, en consideración de los convenios mutuos contenidos en el presente acuerdo, la Ciudad de Cudahy, California, USA y San Miguel el Alto, Jalisco, México, acuerdan celebrar una Sociedad de Ciudades Hermanas.

EN FE DE LO CUAL, las Partes involucradas han hecho que este acuerdo se ejecute el día y el año señaladas al inicio del documento.

Ciudad de Cudahy:

Por:

Daisy Lomelí, Presidente Municipal
Fecha:

San Miguel el Alto, Jalisco:

Por:

Nombre: Luis Alfonso Navarro Trujillo
Cargo: Presidente Municipal
Fecha: