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HomeMy WebLinkAbout2004 02-03 CC AGENDA PKT (2)AGENDA OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY Tuesday, February 3, 2004 at 3:00 p.m. City Council Chambers 1243 National City Boulevard National City, CA 91950 ROLL CALL 1. JOINT CDC AND CITY COUNCIL PUBLIC HEARING CONSIDERING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE CDC AND FRED DEMEO, dba TROPHY LOUNGE, FOR THE SALE AND PURCHASE OF PROPERTY FOR THE REDEVELOPMENT LOCATED AT 929 AND 999 NATIONAL CITY BOULEVARD AND THE 100 BLOCK OF PLAZA BOULEVARD (THE SITE). (REFER TO CITY COUNCIL AGENDA) 2. RESOLUTION NO. 2004-10: RESOLUTION OF THE CTY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE SALE OF REAL PROPERTY OWNED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY (CDC) LOCATED AT 929 NATIONAL CITY BOULEVARD TO FRED DEMEO, INC., dba TROPHY LOUNGE AND MAKING CERTAIN FINDINGS IN CONNECTION HEREWITH PUBLIC ORAL COMMUNICATIONS: ADJOURNMENT: To Regular meeting of the City Council this afternoon at 6:00 p.m. in the Council Chambers, Civic Center, 1243 National City Boulevard City of National City COUNCIL AGENDA STATEMENT MEETING DATE: February 3, 2004 AGENDA ITEM NO. 1 ITEM TITLE: PUBLIC HEARING: JOINT CITY COUNCIL AND CDC PUBLIC HEARING CONSIDERING A DISPOSITION AND DEVELOPMENT AGREEMENT BETVVEEN THE CDC AND FRED DEMEO, INC., DBA TROPHY LOUNGE, FOR THE SALE OF REAL PROPERTY LOCATED AT 929 AND 999 NATIONAL CITY BOULEVARD AND THE 100 BLOCK OF PLAZA BOULEVARD PREPARED BY: Benjamin Martinez, DEPARTMENT Community Development Commission Executive Director 336.4250 EXPLANATION: A Public Hearing by the legislative body (City Council) is required before any property acquired by the CDC with tax increment funds is sold for a redevelopment purpose. This joint public hearing complies with the requirements of the California Community Redevelopment Law Health and Safety Code Section 33433. Summary reports were completed in accordance with this code section pertaining to the fair use value of the property and the CDC payment for land. The reports were made available for public review prior to today's public hearing and public notices were published in compliance with the above code sec- tions as well. This is the time and place for the Joint Public Hearing. A resolution approving the sale of the property to Fred Demeo, Inc., dba Trophy Lounge is provided later in this agenda. / Environmental Review X N/A Financial Statement The CDC will sell the property at 929 National City Blvd. is to the developer at the Fair Reuse Value; the CDC will acquire a remnant parcel on "A" Ave. from the developer for future residential purposes. There will be no exchange of funds. Details of the transaction are in the Summary Report. STAFF RECOMMENDATION Hold Public Hearing as required by Community Redevelopment Law Health and Safety Code Section 33433. BOARD/COMMISSION RECOMMENDATION The Planning Commission action on February 2nd will be reported at this meeting. J ATTACHMENTS (Listed Below) 1. Notice of Intent to Adopt a Mitigated Negative Declaration 2. Notice of Joint Public Hearing Resolution No. COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY NOTICE OF INTENT TO ADOPT A MITIGATED NEGATIVE DECLARATION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT POSTED ON: JANUARY 2, 2004 THROUGH: JANUARY 2, 2004 PLEASE TAKE NOTICE THAT the Community Development Commission of National City, as the Lead Agency, has prepared a Mitigated Negative Declaration for the Trophy Lounge restaurant project pursuant to the California Environmental Quality Act. The project involves activities to demolish the existing Trophy Lounge Bar and Steamed Bean coffee shop to construct a new Trophy Lounge restaurant and expand the existing Trophy Lounge surface parking lot south of Plaza Boulevard to allow parking for 35 cars. The project is located in the downtown area of National City at the northeast corner of the intersection of National City Boulevard and Plaza Boulevard. The significant effect on the environment anticipated as a result of the project, to the extent that such effects are known to the Community Development Commission of National City at the time of this notice, which are addressed in the Mitigated Negative Declaration includes parking. A mitigation measure is listed in the Mitigated Negative Declaration to reduce the significance of parking to less than significant level. The Mitigated Negative Declaration and all documents referenced in the Mitigated Negative Declaration are available for review at the Community Development Commission of National City, 140 E. 12th Street, Suite B, National City, CA 91950/Phone (619) 336-4250. The public is invited to provide comments on the Mitigated Negative Declaration to the attention of Mr. Raul Carrillo, Project Manager, at the address listed above during the review and comment period that will run from December 30, 2003 to January 19, 2004. A hearing of the Community Development Commission of National City to consider the approval of the Trophy Lounge restaurant project and the Mitigated Negative Declaration will be held at the City of National City Council Chambers, located at 1243 National City Boulevard, National City, CA 91950, on Tuesday, January 20, 2004 at 3:00 p.m. All evidence and testimony for or against the Trophy Lounge restaurant project and the adoption of the Mitigated Negative Declaration will be considered. All persons having any objections to the proposed Trophy Lounge restaurant project may appear before the Community Development Commission of National City at the time and place of the hearing and show cause why the proposed Trophy Lounge restaurant project should not be approved. Further, at the day, hour and place of said hearing, any and all persons desiring to comment on, or having objections to, the content or adequacy of the Mitigated Negative Declaration may appear and be heard before the Community Development Commission of National City. NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Tuesday, February 3, 2004, the City Council of the City of National City (the "City") and the Community Development Commission of the City of National City (the "CDC") will hold a joint public hearing at 3:00 p.m., or as soon thereafter as the matter may be heard, in the National City Council Chambers located at 1243 National City Boulevard, National City, California to consider the following: TO PROVIDE FOR PUBLIC COMMENT, IN ACCORDANCE WITH SECTIONS 33433, 33445 AND 33679 OF THE STATE HEALTH & SAFETY CODE, REGARDING THE PROPOSED TERMS AND CONDITIONS FOR THE SALE OF LAND PROPOSED IN A DISPOSITION AND DEVELOPMENT AGREEMENT (THE "AGREEMENT") FOR REAL PROPERTY LOCATED AT 929 NATIONAL CITY BLVD. SAID LAND, CONSISTING OF APPROXIMATELY 2,800 SQUARE FEET, IS PROPOSED TO BE SOLD TO FRED DEMEO, INC. FOR THE CONSTRUCTION OF A NEW RESTARAUNT. A copy of the proposed Agreement, a Summary Report Pertaining to the Sale of Real Property Pursuant to the proposed Agreement, as well as other documentation required by Section 33445 of the State Health & Safety Cod are on file for public review at the Community Development Commission office, 140 E. 12th Street, Suite B, National City, California, 91950. Further information can be obtained by contacting the Office of the CDC at (619) 336-4250. The purpose of the joint public hearing is to receive testimony from the public regarding the proposed disposition and development of property as set forth in the proposed Agreement. All interested parties are invited and encouraged to attend said meeting and express their opinions for or against this item. If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the undersigned, or to the City Council of the City of National City at, or prior to, the public hearing. Furthermore, you must exhaust any administrative remedies prior to commencing a court challenge to City Council or CDC action. DAT .nu. 15 2004 Executive Director 1,la ates of Publication: January.19th and 23' 1 City of National City COUNCIL AGENDA STATEMENT MEETING DATE: February 3, 2004 AGENDA ITEM NO. 2 / ITEM TITLE: RESOLUTION NO. 2004-10: APPROVING THE SALE OF REAL PROPERTY OWNED BY \ / THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY (CDC) LOCATED AT 929 AND 999 NATIONAL CITY BOULEVARD TO FRED DEMEO INC., DBA TROPHY LOUNGE AND MAKING CERTAIN FINDINGS HEREWITH PREPARED BY: Benjamin Martinez, t N DEPARTMENT Community Development Commission Executive Director 336.4250 A copy of the Summary Report pertaining to Section 33433 is included with the agenda item relative to the Joint Public Hearing held this date on this subject. The Report concludes that the Developer is required to invest over $2,000,000 to construct and equip a new facility. This does not account for the developer's interest in the land already owned. The CDC's investment, including land purchase (and swap) and loans, amounts to at most $700,000 and with payback of the $250,000 loan and sale of the $36,000 parcel an investment of $414,000 as described in the Report. The Summary Report contains the deal points related to the Disposition and Development Agreement (DDA). This in- cludes: • Sale of the Steamed Bean Property and requirement to demolish building. • CDC acquisition of the A Ave. Residential remnant parcel. The parcel is adjacent to another CDC owned parcel. • The provisions for a $250,000 loan secured by a First Deed of Trust. The loan is for the improvement / reconstruction of the Plaza Blvd. parking lot. The CDC has the first rights to acquire the Parking Lot for public park- ing purposes. Pay back of the loan is tied to conformance to the CUP/City regulations. • A $150,000 loan to be paid back over five years. • Construction of a new 12,800 sq ft facility that has a large kitchen, outdoor patio, queuing area, and amenities that will change the customer base. Environmental Review X N/A Financial Statement The CDC will receive $36,000 for the parcel located at 929 National City Boulevard. Estimated value of interest to be conveyed as determined at the highest and best uses permitted by the CDC's Redevelopment Plan. r STAFF RECOMMENDATION Approve above -subject resolution BOARD/COMMISSION RECOMMENDATION N/A ATTACHMENTS (Listed Below) 1. Resolution 2004-10 2. Summary Report Pertaining to Section 33433 Resolution No. RESOLUTION NO. 2004 —10 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE SALE OF REAL PROPERTY OWNED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY ("CDC") LOCATED At 929 NATIONAL CITY BOULEVARD TO FRED DEMEO, INC., DBA TROPHY LOUNGE, AND MAKING CERTAIN FINDINGS IN CONNECTION HEREWITH WHEREAS, the Community Development Commission of the City of National City ("CDC") is engaged in activities necessary to execute and implement the Redevelopment Plan for the National City Redevelopment Project (NCRP); and WHEREAS, in furtherance of the objectives of the California Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.), the CDC desires to redevelop a certain approximate portion of the NCRP area located at 929 National City Boulevard (the "Site") which is owned by the CDC; and WHEREAS, the Implementation Plan adopted by the CDC with respect to the NCRP area calls for the CDC's objective to "increase private investment wherever possible, to promote jobs and improve the property and sales tax base of the City"; and WHEREAS, the CDC and Fred Demeo, Inc., dba Trophy Lounge (the "Developer"), propose to enter into a Disposition and Development Agreement (the "Agreement") pursuant to which the CDC would convey the Site to the Developer, and the Developer would construct improvements on the Site and the adjacent property owned by the developer consisting of approximately 12,800 square feet of restaurant, bar and entertainment facilities, and a parking lot of 34 spaces (the "Project"); and WHEREAS, pursuant to Section 33433 of the Community Redevelopment Law, the CDC is authorized, with the majority approval of the City Council after public hearing, to convey the Site for redevelopment purposes pursuant to the Redevelopment Plan upon a determination by the City Council that the sale of the Site will assist in the elimination of blight, that the sale is consistent with the implementation plan adopted pursuant to Section 33490 of the Health and Safety Code, and that the consideration for such sale is not less than fair reuse value in accordance with the covenants and conditions governing the sale and development costs thereof; and WHEREAS, a public hearing notice was duly noticed in accordance with the requirements of Health and Safety Code Section 33433; and WHEREAS, the proposed Agreement, and summary reports meeting the requirements of Health and Safety Code Section 33433, were available for public inspection consistent with the requirements of Health and Safety Code Section 33433; and WHEREAS, on February 3, 2004, the City Council and CDC held a joint public hearing on the proposed sale and evaluated all of the information, testimony, and evidence presented during the public hearing; and Resolution No. 2004 —10 February 3, 2004 Page Two WHEREAS, the CDC has reviewed the summary reports required pursuant to Health and Safety Code Sections 33433 and evaluated other information provided to it pertaining to the findings required pursuant to Sections 33433; and WHEREAS, the sale of the Site pursuant to the proposed Agreement will improve the quality of life of the residents of the City of National City and its visitors through the elimination of blight and the development of quality projects in the NCRP area by providing for the reuse and redevelopment of a portion of the NCRP area which formerly contained various substandard commercial buildings; and WHEREAS, the value of the consideration for the Site, pursuant to proposed Agreement will not be less than the fair reuse value of the Site as set forth in the summary report completed per Section 33433; and WHEREAS, the CDC approved Resolution No. 2004 — 06 adopting a Mitigated Negative Declaration ("MND") and a Mitigation Monitoring and Reporting Program ("MMRP") prepared pursuant to California Environmental Quality Act ("CEQA") guidelines on February 3, 2004, prior to consideration for approval of the Agreement; and WHEREAS, all actions required by all applicable law with respect to the proposed Agreement has been taken in an appropriate and timely manner, and WHEREAS, the City Council has duly considered all terms and conditions of the proposed Agreement and believes that the disposition of the Site pursuant thereto is in the best interests of the City of National City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local law requirements. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: Section 1. The City Council hereby finds and determines, based upon substantial evidence provided in the record before it, that the consideration for the disposition of the Site, pursuant to the terms and conditions of the proposed Agreement, is not less than the fair reuse value of the Site in accordance with the covenants and conditions governing the sale, and the development costs required under the proposed Agreement. Section 2. The City Council hereby finds and determines that the disposition of the Site pursuant to the proposed Agreement will eliminate blight within the Project Area by providing for the reuse and redevelopment of a portion of the Project Area, which formerly contained various substandard commercial buildings. Section 3. The City Council hereby finds and determines that the Agreement is consistent with the Implementation Plan for the Redevelopment Plan. Section 4. The CDC Executive Director is authorized to file a Notice of Determination with the County Clerk of the County of San Diego following adoption by the CDC of the resolution adopting the MND. Resolution No. 2004 —10 February 3, 2004 Page Three BE IT FURTHER RESOLVED that the Agreement for the sale of the Site is hereby approved. The Chairman of the CDC is hereby authorized and directed to execute the Agreement on behalf of the CDC, and the Executive Director of the CDC is authorized and directed to attest thereto. A copy of the Agreement, when executed, shall be placed on file in the office of the Executive Director of the CDC. BE IT FURTHER RESOLVED that the Executive Director of the CDC is authorized to execute such further documents and take such further actions as may be necessary or appropriate to carry out the CDC's obligations, pursuant to the Agreement. PASSED and ADOPTED this 3rd day of February, 2004. Nick Inzunza, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, Ill City Attorney SUMMARY REPORT FOR THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND FRED DEMEO, INC. dba TROPHY LOUNGE January 6, 2004 INTRODUCTION This document is the Summary Report ("Report") for the Disposition and Development Agreement ("Agreement") by and between the Community Development Commission of the City of National City ("CDC") and Fred Demeo, Inc ("Developer"). The Agreement facilitates: A. The development of an approximately 10,800 square foot restaurant and entertainment facility at 999 National City Blvd and B. The sale of CDC owned property located at 929 National City Blvd C. The redevelopment of the property located on the 100 block of Plaza Blvd. (collectively referred to as the "Development"). D. The sale to the CDC of a remnant parcel on A Avenue The Developer currently owns the property referenced as A,C, and D. Exhibit A is a parcel map that shows the relationship of the parcels to one another. This Report has been prepared pursuant to Section 33433 of the California Health and Safety Code (California Community Redevelopment Law or "Law") and presents the following: • A summary of The Development, as proposed. • The Cost of the Agreement to the CDC. • The estimated value of the interest to be conveyed, determined at the highest and best uses permitted by the CDC's Redevelopment Plan. ■ The estimated value of the interest to be conveyed determined at the use with the conditions, covenants, and development costs required by the Agreement. ■ An explanation of why the sale of property pursuant to the Agreement will assist in the elimination of blight. • Conformance with the CDC's Five -Year Implementation Plan. THE DEVELOPMENT The purpose of the National City Redevelopment Plan is to facilitate private and public initiatives to redevelop dilapidated commercial and residential properties and to facilitate the development of facilities to better serve the public. The proposed "New Trophy" Development is located in the Downtown District and will entail the redevelopment of dilapidated structures, accommodate expansion and upgrade of an existing viable business. The establishment has operated as a cocktail lounge and entertainment venue at the 999 National City Blvd. address for the past 50+years. The patronage is limited to Adults, 21 years of age, and is the last of the "old" Navy Bars that existed in the City's core. There is no food service, however, the venue periodically provides entertainment along with a dance floor, video games and billiards. The building was a former bowling alley and does not conform to current day building standards with the restrooms of particular concern. A feasibility study on the ability of remodeling the present structure for a full service restaurant was conducted and showed that such was not feasible. The alternative to a new building is to keep the present facility that cannot accommodate food service and lacks amenity. The proposed development will provide for food service with 275 seats with a varied full menu, along with cocktails, and entertainment. There will be a breakfast -snack area, outdoor patio, and a temporary area for a dance floor or live entertainment. THE COST OF THE AGREEMENT TO THE CDC Through the Agreement, the CDC will sell the 929 National City Blvd. property consisting of 2,750 square feet, with structure "as is", to the developer for $36,000. The Developer is required to demolish the existing improvements, and construct an approximately 10,800 square foot restaurant on both the 929 & 999 National City Blvd. properties and improve the Plaza Blvd. parcel with a landscaped parking lot that will service the restaurant. The developer will sell a remnant 5,000 square foot parcel on A Avenue to the CDC for $36,000. Per the Agreement, the CDC has o.r will expend up to $300,000 on the following: o $225,000 to purchase the 929 National City Blvd. Property; this is the appraised value that the CDC has paid the current owner. n $38,000 to relocate the tenant located at 929 National City Blvd. o $36,000 to acquire the remnant parking lot parcel on A Ave. (Said parcel is proposed to be sold to another party at a future date under another transaction.) The CDC will make loan commitments as follows: a $250,000 loan payable only if CUP violations occur. ❑ $150,000 loan payable per the terms of the DDA. The Developer will purchase the 929 National City Blvd. parcel for $36,000 offsetting the remnant parcel costs noted above. The $250,000 loan will be evidenced by a Secured Promissory Note secured by a First Deed of Trust on the Parking Lot property. The interest rate will be 5% simple interest. The $150,000 loan will be secured in the same manner as above on the Restaurant property but it will be in second position. This loan will bear the Bank of America Prime Interest Rate minus 1%, with a minimum of 3% and a maximum of 7%. The CDC's present outstanding bonds are at 2.5%. Should the CDC exercise it's option to acquire the Parking Lot and the close of escrow is after the Maturity Date for he $250,000 Note, the CDC shall receive a credit against the purchase price in the amount of the balance of the principle and accrued interest due on the CDC Notes, if any. If the close of escrow is prior to the Maturity Date of the $250,000 loan, the CDC shall receive a credit against the purchase price in the amount of the balance of the principal and accrued interest due on the $150,000 Note and the $250,000 Note shall become unsecured and remain payable by Developer to the CDC pursuant to its terms as an unsecured promissory note. The net cost of the Agreement to the CDC will be $300,000 if both loans are repaid and $550,000 if the $250,000 loan is forgiven. Summary of Cost: o Acquisition & relocation $300,000 a Loan w/repayment 150,000 o. Loan w/forgiveness 250,000 Total $700,000 ESTIMATED VALUE OF INTEREST TO BE CONVEYED as determined at the highest and best uses permitted by the CDC's Redevelopment Plan. 929 National City Blvd. Appraisal The CDC commissioned an appraisal report, prepared by Kenneth Keagy, MAI, of Keagy Real Estate Appraisal Services, to determine the Property's land and improvement values; the date of valuation is April 2003. The appraisal identified an adjusted land value for like property at $20.00 per square foot or $37,500 as vacant land area. The appraised value including the existing 1,500 sq ft structure was valued at $175,000 and the estimated cost to demolish and clear the present dilapidated structure is $20,000. Recent market sales data for like properties was reviewed to determine if the land values presented in the appraisal report are still current. The CDC is selling the fully developed parcel to the Developer for $36,000. The developer will further have to demolish the existing structure at an estimated cost of $20,000 with another $1,500 added for environmental clearance and fees. Thus the Appraisal value and the adjusted sale price to the developer are consistent. The highest and best use can be determined from an analysis of the present assessed valuation of the properties involved and the estimated value of the new improvements. In addition, sales tax revenues from the present uses when compared with the sales tax revenue projections illustrate that the new facility will be developed to the full potential of the site. This equates to $277 per square foot, based on $3,000,000 in annual sales, there is no business currently operating in the area that grosses this amount of revenue. The County Assessor's value of the subject parcels as follows: 929 National City Blvd. property is valued at 999 National City Blvd. property is valued at Parking lot on Plaza Blvd. is valued at Total present assessed valuation $173,233 $546,209 $225,000 $944,442 From the above, the present property tax collected on the development site(s) is estimated at $9,500 annually. When completed and fully assessed (anticipated to be in late 2004) the Development's projected new assessed value will be $3,000,000, including land, building fixtures and equipment. This new assessed value will generate net new property tax revenue of approximately $30,000 annually for an increase of over $20,000 annually. Income to the Public Sector over a 10-year period: a A Ave. Parcel Sale o Loan Repayment a Interest @3.5% simple o Property tax @10 yrs a Sales Tax @10 yrs Total $ 36,000 250,000 87,500 275,000 350,000 $ 998,500 The estimated new taxable sales per year are $2,000,000 in the initial years with possible income of $4,000,000 after several years of operation. (This is based upon the owners successful operation in Pacific Beach). The present sales tax is estimated at $7,500 based on sales of $750,000. The sales tax is estimated at an average of $35,000 annually for an increase of $27,500 per year or $275,500 over a ten-year period. To recap, based on the above the net gain from property and sales tax income over a ten year period is $530,000. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED, DETERMINED AT THE USE AND WITH THE CONDITIONS, COVENANTS, AND DEVELOPMENT COSTS REQUIRED BY THE AGREEMENT The estimated value of the interest being conveyed is determined by the requirements of the Agreement are extensive. The Conditional Use Permit and the Disposition and Development Agreement require the following: o Existing building to be demolished; requiring closing of existing business for up to one year. o Demolition of the adjacent Steamed Bean 929 National City Blvd. building. a Reconstruction of Plaza Blvd Landscaped Parking Lot for approximately 35 cars, and sale of a 2,500 sq ft parcel on A Ave. to the CDC. The CDC will be given an option to purchase the parking lot for public parking use. a Construction of a 10,800 sq ft restaurant; including: o Noise attenuation measures o Inside queuing o Full meal service a Change of Liquor license to require majority of revenues from food service rather than from sales of liquor ❑ Operating measures relative to employee training, cessation of liquor sales at certain times and security measures. The imposition of the above conditions requires the Developer to invest over $2,000,000 to construct and equip a new facility. This does not account for the developer's interest in the land already owned. The CDC's investment, including land purchase (and swap) and loans, amounts to at most $700,000 and with payback of the $250,000 loan and sale of the $36,000 parcel an investment of $414,000 as described above. EXPLANATION OF WHY THE SALE OF THE PROPERTY PURSUANT TO THE AGREEMENT WILL ASSIST IN THE ELIMINATION OF BLIGHT The actions contemplated by the Agreement will assist to redevelop properties that are currently substandard and that impact the adjacent neighborhood with noise from patrons, obsolete restrooms, and provide no food service to the community. Further, the Agreement promotes the consolidation of properties in order to accommodate better use of the land provides needed food service in pleasant surroundings, and better parking accommodations. CONFORMANCE WITH THE CDC'S FIVE-YEAR IMPLEMENTATION PLAN The Five Year Implementation Plan specifies that the CDC will assemble land, demolish and improve dilapidated buildings, construct public infrastructure and landscape improvements, and retain existing businesses within the Project Area. The Agreement implements these goals and actions. A copy of the Agreement is attached to this Report and is available for review at CDC offices, located at 140 East 11th Street, Suite B, National City, California. The Agreement will be the subject of a joint public hearing of the CDC and City Council on January 20, 2004.