HomeMy WebLinkAbout03. CDC Job Grant Bob's Big Boy
AGENDA MEMO
DATE:
November 9, 2010
TO:
Chairperson and Members of the Community Development Commission
FROM:
Office of the Executive Director
By: Brian Saeki, Director of Community Development
SUBJECT:APPROVE AND APPROPRIATE $100,000 PER THE “COMMISSION
ASSISTANCE FOR JOB CREATION” SECTION OF THE OWNER
PARTICIPATION AGREEMENT BETWEEN THE DOWNEY COMMUNITY
DEVELOPMENT COMMISSION AND JKBBD, INC. (BOB’S BIG BOY)
RECOMMENDATION
That the Commission approve a payment of $100,000 to JKBBD, Inc. (Bob’s Big Boy)
for compliance with the “Commission Assistance for Job Creation” Section of the Owner
Participation Agreement between the Downey Community Development Commission
and JKBBD, Inc. and appropriate that amount from available redevelopment funds.
BACKGROUND/DISCUSSION
On August 12, 2008, the Downey Community Development Commission (CDC)
approved an Owner Participation Agreement (OPA) with JKBBD, Inc. that facilitated the
development of a new Bob’s Big Boy restaurant at the former Johnie’s Broiler site (7447
Firestone Blvd.). The OPA proposed a two tiered financial incentive package that
required the maintenance and preservation of historically significant architectural
elements of the Johnie’s Broiler structure that were illegally demolished in 2007 and the
creation of 30- 40 new jobs.
The first tier incentive was provided to JKBBD, Inc. in the form of a 20-year prepaid
sublease that required the preservation and maintenance of the rebuilt historical
elements at the building, including signage, the front facade, and the car hop area. The
second tier incentive was structured as a job creation component, and provided JKBBD,
Inc. up to $400,000 for creating and maintaining 30-40 full-time jobs over a 15-year
period.
st
Per this incentive package, JKBBD, Inc. is eligible to receive $100,000 after the 1
anniversary of the completion and opening of the Bob’s Big Boy Restaurant for the
creation of 30 full-time jobs. Staff has received and reviewed the certification and
supporting documentation regarding the employment requirement in the OPA and is
comfortable that JKBBD, Inc. has met this requirement.
Therefore, staff is requesting that the CDC approve a payment of $100,000 to JKBBD,
Inc. per the OPA and appropriate that amount from available redevelopment dollars.
FISCAL IMPACT
There are sufficient unencumbered redevelopment funds to pay for this expenditure.
CITY OF DOWNEY, CALIFORNIA