MINUTES OF THE REGULAR MEETING OF THE CRA/LA, A DESIGNATED LOCAL AUTHORITY (SUCCESSOR TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF , CALIFORNIA) HELD ON AUGUST 2, 2018

The Regular Meeting of the CRA/LA, a Designated Local Authority and Successor to the Community Redevelopment Agency of the City of Los Angeles, California was held at the Kenneth Hahn Hall of Administration, 500 West Temple Street, Room B-22, Los Angeles, California, at 9:30 a.m. on August 2, 2018.

The meeting was called to order at 9:36 a.m. by Chair Semcken. As Recording Secretary, Angela M. Coleman recorded the minutes of the meeting.

Copies of meeting materials are available upon request and payment of nominal copying charges. Tapes of the meeting are available from CRA/LA for one year from the date of adoption of the minutes for the meeting.

ROLL CALL

Angela M. Coleman, Recording Secretary, took the roll and noted the following present:

Mee Semcken, Chair Ed P. Reyes, Vice Chair

Recording Secretary declared a quorum in attendance. Also in attendance were:

Steve Valenzuela, Chief Executive Officer, CRA/LA Daniel Kahn, Sr. Real Estate Development Agent, CRA/LA Tom Webber, CRA/LA Legal Counsel (Goldfarb & Lipman)

CONSENT ITEMS

1. APPROVAL OF JUNE 25, 2018 SPECIAL MEETING MINUTES.

2. LAND USE APPROVAL. REVIEW AND CONSIDER THE PROPOSED PROJECT’S MITIGATED NEGATIVE DECLARATION, ADOPT LAND USE FINDINGS, AND AUTHORIZE EXECUTION OF A LAND USE OWNER PARTICIPATION AGREEMENT WITH R.D. OLSON DEVELOPMENT, ALLOWING A 6:1 FLOOR AREA RATIO FOR DEVELOPMENT OF A HOTEL AT 6407 S. SUNSET BOULEVARD IN THE PROJECT AREA.

3. GRAND AVENUE PROJECT. AUTHORIZATION TO NEGOTIATE AND EXECUTE A SIXTH AMENDMENT TO THE EXERCISE OF JOINT POWERS AGREEMENT WITH THE COUNTY OF LOS ANGELES.

4. CONFLICT OF INTEREST CODE. ADOPTION OF RESOLUTION REVISING THE CRA/LA CONFLICT OF INTEREST CODE DUE TO CHANGES IN DESIGNATED

POSITIONS.

5. CULTURAL AND ART TRUST FUNDS. AUTHORIZATION TO EXECUTE TRANSFER OF ART FUNDS AND ASSIGNMENT OF ART COVENANTS AGREEMENT WITH THE CITY OF LOS ANGELES.

Vice Chair Reyes made a motion, seconded by Chair Semcken, to approve Item Nos. l, 2, 3, 4, and 5.

BOARD MEMBERS REYES & SEMCKEN APPROVED ITEM NOS. 1,2,3, 4, and 5.

ACTION ITEM(REQUIRES OVERSIGHT BOARD APPROVAL)

6. PROPERTY RETAINED FOR ENFORCEABLE OBLIGATION. ENVIRONMENTAL AND VARIOUS OTHER ACTIONS RELATED TO THE APPROVAL OF A DISPOSITION AND DEVELOPMENT AGREEMENT WITH EXCEL PROPERTY MANAGEMENT SERVICES, INC. IN CONNECTION WITH THE SALE FOR $166,000 OF A CRA/LA-OWNED PROPERTY IDENTIFIED AS LRPMP ASSET ID NO. 87 FOR DEVELOPMENT OF A 28,500 SQUARE FOOT, HIGH-QUALITY OFFICE BUILDING LOCATED AT 3900 W. JEFFERSON BOULEVARD.

Member of the public, Paul Rohrer, Loeb & Loeb LLP (representing Excel Property Management Services, Inc.), addressed the CRA/LA Governing Board and discussed planned changes to the development entity.

Daniel Kahn, Sr. Real Estate Development Agent, CRA/LA, presented the item and responded to questions posed by the Governing Board. Mr. Valenzuela also addressed the Governing Board and responded to questions.

Chair Semcken requested verification from Excel Property Management Services, Inc. (Excel) that Mr. Arman Gabaee is no longer an officer of Excel and possesses no financial stake or interest in the corporation. Chair Semcken requested the proper documentation be provided to the Successor Agency prior to the Governing Board taking action on the item. Vice Chair Reyes expressed similar concerns as Chair Semcken.

Chair Semcken made a motion, seconded by Vice Chair Reyes, postponed Item #6 to the next regular meeting of September 6, 2018.

BOARD MEMBERS REYES & SEMCKEN APPROVED THE RECOMMENDATION.

REPORTS (FOR INFORMATIONAL PURPOSES)

7. QUARTERLY REPORT ON CITY USE OF NON-HOUSING EXCESS BONDS (PERIOD ENDING DECEMBER 31, 2017)

8. SEMI-ANNUAL REPORT ON CITY USE OF NON-HOUSING EXCESS BONDS (PERIOD ENDING DECEMBER 31, 2017)

9. ANNUAL REPORT ON IMPLEMENTATION OF THE WIGGINS SETTLEMENT AGREEMENT

Mr. Valenzuela indicated that Item Nos. 7, 8, and 9 are included for informational purposes with no formal staff report.

By Common Consent, there being no objection, Item Nos. 7, 8, and 9 were received and filed.

BOARD MEMBERS REYES & SEMCKEN RECEIVED AND FILED ITEM NOS. 7, 8, and 9 UNANIMOUSLY.

10. CHIEF EXECUTIVE OFFICER' S REPORT

Mr. Valenzuela reported the following:

Department of Finance (DOF) • DOF approved the disposition plans for the Bunker Hill property Parcel Y-1, former Bethune Library, as well as the 1st and Boyle property. DOF also approved the easement agreement with Metro for Parcel L.

Los Angeles County Oversight Board Consolidation • The Los Angeles County Third Supervisorial District Oversight Consolidated Board, which has jurisdiction over certain CRA/LA matters, has decided to meet on the second and fourth Monday of the month.

PUBLIC COMMENT

11. Speaker’s form must be filled out and submitted to the Recording Secretary prior to the beginning of Public Comment. Each speaker is limited to two (2) minutes unless a time extension is allowed. Members of the public may address any item of interest within the subject matter jurisdiction of the Board.

There was none.

RECESS

The meeting recessed to Closed Session at 9:54 a.m.

CLOSED SESSION

12. a) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (54956.9(d)(1) of the Govt. Code) - two matters:

1) Hollywood Heritage, Inc. v. CRA/LA, et al. (LASC BC59645)- Potential Settlement

2) United States of America ex rel., Mei Ling, and Fair Housing Council of v. City of Los Angeles and CRA/LA (US District Court No. CV-11-00974 PSG (JCx)

RESUMPTION OF MEETING

The meeting reconvened at 10:47 a .m. with Vice Chair Reyes and Chair Semcken being present.

Mr. Tom Webber, Legal Counsel, stated that the CRA/LA Governing Board authorized the Chief Executive Officer to settle the matter pertaining to Hollywood Heritage vs. CRA/LA, et al. in the payment amount of $175,000 to Hollywood Heritage and $165,000 in attorney’s fees which will derive from the Self Insured Retention Fund.

13. ADJOURNMENT

The meeting adjourned at 10:48 a.m.

______Angela M. Coleman Recording Secretary