CVAR's May-June Cities Report has arrived! For all the latest and greatest real estate industry, property development, city planning and community news, check out the report!

Cities Report - May/June 2023

REGION

On Saturday June 24th,  the Foothill Gold Line Construction Authority (Construction Authority) held a Track Completion Ceremony to celebrate the completion of major work for the new light rail track system for the 9.1-mile, four-station Foothill Gold Line light rail project from Glendora to Pomona. The celebration took place at the D Street railroad crossing in La Verne, Calif., just steps away from the University of La Verne campus and one of the four new light rail stations that will serve future riders. The event culminated in the installation of the 230,630th rail clip (rail clips permanently attach the steel rail to the concrete railroad ties), officially completing major construction for the new light rail tracks, and permanently connecting the cities of Glendora, San Dimas, La Verne and Pomona via this new light rail line. An engraved, commemorative boulder embedded in the sidewalk was also unveiled during the ceremony, recognizing the importance of the day to these corridor cities.

The  historic event was attended by hundreds of community members, elected officials at all levels of government, the Foothill Gold Line Board of Directors, members of the Los Angeles County Metropolitan Transportation Authority (Metro) Board of Directors, transportation officials – including Foothill Gold Line CEO Habib F. Balian and Metro CEO Stephanie Wiggins – and San Gabriel Valley stakeholders. The notable list of speakers included U.S. Representatives Grace Napolitano and Judy Chu; California State Senator Susan Rubio; California State Assembly Members Chris Holden, Freddie Rodriguez and Blanca Rubio; Metro Board Members and Los Angeles County Supervisors Hilda Solis and Kathryn Barger; Metro Board Member, Foothill Gold Line Board Member and Pomona Mayor Tim Sandoval; Foothill Gold Line Board Chair and Claremont Mayor Ed Reece; Foothill Gold Line Board Vice Chair and Glendora Mayor Pro Tem Mendell Thompson; and Foothill Gold Line Board Member, La Verne Mayor Tim Hepburn and JPA Secretary/Treasurer, Montclair Councilmember Bill Ruh.  Past and present Foothill Gold Line board members, as well as mayors and council members from throughout the Foothill corridor, also attended. 790 KABC radio host Frank Mottekserved as the Master of Ceremonies.

Since major construction on the project began in July 2020, work has been underway or completed on the new light rail system; 19 new or renovated bridges, including four bridges spanning major streets and intersections; 21 at-grade railroad crossings; four new stations, including public artwork for the stations; freight track relocation; project walls; and more. Nearly all major construction activities will be completed this year, with testing of the new light rail system expected to begin by the end of the year. The project is now 72% complete overall and remains on schedule to be completed in early-January 2025, when it will be turned over to Metro for training and pre-revenue service. Metro determines when passenger service starts.

The Foothill Gold Line was Metro's first Measure M-funded light rail project to break ground.

Construction of the light rail track system was a unique and complicated undertaking, due to the existing, active freight track that initially sat in the middle of the now-shared rail corridor. Specialized track crews had to first relocate the freight track to the northern or southern half of the corridor – while still allowing limited freight service – in order to make room for the new light rail system. Following the completion of the freight track relocation in mid-2022, work began on constructing two new light rail tracks – one each for future westbound and eastbound trains. While the new light rail tracks and relocated freight track now share the corridor, the light rail trains and freight trains will not share tracks.

When completed, the light rail project will add new stations to the Metro A Line (renamed the A Line after last week's opening of the Regional Connector) system in the cities of Glendora, San Dimas, La Verne and Pomona – and increase ridership on the Metro system by an estimated 11,600 daily weekday boardingswhen the extension opens for passenger service. It will provide connections to important regional destinations like the LA County Fairplex, colleges and universities, historic downtowns, museums, regional parks and open space areas, and much more. In addition, the extension will provide a direct link between the Metro and Metrolink systems in Pomona, allowing riders from each system to easily transfer – creating endless possibilities for connections throughout the region. The Construction Authority is currently seeking additional funding to complete the project to Claremont and Montclair, which would add an additional nearly 8,000 daily weekday boardings to the Metro system when completed.

The Foothill Gold Line Construction Authority is an independent transportation planning and construction agency created in 1998 by the California State Legislature to plan, design and build the Metro Gold Line (recently renamed the Metro A Line) light rail system from Union Station to Montclair. The agency completed the first segment from Union Station to Pasadena in 2003 and the Pasadena to Azusa segment in 2015; both on time and under budget. The agency began planning for the Glendora to Montclair segment in 2003. When completed, the segment will add new light rail stations in the cities of Glendora, San Dimas, La Verne, Pomona, Claremont and Montclair. The project will be built in phases, due to funding constraints. The current 9.1-mile construction segment is funded mostly by Measure M, along with residual funds from Measure R not used to complete the Pasadena to Azusa segment. The project is also utilizing a State of California TIRCP (greenhouse gas reduction) grant. The Construction Authority is currently seeking funding to complete the final segment from Pomona to Montclair (including the Claremont and Montclair stations).

AZUSA

A joint venture between housing nonprofit Bold Communities and residential developer California Landmark Group has acquired the Alosta Gardens, a 61-unit apartment complex in Azusa.

The partnership paid $35.2 million for the 58,000-square-foot property, according to a deed filed in Los Angeles County. The property, 745 East 5th Street which sits just a few blocks from Azusa Pacific University, is a two-story building with a single one-bedroom apartment, 38 two-bedroom units and 22 three-bedroom units.

The price works out to about $577,000 per unit.

The seller is a partnership that includes Southern California-based housing nonprofit AOF/Pacific Affordable Housing. The partnership bought the housing complex for $8.3 million in 2012, records show.

CHINO

A $6.9 million dollar deficit is anticipated in the City of Chino’s budget over the next two fiscal years. The two-year budget, the first of its kind, was unanimously approved by the city council on Tuesday June 20th.

The purpose of the biennial budget is to help the council and staff focus on the long-term strategic aspects of budgeting.

The deficit is due to inflation and increased costs of services to maintain public safety, aging streets, public parks, and providing community events, according to the “Chino Budget in Brief Report.”

Fiscal year 2023-2024

General Fund expenditures are projected at $118 million, with a deficit of $3.3 million, according to the report. The deficit combined with the city’s use of $2.4 million in General Fund reserves for parks and public facilities projects will result in a $5.7 million reduction of reserves, according to Director of Finance Rob Burns.

General Fund operating revenues are $112.3 million, with sales tax the largest source of revenue at $36.9 million, property tax at $34 million, and development- related revenue at $11.1 million.

Estimated general fund reserves are projected at $63.8 million by the end of the fiscal year.

Almost half of the city’s budget—$53 million—is for the operation of the police department. Last year’s police budget was projected at $47.7 million.

Salary expenditures are projected to increase $4.5 million, which covers full-time, part-time, and overtime salaries. Fourteen new full-time positions have been added.

Capital Improvement Project Budget

An amount of $120.3 million is being proposed for the capital improvement project budget, with water treatment projects at $41.5 million, sewer construction and relining projects at $7.6 million, storm drain projects at $10.1 million, and alleyway rehabilitation at $2.1 million.  The city is expected to spend $42.7 million on street and traffic projects in fiscal year 2023-2024 alone, and $10.5 million will be used towards parks improvements, including Ayala Park’s buildings, softball fields, and trail system. Significant projects include $5.2 million for street rehabilitation.

A pavement rehabilitation analysis conducted by the city showed that $11.8 million is required per year for the next 10 years to improve Chino’s roadways, according to the “Chino Budget in Brief.”  The city anticipates an annual $7 million funding shortfall for the pavement management budget.

Fiscal year 2024-2025

General Fund expenditures are projected at $115.1 million, with a deficit of $3.6 million. The deficit combined with the city’s use of $3.5 million in General Fund reserves for parks and public facilities projects will result in a $7.1 million reduction of reserves, Mr. Burns said.

General Fund operating revenues are $111.5 million, with sales tax the largest source of revenue at $38.1 million, property taxes at $35.2 million, and development-related revenues at $11.5 million.

Estimated General Fund reserves are projected at $56.9 million by the end of the fiscal year. This is $16.3 million less than the $73.2 million reserve funding stored at the beginning of fiscal year 2023-2024.

The police department will receive $53.6 million.

Capital Improvement Project Budget

The capital improvement project budget is projected to be $35.9 million, with $12.4 million going to the Water Fund and $1.3 million for storm drain projects. The city is not projecting to set money aside for sewer construction or alleyway rehabilitation, said Vivian Castro, City of Chino spokeswoman.  

The city is estimating $17.9 million to be spent on street projects and will set aside $1.7 million towards parks projects.

CHINO HILLS

The City of Chino Hills has completed the installation of new court lighting at the Vellano Park pickleball courts, located at 16321 Aviano Lane, encouraging extended

play hours until 10:00 p.m. daily. The new lighting provides an enhanced experience for pickleball enthusiasts to play longer into the evening hours.

Pickleball has rapidly gained popularity in Chino Hills, attracting players of all ages and skill levels. With the growing demand for more playing opportunities, the City heard the desire from residents and recognized the need for lighting to extend the available hours of play.

The project, which was completed on May 30, 2023, involved the installation of state-of-the art LED lighting fixtures designed to minimize light pollution while maximizing visibility on the courts. These energy-efficient lights ensure optimal illumination, allowing players to fully enjoy their games and maintain the highest level of performance.

The total project cost for the new lighting fixtures was approximately $158,000 funded by the City’s General Fund. For more information on the available amenities at Vellano Park, please visit www.chinohills.org/VellanoPark. For questions on the project or usage of the pickleball courts, please contact the City’s Recreation Office at (909) 364-2700.

CLAREMONT

The City of Claremont is reminding residents and visitors that parking a vehicle on or across a public sidewalk is not just illegal, but makes sidewalks less safe and accessible, especially to those in wheelchairs, the visually impaired, or those pushing strollers. California Vehicle Code Section 22500 prohibits the stopping or parking of a vehicle, whether attended or unattended, on any portion of the sidewalk. A vehicle parked in violation of this law can be cited and/or towed. The purpose of this law is to ensure the safe passage of you and your neighbors while using the sidewalk. The Police Department’s parking enforcement officers will be keeping an eye out for violators of this law. Please respect the law and help us keep the sidewalks clear.

COVINA

Lee & Associates-Pasadena closed a deal for Royale Oaks Offices Building, located at 1272-1274 Center Court Dr. in Covina, in an all-cash sale for $4,028,000. Represented by principals Jamie Harrison and Christopher Larimore, the property was sold near its asking price to an international investor at a 4.1% cap rate.

Located in the Village Oaks Business Park, the 19,300-square-foot, two-building Royale Oaks was 81.55% occupied at the time of sale. Renovations by its previous ownership included new exterior staircases, paint, and landscaping.  The investor closed all cash within 60 days from the opening of escrow.”

DIAMOND BAR

Progress continues along Grand Avenue as part of the intersection improvement project. This past week construction consisted of the installation of streetscape elements, including tree grates, colored sidewalks, electrical lighting, and landscaping. For further project information, please contact the Public Works Department at (909) 839-7040.

GLENDORA

The City's Proposed 2-Year Budget for fiscal years 2023/24 & 2024/25 are available for the public to view in an interactive, online booklet.  

The budget is a critical strategic and policy document, containing information on the City’s financial position, financial challenges, upcoming opportunities, and which important strategic initiatives have been funded. Each section of the Two-Year Budget is designed to provide information in multiple ways to assist the readers in understanding the complex operations that make up the City of Glendora government.

The link: https://www.cityofglendora.org/departments-services/finance/finance-reports

The document  is an interactive budget document; as you "click" through the various pages of the budget, you will notice various sections have links embedded in the images or words that allow the reader to dig deeper into a topic through information on the City’s website. The graphs and tables also allow for the user to dive deeper to see more data and granular details.

The Two-Year Budget is guided by City Council policy directives, input from the Glendora Community (2022 Community Survey), local/State/Federal mandates (both funded and unfunded), and long-term strategic planning (2023-2025 Adopted Strategic Plan). The 2023-2025 Strategic Plan is incorporated into the FY 2023-2025 Two-Year Budget to implement a, “what gets funded, gets done” philosophy.

LA PUENTE

A ceremony  by Linc Housing Corp. marked the completion of a new affordable and permanent supportive housing complex in the City of La Puente.

The Equa apartments, located at 162 S. 3rd Avenue, consists of a six-story building that features 80 one-, two-, and three-bedroom apartments. Of that total, 34 units are reserved for formerly homeless residents, and the remaining apartments are set aside for renters earning between 30 and 70 percent of the area median income level.

The building, which is named to acknowledge La Puente's equestrian history, also includes two courtyards, a tot lot, and a ground-level community room.

Residents of the new apartment complex have access to on-site supportive services, including employment counseling, mental health services, money management, adult education, and other offerings.

According to a news release, Linc received more than 2,000 pre-applications for the 35 affordable units, while the supportive housing was filled through referrals from the L.A. County Coordinated Entry System. The 11 remaining affordable units are being filled through referrals from the L.A. County Development Authority's rental voucher waiting list.

Linc Housing funded Equa through a variety of public and private sources. It is one of numerous projects the developer currently has in the works in L.A. County, including a 340-unit apartment complex which will be the largest affordable housing development in the City of Glendale when completed.

LA VERNE

The City of La Verne has released their 2023-2024 budget.  The link to the budget:  https://www.cityoflaverne.org/DocumentCenter/View/2938/Proposed-2023-24-Annual-Budget

ONTARIO

VF Corporation (NYSE: VFC), a leading portfolio of active-lifestyle brands, announced it has launched operations at its new distribution center in Ontario, California, employing approximately 550 people during peak periods.

The new 1.2 million square foot facility is the largest and most efficient within VF’s global network of 46 distribution centers. The facility's state-of-the-art automation and capabilities, implemented in partnership with Vanderlande Industries, will enable VF to provide more efficient distribution services for its owned retail stores, wholesale customers and owned e-commerce orders.

The center’s 76-million-unit annual shipping capacity will initially service Vans® and The North Face® with the capability to add more VF brands. With a digital-first design, the center has the capacity to ship 485,000 units per day – twice the processing capacity and efficiency compared to a traditional distribution center – and provide next day e-commerce fulfillment for consumers in California, Nevada, Arizona and southern Utah.

The new center was designed to support VF’s sustainability commitments, with features and innovative systems that help reduce the impact on the environment, including an estimated 56% in annual energy cost savings through energy efficient lighting, controls and submetering, a total of 48% recycled content in building materials, diversion of 98% of construction waste from the landfill, and designing for daylight and views in the regularly occupied areas of the building. The building design and construction has achieved LEED Gold certification. LEED, or Leadership in Energy and Environmental Design, was created by the U.S. Green Building Council (USGBC) and is the world’s most widely used green building rating system. The building is on track to receive WELL Gold certification, a performance-based standard that focuses on enhancing health and wellness, managed and administered by the International WELL Building Institute (IWBI).

Recruitment for the fulfillment center took place throughout early 2023. A majority of the roles have been filled, with additional operator jobs to be added as volume increases.

POMONA

Aries Capital has announced the closing of a $50 million bridge loan for the acquisition of a $65.5 million, 290,195-square-foot industrial property in Pomona, California. Closed in just 17 days on behalf of buyer Hawkeye Holdings, LLC, the 3-year interest-only loan was arranged by Director of Capital Markets Brandon Perdeck, Director of Acquisitions Matt Carney and Assistant Vice President Steve Adams through a national balance sheet lender.

The sales transaction was negotiated by Lee & Associates, one of the largest national commercial real estate providers with regional expertise, and was the largest industrial transaction completed in Pomona in 2022. Ron Mgrublian, principal with Lee and Associates Los Angeles – Long Beach, along with Ed Matevosian, first vice president with CBRE in Glendale, CA, represented the buyer in the transaction.

The warehouse/distribution facility was built in 1982 and is located on a 9.5-acre site at 2875 Pomona Boulevard near the 10/57 interchange within Los Angeles County. The new owner plans to continue to master lease the entire property for its own use, a leading automobile wheel manufacturer and distributor Katana Racing, Inc. The property’s sub-tenant Yamamotoyamais the oldest tea company in Japan, having been family owned and operated since 1690.

RANCHO CUCAMONGA

San Antonio Regional Hospital has acquired a 127,000-square-foot office building in Rancho Cucamonga for $22.2 million.

The building is located at 11000 Eucalyptus St. San Antonio Regional Hospital is an Upland-based regional healthcare provider that will convert the asset into medical office space.

SOUTH EL MONTE

One of the country’s largest trucking companies unveiled one of the largest heavy-duty EV charging stations of its kind in South El Monte.

On a site the size of a half football field, the Schneider National Operations Center in South El Monte now has 16 heavy-duty chargers capable of charging 32 battery electric trucks at the same time.

Each charger can refuel two trucks at the same time

Schneider National has purchased 92 battery electric Freightliner eCascadias to make deliveries for Frito-Lay and Goodyear

About half of the trucks were funded through a public-private partnership known as the Joint Electric Truck Scaling Initiative

Made by Daimler Truck North America and able to travel 220 miles on a single charge, Schneider is currently using the trucks to haul deliveries for Frito-Lay North America and Goodyear and is recharging them at the South El Monte depot with dual-cable chargers that can power up a truck in as little as 90 minutes or overnight.

Working as the Joint Electric Truck Scaling Initiative, the group is part of the statewide California Climate Investments initiative that uses cap-and-trade money to reduce greenhouse gas emissions while simultaneously bolstering the economy and improving public health.

JETSI, as it’s known, was established to increase the number of zero-emission heavy-duty trucks as California works toward its goal of requiring heavy-duty truck manufacturers to phase out diesel-powered models by 2036.

Once Schneider deploys all 92 eCascadias, they are expected to avoid over 81,000 pounds of carbon dioxide emissions daily — the equivalent of removing 2,400 gas-powered cars from the road. Schneider has set a goal of reducing its carbon dioxide emissions 7.5% per mile by 2025 and 60% per mile by 2035.

The 16 heavy-duty chargers at its South El Monte Operations Center provide 6 megawatts of electricity — enough to power 200,000 homes, according to installer Black & Veatch.

To support that transition to electric trucks, the California Energy Commission says the state will need about 160,000 heavy-duty chargers by 2035.

UPLAND

Effective July 1, 2023 Burrtec Waste Industries (Burrtec) will assume residential trash billing and customer service functions on behalf of the City of Upland.

Trash will continue to be billed bi-monthly but will now be billed by Burrtec and separately from sewer service. The final prorated trash bill from the City will be issued in July or August, depending on your regular billing cycle. The first trash bill from Burrtec will be issued at the end of August.

Payments for trash service should be mailed as indicated on the new bill. Customers that would like to pay for their trash bill through automatic payment will need to sign-up for auto pay through Burrtec's Online Bill Pay portal.  For assistance, please contact Burrtec Customer Service at 909-949-0500.

Existing auto payments for water and sewer service will not be affected by this change.

All residential trash billing and service inquiries should be directed to Burrtec Customer Service at 909-949-0500.

WALNUT

The Habit is coming to Walnut The City was notified that  Staffwas notified The Habit will be replacing Jack in The Box located at 1245 N. Grand Avenue (across from Mount SAC)MTSAC) in the coming months. Improvemen tplans have been submitted to the City to remodel the existing building andrive-thru to facilitate The Habit’s new location. Currently, a timeline is not available as to when work will be expected to begin; however, The Habit representatives desire to move quickly once improvement plans have been approved by all Agencies (e.g. Fire, Public Health, etc.). Staff will provide updates once additional information and timelines are available

The City also announced A new mixed-use project is preparing to break ground this Summer at 20225 Valley Boulevard. The revisioning of the 1.3- Acre automotive service/repair site will incorporate thirty-three (33) residential units comprised of lofts and townhomes, and will include a small retail/commercial space. The project is located at the easterly gateway into the West Valley Specific

Plan (WVSP) District. The WVSP is a long-range development plan to transform Valley Boulevard between the Project site and westerly City limit with a mix of residential housing opportunities

and smaller neighborhood serving retail/commercial uses, such as coffee shops and eateries. For more information on the Project please contact the Planning Division at (909) 595-7543.

And, the City of Walnut is pleased to announce that the sale of the Magnolia Property will be closing escrow this month. Following dozens of inquiries and receipt of thirty (30) applications, staff has identified an eligible buyer that meets the narrowly specified requirements of being age and income restricted to purchase the home at an affordable price ($404,036). Following the sale of the property the

owner will be required to occupy the Property as their principle residence to ensure the affordability

and sale restrictions are preserved.

WEST COVINA

On Thursday, May 18, 2023, City Manager David Carmanysubmitted his resignation, effective immediately. His resignation was subsequently accepted by Mayor Rosario Diaz and the City Council in a 5-0 vote. Carmany was appointed to City Manager in August of 2019, and brought with him 35 years of public service experience.

Working with the City Council, Carmany increased organizational efficiencies, improved labor relations, and sought cost-efficient energy-saving measures to revitalize City facilities and reduce West Covina’s carbon footprint.

The City has moved to immediately appoint an Acting City Manager and looked within the organization to appoint Assistant City Manager Paulina Morales. Ms. Morales has served the City of West Covina for the past 19 years. Having started as an intern, she held various capacities over the years and, most recently, was appointed Assistant City Manager in 2021.

For information about the City of West Covina, please visit https://www.westcovina.org/.