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Transfer of the “Hub” Building to the City Is Approved

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The La Palma City Council, at the Jan. 21, 2014 meeting, approved the transfer of the property at 5410 – 14 on La Palma Ave. from the Successor Agency to the City. The vote paves the way for the city to lease out the commercial space. Known as the “Hub” building, the space is a 10,507 square foot parcel improved with a 3,000 square foot retail commercial building. When fully occupied, the center will generate approximately $50,000 in revenue for the city and additional sales tax revenue from $1,500 to $2,000. Marketing efforts to begin leasing the commercial space will begin 6 months after approval from the Finance Department, which is expected in March.

Acquired in 2009 by the former Community Development Commission (CDC), the plan was to enlarge the Ralph’s grocery store that was adjacent to the property. However, when Ralphs closed their La Palma store in 2011, expansion plans were halted. When WalMart Neighborhood Market opened its store, the company declined the offer to also lease out the property, which would expand its sales space to 40,000 square feet. Since then it has hosted temporary uses by the Hub, La Palma Chamber of Commerce and Tapestry Walk Affordable Townhomes sales office.

Sixty Day Extension
The Council also approved a one-time 60-day extension from March to July 2014 relating to the agreement with La Palma Sign Partners to develop the concept of a digital billboard project. This will allow time for negotiations to continue and to reach agreement to secure the approvals to install electronic billboards along the 91 Riverside Fwy., said the City staff report.

La Palma Sign Partners said there has not been sufficient time, especially with the past holiday period, to complete property agreements and other elements necessary to move to the development agreement stage. The additional time was needed to negotiate and process third party real property transactions and perform the necessary environmental review prior to bringing the potential transaction to the City Council for consideration.

The Council noted that while members receive weekly reports, it needs to be better informed on the progress of the agreement. It voted to have all extensions be approved by the Council rather than by the City Manager with staff presenting regular updates.

The Council also approved sponsorship of the 2014 Cypress College Foundation Americana Awards (at the Benefactor Level of $2,500); acceptance of work for the new motor control center at City Yard Booster Station; and awarded a $26,700 contract to AES Water for the installation of a seismic actuated valve at Walker Street Reservoir.



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