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HomeMy WebLinkAbout1999-074 , " . . RESOLUTION NO. 1999-74 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO CLOSING A JOINT PUBLIC HEARING AND AUTHORIZING THE DISPOSITION OF CERTAIN PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT (2204 SUNRISE LANE AND 2205 EAST 19TH STREET) 3 4 5 6 7 WHEREAS, the City of San Bernardino ("City") is a municipal corporation an 8 charter city organized and existing pursuant to the constitution of the State of California; and 9 10 11 WHEREAS, the Redevelopment Agency of the City of San Bernardino (th 12 "Agency") owns certain real property commonly known as 2204 Sunrise Lane and 2205 East 19t 13 Street, San Bernardino (the "Property") which the Agency acquired and improved for use an 14 occupancy by public service providers of community-based programs; and 15 16 WHEREAS, the San Bernardino City Unified School District (the "School District") 17 has indicated an interest in acquiring a leasehold interest in the Property from the Agency, togethe 18 with an option to purchase the Property from the Agency, in order for the School District to use an 19 20 occupy the Property to provide certain public education-related community services from facilities 21 located on the Property; and 22 23 WHEREAS, the School District proposes to acquire such an interest in the Propert 24 from the Agency on the terms and conditions set forth in that certain Lease Agreement dated as 0 25 < " , Res 1999-74 2 3 4 5 6 7 8 9 10 11 12 13 14 15 February I, 1999 (the "Lease-Option Agreement"), by and between the School District and th Agency. The Lease-Option Agreement is on file with the City Clerk. NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE ClT OF SAN BERNARDINO, DO HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. On April 19, 1999, the Mayor and Common Council of the City conducted a joint public hearing with the Community Development Commission of the City, the governing board of the Agency, in accordance with the provisions of Health and Safety Code Sections 33431 and 33433, relating to the disposition and redevelopment of the Property by the School District pursuant to the terms of the Lease-Option Agreement. The minutes of the City Clerk shall include a record of all communications and testimony submitted to the Mayor and Common Council by interested persons relating to this matter. The Mayor and Common Council hereby 16 acknowledge receipt ofthe Summary Report, dated March 29, 1999, which relates to this matter and 17 which was considered by the Mayor and Common Council during the joint public hearing. 18 19 Section 2. The Mayor and Common Council hereby acknowledge receipt of a 20 resolution entitled "RESOLUTION OF THE COMMUNITY DEVELOPMENT 21 COMMISSION OF THE CITY OF SAN BERNARDINO CLOSING A JOINT PUBLIC HEARING AND AUTHORIZING THE DISPOSITION OF CERTAIN PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT (2204 SUNRISE LANE AND 2205 25 EAST 19TH STREET)". 22 23 24 , " 'Res 1999-74 Section 3. The Mayor and Common Council hereby authorize the Agency t 2 dispose of the Property to the School District pursuant to the Lease-Option Agreement. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . ' Res 1999-74 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA BERNARDINO CLOSING A JOINT PUBLIC HEARING AND AUTHORIZING TH DISPOSITION OF CERTAIN PROPERTY BY THE REDEVELOPMENT AGENCY OF TH CITY OF SAN BERNARDINO TO THE SAN BERNARDINO CITY UNIFIED SCHOO DISTRICT (2204 SUNRISE LANE AND 2205 EAST 19TH STREET) 3 4 Section 4. This Resolution shall take effect from and after its passage an 5 6 adoption. 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayo joint 8 and Common Council of the City of San Bernardino at a reRUlarl meeting thereof, held 0 reconvene 9 the 19th day of Avril 10 Council: AYES II ESTRADA x LIEN x 12 MCGINNIS x SCHNITZ x 13 DEVLIN x ANDERSON 14 MILLER x IS 16 , 1999, by the following vote, to wit: ABSTAIN ABSENT NAYS x J()Yld~ [). J!u..PI'IU:Jfl1 t>>.1JLt.i4 City Clerk / 0 17 The foregoing resolution is hereby approved ~day of -2\ \ ,1999. ~/~ Esther R. Estrada Mayor Pro Tempore City of San Bernardino 18 19 20 21 By: 22 23 24 25 Res 1999-74 NOTICE OF JOINT PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO PURSUANT TO HEALTH AND SAFETY CODE SECTIONS 33431 AND 33433 REGARDING THE APPROVAL OF A CERTAIN LEASE AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT PLEASE TAKE NOTICE that the City Council of the City of San Bernardino, California (the "City Council") and the Redevelopment Agency of the City of San Bernardino (the "Agency") will conduct a joint pUblic hearing of the City Council and the Agency at 2:00 p.m. on April 19, 1999, in the City Council Chambers at City Hall, 300 North "D" Street, San Bernardino, California, 92418. At the public hearing, the City Council and Agency shall receive evidence and testimony and consider the approval of that certain Lease Agreement (the "Agreement") by and between the Agency and San Bernardino City Unified School District (the "District"). NOTICE IS FURTHER GIVEN that any and all persons are invited to appear before the City Council and Agency and present evidence or testimony conceming the foregoing matters at the time, date and place set forth herein. The public hearing will be conducted pursuant to the provisions of Health and Safety Code Sections 33431 and 33433. Among other matters, the Agreement concerns the proposed disposition by the Agency to the District of certain real property located at 2204 Sunrise Lane and 2205 East 19th Street in the City of San Bernardino. The Agreement provides that the Agency will lease to the District with an option to purchase, the property in order to continue the use of the property for the provision of community services. A Summary Report setting forth certain details of the proposed Agreement has been prepared pursuant to the requirements of Section 33433 of the Health and Safety Code. Copies of the proposed Agreement and the Summary Report are on file and are available for inspection and copying at a cost not to exceed the cost of duplication, during normal business hours at the office of the Agency Secretary at 201 North "E" Street, Suite 301, San Bernardino, California 92401. Notice given this 29th day of March, 1999. CITY OF SAN BERNARDINO BY:~~h.~ Ci lerk [' Res 1999-74 SUMMARY REPORT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433 OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW ON A LEASE AGREEMENT BY AND BETWEEN THE SAN BERNARDINO REDEVELOPMENT AGENCY AND THE SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT INTRODUCTION This summary report has been prepared for the San Bernardino Redevelopment Agency (Agency) pursuant to Section 33433 of the California Health and Safety Code. This report sets forth certain details of the proposed Lease Agreement (Agreement) between the Agency and San Bernardino City Unified School District (District), regarding a Community Center in the Arden-Guthrie Area located at 2204 Sunrise Lane and 2205 East 19th Street in the City of San Bernardino. This report is organized into the following seven sections: A. Salient Points of the Proposed AQreement: This section includes a description of the project and the major responsibilities to be assumed by the Agency and the District. B. Cost of the Aareement to the Aaency: This section outlines the total and net costs of the proposed Agreement to the Agency. C. Estimated Value of the Interests to be Conveyed Detennined at the HiQhest Use Permitted Under the Redevelopment Plan: This section summarizes the value of the Site to be conveyed to the District at the highest use permitted. D. Estimated Reuse Value of the Interests to be Conveyed Detennined Based on the Reauired Use and with the Conditions. Covenants and Development Costs Reauired by the Proposed Aareement: This section summarizes the value of the Project determined at the use required by the proposed Agreement, recognizing the impact of the proposed Agreement's terms and conditions. E. Consideration Received and Comparison with the Fair Reuse Value: This section describes the compensation to be received by the Agency, and the reasons for any difference between the compensation and the fair reuse value. - I - Res. 1999-74 F. Bliaht Alleviation: This section describes the existing blighting conditions on the Site, and an explanation of how the proposed Agreement will assist in alleviating the blighting conditions. G. Conformance with the AB 1290 Implementation Plan: This section identifies how the proposed Agreement will result in a development that fulfills goals and objectives established in the Agency's AS 1290 Five Year Implementation Plan. I. SALIENT POINTS OF THE PROPOSED AGREEMENT A. Description of the Proposed Project The purpose of the proposed Agreement is to effect the operation of the Community Center in the Arden-Guthrie area. Based on the proposed Lease agreement with the District, the proposed project would enable a coalition of public and non-profit agencies (known as the Emmerton Healthy Start Community Collaborative) to continue to provide community services to Arden- Guthrie residents, known as the Emmerton Healthy Start Community Collaborative. The Agency owns the buildings and will convey the property to the District through a Lease agreement. Although the property is not located within a redevelopment project area, it was acquired for affordable housing purposes using low and moderate income set aside funds. This was part of an overall strategy to preserve a deteriorating residential neighborhood. B. Agency Responsibilities 1. Enter into a Lease Agreement with the District for a period of three (3) years with four 3-year options. C. District Responsibilities 1. Enter into a Lease Agreement with the Agency for a period of three (3) years with four 3-year options. 2. Pay to the Agency initial rent of $500 per month, net, net, net, subject to annual CPI adjustments not to exceed 5% per annum. 3. Assume all responsibilities for property maintenance and management. 4. Provide property and liability insurance. 5. Continue to use the buildings for community services through the Emmerton Collaborative. - 2 - Res 1999-74 II. COST OF THE AGREEMENT TO THE AGENCY The costs incurred by the Agency are provided below: Site Acquisition Building Retrofit Total Agency Costs $279,495 $502,281 $781.776 The District shall have the right to purchase the properties at the end of 15 years for one dollar each. This is based upon an appraised value of $56,000 for both buildings. At any time during the lease term, the District may initiate early purchase of the properties by prepaying future rents (Le. the unpaid portion of rents based upon a 15-year term excluding future CPI adjustments). The District may exercise this right upon 30 day written notice. III. ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED AT THE HIGHEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN. The estimated fair market value of the interest to be conveyed, determined at the highest uses permitted, is approximately Fifty-Six Thousand Dollars ($56,000). This value is supported by an appraisal report prepared by James Smothers, MAl, dated February 23,1999. IV. ESTIMATED REUSE VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED BASED ON THE REQUIRED USE AND WITH THE CONDITIONS, COVENANTS AND DEVELOPMENT COSTS REQUIRED BY THE PROPOSED AGREEMENT The Site will be conveyed to the District for the highest use value permitted. V. CONSIDERATION RECEIVED AND COMPARISON WITH THE FAIR REUSE VALUE As noted above, the Site is being conveyed to the District at its highest use value. VI. BLIGHT ALLEVIATION Since the property is not in a Redevelopment Project Area and is being leased to the School District for public education purposes, the provisions of Health & Safety Code Section 33433b(3) are not applicable. - 3 - . Res 1999-74 VII. CONFORMANCE WITH THE AB 1290 IMPLEMENTATION PLAN The Five-Year Implementation Plan adopted by the Agency contains several broad operational goals and objectives. Among these are the following: 1. Creation of incentive programs for existing property owners to reinvest in their properties, including the utilization of Disposition and Development Agreements and Owner Participation Agreements. 2. Creation of viable housing options within the Redevelopment Project that span a range of incomes, including housing for the homeless and formerly homeless. 3. Creative implementation of catalyst projects which spur reinvestment on surrounding blocks. 4. Land acquisition for the creation of public facilities, which serve both the immediate neighborhood and the community at large. 5. Enhancement of ceremonial streets that function as the focal points in their individual neighborhoods. 6. Continued preservation of historically significant structures. 7. Improvements to existing water and sewer lines, streets, sidewalks, parkways and lighting in the public right-of-way. 8. Continued participation in the enhancement of the public infrastructure system. 9. Acquisition and development of property to abate nuisance uses and provide for future development. The proposed Agreement will assist the Agency in meeting some of the objectives and goals of its Five-Year Implementation Plan in the following ways: 1. The Agreement encourages reinvestment revitalization in the blighted neighborhood. 2. The execution of a Lease agreement with the district will continue with the redevelopment activities of providing public education programs and community services. Based upon the preceding factors, the proposed Agreement is consistent with the adopted Five-Year Implementation Plan. -4- Res 1999-74 The execution of a Lease agreement is subject to the closure of public hearing with a majority approval vote by the Agency. The execution by the School District is subject to the approval of the proposed Lease agreement and applicable provisions of the California Education Code. Dated: March 29, 1999 REDEVELOPMENT AGENCY OF THE CITY OF BER OINO BY: SMM:summary report-Arden Guthrie Community Center - 5 .