HomeMy WebLinkAboutR19-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco
Deputy Director
SUBJECT:
PUBLIC HEARING - REALLOCATION
OF 2001/2004 COMMUNITY
DEVELOPMENT BLOCK GRANT
(CDBG) FUNDS; USE OF 2004/05 CDBG,
EMERGENCY SHELTER GRANT (ESG),
AND HOME FUNDS; APPROVAL OF
SECTION 108 LOAN GUARANTEE
APPLICATION
DATE:
April 9, 2004
OR\G\NAL
Svnonsis of Previous Commission/Council/Committee Actionls):
On March 16, 2004, Redevelopment Committee Members Estrada, Longville and McGinnis unanimously voted to
recommend that the Mayor and Common Council consider this action for approval.
Recommended Motionls):
OPEN/CLOSE HEARING
(Mavor and Common Council)
MOTION A: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO: (I) APPROVING THE 2004/05 CDBG APPROPRIATIONS IN ATTACHMENT I
AS RECOMMENDED BY THE COMMUNITY DEVELOPMENT CITIZEN ADVISORY
COMMITTEE (CDCAC); (2) APPROVING THE 2004/05 HOME AND EMERGENCY SHELTER
(ESG) GRANT APPROPRIATIONS; (3) APPROVING THE 2001/2004 CDBG REALLOCATION
OF FUNDS; (4) AUTHORIZING THE MAYOR TO EXECUTE AND SUBMIT TO HUD
APPROPRIATE DOCUMENTS AND TO TAKE ALL NECESSARY ACTIONS TO IMPLEMENT
THE CITY'S 2004/2005 ANNUAL ACTION PLAN, INCLUDING EXECUTION OF CONTRACTS
WITH PUBLIC SERVICE AGENCIES.
MOTION B: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING AND AUTHORIZING THE SUBMITTAL OF A SECTION 108
LOAN GUARANTEE APPLICATION ("APPLICATION") TO FACILITATE TWO
REDEVELOPMENT AGENCY PROJECTS (I) MERCADO SANTA FE (SUBAREA B, OF
UPTOWN REDEVELOPMENT PROJECT AREA) AND (2) NORTH ARDEN-GUTHRIE
RETAIL/ENTERTAINMENT SHOPPING CENTER (IVDA PROJECT AREA) TO THE U.S.
_______m______________l?J~R~I~~NT QF HQUSING AND_URBAN DEVELOPMENT ("HUD").
Contact Person(s):
Maggie Pacheco
Citywide/Uptown
and IVDA Project Areas
Phone:
(909) 663-1044
Project Area(s)
Ward(s):
1-7
Supporting Data Attached: Ii"I Staff Report Ii"I Resolution(s) 0 Agreement(s)/Contract(s) Ii"I Map(s) Ii"I LetterslMisc.
SIGNATURE:
7,779,527
Source: CDBG, ESG, HOME & Section 108Loan
FUNDING REQUIREMENTS
Commission/Council Notes:
R~.j.l '2.{"Q'\-II::>\
2ctA- 11::>2-
.---------
P:\Agendas\Comm Dev Commission\COC 2004\04-04-19 CDSO Rec SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 04/1912004
Agenda Item Number: ~
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
Public Hearinl! - Reallocation of
200112004 Community Development Block Grant (CDBG) Funds:
Use of 2004/05 CDBG. Emerl!encv Shelter Grant (ESG). and HOME Funds:
Approval of Section 108 Loan Guarantee Application
BACKGROUND:
The City will receive approximately $4,274,000 in CDBG funds, $1,883,748 ($144,924 - American
Dream Downpayment Initiative [ADD!] - fiscal years 2003 and 2004) in HOME Investment
Partnership Act (HOME) funds and $159,779 in ESG funds for a total of $6,3 17,527 in federal funds
for fiscal year 200412005.
CURRENT ISSUE:
1. CDBG
A. Fiscal Year 2004/2005
In October 2003, Staff solicited a Request for Proposals to receive applications for funding for the
provision of public services only. A total of thirty-one (31) applications were received from local
nonprofit agencies providing services ranging from child care, youth programs, crisis intervention,
job training, homeless services, medical and dental services, and services for seniors. Twenty-seven
(27) were repeat applicants and four (4) were new applicants. One (1) out of the four proposals,
Rebuilding Credit Services, was ineligible. Of the $4,274,000 in CDBG funds, $300,000 was
budgeted for public service programs for the 2004/2005 Program Year.
All proposals received were first evaluated by Staff for program eligibility and to determine if the
proposal met the Mayor and Common Council's priorities and goals. On February 24, 2004, the
Community Development Citizens Advisory Committee (CDCAC) convened to conduct interviews,
listen to oral testimony from agencies' representatives that were in attendance and to recommend
funding allocations. During deliberations, the Committee voted on each proposal, each member
casting their vote. Those proposals receiving a score of "20" or above were recommended for
$15,000 of CDBG funding and those proposals that scored "15-19" were recommended $10,000 of
funding; those proposals that received a score of"14" or less were not recommended for any funding.
The CDCAC is recommending that the Mayor and Common Council (including the mandatory Fair
Housing component) fund twenty-five (25) agencies. The CDCAC's recommendations are contained
in Attachment I. Attachment II provides a summary description of each recommended agency and
the service they provide to the community.
The CDCAC did not recommend CDBG funding for five (5) public agencies (Camp Fire USA San
Andreas Council, Family Service Agency of San Bernardino, Impact Ministry and Crusades, Inc.,
Inland Counties Hispanic Roundtable, and Lorine's Learning Academy) for reasons including, but
___.n_______..._..____________.____________________.____------------------------------------------------------.--
P:\Agendas\Cornm Dev Comrnission\CDC 2004\04-04-19 CDBG Rec SR,doc
COMMISSION MEETING AGENDA
Meeting Date: 04/19/2004
Agenda Item Number: Ll.S-
Economic Development Agency Staff Report
CDBG, ESG, HOME Funds Recommendations
Page 2
not limited to: agencies duplicating existing services, proposals were not complete or lacked
sufficient information about program objectives, etc.
Upon subtracting the $300,000 budgeted for public services, the balance of the 2004/2005 CDBG
funds is $3,974,000. Staff recommends that the remaining funds be allocated as outlined in Section
"B" of Attachment I: Code Enforcement; City's ten (10) year commitment for fire equipment leases
and the purchase of ancillary fire equipment; Citywide Demolition Program; National Development
Corporation (NDC); Small Business Development Corporation (SBDC); Community Investment
Corporation (CIC); All three of these nonprofit organizations provide resources to the City's business
community that include: coaching, mentoring and fmancing; Citywide Street Improvements;
Construction of a Parking Lot on Agency property located on the west side of "F" Street between 4th
and 5th Streets; and EDA program administration.
B. Reallocation of 2001-2004 CDBG Funds
In order to facilitate the renovation, acquisition or economic development of projects, Staff is
recommending transferring funds to new line items and reallocating unappropriated CDBG funds
from prior Program Years in the amount of$I,462,026 to the following activities:
Amount of Amount of
Existing Program COBG Proposed COBG
COBG Activity Year Allocation COBG Activity Reallocation
HUB Project (Demolition) 2001-2002 $631,158 Acquisition of JAKS L.L.C. $631,000
Property (HUB Project)
Section 108 Loan 2003-2004 $500,000 Califoruia Theater (Phase I) $600,000
Unappropriated Funds 2003-2004 $330,868 Business Incentive Grant (BIG) $231,000
Total $1 462.026 Total $1.462000
Acquisition of JAKS LLC. Property (HUB Project) - $631,000
The HUB Project consisted of assembling 87 substandard, blighted housing units together with a
vacant 12-acre parcel owned by JAKS L.L.C. in order to allow vital roadway improvements to be
made linking Hospitality Lane to Tippecanoe Avenue. This provided a site for the relocation of a
major tax generator and employer, Sam's Club, who had outgrown their current facility as well as
making space available for several new businesses including two new motels, several restaurants and
retail outlets. JAKS' property was acquired using the NDA powers of eminent domain. The final
judgment was approximately $850,000 higher than the Agency's initial appraisal and offer. This
offer was accepted by JAKS and a final judgment has been entered to the satisfaction of all parties. It
is proposed to transfer funds from HUB demolition to HUB acquisition to help offset the increased
acquisition costs.
COMMISSION MEETING AGENDA
Meeting Oate: 04/19/2004
Agenda Item Number: ..E.l!1-
P:\Agflndas\Comm Dev Commission\CDC 2004\04-04.19 CDoo Rce SR.doc
Economic Development Agency Staff Report
CDBG, ESG, HOME Funds Recommendations
Page 3
California Theater (Phase I) - $600,000
The most pressing needs for the California Theater are: replace the lobby doors to meet ADA
requirements, enlarge the lobby to accommodate the increasing attendance, renovate a large room on
the upper level that was damaged by fire, and construct an elevator that will meet ADA requirements.
This will allow access to balcony seating. Estimated cost is in excess of $600,000. The Theater is
owned by the Agency and plans and specifications have been completed to accommodate the
improvements herein and the project is ready to be placed out to bid; consequently, the Agency does
not have the necessary resources to commence the project renovation.
Business Incentive Grant (BIG) - $231,000
The BIG Program is a tool to help business owners and tenants enhance the "curb appeal" of their
business, specifically exterior beautification and encourages other necessary improvements. The
Program provides grants of up to $10,000 to business/property owners for certain improvements.
This popular program has received prior year funding and since July 1, 2003, a total of 13 businesses
have received counseling and/or funding and 25 businesses are in the application phase.
2. 2004/05 Emergency Shelter Grant (ESG)
Agency Staff, together with a representative from San Bernardino County's Community Action
Partners, Inc. reviewed and rated the ESG proposals. Each proposal was evaluated on: project
narrative, past experience, cost effectiveness, leveraging and overall quality of proposal. The
following proposals were received: 1. Central City Lutheran Mission - $20,000; 2. Foothill AIDS
Project - $20,000; 3. Frazee Community Center - $18,000; 4. Mary's Mercy Center - $32,075; 5. New
House, Inc. - $20,000; 6. Option House, Inc.. - $41,702; and 7. Salvation Army- $103,927 for a total
of $255,703. ESG funds may be utilized for the following activities: Essential Services, Shelter
Maintenance & Operations, Homeless Prevention, and Program Administration. All ESG funds must
be matched by "Other" funding sources, i.e., "In-Kind" or donations of "Goods and Clothing."
For the Program Year, $159,779 is available and the following agencies are recommended for ESG
funding: (program descriptions are noted in Attachment III):
COMMISSION MEETING AGENDA
Meeting Date: 04/19/2004
Agenda Item Number: _
P:\Agendas\Comm Dev Conunission\CDC 2004\04-04-19 CDBG Rec SR.doc
Economic Development Agency Staff Report
CDBG, ESG, HOME Funds Recommendations
Page 4
Agency
Central City Lutheran Mission
Recommendation
$ 8,714
Foothill AIDS Project (FAP)
$ 8,000
Frazee Homeless Shelter
$ 15,000
Mary's Mercy Center
$ 20,000
New House Incorporated
$ 12,000
Option House, Incorporated
$ 19,000
Salvation Army - San Bernardino
$ 69,076
Program Administration
$ 7,989
Total $159.779
As part of the City's commitment to provide ESG funds to these grantees, it is proposed that the
2004/2005 ESG contract contain an additional provision or requirement in the "Scope of Work" that
will require each ESG grantee to report and detail any police calls for service to their program site; in
addition, grantees will be required to promote the well being of the City and commit to working
cooperatively with all City departments, including the Police, Fire and Code Compliance
Departments in an effort to work together to reduce crime, blight, and remove any unsafe and
undesirable conditions. Meetings will continue to be held quarterly with the Police Department and
other departments as necessary to ensure everyone is working in tandem with the City's objectives.
Staff will also continue to participate with the County and other agencies in working to find
resolutions to the homeless problem with a goal of adoption of a Homeless Strategy.
3. 2004105 HOME Grant Funds
The City will receive $1,883,748 in HOME funds. Staff proposes that HOME funds to be allocated
as follows for the new fiscal year: 10% ($173,882) for EDA HOME administration; 15% ($260,829)
to qualified Community Housing Development Organizations (CHDOs) who aid in the provision of
affordable housing in the community; 5% ($86,941) for CHDO operations and capacity building and
$144,924 for the ADDI Program. The ADDI Program was signed into law by the President in
December 2003. Although, as of yet, there are no program regulations for this Program, it is intended
that these funds be used to assist low-income families in the purchase of a home.
P:\Agendas\Comm Dev Conunission\CDC 2004\04-04-19 COBO Rcc SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 04/19/2004
Agenda Item Number: ~
Economic Development Agency Staff Report
CDBG, ESG, HOME Funds Recommendations
Page 5
The remaining $1,217,172 will be used for the provision or preservation of affordable housing which
benefit low-income persons (80% and below median income). The type of the activities that may be
funded include, but are not limited to, rehabilitation of single-family housing, rehabilitation or
construction of multi-family housing; homebuyer programs; acquisition ofland, public improvements
to facilitate affordable housing and transitional housing. These funds will be used to augment the
Redevelopment Agency's annual Housing Fund. As in the past, throughout the new program year, as
projects are identified and proposals are proposed, Staff will forward those projects to the
Redevelopment Committee, Community Development Commission, and Mayor and Common
Council for consideration and approval.
4. Section 108 Loan Program
At the Council Meeting of April 5, 2004, the Mayor and Common Council authorized Staff to prepare
a Section 108 Loan Guarantee application transmittal ("Application") for Mayor and Common
Council consideration before transmitting said Application to the U.S. Department of Housing and
Urban Development (RUD). Below is a brief summary of the two (2) projects that are in the
planning stages. Also refer to Attachment N for a narrative of the project description and costs.
A. Retail/Entertainment ShoDDlnl! Center - North Arden-Guthrie
(Tarl!et Area E - Arden-Guthrie Soccer Complex) IVDA Redevelopment Proiect Area
In October 2003, the Community Development Commission and Mayor and Common Council
authorized entering into a Redevelopment Cooperation Agreement with NDA relating to the
initiation of studies and delegation of redevelogment authority to the Agency for purposes of
exploring the development of the area between 20 and Highland, Arden and Guthrie. As a result of
said Agreement, and a pending development proposal from Sonnenblick Del-Rio, the Commission
authorized Staff to send out owner participation notices to all existing owners in the area requesting
that they submit competing proposals. No such competing proposals were received. Sonnenblick
Del-Rio has a wealth of experience in developing an array of uses such as: municipal facilities,
entertainment and shopping centers, hotels, to regional malls. Conceptually speaking, Sonnenblick
Del-Rio ("Developer") proposes to develop approximately 15 acres with 122,000 to 186,000 square
feet of retail, restaurants, and entertainment uses. Total project and development costs are estimated
to be in excess of $18 million. Presently, Staff and legal counsel are working on an Agreement with
the Developer and anticipate that the matter will be brought before the Commission shortly following
this Staff Report (see Map of Area - Exhibit "A").
B. Mercado Santa Fe (Subarea B. of Uptown Redevelopment Protect Area)
To complement the rehabilitation of the historic Santa Fe Depot, in 2001, the Agency entered into a
Redevelopment Planning and Participation Agreement for the Santa Fe Depot Implementation Area,
to explore the development of a new shopping center at the entrance to the Santa Fe Depot, consisting
of more than 20 acres, and located between 1-215, Mount Vernon Avenue, 3rd Street and Rialto
Avenue, commonly referred to as Mercado Santa Fe (see Map of Area - Exhibit "B"). The plan
currently underway provides for much of this acreage to be rezoned from Light Industrial to
COMMISSION MEETING AGENDA
Meeting Date: 04/19/2004
Agenda Item Nnmber: .8JL
P:\Agendu\Co1llffi Dev Commission\CDC 2004\04-04-19 CDBG Rce SR.doc
Economic Development Agency Staff Report
CDBG, ESG, HOME Funds Recommendations
Page 6
Commercial General in order to allow a variety of commercial retail uses (retail, personal service,
entertainment, and office uses). It is contemplated that the Phase I of the proposed development will
consist of about 9.2 acres, containing approximately 333,000 square feet of commercial uses,
anchored by a major Grocery Store and other ancillary retail/commercial uses; additional future
phases are also envisioned. Total project and development costs are estimated to be in excess of $22
million (see Map of Area - Exhibit "B").
To accommodate this proposed project, the Agency is presently in the process of amending the
Uptown Redevelopment Plan to reinstate the power of Eminent Domain, which is scheduled for
Mayor and Council action in July 2004.
ENVIRONMENTAL IMPACT:
All National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA)
actions will be addressed prior to release of funds for the projects/programs to be funded herein.
FISCAL IMPACT:
The fiscal impacts by the City/Agency are highlighted in this Staff Report and corresponding
Attachments. The Section 108 Loan Application will result in a $10 million loan that must be paid
over 20 years, at the annual CDBG payment of $500,000. The anticipated interest rate is 2% to 4%,
with a balloon payment of approximately $6.3 million in Year 20. Security for the loan will be
annual funds of $500,000 plus any assets purchased with the Section 108 Loan proceeds, or as
required by HOD.
RECOMMENDATION:
That the Mayor
Com on Council adopt the attached Resolutions.
P;\Agendu\CoDlPl Dev Commission\CDC 2004\04-04-19 CDBO Rcc SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 04/1912004
Agenda Item Number: I5J!J-
ATTACHMENT I
FY 2004-2005 COMMUNITY DEVELOPMENT BLOCK GRANT
CDCAC AND REDEVELOIMENT COMMITTEE RECOMMENDATIONS
A. Public Service Al!encv/Activitv Name
1. AI-Shifa Clinic, Inc.
2. ASA Learning Center
3. Asian-American Resource Center
4. Assistance League of San Bernardino
5. Boys & Girls Club of San Bernardino
6. Central City Lutheran Mission
7. Child Advocates of San Bernardino County
8. Children's Fund, Inc.
9. Elder Citizens Protection Services, Inc.
10. Foothill AIDS Project
II. Frazee Community Center
12. Highland Senior Center
13. Home of Neighborly Service, Inc.
14. Legal Aid Society of San Bernardino
15. Libreria Del Pueblo, Inc.
16. Mary's Mercy Center
17. Miracle Center Communities Ministries
18. New House, Inc.
19. Option House, Inc.
20. San Bernardino Communities Against Drugs, Inc.
21. San Bernardino Sexual Assault Services
22. San Bernardino YMCA
23. St. Bemardine Medical Center Foundation
24. Victory Resource Center
25. YWCA of San Bernardino
Recommendations
$15,000
$10,000
$10,000
$15,000
$10,000
$10,000
$15,000
$10,000
$10,000
$10,000
$15,000
$10,000
$10,000
$15,000
$10,000
$15,000
$10,000
$10,000
$15,000
$15,000
$10,000
$10,000
$15,000
$15,000
$10.000
SUB-TOTAL $300.000
B. General ProDosed Proiects-Citv/EDA Recommendations
*1. City Code Enforcement
*2. City Demolition
3. City Street hnprovements - Public Service Department
4. City Fire Department Leases
5. Development of ED A 'Y' Street Parking Lot
6. Business Assistance (EDA)
a. Small Business Development Corporation (SBDC)
b. National Development Corporation (NDC)
c. Community Investment Corporation (CIC)
7. Fair Housing (Mandatory) (EDA)
8. Administration (EDA)
$2,015,000
$184,600
$250,000
$497,500
$111,500
SUB-TOTAL
TOTAL FUNDS
$20,000
$50,000
$100,000
$45,000
$700.000
$3.974.000
$4.274.000
C. ReDrol!ramminl! of 2001-2004 CDBG Funds
Funds to be reprogrammed or transferred from the following projects: HUB Project (Demolition) ($631,158);
Section 108 Repayment ($500,000); and Unappropriated Funds ($330,868) for a total of $1,462,026.
The $1,462,026 funds are to be reallocated as follows: California Theater (Phase I) ($600,000); Business
Incentive Grant Program ($231,000); and Acquisition JAKS Property ($631,000).
* Please note that Attachment I, Section B of the Staff report, specifically Code Enforcement and City Demolition's
allocations, were changed after the RDA Conunittee had approved the 2004-2005 recommendations at their
March 16, 2004 meeting. Staff underbudgeted for the City's Code Compliance Department. During the program
year, Staff will be evaluating CDBG expenditures. If additional Dernolition funds are needed, Staff can
'recommend the reprogramming of funds from unexpended or cancelled CDBG projects, to City Demolition.
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ATTACHMENT III
FY 2004-2005 EMERGENCY SHELTER GRANT RECOMMENDATIONS
Central City Lutheran Mission, 1139 Perris Street
$8,714 for the provision of providing Essential Services for the treatment and counseling of substance abuse.
This program services homeless individuals in need of medical treatment and/or counseling. The Perris Street site
can house up to seven individuals. Participants can remain in the program as long as treatment and programs are
being followed. ESG funds will be used to assist with staff salaries.
Foothill AIDS Project (FAP), 362 Orange Show Lane
$8,000 for the provision of Homeless Prevention. This project will assist individuals who are HN Positive who
are homeless or at risk of becoming homeless. The organization works in collaboration with County Housing
Authority. The F AP organization will utilize ESG funds as a "one-time" assistance to individuals or families who
need "move-in" assistance, i.e., first month's rent, security deposit, utilities, etc. A Housing Service Plan will be
developed and other supportive services will be provided.
Frazee Homeless Shelter, 1413 Kendall Avenue
$15,000 for the provision of Maintenance & Operations for shelter services. The Frazee shelter provides services
to homeless men. The Kendall A venue site can serve eight individuals at any time. The minimum stay is one (I)
night; the maximum stay is six (6) months. Each person enters into a plan to get them back to work or are
assisted in securing permanent benefits, i.e., Social Security, veteran's pension, etc. Ninety (90%) of their clients
are veterans. ESG funds will be used for utilities and consumable supplies.
Mary's Mercy Center, 641 Roberts Avenue
$20,000 for the provision of providing Essential Services for a day shelter to include showers, laundry facilities
and emergency food bags. Mary's Mercy Center provides a center for homeless and low-income individuals by
offering a "day center" for homeless and working poor by offering showers/hygiene, meals, clothing, infant
emergency needs and bus passes. Counseling services are provided on a weekly basis. ESG funds will pay for
staff and some items for the day shelter.
New House Incorporated, 558 14th Street (Two Buildings)
$12,000 for the provision of providing Homeless Prevention. New House Incorporated provides rental assistance
and supportive assistance by operating a transitional/sober living program. Their complex on 14th Street provides
twelve (12) shelter beds. ESG funds will assist with security deposit, utilities and a portion of the rent.
Option House, Incorporated - P.O. Box 970, San Bernardino
$19,000 for the provision of providing Temporary Crisis Intervention Program. Option House is a
family/domestic violence intervention and prevention services agency. Program houses up to fourteen (14)
women and their children for up to 60 days. Residents live in a "home-like" environment and focus on putting
their lives back on track. Option House also has a satellite office in the County Courthouse. ESG funds will
assist with staff salaries and utility costs.
Salvation Army - San Bernardino, 845 W. Kingman
$69,076 for the provision of providing Maintenance & Operations for the Salvation Army's Emergency Shelter.
The Salvation Army's shelter can accommodate seventy-four (74) individuals per day. The City's Police
Department, social services and hospitals "refer" or "take" clients to the Salvation Army for emergency shelter.
A job referral program is also offered. Clients who secure employment are allowed transitional living at the
shelter for an extended period of time. ESG funds will be used for staff salaries and consumable supplies.
Program Administration
$7,989 for the 5% Administration for the 2004/2005 Program Year.
TOTAL = $159.799
ATTACHMENT IV
SUBJECT: SECTION 108 LOAN APPLICATION FOR NORTH ARDEN-GUTHRIE
RETAIL & ENTERTAINMENT CENTER (IVDA REDEVELOPMENT
PROJECT AREA) AND MERCADO SANTA FE RETAIL/OFFICE
SHOPPING CENTER (SUBAREA B, UPTOWN REDEVELOPMENT
PROJECT AREA) (THE "PROJECT AREAS")
1. Public Review Process
The rules and regulations published by HUD provide that there be a public process prior to filing
a final application for HUD 108 guarantee assistance. This public review has been facilitated in
the following ways. First the proposed action to submit an application has been advertised as
described above on the following dates: March 19 and March 26,2004; the HUD Section 108
Loan was reviewed and discussed with the Community Development Citizen Advisory
Committee on February 24, 2004; the Redevelopment Committee reviewed the proposed Section
108 uses at its meeting of March 16, 2004; at the Mayor and Common Council meeting of April
5, 2004, and fmally the Mayor and Common Council conducted a public hearing on April 19,
2004 to receive public input. In addition, the City's Annual Consolidated Action Plan has been
publicly distributed in the following areas: I) City of San Bernardino City Clerk's Office, 2)
Feldheym Public Library, 3) Villasenor Public Library, 4) Ingram Public Library,S) Rowe
Public Library, and 6) City of San Bernardino Economic Development Agency.
2. Authorization Procedure
After the close of today's public hearing, the Mayor and Common Council should consider any
comments and views received and, if appropriate, modifY the proposed application. To file the
application, the City must certifY that it possesses the legal authority to pledge its future CDBG
grant funds as required under Section 570.705. (B)(2) of Title 24. Standard certifications
regarding drug-free workplace, debarment and suspension of contractors, and an anti-lobbying
statement are also requirements of the application submittal. The City must certifY that it
possesses the legal authority to submit the application and to use the funds. It must take action to
authorize an official representative of the City to submit the application and amendments thereto.
All of these matters are addressed in the Resolution attached to the Staff Report.
3. Proiect Name. Location and Description
The City of San Bernardino and the Redevelopment Agency of the City of San Bernardino
("Agency") will undertake activities in the following areas:
I
PROJECT I.
Proiect Name: NORTH ARDEN-GUTHRIE RETAIL & ENTERTAINMENT CENTER
Proiect Location:
Highland Avenue on the north, 20th on the south, Guthrie Street on the west, and Arden on the
east, IVDA Redevelopment Project Area (Exhibit "A").
NationalObiective:
. Providing benefits to low and moderate income person - Sec.570-208 (I) (a) (i) and
. Removal of Slums and Blight - Sec. 570-208 --------
Elitrlble Activitv:
. Economic Development activity
. 24CFR, part 570 - Community Development Block Grants, Subpart M-
. Loan Guarantees, Section 570.703 (i) (I) refer to Section 570.203 (b)
Project Descrintion:
Acquisition of 24 privately owned residential structures or vacant parcels (4 vacant parcels);
relocation of approximately 80 residential tenants; demolition of approximately 20 residential
structures; development of over 17 acres containing between 122,000 to 186,000 square feet of
retail, restaurants, entertainment and recreational shopping center together with infrastructure
such as parking, and on and off site street improvements. Total project costs are estimated at $10
million (includes land acquisition) and development costs are estimated at $17 million. The
sources of funds for this project are as follows: Developer Equity/Financing contribution of
approximately $22 million and $5 million in public resources from the Redevelopment Agency
or Section 108 Loan Guarantee Funds.
Sources and Uses:
Sources
Developer Bank
Developer Equity
Agency Resources (Section 108 Funds)
$18,400,000
$4,600,000
$5.000.000
TOTAL
$28.000.000
Uses
Acquisition (Site Assemblage)
Clearance
Residential Relocation
Re-Use Land Costs/Development Costs
$7,087,000
$240,000
$1,836,000
$18.837.000
TOTAL
$28.000.000
2
Financial Arranl!ements:
. Principal Developer: Sonnenblick Del-Rio
. Equity Source: Developer
. Permanent Lender:
. Who owns asset upon CompletionlName of Partnership:
. Applicant for 108 Funds: City of San Bernardino (Redevelopment Agency)
(Who will use the funds for acquisition, clearance and residential relocation.)
Repavment Schedule:
. Section 108 Guaranteed Loan: $ 5,000,000
. Term: 20 years, with 20 amortization schedule
. Rate Assumption: 2 - 4%
Collateral:
. CDBG Pledge
. Redevelopment Tax Increment Pledge
. Land Assets or Land Sale Proceeds
Time Table and Stal!es:
. 3 year construction period
. 2 phases, commencing in Spring 2005, with completion in 2008
PROJECT II.
Project Name: MERCADO SANTA FE RETAIL/OFFICE SHOPPING CENTER
Project Location:
Subarea B of Uptown Redevelopment Project Area - 1-215 on the east, Mount Vernon Avenue
on the west, 3rd Street on the north and 2nd Street on the south (Exhibit "B").
National Objective:
. Providing benefits to low and moderate income person - Sec.570-208 (1) (a) (i) and
. Removal of Slums and Blight - Sec. 570-208 --------
Elil!ible Activity:
. Economic Development activity
. 24CFR, part 570 - Community Development Block Grants, Subpart M-
. Loan Guarantees, Section 570.703 (i) (1) refer to Section 570.203 (b)
3
Proiect Description:
PHASE I
Approximately 9.2 acres, and located in the southwest quadrant ofI-215, Mount Vernon Avenue,
Railroad Tracks and 3rd Street and Rialto Avenue, commonly referred to as Mercado Santa Fe
(see Map of Area - Exhibit "B"). The primary anchor tenant for Mercado Santa Fe will be Food
4 Less Supermarket along with a series of other regional and local tenants. Mercado Santa Fe will
become a new neighborhood shopping venue that will be designed and merchandised to support
the immediate surround area (such as: Wells Fargo Bank, El Polio Loco, Burger King, Krispy
Kreme). Phase I will contain an approximate 59,241 square-foot supermarket plus another 39,500
square feet of other specialty retailers. Total project and development costs are estimated to be in
excess of $22 million. Project sales from this shopping center are expected to be about $31
million per year, with the creation of about 200 full time new jobs and 200 full time construction
jobs. The project is scheduled to be commence in fall of 2004 and open in fall of2005.
PHASE II
Phase II is assumed to encompass the area bounded by K Street to the west, 1-215 to the east; 2nd
Street to the south and 3rd Street to the north. The plan currently underway provides for much of
this acreage to be rezoned from Light Industrial to Commercial General (CG-l) in order to allow
a variety of commercial retail uses. This area contains about 22 acres of land which will allow
development about 230,000 to 250,000 square feet of retail space; total project and development
costs are in excess of $30 million (which includes land assemblage, relocation, site clearance and
development costs). The project assumes a more parochial development that may contain mixed
retail and some office uses; these retail uses may consist of tenants ranging in size from 1,200
square feet to as large as 130,000 square feet This new shopping center will blend with the uses
and the architectural elements of the Historic Train Depot to the north, and the Mercado Santa Fe
Phase I. This development phase is expect to generate 400 construction related jobs and about
460 full time jobs, with an annual estimated $58 million in annual sales tax revenues for the City.
Phase II is expected to follow completion of Phase I described above.
Sources and Uses:
PHASE I PHASE II
Sources Sources
Developer Bank $7,698,000 Developer Bank $20,800,000
Developer Equity $1,925,000 Developer Equity $5,200,000
Agency Resources Agency Resources
(Section 108 Funds) $1.500.000 (Section 108 Funds) $3.500.000
TOTAL $11.123.000 TOTAL $29.500.000
Uses Uses
Acquisition $1,000,000 Acquisition $3,500,000
Residential Relocation $450,000 Development Costs
Development Costs (Includes Clearance Costs) $26.000.000
(Includes Clearance Costs) $9.673.000
TOTAL $11.123.000 TOTAL $29.500.000
4
Institutional Arranl!ements:
. Principal Developer: Arthur Pearlman Corporation
. Equity Source: Developer
. Permanent Lender: Bank of America
. Who owns asset upon Completion/Name of Partnership:
. Applicant for 108 Funds: City of San Bernardino/Redevelopment Agency
(Who will use the funds for acquisition, clearance and residential relocation in Phase I
and acquisition in Phase 11).
Reoavment Schedule:
. Section 108 Guaranteed Loan: $ 5,000,000
. Term: 20 years, with 20 amortization schedule
. Rate Assumption: 2 - 4%
Collateral:
. CDBG Pledge
. Redevelopment Tax Increment Pledge
. Land Assets or Land Sale Proceeds
Time Table and Stal!es:
. 4 year construction period
. 2 phases, commencing in Fall 2004, with completion of Phase I in Fall 2005; Phase II
commencing in Fall 2005 and completed in Fall 2006.
In summary, the development of said Project Areas as described above, have been specifically
designed to address the removal of blighted conditions in accordance with the IVDA and
Uptown Redevelopment plans for each of the respective project areas which will act as a
stimulus, create synergism and promote new development resulting in employment and new
shopping, restaurants, and entertainment and recreation districts. Accordingly, the Section 108
Loan funds will be used for eligible activities noted in 24 CFR subpart M, 570.703 of HUD
Regulations:
a. Acquisition of improved or unimproved real property, including acquisition for economic
development purposes;
b. Relocation Assistance to displaced businesses, families, individuals, or others who must
relocate permanently or temporarily as a result of an activity financed with the Section
108 Loan funds;
c. Clearance, demolition and removal.
4. Loan Reauest Amount
The City of San Bernardino is requesting two separate Section 108 finances for the above two
projects in the aggregate amount of $10 million with a term of 20 years.
5
5. Reiteration of Eli2ibie Activity and Nationai Objectives
The proposed Project Areas meet two of the Community Development Block Grant (CDBG)
national objectives as stipulated in the CDBG regulations, 24 CFR 208. These activities aid in
the prevention or elimination of slums and blight; and benefit iow- and moderate-income
persons. Both Project Areas exhibit deteriorated buildings, deferred maintenance, old and
obsolete structures and public improvements, and show evidence of physical, economic and
social blight. These conditions hinder or impede progress for new development and act as an
economic drain to the City. Undertaking the Project Areas as noted in the Project Descriptions
will help alleviate or remediate these blighting influences leading to improved economic and
physical conditions.
6. Prol!ram Income
The Project Areas are not expected to produce a significant amount of CDBG Program Iocome
other than new sales tax and tax increment resources to the City and Agency.
7. Reiteration of Loan Security (Collateral)
Under Section 570.705 (B)(2) the City will repay the Section 108 fmancing annually from its
Community Development Block Grant (CDBG) Program. Additionally, the City will pledge
redevelopment funds from the Redevelopment Agency of the City of San Bernardino who will
act as a guarantor in the Section 108 Loan Application, or the City of San Bernardino who may
pledge general funds (sales tax generated from the Project Areas). Moreover, if and when the
City or the Agency acquires property using the Section 108 Loan Proceeds, it may utilize the real
estate assets as collateral for the Section 108 Loan until disposition of the properties occurs.
6
EXHIBIT "A"
NORTHEND
NORTH
ARDEN - GUTHRIE
84 Total Northend Partels
I 20 I Private OwneIship Occupied (65 Tenanls)
_ EDAOwned Partels
............"
; 5 ; Bank Owned
..................
.....nnn..~
: 3 : Occupied
.............
_ Boanled UJ>Unoccupled
_ VacantPartels
.. Pending EDAAcquisition
~ Proposed EDAAcqulsilion
_ SteadfastProperties
_ Private Ownership Boanled UJ>Unoccupled
~
NORTH
Not to scale
Highland Avenue
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2104
CANNON
0ccupIed-4
2094
LW
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2072
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2050
ESTRADA
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EXHIBIT "B"
FOR LEASE
SAN BERNARDINO, CALIFORNIA
MERCADO SANTA FE
Mt. Vernon Avenue ~2nd Street
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--
";~~~iB,",,~1;I~"',,
'-_:::r~~:_0f~~;:f:t~-<;:,;,_.:-):,:,+:,+;;-,
.,';'-
'.~'
For Leasing Information Contact.'
Charlie Cangelosi, Kim Daytime Employment:
Sims, or Jonathan Steier Population:
800-499-1212 Average Household Income:
WWW.UDOREALESTATE.COM
I Mile
10,283
13,686
$34,672
2 Mile
34,083
66,105
$36,407
3 Mile
58,074
139,794
$36,336
. Join Food 4 Less in this dynamic new shopping center located at the
entrance to the Santa Fe Depot
. Restaurant pads available,
. The Santa Fe Depot features over half a million riders annually,
. Signage available to Mt Vernon and the 215 Freeway.
. Built-ta-Suit or Ground Leases available.
. Retail site and Santa Fe Depot renovation to be completed in 1 st qtr.
2005
UDO REAL ESTATE, LTD. 15233 LA CRUZ DRIVE PACIFIC PALISADES, CA 90272
1
='i/~~""F"""'"
EXHmIT "B"
~
,
~
~
:;i
Uptown Subarea "B" .......
NORTH
Noth.>$CII1B
For Leasing information
Contact"
Charlie Cangelosi,
Kim Sims, or
Jonathan Steier
800-499-1212
uno REAL
ESTATE LTD.
MERCADO SANTA FE
HISTORIC DEPOT SIDTRICT CONCEPT lMPROVEMENT PLAN
UDO R..I Est.t.. Ltd P.O. Box 1811, P.ctflc ..n....... CA 90272
800-4119-1212
Another Shopping c.n.., O'....k>>~nt b,:
Arthur Pearlmau
CORPORATION
MERCADO SANTA FE
2
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EXHIBIT "B"
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3
San Bernar 'ino
OM
Consolidated
Annual Action Plan
for
Program Year
2004-2005
Historic Santa Fe Depot/San Bernardino - Circa 1930
Steele Photography
DRAFT CONSOLIDATED ANNUAL ACTION PLAN FOR PROGRAM YEAR 2004-2005
Introduction ................................................................................................................................. ..1
1. Strategy Implementation............ .............................................. ..............................................2
A. Funding Sources and Available Programs....................................................................3
B. Support of Applications by Other Entities ...................................................................5
C. Priority Investment Plan .............................................................................. .................6
D. Non-Housing Community Development Needs.........................................................12
E. Geographic Distribution ........................................................... ..... .................. ...........21
F. Service Delivery and Management........... ... ............ ........... ........ ................................22
II. Other Actions. ........... ......... .......... ... ............. ................................... ... .................................22
A. Public Policies. ...... ................ ................................ ........... ........ ........................... .... ...22
B. Institutional Structure................................................................................................ .22
C. Public Housing Improvements .................................................................... ...............23
D. Public Housing Resident Initiatives ...........................................................................23
E. Lead Based Paint Hazard Reduction ..........................................................................23
Ill. Anti-Poverty Strategy......................................................................................................... .23
IV. Coordinating Services ................ .......................... ....................... ...................... ............. .....23
V. Program!Project Monitoring................................... ............ ................ ...... ..................... ......24
VI. Program Requirements ........................................................................................................24
A. Specific CDBG Grant Program Submission Requirements .......................................24
B. Specific HOME Submission Requirements ...............................................................26
C. Specific ESG Submission Requirements ...................................................................27
DRAFT
CONSOLIDATED ANNUAL ACTION PLAN
FOR PROGRAM YEAR 2004-2005
__iili.~.".\i.T
)i~\!!I~~\ ", ;;~I I') ~P'~~'
I
The City of San Bernardino has provided leadership in developing community strategies for providing
decent, affordable housing, a suitable living environment and expanded economic opportunities for all
households within our City. The City has developed viable partnerships with the private sector that
include: financial institutions, real estate professionals, developers and private businesses. San
Bernardino has been at the helm in developing strong collaboration with for-profit and nonprofit
organizations to access federal and state programs to increase housing opportunities for low- and
moderate-income households, eliminate blight, and provide necessary public support services for
families or individuals in need of assistance, as well as address needed public facilities, infrastructure
improvements and entice economic development activities.
The City has established its approach of developing goals and objectives that will have a long- term
stabilizing impact on City neighborhoods through the concentration of resources on eight specific
citywide priorities detailed in I. StratelN Imolementation. The City involves its citizens in
determining needs, issues and the designing of programs and activities to address those needs and
issues. The City coordinates the efforts of its City Departments to meet the identified housing
needs, and utilizes housing programs and projects to create sufficient visual impact intended to
stimulate additional private investment in the City's housing stock and diversified neighborhoods.
For 2004-2005 Program Year, the City will be awarded federal entitlement funds in the amount of
$6,371,527 under the following programs: Community Development Block Grant (CDBG)
Program, $4,274,000; the HOME Partnership Investment Act (HOME) Program, $1,763,824;
American Dream Downpayment Initiative (ADDl), $144,924; and $159,799 in the Emergency
Shelter Grant (ESG) Funds.
The Annual Action Plan contains the following sections:
I. StratelN Imolementation Strategy Implementation details the City's investment plan for
Fiscal Year 2004-2005. The investment plan includes funding sources and available
programs, a matrix chart that details funding levels and number of households to be assisted
under each priority; the geographic allocation of resources; and a plan for delivery service
and management.
II. Other Actions Other Actions states the City's proposed actions to ameliorate the negative
impacts of public policies, to examine and modify, if necessary, the institutional structure
that will improve service delivery, to improve public housing, to undertake public housing
resident initiatives and to reduce the hazards associated with lead-based paint.
ID. Anti-Povertv StratelN The Anti-Poverty section contains the City's strategy to reduce the
number of households with incomes below the poverty line.
1
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
IV. Coordinating Services This section describes the City's plan to increase and improve
coordination between public and private housing and social service agencies located in the
City of San Bernardino
V. Program/Proiect Monitoring This Section describes the process the City will undertake to
ensure sub-recipients of federal funds are in compliance with federal and local regulations
and requirements.
VI. Program Requirements Program requirements contain two required certifications that the
City will affirmatively further fair housing and is following a residential, displacement and
relocation plan.
VII. Summary of Citizen Comments Citizens Comments summarizes written comments received
during the public review period and describes how comments were addressed, if applicable.
The mission of the City of San Bernardino is to actively and aggressively improve, develop and
maintain quality neighborhoods and provide housing opportunities throughout the City of San
Bernardino. The City has identified eight priority areas to pursue and focus on in the Five- Year
Consolidated Plan (2000-2005). The Eight Priorities are:
Priority #1: Preservation and Rehabilitation of Existing Single Family Dwellings
Priority #2: Expand Homeownership Opportunities and Assist Homebuyers with the Purchase of
Affordable Housing Permanent (Existing and New Construction)
Priority #3: Provide Rental Assistance and Preserve Existing Affordable Rental Housing
Priority #4: Assist Homeless and Special Needs Persons with Supportive Services
Priority #5: Expansion of"Affordable" Housing Opportunities New Construction
Priority #6: Promotion of Economic Development and Employment Opportunities for Low- and
Moderate-Income Households
Priority #7: Improve and Expand Infrastructure to Meet Current and Future Needs
Priority #8: Elimination of Identified Impediments to Fair Housing through Education,
Enforcement, and Testing
The City's strategy is to effectively utilize and aggressively seek federal, state, redevelopment, local
and private resources to operate and implement a number of programs to assist households in each of
the eight Priority Areas. The following is a detailed chart of funding sources and a summary of each
of the priorities listed in the Five-Year Strategy section of the Consolidated Plan. Also included are
2
,'"o'j"_-,,___'",,",__ ':..
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
One Year Objectives that have been established by the City and a plan for service delivery and
management.
A. Fundin2 Sources and Available Pr02rams
1. Funding Sources Anticipated to be Available for Programs and Activities. The financial
resources expected to be available to carry out and implement projects and activities
identified for the 2004-2005 fiscal year are:
FEDERAL SOURCES
Prol!rams
Community Development Block Grant (CDBG)
CDBG Program Income (CinemaStar lease payments to repay Section 108 Loan)
HOME Investment Partnership Income
($144,924 American Dream Downpayment Initiative [ADDI])
HOME Program Income
Emergency Shelter Grant ESG
HUD Section 202 Program
Continuum of Care & Shelter Plus Care
San Bernardino Housing Authority Housing Choice Voucher Program
San Bernardino Housing Authority Modernization Rehabilitation Program
Neighborhood Initiative Program (NIP)
HUD Section 108 Loan
TOTAL
LOCAL RESOURCES
Prol!rams
RDA Tax Increment Funds (Approximately)
RDA 20% Housing Funds
City General Fund and State Funds (Refer to Table 7)
TOTAL
NONPROFIT AND FOR PROFIT SOURCES
Prol!rams
Non Profit Partners In-kind Donations (Approximately)
Developer Investment (Approximately)
Private Lending Institutions (Approximately)
TOTAL
3
Resources
$ 4,274,000
250,000
1,883,748
500,000
159,779
10,000,000
1,300,000
18,082,560
938,771
1,400,000
10,000.000
$48,788,858
Resources
$14,000,000
3,500,000
19.650.875
$37.150.875
Resources
$ 5,448,170
153,000,000
21.156.000
$J 79.604,170
DRAFT
City afSan Bernardino - Consolidated Plan - FY 2004-2005
2. Available Programs for which the City Does Not Intend to Apply. The City of San
Bernardino will not apply for the following federal resources during FY 2004/2005:
Rural Homeless Housing
The City will not apply for Rural Homeless Housing Funds because there are no rural areas
located within the City. Competitive Programs Table Support of Applications on the
following page indicates that the City will support applications made by other entities
for federal grant funds with the exception of Rural Homeless Housing.
3. Circumstances under which the City would not certify that applications of other
entities are consistent with the Consolidated Plan:
During fiscal year 2004-2005, the City shall support the efforts of San Bernardino County
agencies and non-profit and other entities in their applications for funding from all available
funding sources. However, the City will not support agencies' applications, if such
applications are not consistent with the City's 2000-2005 Consolidated Plan. The
circumstances under which the City will not support such applications are:
a. There is no demonstrated ability by the applicant to carry out the activity/project in a
timely manner.
b. Type of activity, size of proposed project, and lack of implementation plan to
successfully complete and maintain the project.
4. Plan for Leveraging Private and Non-Federal Funds by Use of Federal Funds. Local
funds will be leveraged to the greatest extent possible by using it as "seed money" or local
match for programs funded by state or federal government and/or private enterprise.
Financial assistance may be provided as grants or loans, and may include equity
participation.
S. Matching Fund Requirements. The City was notified that for Program Year 2004-2005,
the City is exempt from Matching Fund Requirements relative to the Federal HOME
Program.
Emergency Shelter Grant (ESG) Program. In-kind resources and private donations will be
utilized by the non-profit service providers with the ESG Grant. Other eligible public/private
sources will be pursued when possible.
4
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
B. Support of Applications by Other Entities
u.S. Department of Housing and Urban Development
CPD Consolidated Plan
Support of Applications by Other Entities Report
Fundin2 Source
Support Application
by Other Entities?
FormulalEntitlement Programs
ESG
y
Public Housing Comprehensive Grant
y
Competitive Programs
HOPE I
HOPE 2
HOPE 3
y
y
y
ESG
y
Supportive Housing
y
HOPW A
y
Safe Havens
y
Rural Homeless Housing
N
Sec. 202 Elderly
Sec. 811 Handicapped
Moderate Rehab SRO
y
y
y
Rental Vouchers
y
Public Housing Development
y
y
Rental Certificates
Public Housing MROP
Public Housing ClAP
y
y
LIHTC
y
5
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
c. Priority Investment Plan
The following illustrates activities the City of San Bernardino expects to address and allocate federal
funds and other resources in fiscal year 2004-2005. The City will undertake priority needs in terms
oflocal objectives that were identified in the City's Five-Year Consolidated Plan.
I Priority #1: Preservation and RehabilitatWn of Existing Single Family Dwellings
Under Priority # I, the City seeks to actively maintain, improve and develop quality neighborhoods
and housing opportunities throughout the entire City. The program activities are described in detail
in the Five-Year Consolidated Plan. The following table provides the funding source, amount of
planned funding, households to be assisted, and activity to be undertaken.
Prior'
Activity
Undertaken
Ll1:1
CIIT OF Jl:~ARDINO
1..>-,........><:.':..:.,..::..:.... ..'
#1: Preservation and Re If8tlOn of Existln .Sln leFaDlll
Fnndlng Planned
Source Fundln
)l;!nlh
Households
to be Assisted
Housing Improvement Program
Single Family units and mobile
homes/Neighborhood Housing
Service (NHS) and
Neighborhood Improvement
Program (NIP)
RDA Housing Fundi
NIP Funds
$ I.2 Million
$1.4 Million
300 Units
Utility Assistance Program
RDA Housing Fund
$65,000
200 Households
Sources: City of San Bernardino Staff Estimates, Private Developer Estimates.
Priority #2: Expand HI)
Purchase
The City will concentrate a portion of its affordable housing funds on providing low- to moderate-
income households with the opportunity to own their own horne, This effort will be approached with
the programmatic tools discussed in the Five-Year Consolidated Plan. Table 2 lists the amount of
funding, the Funding Source, and projected number of households to be assisted.
6
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
'l'A.lJ~Z
~.l.l'.()F~~18)ml\l.t\lUl~()
PriQritytn .~.EXpand!lJ.!I!I1eQWlIi\FS~'R~PP!l!1llllities!l!td~istlll!!I1~ll\l~el'l.Withthel'lI.rel!.eoJ
Aff!lrdlllilll.II!1llSiD:2.PJ!J!iltanent~.istiD:lIJ.and.liiew.COllmuetiC)lj)
Activity Funding Planned Housebolds
Undertaken Source Fundin2 to be Assisted
Mortgage Assistance Program (ExistinlVNew RDA Housing Fund $400,000 40
Construction- MAP Programs) Federal HOME Funds $400,000
Private Investment $10 MiIlion
Creative Housing Solutions (eRS) RDA Housing Fund $200,000 16
Private Investment $3.5 MiIlion
Sources: City olSon Bernardino Staff Estimates, Private Developers Estimates.
Priority #3: Provide Rental Assistance and Presel'lle Existing A ordable Rental Housin
Under Priority #3, the City, with the assistance of the San Bernardino County Housing Authority,
will assist very low and low income households with rental payments to alleviate rent burden,
overcrowding and unsafe or unsanitary living conditions. In addition, the City plans to facilitate the
development of new senior rental housing projects for low-income seniors.
According to San Bernardino's County Department of Human Services, 63,262 households living in
the City of San Bernardino relied on some form of public aid, i.e., Cash Aid, Food Stamps and/or
MediCal during the year 2003. In addition, according to San Bernardino Unified School District's
Research and Statistical Department, of the 57,660 students enrolled, 81 % qualify for the District's
"Free and Reduced Lunch Programs."
Two factors that could have contributed to this increase are: 1) declining of affordable housing in
Los Angeles and Orange Counties causing families to migrate to San Bernardino County; and, 2) the
impact of economic recession that plagues our local economy. As a consequence, the City projects a
high level need for housing assistance during the 2004-2005 Program Year. Table 3 summarizes the
activities to be undertaken, funding sources, funding amounts and projected number of households to
be assisted.
7
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
't~~,a
(,;J!~!l'Of'$J\.N'lIJl)~~Hl()
Pri!!rifil:#3;.l"t!!vJcl.!ielltlll.Allslstlln(ei!!ndm-esen'e~I!MQl1djbIeRen.tlIl!H!!llSlb".
Activity Funding Planned Households
Undertaken Source Fundin.. to be Assisted
Housing Choice Voucher Program Section 8 $18,082,560 2,770
Public Housing Modernization Rehab Program Modernization $938,771 95
Rehabilitation
Program
Rental Assistance Program RDA Housing Fund $250,000 120
Proposed 75 Unit Senior Housing on SE Corner HUD 202 $10 million 75 Units
of Waterman Avenue and Commercial Road HOME $350,000
Private Investment $400,000
6th and "0" Street (Multi-Family) RDA Housing Fund $350,000 6 Units
Private Funds $25,000
Sources: City of San Bernardino Staff Estimates; County of San Bernardino Housing Authority Estimates,
Private Developer Estimates.
b~lill
' . '''''''~'\''''-''''~*''''I!'
,': . "lhHiliL ":;r~;'
Under Priority #4, the City provides housing assistance and supportive services to San Bernardino's
homeless population, "at-risk" population, and other "special needs" population identified by the
City and its service providers. Priority #4 includes the City's strategies for transitional and
emergency shelters for the homeless, the prevention ofhomelessness and helping the homeless make
a transition to permanent housing. Other services to be funded include child care, senior services,
job training, crisis intervention, counseling, medical assistance and after school programs. The
following table details the funding sources, planned funding amounts and households to be assisted
through various social service programs in fiscal year 2004-2005.
The entitlement amount for the 2004-2005 Emergency Shelter Grant (ESG) Program is $159,779.
The City also allocated $75,000 in CDBG public service funds for homeless or transitional housing
programs. Existing programs that have proven their effectiveness will continue to be a priority for
Program Year 2004-2005 ESG funding. The following have been recommended:
Central City Lutheran Mission, 1139 Perris Street
$8,714 for the provision of providing Essential Services for the treatment and counseling of
substance abuse. This program services homeless individuals in need of medical treatment and/or
counseling. The Perris Street site can house up to seven individuals. Participants can remain in the
program as long as treatment and programs are being followed. ESG funds will be used to assist
with staff salaries.
8
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
Foothill AIDS Project (FAP), 362 Orange Show Lane
$8,000 for the provision of Homeless Prevention. This project will assist individuals who are HIV
Positive who are homeless or at risk of becoming homeless. The organization works in collabomtion
with County Housing Authority. The F AP organization will utilize ESG funds as a "one-time"
assistance to individuals or families who need "move-in" assistance, i.e., first month's rent, security
deposit, utilities, etc. A Housing Service Plan will be developed and other supportive services will
be provided.
Frazee Homeless Shelter, 1413 Kendall Avenue
$15,000 for the provision of Maintenance & Opemtions for shelter services. The Frazee shelter
provides services to homeless men. The Kendall Avenue site can serve eight individuals at anytime.
The minimum stay is one (1) night; the maximum stay is six (6) months. Each person enters into a
plan to get them back to work or are assisted in securing permanent benefits, i.e., Social Security,
vetemn's pension, etc. Ninety (90%) of their clients are veterans. ESG funds will be used for
utilities and consumable supplies.
Mary's Mercy Center, 641 Roberts Avenue
$20,000 for the provision of providing Essential Services for a day shelter to include showers,
laundry facilities and emergency food bags. Mary's Mercy Center provides a center for homeless
and low-income individuals by offering a "day center" for homeless and working poor by offering
showers/hygiene, meals, clothing, infant emergency needs and bus passes. Counseling services are
provided on a weekly basis. ESG funds will pay for staff and some items for the day shelter.
New House Incorporated, 558 14th Street (Two Buildings)
)
$12,000 for the provision of providing Homeless Prevention. New House Incorpomted provides
rental assistance and supportive assistance by operating a transitional/sober living program. Their
complex on 14th Street provides twelve (12) shelter beds. ESG funds will assist with security
deposit, utilities and a portion of the rent.
Option House, Incorporated - P.O. Box 970, San Bernardino
$19,000 for the provision of providing Tempomry Crisis Intervention Program. Option House is a
family/domestic violence intervention and prevention services agency. Program houses up to
fourteen (14) women and their children for up to 60 days. Residents live in a "home-like"
environment and focus on putting their lives back on track. Option House also has a satellite office
in the County Courthouse. ESG funds will assist with staff salaries and utility costs.
Salvation Army - San Bernardino, 845 W. Kingman
$69,076 for the provision of providing Maintenance & Operations for the Salvation Army's
Emergency Shelter. The Salvation Army's shelter can accommodate seventy-four (74) individuals
per day. The City's Police Department, social services and hospitals "refer" or "take" clients to the
Salvation Army for emergency shelter. Ajob referml program is also offered. Clients who secure
9
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
employment are allowed transitional living at the shelter for an extended period oftime. ESG funds
will be used for staff salaries and consumable supplies.
Program Administration
$7,989 for the 5% Administration for the 2004/2005 Program Year.
New programs that will close gaps in San Bernardino's continuum of care are also a funding priority.
Emergency Shelter Grant (ESG) projects recommended for funding are consistent with the priorities
established in the City's 2000-2005 Five-Year Consolidated Plan. The City will continue to leverage
non-HUD funding sources, i.e., City General funds, Redevelopment Set-Aside funds, Cal-Works
funds, as well as state, county and private funding.
The City continues to collaborate closely with the Community Action Partners of San Bernardino
County, a private, nonprofit, public benefit corporation whose mission is to reduce the causes and
conditions of poverty and to develop and implement a coordinated plan to address homelessness in
San Bernardino.
Grants for shelter and care programs were awarded to eight (8) entities. These projects are renewal
projects that provide homeless services throughout San Bernardino County. The entities are
identified as follows: 1) Community Action Partnership to provide support services and case
management for homeless families with children $123,143; 2) Frazee Community Center,
transitional housing for homeless veterans was awarded $26,250; Saint John of God Healthcare
Services was awarded $311,960 for transitional housing for homeless individuals with substance
abuse issues; 4) Salvation Army was awarded $158,522 for transitional housing and supportive
services for homeless men; 5) New House Village, Inc. was awarded $66,842 for transitional
housing and supportive services for homeless families and individuals; 6) Fontana Native American
Center was awarded $249,286 for transitional housing and supportive services; 7) Central City
Lutheran Mission was awarded $94,465 for two projects for transitional housing and services for
homeless persons with HN / AIDS; and 8) Provisional Education Center was awarded $292,533 for
transitional housing and services for homeless youth that have aged out of foster care. Five of the
eight entities are based in the City. All eight providers; however, will be utilized by all homeless or
emergency services providers. Families or individuals in need of emergency services can be referred
on a case-by-case scenario to a host of agencies based in San Bernardino, both City and County.
Clients will be educated on how to access services available in their community, including public
health programs and other social service organizations.
10
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
1'A)lllE4
()J1!YOFSA.N,1J~~IN() ....
I'rj(!r1tv#4:'.A$Sfjt8oll1el~$andSoeelall"leed"pjl'$Q!1$'lVIth.SQiin(!ttiYeSel':'l'i~
ActIvity Funding Planned Households
Undertaken Source Funclino to he Assisted
Emergency Shelter Grant Program ESG $159,779 1,850
(EmergencyfTransitional Programs) CDBG $75,000
Central City Lutheran Mission, Frazee In-Kind Private $5,448,170
Homeless Shelter, Mary's Mercy Center, New Donations
House, Incorporated, Salvation Army, Foothill
AIDS Project and Option House, Inc.
Relocation Recovery Program RDA Housing Fund $250,000 125
Community Action Partnership, Frazee Shelter + Care $1.3 Million 220
Community Center, Saint John of God cac
Healthcare, Salvation Army of San Bernardino,
New Hope Village, Inc., Fontana Native
American Center, Central City Lutheran
Mission, Provisional Educational Services, Inc.
ASA Learning Center CDBG $10,000 40
In-Kind $150,000
Sources: Citv of San Bernardino St;;1fEstimatfl5, Non-Profit Orvanizations and Child Care Provider Estimates.
I II
. '. . .,1 V;;;;^rt.I. 'F...~1i'q;20-. '\6''''+>
. , ;;;~ ,,~ ~ .~.~<ihl' M.~ . ~m.;.;. .,'
Under Priority #5, the City will concentrate on the development and construction of affordable
housing units for families earning less than one hundred twenty percent (120%) of area median
income (AMI) and market rate housing units that are targeted for higher income households. The
programs to be utilized under this priority are described in the Five-Year Consolidated Plan. The
following table indicates the funding sources, funding amounts and number of households to be
assisted.
TABl.ES
CI1'YOFSA.NBERlIl~INO
Prlorltv'1I5:' EmllDsionofAffordable'Housioll,()iillortuDities.th1'!!ullh,New.COJlstruction
Activity Fundillg Planned Households
Undertaken Source Fundlno to be Assisted
Meadowbrook Area (New Construction) RDA Housing Fund $500,000 23
Private Investment $3.5 Million
Creative Housing Solutions (CHS) RDA Housing Fund $200,000 16
Private Investment $3.5 Million
Sources: City of San Bernardino Staff Estimates, Private Developer Estimates.
11
_.~
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
D. Non-Housin2 Community Development Needs
As previously noted in the Non-housing Community Development Needs Assessment, the
availability of Community Development Block Grant (CDBG) monies and other resources, will
enable the City to allocate funds to specific low-income neighborhood areas that are prone to
neighborhood decline and dilapidation. Through this effort the City reduces the risk of obvious
delineation of lower income neighborhoods; thereby promoting pride of homeownership and
residency in all geographic areas within the City limits and in turn, encouraging the economic
empowerment of its low- and moderate-income residents.
Two of the City's highest priorities are: (1) to attract industries and employers that provide higher-
paying jobs and a wider range of employment opportunities, and (2) to assure that local residents
have the necessary skills to fill those jobs.
To implement said priorities the City, in collaboration with other public agencies and private
enterprise developers, will pursue strategies that promote the growth of production industries whose
goods or services are sold to state, national, or global markets to bring outside income into the
community. The City will also promote particular industries that are attracted by the comparative
natural resource, i.e., transportation, costs, labor force, and other natural resource advantages that
San Bernardino offers.
The primary entity to implement these priorities is the City's Economic Development Agency
(EDA). During the 2004-2005 fiscal year, the City's EDA will continue to support job creation,job
retention, training, education, downtown revitalization, and infrastructure improvement efforts.
Federal assistance in the form ofa Section 108 loan, float loans, economic development initiatives
and other financing such as redevelopment funds will be the resources that will be sought or used to
assist the City in Priority #6.
Table 6 details the organizations that the City will contract with for the promotion of economic and
job creation.
12
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
'J;~JlTi>ll.i6
CI'l'YOFSA.Ni~~tNO
Priority #6: PrOlnotlonof El:on~mie:~velPJIIlelltaJ'!lIi~~entOpportuli1ties
fo"iLow.i.alld.Mollemte-'fIl~meiHoll$lllioli:\j
Businesses
Activity Funding Planned to be Assisted
Undertaken Source Fundin!! or Jobs Created
Small Business Development Corporation In-Kind; Private $500,000 10
Institution and CDBG $20,000
Community Investment Corporation In-Kind; Private $300,000
Institutions and 18
CDBG $100,000
National Development Corporation - Grow San In-Kind; Private $1,250,000 25
Bernardino Institutions and
Redevelopment Funds
CDBG $50,000
Business Incentive & Downtown Revitalization! Redevelopment Funds $231,000 40
Fa9ade Program Private Business $231,000
Contributions
Sources: City of San Bernardino Staff Estimates, Private Business Owners Estimates.
In addition, the City will administer the development of the following economic projects:
1. San Bernardino HUB. This retail project consists of approximately 268,000 square feet of
commercial space on 24.5 acres. During 2004-2005, the construction of two (2) new limited
service motels will go forward. Both motels, Residence Inn and Fairfield Inn, are under the
Marriott flag. These new motels will add 300 rooms to the inventory of existing hotel/motel
rooms in the City. Also slated for construction in the HUB project are three (3) new
restaurants of 7,000 square feet: I) BJ's Brewery, 2) Pat and Oscar's, and 3) Elephant Bar.
Smaller eateries are currently in talking stages, i.e., Quizno's and Cold Stone Creamery.
In Progmm Year 2004-2005, the demolition of the existing In-N-OutBurger building will go
forward to allow for the construction of a new 2,000 square-foot In-N-Out Burger restaurant.
The facility had to be moved to allow for the widening of Tippecanoe Street (a major
thoroughfare) for both the increased traffic at the HUB and San Bernardino International
Airport (SBIA).
2. Lowe's Home Improvement. This project will be located on Hallmark Parkway and involves
a 120,000 square-foot facility. One hundred forty (140) to one hundred fifty (ISO) jobs will
be created, with potential $60 million in sales. Plans and specifications are currently in the
Planning Department. Construction is tentatively scheduled for summer 2004. The project
received tax increment assistance and teclmical assistance from EDA Staff.
3. Fry's Electronics. This retail operation will involve the construction of a 140,000 square-
foot building, and will create a projected 160 full-time and part-time jobs. The project is
13
1
DRAFT
City olSan Bernardino - Consolidated Plan - FY 2004-2005
currently under negotiations with EDA Staff and is projected to generate $70 million in sales
tax. The project will realize a sales tax rebate if an agreement is reached.
4. Pacific Coast Steel. This industrial project is for the manufacturing of rebar. The project is
located in the industrial park in the northern part of the City. The site will consist of96,000
square feet and will employ 180 full-time and part-time employees. The plans and
specifications are being checked in the Planning Department. Building is slated for
completion by December 2004. The EDA provided technical assistance. Private investment
is proposed at $10 million.
5. MAPEl Corporation. This grout manufacturing company is currently under construction and
is slated to be fmished by July 2004. The building is 130,000 square feet and will create 160
full-time and part-time jobs. Private investment is anticipated at $13 million. The MAPEl
Corporation will receive tax increment rebates.
6. Mt. Vernon Corridor Specific Plan. Prepare plans for the streetscape concept for the Mt.
Vernon Corridor between 5th and Baseline. The project involves the construction of an
AM/PM market and a proposed Walgreens Drug Store.
7. Facilitate the development of9.2 acres, south of the historic Santa Fe Depot. Project consists
of a proposed 96,241 square-foot retail use including a new market of a proposed 59,241
square-foot use. Proposed project also includes the demolition of the structures including
four residential units currently occupying the proposed Mercado Santa Fe retail development
site. Facilitate the zone change of approximately 17.5 acres of Industrial Light (IL) to
Commercial General (CG-I). This will allow a variety of commercial retail uses, i.e., retail,
entertainment, and office uses.
8. Facilitate the acquisition and demolition and clearing of several properties in the Central City
North Project Area to create small infill parks within the project area, thus, creating an
enhanced quality of life for neighborhood residents.
9. Submit plans and specifications for the interior renovation of an upstairs ballroom,
reception/entertainment area, and installation of an elevator at the EDA's historic California
Theatre of Performing Arts, located downtown on 4th. California Theater provides
entertainment and cultural events for over 1,200 people per event.
10. Amapola Rico Taco. This project consists of a small restaurant chain that is building a
10,000 square-foot central commissary. Fifteen (15) jobs will be created. Construction is
slated to begin in sununer 2004. Private investment is estimated at $1.5 million. EDA Staff
provided technical assistance and tax increments.
11. Rancon Office Complex. This 94,000 square-foot office complex is currently under
construction and is scheduled for completion in August 2004. EDA Staff provided technical
assistance. The project is located on Vanderbilt Way and private investment is estimated at
$16 million.
14
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
The above-referenced economic development projects will facilitate the creation, promotion, and
retention of employment opportunities for low- and moderate-income households.
PJIIIIt.1
The City's five-year Capital Improvement Program (2002-2007) represents a key community and
economic development tool to implement the priorities detailed in the Consolidated Plan. The
Capital Improvement Program allocates funding for targeted public investments that support
revitalization of the City's older neighborhoods and downtown San Bernardino as well as new
development projects that will create employment for local residents.
During the 2004-2005 fiscal year, the City proposes to spend $19,650,875 on capital improvements
detailed in Table 7. The Capital Improvements are funded from a variety of sources that include:
Sales Tax Fund, State Funds and Traffic Fees, Developers' Fees and Traffic Systems Fee Fund,
Sewer and Storm Drain Fund, Park Fee Funds, as well as the City's General Fund and CDBG Funds.
Community Development Block Grant (CDBG) funds will be utilized to fund payment on fire
equipment leases, acquisition of property for a commercial/recreational use, the installation and
construction of various street improvements, and the construction of a 60-space parking lot that will
also include landscape improvements. In addition, CDBG funds in the amount of $2,015,400 are
allocated to Code Compliance Department for the continued effort towards reducing neighborhood
blight and substandard living conditions to work in concert with the City's EDA housing
revitalization program.
Many of the City's low-income neighborhoods have higher incidents of code violations. There are a
number of factors that influence this higher rate, including an older housing stock, lack of return on
income investment, lower income residents with limited or fewer resources for housing maintenance.
The City will commit $545,000 of CDBG funds carryover for the clearance and demolition of
substandard structures.
15
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
TABLE 7
U'l'r' OFSAN' BERNARDINO
Priority #7: Emand and Imnrove E~lI.r Infrastl'lleture toJ\ieetCurrent and Future Needs
The Capital hnprovement Program is divided into six major sections as follows:
I. General Buildings
2. Streets and Street Lights
3. Sewer
4. Storm Drains
5. Traffic Controls
6. Parks and Recreation
1. GENERAL BUILDINGS
Fire Stations Repair Restrooms
City Yard Repave Site (Phase II) Refuse
General Fund
Swimming Pools Replaster Pools General Fund $50,000
City Yard Building Restoration Work General Fund $100,000
City Yard Block Wall (Phase I) General Fund $75,000
Code Enforcement Enforce City's Code in Target CDBG $2,015,400
Areas
Clearance of Structures Demolition of Substandard CDBG $545,000
Structures
TOTAL $2.910400
2. STREET LIGHTING AND STREETS
Various Locations
Varioos Locations
VariOllS Locations
Various Locations
Varioos Locations
Hunts Lane
State St. University
Pepper Ave. Pavement
Rehabilitation
Pepper Linden Dr.
Tippecanoe Avenue
Deficiencies to Bridges
Repair Bridge Railing
Construct Disabled Access Ramps
Street and Safety Improvements
Slurry Seal
Grade Separation
SanBAG
Grade Separation
SanBAG
Mill St. to Wilson St.
1-215 Interchange Preliminary
Study
Pavement Rehabilitation from the
Santa Ana River to Mill St
16
Gas Tax Fund
Gas Tax Fund
$50,000
$60,000
$500,000
$200,000
$200,000
$1,000,000
y,,, Sales Tax Fund
y,,, Sales Tax Fund
Gas Tax Fund
AB 2928
AB 2928
$1,000,000
y,~ Sales Tax Fund
$150,000
y,~ Sales Tax Fund
$375,000
REA 21
$1,320,000.. City
$180,00O+G93
$1,000,000
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
Rehabilitate pavement from
Highland Ave. to Rte. 30
5th Street Rehabilitate pavement from uH" St. y,~ Sales Tax Fund $400,000
to Waterman Ave.
Pepper Linden Dr. Widen to provide four (4) traffic y,~ Sales Tax Fund $275,000
lanes from Kendall Dr. to
Northpark Blvd.
Miscellaneous AB 2928 Projects to be determined AB 2928 $700,000
Mountain View Ave. Pave Rehabilitation P .M.A. 3l.t St. Seek Funding $3,050,000
to N. End
34th St. Pavement Rehabilitation P .M.A. Seek Funding $610,000
Min. View to Waterman
Crest View Pavement Rehabilitation P .M.A. Gas Tax Fund $147,908
18th St. to 20th St.
Caroline St. Pavement Rehabilitation P .M.A. Gas Tax Fund $55,046
Waterman Ave. to Club Way
Club Way Pavement Rehabilitation P.M.A. Gas Tax Fund $148,781
Redlands Blvd. to Club Center Dr.
Club Center Dr. Pavement Rehabilitation P .M.A. Gas Tax Fund $75,710
Hunts Ln. to Club Way
Windsor Dr. Pavement Rehabilitation P.M.A. Seek Funding $219,204
Baseline to Gilhert St.
Gilbert St. Pavement Rehabilitation P .M.A. Gas Tax Fund $15,000
Waterman Ave. to Twin Creek Dr.
Arrowhead Ave. Pavement Rehabilitation y,~ Sales Tax Fund $100,000
Court St. to Olive
"G"St. Pavement Rehabilitation AB 2928 $618,262
7th St. to Temple
Medical Center Dr. Pavement Rehabilitation P.M.A. y,~ Sales Tax Fund $654,664
Baseline to Cajon
Sierra Way Pavement Rehabilitation P.M.A. Gas Tax Fund $654,664
Rehabilitation 2nd St to 9th St.
TOTAL $12.914.575
17
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
3.
Various Special City's share of cost for sewer main Sewer Line $150,000
Maintenance Functions extensions in excess of 300 feet Maintenance Fund
Various Locations Line extension engineering Sewer Line $100,000
Construction Fund
Little Mountain Dr. Replace existing 8" with 12" Sewer Line $25,000
Northpark Blvd. to north S.M.P. Construction Fund
Walnut St. Muscott St. to Replace existing 8" with 12" Sewer Line $101,000
San Marcos S.M.P. Construction Fund
44th St. Mayfield Ave. to Replace existing 8" with 12" Sewer Line $28,000
Electric Ave. S.M.P. Construction Fund
Alley slo Jefferson St. to Replace existing 8" with 12" Sewer Line $34,000
Inland Center Dr. S.M.P. Construction Fund
Inland Center Dr. Scenic Replace existing 8" with 12" Sewer Line $54,000
Dr. to 1-215 Fwy. S.M.P. Construction Fund
"I" St. Marshall Blvd. to Replace existing 8" with 12" Sewer Line $76,000
Bussy St. S.M.P. Construction Fund
TOTAL S56R.OOO
4. STORM DRAINS
Various Locations Repair Cross Gutters and Drainage Storm Drain $60,000
Inlets Construction Fund
Town Creek Storm Drain Repair Storm Drain Channel Storm Drain $500,000
Construction Fund
Baseline St. Storm Drain Massachusetts to "H" Sl. Storm Drain $400,000
Construction Fund
State St. Install Master Plan Storm Drain Storm Drain $500,000
Construction Fund
Highland Ave. Install Storm Drain Master Plan Storm Drain $247,900
Central Ave. to Baldridge Creek Construction Fund
TOTAL S1.707.900
18
DRAFT
City o[San Bernardino - Consolidated Plan - FY 2004-2005
5.
Various Locations Upgrade Traffic Signals and Signal Traffic Systems
Improvements (02/03) Fee Fund
Kendall Drive Install Interconnect. Push Buttons Traffic Systems
and Pedestrian Signals Fee Fund
Mt. Vernon Ave. Install Interconnect. Push Buttons Traffic Systems
and Pedestrian Signals from Mill Fee Fund
Street to Highland Ave.
"E" St. and Orange Show Install Traffic Signals Traffic Systems
Lane Fee Fund
Sterling Ave. and 6th St. Install Traffic Signals City ofHighland
Share 50%
City of SB
Share 50%
TOTAL
6.
Verdemont Master Park & Design only 1" year' Park Construction
Trail Plan Fee Funds
Norton Recreation Center Upgrades to Galaxy Ballroom Murray Hayden
GymnasiumlRacquetball Facility Park Construction
Fee Funds
Citywide - Replace Replace Irrigation - Hydraulic Park Construction
lrrigation Mechanical Systems Fee Funds
Citywide Develop Five (5) Pocket Park Sites Park Construction
Fee Funds
Fiscallini Field Upgrades to include Park Bond Funds
Repair/Replace Scoreboard, Booth, (proposition 40)
Rehab office Trailer, Two Park Construction
Restrooms, Concession Stand and Fee Funds
Sport Offices
La Plaza Park Refurbish Kiosk and Landscaping Park Construction
Fee Funds
TOTAL
$150,000
$50,000
$300,000
$110,000
$120,000
sno 000
$210,000
$60,000
$50,000
$200,000
$50,000
5820.000
Source: City o[San Bernardino Capital Improvement Program 2004-2005.
19
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
To support the City's efforts in increasing housing availability and accessibility for low- and
moderate-income households, this 2004-2005 Action Plan allocates $45,000 ofCDBG funds for a
Fair Housing contract with the Inland Mediation Board of San Bernardino County (1MB). The 1MB
will provide $455,000 of private funds for administration. The City supports a number of programs
and services to promote fair housing, including:
. Education and training on state and federal fair housing laws.
. Mediation and complaint resolution.
. Monitoring of compliance by individuals and organizations involved in the sale, fmancing,
renting, advertisement, and management of housing.
. Financial assistance and economic development programs to increase incomes for low- and
moderate-income households.
The City will focus on two strategies to remove impediments to fair housing: (1) increase
accessibility to homeownership, and (2) ensure that low- and moderate-income renters have access to
fair rental housing.
Current and past studies of impediments to fair housing and monitoring of compliance have
concluded that the primary difficulties faced by low- and moderate-income households relate to their
fmancial circumstances rather than race, ethnicity, gender, or national origin. Most complaints
submitted to the Inland Mediation Board involve Fair Housing and landlord-tenant disputes. The
complaints filed involve tenants' rights, evictions and security payments and property maintenance
issues. There appears to be a disproportionate number of complaints filed by female-headed
households with children, which could indicate that some single mothers experience difficulties in
obtaining suitable housing for their families.
In light of these fmdings, the City will continue to implement programs and support efforts by other
agencies to improve economic opportunities for low- and moderate-income households, increase
housing availability (particularly homeownership), assist other agencies in providing child care and
supportive services for families with children, and ensure that single parents are not unreasonably
restricted in their housing choices.
20
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
.'T~l.,E8
.CI'F\'..()F.SAl!i....~AiRn1N!)
Prior;tvlllkEI"nillati!>!lollmnedi~fjjto'llillrlJOlI$ln...i1irolliiJcl@lltioll :EDlol'eem!l!if.lUIdTestlDl!!. .
Activity Funding Planned Housebold,
Undertaken Source Fundino * to be Assisted
Fair Housing/Landlord/Tenant Program In-Kind $220,000 850
Education Seminars In-Kind $120,000 10
Testing Cases In-Kind $80,000 2
Enforcement - Advertisement In-Kind $80,000 5
Sources: City of San Bernardino Staff Estimates, Inland Mediation Board Staff Estimates.
. lnc/udes $45,000 ofCDBG Funding.
The impediments identified in the City's Analysis are:
. Lack of knowledge and awareness of Fair Housing Laws makes it impossible for residents to
recognize discriminatory practices by housing providers and lenders.
. Recommended Action: Increase the level of education through various means such as
newsletters, workshops, paid public announcements on the radio, community billboards, and
personal interviews on local cable television.
. Discriminatory lending and insuring practices based upon color, race, nationality, and other
arbitrary characteristics such as families with children and persons with disabilities
. Recommended Action: Conduct intensive lenders and insurer's training with emphasis on fair
lending practices.
. Lack of affordable large units to accommodate large families.
. Recommended Action: Encourage the development of 3+ unit apartments and single-family
units.
E. Geo2raphic Distribution
The City's Economic Development Agency, administrator of the federal programs and other
redevelopment housing programs, will concentrate most of its rehabilitation and preservation
programs and activities within the City's seven identified focus neighborhoods through the
Neighborhood Initiative Program (NIP), and the 12 redevelopment areas, and will also administer a
citywide Single-Family Dwelling and Mobile Home Maintenance Grant Program for low- and
moderate-income owners. In the Five-Year Consolidated Plan, the City sets forth its rational for
allocating resources to these programs.
In addition, the City anticipates submitting a revised Section 108 Loan during the 2004-2005
Program Year.
21
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
F. Service Delivery and Mana2ement
The Economic Development Agency (EDA) has the lead responsibility for the development and
implementation of the City's comprehensive housing affordability strategy.
The current five-year strategy incorporates all anticipated funding sources: federal, state, tax
increment, local funding, redevelopment, and private fmancing. These funds create single and
multiple family housing, as well as senior housing and other identified special needs construction.
The types of housing which will receive the greatest level of advocacy by the City will be housing for
the elderly, handicapped, special needs populations and low- and moderate-income families. The
EDA will focus on all of these new construction, rehabilitation and special needs housing issues in
fiscal year 2004-2005.
Numerous projects require the need to involve private developers, as well as non-profit developers,
in order to enhance affordable housing in the City. The EDA is able to develop and implement
agreements with developers and provide gap financing, construction fmancing, and silent Second
Deeds of Trust for first time homebuyer programs. This is coupled with the implementation of
housing rehabilitation programs, grants for mobile home parks, infill housing, senior housing, and
new construction that provide affordable housing opportunities in the City.
A. Public Policies
The City and the EDA will continue dialogue and project coordination with various public/private
agencies involved in implementing the City's housing goals and continue to provide input on
regulations, codes, and ordinances that could potentially have adverse effects on the development of
affordable housing.
B. Institutional Structure
The City and the EDA will continue to aggressively attract housing development to ensure that all
development will be completed in harmony with the State Housing Element and Consolidated Plan's
goals. During FY 2004-2005, specific actions will be taken to achieve cooperation and coordination
amongst state, local, and private agencies and institutions in implementing activities.
The City and Economic Development Agency will coordinate the execution of a regional homeless
assistance plan with a countywide Homeless Coalition and Community Action Partners of San
Bernardino County. These groups include: non-profit service providers, City of San Bernardino
Police Department, County Board of Supervisors, County Department of Public Social Services,
County Department of Mental Health, County Department of Public Health, Realtors, the AFL-CIO,
Veterans, the Building Industry Association, Habitat for Humanity, local colleges and job training
groups. The participation of the City and EDA in this cooperative effort enables and facilitates
delivery of homeless services and resources through effective networking. In addition, any
development of homeless services outside the city limits serves to lessen the City's homeless
problems.
22
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
c. Public Housin2 Improvements
The Housing Authority of the County of San Bernardino ("Authority") owns and manages about 800
units of public housing within the City limits, and nearly 2,000 countywide, for occupancy by very
low-income families who pay no more than 30 percent of their monthly income for rent. The
Authority's public housing program includes a mixture of single-family housing (scattered sites),
multifamily housing, and special needs housing (such as for seniors and individuals with disabilities)
funded under several state and federal housing programs. According to the Authority, there are
currently 24, 140 applicants on the waiting list for Public Housing Programs. Because the waiting list
is currently closed, the number of households eligible for, and desiring assistance, is undoubtedly
much larger than documented.
D. Public Housin2 Resident Initiatives
Due to the size of San Bernardino County, the Authority divided its service area into seven districts.
Authority Staff coordinated and monitored the election of a jurisdiction-wide Resident Advisory
Council to represent the voice of the resident population in these districts. The Resident Advisory
Council's overall purpose is to improve the quality of life and resident satisfaction within assisted
housing. It also participates in self-help initiatives to enable residents to create a positive living
environment for their families.
E. Lead Based Paint Hazard Reduction
The Lead Based Paint Hazard Reduction Strategy is detailed in the Five- Year Consolidated Plan. It is
summarized as follows: (1) Coordinating public and private efforts to reduce lead-based paint
hazards and protect young children; (2) Integrating lead hazard evaluation and reduction activities
into existing housing programs; (3) Public awareness through educational materials and programs;
and (4) Education and advocacy and (5) lead base eradication to the extent fmances are available.
The City of San Bernardino will continue to implement this strategy in Fiscal Year 2004-2005.
lilli:illillill'millillimi:immlml:ii:mmillm~T:immllmmmm~~.mmmmmmi'~m'lmllnlrW,El{lrl!lmimmmnl:mll~
The City has set forth a comprehensive Anti-Poverty Strategy in the Five-Year Consolidated Plan
that it plans to implement over the five-year period.
The City of San Bernardino will continue to meet with public and other housing providers, private
and governmental health, mental health, and social service agencies to use all available resources to
their maximum levels of effectiveness to provide for San Bernardino's needy and hungry. Meetings
between these parties will occur regularly throughout the fiscal year to endorse applications for
funding and to discuss cooperative ventures as they present themselves.
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DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
The City will undertake annual reviews of all agencies it provides fmancial assistance to in
conformance with 24 CFR 91.230. Its findings will be provided as part of the CAPER Report due to
HUD annually. The report will describe the current status and success of planned activities as
described in the Plan and other information that describes progress and successes of activities.
The Five-Year Consolidated Plan priorities will be evaluated through comparison of goals, set out
for the fiscal year compared with productivity characteristics and completion data for each program
or activity set for accomplishments of those goals. The numbers with the objective presented in the
Report will state each program and priority's overall effectiveness.
"CPD Consolidated Plan System Listing of Proposed Projects" identifies the City's Priority
Description and One-Year CDBG Funds Investment Plan for non-housing community development
activities for the City of San Bernardino. Proposed non-housing activities include public facility
improvements such as the rehabilitation of public service facilities including but not limited to senior
centers and emergency shelterlhomeless facilities, park/playground improvements, installation of
lighting within low- and moderate-income neighborhoods, as well as the funding of a multitude of
public services/agencies. A majority of the public service agencies funded provide counseling, food,
job training, child care and serve the City' seniors, children/adolescents, youth programs, shelters,
etc., and households in general.
A. Specific CDBG Grant Program Submission Requirements
1. CDBG - Other resources that may become available in addition to annual grant - None
a. Program income estimated and expected to be generated during the Program Year -
$250,000.
(I) The amount estimated and expected to be generated by and deposited to
revolving loan funds - None
(2) The total amount estimated and expected to be received from each new float-
funded activity that is included in the Plan - None
(3) The amount estimated and expected to be received during the current
program year from float-funded activities described in a prior statement or
plan - $260,308 CinemaStar
b. Program income received in the preceding program year that has not been included in
a statement or plan - None
(I) Proceeds from Section 108 loan guarantees that will be used during the year
to address the priority needs and specific objectives identified in the strategic
plan - $1,000,000
24
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
(2)
Surplus funds from any urban renewal settlement for community
development and housing activities - None
(3)
Any grant funds returned to the line of credit for which the plauned use has
not been included in a prior statement or plan - None
2. Float-funded Activities - None
3. Section 108 Activities - the City is presently obligated to repay two Section 108 loans, the
CinamaStar and the 303 3rd Street Building for a total of outstanding 108 loans of
$7,940,000. The City or EDA currently uses the project revenue stream (lease payments) or
EDA redevelopment tax increment funds to pay the debt service on both loans. Both of these
projects continue to provide jobs for the low- and moderate-income population of the City of
San Bernardino, as well as provide a reliable revenue source to the City in the form of sales
tax and property taxes which are reinvested in the community in the form of services and the
provision of public improvements.
Prior to June 30, 2004, the City anticipates re-applying for a HUD Section 108 Loan to fund
two (2) project specific activities:
a. North Arden-Guthrie - Retail/Entertainment Shopping Center
Acquisition of24 privately owned residential structures or vacant parcels (4 vacant parcels);
relocation of approximately 80 residential tenants; demolition of approximately 20
residential structures; development of over 17 acres containing between 122,000 to 186,000
square feet of retail, restaurants, entertainment and recreational shopping center together with
infrastructure such as parking, and on and off site street improvements. Total project costs
are estimated at $10 million (includes land acquisition) and development costs are estimated
at $17 million. The sources of funds for this project are as follows: Developer
Equity/Financing contribution of approximately $22 million and $5 million in public
resources from the Redevelopment Agency or Section 108 Loan Guarantee Funds.
b. Mercado Santa Fe
Phase I
Approximately 9.2 acres, and located in the southwest quadrant ofI-215, Mount Vernon
Avenue, Railroad Tracks and 3rd Street and Rialto Avenue, commonly referred to as Mercado
Santa Fe. The primary anchor tenant for Mercado Santa Fe will be Food 4 Less Supermarket
along with a series of other regional and local tenants. Mercado Santa Fe will become a new
neighborhood shopping venue that will be designed and merchandised to support the
immediate surround area (such as: Wells Fargo Bank, El Polio Loco, Burger King, Krispy
Kreme). Phase I will contain an approximately 59,241 square-foot supermarket plus another
39,500 square feet of other specialty retailers. Total project and development costs are
estimated to be in excess of $22 million. Project sales from this shopping center are
expected to be about $31 million per year, with the creation of about 200 full time new jobs
25
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
and 200 full time construction jobs. The project is scheduled to be commence in fall of2004
and open in fall of 2005.
Phase II
Phase II is assumed to only encompass the area bounded by K Streetto the west, 1-215 to the
east; 2nd Street to the south and 3rd Street to the north. The plan currently underway provides
for much of this acreage to be rezoned from Light Industrial to Commercial General (CG-I)
in order to allow a variety of commercial retail uses. This area contains about 22 acres of
land which will allow development about 230,000 to 250,000 square feet of retail space; total
project and development costs are in excess of$30 million (which includes land assemblage,
relocation, site clearance and development costs). The project assumes a more parochial
development that may contain mixed retail and some office uses; these retail uses may
consist of tenants ranging in size from 1,200 square feet to as large as 130,000 square feet
This new shopping center will blend with the uses and the architectural elements of the
Historic Train Depot to the north, and the Mercado Santa Fe Phase I. This development
phase is expect to generate 400 construction related jobs and about 460 full time jobs, with
an annual estimated $58 million in annual sales tax revenues for the City. Phase II is
expected to follow completion of Phase I described above. Resources for the project are
expected to be provided by Developer Equity/Financing, market tax credits and
Redevelopment Agency tax increment or sales tax.
4. Urgent Needs - N/A
B. Specific HOME Submission Requirements
1. Resale Provisions - The City's resale or recapture provision ensures the affordability of units
acquired with HOME funds in compliance with 24 CFR 92.254(a)(4). Specifically,
homebuyers agree that for a ten (10) year period commencing on the date of recordation of
the Agency Deed of Trust and the Affordable Housing Covenant to notify the Agency not
less than thirty (30) days prior to: (i) the sale of the New Home, (ii) the transfer of any
interest in the New Home, or (iii) any refinancing of the lien of the First Mortgage Lender to
which the lien of the Agency Deed of Trust is subordinate. After ten (10) years, and
provided that no default may then exist, the outstanding principal balance and accrued and
unpaid interest ofthe Loan will be forgiven as provided in the Promissory Note.
2. HOME Tenant Based Rental Assistance - N/ A
3. Other Forms of Investment - Private Resources from Community Housing Development
Organization (CHDO) Partners.
4. Affirmative Marketing - The City will use combine efforts ofCHDOs, realtors, newspaper
advertisement and flyers to affirmatively market homes to all residents and prospective
buyers regardless ofrace, color, gender, marital status, religion and disability.
5. Minority/Women's Business Outreach - The City's outreach effort is fully described in the
M/WBE Plan which includes actions that will be taken to establish and oversee the inclusion,
26
DRAFT
City of San Bernardino - Consolidated Plan - FY 2004-2005
to the maximum extent possible, of minority and women, and entities owned by minorities
and women, including without limitation, real estate firms, construction firms, appraisal
firms, management firms, financial institutions, investment banking firms, underwriters,
accountants, and providers of legal services, in all contracts, entered into by the City with
such persons or entities, public and private, in order to facilitate the activities to provide
affordable housing under the HOME Program in compliance with 24 CFR 92.351.(b).
6. Program Income - $500,000
7. Refinancing - N/A
In fiscal year 2004-2005 the City will receive $1,883,748 in HOME funds. HOME funds
will be allocated as follows for the new fiscal year: 10% ($173,882) for EDA HOME
administration; 15% ($260,829) to qualified Community Housing Development
Organizations (CHDOs) who aid in the provision of affordable housing in the community;
5% ($86,941) for CHDO operations and capacity building and $144,924 for the ADD!
Program. The ADD! Program was signed into law by the President in December 2003. This
Program will assist low-income families to become first-time homebuyers.
The remaining $1,217,172 will be used for the provision or preservation of affordable
housing which benefits low-income persons (80% and below median income). The type of
the activities that may be funded include, but are not limited to, rehabilitation of single
family housing, rehabilitation or construction of multi-family housing; homebuyer programs;
acquisition of land, public improvements to facilitate affordable housing and transitional
housing. These funds will be used to augment the Redevelopment Agency's annual Housing
Fund.
c. Specific ESG Submission Requirements
The City solicited and made funding recommendations based on experience, ability to provide
service and the number of households expected to benefit from the program. Match grant funds were
also identified in each recipient's application from fund raising, in-kind donations and volunteers
labor donated. Stafftogether with a representative from San Bernardino's County's Community
Action Partners, Incorporated assisted in reviewing and rating the ESG proposals. Each proposal
was evaluated on: project narrative, past experience, cost effectiveness, leveraging and overall
quality of proposal.
27
01
2
REso'DPJf
3
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO: (1) APPROVING THE 2004/05 CDBG
APPROPRIATIONS IN ATTACHMENT I AS RECOMMENDED BY THE
COMMUNITY DEVELOPMENT CITIZEN ADVISORY COMMITTEE
(CDCAC); (2) APPROVING THE 2004/05 HOME AND EMERGENCY
SHELTER (ESG) GRANT APPROPRIATIONS; (3) APPROVING THE
200112004 CDBG REALLOCATION OF FUNDS; (4) AUTHORIZING THE
MAYOR TO EXECUTE AND SUBMIT TO BUD APPROPRIATE
DOCUMENTS AND TO TAKE ALL NECESSARY ACTIONS TO
IMPLEMENT THE CITY'S 200412005 ANNUAL ACTION PLAN,
INCLUDING EXECUTION OF CONTRACTS WITH PUBLIC SERVICE
AGENCIES.
4
5
6
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J)
WHEREAS, the City of San Bernardino is an entitlement city and eligible to participate
in the United States Department of Housing and Urban Development's (HUD) Community
Development Block Grant (CDBG), HOME and Emergency Shelter Grant (ESG) Programs for
12
O Program Year 2004-2005; and
1:
o
15
WHEREAS, the Mayor and Common Council desire to submit to HUD the City's
Annual Action Plan for the 2004-2005 Program Year; and
16
WHEREAS, the Mayor and Common Council desire to execute Agreements to provide a
variety of community services with certain public service agencies for the 2004-2005 Program
17
18
Year; and
19
WHEREAS, the Mayor and Common Council desire to reallocate 2001/2004 CDBG
20
funds.
21
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED
BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
FOLLOWS:
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Section 1.
That the Mayor and Common Council hereby approve the Community
Development Citizen Advisory Committee (CDCAC), Redevelopment Committee and Staff
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01
2
013
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3
recommendations noted in Attachment I to the April 19, 2004 Staff Report pertaining to the
allocation of Community Development Block Grant (CDBO) funds, and the 2004/2005 HOME
Partnership Act (HOME) and 2004/2005 Emergency Shelter (ESO) Grant and the 2001-2004
CDBO reallocations recommendations contained in the Staff Report, dated April 19, 2004; and
4
5
Section 2.
That the Mayor and Common Council hereby approve the 2004-2005
6 Consolidated Annual Action Plan attached hereto (Exhibit "A"); and
7
Section 3.
That the Mayor is authorized to execute and submit to the U.S.
8
Department of Housing and Urban Development, (HUD) all appropriate documents and to take
all necessary actions to implement the City's 2004-2005 Consolidated Plan and Annual Action
Plan, including, but not limited to, the preparation and execution of CDBO and ESO
Agreements with the respective public service agencies, as prepared and approved by the City
Attorney, a copy of which is on file with the City Clerk, and incorporated herein by reference as
9
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12
though fully set forth at length.
Section 4.
This Resolution shall take effect upon its adoption and execution in the
manner as required by the City Charter.
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01
2
3
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO: (1) APPROVING THE 2004/05 CDBG
APPROPRIATIONS IN ATTACHMENT I AS RECOMMENDED BY THE
COMMUNITY DEVELOPMENT CITIZEN ADVISORY COMMITTEE
(CDCAC); (2) APPROVING THE 20M/OS HOME AND EMERGENCY
SHELTER (ESG) GRANT APPROPRIATIONS; (3) APPROVING THE
200112004 CDBG REALLOCATION OF FUNDS; (4) AUTHORIZING THE
MAYOR TO EXECUTE AND SUBMIT TO BUD APPROPRIATE
DOCUMENTS AND TO TAKE ALL NECESSARY ACTIONS TO
IMPLEMENT THE CITY'S 2004/2005 ANNUAL ACTION PLAN,
INCLUDING EXECUTION OF CONTRACTS WITH PUBLIC SERVICE
AGENCIES.
4
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8
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
9 Common Council of the City of San Bernardino at a
, 2004, by the following vote to wit:
meeting thereof, held on the
10 day of
11 Council Members:
12 ESTRADA
013 LONGVILLE
MCGINNIS
14
DERRY
15
KELLEY
16
JOHNSON
17
MC CAMMACK
Aves
Navs
Abstain
Absent
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19
Rachel G. Clark, City Clerk
20 The foregoing resolution is hereby approved this
day of
,2004.
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22
Judith Valles, Mayor
City of San Bernardino
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as
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RESOLUTIoCD fP 11
3
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
SUBMITTAL OF A SECTION 108 LOAN GUARANTEE APPLICATION
("APPLICATION") TO FACILITATE TWO REDEVELOPMENT
AGENCY PROJECTS (1) MERCADO SANTA FE (SUBAREA B, OF
UPTOWN REDEVELOPMENT PROJECT AREA) AND (2) NORTH
ARDEN-GUTHRIE RETAILIENTERTAINMENT SHOPPING CENTER
(IVDA PROJECT AREA) TO THE U.S. DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT ("BUD").
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WHEREAS, the City of San Bernardino ("City") has determined that a high priority
exists to redevelop two (2) declining and blighted residential and commercial neighborhoods in
the City, specifically North Arden-Guthrie, bounded by HigWand on the north, 20th Street on the
south, Guthrie on the west, and Arden on the east (North Arden-Guthrie - RetaillEntertainrnent
Shopping Center in the "IVDA Project Area"), and the area bounded by 3rd Street on the north,
2nd Street on the south, 1-215 on the east, and Mt. Vernon Avenue on the east (Mercado Santa
Fe - Subarea B, of Uptown Redevelopment Project Area), as more particularly shown on
Exhibits "A" and "B" (collectively, the "Project Areas") attached to the Staff Report of even
JO
II
12
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16
date herewith; and
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WHEREAS, in order to stimulate reinvestment in these Project Areas, it is necessary for
the City and Agency to implement certain activities to change the undesirable conditions
19
existing within these Project Areas, which includes, but is not limited to: acquisition of
20
underutilized residential or commercial properties, demolition, removal or clearance of blighted
structures; relocation assistance to effected businesses or residents, the provision of public
improvements; and for the ultimate redevelopment of such sites into productive uses and in
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conformance with the City General Plan and Redevelopment Plans; and
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III
III
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P:\ApllJdu\Raolatioot\Raol.tto.IUOO4\04-04-I' CDac Rec MCC Rao B.doc:
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Q:
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WHEREAS, the proposed Project Areas are included in the City's 2004/2005 Annual
Action Plan of the City's 2000-2005 Consolidated Plan; and
WHEREAS, the implementation of the Project Areas will assist the City and Agency in
meeting the following national objectives: (I) benefiting low- and moderate-income persons
and (2) addressing slums or blight; and
WHEREAS, the Section 108 Loan Guarantee Program, implemented by the United
States Department of Housing and Urban Development ("HUD") is designed to provide funds
to assist with the project contemplated by the City or Agency within the Project Areas; and
WHEREAS, under the Section I 08 Loan Guarantee Program, the City can borrow up to
five (5) times the amount of its annual Community Development Block Grant (CDBG), and
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with repayment to occur for not more than twenty (20) years; and
WHEREAS, the Mayor of the City and the Executive Director of the Economic
Development Agency, the administrator of the CDBG Program, are authorized to submit the
$10 million Section 108 Loan Guarantee application, and any amendments thereto and all
12
understandings, assurances and guarantees contained therein, and to act in connection with the
15
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application to provide such additional information as may be required by HUD; and
WHEREAS, the City is requesting $10 million from the Section 108 Loan Guarantee
Program (the "Loan") to assist with the implementation of the Project Areas and will pledge its
yearly CDBG Grant to HUD to pay the principle and interest on said Loan for a period of not
more than twenty (20) years.
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NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED
BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
FOLLOWS:
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Section 1.
The City hereby certifies and assures with respect to its application for a
24
loan pursuant to Section 108 of the Housing and Community Development Act of 1974 (ACT),
as amended, that it possesses the legal authority to make the pledge of CDBG grants to repay
said loan required under 24 CFR 570.705 (b )(2).
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Section 2.
As prerequisites for submission of the application to HUD, the City
3
certifies that it has: (a) furnished citizens with information required by Section 570.704 (a) (2)
(i) of Title 1 of the ACT, as amended; (b) held at least one public hearing or meetings, February
24, 2004, April 5, 2004 and April 19, 2004 to obtain the views of citizens on community
development and housing needs; and (c) prepared its application in accordance with Section
4
5
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570.704 (a) (I (iv) of Title I of the ACT, as amended, and made the application available to the
public.
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Section 3.
The City has and will continue to follow a detailed citizen participation
9
plan that meets the requirements described in Section 570.704 (a) (2) of Title I of the ACT.
10
Section 4.
The City has and will continue to affirmatively further fair housing, and
11
the guaranteed loan funds will be administered in compliance with the Title VI of the Civil
Rights Act of 1964 (42 V.S.C. 2000d et. seq.) and the Fair Housing Act (42 V.S.C. 3601-3619)
and the City will expend in the aggregate, at least 70 percent of all CDBG funds, as defined in
Section 570.3 of the ACT during the term of the Consolidated Plan, specifically to insure the
12
City carries out activities for the benefit of low and moderate income persons, as described in
15
Section 570.208 (a) of the ACT.
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Section 5.
The City has and will continue to comply with the requirements
17
governing displacement, relocation, real property acquisition, and the replacement of low- and
moderate-income housing described in Section 570.606.
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Section 6.
The City has and will continue to certify regarding debarment,
20
suspension, and other responsibility in accordance with the provisions of the ACT.
21
Section 7.
The City has and will continue to comply with other provisions of the
22 ACT and with other applicable laws.
23
Section 8.
The City hereby assures and certifies with respect to its application for a
24
loan guarantee pursuant to Section 108 of the ACT, as amended, that it has made efforts to
obtaining fmancing for the Project described herein without the use of such guarantee, that it
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o I will maintain documentation of such efforts for the term of the Loan guarantee, and that it
2 cannot complete such financing consistent with the timely execution of the Project Area plans
3 without such guarantee.
03
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4
Section 9.
The City will continue to maintain a drug-free workplace as provided
5 under 24 CFR Part 24 (Appendix C) of the ACT.
6 Section 10. The City has and will continue to certify, to the best of its knowledge and
belief the following anti-lobbying statement required under 24 CFR Part 87 (Appendix A) that:
7
8
(a) No federal appropriated funds have been paid or will be paid by or on behalf of it, to any
9
person for influencing or attempting to influence an officer or employee of any agency, a
10
Member of Congress, an officer or employee of Congress, or any employee of any member of
II
Congress in connection with the awarding of any grant, loan or cooperative agreement, it will
12
complete and submit Standard Form LLL "Disclosure Form to Report Lobbying," in
accordance with its instructions; and (b) it will require that the language of this paragraph (a) of
this certification be included in the award documents for all subawards at all tiers (including
subcontracts, subgrants, and contracts under grants, loans and cooperative agreements) and that
all subrecipients shall certify and disclose accordingly.
Section II. The Mayor and Common Council hereby find and determine that the
facts and circumstances set forth in the Recitals hereof are true and correct in all respects. The
Mayor and Common Council acknowledge that the Staff report together with the Attachment
No. IV and Exhibits "A" and "B" are correct and in accordance with the direction provided to
Staff at the Mayor and Common Council meeting of April 5, 2004.
Section 12. The Mayor and Common Council hereby authorize the Mayor and the
Executive Director of the Economic Development Agency to submit the Section 108 Loan
Guarantee Application consistent with the actions of the Mayor and Common Council at this
public hearing of April 19, 2004, and to execute such documents as may be required in order to
submit and implement the application and issue debt obligations pursuant to the requirements
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under the ACT.
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Section 13. This Resolution shall take effect upon its adoption and execution in the
manner as required by the City Charter.
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01
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03
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RESOLUTION OF THE MAYOR AND COMMON COUNCIT.. OF THE
CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
SUBMITTAL OF A SECTION 108 LOAN GUARANTEE APPLICATION
("APPLICATION") TO FACIT..ITATE TWO REDEVELOPMENT
AGENCY PROJECTS (1) MERCADO SANTA FE (SUBAREA B, OF
UPTOWN REDEVELOPMENT PROJECT AREA) AND (2) NORTH
ARDEN-GUTHRIE RETAn../ENTERTAINMENT SHOPPING CENTER
(IVDA PROJECT AREA) TO THE U.S. DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT ("HUD").
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
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Common Council of the City of San Bernardino at a
meeting thereof, held on the
8
day of
, 2004, by the following vote to wit:
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Council Members:
Navs
Abstain
Absent
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Aves
II
ESTRADA
LONGVILLE
MCGINNIS
DERRY
KELLEY
JOHNSON
MC CAMMACK
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Rachel G. Clark, City Clerk
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The foregoing resolution is hereby approved this
day of
,2004.
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Judith Valles, Mayor
City of San Bernardino
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By:
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