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HomeMy WebLinkAboutCDC/1999-37 .',1 (See Also Res 1999-263) RESOLUTION NO. CDC 1999-37 2 3 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING THE DISPOSITION OF CERTAIN LANDS BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO DAVID L. HARDY AND MICHAEL J. HARDY, ON THE TERMS SET FORTH IN A DISPOSITION AND DEVELOPMENT AGREEMENT (CALIFORNIA BIO-MASS, INC., - HARDY) 4 5 6 7 8 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency" 9 owns or has a beneficial interest in certain Property referred to in this Resolution collectively a 10 the "Property" which is situated within the redevelopment project area of the Northwes 11 Redevelopment Project and is generally located on the southwest side of Industrial Parkwa 12 between Devil's Creek Channel and Cable Creek Channel in the City of San Bernardino (AP 13 266-041-71); and 14 WHEREAS, based upon a review and evaluation of the proposal submitted to th 15 16 Agency, the Community Development Commission of the City of San Bernardino (th 17 "Commission") as the governing board of the Agency selected David 1. Hardy and Michael 1. 18 Hardy, tenants in common, doing business as California Bio-Mass, Inc., a California Corporatio 19 (the "Developer") for Property Acquisition and Redevelopment Assistance Between Californi 20 Bio Mass, Inc., and the Redevelopment Agency of the City of San Bernardino; and 21 WHEREAS, the Agency staff have prepared a draft of a Disposition Developmen 22 Agreement (the "Agreement") for the disposition of the Property to the Developer together wit 23 a report which summarizes the key terms of the Agreement and describes the manner in whic 24 the proposed disposition of the Property to the Developer will assist in the elimination of bligh 25 (the "33433 Report"); and -1- .1 CDC 1999-37 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 WHEREAS, it is appropriate for the Commission to take the actions with respect t disposition of the Property to the Developer and approve the Agreement as set forth in thi Resolution. NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION ACTIN ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SA BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. On October 18, 1999, the Commission conducted a full and fair join public hearing with the Mayor and Common Council of the City of San Bernardino relating t the disposition and redevelopment of the Property by the Developer pursuant to the terms an conditions of the Agreement. The minutes of the Agency Secretary for the October 18, 199 meeting of the Commission shall include a record of all communication and testimony submitte to the Commission and to the Mayor and Common Council by interested persons relating to th joint public hearing, the 33433 Report and the approval of the Agreement. Section 2. A copy of the Agreement in the form submitted at the joint public hearin is on file with the Agency Secretary. The Commission hereby finds and determines as follows: (i) the disposition and redevelopment of the Property by the Developer in accordanc with the Agreement is consistent with the Redevelopment Plan for the Northwest Redevelopmen Project and the Agency Implementation Plan; (ii) the terms and conditions of the Agreement contain assurances that the Property wil be redeveloped for the Project as permitted under the Redevelopment Plan; (iii) the purchase price for the Property payable by the Developer to the Agency, subjec to the satisfaction of the terms and conditions of the Agreement, is an amount which th Commission declares to be fair, just and reasonable, and that the disposition of the Property 0 -2- CDC 1999-37 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the terms set forth in the Agreement shall materially benefit and sustain the implementation 0 the Redevelopment Plan and assist the community to alleviate blighting conditions caused b vacant land, the underutilization of parcels and lack of adequate public infrastructure; (iv) the consideration payable by the Developer to the Agency for the disposition of th Property (e.g.: $441,000.00 in cash and the promissory note secured by the Deed of Trus payable to the Agency at the close of the escrow) is an amount which is not less than the fai reuse value of the Property at the use and with the redevelopment and maintenance covenant and other terms, conditions and development costs authorized in the Agreement. Section 3. The Commission hereby finds and determines that no furthe environmental review by the Agency of the disposition and redevelopment of the Property of th Developer pursuant to the terms and conditions of the Agreement is necessary at this time unde the California Environmental Quality Act, as amended, in light of the following facts: (i) a final parcel map for the Property has previously been recorded redevelopment of the Property by the Developer pursuant to the Agreement will not require an revision or change in the approved parcel map for the Property; and (ii) the redevelopment of the Property by the Developer pursuant to the Agreement doe not involve any new significant increase in the severity of previously identified environmenta effects which were not previously considered as part of the approval of the map for the Property' and (iii) the Property is situated in the redevelopment project area of the Northwes Redevelopment Project and by virtue of the facts set forth in subparagraph (i) and (ii) above pursuant to the provisions of Title 14 California Code of Regulation Section 15180, no furthe review of the potential effect of the redevelopment of the Property in accordance with th -3- CDC 1999-37 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Agreement is required at this time under CEQA and the Final EIR for the Northwes Redevelopment Project. Section 4. The Commission hereby approves, receives and files the 33433 Repo and the Agreement in the form as submitted at this joint public hearing. Section 5. The Commission hereby approves the disposition of the Property to th Developer on the terms set forth in the Agreement. The Chair of Commission and the Executiv Director are hereby authorized and directed to execute the Agreement on behalf of the Agenc together with such technical and conforming changes as may be recommended by the Executiv Director and approved by the Chair of the Commission. The signatures of the Chair of th Commission and the Executive Director on the Agreement shall provide conclusive evidence tha the Agreement has taken effect. In the event that the Agreement may not be fully executed b the parties for any reason within thirty (30) days following the date of adoption of thi Resolution, the authorization granted to the Chair of the Commission and the Executive Directo to execute the Agreement on behalf of the Agency shall be of no further force or effect. Section 6. Provided that the Agreement has been fully executed by the parties withi the period of time set forth in Section 5 of this Resolution, the Executive Director of the Agenc is hereby authorized and directed to take all actions set forth in the Agreement on behalf of th Agency to close the escrow transaction described therein. This Resolution shall become effective immediately upon its adoption. Section 7. 21 IIII 22 IIII 23 IIII 24 IIII 25 -4- CDC 1999-37 1 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING THE 2 DISPOSITION OF CERTAIN LANDS BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO DAVID L. HARDY 3 AND MICHAEL J. HARDY, ON THE TERMS SET FORTH IN A DISPOSITION AND DEVELOPMENT AGREEMENT (CALIFORNIA BIO- 4 MASS, INC., - HARDY) 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 6 Development Commission of the City of San Bernardino at a ioint reqular 7 thereof, held on the 18th day of October 8 COMMISSION MEMBERS: AYES 9 ESTRADA 10 LIEN 11 McGINNIS 12 SCHNETZ 13 (VACANT) -5th Ward 14 ANDERSON 15 MILLER 16 17 18 x x x x x x meetin , 1999, by the following vote, to wit NAYS ABSTAIN ABSENT The foregoing Resolution is hereby approved this;tl~ day of October 19 20 21 22 23 24 25 26 27 28 By: - 5 - , 1999. CDC 1999-37 SUMMARY REPORT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433 OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW ON A LEASE AGREEMENT BY AND BETWEEN THE SAN BERNARDINO REDEVELOPMENT AGENCY AND CALIFORNIA BIO-MASS, INC. INTRODUCTION This summary report has been prepared pursuant to Section 33433 of the California Health and Safety Code. This report sets forth certain details of the proposed disposition of certain real property pursuant to a Disposition and Development Agreement (Agreement) by and between the San Bernardino Redevelopment Agency (Agency) and California Bio-Mass, Inc. (Developer). Said real property is located on the southwest side of Industrial Parkway, between Devils Creek Channel and Cable Creek Channel in the City of San Bernardino (APN 266-041-71 ). This report is organized into the following seven sections: A. Salient Points of the Proposed Aareement: This section includes a description of the project and the major responsibilities to be assumed by the Agency and the District. B. Cost of the Aareement to the Aaencv: This section outlines the total and net costs of the proposed Agreement to the Agency. C. Estimated Value of the Interests to be Conveyed Determined at the Hiahest Use Permitted Under the Redevelopment Plan: This section summarizes the value of the Site to be conveyed to the District at the highest use permitted. D. Estimated Reuse Value of the Interests to be Conveyed Determined Based on the Reauired Use and with the Conditions. Covenants and Development Costs Reauired bv the Proposed Aareement: This section summarizes the value of the Project determined at the use required by the proposed Agreement, recognizing the impact of the proposed Agreement's terms and conditions. E. Consideration Received and Comparison with the Fair Reuse Value: This section describes the compensation to be received by the Agency, and the reasons for any difference between the compensation and the fair reuse value. - 1 - CDC 1999-37 F. SliQht Alleviation: This section describes the existing blighting conditions on the Site, and an explanation of how the proposed Agreement will assist in alleviating the blighting conditions. G. Conformance with the AS 1290 ImDlementation Plan: This section identifies how the proposed Agreement will result in a development that fulfills goals and objectives established in the Agency's AB 1290 Five Year Implementation Plan. A. SALIENT POINTS OF THE PROPOSED AGREEMENT 1. Description of the Proposed Project The Agency has previously acquired approximately 10.28 acres of certain real property generally situated at the north side of Hallmark Parkway, north of Devil Creek Channel in the City of San Bernardino (APN 266-041- 71). The property is more particularly described in the Agreement and is located within the Northwest Redevelopment Project area. The Agency intends to sell the property to the Developer in return for Developer's agreement to cause the construction thereon of an organic recycling and transfer facility, a warehouse and packaging/bagging plant on the property for the collection, transfer and sale of organic products. The recycling transfer facility will be a 15,000 square foot building designed to receive recycling materials collected in the City of San Bernardino and other commercial accounts. The materials, which will be collected, include green waste, wood waste, wallboard, paper, C&D material, pre-post food material and liquids. All material will be transferred to another site for processing. 2. Agency Responsibilities: a) Upon completion of the Developer's Due Diligence investigation of property, the Agency shall transfer the property to the Developer for a sales price of $441 ,000. b) Contribute forty percent (40%), not to exceed $24,000.00, of the cost of off-site sewer installation cost payable when the Agency sells nearby lands to a third party, but not later than five (5) years after completion of the project. c) Execute a Deed of Trust that will mature in 18 months and is subordinate to a Construction Loan for the project not to exceed $860,000. - 2 - CDC 1999-37 3. Developer Responsibilities a) Purchase the property for $441 ,000. Provide cash in the amount of $170,000 due at the close of escrow and the execution of a Note and Deed of Trust for the remainder. b) Construct the project including the installation of off-site sewer improvements that will benefit adjacent agency land. c) Complete the construction of project, including the installation of off-site sewer improvements, within one year. B. COST OF THE AGREEMENT TO THE AGENCY The costs incurred by the Agency are provided below: Site Acquisition Total Agency Costs $671,695.20 $671,695.20 C. ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED AT THE HIGHEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN. The estimated fair market value of the interest to be conveyed, determined at the highest uses permitted, is approximately Four Hundred Forty-One Thousand Dollars ($441,000). This value is supported by an appraisal report prepared by James Smothers, MAl, dated February 23, 1999, adjusted for the estimated cost of the installation of the off-site sewer improvements. D. ESTIMATED REUSE VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED BASED ON THE REQUIRED USE AND WITH THE CONDITIONS, COVENANTS AND DEVELOPMENT COSTS REQUIRED BY THE PROPOSED AGREEMENT The Site will be conveyed to the Developer for the highest use value permitted. E. CONSIDERATION RECEIVED AND COMPARISON WITH THE FAIR REUSE VALUE As noted above, the Site is being conveyed to the Developer at its highest use value. - 3 - CDC 1999-37 F. BLIGHT ALLEVIATION The Development will alleviate blighting conditions caused by vacant land, the under-utilization of parcels and lack of adequate public infrastructure improvements within the Northwest Industrial Park. The project will contribute employment opportunities with the creation of over 18 new jobs. Development will serve as a catalyst project within the proposed Recycling Market Development Zone (RMDZ). G. CONFORMANCE WITH THE AB 1290 IMPLEMENTATION PLAN The Five-Year Implementation Plan adopted by the Agency contains several broad operational goals and objectives. Among these are the following: 1. Creation of incentive programs for existing property owners to reinvest in their properties, including the utilization of Disposition and Development Agreements and Owner Participation Agreements. 2. Creation of viable housing options within the Redevelopment Project that span a range of incomes, including housing for the homeless and formerly homeless. 3. Creative implementation of catalyst projects which spur reinvestment on surrounding blocks. 4. Land acquisition for the creation of public facilities, which serve both the immediate neighborhood and the community at large. 5. Enhancement of ceremonial streets that function as the focal points in their individual neighborhoods. 6. Continued preservation of historically significant structures. 7. Improvements to existing water and sewer lines, streets, sidewalks, parkways and lighting in the public right-of-way. 8. Continued participation in the enhancement of the public infrastructure system. 9. Acquisition and development of property to abate nuisance uses and provide for future development. The proposed Agreement will assist the Agency in meeting some of the objectives and goals of its Five-Year Implementation Plan in the following ways: - 4 - CDC 1999-37 1. The Agreement encourages reinvestment revitalization in the blighted area. 2. The project will provide for necessary public infrastructure improvements. 3. The project will provide for the creation of new employment opportunities for San Bernardino residents. Based upon the preceding factors, the proposed Agreement is consistent with the adopted Five-Year Implementation Plan. The execution of a Disposition and Development Agreement is subject to the closure of public hearing with a majority approval vote by the Agency. Dated: September 29, 1999 SMM:summary report-California Sio-Mass, Inc. - 5 - CDC 1999-37 PARCELS AFTER ADJUSTMENT CHANNEL R/W PER DEED TO SAN .BERNAROINO COUNTY F1.000 CONTROL DISTRICT BK. 2268/1~. .... R/W/ UNE PER DEED TO STATE OF CAUF'ORNIA BK. J772/82 INST. NO. 55 ..,0 ~ ... ').1..... '" ~..... "'..t-. '" '" t' ","'~~'\ ~S)- ~r INDUSTRIAL PKWY PER EASEMENT TO CITY OF SAN BERNARDINO INST. 91-41544J O.R. z ,",,-PARCEL 2 !!l ~ 3~70 S.F. ~ ~ ~ III .......... . .......... (J\ .......... ~1.J8' N 59'08'09. E 1251.21' DEVIL CREEK FLOOD CONTROL CHANNEL ~ CHANNEl R/W PER . DEED TO SAN BERNARDINO COUNTY F1.000 CONTROL DISTRICT BK. 22811/142. POINT OF BEGINNING FOR DESCRIPTIONS [I