HomeMy WebLinkAboutCDC/2000-28
(See Companion Resos. 2000-249, CDC/2000-27
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RESOLUTION NO. CDC/2000-28
3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO APPROVING THE TERMS OF AN OWNER
4 PARTICIPATION AGREEMENT (303 THIRD STREET PROJECT) BY AND
BETWEEN 303, L.L.C., AND THE REDEVELOPMENT AGENCY OF THE
5 CITY OF SAN BERNARDINO AND APPROVING THE TERMS OF A 2000
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SECTION 108
6 PROJECT DEVELOPMENT LOAN AGREEMENT (303 THIRD STREET
PROJECT) BY AND BETWEEN THE AGENCY AND 303, L.L.C., AND
7 AUTHORIZING CERTAIN OTHER ACTIONS RELATING TO THE
DISBURSEMENT OF THE PROCEEDS OF UP TO $344,000.00 IN EDI
8 GRANT/LOAN PROCEEDS AND UP TO $1,840,000.000 IN SECTION 108
LOAN PROCEEDS BY THE AGENCY TO 303, L.L.C. (303 THIRD
9 STREET PROJECT)
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WHEREAS, the Community Development Commission of the City
12 of San Bernardino (the "Commission") is the governing board of the
13 Redevelopment Agency of the City of San Bernardino, a body corporate
14 and politic (the "Agency"), organized and existing pursuant to the
15 Community Redevelopment Law (Part 1 of Division 24) commencing with
16 Section 33000 of the Health and Safety Code of the State of
17 California; and
18 WHEREAS, the Agency shall concurrently with the approval of
19 this Resolution authorize and approve the terms of a "Contract for
20 Loan Guarantee Assistance Under Section 108 of the Housing and
21 Community Development Act of 1974, As Amended (42 U.S.C. Section
22 5308)" by and among the Secretary of the United States Department of
23 Housing and Urban Development ("HUD"), the City of San Bernardino, as
24 the "Unit of Local Government" (the "City") and the Agency as the
25 "Designated Public Agency Borrower" under such contract (the "HUD
26 Section 108 Loan Agreement'); and
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WHEREAS, the Agency shall use and apply the Community
2 Development Block Grant funds it obtains under such HUD Section 108
3 Loan Agreement to provide certain community redevelopment assistance
4 to 303, L.L.C., a California limited liability company (the "Owner")
5 in support of a Special Economic Development Project (the "303 Third
6 Street proj ect") pursuant to the terms and conditions of an Owner
7 Participation and Economic Development Initiative Loan Agreement (the
8 "OPA") by and between the Owner and the Agency and pursuant to the
9 terms of a separate Section 108 loan agreement (the "Agency Section
10 108 Loan Agreement") by and between the Owner and the Agency; and
11 WHEREAS, the OPA and the Agency Section 108 Loan Agreement
12 affect certain lands (the "303 Third Street Property" as more
13 particularly described in the OPA and the Agency Section 108 Loan
14 Agreement) situated in the Central City Redevelopment Project, San
15 Bernardino, California; and
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WHEREAS, the OPA sets forth the terms and conditions on
17 which the Owner shall conclude its purchase of the "303 Third Street
18 Parcel" as presently owned by the State of California, for
19 redevelopment and reuse by the Owner in accordance with the OPA and
20 the Agency Section 108 Loan Agreement; and
21 WHEREAS, as part of the transaction contemplated under the
22 OPA and the Section 108 Loan Agreement, and subj ect to: (i) the
23 acquisition by the Owner of the 303 Third Street Parcel from the State
24 of California; and (ii) the receipt of final approval by the City and
25 the Agency of certain related Community Development Block Grant loan
26 approvals from HUD, the Agency shall make available to the Owner a
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1 certain loan of funds pursuant to the OPA (the "EDI Loan") in an
2 original principal amount not to exceed Three Hundred Forty Four
3 Thousand Dollars ($344,000.00) and the Agency shall also make
4 available to the Owner a separate loan of funds pursuant to the Agency
5 Section 108 Loan Agreement in a principal amount not to exceed One
6 Million Eight Hundred Forty Thousand Dollars ($1,840,000.00). The
7 proceeds of the EDI Loan and the Agency Section 108 Loan, together
8 with other sources of funds as provided by the Owner shall be used and
9 applied by the Owner for the acquisition of all the land necessary for
10 the 303 Third Street Project and the payment of certain costs of the
11 development, construction, improvement and financing of the 303 Third
12 Street Project, as described in the written Community Development
13 Block Grant loan application, dated May 24, 2000, as supplemented byt
14 he City (the "HUD Loan Application") submitted to HUD by the City; and
15 WHEREAS, the sole source of funds available to the Agency
16 to provide for the disbursement to the Owner of any sums from: (i) the
17 EDI Loan; and (ii) the Agency Section 108 Loan, shall be obtained by
18 the Agency under the HUD Section 108 Loan Agreement (including the
19 Economic Development Improvement Grant component thereof as originally
20 authorized under United States Department of Housing and Urban
21 Development Economic Development Initiative Grant No. B-93-ED-06-0539,
22 as amended); and
23 WHEREAS, subject to the receipt of the Mayor of the City of
24 the approval by HUD of the 303 Third Street Project as described in
25 the HUD Loan Application and the transaction as contemplated under the
26 OPA and the Agency Section 108 Loan Agreement, the loan guarantee
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1 commitment by HUD under Section 108 of the Housing and Community
2 Development Act of 1974, as amended for HUD Section 108 Loan Guarantee
3 Program Grant Number B-94-MC-06-0539 which shall authorize the Agency
4 to obtain a loan under the Section 108 Loan Guarantee Program of HUD
5 (and apply the proceeds of the Economic Development Initiative Grant)
6 in accordance with the terms and conditions set forth in the HUD Loan
7 Application in an amount not to exceed $1,840,000.00 for disbursement
8 by the Agency for the redevelopment of the 303 Third Street Project
9 by the Owner; and
10 WHEREAS, the Agency shall disburse the proceeds of the EDI
11 Loan under the terms and conditions of the OPA in an amount not to
12 exceed $344,000 for the acquisition of the lands necessary for the 303
13 Third Street proj ect and shall disburse the proceeds of the HUD
14 Section 108 Loan under the terms and conditions of the Agency Section
15 108 Loan in an amount not to exceed $1,840,000.00 to the Owner for the
16 acquisition, environmental remediation, construction, improvement and
17 financing of the 303 Third Street Project; and
18 WHEREAS, the Commission acting as the governing board of the
19 Agency deems it appropriate at this time to authorize the approval of
20 the OPA and the Agency Section 108 Loan Agreement by and between the
21 Agency and the Owner in support of the 303 Third Street Project, as
22 set forth in this Resolution.
23 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION, ACTING
24 ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO,
25 DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
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Section 1.
The Commission hereby acknowledges the action
2 taken by the Mayor and Common Council relating to the HUD Section 108
3 Loan Agreement, the EDI Grant and the 303 Third Street Project in the
4 resolution of even date herewith entitled:
5 "Resolution of the Mayor and Common Council of
the City of San Bernardino, California Approving
6 the Contract for Loan Guarantee Assistance Under
Section 108 of the Housing and Community
7 Development Act of 1974, As Amended, 42 USC
Section 5308 (CDBG Section 108 Contract No. B-OO-
8 MC-06-0539) for the 303 Third Street Project, And
Authorizing the Application of up to $344,000.00
9 in Economic Development Initiative Grant Proceeds
by the Redevelopment Agency of the City of San
10 Bernardino for the 303 Third Street Project"
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Section 2.
(a) The Commission hereby approves the OPA
12 in the form as submitted to the Commission at the meeting at which
13 this Resolution is adopted. The Chairperson of the Commission and the
14 Agency Secretary are hereby authorized and directed, subject to the
15 provisions of Section 2(c) of this Resolution, to execute the OPA on
16 behalf of the Agency, together with technical and conforming changes
17 to the text of the OPA and each of the attachments and exhibits
18 thereto as may be recommended by the Executive Director and Agency
19 Special Counsel in order to conform the provisions of the OPA to the
20 HUD Section 108 Loan Agreement and the EDI Grant, as applicable.
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(b) The Commission hereby approves the Agency Section 108
22 Loan Agreement in the form as submitted to the Commission at the
23 meeting at which this Resolution is adopted. The Chairperson and the
24 Agency Secretary are hereby authorized and directed subject to the
25 provisions of Section 2(c) of this Resolution to execute the Agency
26 Section 108 Loan Agreement on behalf of the Agency, together with
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1 technical and conforming changes to the text of the Agency Section 108
2 Loan Agreement, and each of the attachments and exhibits thereto, as
3 may be recommended by the Executive Director and Agency Special
4 Counsel in order to conform the provisions of the Agency Section 108
5 Loan Agreement to the HUD Section 108 Loan Agreement and the EDI
6 Grant, as applicable.
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(c)
Neither the OPA or the Agency Section 108 Loan
8 Agreement shall be executed on behalf of the Agency or be deemed to
9 have any force or effect until such time as the City and the Agency
10 have each caused the HUD Section 108 Loan Agreement and the EDI Grant
11 to be executed and delivered to HUD.
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Section 3.
(a) Subject to the satisfaction of the
13 conditions for the disbursement of the EDI Loan to the Owner under the
14 OPA, the Executive Director is hereby authorized to disburse the
15 proceeds of the EDI Loan to the Owner.
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(b)
Subject to the satisfaction of the conditions to the
17 close of the escrow transaction described in Section 7.0 of the Agency
18 Section 108 Loan Agreement (the "EscrowU), the Executive Director is
19 hereby directed to cause the "Initial DisbursementU thereunder to be
20 made to the Owner.
After the close of the Escrow, the Executive
21 Director is hereby further authorized and directed to cause each
22 subsequent "Advanceu under the Agency Section 108 Loan to by disbursed
23 to the Owner in accordance with the applicable terms and conditions
24 for each such disbursement of loan proceeds under the Agency Section
25 108 Loan Agreement.
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The Executive Director is further authorized and
(c)
2 directed to initiate all other ministerial actions on behalf of the
3 Agency relating to the implementation of the 303 Third Street Project
4 as contemplated under the OPA and the Agency Section 108 Loan
5 Agreement, as applicable, including the delivery of all related
6 documents, wire fund transfer instructions, account fund balance
7 confirmation reports and the like, as contemplated under the OPA and
8 the Agency Section 108 Loan Agreement.
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The Commission hereby acknowledges that the
Section 4.
10 scheduled repayments by the Owner to the Agency of the principal
11 amount of the Agency Section 108 loan funds shall be due and payable
12 to the Agency by the Owner in the amounts and at the times provided
13 as follows:
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Date of Principal
Installment
Installment of
Principal Due
Date of Principal
Installment
Installment of
Principal Due
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June 1, 2001 $ -0- June 1, 2011 $100,000.00
June 1, 2002 -0- June 1, 2012 100,000.00
June 1, 2003 100,000.00 June 1, 2013 100,000.00
June 1, 2004 100,000.00 June 1, 2014 100,000.00
June 1, 2005 100,000.00 June 1, 2015 100,000.00
June 1, 2006 100,000.00 June 1, 2016 100,000.00
June 1, 2007 100,000.00 June 1, 2017 100,000.00
June 1, 2008 100,000.00 June 1, 2018 100,000.00
June 1, 2009 100,000.00 June 1, 2019 100,000.00
June 1, 2010 100,000.00 June 1, 2020 140,000.00
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1 Payments of accrued interest on the outstanding principal
2 balance of the sums disbursed by the Agency to the Borrower under the
3 Agency Section 108 Loan Agreement shall be paid to the Agency at the
4 rates of interest per annum and at the times and in the amounts
5 provided in the "Borrower Section 108 Promissory Note" as attached to
6 the Agency Section 108 Loan Agreement.
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Section 5.
The Chair of the Commission and the Agency
8 Secretary are hereby authorized and directed to execute on behalf of
9 the Agency the appropriate form(s) of documents necessary to
10 accomplish an assignment to HUD of the "Agency Security Interest" and
11 other collateral obtained by the Agency from the Owner under the
12 Agency Section 108 Loan Agreement, including without limitation the
13 "Borrower Guaranties" and the "Borrower Letter of Credit" as these
14 terms are defined in the Agency Section 108 Loan Agreement, as
15 necessary or appropriate to conform to the requirements of the HUD
16 Section 108 Loan Agreement and the satisfaction of the conditions to
Escrow under Section 7.0 of the Agency Section 108 Loan
17 close of the
18 Agreement.
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1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO APPROVING THE TERMS OF AN OWNER PARTICIPATION AGREEMENT
2 (303 THIRD STREET PROJECT) BY AND BETWEEN 303, L.L.C., AND THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND APPROVING THE
3 TERMS OF A 2000 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SECTION 108
PROJECT DEVELOPMENT LOAN AGREEMENT (303 THIRD STREET PROJECT) BY AND
4 BETWEEN THE AGENCY AND 303, L. L. C., AND AUTHORIZING CERTAIN OTHER
ACTIONS RELATING TO THE DISBURSEMENT OF THE PROCEEDS OF UP TO
5 $344,000.00 IN EDI GRANT/LOAN PROCEEDS AND UP TO $1,840,000.000 IN
SECTION 108 LOAN PROCEEDS BY THE AGENCY TO 303, L.L.C. (303 THIRD
6 STREET PROJECT)
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Section 6.
This Resolution shall take effect upon the
8 date of its adoption.
9 I HEREBY CERTIFY that the foregoing Resolution was duly adopted
10 by the Community Development Commission of the City of San Bernardino
11 at a Joint Regular
meeting thereof, held on the
7th
day
12 of
August , 2000, by the following vote, to wit:
13 Commission AYES NAYS ABSTAIN ABSENT
ESTRADA X
14 LIEN X
MCGINNIS X
15 SCHNETZ X
SUAREZ ,/7 X
16 ANDERSON X , /'
McCAMMACK X
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The foregoing Resolution is hereby ~pproved this /O~ day
20 of August , 2000.
lles, Chairperson
Commu it Development Commission
of t e C'ty of San Bernardino
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By:
Agency, Spec a Counsel
~~G.~\LLt
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1 STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO ss
2 CITY OF SAN BERNARDINO
3 I, Secretary of the Community
Development Commission of the City of San Bernardino, DO HEREBY
4 CERTIFY that the foregoing and attached copy of Community Development
Commission of the City of San Bernardino Resolution No. is
5 a full, true and correct copy of that now on file in this office.
6 IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official seal of the Community Development Commission of the City
7 of San Bernardino this day of , 2000.
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Secretary of the
Community Development Commission
of the City of San Bernardino
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