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REDEVELOPMENT COMMITTEE
M I NUT E S
REGULAR MEETI NG
February 8, 1990 - 4:17 p.m.
The meeting of the Redevelopment Committee was called to order by Chairman
Esther Estrada at 4:17 p.m.. in the Redevelopment Agency Conference Room.
Fourth Floor, City Hall, 300 North "0" Street.
San Bernardino.
ROLL CALL
Roll call was taken with the following members being, present: Committee
Member Esther Estrada. Committee Member Jess Flores and Committee Member
Michael Maudsley.
STAFF PRESENT
Robert J. Temple. Acting Executive Director. Redevelopment Agency; John
Hoeger, Manager of the Development Division, Redevelopment Agency; Barbara
Lindseth, Manager of the Accounting Division, Redevelopment Agency; Gary
Wagoner, Project Manager. Redevelopment Agency; Dennis A. Barlow. Senior
Assistant City Attorney; Phil Arvizo. Executive Assistant to the Council;
Lorraine Velarde. Executive Assistant. Mayor's Office; Kay Schurkens, Senior
Planner. City of San Bernardino Planning Department; Margie Vance. Recording
Secretary.
IN ATTENDANCE
Cassie McDuff. Reporter. The Sun
1. Central City Promenade - lOB
In a staff report dated February 2, 1990. Mr. Robert J. Temple. Executive
Director. reported that on November 30. 1989 the Commission approved Amendment
Number One to the Central City Promenade Loan Agreement and Supplement Number
One to the Indenture extending the December 1, 1989 date to February 1. 1990.
He said that Central City Promenade's request does not have a direct impact on
the City and that Chase Manhattan Bank, the sole purchaser of the bonds, has
exercised its right to cause a mandatory redemption of the bonds and is
seeking approval of Amendment Number Two to the Loan Agreement and approval of
Supplement Number Two to the Indenture to extend the Loan Agreement to June 1.
1990.
RECOMMENDATION:
The Committee recommended that the item be forwarded to the Commission
meeting of February 19. 1990.
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2. H.A.B. Development Loan
Mr. Robert J. Temple, reminded the Committee Members that Mayor Holcomb
had briefly discussed this particular item with the full Commission at the
retreat held on January 31, 1990. in Beaumont, California. Mr. Temple said
that discussion was held regarding H.A.B. Development.
He stated that H.A.B. Development owns 44 acres located south of
Interstate 215. between the Cable Creek and Devils Canyon flood control
channels and that they would like to develop the 44 acres. but will need to
provide access across the flood control channels by means of two bridges and
construction of a road across the parcel and that H.A.B. Development has the
necessary rights-of-way from the County Flood control and has engineered the
road and bridge to a point where they appear to have a reliable estimate of
cost which is $1.5 million.
He said that H.A.B. Development has requested a loan in the amount of
$1.5 million at an interest rate of 9%. no points. the principal payable no
later than five years from the completion of the improvements with interest
payable quarterly. He explained that the Agency would receive a trust deed
as collateral for the loan and would agree to release portion of the
property on the basis of 150% proportionate payments.
Committee Member Flores asked if the Agency was intending to use $1.5
million from bond proceeds.
Mr. Temple responded that. that has been one suggestion. but that there
are other options. He proceeded to explain that one approach will be to use
Tax Increments from the affected project areas since State College and
Northwest Project Area will benefit from these bridges and off-site
improvements. But. he further explained that according to the Agency's most
recent Cash Flow Statement, there is no available Tax Increment in either of
these project areas to make this possible. He said that another approach
will be to identify another project area that has excess Tax Increment and
borrow the money through the Joint Powers Financing Authority.
Agency Counsel. Dennis A. Barlow. wanted to clarify that H.A.B.
Development will not be the actual developers for the proposed construction.
Mr. Temple stated that the reason for having the item on today's Agenda
was to request approval in concept and to direct staff to prepare the
required Development Agreement.
A lengthy discussion ensued regarding the investment of $1.5 million on
an unsecured loan. Staff and Committee members discussed in great detail
the pros and cons of the proposed construction of the two bridges.
RECOMMENDATION:
The Committee recommended that the item be continued to the first
Redevelopment Committee Meeting of March, 1990.
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3. Appointing Craig Graves as Acting Assistant Secretary of the Agency,
designating check signers and cosigners for Redevelopment Agency checks.
vouchers and savings account withdrawals, and appointing authorized
signatories for Agency safety deposit box.
Mr. Robert J. Temple. stated that on November 6, 1989. Resolution No.
5215 was adopted designating Chairman W. R. Holcomb and Commission Member
Estrada as check signers for the Redevelopment Agency check accounts with
Robert J. Temple. Acting Secretary of the Agency. and Arlene S. Berman.
Assistant Secretary. as cosigners. He said that staff is asking for
authorization to approve a resolution that will rescind Resolution No. 5215
and designate W. R. Holcomb, Chairman and Commission Member Esther Estrada
as check signers. and Robert J. Temple, Acting Executive Director and Craig
A. Graves. as Acting Assistant Secretary as cosigners and to authorize a
resolution that will rescind Resolution No. 5216 and designate Ms. Penny C.
Vega as signatory to secure access to the Agency's safety deposit box.
RECOMMENDATION:
The Committee recommended that the item be forwarded to the Commission
meeting of February 19. 1990.
CLOSED SESSIONS
Pursuant to Government Code Section 54956.9(a) and Government Code
Section 54956.9(b)(1), The Redevelopment Committee of the Redevelopment
Agency of the City of San Bernardino convened in closed session to discuss
pending litigation and significant exposure to litigation at 5:15 p.m.
The Committee reconvened from the Closed Session at 6:30 p.m.
Adjournment
There being no further business. the meeting of February 8. 1990, was
adjourned at 6:35 p.m.
APPROVED BY:
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st er strada. halrman
Redevelopment Committee
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