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HomeMy WebLinkAboutRS1-RDA Item 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. 1 February 8, 1990 1966 R 1<S- ~ 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. 2 February 8. 1990 1966R 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: ~~ st er strada. halrman Redevelopment Committee .>. 3 February 8, 1990 1966 R