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HomeMy WebLinkAbout02-RDA Minutes REDEVELOPMENT COMMITTEE M I NUT E S REGULAR MEETING February 22, 1990 - 4:00 P.M. The meet i ng of the Redevelopment Commi ttee was called to order by Chairwoman Esther Estrada at 4:12 p.m., in the Redevelopment Agency Conference Room, Fourth Floor, Ci ty Ha 11, 300 North "0" Street, San Bernardino. ROLL CALL Roll call was taken with the following being present: Chairwoman Esther Estrada; Committee Member Jess Flores; Committee Member Michael Maudsley. STAFF PRESENT Mayor W. R. "Bob" Holcomb, Robert J. Temple, Acting Executive Director, Redevelopment Agency; Dennis A. Barlow, Senior Assistant City Attorney; Ph il Arvi zo, Executive Ass i stant to the Council; John Hoeger, Manager of the Development Division, Redevelopment Agency; Nancy Davison, Project Manager, Redevelopment Agency; Ezell James, Project Manager, Redevelopment Agency; David Oden, David Oden Productions; A. Jack Kelly, East Valley Marketing Consortium; Jerry Butler, Mayor's Office; Lorraine Velarde, Executive Assistant to the Mayor; Larry Reed, Director of Building & Planning Services, Jill Hammer, Recording Secretary. 1. East Valley Marketing Consortium Mr. Temple requested that the Committee review the letter attached in the agenda package dated February 10, 1990, from A. Jack Kelly to Mr. Robert J. Temple Re Formation of the East Valley Marketing Consortium. Mr. Temple summarized the requests of the correspondence: (1) A $10,000 initial membership fee; (2) Use of the EDC computer; and (3) A designated City representative to participate in a Host Relations Committee. Mr. Temple stated that the item being addressed this date requests only approval for budget authority from general administrative funds for the $10,000 membership fee. Mr. Kelly stated that the East Valley Marketing Consortium is concentrat i ng its efforts on creating a computeri zed resource center to cooperatively market with the other cities in the East Valley the available areas in the eastern Inland Empire. New industrial development will be the targeted focus. 1\ I 7 Committee Member Maudsley asked if the East Valley Marketing Consortium will be a profit or non-profit corporation. Mr. Kelly responded that the company will be a non-profit, tax exempt corporation. Committee Member Maudsley requested that a legal opinion be sought from the City Attorney as to the tax status of the proposed corporation. Much discussion ensued in relation to the types of data that the East Valley Marketing Consortium is desirous of computerizing. Committee Member Maudsley stated that it is his understanding that much of the data noted in the presentation is already available in various data bases, e.g., Data Quick. Committee Member Maudsley stated that he would not be supportive of a duplication of effort in the area of data compilation. Committee Member Maudsley requested to see a detailed cost breakdown of the costs involved with establishing the proposed corporation. Mayor Holcomb stated that he viewed the concept of the East Valley Marketing Consortium as a method to achieve cooperation in development by all the East Valley cities. That type of concept avoids developers negotiating cities against each other. Mayor Holcomb suggested that the Mayor's staff meet with representatives of the East Valley Marketing Consort i um and restructure the emphas i s of the market i ng concept toward cooperation among the cities to be involved. Mayor's staff will also review with the representatives of the East Valley Marketing Consortium currently available data bases in the area of land development. Mr. Hoeger concluded the discussion by stating that, while it is true that the City/RDA staff possess tremendous ability to access information concerning land within the City, in recent years specific facts about an area have become very important to Fortune 500 companies for the purpose of ascertaining qual ity of 1 He for the employees who will locate to the prescribed location. Two examples of the types of information being sought by Fortune 500 companies would be the K-12 dropout rate in an area and labor force statistics which would show where San Bernardino competes best and worst with surrounding areas. Mr. Hoeger continued expressing that the East Valley Marketing Consortium could provide valuable, complementary information to the data that already can be accessed by City staff. The East Valley Marketing Consortium could also handle specific inquiries about a City's structure and approval processes. RECOMMENDAT ION: The Committee recommended that the item be continued to the next RDA Committee meeting of March 8, 1990, pending further meeting of the Mayor's staff with representatives of the East Valley Marketing Consortium. 2 February 22, 1990 2. Employment Linkage Contracts There was some discussion on the monies avail able and the overall effectiveness of the Employment Linkage Program. Mr. Hoeger summarized the discussion by stating that the incentive in some cases is not significant enough to make a difference in the final negotiations; however, the existence of the program helps to facilitate early negotiations with valuable company prospects. Mayor Holcomb asked how the project is funded. Mr. Hoeger responded that the funding is accompl ished with specific project area funds when the proposed location for a new business is located within a redevelopment project area. If the business is to be located outside a redevelopment project area, Community Development Block Grant (CDBG) funds are used to fund the program. Ms. Velarde concluded the discussion by stating that the Program was created to be an i ncent i ve to a prospect i ve company to hire and retain disadvantaged employees from the local labor force. RECOMMENDATION The Committee recommended that the item be forwarded to the Commission meeting of March 5, 1990 for adoption. 3. Shandin Hills Golf Course - Seventh Lease Amendment Mr. Temple explained that in essence the Agency is requesting that the mandatory deposit requirement be removed with the option of reinstating that requirement, if appropriate, at some time in the future. Committee Member Flores asked why this action is necessary. Mr. James responded that it is the intent of the company to better util ize the money elsewhere in the form of improvements to the golf course. Mayor Holcomb expressed support for the amendment on the basis that the City owns the land on which the golf course lies as well as the solid business operation of the new leasee. RECOMMENDATI ON The Committee recommended that the item be forwarded to the Commission meeting of March 5, 1990 for approval. 4. H.A.B. Development Corporation Loan Mr. Temple distributed the original RDA Committee item submitted on this issue with accompanying lupport documentation as requested. 3 February 22, 1990 3550K Mr. Temple stated that the question was asked at the previous meeting as to the value of the land in reference to the amount of the loan being requested. An estimated conservative value of the land is $3 mi 11 ion. Mayor Holcomb expressed support for the project explaining that this project will develop previously fallow land and increase the tax base. Mayor Holcomb stated that the Agency has enough security to cover the loan if that were to become a necessity. Chairwoman Estrada asked what will happen if the development is not completed within five years. Mr. Temple responded that a development agreement would be executed with any buyer of a portion of the property. The agreement would include language that if the development was not built within 5 years the Agency would be afforded the option to rescind the sale. Committee Member Flores asked if a limitation has been designated to cover the construction costs if the loan amount is insufficent to pay the construction costs. Mr. Temple stated that after discussion with representat ives from the H .A. B. Development Corporati on they feel the construction estimate of $1.5 is accurate. RECOMMENDATION The Committee recommended that the item be forwarded to the Commission meeting scheduled for March 5, 1990. Adjournment There being no further business or closed session items, the meeting of February 22, 1990 was adjourned at 5:33 p.m. APPROVED BY: ~~ Redevelopment Committee 4 February 22, 1990 3550K