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RIDEVELCPrvENf CX'M;\I TIEE
MINUTES
REillI..AR IvEETIN::i
April 5, 1990 - 4:15 p.m.
The rreeting of the Redevelopment ~ittee was called to order by
~ittee MenDer Jess Flores at 4:15 p.m., in the Redevelopment Agency
Conference Roan, Fourth Floor, City Hall, 300 North "D" Street, San Bernardino.
Ra.L CALL
Roll call was taken with the following rrerrbers being present: ~ittee
MenDer Jess Flores and ~ittee MenDer Michaell'vtludsley. ABSENr: Chairwcrran
Esther Estrada, ,
STAFF PRESENr
Robert J. Temple, Acting Executive Director, RDA; Barbara Lindseth,
Accounting Division Manager, RDA; Gary wagoner, Project l'vtlnager, RDA; Nancy
Davison, Project Manager, RDA; Phil Arvizo, Executive Assistant to the
Council; l'vtlyor W. R. Holcorrb; Lorraine Velarde, Executive Assistant, l'vtlyor's
Office; Larry Reed, Director of Planning & Building Services; Vince Bautista,
Senior Planner, Planning & Building Services; Annie Ramos, Director of Parks &
Recreation; Tan Boggs, Parks & Recreation; James E. Penman, City Attorney;
Dennis A. Barlow, Senior Assistant City Attorney; Henry'Empeno, Deputy City
Attorney; Ken Henderson, Director of COrrrrunity Development; Margie Vance,
Recording Secretary.
OI1-ERS IN ATfEl\OAKE
Cassie MCDuff, The Sun Newspaper; Eugene Wood and John Husing of
Wood-Husing Associates.
Mr. Robert J. Temple requested that Item 4 be taken out of sequence.
4. Unreinforced l'vtlsonry Funding
Mr. Robert J. Temple, Acting Executive Director, said that in a rrerrorandum
dated March 21, 1990, Mr. Larry Reed, Director of Planning & Building Services
reported that funding fran the Agency was needed for the implementation of the
Unreinforced Masonry Building Mitigation progran affecting some of the
Redevelopment Project.
Mr. Reed, gave a brief summary of his rrerrorandum dated March 21, 1990. He
said that his staff was under the direction of State statue to do a survey
identifying all of the Unreinforced Masonry Buildings (~) throughout the
City. He said that as a result of the survey 317 LRM buildings were
identified. He said that staff has estimated that 80% of the identified ~'s
are in existing Redevelopment Project Areas.
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April 5, 1990
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G-I'\I~ ESTRAJ)l\ ARRIVED AT 4:20 p.m.
He said that without the Agency's assistance in a form of reimbursement,
the Department's ability to respond to field inspection requests/problerrs and
quality of technical building inspections will be reduced because of the
support and training done by a Senior Inspector must be curtailed or
eliminated. He said that the lRMmitigation progran is scheduled to take
three (3) years to complete. He outlined the proposed reimbursement of
Building Inspection Services as follows:
EXPENSE STARJlP 1ST YEAR 2N) YEAR
Senior Building Inspector $48,048 $50,450 $52,973
Vehicle $40,000
!-IT -Radio $ 2,000
Typist Clerk III $25,568 $26,846 $28,189
Desks, furniture, equip/supp $ 8,000 $ 2,000 $ 2,000
TOTAL $93,616 $79,296 $83,162
A lengthy discussion ensued regarding the need to authorize~. Reed to
begin the creation of a list for the position of Senior Building Inspector.
RE.CD.M:N)A,TIO<:
The CXrnnittee recommended that a detailed report outlining the cost of
implementation per Redevelopment Project Area and a list of all historical
sites be prepared and presented at the next Redevelopment CXrnnittee
meeting of April 19, 1990. The COnnjttee also directed staff to begin the
necessary steps for the creation of a list for the position of Senior
Building Inspector.
Mayor Holcomb asked to hear Item 9 next.
9. East Valley Marketing Consortium
Mayor Holcomb said that the East Valley Marketing Consortium (EVM::) will
be a nonprofit corporation with a board of directors composed of one
representative fram each participating East Valley City and private sector
representatives who support the consortium. He said that the initial
investment arrount will be $10,000 and that after the initial investment the
consortium will become self-sufficient and develop operating funds fram
closing fees resulting fram successful closure of projects through the
resource center.
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He said that the ~ will provide inventories of sites, accurate
quality-of-life, statistics, and area demographics. He said that the
project's specifications can be accessed fram the databank located in the
offices of Chicago Title in a matter of rrilnutes in order to respond to
inquiries. He stated that the ~ represents a state-of-the-art concept in
economic development, targeted marketing, and information management and that
it saves rrerrbers both time and money in attracting prospects and meeting their
needs.
~ittee ~er Maudsley expressed some concerns regarding the Agency
providing private real estate property information to the ~ for marketing
purposes. He also questioned Chicago Title's computerized resource center.
A lengthy discussion ensued regarding the need for this investment.
RE.O:::M\.1:N)' TI CN:
The ~ittee recommended that ~. Jack Kelly of ~ provide a detailed
report regarding his request at the next COmrrUssion Meeting of
April 16, 1990, and that the item be forwarded to the ~ission without a
recommendat ion.
I. Loan to Sim::howi tz/lbpkins Corporation
Mr. James F. Penman, City Attorney gave a brief report regarding the
SHnchowitz Corporation. ~. Penman stated that according to an investigation
conducted by his office, it was detennined that Mr. Sirrchowitz has put up an
industrial building on South Waterman Avenue without applying for a building
pennit. Mr. Penman said that the project was never submitted for review by
city planners, as required, and violated state environrrental review law by
failing to undergo the required reviews. He said that Mr. Hopkins, the
construction contractor was cited for building without a pennit and charged
with violations for every day that work continued after the February 23, 1990,
stop-work order was issued. ~. Penman informed the ~ittee that he will
seek a court injunction Mbnday, April 9, 1990, to prevent further work on the
project. He also said that on Monday, April 2, 1990, the Sirrchowitz
Corporation applied for planning review and noted that the building is nearly
completed.
~. Robert J. Temple, stated that the Sirrchowitz Corporation had withdrawn
their request of a $300,000 loan.
A lengthy discussion ensued.
RID:.MvI:'N)I\ TI CN:
The ~ittee recommended that an Item be placed in the City's Agenda for
the Council Meeting of April 9, 1990, to be discussed in closed session.
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April 5, 1990
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2. ~angewood Estates
MW. Ken Henderson, COmmunity Development Director, stated that on
October 2, 1989, the Mayor and COmmon Council selected Dukes - Dukes and
Associates to build out the remaining seventy-six (76) lots of ~angewood
Estates. He said that at a subsequent rreeting, the COmmunity Development
Cbnmnission appropriated $1.6 rrUllion to payoff the assessrrent district bonds,
reirrburse the City General Fund for advances made to keep the bondholders
whole and protect the City's credit rating and to reirrburse the COmmunity
Development Departrrent for its acquisition and weed abatement costs. He said
that at the Mayor's request staff rret with Gene Wood framWood-HUsing
Associates to discuss various alternatives, and at a subsequent rreeting with
John Dukes, developed the following deal points: .
I. Agency to sell land to Dukes - Dukes for $1.9 rrtillion ($25,000 per
lot), with $300,000 profit to be split between Agency and COmmunity
DevelopTent Departrrent.
2. The project is to be constructed in three (3) phases (27, 38, and 49
units) with Phase I to be built in two groups, thirteen (13) and
fourteen (14) units, respectively. The tirrUng of Phases II and III
will be based upon experiences derived fram Phase I.
3. Agency to make construction loan of $1,156,115 for first 13 harres at
1.5 points over prirre (floating), with Dukes - Dukes to pay 1.5
points for loan fee and disburserrent administration. The cost of the
three models, $275,000, will be arrortized over the entire 114 unit
project, or $2,412 per harre.
4. At close of escrow for each harre in Phase lA, Dukes - Dukes will pay
$88,112 to Agency.
5. Agency to make second construction loan for the remaining 14 harres in
Phase lB. Dukes - Dukes to pay 1.5 points over prirre (floating),
with 1.5 points for loan fee and disburserrent administration to be
paid up front.
6. At close of escrow, Dukes - Dukes will pay to Agency $86,925, per
horre or $1,216,950.
7. Phases II and III will be structured sirrUlar to Phase I, taking into
account experiences of Phase I.
8. Under loan disburserrents, there will be a ten percent (10%) retention
in lieu of a completion bond throughout Phases I, II and III.
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Apri I 5, 1990
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He further explained that the above deal points secure the Agency's
interest with a rrortgage against each lot, lirrrlts the Agency's and Dukes -
Dukes' financial exposure, provides the developer a normal rate of return and
adheres to commercial nOnT5 for risk, rate of return and security.
Mr. Henderson infonned the Ckrmnittee that Agency Counsel will prepare the
necessary agreement and it will be presented at the next COmrrllssion rreeting of
April 16, 1990.
A lengthy discussion ensued regarding the deal points.
RECO.M:N)A.TICN:
The COmrrllttee recommended that the item be forwarded to the Ckrmnission
rreeting of April 9, 1990.
6. Wbod-HUsing - First Financial Services Status Report
Mr. Robert J. Temple, Executive Director, stated that in a letter-dated
April 3, 1990, Wood-HUsing Associates reported on the status of four projects
which they are currently engaged in, on behalf of the Agency. He said that
the letter outlines their charges, the amount of tirre which they have spent to
date and rough estimates of the tirre required to finish the items. Mr. Temple
listed the four projects as follows:
*
*
*
*
Investrrent Policy
~ Loan Package
Dukes - Dukes Low/Mod Develop-rent
Wests ide Shopping center
A lengthy discussion ensued regarding when the Investrrent Policy report
will be ready for the Ckrmnittee's review. Mr. John HUsing infonned the
Ckrmnittee that the Investrrent Policy Report will be made available for their
review by the end of the rronth and proceeded to give a brief summary of what
their recommendations will be.
RECO.M:N)A. TICN:
The Ckrmnittee recommended that the item be forwarded to the COmrrllssion
rreeting of April 9, 1990.
7. Wood-HUsing - Second Financial Services Contract
Mr. Robert J. Temple, stated that a second proposal has been received fran
the firm of Wood-HUsing and Associates to assist the Agency with financial
services. He said that this second agreement is for Wood-HUsing and
Associates to rreet with representatives fram the Agency, COmmunity Develop-rent
and Dukes-Dukes and Associates to attempt to design a develop-rent and
financing agreement concerning the development of 114 homes (~angewood
Estates) and to ensure that the 20% set aside funds are used to maxinlSn
efficiency. He said that they will also assist the Agency and the developer
of the wests ide Shopping center to secure and anchor a tenant.
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Ap r il 5, 1990
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RB:JJvM:N)'\ TICN:
The Cbnntittee recommended that the item be forwarded to the Cbnntission
rreeting of April 9, 1990.
a:NrINJID FROA M\IUi 22, 1990
5. Drop- In Center JlnEnctnent
~. Robert J. Temple stated that the Wests ide Drop-in Center (WSDIC) has
approached staff to expand their facilities in the Public Enterprise Center
(PEe) located at 1505 West Highland. He said that on March 22, 1990, the
CCnTnittee directed staff to invite a representative of the WSDIC to better
explain the need for their request to expand. He said that Annie Ramos,
Director of Parks and Recreation was present to answer tre Cbnntittee's
ques t ions.
Chairwarran Estrada expressed her concerns regarding WSDIC's staff report,
wherein it gives no explanation of any new services it may provide to rrerit
for the need to expand their existing space in the PEe building.
Ms. Annie Ramos, Director of Parks & Recreation, said that she wanted to
clarify that the request to expand is not associated with the WSDIC, but
rather with the Senior COmpanion Program and the Retired Senior Volunteer
Program which are presently housed at the Senior Center on 5th Street. She
said that that the WSDICwas not expanding and explained that the Senior
COmpanion Program and the Retired Senior Volunteer have outgrown their space
based on the expansion of the programs and that the PEe building would provide
bigger offices and the needed space.
Mayor Holcorrb stated that there has been discussions regarding the selling
of the PEe building and that perhaps it was not wise at this tirre for the
Parks and Recreation Senior Center Programs to relocate to the PEe Building.
A lengthy discussion ensued regarding other locations that Parks &
Recreation Senior Center may consider.
RB:JJvM:N)'\TICN:
The Item was tabled.
3. Neighborhood Spirit
~. Ken Henderson, Director of Community Development, said that after
careful review of the original proposed Neighborhood Spirit Program previously
presented to the CCnTnittee, it was determined that the program needed to be
restructured due to new legislation requirerrents affecting the use of 20%
set-aside funds, in particular AB-2080 and AB-1735. He said that it was
necessary to eliminate some of the more burdensome and onerous provisions of
the previously proposed program.
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April 5, 1990
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He said that the Mayor's Executive Assistant, the Redevelopment Executive
Director and hirrself met to structure a more streamlined program which
confonT5 with the intent of the law and removes the program components that
are duplicated by programs adninistered by other city departments.
He further stated that the revised Neighborhood Spirit Program will
consist of the following components:
*
*
*
*
*
*
Paint Program
Installation of Street Trees
Sidewalk Fill-In
Installation of Patterned Concrete
Where appropriate - driveways and driveway approaches
Mending fences
He said that in order to stay within the confines of law and develop a
program that meets our local needs, staff is recommending that pilot projects
be initiated in two focus areas and listed them as follows:
A. Kendall between Little Mountain Drive and Lakewood
B. 2000 block of Herrington North to Highland Avenue.
He stated that staff will develop a budget that will include staffing,
overhead, rrarketing, printing and legal costs and staff will come back to the
COnnUttee with a complete budget cost for the implementation of the pilot
project. He noted that the program emphasis had shifted somewhat fran
substantial rehabilitation to beautification.
A lengthy discussion ensued regarding the need for this program to be
implemented throughout the City.
REa::tvtvEN}\ T I CN:
The COnnUttee recommended that the item be forwarded to the COnnUssion
meeting of April 9, 1990.
II. Major Corridor Street Tree Program
Mr. Vince Bautista, Principal Planner, fran the Building and Planning
Services Department, stated that as a result of a February 1990 meeting with
the Mayor, Planning and the Redevelopment Agency, Urban Design Studio
subrrUtted a proposal to conduct a study on ten (10) of the City's rrajor
corridors as to the type of permitted street trees that would enhance the
Ci ty' s irrage.
He said that Urban Design Studio has detailed a very specific Work Program
to coincide with the goals of the General Plan and said that the total of
$23,900.00 is a fixed fee amount for an interim study. He said that staff is
proposing that Urban Design Studio conduct a study of the City's rrajor
vehicular corridor.
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Ap r i I 5, 1990
IQLLD
A lengthy discussion ensued regarding whether or not the Parks and
Recreation Department can conduct an in-house study of the City's major
corridor street trees and provide a detailed outline as to their
recommendations regarding street trees.
RB:x:MvI:N}\TIO\I:
The Cbrrrrllttee recommended that an item be placed in the City's Agenda of
April 16, 1990, to allow the Parks and Recreation Department to prepare a
report outlining the steps that are presently being taken in the
preparation and implementation of the City's master trees plan.
12. 40th Street - COrridor Study
MW. Vince Bautista said that on Decerrber 8, 1990 Urban Design Studio
subnUtted a proposal for a specific plan for 40th Street. between Kendall Drive
and Twin Creek Wash and that the estimated cost to perform the study would
range fran $67,100 to $125,000. He stated that although the proposed area is
not in a Redevelopment Project Area, the improvement of 40th Street would
substantially benefit the area. He also said that the proposal calls for a
specific plan but that Planning staff recommends that a specific plan not be
done at this tirre as an environrrental impact report would be required and
would add substantially to the cost. He said that the agency's purchasing
procedures require staff to obtain three formal bids for purchases in the
amount requested.
A lengthy discussion ensued regarding the need to obtain three formal bids
to do the 40th Street corridor study.
RE<J:MvEN)l\TI CN:
The CCnTnittee recommended that Request For Proposal (RFP) be issued with a
clearly defined scope of work for the corridor study on 40th Street
between Kendall and Waterman and for one block North and South of 40th
Street and Sierra Way.
aNfINJID FROA M\R:H 22, 1990
8. Agreement for Audit Services
~. Barbara Lindseth, Accounting Manager, stated that on March 22, 1990,
staff requested approval of a three (3) year contract with KPMG Peat Marwick
to examine the Agency's financial statements. She said that the Cbrrrrllttee
recommended that staff contact KPMG Peat Marwick to ask them to lower their
proposed fee. She said that staff contacted KPMG Peat Marwick and after
rreeting with them they agreed to drop their fees fran $36,000 to $33,000 for
the first year; $37,200 to $33,000 for the second year; and $38,900 to $35,400
for the third year.
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April 5, 1990
1966R
REJ:XJvM'.N)'\ T ICN:
The CCnlnittee recommended the item be forwarded to the CCnlnission rreeting
of April 9, 1990.
I O. DeGroo t J:D<I.
~. Nancy Davison, Project Manager, said that on July 28, 1989 the
CCnlnission declared the Disposition and Developrent Agreerrent (COA) between
Thedford & Jackqueline DeGroot and the Agency in default and directed staff to
pursue all available rerredies. She said that ~. Pat Hopkins, President of
the Sunset Group, notified staff that the Sunset Group has entered into a
partnership with the DeGroots and that the property could be sold to Guth
Development (dba RiverviewDevelopment Partners, L.P.) who would develop the
site. She stated that staff had rret with the principals'of Guth Developrent,
who presented plans to develop the site and eventually agreed to enter into a
Restated and Arrended Disposition and Developrent Agreerrent. She further
explained that the Restated Agreerrent has basically the sarre tenns of the
original COA. She said that the Restated Agreerrent also retires the agreerrent
between the DeGroot's and the Agency, therefore staff is requesting approval.
Mr. Dennis A. Barlow, Agency Counsel stated that the DeGroot's will be
paying all pending in-lieu fees prior to the close of escrow.
REJ:XJvM'.N)'\ T I CN:
The CCnlnittee recommended the item be forwarded to the CCnlnission rreeting
of April 9, 1990.
13. Dem>lition - "G" Street Site
~. Robert J. Temple stated that on March 5, 1990, the Agency issued an
invitation to bid for demolition services at 181 South "G" Street, in order to
elirrUnate a nurrber of health and safety problems, which have created
substantial liability risks for the Agency. He said that a total of three
bids were received prior to the filing deadline of 10:00 a.m., April 2, 1990.
He said that based upon the three bids received, staff is recommending that
the Agency accept the lowest bid of $~1,600 framCharlie Ray Gann. He said
that staff conducted a background check and found the firm to be qualified and
has perforrred sirrUlar demolition work in a satisfactory manner.
REJ:XJvM'.N)'\ TI CN:
The CCnlni ttee recommended the item be forwarded to the CCnlni ss ion rreet ing
of April 16, 1990.
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April 5, 1990
Iq/;/;R
a.aiED SESSI<N5
The Redevelopment COrrrrUttee recessed to closed session at 7:00 p.m.
Pursuant to Government Code Section 54957, the Redevelopment Agency of the
City of San Bernardino convened in closed session to consider personnel
rratters.
The Redevelopment ~ittee reconvened fram closed session at 7:30 p.m.
Adjournrent
There being no further business, the rreeting of April 5, 1990, was
adjourned at 7:30 p.m.
APPRO/ED BY:
4~~'
Esther Estrada, Chairwoman
Redevelo,rrent ~i ttee
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April 5, 1990
In,.,T"\