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HomeMy WebLinkAboutR02-RDA Minutes o o o o o MINUTES REDBVELOPHENT COIIIIITTBB REGULAR HEBTING JULY 19, 1990 - 4100 P.M. The meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:00 p.m., in the Redevelopment Agency Conference Room, Fourth Floor, City Hall, 300 North "0" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following Committee members being present: Chairwoman Esther Estrada, Jess Flores and Michael Maudsley. STAFF PRESENT John Hoeger, Development Manager, Redevelopment Agency; John Cole, Administrative Assistant to the Council; Ezell James, Sr. Project Manager, Redevelopment Agency; Gary Wagoner, Sr. Project Manager, Redevelopment Agency; Dennis Barlow, Sr. Assistant City Attorney, Agency Counsel; Wayne Overstreet, Director of Facilities Management; Sandra Medina, Deputy City Clerk/Recording Secretary. 1. H. A. B. DBVELOPHENT LOAN AGRBEllENT A staff report was presented proposing a substitute agreement with H.A.B. Land Development Company which would provide a $2,130,000 loan for roadway and bridge construction at an interest rate of 10 1/4%, all due and payable seven years from the completion of the improvements. A discussion ensued regarding the increase from $1,500,000 to $2,130,000, and its relationship to the Agency's improvement in security. Lorraine Velarde arrived at 4110 p.m. The discussion on loan' amounts and changes in securi ty continued. Mayor Holcomb arrived at 4:15 p.m. A discussion ensued regarding the total value of the property and the method to be used to disburse the loan proceeds. 1 7/19/90 o o o o o RRrnMMlmTlATION The Committee recommended that the item be forwarded to the Commission upon execution by the developer, and that staff present information on how the disbursement of funds will be controlled. 2. SCHORGIN DEFAULT - Best Harshall Plaza A staff report was presented stating that Schurgin Development Corporation is in default under a note secured by deed of trust and loan agreement, and has requested an extension on payment of the loan. REcn.vRllJDATION The Committee concurred with the staff's plan to refer the matter to Agency Counsel. 3. AGREEHENT FOR PROFESSIONAL SERVICES - Robert L. Traister Staff informed the Committee that the Agency had entered into a 90-day contract for consultant services to be provided by Mr. Robert L. Traister, at a cost not to exceed $14,400.00. Mr. Traister will use his contacts in the private sector to promote attraction of commercial and industrial businesses for business retention to market the Redevelopment Agency, and special projects assigned. RBrn_RRDATION The Committee requested that an outline be prepared listing the tasks Mr. Traister is expected to complete within the 90-day work period, and that it be presented at the next Redevelopment Committee meeting. 5. FIVE LEVEL PARKING STRUCTURE - Painting & Design A staff report presented a request by the City for payments totalling $145,586.86 for painting, striping and signage of the Five-Level Parking Structure, which is a cost overrun of 45% more than the previous $100,000 authorization. Wayne Overstreet, Director of Facilities Management, explained that the original authorization was $60,000; however, more paint was required than originally estimated and the anticipated California Conservation Corps labor was not available. This increased the estimate to $100,000 which was approved. 2 7/19/90 o o c o o Mr. OVerstreet pointed $145,587, which was less $192,600. out that the total project cost was than the lowest bid received of Cassie McDuff of the Sun Newspaper, arrived at 5:00 p.m. A discussion ensued regarding spending $45,587 more than authorized. Mr. OVerstreet stated that he informed Mr. Hardgrave in a memorandum that the increased amount of $100,000 would not cover the total project cost, but he never received a response from Mr. Hardgrave. RECOMMENDATION The Committee recommended that this item be forwarded to the Commission meeting of August 6, 1990, and requested that Mr. Roger Hardgrave submit in writing an explanation for the project cost overruns. 5. SPECIAL IlEETING DATE (VERBAL) John Hoeger stated that a special meeting is expected to be required for the Request for Proposals (RFP) received for property at Second and "0" Streets. The Committee members suggested that the meeting be held at 4:00 p.m., on Tuesday, July 31 or Wednesday, August 1. CLOSED SESSION At 5:15 p.m., the Redevelopment Committee recessed to closed session to consider personnel matters pursuant to Government Code Section 54957. At 5:30 p.m., the Redevelopment Committee reconvened from closed session. ADJOURNMDIT There being no further business, the Redevelopment Committee meeting of July 19, 1990 was adjourned at 5:30 p.m. APPROVED BY: ~ C::.wi'er 'strsda, Cbs.- ----n Redevelopment Committee "1 3 7/19/90 o o c o o REDEVELOPMENT COMMITTEE M I NUT E S SPECIAL MEETING July 31, 1990 - 8:03 a.m. The meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 8:03 a.m., in the Redevelopment Agency Conference Room, Fourth Floor, City Hall, 300 North "0" Street, San 8ernardino. ROLL CALL Roll call was taken with the following members being present: Chairwoman Esther Estrada; Committee Member Jess Flores and Committee Member Michael Maudsley. STAFF PRESENT Robert J. Temple, Acting Executive Director, RDA; John Hoeger, Development Manager, RDA; Gary Wagoner, Project Manager, RDA; Phil Arvizo, Executive Assistant to the Council; Dennis A. Barlow, Senior Assistant City Attorney; Bernard C. Kersey, Director: Administration & Finance, Water Department; Joseph F. Stejskal, Director: Engineering., Construction & Maintenance, Water Department; Kimberly A. King, Recording Secretary, RDA. OTHERS IN ATTENDANCE Ken Steele, Caltrans; Don Gimmerisch, Caltrans; Bill Leonard, Consultant; Kerry Lowe, Counsel for Coussoulis Development Company. 1. Water Company Property, 2nd and "0" Streets. Robert Temple stated that we had issued request for proposals for the property at 2nd and "0" Streets, with a closing date of Friday July 27, 1990 at 4:00 P.M. only receiving one proposal from Coussoulis Development. In talking with Dennis Barlow of the City Attorn~y's office the Redevelopment Agency would like to try to explore the possibility of making a recommendation to the Committee for their consideration of proceeding to put together an Exclusive Right to Negotiate (ERN) with Coussoulis Development. Chairwoman Estrada questioned the Performing Arts facility, asking how firmly are we committed to the proposal. Mr. Temple stated that there had been previous discussion and that there was a possibility of a Phase II of this Development Agreement. Mr. Kerry Lowe stated that Chairwoman Estrada's question was well taken, and certainly probable, based on raising monies. Committee Member Flores questioned Mr. Don Gimmerisch of Caltrans on if they were committed to this project., Mr. Gimmerisch stated that they were very much committed to this facjlity and to downtown San Bernardino, ~:l July 31, 1990 , 3133H o o o o o but at this time they have outgrown their existing facility and have employees scattered allover, which presents a working problem. He stated that their desire for expansion is to consolidate back under one roof. They see doubling in size in the next five to ten years. Committee Member Maudsley questioned where the Water Department would move to. Mr. Bernard Kersey stated they have acquired property on Arrowhead Avenue and Oranges how Road for the new yard facility, and are presently trying to obtain a source of funds. At this time Mr. Temple and Mr. Kersey have been in negotiations for assistance from the Redevelopment Agency. Committee Member Maudsley asked Mr..Temple if the Redevelopment Agency is in a position to do this and provide for the 2nd and "0" Street project. Mr. Temple stated that this is an issue and is under consideration, and they are pursuing this further,with the Mayor. Mr. Kersey stated that the construction crew sites have maxed out. They are not adding any additional crews at the yards, as they have adequate space. The only element at this time was limited parking . Chairwoman Estrada asked if there would be any problem for them to stay at their present location indefinitely. Mr Kersey.stated that they could stay there for five to ten years in the future, the facility is old, but it is also adequate. Chairwoman Estrada stated that the Community is growing so rapidly th.at it impacts the department, and further, to come back five years from now needing to do something about this. it is now more of a timely and economical kind of consideration at this point. Committee. Member Maudsley questioned the expenditures at this time as the Redevelopment Agency has taken on an enormous amount of debt in the past few months. Mr. Temple stated that this is just a proposal, and is asking just to enter into negotiations at this time. Mr. Bill Leonard stated that the objective is to retain Caltrans in San Bernardino along with their employees. Committee Member Flores asked what would the time frame be for the Water Department to be relocated. Mr Kersey stated he was told that they would be fully relocated by August of 1991. Mr.. Dennis Barlow emphasized that before any Redevelopment money could be used that the Committee come back for a Resolution of Mutual Benefit and the Committee would have to approve it at that time. 2 July 31, 1990 3133H o o o o o RECOMMENDATION The Committee recommended that the item be forwarded to the Commission. CLOSED SESSION The Committee convened to closed session to consider personnel matters pursuant to Government Code Section 54957 at 8:40 a.m. Adjournment There being no further business, the meeting of July 31, 1990 was adjourned at 9:42 a.m. . APPROVED BY: ~ Redevelopment Committee 3 July 31, 1990 3133H o o c o o REDEVELOPMENT COMMITTEE M I NUT E S REGULAR MEETING August 9, 1990 - 4:05 p.m. The meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:15 p.m., in the Redevelopment Agency Conference Room, Fourth Floor, City Hall, 300 North "D" Street, San Bernardino. ROLL CALL . Roll call was taken with the following members being present: Chairwoman Esther.Estrada and Committee Member Jess Flores and Committee Member Michael Maudsley. STAFF PRESENT Robert J. Temple, Acting Executive Director, RDA; John Hoeger, Development Manager, RDA; Susan M. Morales, Project Manager, RDA; Barbara Lindseth, Accounting Manager, RDA; Robert Traister, Special Projects Administrator, RDA; Phil Arvizo, Executive Assistant to the Council; Lorraine Velarde, Executive Assistant to the Mayor; Dennis A. Barlow, Senior Assistant City Attorney; Kimberly A. King, Recording Secretary, RDA. OTHERS IN ATTENDANCE Gary P. Downs, Stradling, Vocca, Carlson & Rauth, Law Corporation. Chairwoman Estrada asked Mr. Temple if there were any items to be taken out of order. Mr. Temple suggested that Item 2 be taken out of order as it might take considerable discussion. 2. Central City Promenade. Industrial Development Revenue Bonds Mr. Temple stated that this item is requesting a Third Amendment for the Central City Promenade and is also directly related to the Schurgin Development situation and the status of their notes payable to us. . Barbara Lindseth stated that they are asking for an extension again to negotiate with Chase Manhatten Bank, and wants them to extend the due date to March 1, 1991. She said that the problem is that we have two notes currently outstanding. One note should have been paid already on April 5, 1990, with no payments made to date~ The other one starts on September 16, 1990. She also stated that Mr. Temple was going to call Schurgin Development and do a little arm twisting to see if we could get these notes paid. 1. 3159H o o o o o Mr. Downs stated that regarding the First Amendment to the agreement, Chase Manhatten Bank has a put option on these Bonds. They can put them back to Schurgin Development at certain intervals. Mr. Downs belief would be that Schurgin could not come up with the principal amount of $8 million dollars, thus creating a default scenario, which would cause the Trustee of the note to induce a foreclosure on the property. Mr. Downs stated that if the property were to go into foreclosure, Chase Manhatten Bank is the first lien holder of. record, thus their lien would be first in 1 ine to be paid, with all subsequent 1 iens being paid thereafter. If there were insufficient monies after Chase Manhatten Bank's payment, that would leave all other lien holders with non/payment or they would receive less than a dollar for dollar ratio of payment. Mr. Barlow stated the Commission has directed Counsel to start foreclosure proceedings. Mr. Temple stated that his intent was to contact Schurgin Development and state that he does not believe that Staff would recemmend the extension without bringing their payments current. Councilman Maudsley asked Mr. Temple what position the Agency is in with the notes. Mr. Temple stated that the notes are secured by two Deeds of Trust, which we are not in first position. Mr. Barlow stated that Schurgin has a deadline problem. His suggestion wou.ld be to forward the item to the Commission to talk about this in closed session as to possible litigation. Councilman Maudsley concurred, and requested staff obtain the answers to the questions at hand. Councilman Maudsley asked how close are we to filing this foreclosure. Mr. Barlow responded that they will be ready in a very short period of time, once they receive the documents, which are being prepared by the Redevelopment Agency. Discussion was held as to Schurgin's ability to make the notes current. Mr. Temple stated that the amount that Schurgin owes to bring them current, and also make the September payment, is only $11,000.00. Mr. Downs stated that if the extension isn't approved at the Commission meeting on August 20, 1990, that Schurgin was up against a hard deadline and Chase Manhatten Bank would be forced to exercise their put option and Schurgin would be forced to come up with the $7.29 million. 2. 3159H o o c::; RECOMMENDATION The Committee recommended that the item go forward to closed session with their recommendation to reject the extension unless the notes are brought current. 1. Request for Qualifications for Redevelopment Services Mr. Temple stated that we have developed a draft of the Request for Qualifications for development services on the Mt. Vernon Project Area. Susan Morales stated that both the General Plan and the Redevelopment Plan of the Mt. Vernon Corridor called for a theme concept. The theme concept would be from 5th to 9th Streets, the RFQ would allow the Agency to solicit a number of qualified firms that specialize in many areas of redevelopment such as acquisition, demolition, relocation, planning, financial and economic marketability analysis. This would substantiate an eligibility list in which to call upon for specifc services. o Chairwoman Estrada stated that she thought that this would be of considerable benefit to have firms with specific capabilities. Councilman Maudsley was concerned as to where the Agency was going to spend their money, in design and concept or architecture. Mr. Temple stated that:we have some 40 plus firms that have identified with the additional plans. The Agency is in the process of contacting these firms, and receiving their qualifications. This will be done in a period of three weeks. RECOMMENDATION The Committe approved that staff issue a Request (RFQ) for professional redevelopment 'planning services for the Mt. Vernon Theme Area. 3. Nt. Vernon Corridor Taxing Agency Agreements Susan Morales handed out a status report for the Mt. Vernon Pass thru Agreements regarding the proposals that have been tentatively approved by the school districts, Municipal Water District, East and West End Conservation Districts. With the exclusion of The Community College District, County Schools, and The County of San Bernardino, negotiations are still continuing. Susan Morales stated that it is the Agency goal to have the agreements finalized prior to the end of the 60 day Statute of Limitations on the Redevelopment Plan, which occurs on August 24, 1990. o ~~H 3. o o .4::) RECOMMENDATION The Committee recommended that the Agreements go forward to the Commission meeting scheduled August 20, 1990. 4. Industrial Development Note, Issue of 1982, Doane Products Company First Amendment to the project Agreement Barbara Lindseth stated that the Doane Products Company wants a First Amendment to the project Agreement. ' In this Agreement there are two subsections which state that at anytime they want any indebtness they have to get the permission in writing from First Interstate Bank of Texas, and First National Bank and Trust Company of Joplin, Mo. At this time Doane, First .Interstate and First National have come to an agreement to eliminate the two subsections so that Doane can obtain whatever indebtedness they will need. Since the City is the issuer on the Bond they need to have the Agency sign on the First Amendment to the project Agreement. Mr. Barlow stated that after reviewing this Amendment, there was nothing detrimental to the Agency or the City by agreeing to this. RECOMMENDATION o The Committe recommended that the Commission. adopt the appropriate Resolutions approving the First Amendment to the Project Agreement. 5. Benefit Resolutions for the acquisition of property at Fifth and .0. Streets. Mr. Temple informed the Committee that the Commission authorized the purchase of the property at Fifth and "0" Streets, located in the Central City North Project Area for an amount not to exceed $740,000 for the purpose of providing the Police Department with additional office space. The Benefit Resolutions will allow the use of Bond Proceeds from the State College Project Area for the acquisition of the property at Fifth and "0" Street. RECOMMENDATION The Committee recommended that the Commission adopt the appropriate Resolutions, making findings and determinations as to the benefit to the State College Project Area of the acquisition of property at Fifth and "0" Streets. o 3159H 4. .- o o c::> 6. Agreements for F1nanc1al/Ecomon1c Analys1s Barbara Lindseth stated that the Agency has sent out Request for Financial Qualifications (RFQ's) for Financial and Economic Consultants, but currently the Agency has been using Wood-Husing, who have come to the end of their contract. The Agency has sent out eleven requests with only three coming back. Of the three firms, one is Wood-Husing and Associates, ,the other two were The Natelson Company, Inc. and Agajanian and Associates. Both of them are well qualified as they have had extensive redevelopment experience. Barbara Lindseth requested approval of the attached agreements with Wood-Husing, The Natelson Company and Agajanian and Associates. It would be good to qualify all three in order for the Agency to have the source of three different firms for their use. RECOMMENDATION o The Committee recommended the Commission approve the attached agreements with Wood-Husing and Associates, The Natelson Company, Inc., and' Agajanian and Associates for financial/economic consulting services. 7. Dorothy Ingram Library Lease Mr. Temple stated that the Library board has reviewed the lease, and agrees to the terms and conditions Councilman Maudsley questioned if the Agency's Leases are transferable. John Hoeger stated that the lease with the Library can cancel on its anniversary each year. With other Leases the Agency has, they have 30 day notices, but added that almost all of the Leases can be terminated or 'replaced upon the Agency request. RECOMMENDATION The Committee recommended the Council and Commission approve the proposed lease. 8. Allocation of Funds for the removal of Signs on top of the Old Sages Building at Baseline and "E" Street Mr. Temple stated that the Agency is trying to enter into an agreement with the City Schools to remove a blighted sign on top of the old Sages building. Mr. Temple also stated the the allocation of $8,600.00 from bond proceeds is 50% of the removal cost. c::> 3159H 5. o o c o o Mr. Temple stated that in talking with Mr. Barlow, they were concerned as to the method of paying for this. The agreement was made with the Mayor's office that they would have a letter ~f agreement with City Schools to demonstrate that the Agency wants them to arrange for contracting the removal of the sign and for advising of invoices. The Agency would reimburse them for 50% up to and not more then $8,600.00. Councilman Maudsley questioned if the sign would be of any historical value. Lorraine-Velarde commented that she did not think that the sign is the original historical sign, that the original one was on the corner of the building, and when they remodeled the 2nd or 3rd time, they put up the sign that is there now. J REC<M4ENDATION Mr. Temple stated that Chairwoman Estrada requested Mr. Traister come forward with a list of goals. Chairwoman Estrada requested that this be continued to the next Committee meeting to give them more time to go over Mr. Traister's work program. REC<M4ENDATION The Committee recommend to continue to the next Committee meeting to give more time to go over Mr. Traister's work program. Adjournment There being no further business, the meeting of August 9, 1990, was adjourned at 5:46 p.m. APPROVED BY: ~~ - ~he; str-a a, a rwo:;' Redevelopment Committee 6. 3159H o 0 c::> REDEVELOPMENT COMMITTEE M I NUT E S REGULAR MEETING August 23, 1990 - 4:37 p.m. The meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:37 p.m., in the Redevelopment Agency Conference Room, Fourth Floor, City Hall, 300 North "0" Street, San Bernardino. o o ROLL CALL Roll call was taken with the following members being present: Chairwoman Esther Estrada and Committee Member Michael Mauds1ey. Members being absent: Committee Member Jess Flores. STAFF PRESENT Robert J. Temple, Acting Executive Director, RDA; John Hoeger, Development Manager, RDA; Susan M. Morales, Senior Project Manager, RDA; Robert Traister, Special Projects Administrator, RDA; Phil Arvizo, Executive Assistant to the Council; Lorraine Velarde, Executive Assistant to the Mayor; Dennis A. Barlow, Senior Assistant City Attorney; Kimberly A. King, Recording Secretary, RDA. 1. Main Street Activity Report . RECOMMENDATION The Committee recommended that the item be forwarded to the Commission to be received and filed. 2. Hawkins, De1afie1d & Wood Agreement Radification (Handout) RECOMMENDATION The Committee recommended that the agreement be prepared for the next Committee Meeting of September 6, 1990. 3. Thrifty Building Financing Mr. Temple stated that this is not an action item, and that the Agency has been working on various financing options at this time and went on to ask for some direction, so as to have adequate information prepared for the Committee at the next Committee meeting held on September 6, 1990. 1. August 23,1990 3l59H o o o - o. o Chairwoman Estrada made a comment as to the difficulty or impact it will have on the State College Project Area. Chairwoman Estrada went on to say that the Agency hasn't explored other possible options. Mr. Temple stated that he knew one option, which was a basic sale lease back. Mr. Temple remarked that Committee Member Mauds1ey's option idea as he understood it is to sell the building, recover the Agency's money, and put it back on the tax ro11s~ Mr. Temple went on to say that this option could cause significant disruption, since the Agency has . already undertaken a great deal of the renovation with the expectation of moving some City departments to that location. Chairwoman Estrada stated that if you sell the building and turn around and lease it, then you recoup your costs. Committee Member Mauds1ey stated that the Agency's goal is to get the building in shape, and to get most of the square footage leased. Chairwoman Estrada inquired how fast the Committee has to act on this situation. Mr. Temple stated that there is no urgency as the renovation won't be done and ready for occupancy before the first part of October, but went on to say that it can't be postponed indefinitely. RECOMMENDATION The Committee recommended that the staff bring back more information to the next Committee meeting of September 6, 1990. Number five was taken out of order as the Mayor wanted to speak on item number four. . 5. Simon & Company Agreement and Extension Mr. Barlow described the Agreement with Simon & Company as an agreement the Agency has had for this past fiscal year. This agreement was also for the City and the Water Board with the cost deferred three ways. The extension, which he has, but is in typing, and was not available in time for the Committee meeting, is an extention for one additional year, with the same terms and the same conditions which is $20,000 divided by the three Agencies. Committee Member Mauds1ey asked if we needed it, do we want it, and how much was it. Mr. Temple said yes, we need it, we want it, and the fee is $20,000 divided three ways. 2. August 23, 1990 3159H o o 4::) RECOMMENDATION The Committee recommended to forward to the Commission on September 5, 1990. . 4. Travel Mayor Holcomb stated that every year there is an International Trade Show in London for major Aerospace and Aviation affiliates. He felt that the Redevelopment Agency should get some representation at the Show this year so as to get prepared for the closing of Norton Air Force Base. He would like to send Mr. Robert Traister as .the Agency representative Discussion ensued. o Mr. Traister stated that the contingency going over will also be going to Bremen, Germany. They will have a personalized tour set up of the High Speed Rail System, the total cost would not exceed $5,000. Chairwoman Estrada stated that she has some real concerns and could not support this. Chairwoman Estrada went on to ask Mr. Traister what tools would the Agency have to take over. Mr. Traister stated that the County has approximately 20,000 brochures with information about the San Bernardino Region, along with his business cards. Committee Member Maudsley con cured with Chairwoman Estrada and would not support this item. RECOMMENDATION The Committee recommended that the item be handled administratively. CLOSED SESSION The Committee convened to closed session to discuss possible litigation pursuant to Government Code Section 54956.9c at 5:30 p.m. The Committee reconvened from closed session at 5:50 p.m. Adjournment There being no further business, the meeting of August 23, 1990 was adjourned at 5:51 p.m. APPROVED BY: o 3. August 23, 1990 3159H