HomeMy WebLinkAboutR10-RDA Item
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. . Redevelopment Agency · City of San Bernardino
~NllIIh "D" SIner, I'arilFlaor . s..J.unIIDo, c.JiCanda 92411
(114)314-5011 FAX (114)11I-9413
OCTOBER 12. 1990
AUTO PLAZA ELECTRONIC READER BOARD
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.SvnoDsls of Previous Commission/Council/Committee Action:
07107/86" Set Joint Public Hearing for July 21. 1986 at 11:00 a.m. to consider
sale of certain real property.
07/21/86 Resolution 86-300 authorized execution of Grant Deed. Resolution on
86-301 approved sale of APN 141-251-39 to Orange Show Plaza
Associates. Resolution 4900 authorized secretary to execute and
accept conveyance from City. Motion authorizing execution of
Subordination "Agreement subordinating RDA Note. Trust Deed. and OPA
to construction financing documents. ResolutIon 4901 authorIzed
First Amendment to OPA.
(continued on page 2)
Recommended Motion:
(COMMUNITY DEVELOPMENT COMMISSION)
That the ExecutIve Director of the Redevelopment Agency be authorIzed to
execute an Agreement wIth the San Bernardino Auto Plaza AssocIatIon for
one-half of the. cost and Installation of an electronIc reader board for the San
Bernardino Auto Plaza. and to authorIze an Increase In the Agency's budget of
$60.000.
Respectfully Submitted.
Executive Director
Project: Southeast Industrial Park:
FUNDING REQUIREMENTS: $60.000
Hard: 3
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Budget Authority: Reauested
Commission Notes:
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Agenda of:
11/05/90
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Synopsis of Previous Commlsslon/Councll/Commlttee/Actlon:
12/02/86
12/23/86
05/02/88
Approval In concept of an OPA for development of an Auto Center.
Approval of Resolution 4831 authorizing an OPA with Orange Show
Plaza Associates.
Commission adopted Resolution 5111 approving a Second Amendment to
OPA with Orange Show Plaza Associates.
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S T A F F R E P.O R T
This Item would approve the bUdget authority and authorize the reimbursement
of one half of the cost and Installation of an electronic reader board sign
for the San Bernardino Auto Plaza, In an amount not to exceed $60,000.
BACKGROUND
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On December 23, 1985, the Redevelopment Agency entered Into an Owner
Participation Agreement (OPA) with Orange Show Plaza Associates (OSPA) for
the development of an automobile center In the Southeast Industrial Park.
The OPA was amended In 1986 and again In 1988 to extend construction dates
and substitute a secured note for one that was unsecured. OSPA was to
Install master site I~provements, complete eleven new.car dealership sites
and develop an auto service center and general commercial buildings on
Parcels 12 and 13. .
To date, nine dealerships have been completed and are open for business.
These Include Hyundal, Mltsublshl, Pontiac, Jeep, Chrysler, Suzuki, Acura,
Nlssan which occupies two dealership sites, and Volvo. One automobile
dealership site remains undeveloped. In addition, OSPA completed all the.
master site Improvements for the Auto Plaza, and the development of Parcels
12 and 13, have been completed by Victor Boyd and Greg McClelland (B&M).
The Auto.Plaza functions as a group of separate automobile dealership
entltles,.each Individually owned and operated, but all being members of the
San Bernardino Auto Plaza Association. The primary function of the
Association Is to manage joint advertising and marketing efforts for the
Plaza.
Currently, the Association Is having difficulty In Increasing the Identity of
the Plaza. Many dealerships have limited, or no freeway exposure, thereby
.causlng a great number of people to continue to be unaware of their
location. The Association has researched the effect of electronic reader
board signs and the pOsitive benefits they provide auto centers.
Several aspects that were considered were the proximity of the board to the
Auto Center, the benefits to dealers with Interior locations or with
locations not directly accessible, and freeway exposure In relation to off
ramps.
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The cost and Installation of the sign, Is estimated at $118,000, plus fees
and permits. This estimate Is based on the use of the existing posts and
substructure of the current sign, with removal of the top portion, which
would be replaced with the electronic equipment. The Planning and Building
Services Department has Informed staff that the Development Code has been
amended to permit blinking lights on signs for certain uses, such as an auto
mall. All that will be required by Planning and Building Services Is a minor
modification to the existing CUP.
The Association Is requesting Agency assistance of $60,000 (one half of the
cost of Installation).
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In evaluatIng several other auto centers in the Inland EmpIre, It has been
determIned that there Is. Intense competItIon among cItIes to attract new
dealershIps and retaIn exIstIng dealershIps. Other cItIes have ~xpended
amounts far In excess of San BernardIno's Investments In order to gaIn an
edge In an extremely.competltlve market.
The AssocIatIon has volunteered to donate tIme on the electronIc reader board
for publIc servIce announcements and posItIve Image buIldIng announcements
for the CIty of San BernardIno thus, the return on Investment for the
expendIture of Agency funds would not only be In hard dollars earned In sales
tax, and property tax revenues; but would also be In hard dollars saved In
qualIty publIc relatIons for the CIty In lIeu of bIllboard or newspaper
advertIsIng. .
RECOMMENDATION
Staff recommends adoptIon of the form motIons whIch would authorIze the
ExecutIve DIrector to execute an agreement wIth San BernardIno Auto Plaza
AssocIatIon for one-half the cost of InstallatIon of an electronIc reader
board In an amount not to exceed $60,000.
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'011 AUTOe PLAZA e ASSOCIATION
Mr. aobert Temple
Executive Director
City of San Bernardino
aedevelopment Aeency
300 North "D" Street
Fourth Floor
San Bernardino, Ca, 92418
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Dear Mr. Temple:
Thank yOU for takine the time to .eet with us reeardine our
dilemma over the .uch needed Electronic aeader Board Sien
replacement for the San Bernardino Auto Plaza Main Sien.
Without the assistance of the aedevelopment Aeency. this inteeral
improvement to the Auto Plaza could not be initiated now or in
the foreseeable future.
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The primary reason for installation of the Electronic aeader
Board Sien is to more clearly identify not only the location of
,the Auto Plaza; but those interior dealerships that have no
freeway exposure. Due to the off-freeway location of the vast
majority of dealerships in the Auto Plaza, many people in our own
city, let alone the daily freeway commuter traffic do not know
the dealerships are in the A~to Plaza.
Electronic aeader Boards are considered so vital today, that no
other Auto Plaza in Southern California would even consider
openine without one, and the San Bernardino Auto Plaza is
currently the only new Auto Plaza without one. The reality is
that not havine an Electronic aeader Board equates to lost
business to the dealerships in the San Bernardino Auto Plaza,
especially from the out of town business that continues to drive
by our dealerships and shop elsewhere.
The current cost of purchase and installation of the Electronic
Reader Board is estimated'by Quiel Bros. at 1118.000.00 plus fees
and permits. This proposal utilizes the existine posts and
substructure of the current sien with removal'of the top portion
which would be replaced with the Electronic aeader'Board.
aelocation of the top portion of the sien would be.a separate
cost item and is currently being reviewed by Quiel ~rOS.
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The Auto Plaza Association is requestine assistance from the
aedevelopment Aeency in the amount of 50" of the cost of this
project, approximately 160,000.00. The Auto Plaza A.sociation
will pay the other 50" in cash with no encumbrances to the sien,
includine all maintenance charees. We feel that a full up-front
cash payment is crucial in order to avoid any possibility of the
sien eoine dark for lack of payment to a loan encumbrance due to
the event of any future deterioration of the automobile business
and conversely to the dealer body Of the Auto Plaza.
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Without a doubt. Electronic Reader Boards work. We feel that
with the Reader Board. dealership business will increase equatinc
to increased sales tax ceneration for the city, A viable and
healthy Auto Plaza in San Bernardino will also cenerate interest
in the remaininc lots av.i~able .in the area which in turn will
~enerate additional property tax and interest in the
Redevelopment Acency's assistance.
The Auto Plaza Association will donate ti.e on the Electronic
Reader Board for public service announcements and positive imace
building announcements for .the City of San Bernardino. Thus the
return on investment for the expenditure of the Redevelop.ent
Agency's funds would not only be in hard dollars earned in sales
tax and property tax revenues; but would also be in hard dollars
saved in quality public relations for the city'in lieu of
billboard or newspaper advertising.
Without the participation of the Redevelop.ent Agency. this
project cannot be undertaken. The Auto Plaza Association is not
capable of obtaining a commercial loan for this project a. it is
a non-profit organization.with no credit history and no net
worth. Individual dealers will not give personal ~or corporate
guarantees for a commercial loan because of the inherent risk of
individual liability in the event of default on the part of other
dealers going out of business and not fulfilling their financial
obligation for the sign..
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A deferred loan carries the same potential liability to the
existing d.a~er body. as well as. a deferred liability for anyone
selline their business. An full investment of this nature would
also take funds from the Asso~iation which could be used to
enhance other advertising programs to take advantage of an
improved business environment when it happens.
The San Bernardino Auto Plaza Association feels that the
Electronic Reader Board is the single most important factor in
fulfulling the immediate need for the present and future success
of the Plaza. The present situation is grim with Harmon Motors
already sold. Tom Flores Hyundai on the brink of closure. Royal
Suzuki virtually vacant and mareinal interest in the remainine
lot due to the business conditions.
With Le Nans Nissan now open. San Bernardino Volvo opening soon
and new ownership of the Harmon Auto Center. the opportunity to
turn the Auto Plaza around into a viable business environment
exists now and must be undertaken immediately.
In fact. we believe so strongly in this project. that we are
committed to raise $60.000.00 among ourselves for this project.
Even though the funds will come from the' Auto Plaza Association.
Harmon Auto Center. Royal Chrysler Plymouth Suzuki. San'
Bernardino Mitsubishi. Le Mans Nissan and San Bernardino Volvo
who have agreed to contribute. are also frontinc additional funds
to make up the share from those who do not want to contribute in
order to ensure the collection of the Plaza's $60.000.00 share
and immediate completion of the project is undertaken.
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Herb Friedlander Acura, To. Flores Hyundai and Me Mahon Oliphant
Properties, owner of the remainine lot, have not com.itted to a
contribution at this time and their share will be collect.d
throueh the proper channels of the Association's By-Laws,
This situation will have no .ffect on the installation of the new
Electronic Reader Board Sien, as w. fe.l the it is imperative
that there be no encumbrances on the sien in order to euarantee
i,ts success.
The Auto Plaza Association is very proud of our auto .all,' We
are also very proud of our town, the City of San Bernardino. The
Auto Plaza, as a whole, is an inteeral part of the business
industry base of the city, as well as the dominant factor 'in the
success of the new perimeter developments to the north and south
of the Plaza~ Our partnership with the city on this project is
imperative. It make. sense, provides a return and include.
taneible, future benfit. for the city, the Auto Plaza and the
community, We si.ply cannot wait, We need your help and we'll
work very hard on our part to ensure the completion of this
project and the future success of the Auto Plaza.
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Richard ~~ DeZorzi, President
San Bernardino Auto Plaza Association
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AGREBMBN'1'
'1'BIS AGREBMBN'l' iB entered into aB of "th1B
day of
,. 1990, by and. between 'the REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO (-Agency-) and the SAN
BERNARDINO AUTO PLAZA ASSOCIATION, a California, non profit
corporation, (-Association-):
WITNESSE'l'H:
WBBREAS, on December 23, 1985 the Agency entered into an
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Owner Participation Agreement (OPA) with Orange Show Plaza
Associates (OSPA) for 'the development of an automobile center in
the Southeast Industrial Park Redevelopment Project Area, and
WBERBAS, the OPA was amended in 1986 and again in 1988, to
extend construction dates and substitute a secured note for one
that was unsecured, and
WBERBAS, nine dealerships have been completed and are open
for business, and
WBEREAS,
automobIle dealership site remains
one
undeveloped, and
WBBRBAS, as part of the project the master site
improvements, .and an auto service center and general commercial
buildings have been completed, and
WHEREAs, it has been determined 'that an electronic reader
board sign is necessary to increase the identity of the Auto
Plaza, and
WBERBAS, increased identity will result in increased sales
and will tllereby benefit both 'the Association and 'the City of San
Bernardino 'through increased sales tex revenue,
DAB/ses/AutoPlaz.agr
October 22, 1990
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NOW, THEREFORE, 1:he parti.s hereto agree as fOllows:
1. Association agrees to install an electronic reader
board si9D providing information relative to 1:he Auto Plaza and
visible to motorists on 1-215. Said sign shall be fully
installed and operational on or before December 1, 1991.
2. . Such sign shall be subject to all permits and approvals
of all applicable governmental agencies.
3. Upon completion of .1:he sign as determined by the City
of San Bernardino and the presentation of invoices for funds
expended, Agency agrees to reimburse Association for 1:he cost of
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installation and materials for said sign up to one-half of the
cost thereof, but in no event shall such reimb\lX'sement exceed
$60,000.
4. The relationship between Association and Agency shall
only be as. outlined in this Agreement and shall not be construed
16 as partnership, jOint venture, association or other jOint
17 enterprise.
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5. Agency shall have no responaibili ty whatsoever for the
19 selection of the contractors, for 1:he construction work on said
20 sign, nor responsibility for the finished product.
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6. Association hereby agrees to indemnify, protect and
22 defend Agency, its offices, agents and employees from any damage,
23 loss or liability arising out of or associated with this
24 agreement or the duties. end responsibilities contained herein.
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7. Association hereby agrees to comply with all applicable
26 laws, statutes, ordinances or regulations of every level of
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government which currently affect the installation of said sign
DAB/ses/AutoPlaz.agr
October 22, 1990
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or shall dur1ng 'the 'term of 1:h1s Agreemen1: so affec1: 11:.
8. Any no1:1ces 1:0 be g1ven 1n rela1:1on 1:0 1:h1s Agreemen1:
3 shall be depos11:ed w1'th 1:he Un11:ed S1:a1:e. Po.1:al Serv1ce pos1:age
4 prepa1d and addressed as follows:
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TO THE AGENCY:
Execu1:1ve D1reC1:or
300 Nor1:h wDw Stree1:
San Bernard1no, CA 92415
San Bernard1no Au1:o Plaza
Assoc1a1:10n
TO THE ASSOCIATION:
San Bernard1no, CA
No1:h1ng 1n 'th1s paragraph shall be conS1:rued as preven1:1ng
10 'the del1very of suCh no1:1ce by personal serv1ce.
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9. The Assoc1a1:10n here1n covenan1:s by and for 11:self, and
12 ass1gns, and all persons claJ.m1ng under or 1:hrough 1:hem, 1:ha1:
13 'there shall be no d1scr1m1na1:1on aga1ns1: or segrega1:10n of, any
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person or group of persons on accoun1: of race, color, creed,
15 re11g1on, se~, mar11:al s1:a1:us, na1:1onal or1g1n, or ancestry, 1n
16 1:he cons1:ruc1:1on or opera1:1on of 'the s1gn con1:empla1:ed here1n,
17 nor shall 'the Assoc1a1:1on or any person claim1ng. under or through
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18 11:, es1:ab11sh or perm11: any such pract1ce or prac1:1ces of
19 d1scrJ.m1nat10n or segrega1:10n w1'th reference 1:0 1:he selec1:1on of
20 con1:rac1:ors or subcon1:rac1:ors for 'the construc1:10n or operat1on
21 of 'the sa1d s1gn.
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DAB/ses/Au1:oPlaz.agr
Oc1:ober 22, 1990
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0- 1 AGRB8MBNT RB: SAN BERNARDINO AU'1'O PLAZA ASSOCD.TION
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3 IN WITNESS - WHEREOF 1:I1e parties here'to have executed this
4 Agreement on the day and date first above shown.
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6 REDEVELOPMEN'!' AGENCY OF THE
7 CI'1'Y OF SAN BERNARDINO
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10 By:
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11 Executive Direc'tor
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U APPROVED AS TO FORM
0 14 AND LEGAL CON'1'EN'1':
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Agency Counsel
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20 SAN BERNARDINO AUTO PLAZA
21 ASSOCIA'1'J:ON
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DAB/ses/Au'toP1az.agr 4
October 22, 1990