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OITY OF SAN BERNQDINO - REQUEST Fa COUNCIL ACTION
From: Larry E. Reed, Director
Subject: Request by tenants of shopping
center located at the Northeast
corner of Highla~d Avenue and Palm
Street to issue a conditional
Certificate of Occupancy subject to
conditions.
Dept: Planning & Building Services
Da~: November 8, 1990
Synopsis of Previous Council action:
None.
Recommended motion:
1. Authorize staff to issue a Conditional Building Certificate of Occupancy for
the shopping center located at the northeast corner of Highland Avenue and
Palm Street for up to one year in order to allow tenants to move into a building
that is not complete nor in compliance with City development Codes.
2. Authorize the Mayor to use the appropriate public funds to complete the shop-
ping center in the event the owner fails to complete the building in accordance
with City's standard conditions and building Code requirements by 12/31/91.
3. In the event the City incurs costs completing the shopping center and the
owner fails to reimburse the City, direct the ity Clerk's Office to file a
tax lien against the property.
F.
Signature
Contact person: Larry Reed, Director
Phone: 5357
Supporting data attached: Staff Report
Ward:
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FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.1
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(Acct. DescriDtionl
Finance:
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Council Notes:
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Aaenda Item No.
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CITY OF SAN BERNjQDINO - REQUEST FA COUNCIL ACTION
STAFF REPORT
vistar Financial Incorporated, owner of the shopping center
located at the northeast corner of Highland and Palm Avenue
obtained Planning approval under Review of Plans No. 86-127
on June 11, 1987., construction plans were submitted for plan
review for compliance with the City's Building Code on May 2,
1989, and building permits No. 79949 and 79950 were obtained
on November 7, 1989. Construction work on the shopping
center started in November, 1989.
On March 27, 1990, city Building Inspectors observed that the
glue laminated beam supporting the covered walkway in front
of the shopping center was not pressure treated and weather
resistive, as required for exterior exposed beams under
section 2511(g) of the City's Building Code. (International
Conference of Building Officials [ICBO] Uniform Building Code
as adopted by the State of California). The contractor
appealed this determination to the Director. After
conferring on this matter with the ICBO Headquarters in
Whittier California, the director met with the contractor and
representatives of vistar. This meeting confirmed the need
for exposed glue laminated beams to be pressure treated
weather resistive, the beam structurally covered, or propose
an alternate method (developed by the design architect
engineer) for the purpose of achieving the Code's intent of
having a solid structural beam that would not delaminate when
exposed to the weather. It was agreed that no stop work
notice would be issued based upon the owner's understanding
of the nature of the violation and that the beam would be
structurally covered or an alternate way of protecting the
beam from delaminating would be developed and submitted to
the city for approval. ,
The shopping center has been substantially completed since
August, 1990. Foster Freez Restaurant, a separate detached
structure was issued a conditional business certificate of
occupancy (C of 0) pending completion of the shopping center.
vistar has been experiencing financial problems that has not
allowed them to complete the shopping center. The architect
is no longer providing architectural services to the owner or [
doing tenant infill review. The general contractor has left
the job site. This situation has left at least two of the
shopping center's tenants in a difficult situation. A real
estate office and a pizza restaurant. The real estate office
has hired staff, purchased office furniture (now in storage)
and is 85% completed with their tenant improvements. The
owner apparently does not have the funds to complete the
shopping center nor the ability to bond for the shopping
center's ultimate completion. ,The tenants have taken on some
of the owner's responsibilities (incurred costs) in lieu of
payment of rent. The tenants and the city are caught between
the owner's financial difficulties and the City's development
Codes.
75-0264
.
M & CC Staff Repo~
ROP 86-107
November 8, 1990
Page 2
o
The tenants cannot obtain a Business License until the
owner's obtain a Building C of 0 (the Building Code's ending
document indicating the building is in compliance with all
the city Ordinances). The city cannot issue the owner a C of
o until the shopping center is completed or until the owner
has bonded for its completion.
The tenants have requested
Conditional C of 0 for
understanding:
the city to issue the owner a
one year with the following
1. If the shopping center is not completed, the city
should proceed to complete the shopping center
using city funds.
2. The cost of work, if the owner does not reimburse
the city, can be placed as a lien against the
property.
OPTIONS:
1. Deny the tenant's request; the shopping center will
remain vacant until vistar or its successor in
ownership completes the shopping center or bonds
for the project's completion in accordance with
City's conditions of approval and applicable
building Codes.
2. Approve the tenants request; this allows the
tenants to complete their tenant spaces and obtain
a Conditional C of 0 under the following
conditions:
a. The owner has one year to complete the
shopping center.
b. If the shopping center is not completed, the
City will have the shopping center completed.
c. The cost of completing the shopping center
plus a $2,000 administrative fee will be
billed to the owner.
d. If the bill is not paid within thirty (30)
days upon mailing to the owner, the city's
bill will be filed as a tax lien against the
property to insure the city is reimbursed for
the incurred costs for completing the shopping
center.
M & CC Staff Repo~
ROP 86-107
November 8, 1990
Page 3
o
RECOMMENDATION:
Approving this request will set a precedent. Never the
less, staff requests approval of the tenant's request,
authorizing staff to issue a Conditional Certificate of
Occupancy with an expiration date of December 31, 1991,
subject to conditions 2.a. through 2.d. listed above
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Director
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