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HomeMy WebLinkAboutR06-Economic Development Agency . . . Dflv E L 0 P'M EN T DE PAR.E 1'1 T OF THE CITY OF SAN BERl'IARDINO REOUEST FOR COMMISSION/COUNCIL ACTION From: KENNETH J. HENDERSON Executive Director Subj ect: "MILLENNIUM MANOR" SEl'IIOR HOUSING PROPOSAL Date: January 29, 1992 Synopsis of Previous Commission/Council/Committee Action(s): On November 26 and December 16, 1991, the Housing Committee and Community Development Commission considered the Millennium Manor Senior Housing Project. The Commission did appropriate funds, but referred the matter back to the Housing Committee. On January 14, 1992 the Housing Committee considered this matter and recommended approval to the Community Development Commission. Recommended Motion(s): (Communitv Development Commission) That the Community Development Commission approve the Cliff Carel and Associates request for a construction loan in the amount of $1,735,000 for the development of a 40 unit Senior Citizen apartment complex. Adm~ator ~'~~ERSON Executive Director ------------------------------------------------------------------------------- Contact Person(s): Ken Henderson/Doris Daniels Phone: 5081 Project Area(s): N/A Ward(s) : One (1) Supporting Data Attached: Staff Report FUNDING REQUIREMENTS: Amount: $ Source: 20% Set-Aside $1.735.000 Budget Authority: Bein2 Sou2ht Commission/Council Notes: KJH:DAD:paw:0275q COMMISSION MEETING AGENDA Meeting Date: 2/3/1992 (p Agenda Item No. . . . . . DEVELOPI'IENT DEPARTI'IENT OF THE CITY OF SAN BERNARDINO STAFF REPORT "I'IILLEl'Il'IIUI'I ~OR" SEl'IIOR HOUSING PROPOSAL On November 26, 1991, the Housing Committee considered the Cliff Carel proposal and referred it to the Community Development Commission. At the Commission's December 16, 1991 meeting, the Commission considered the proposal and requested that it be returned to the Housing Committee for additional information, clarification and review. Since the initial presentation of the information presented above, staff has had ongoing negotiations with Carel and Associates. At the January 14, 1992 meeting of the Housing Committee, a status report was presented. Based upon the status report, the Housing Committee recommended to the Commission the following: 1. It is now proposed that the Third Street Bridge be deleted from the project. The original proposal included the removal of the bridge, the widening of the street to four lanes, the replacement of the roadway, and the construction of curbs and gutters. The cost that was included in the initial proposal was 5148.146. The present cost projections are $75,000 for the removal of the Third Street bridge, backfill and replacement of the roadway. This project can be constructed with another funding source to be determined by the Agency. A review of the current DDA file between the Agency and Cliff Carel reveals that removal of the bridge was a City (Agency) obligation. 2. The annual payments are now computed at $161,121. The deletion of the cost of the Third Street Bridge from the project would now leave a margin of $45,340 after debt service. This is based upon a construction loan in the amount of 51.735.000 at nine percent (9%) interest rate for a thirty (30) year term with a five (5) year maturity. Carel would make interest only Davments for the first 18 months of the loan. 3. The Rent Up and the guarantee of the project by the San Bernardino Housing Authority needs to be further explained. The Housing Authority which issues Section 8 "authorizations" will - . -------------------------------------------------------------------------------- KJH:DAD:paw:0275q COMI'IISSIOl'l I'IEETIl'IG AGENDA l'Ieeting Date: 2/3/1992 Agenda Item No. ~ . . . DEVELOPMENT DEPARnIl STAFF REPORT "MILLENNIUM MAl'fOR" SENIOR HOUSING PROPOSAL January 29. 1992 Page Number - 2 - . not guarantee this project. However, it has indicated that it will direct and notify approved Section 8 applicants of this project. Information provided by the Authority further indicates that there is presently a shortfall of at least 2000 units for senior citizens in the Inland Empire. Since the Carel units are targeted for "active seniors" who are 55 years of age and up, the Authority has noted that the rent-up of a project of this size (40 units) should take approximately 4 - 6 months. 4. There would be a 1.5% Loan Origination Fee. Because of the Low/Moderate Housing Fund's cash flow position and in keeping with our previous discussions on this project, the Committee recommended to the Commission approval of the financing structure as contained herein, the establishment of Millennium Manor as priority number one, and that this project have first call on new Twenty Percent Set-Aside Tax Increment. In considering the Housing Committee recommendation relative to priority, it is important for the Commission to consider prior actions taken in connection with the Arden/Guthrie Project, the Comprehensive Housing Affordability Strategy (CHAS), the funds appropriated for other housing projects and the current cash-flow position of the Low/Moderate Income Housing Fund. Staff recommends adoption of the form motion. ICE J. ERSON. Executive Director Development Department KJH:DAD:paw:0275q COPlMISSION MEETING AGENDA Meeting Date: 2/3/1992 Agenda Item No. ~ . . . . . DEVELOPMENT DEPARTMENT OF TIIB CIn OF SAB BEIllWIDINO REOUEST FOR COMMISSION/COUNCIL ACTION From: KENNETH J. HENDERSON Executive Director Subject: IRLARD EMPIRE ALL NEWS CHANNEL Date: January 28, 1992 Synopsis of Previous Commission/Council/Committee Action(s): The Mayor and Common Council previously approved an.agreement with Creative Communications, Inc., to conduct a feasibility study regarding an all news channel in the, Inland Empire. Recommended Motion(s): (Communitv Develooment Commission) MOTION That the Community Development Commission consider the attached request submitted by Creative Communications, Inc., in connection with the establishment of an all news channel and take what action deemed appropriate. JU;ftft~ERSON Executive Director Contact Person(s): Ken Henderson/Julie Reifel Phone: 5081 Project Area(s): All Ward(s): Supporting Data Attached: Staff Report: Proposal FUNDING REQUIREMENTS: Amount: $ 1.500.000 To Be Established Source: Budget Authority: To Be Established ---------------------------------------~--------------------------------------- Commission/Council Notes: ------------------------------------------------------------------------------- KJH:1ag:0496E COMMISSION MEETING AGENDA Meeting Date: 2/3/1992 Agenda Item Number: ---2-- . . . . . DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO STMF REPORT Inland EmDire All News Channel This item has been placed on the agenda at the request of the Chairman of the Commission. The Mayor and Common Council previously approved financing for Phases I and II of a feasibility study conducted by Creative Communications, Inc., relative to the establishment of an Inland Empire All News Channel. Creative has previously provided reports to the Mayor and Common Council relating to its findings, conclusions and recommendations. Attached is a draft proposal received by staff which requests a letter of credit or loan guarantee of $1.5 million to support a six (6) month start-up phase and twelve (12) months of operation. Based upon the foregoing, staff recommends adoption of the form motion. KENNETH J. BEND RSON, Executive Director Development Department KJH:lag:0496E COMMISSION MEETING AGENDA Meeting Date: 2/3/1992 Agenda Item Number: -1-- . . . 'IlllI vv~, uvu . . ORAfl January 23, 1992 DRAFT TO: TIM STEINHOUSB FR: EDWIN HART, CEO, CREATIVE COMMUNICATIONS ASSOCIATES, INC. RE: INLAND EMPIRE ALL NEWS CHANNEL CC: MAYOR W.R. "Bob" HOLCOMB and MEMBERS of the COMMON COUNCll.. We are nearing completion of Phase IT of an exciting and unique project for the City of San Bernardino to initiate a private, non-profit daily television news channel via cable outlet to be known as the Inland Empire All News Channel (lEANC). The JEANC will deliver news 24 hOI1Ill Ii day. Initially, the chllDDcl will provide Ii une-huur lucal and re&ional news program shown prime time Monday through Friday. The remainder of the service will be state, national and world news provided by CONUS, a Minneapolis-based news gathering operation similar to CNN. On an hourly basis throughout the day, local news cut-ins of 60 to 120 seconds each will be aired. As the service expands, local news will also be shown on weekeDds. We have concluded the following: 1. The JEANC should initially be delivered on COMCAST, which serves 40,000 subscribers within the city limits. After the ANC begins broadcast, the service should be offered to the remaining cable systems in San Bernardino and Riverside counties. As more cable systems deliver the service, local news coverage will expand to include the additional communities. More than 2.5 million people reside in the two counties. 2. The JEANC Cotporation, a ,SOI-C3 non-profit corporation, has been fonned to administer funding and employ a management finn to establish and run the daily news operation. Creative Communications, as the company which has guided the project from the beginning, would like to be retained to develop the mANC. / 3. We ask for a letter of credit or loan guarantee for $1.5 million to support a six-month startup phase and the first 12 months of operation. 4. We project that through sales of advertising time and possible cable subscriber fees, the IEANe should break even within 18 to 24 months. (See projections contained in monthly report for December 1991.) 5. Creative Communications has identified 52 key foundations that, by geography and interest, are most likely to provide grant money to help defray startup costs. With the establishment of the cOIporation board, grant requests can proceed. (See monthly reports for October and NOvember 1991.) 6. Should the city government approve, Creative Communications could jointly manage '1 . . . . . the IEANC,and Telecommunications Division, improving the quality of programming on Channel 3 while reducing the city's cost of supporting the division by as much as $100,000. (See monthly report for January 1992.) NOTE: The consulting contract between CCA and the City expires February 29, 1992. To continue the project, the IEANC c01JlOI'lltion board should hire CCA, or another management company, to take the next steps necessary to begin operation. That includes acquiring necessary broadcast equipment and hiring and training journalists and technical staff as outlined in the plan presented in June 1991 at the conclusion of Phase L CCA can provide CONUS transmissions on- air within 90 days of contract. The prime time local news program -- the mainstay of the mANC - can go on-air within 180 days of contract with CCA. 7