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HomeMy WebLinkAboutR02-Economic Development Agency , I- e .'"'.,... - . . . . REDEVELOPMENT COMMITTEE M I NUT E S REGULAR MEETING November 22, 1989 - 4:30 p.m. The meeting of the Redevelopment Committee was called to order by Committee Member Jess Flores at 4:30 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 being present: Committee Member Jess Flores; Committee Member Michael Maudsley. Absent: Chairwoman Esther Estrada. STAFF PRESENT: Robert J. Temple, Acting Executive Director, Redevelopment Agency; Barbara Lindseth, Accounting Manager, Redevelopment Agency; Dennis A. Barlow, Senior Assistant City Attorney; James E. Robbins, Deputy City Administrator; John Cole, Assistant to the Council; Sue Gonzales, Project Manager, Redevelopment Agency; Gary Wagoner, Senior Project Manager, Redevelopment Agency; Margie Vance, Recording Secretary. IN ATTENDANCE: John Edwins, College Parkway Development Associates Committee Member Jess Flores requested that item 5 be taken out of order. 5. College Parkway Associates OPA Committee Member Flores asked Mr. John Edwins, Parkway Developer if he had fully complied with the Owner's Participation Agreement. Mr. John Hoeger said that as indicated in the staff report Mr. Edwins has "substantially" complied with the agreement. He stated that in 1985, the Agency entered into an Owner's Participation Agreement with College Parkway .~ Associates and that as an incentive to develop University Plaza, the Agency loaned College Parkway Associates $300,000 to pay for offsite improvements. He said that the loan was partially paid off, reloaned under an amendment, and partially paid off again. He said that the current balance of $120,000 is due and payable in January 1990. - . Mr. Hoeger explained that as a result of College Parkway Associates' efforts, the following development has occurred at University Plaza: Ramada Inn, Taco Bell, Motel 6, Papa's Pantry. He said that College Parkway Associates also supplied clean dirt for the San Bernardino Auto Plaza, the San Bernardino Golf Course and a fire station. 1 November 22, 1989 l899R t , . e .".;...-.- . . . . . He said that the Owner's Participation Agreement did not specify the exact amount of development that would occur but required that College Parkway Associates improve 384,000 square feet of land and develop it with buildings. He said that to date, College Parkway Associates has improved 628,100 square feet of land and developed 311,000 square feet of it with buildings. RECOMMENDATION: The Committee recommended that the item be forwarded to the Commission meeting of December 4, 1989. 1. Contract with Dukes & Dukes Associates for a Long Term use, Management and Implementation Plan to develop the Public Enterprise Center. Mr. Robert J. Temple said that on February 6, 1989, the Commission approved the development of a long-term use, management and renovation plan for the PEC and the formation of a Citizens Advisory Committee/Task Force to assist on the preparation of plans. He said that on July 19, 1989, after much consultation with the task force, the Agency invited fifty-one (51) consultants to submit proposals to develop a plan for the PEC. He said that staff also ran ads in the local newspapers. He said that only one consultant, Dukes & Dukes Associates, submitted a proposal. He stated that on October 24, 1989 Agency staff and the Committee/Task Force interviewed Dukes & Dukes Associates and that based upon their written proposal and the interview process, they recommended that the Agency contract with Dukes & Dukes Associates to analyze the long term use of the PEC. Committee Member Flores asked if Dukes & Dukes Associates had experience in the small business incubator field. John Hoeger, Development Manager, said that Dukes & Dukes Associates did not have "hands on" experience in small business incubators. CHAIRWOMAN ESTRADA ARRIVED. A lengthy discussion ensued regarding Dukes & Dukes Associates' lack of experience in small business incubators. - . .J<- RECOMMENDATION: The Committee recommended that the item be forwarded to the Commission meeting of December 4, 1989, without a recommendation. 2 November 22, 1989 1899R , e e ........ tit . . . . 2. Chart of Accounts Computer Programming Ms. Barbara Lindseth, Accounting Manager, said that on June 19, 1989 the Community Development Commission approved a Resolution authorizing the Agency to continue expenditures at the budgeted level for the 1988-89 fiscal year, pending approval of the 1989-90 budget. She said that the accounting staff has implemented the recommendations submitted last year by the Agency's auditors and has converted to the governmental fund accounting system, but due to restrictions in the structure of the current data processing computer program chart of accounts the funds have to be monitored manually. She said that the cost of the proposed computer programming is 58,500.00 and the development time for the computer program is estimated by ICes Corporation to be 5 to 6 weeks. She said that in the 1989-90 budget for the accounting division, 510,000 has been recommended under consultants for the development of computer software for the modification of the chart of accounts and the computerization of the governmental fund system of accounting. RECOMMENDATION: The Committee recommended that the item be forwarded to the Commission meeting of December 4, 1989. 3. Auto Plaza - Friedlander OPA Mr. Temple said that the purpose of the staff report was to inform the Committee as to the status of the Friedlander OPA in particular and to provide an opportunity for discussion of operating procedures in general. He said that on July 8, 1988 the Agency served a Notice of Default on Mr. Friedlander for his failure to develop an automobile dealership on Parcel 6 in the Auto Plaza. He said that on February 6, 1989 the Commission authorized an agreement that resolved the default. He explained that although construction has proceeded and is continuing, the dealership was not ready for occupancy on November 1st. He said that to secure performance, Mr. Friedlander provided a deposit of 575,000 and that pursuant to the terms of the agreement he received two refunds of 525,000 each when he met the first two performance dates. He said that the Agency currently holds the remaining $25,000. He said that according to the agreement the Executive Director is authorized to execute a Certificat~ of Completion when it is appropriate. He said that the dealership is expect~ to be completed by January 15th, 75 days late and that under the terms of the OPA, Mr. Friedlander may receive credits for delays of certain types. RECOMMENDATION: For discussion only. No recommendation, no action. 3 November 22, 1989 l899R e e ......;- e . . . . 4. Neighborhood Spirit Mr. Temple stated that the staff report was to provide an update on the status of staff's efforts to finalize the Neighborhood Spirit Program procedures and guidelines. He said that on October 5, 1989, the Committee continued this item, and requested that staff coordinate additional input and recommendations from affected City departments. Mr. Temple said that Agency staff had met with Mr. Ken Henderson, Director of Community Development Department, earlier in the day to discuss the detailed comments from special legal counsel in a letter, dated November 6, 1989. He said that the letter specifically examines the program components and the affordable housing objectives set forth by the Community Redevelopment Law. He said that as a result of the meeting staff was not ready to come back with a joint recommendation due to some logistics that needed to be worked out. A lengthy discussion ensued including a reminder to staff to be conservative in their use of Special Counsel. RECOMMENDAT ION: For discussion only. No recommendation and no action. 6. Set Biennial Public Hearing Mr. Temple said that Health and Safety Code Section 33848.5 requires that all cities with a population exceeding 75,000 persons conduct Biennial Public Hearings on their Redevelopment Plans. He said that the hearing is held for the purpose of reviewing and evaluating all Redevelopment Plans and for giving the public an opportunity to make public comments. He said that the last hearing was conducted on December 21, 1987 following the close of the fiscal year 1986-87. He said that it is appropriate to set a public hearing to review and evaluate the plans as of the close of the fiscal year 1988-89. He said that the 1989 annual report and audited statements are expected to be available for the hearing. RECOMMENDATION: The Committee recommended that the public hearing be set for January 8, 1990. Also that the item be forwarded to the Commission meeting of December 4, 1989. - . ...... 4 November 22, 1989 l899R e e ...~ e . . . . 7. Central City Promenade - IDB Mr. Temple said that on December 1984, the Central City Promenade Industrial Development Bonds (IDB) were issued in the amount of $7,200,000 with a maturity date of December 1, 2024 and that Chase Manhattan Bank, the sole purchaser of the Bonds, has exercised its right to cause a mandatory redemption of the Bonds on December 1, 1989, pursuant to Section 3.01 (d) of the Trust Indenture dated December 15, 1984. He said that on November 7, 1989, Mr. Arlene Gunner, the attorney for Central City Promenade, contacted Stradling, Yocca, Carlson and Rauth, the Agency's counsel, and stated that Chase Manhattan Bank was willing to extend the due date on the Bonds past the mandatory redemption date of December I, 1989. He said that Mr. Gunner also believed that the City needed not be a party to this extension, but in the opinion of the Agency's Special Counsel the City must approve changes to the Trust Indenture and amend the Loan Agreement. He said that late on November 20, 1989, the Agency's counsel contacted the Agency and informed staff that to extend the due date on the Bonds, a City Council action must take place prior to December 1, 1989. He said that since the Commission does not meet before the end of the month, staff is seeking Committee direction as to whether a special Commission meeting prior to December 1, 1989 may be scheduled. RECOMMENDATION: The Committee recommended that a Special Meeting be set for November 30, 1989, at 3:00 p.m. 8. CONTINUED FROM NOVEMBER 9, 1989 Loan Payoff Northwest Shopping Center Ms. Barbara Lindseth, Accounting Manager stated that on November 9, 1989, the Committee requested that staff bring back the staff report with more detailed information. Mr. Temple said that a total of $1,300,000 was borrowed from First Interstate with monthly payments to be made until February 20, 1994 when the loan is due in full. He said that the monthly payments of principal ($12,500~ plus variable interest have been paid by the Agency since February 20, 1987 ~ and the current principal balance is $875,000. He said that because the interest rate on the unpaid principal balance was at the rate of one-half of one percent per annum in excess of the Bank's Prime Rate, which has been as high as 12%, that he was recommending that the loan be retired before the maturity date. He explained that the loan with First Interstate Bank requires that the Agency maintain a compensating balance of 5% in the checking account and unreserved fund balances of not less than $75,000,000, which had been maintained by the now defeased Mortgage Revenue Bonds. He said that staff had prepared for their review a monthly listing of the Bank's Prime Rate since February 1987 and the corresponding interest expenses, the declining principal balance and the estimated interest earned. 5 November 22, 1989 l899R . . .."..;....- . . . . . RECOMMENDATION: The Committee recommended that the item be forwarded to the Commission meeting of December 4, 1989. 9. Eminent Domain proceedings - Wade Parcel Mr. Temple said that a firm was selected to perform an appraisal on the property, and based on the report submitted to staff, the property was appraised at $275,000. He said that the next step, per Government Code Section 7267.2, is to make a formal offer to the owners of the property. He explained that whether or not the formal offer is accepted, a Public Hearing must be held to consider adoption of a Resolution of Necessity. He explained that the purpose of the resolution is to set out the proposed use of the property being acquired and to justify an eminent domain action as necessary to the development within the redevelopment project area. RECOMMENDATION: The Committee recommended that the Public Hearing be set for Monday, January 8, 1989. Also that the item be forwarded to the Commission meeting of December 4, 1989. 10. RDA Workshop Date - Discussion Only Mr. Temple said that Chairman Holcomb had suggested that a workshop be set up for the purpose of reviewing financial uses for the proceeds of the recent refinanced bonds. He said that the workshop would be somewhat similar to the recent redevelopment seminar that some members of the Commission had previously attended. He said that Chairman Holcomb would like to have a one day workshop from 9:00 a.m. to 4:00 p.m. and the recommended days are as follows: December 13, December 14, and/or January 10, January 24. Committee Member Maudsley suggested that the workshop dates be set on January 17 or January 31. Chairwoman Estrada said that she preferred that the workshop be scheduled_ outside the City of San Bernardino. ~ RECOMMENDATION: For discussion only. No recommendation. No action. CLOSED SESSION Pursuant to Government Code Section 54956.9(c) the Redevelopment Committee of the Redevelopment Agency of the City of San Bernardino convened in closed session to discuss possible litigation at 5:30 p.m. The Redevelopment Committee reconvened from closed session at 6:00 p.m. 6 November 22, 1989 l899R . . Adjournment . . . There being no further business, the meeting of November 22, 1989, was adjourned at 6:00 p.m. & ~Y;~ sther Estrada, Chairwoman Redevelopment Committee . .".,... . 7 November 22, 1989 1899R . - ~