HomeMy WebLinkAboutR06-Economic Development Agency
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DBV'BLOPIIDT DBPhDUil'll: OF rBB
CIn OF SAIl BBIlDIDIBO
UOUEST FOR CCMlISSIOII/C01llICIL AeTIOR
From: KENNETH J. HENDERSON
Executive Director
Subject:
CDBG FLOAT LOAII FOR SHOPPING
IAU".rJl;~ AT BASELIlIfE STREET AlIfD
IIIDICAL ~UK DRIVE.
Date: February II, 1991
Synopsis of Previous ComBissiODlCouncil/CaaBittee Action:
On February 29, 1988, the Mayor and Common Council adopted a resolution requesting
that the County of San Bernardino loan a portion of its Community Development Block
Grant for development of a shopping center at Baseline Street and Medical Center
Drive.
On July 8, 1988, the Mayor and Common Council, at an adjourned regular meeting,
set a date for the conducting of a CDBG public hearing for shopping center at
Baseline Street and Medical Center Drive.
On February 7, 1991, the Redevelopment Committee recommended approval of reducing
CDBG float loan.
Recommended Ration:
(Mayor and C~n Council)
THAT rBB IlAYOR A1ID COIItIlII COUllCIL APPROVE A RBSOLUTIOR RlDUCIltG rBB CDBG FLOAT LOAN
COI'TRIBUTIOR FROM $1,250,000 TO $450,000, SDBSTITUTIltG JEW FROI'TIER COMMERCIAL
PROPERTIES, IRC., CIIA1IGIltG rBB lWIE OF rBB DBV'BLOPIIDT PROJECT FROM WEST SIDE
SHOPPIRC CII'TIR TO WEST SIDE PLAZA A1ID RBPEALII'G RBSOLUTIOR 188-287.
.t.AIUUiUl ~e~, Iltecutive Director
Development Departllent
Contact Person: Ken Henderson/Ezell James
Phone: 5065/5081
Project Area: Northwest
Ward(s): 6
Supporting Data Attached: Staff ReDort
FUNDING REQUIREMENTS:
Amount: $450.000
Source: BUD Letter of Credit
Budget Authority:
. CaaBissiODlCouncil Rotes:
EJ:kak:36l0H:
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Agenda Its 1'0.
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DBVELOPIIDT DBP~r
SrAFF REPORT
CDBG Float Loan for ShoPP1D& Cmter
at Baseline .nd Medieal Cmter Drive
On July 27, 1988, the Mayor and Common Couneil approved a CDBG float loan in
an amount not to exeeed $1,250,000 to Alexander Haagen Development
Corporation. The purpose of the loan was for the eonstruetion and
development of the West Side Shopping Center, loeated at the eorner of
Baseline Street and Medical Center Drive.
After three (3) years of fruitless negotiations, eombined with the inability
of the developer in seeuring an anchor tenant, the Development Department,
on Oetober 2, 1989, reeeived a letter from Mr. Haagen, indicating that he
would no longer be involved in the development of the center. As a result
of this aetion, the City solicited new proposals from interested developers,
and subsequently, selected New Frontier Commercial Properties to develop the
Shopping center.
During negotiations with New Frontier, staff was able to substantially
reduce the amount of CDBG funds required for the project from $1,250,000 to
$450,000. Staff is now requesting that the Mayor and Common Council approve
a resolution reducing the CDBG float loan contribution from $1,250,000 to
$450,000, substituting New Frontier Commercial Properties, Inc., for
Alexander Haagen Development Corporation as the developer of record,
changing the name of the development project from West Side Shopping Center
to West Side Plaza and repealing Resolution #88-287.
Staff recommends adoption of the form motion.
~~Oll. becutbe Direetor
Developmmt Departamt
~:EJ:tsk:36l0B
COMMISSIOII MBETIIIG
Meeting Date: 2-18-91
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RESOLUTION NO.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO APPROVING A LOAN OF A PORTION OF INTERIM COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS FOR THE BASELINE/MEDICAL CENTER
DRIVE PROJECT.
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WHEREAS, there is proposed a development in the City of San
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Bernardino known as the West Side Plaza; and
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WHEREAS, such development is critical to the economic
improvement of the west side of the City of San Bernardino; and
WHEREAS, in developing said project there is a need for
additional financing; and
WHEREAS, the Community Development Block Grant Fund loan
program may be used for such development financing;
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NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1.
The City of San Bernardino hereby approves a
Community Development Block Grant Fund loan in an amount not to
exceed $450,000 for a term of four (4) years at an interest rate
of zero percent (0%) to San Bernardino Redevelopment Agency for
the construction of the shopping center to be developed at
Baseline Street and Medical Center Drive in a cooperative effort
with New Frontier Commercial Properties, Inc. to provide economic
improvements to the west side of the City of San Bernardino.
SECTION 2. Resolution No. 88-287 is hereby repealed.
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DAB/ses/Project.res
February 11, 1991
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RESOLUTION...APPROVING A LOAN...FOR THE BASELINE/MEDICAL
CENTER DRIVE PROJECT.
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I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeting thereof, held on the
, 1991, by the following vote, to wit:
day of
7
Council Members:
AYES
NAYS
ABSTAIN
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ESTRADA
REILLY
FLORES
MAUDSLEY
MINOR
POPE-LUDLAM
MILLER
City Clerk
The foregoing resolution is hereby approved this
day
of
, 1991.
Approved as to
form and legal content:
W. R. Holcomb, Mayor
City of San Bernardino
JAMES F. PENMAN,
City Attorney
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DAB/ses/Project.res
February 11, 1991
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