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Home My WebLink AboutRS02-Economic Development Agency o o ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION From: TIMOTHY C. STEINHAUS Agency Administrator Subject: SET PUBUC HEARING FOR HOLmA Y OLDSMOBILE LAND ACQUISmON Date: September 29,1994 Svnoosis of Previous Commissioo/CouocillCommittee Actioo(s): On September 8, 1994, the Redevelopment Committee conceptoa1ly approved the deal points associated with the land acquisitioo for Holiday Oldamobile. Recommeoded Motion(s): (Communitv Develooment Commission) MOTION: That the Commuuity Development Commission set November in the City Council Chambers as the date, time and place to consider the disposition of property to Holiday Oldamobile. TIM C. STEINHAUS Agency Administrator Contact Person(s): Timothv C. Steinhaus Phone: 5081 Project Area(s): All Ward(s): --1- Supporting Data Attached: StaffReoort. FUNDING REQUIREMENTS: Amount: $0.000.000 Source: N/A Budget Authority: N/A Commission/Council Notes: TCS:SMM:pc:hololds.dsp COMMISSION MEETING AGENDA Meeting Date: 10/03/1994 Agenda Item Number: ~ ' 2- o o ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STAFF REPORT Holidav Oldsmobile Land Acauisition In accordance with the Redevelopment Committee action on September 8, 1994, it is appropriate that the Commission hold a public hearing to consider the disposition of the Holiday Oldsmobile property at 1388 South "E" Street. It is recommended that the public hearing be held on November 7, 1994, at 11 :00 a.m., in the City of San Bernardino Council Chambers. This action enables staff to follow through with the recommendation made by the Redevelopment Committee and to prepare the necessary documents which will be available for review prior to the public hearing. ends adoption of the form motion. TIMO C. TEINHAUS, Agency Administrator Economic Development Agency TCS:SMM:pc:hololds.dsp COMMISSION MEETING AGENDA Meeting Date: 10/03/1994 Agenda Item Number: --l5" 1" o o berDEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY REQUEST FOR COMMISSION/COUNCIL ACTION From: KENNETHJ.HENDERSON Executive Director Subject: FINANCIAL ASSISTANCE FOR THE NORMAN MANOR PROJECT Date: September 29, 1994 SvnoDsls of Previous CommIssion/Council/Committee Actlon{s): On September 15, 1994, the Community Development Commission denied loan approval of a loan agreement with William H. Cooper at 488 W. 17thth and 1749 North "E" Street. Recommended Motlon{s): (CommunIty DeveloDment CommIssion) MOTION: That the Community Development Commission approve an Owner Participation Agreement/Loan with William H. Cooper for the housing project located at 488 West 17th Street and 1749 North "E" Street, and further authorize the Executive . 0 draft and execute all necessary documents. !i~"u. ~/'J.~ '71/ !" KENNETHJ.HENDERSON Executive Director Contact Person(s): TImothv Steinhaus/Barbara Lindseth Project Area(s): Uptown Supporting Data Attached: FUNDING REQUIREMENTS: Amount: $ Phone: 5081 Ward(s): Second (2\ Source: Low/mod Budget Authority: Requested Commission/Council Notes: TCS:BJL:NMANOR.CDC(dle) COMMISSION MEETING AGENDA Meeting Date: 10/03/1994 Agenda Item Number:,$.2-- ~ , o o , ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION From: TIMOTHY C. STEINHAUS Agency Administrator Subject: HOLIDAY OLDSMOBILE LAND ACQUlSmON Date: September 29, 1994 Svnonsis of Previous Commission/Council/Committee ActionCs): On September 8, 1994, the Redevelopment Committee recommended that the Commwrity Development Commission approve the proposed deal points associated with the land acquisition between Holidsy Oldsmobile and the City of Riverside. Recommended MotionCs): Develo ment Commls MOTION: For discussion in Closed Session. C. STEINHAUS Agency Administrator Contsct Person(s): Timothv C. Steinhaus Phone: 5081 Project Area(s): All Ward(s): -L Supporting Data Attached: StaffRepOlt. FUNDING REQUIREMENTS: Amount: $351.000 Source: Tax Increment Budget Authority: Reouested Commission/Councll Notes: TCS:SMM:pc:hololds.acq COMMISSION MEETING AGENDA Meeting Date: 10/03/1994 Agenda Item Number: LS - ;;2. o o ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STAFF REPORT HoBdav Oldsmobile Land Acquisition The PlllJXlSC of this SlBffReport is to request that the Commission approve the proposed deal points associated with the land acquisition between Holiday Oldsmobile and the City of Riverside. Holiday Oldsmobile (Holiday Olds) currently leases the property at 1388 South "E"Street. The subject property is presently owned by the City of Riverside and leased to Holiday aids. Separate from this item, the Commission will consider setting a public hearing for November 7, 1994, at II :00 a.m., in the Council Chambers to approve the disposition of property to Holiday aids. Previously, the Ai,ency and the City of Riverside jointly commissioned an appraisal by Schooler & Associates. The report valued the property at $2,623,600.00. The City of Riverside was previously only interested in exchanging property that would be contiguous to existing land holdings; however, they have recently agreed to sell the property through the San Bernardino Economic Development Agency (BDA) at the appraised value. Holiday aids will pay $500,000 cash down payment and obtain financing in the amount of $1,772,600 as a first deed of trust, which leaves a gsp of$351,000 in the purchase price. Holiday aids has requested that the San Bernardino EDA contribute the $351,000 in order to cause the escrow to close. It is important to note that the subject property is not located within a San Bernardino Redevelopment Project Area, but is within the jwisdiction of the Inland Valley Development Agency (IVDA) Redevelopment Project Area. On September 28, 1994, Mayor Tom Minor discussed with the IVDA a proposal that provides for the EDA to enter into a cooperation agreement with the IVDA for the tax increment revenues of the Holiday aids site. This agreement will be similar to the Low-Mod cooperation agreement between the Agency and the IVDA. The IVDA shal1 give the EDA the power and authority to negotiate with Holiday aIds and use the tax increment revenues to further redevelopment powers at the Holiday OIds site. Furthermore, it is proposed that the City of Riverside sell the property to the EDA under a sale and purchase agreement at the appraised value of2,623,600.oo. The EDA would then simultaneously sell the property to Holiday aIds for the same price and loan $351,000 at 8% interest to Holiday aids. Holiday aids has agreed to execute a ten-year operating covenant with the San Bernardino EDA and committing to repay the $351,000 amount through a ten percent (10%) forgiveness provision for the benefit of the San Bernardino EDA. Ten percent (10%) of the amount of such note will be forgiven each year that Holiday Olds remains in operation within the City of San Bernardino and produces sale tax revenues to the City. In the event Holidays aids ceases operations or relocates from the City, Holiday Olds will owe to the San Bernardino EDA the unamortized amount of said loan. At the end often (10) years, the full $351,000 will be forgiven provided that Holiday Olds has remained in operation within the City of San Bernardino during said time period. TCS:SMM:pc:hololds.acq COMMISSION MEETING AGENDA Meeting Date: 10/03/1994 Agenda Item Number: _ ; o o Holiday Oldsmoblle Land AcquIsition Staff Report October 3, 1994 Page Two Holiday Olds has been a valuable member of our community for many years. The dealerMip employs 60 people and will provide San B . 0 with approximately $28,000 in annual property taxes, $220,000 in retail salcs tax and $7,400.00 per year in util' TIMOTHY C. S US, Agency AdminIstrator Economic Development Agency TCS:SMM:pc:hololds.acq COMMISSION MEETING AGENDA Meeting Date: 10/03/1994 Agenda Item Number: _