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HomeMy WebLinkAboutR02-Minutes , I o o c o o REDEVELOPMENT COMMI'ITEE MINUTES REGULAR MEETING August 4, 1994 3:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Pope- Ludlam at 3:07 p.m., in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino, Califomia. ROLL CALL Roll call was taken with the following members present: Chairwoman Valerie Pope-Ludlam; Committee Members Edward Negrete; Ralph Hernandez. Also present was Mayor Tom Minor. STAFF PRESENT Stafford W. Parker, Deputy Director, Development Department; Susan Morales, Assistanlto the Agency Administrator; Emily Wong, Project Manager, Development Department; Phil Arvizo, Executive Assistant to the Council; Lorraine Velarde, Executive Assistant to the Mayor; Ray Salvador, Assistant to the Mayor; Dennis Barlow, Senior Assistant City Attomey; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Graham Witherall, The Sun Newspaper; Michael Blatnick, Easter Seals; Timothy Sabo, Agency Counsel, Sabo and Green. 1. CONSIDERATION OF VARIOUS COMMUNITY ORGANIZATION REQUESTS FOR CITY FUNDING Stafford W. Parker, Deputy Director, Development Department, gave a brief summary on various organization which were recommended for contingent approval by the Community Development Commission Citizens Advisory Committee (CDCAC). He also commented on efforts being made to reopen Bethlehem House by an organization located in Riverside. Chairwoman Pope-Ludlam recommended funding Bethlehem House with 20% set-aside funds. Timothy Sabo. Agency Counsel. Saba & Green. stated that since Bethlehem H ollse docs 1I0t provide permanent housing, 20% set-aside funds could not be used: however, the Committee could consider using 80% funds. REGULAR MEETING Imp:rminaug.942 REDEVELOPMENT COMMITTEE August 4 , 1994 -1- 2 o o c o o . Emily Wong, Project Manager, Development Department, spoke of the amount of funds available for reprogramming to other projects. Discussion ensued regarding the amount of funds needed to assist Bethlehem House, and other projects in need of immediate funding. RECOMMENDATION The Redevelopment Commillee recommended this item be continued until September 22, 1994. 2. FRERWAYHOMECENTER Stafford W. Parker, Deputy Director, Development Department, indicated that the bank was currently reviewing the loan for the Freeway Home Center which was contingent upon an appraisal of the property. Chairwoman Pope-Ludlam believed the property was previously appraised at approximately $4,150,000. The Commillee Members commented on personal information requested by Valley Bank from Allan Steward, Steward and Associates. Allan Steward, Steward and Associates, commented on his personal assets and his net worth, indicating that he had more than enough assets to cover the Agency's loan guarantee. He indicated that he would rehabilite the center sixty (60) days after escrow closed. CommiUee Member Hernandez questioned the status of this project if Mr. Steward was convicted of bribery. Timothy Sabo, Special Counsel. Sabo & Green, indicated that the Agency was relying on the expertise of Steward and Associates and not just Allan Steward. He also indicated that the collateral for the loan would cover the Agency's loss in the event Steward and Associates defaulted on its loan. Commillee Member Negrete questioned the Agency's position if the loan was defaulted. Mr. Sabo stated that the Agency may be in a second or third position on the loan. Discussion ensued regarding the vacancy rate at the Freeway Home Center and its need for immediate improvements. Commission Member Hernandez spoke of the negative publicity being given to Mr. Steward regarding this project and othe". Mr. Steward emphasized that he had heen hJ.Volved in. over $22 million worth of projects. REGULAR MEETING InIP:rminaug.942 REDEVELOPMENT COMMITTEE August 4 , 1994 -2- 2 o o o o o RECOMMENDATION The Commillee recommended this item be brought back to the Redevelopment Committee with the final documents at its next regular meeting. NB-l CIVIC LIGHT OPERA Committee Member Hernandez made a motion, seconded by Committee Member Negrete, that the immediate need to take action on tWs item arose after the posting of the agenda. Motion carried by the following vote: Ayes: Chairwoman Pope-Ludlam; Committee Members Negrete; Hernandez. Commillee Member Hernandez questioned the closing date for escrow on the California Theater. Timothy Sabo, Agency Counsel, Sabo & Green, indicated that the loan should close within a week after additional fmancing matters were cleared. RECOMMENDATION The Committee directed staff to prepare an RFQ for management of the theater for staff and Commission review, and to bring the RFQ to the next Commission meeting. 3. ADJOURNMENT There being no further business, the meeting of the Redevelopment Committee was adjourned at 3:52 p.m. APPROVED BY: VALERIE POPE-LUDLAM, Chairwoman Redevelopment Committee REGULAR MEETING Imp:rminaug.942 REDEVELOPMENT COMMITTEE August 4 , 1994 -3- l o o c o o REDEVELOPMENT COMMrITEE MINUTES SPECIAL MEETING August 25, 1994 3:00 p.m. The special meeting of the Redevelopmeut Committee was called to order by Chairwoml,\ll Pope- Ludlam at 3:05 p.m., in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following members present: Chairwoman Valerie Pope-Ludlam; Committee Member Ralph Hernandez. Also present was Mayor Tom Minor. Absent: Committee Member Negrete. STAFF PRESENT Kenneth J. Henderson, Executive Director, Development Department; Susan Morales, Assistanlto the Agency Administrator; Timothy Sabo, Agency Counsel, Sabo and Green; Phil Arvizo, Executive Assistant to the Council; Lorraine Velarde, Executive Assistant to the Mayor; Ray Salvador, Assistant 10 the Mayor; Dennis Barlow, Senior Assistant City Attomey; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Bob Lewis, Big Red Apple; Susan Marshall, Big Red Apple; Sam Watson, Inland Plaza; Leonard Porzio, Inland Plaza; Victor P. Dhooge, Miller & Schroeder; J. Robert Maddux, JRM & Associates. 2. INLAND PLAZA - INDUSTRIAL DEVELOPMENT BOND REFINANCING Timothy C. Steinhaus, Administrator, Economic Development Agency indicated that this project was originally completed in the 1980's with an industrial bond. He stated several months ago, the Council approved a refinancing of the bonds for 18 months. Mr. Steinhaus stated that after months of review, the owners of Inland Plaza felt that extension and refmancing of the bonds was not sufficient and requested a different fmancing option. Discussion ensued regarding various financiDg options through Miller & Schroeder and a loan guarantee from the Agency. Committee Member Hernandez questioned whetl~.er or not the Agency would be setting a precedence SPECIAL MEETING Imp:rminaug.942 REDEVELOPMENT COMMI'ITEE August 25 , 1994 -1- L o o c o o by placing a guarantee on a bond issue. Timothy Sabo, Agency Counsel, Sabo & Green, believed that the Agency would not be selling a precedence by guaranteeing a bond and that the Agency risk would remain the same. He indicated that the bonds would be for a term of 25 years. Victor Dhooge, Miller & Schroeder, commented on the need for the Agency to guarantee the bonds requested by Inland Plaza. He explained the terms of the bond, the loan guarantee, the debt service and the rental mtes paid by the tenants. He indicated that personal guarantees would be requested from the owners of the plaza. Sam Watson, Inland Plaza, commented on the success of the center and the proposed rental lease for an additional 10,000 square feel. He stated that the property was appraised at $3.8 million and that the requested Agency loan guarantee was for $2.2 million. Mr. Steinhaus stated that the Agency currently has $19 million in loan guarantees. RECOMMENDATION The Redevelopment Commillee recommended this item to the Community Development Commission for conceptual approval. NB-l. COMMUNITY HOSPITAL Commission Member Hernandez made a motion, seconded by Chairwoman Pope-Ludlam, that the need to take immediate action on this item arose after the posting of the Agenda. Motion carried by the following vote: Ayes: Chairwoman Pope-Ludlam; ConuniUee Member Hernandez. Absent: Commillee Member Negrete. Chairwoman Pope- Ludlam briefed the Commillee on discussions taking place with directors of Ihe hospital regarding fmancing for the proposed medical center. Kenneth J. Henderson, Executive Director, Development Department, commented on discussions he held with hospital staff regarding a guarantee to the hospital from the Agency for fmancing in the event current financing options are nol utilized. He explained that the hospitals current fmancing option grants them six (6) months free renl before loan payments begin. Chairwoman Pope-Ludlam stated that the loan amount for $1.25 million may not be sufficient for completion of the medical center; therefore, the hospital would like the Agency to commit to a loan amount equal to the $1.25 million in the event the funds are needed. Discussion ensued regarding the need ror tbe Agency to commit to a loan fnr the hospital when il has already received conceptual approval or a loan from au.etber financial institution. Mr. Henderson emphasized that the loan documents were to be signed no later fuaD. temorrow, August 26, 1994. SPECIAL MEETING Imp:rminaug.942 REDEVELOPMENTCO~E August 25 , 1994 .2- l o o c . o o RECOMMENDATION The Redevelopment Committee recommended this item be received and med. l. CALIFORNIA THEATER - REVIEW AND APPROVAL OF REOUFBT FOR OlJALIFlCA TIONSIPROPOSA I .C:; SOLICITING THEA TF..R MANAGER Kenneth J. Henderson, Executive Director, Development Department, discussed this issue commenting on the concerns expressed regarding the preliminary RFQ. He stated that he spoke with Committee Member Hernandez and Susan FeUar, Inland Empire Symphony, regarding changes to the RFQ before submittal. Committee Member Hernandez stated that the Building and Safety Department should survey the building to ensure its safety. Mr. Henderson stated that the building had been surveyed and that a list was being prepared regarding the safety hazards in the building. Bob Lewis, Big Red Apple, stated that his company was currently located at the Orange Show and that he would like to be considered for the management position at the theater. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained the RFQ proccss and informed Mr. Lewis that he would receive an application when the RFQ was complete. RECOMMENDATION The Redevelopment Committee recommended this item to the Community Development Commission on September 6. 1994. 3. ADJOURNMENT There being no further business, the meeting of the Redevelopment Committee was adjourned at 3:55 p.m. APPROVED BY: VALERIE POPE-LUDLAM. Chairwoman Redevelopment Committee SPECIAL MEETING Imp:rminaug.942 REDEVELOPMENT COMMITTEE August 2S , 1994 -3- Z- o o c o o REDEVELOPMENT COMMITfEE MINUTES REGULAR MEETING September 8, 1994 3:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwoman Pope- Ludlam at 3:05 p.m., in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following members present: Chairwoman Valerie Pope-Ludlam; Committee Members Edward Negrete; Ralph Hernandez. Also present was Mayor Tom Minor. STAFF PRESENT Timothy C. Steinhaus, Administmtor, Econornic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Timothy Saba, Agency Counsel, Saba and Green; Phil Arvizo, Executive Assistant to the Council; Dennis Barlow, Senior Assistant City Attorney; La Vonda M- Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Jon Shultz, Holiday Oldsmobile; Richard Brooks, The Sun Newspaper. 1. HOLIDAY OLDSMOBn.F.. LAND ACQUISITION Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item was mistakenly listed as a closed session item, and that it would be discussed in open session. Mr. Steinhaus indicated that the Holiday Oldsmobile car dealership sat on leased land owned by Riverside. He explained that Riverside agreed to sell the property to the Agency for $2.6 million, the appraised value. He stated that the Agency would like to assist the dealership with purchasing the land in order to retain them in the City of San Bernardino. Mr. Steinhaus explained that Holiday Oldsmobile agreed to pay $2.3 million for the property which left a $300,000 gap between this and the purchased am,mut. He suggested that since the property was located in the Inland Valley Development Agency (IVDA) project area, that the Agency loan the $300.0IXl to IVDA and IVDA place that amount in escrow for purchase of the property. In return for those funds. the dealership agrees to stay in the City for \() years. The amount loaned to IVDA would be repayed in tax increment funds. REGULAR MEETING Imp:rminsep.941 REDEVELOPMENT COMMITI'EE September 8, 1994 -1- :L , l""..~" o o o o o Timothy Sabo, Agency Counsel, Sabo & Green, explained the terms of the loan and the actual value of the property. He indicated that the Agency would like to present these terms to the Commission before discussing with IVDA. Jon Shultz, Holiday Oldsmobile, thanked the Agency for its assistance with this matter. He spoke of his commitment to the City of San Bernardino and commented on the business of Holiday Oldsmobile and its contribution to the City. RECOMMENDA nON The Redevelopment Committee recommended conceptual approval of this item to the COJll1llunity Development Commission. 2. ADJOURNMENT There being no further business, the meeting of the Redevelopment Committee was adjourned at 3:20 p.m. APPROVED BY: VALERIE POPE.LUDLAM, Chairwoman Redevelopment Committee REGULAR MEETING Imp:rminsep.941 REDEVELOPMENT COMMITTEE September 8, 1994 -2- l o o c o o REDEVELOPMENT COMMITTEE MINUTES REGULAR MEETING September 29, 1994 3:00 p.m. The regular meeting of the Redevelopment Committee was called to order by Chairwollllll1 Pope- Ludlam at 3:09 p.m., in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino. California. ROLL CALL Roll call was taken with the following members present: Chairwoman Valerie Pope-Ludlam; Committee Members Edward Negrete; Ralph Hernandez. Also present was Mayor Tom Minor. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Stafford W. Parker, Deputy Director; John Wood, Project Manager, Development Department; Barbara Lindseth, Administrative Services, Development Department; Timothy Sabo, Agency Counsel, Sabo and Green; Phil Arvizo, Executive Assistant to the Council; Dennis Barlow, Senior Assistant City Attorney; La V onda M- Pearson. Recording Secretary. Development Department. OTIlRRS IN ATTENDANCE Rhonda Connolly, Miller & Schroeder; Sam Watson, Inland Plaza. 1. INLAND PLAZA INDUSTRIAL DEVELOPMENT BOND REFINANCING Timothy C. Steinhaus, Administrator, Econoruic Development Agency, briefed the Committee on previous discussions related to this item. He explained that on September 19, 1994, the Community Development Commission referred this matter back to the Redevelopment Committee to discuss additional information regarding the plaza. John Wood, Project Manager, Development Department, made comments regarding the success of Inland Plaza which was built in 1983. He spoke of the difficult time the plaza was having refmancing its bonds due to the current economy. He slated that Miller & Schroeder believed they could refinance the original bond issue with a stand-by loan from the Agency. Rhonda Connolly. Miller & SchJocder. spoke of tr.e terms of the bond refinancing indicating that the Agency would only need to guamntee thc bonds. REGULAR MEETING Imp:rminsep.94r REDEVELOPMENT COMMITTEE September 29, 1994 -1- 2. o c c o o Mr. Wood stated that the current occupancy rate at the plaza including the warehouse space was sixty-five percent (65%). Sam Watson, Inland Plaza, explained that the plaza's occupancy rate was seventy-five percent (75%) excluding the space for warehouse. Chairwoman Pope-Ludlam commented on the property being located on leased land. Mr. Wood clarified that the appraisal done on the property was completed in 1993 and not 1983 as indicated in the staff report. He said that the property was appraised at $3.8 million. Timothy Sabo, Agency Counsel, Sabo & Green, explained that there would be no capital gain on this project. Discussion ensued regarding the banks concern about projects located on leased land. RECOMMENDATION The Redevelopment Committee recommended approval of this item to the Community Development Commission. 2. ADJOURNMENT There being no further business, the meeting of the Redevelopment Committee was adjourned at 3:25 p.m. APPROVED BY: VALERIE POPE-LUDLAM, Chairwoman Redevelopment Committee REGULAR MEETING Imp:rminsep.94r REDEVELOPMENT COMMI'ITEE September 29, 1994 .2. l