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ECONOMIC DEVELOPMENT AGENCY
OF TIlE CITY OF SAN BERl!lARDINO
REOUEST FOR COMMISSION/COUNCIL ACTION
From:
Barbara J. Lindseth
Acting Director
Subject: ARROWHEAD HEALTH CARE
SYSTEM
Date:
December IS, 1994
SYnopsis of Previous Commission/Council/Committee Action(s}:
On February 22, 1993, the Community Development Commission approved in
concept a $8.6 million loan guarantee for Arrowhead Health Care System
for the purpose of developing a professional office building.
On November IS, 1993, the Community Development Commission approved an
Agency loan guarantee related to the construction of a professional
office building.
Recommended Motion(s}:
(Communitv Develonment Commission)
MOTION:
That the Community Development Commission authorize
further negotiations between the Economic Development
Agency and Arrowhead Health Care System in connection
with the guarantee/purchase of a certain loan in an
amount not to exceed $9.4 million and that a public
hearing be set for January 9, 1995 at 11:00 a.m.
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Administrator
b"" ~o.= c-y ~j:..- t(
Barbara J. Lindseth
Acting Director
Contact Person(s): Tim Steinhaus
Phone:
5081
Project Area(s): Northwest (NW)
Ward(s):
Sixth
Supporting Data Attached:
Staff ReDort
FUNDING REQUIREMENTS:
Amount: $
Source:
N/A
N/A
Budget Authority:
N/A
Commission/Council Notes:
BJL:1985A
COMMISSION MEETING AGENDA
Meeting Date: 12/19/1994
Agenda Item Number: Il2- /
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
Arrowhead Health Care Svstem
On February 22, 1993, the Community Development Commission approved in
concept the guarantee by the Agency of an $8.6 million construction
loan from the Whitehall Group to Arrowhead Health Care System (parent
company of San Bernardino Community Hospital) for the purpose of
developing a 59,000 square foot professional office building with such
conceptual approval subject to the drafting and review of all
appropriate documents and subsequent approval by the Commission.
On November IS, 1993, the Commission approved a loan guarantee related
to the construction of the prOfessional medical office building for the
San Bernardino Community Hospital and authorized execution of related
documents. However, that transaction was not completed.
Currently, Arrowhead Health Care System has secured a new lender, North
Atlantic Life Insurance Company of America and Northern Life Insurance
Company ("the Lenders"), to finance the project and the parties are
preparing documents for the transaction. The amount of the loan is
estimated at $9.2 million, plus certain costs and fees. The Agency
guarantee is in the form of a purchase contract/put option, and due to
the form of the transaction, the Lender's counsel has requested that
the Agency hold a public hearing pursuant to Health and Safety Code
Section 33670, which requires a public hearing prior to the use of tax
increment revenues to purchase real property.
Based upon the foregoing, staff recommends adoption of the form motion.
Lt~cu.<A- c-y~j.s.. 'tI/
Barbara J. Lindseth, Acting Director
Development Department
BJL:1985A
COMMISSION MEETING AGENDA
Meeting Date: 12/19/1994
Agenda Item Number: I