HomeMy WebLinkAboutR09-Redevelopment Agency
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Redevelopment Agency . City of San Bernardino
300 Ncrlh "D" Stree~ Fourth Floor . San Bernardino, California 92418
(714) 384-5081 FAX (714) 888-9413
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Steven H. Dukett
&ecutive Director
JUNE 14, 1989
CURRENT ACTIVITY STATUS REPORT
Synopsis of Previous Commission/Council/Committee Action:
06-08-89 Committee recommend that the Commission receive and file the Current
Activity Status Report.
Recommended Motion:
(COMMUNITY DEVELOPMENT COMMISSION)
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Receive and file the Current Activity Status Report.
Supporting data attached: Yes
Ward:
All
FUNDING REQUIREMENTS:
N/A
Project:
All
Commission Notes:
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Agenda of: June 19, 1989
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Item No.
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STAFF REPORT
Attached for your information is the Agency's Current Activity Status Report.
The Report highlights the significant projects currently being pursued by
Agency staff and explains their status as of June 6, 1989. It is important to
note that the Agency is currently planning or implementing a myriad of
development projects when added together have a development value well in
excess of *100 million.
It is staff's intention to give the Committee/Commission an update of this
report on a quarterly basis. This will occur during the month following the
close of each calendar quarter. The next report, therefore, will be submitted
in October 1989.
For your information, during the Redevelopment Committee's review of the
attached report, several of the Agency's projects which are in default or
technical default were discussed. As a result, a separate report on these
projects will be developed for Committee/Commission review.
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REDEVELOPMENT AGENCY
CURRENT ACTIVITY STATUS REPORT
As of June 6. 1989
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CENTRAL CITY PROJECT AREA
Central Cltv South -- SDorts/Entertalnment/Cultural Center
· Description: Proposed regional sport/entertainment/
cultural center with surface parking plus surrounding mixed
commercial uses Including high rise office and residential plus
street level retail covering a total of ~100 acres. The project
site Is generally located between Rlalto Avenue on the north. 1-215
on the west. Mill Street on the south and the rear property line of
the properties located on the west side of "D" Street. The
project's financial feasibility has not been determined.
· Developer: As a result of an RFQ. two proposals have been
recelved--one from the Sunset Group and one from ADI
Propertles/Hestdome holdings. corporation.
· Status: Staff are considering the Invitation of the proposers to
make detailed presentations to a selection committee who will
recommend which should be considered for a negotiation agreement.
· Estimated Development Value: Unknown
.E Street and Athol Site (Old Harmon Motors Site)
· Description: Proposed 45.000 SF retail center on 3.89 acres owned
by the Agency.
· Developer: The Sunset Group has an agreement for exclusive rights
of negotiation which will expire on August I, 1989.
· Status: Negotiations are In process. Agency's economist has raised
economic Issues based upon surveys of property values and developer
return rates. Developer Is obtaining additional Information.
Resolution of the Issues Is expected by July 1989. In addition,
demolition Is underway to remove the existing buildings which
constitute a significant health and safety hazard and, therefore,
exposure to liability.
· Estimated Development Value: $4,660,000
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Central City South Assessment District
· Description: The District, under consideration at the request of
the Agency, would install $10 to $12 million in Infrastructure
Improvements In accordance with the City's Overlay Zone guidelines.
The principal improvements are construction of new streets,
reconstruction of existing streets, undergrounding of utilities and
landscaping.
· Status: The district has been approved on two occasions (including
one public hearing), but still requires one more public hearing
before It will be officially formed In the spring of 1990. A
contract to design public Improvements has been let by the City's
Engineering Department.
· Estimated Development Value: Unknown
Carel and Assoc., Inc. (Court & Allen)
· Description: A five phase project for 154 multi-family units and
170 mini-storage units on former Agency property located between 3rd
and 4th streets, west of Waterman.
· Developer: Cliff R. Carel and Associates have a Disposition and
Development Agreement with the Agency.
· Status: Developer has completed Phases I through III. Phase IV for
70 multi-family units and Phase V for 170 mini-storage units have
not been started. Property for Phase IV has transferred to the
developer, but property for Phase V remains In the ownership of the
Agency. Developer Is In default on. commencement of Phases IV and
V. Negotiations have been.carrled on for some time and were
temporarily suspended awaiting the adoption of the amended General
Plan. Negotiations will be reopened In June 1989.
· Estimated Development Value: $5,980,000
Court and E Street Site
· Description: Proposed 120,000 SF, ten-story, granite-faced office
and retail building with a 617 space parking structure on the SHC of
Court and E Streets (currently used as surface parking). As
currently proposed, the building would be a dramatic architectural
statement In downtown and would set a new standard for corporate
headquarters buildings in the area.
· Developer: Currently under an exclusive negotiation agreement with
The Sunset Group which expires September 30, 1989.
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· Status: A Disposition and Development Agreement Is under
negotiation. Developer has secured joint venture partners who will
commit to leasing sufficient space to make financing possible.
Unsolved Issues are replacement parking for the existing surface lot
use, Agency participation In future profits If the land Is sold, and
developer's request that the Agency rebate the cost of development
fees.
· Estimated Development Value: $15,000,000
Hanford Foundry Acquisition
· Description: The former Hanford Foundry site consists of 10.8 acres
which has recently been cleared and rough graded. The owner has an
approved tentative map to subdivide the property Into ten parcels.
· Status: The Agency has approval to purchase the property for
$2,200,000. The owner had subsequently asked for a down payment and
an Interest rate higher than that approved by the Commission. He
changed his mind on this In May 1989 and will agree to conform with
the original terms.
· Subject to satisfaction relative to toxic wastes,'the purchase can
close within the next several weeks. Agency's economist Is
currently making a thorough review of the site's potential. Staff
will Issue an RFQ/RFP for the site shortly thereafter.
· Estimated Development Value: $10 million on completion
F Street Railway Crossing
· Description: Implementation of the Central City South Overlay Zone
mentioned above In connection with the CCS Assessment District, will
be dependent upon obtaining an "at grade" public crossing of the
AT&SF railway for F Street south of Rla1to Avenue.
· Status: A preliminary agreement with the railroad has been
obtained, but It Is dependent upon the closing of two other "at
grade" crossings, one on Main Street and another on 8roadway in the
Uptown Area <Subarea B). The PUC staff has supported the railroad's
position. The Agency made a request to Engineering for the
necessary street vacation proceedlngs. Local opposition has stopped
the proceedings and councl1members have been exploring
a1ternatlves. The matter has been referred to the RDA Committee.
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San Bernardino Downtown Main Street, Inc.
· Description: "Main Street," a non-profit public benefit corporation
formed on July 22, 1987, was created to utilize a comprehensive
management approach to help revitalize the City's downtown core
lying between 1-215 and Sierra Hay, north of Rlalto Avenue and south
of 8th Street. An amended agreement, dated April 17, 1989, provides
a specific work program supported by a three-year budget totaling
$915,985. In addition to this, the Commission has budgeted
$2,108,015 for related pUblic Improvements. The budgeted funds are
to be supplied by the Agency, primarily from the Central City North
project area's reserves.
· Status: In addition to ongoing education, promotion, and economic
restructuring activities, Main Street Is Involved In the preliminary
design of public Improvements to be built In the central portion of
the program area. The public Improvement activities will total
$2,108,015 of the program effort and will be constructed by or on
behalf of the City through the Department of Public Harks. Other
program elements In the work program Include a building facade
renovation program and, a sign abatement program, (both of which
require Main Street to specify In writing the program elements and
obtain Commission Approval, which has yet to occur). Main Street Is
scheduled to make Its next quarterly status report In July 1989.
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CENTRAL CITY NORTH PROJECT AREA
Platt Bulldlnq
· Description: Renovation of historic building at the SEC of 5th
Street and E Street. The Agency was Involved In obtaining parking
which was used to expand the downtown parking lots as well as for
the Platt Building.
. Owner: Art Gregory.
· Status: Owner Is In default on completion of exterior Improvements,
partially due to difficulties In obtaining tenants. Main Street Is
cooperating to locate tenants and Agency staff has been negotiating
an amendment to the existing agreement. Remedy under existing
agreement Is $50,000 to Agency from owner.
· Estimated Development Value: $1,200,000
Miles House
· Description: Renovation and relocation of the Queen Anne style
Miles house to Agency-owned land adjacent to the Historical Society
building on the SHC of 8th and D Streets. The Agency would sell the
land (an Improved parking lot) to the developer who would relocate
the house onto a portion, use another portion for parking for
commercial uses In the renovated house, and maintain parking on the
balance for the benefit of the Agency under an easement for
subsequent license or lease to the Historical Society.
· Developer: Rock Enterprises.
· Status: A exclusive agreement has been authorized and negotiations
are underway on a Disposition and Development Agreement. The DDA
should be completed by June 19, 1989 and a public hearing can be
scheduled shortly thereafter.
· Estimated Development Value: $240,000
Hhole Block Development Concept North of City Hall
· Description: Complete renovation and/or reconstruction of the block
between Court and 4th Streets and between D and E Streets for a
mixed use development of retail and office plus a limited amount of
third story residential.
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· Status: Originally proposed by the Janss Corporation who has since
asked that the Agency evaluate the concept and Issue a request for
qualifications to developers. They suggested that after a qualified
developer Is selected, specific development criteria would be
. determined. Agency economist Is currently reviewing the site
potential.
· Estimated Development Value: Unknown
Main Street
Please see the description on the Central City Project.
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NORTHWEST PROJECT AREA
Northwest ShoDDlna Center
· Description: An 80,000 SF neighborhood shopping center on ten acres
of Agency-owned property (with a remainder parcel of ~5.5 acres).
As conceived for a Boy's Market, the $10.7 million center was
proposed to be financed from the following sources:
UDAG Grant
City fee waivers
RDA on/off site relmb
RDA land purchase
Haagen contribution
Conventional first
RDA second
Total
$1,834,000
161,250
2,000,000
1,325,000
500,000
3,661,000
1,200.000
$10,681,250
In addition, there would be three years of very low interest interim
financing from city and county CDBG float funds and an Agency loan
to reduce the project carry to acceptable levels. The currently
proposed mechanism Includes a ground lease to the city who will
sublease to Haagen. Haagen would have a 'best efforts' right to
negotiate a purchase at some point In the future.
· Developer: Alexander Haagen Development Company
· Status: Haagen has confirmed that the Board of Directors of
American Stores (the parent of Lucky) has determined that the site,
with appropriate lease terms, meets their basic criteria for a new
market location and has authorized formal lease negotiations. This
appears to be a major breakthrough. Continued availability of the
UDAG grant will be dependent upon substantive progress in the Lucky
negotiations. A formal request to extend the UDAG deadline to
August 31, 1989 for submission of all legally binding commitments
has been forwarded to HUD. Substitution of Lucky will require a
significant change In the financing shown above because the market
will be substantially larger and therefore more expensive to
flxturlze. It will be difficult to analyze until lease negotiations
are nearly final between Lucky and Haagen. On the plus side, the
center will have a larger regional draw with Lucky as compared to
Boy's and the shops are expected to be more successful. Resolution
of the Lucky lease issue Is expected during June 1989.
· Estimated Development Value: $10,700,000
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Ninth Street and Pennsylvania Property Acquisition
· Description: A 3.87 acre parcel appeared on the tax-defaulted
property list and the Agency has been authorized to purchase it
using $7,500 from the low-to-moderate-income housing fund.
· Status: A request has been filed with the county and, If the
property is not redeemed by the owner, the Agency will acquire the
parcel sometime next year. It is usable for a single-family
residential project.
· Estimated Development Value: Unknown
HAB land Development Corporation
· Description: A 40 acre parcel designed for heavy industrial users,
landlocked by county flood control channels.
· Owner: HAB land Development Corporation.
· Status: HAB has discussed requesting Agency assistance and has
indicated that they are considering further conversations with the
County Flood Control District over an old obligation to Muscoy Hater
Company with respect to vehicular crossings which they interpret to
be bridges to the property. This may involve the Agency in that It
is likely we will attempt to renegotiate a pass-through of tax
Increment from the County to the Agency. The original, temporary
pass-through agreement for the Northwest project area expired
without being replaced by a permanent agreement. Agency and County
representatives were involved in an attempt last year to develop a
permanent agreement. Negotiations were suspended to expedite the
Northwest Shopping Center which Is dependent upon the loan of CDBG
float money from the County.
· Estimated Development Value: Unknown
Public Enterprise Center
· Description: The Agency owns the mostly empty PEC building on the
SHC of Hestern and Highland Avenues. The six existing tenants are
the City library, the Community Access Cable TV studios, the Drop-in
Center run by Parks and Recreation, the branch Post Office and bill
payment center, People's Choice, and the Northwest Project Area
Committee.
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· Status: The building was badly In need of correcting deferred
maintenance when it was acquired by the Agency from Operation Second
Chance. Some progress has been made, but major roof repairs and the
possibility of replacing the HVAC system remain as does the
renovation and refinishing of exterior wood surfaces. General
operations and maintenance costs the Agency about $240,000 per
year. A Community Development Commission approved task
force/citizen's committee has been formed to develop consensus on a
self-sustaining, long-term use for the building. Specific proposals
Include use as a business Incubator, as a vocational training
center, as a day care center, etc. The committee has approved
Issuance of an Request For Proposals to obtain the services of
qualified expert to develop cost estimates for restoration and
remodeling of the building as well as assistance on the selection of
uses and evaluation of fi nanclng sources. The RFP wi 11 be Issued
during June 1989.
Arrowhead Health Care Systems
· Description: A 75,000 SF professional medical office complex to be
built partly on land owned by Arrowhead (former school property) and
partly on land now owned by the Agency (former park property) on the
west side of Medical Center Drive south of 19th Street..
· Developer: Arrowhead In joint venture with Dowdell Corporation, a
subsidiary of Xerox.
· Status: Although the Agency Is In escrow with Arrowhead, an
amendment to the Disposition and Development Agreement Is required.
The date for close of escrow must be extended, the vesting must be
changed, and Arrowhead has not yet performed on certain Improvement
requirements of the City In connection with the construction of the
new hospital addition. Staff has proposed a concept that meets the
needs of Arrowhead and will still provide for construction of the
Improvements. Arrowhead has not responded.
· Estimated Development Value: $8,000.000
SHC of Baseline and Mt Vernon
· Description: A retangular-shaped piece of ground totaling 3.6 acres
including ~0.5 acres owned by the Agency. There Is an existing,
abandoned Pioneer Chicken on the corner, but the balance of the site
Is vacant. The proposed General Plan land use designation would
allow for either commercial uses or multi-family uses on the site.
· Status: The Agency's economist is analyzing the development
potential for the site. He will then consider whether an
Agency-sponsored or -assisted project Is worthwhile.
~ · Estimated Development Value: Unknown
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Senior Citizens HouslnQ Pr01ect
· Description: A 50 unit senior citizen residential project to be
built on land owned by Arrowhead Health Care Systems. The proposed
financing comes sot from the County Housing Authority and sot from
the Agency. The Agency's share will be obtained from the sale of
tax allocation bonds secured by revenues from 20t set aside funds.
· Status: The City's Department of Community Development is Involved
In the negotiation of the various leases, agreements, and studies
required to form the project.
· Estimate Development Value: $2,000,000
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STATE COLLEGE PROJECT AREA
Greenleaf Development
· Description: A 'speculation development of ten industrial buildings
totaling 350,000 SF expected to produce 700 jobs.
· Developer: Greenleaf/Neely Investors.
· Status: The project has received all entitlements. Developer has
requested assistance (which the Agency's economist says is
warranted) for the cost of improving a city-owned storm drain that
conveys water underneath the freeway and through the development to
a public street. An assistance agreement is being drafted for
consideration that would provide reimbursement of $100,000 for the
improvement.
· Estimated Development Value: $13,000,000
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College Parkway Development Associates
· Description: Ten parcels of land on the SHC of University Parkway
and 1-215. Existing development is comprised of Papa's Pantry,
Motel 6, and Taco Bell.
· Developer: College Parkway Development Associates.
· Status: .College Parkway received a loan of $350,000 from the Agency
secured by second trust deeds. It was substantially paid back and
then reloaned under an amendment to their loan agreement which
substituted new deeds of trust. The loan has now been paid down to
$140,000 in connection with releases of various parcels. They are
asking that the Agency once again loan funds for the final phase of
the development and increase the principal balance to $500,000. The
developer has not met the time requirements for construction of
Phase II and is now in default. Agency staff together with our
economists are evaluating the developer's proposal to determine if
the project is eligible for further Agency assistance.
· Estimated development Value: $15,125,000
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University Villaqe Apartments
· Description: A 197 unit apartment project on the NEC of University
Parkway and Kendall Drive on land assembled by the developer and by
the Agency. In addition to site assembly, the Agency will reimburse
a portion of the landscaping expenses required to screen the
development from the entrance to the University.
· Developer: University Village Associates.
· Status: The apartment units are complete and have received
certificates of occupancy from the city. The developer has a
remaining obligation to complete landscaping in the median of North
Park Boulevard and on a one acre park site adjacent to the
University. Developer has requested construction draws on the
balance.of the Agency assistance available under his agreement, but
has not yet responded to recent Agency correspondence.
· Estimated Development Value: $7,500,000
Westslde CDC Buildinq on Hallmark
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Description: The Agency holds a second deed of trust on an
18,000 SF building on Hallmark Parkway. The building was
constructed with EDA grants and Is subject to a management
agreement. Trust Deeds on the property are as follows:
1st TD
2nd TD
3rd TD
Bank of Calif
Agency
Morgan & Franz
$ 184,328
82,170
54,990
$321,488
· Developer: Hestside CDC.
· Status: The bank is pursuing a foreclosure action, but the sale has
been postponed monthly. The current sale date is June 23, 1989.
NEC of 27th Street and Little Mountain Drive
· Description: A privately owned ~14 acre site proposed to be
designated as commercial office in the amended General Plan. Thls
is the last major piece of vacant land in the area and ls at the
approximate center of the preferred area located by the consultant
who assessed alternative locations for a pollee headquarters
building.
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· Status: The Agency's economist Is conducting an analysis of the
site's potential. A number of studies would be required for
development of the property Including storm water control and
traffic assessment studies. The location Is convenient to freeway
access for both 1-215 and Route 30. It Is not Immediately adjacent
to mapped fault zones and is unlikely to have Liquefaction
potential. He will consider whether an Agency-sponsored or
-assisted project is worthwhile once we receive the economist's
report.
· Estimated Development Value: Unknown.
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SOUTHEAST INDUSTRIAL PARK
Sunset BusIness Park
· DescrIptIon: Twelve low-rIse offIce/commercIal buIldings (nIne
under agreement wIth the Agency) on HospItalIty west of Hunt's Lane.
. Developer: The Sunset Group.
· Status: EIght offIce buIldIngs and one commercial buIldIng have
been completed and the fIrst seven of these have received partIal
certifIcates of completIon. Three more buIldIngs wIll be buIlt
under the remaInder of the agreement. The fIrst seven offIce
bu11dlngs were three-story structures, but the most recent was a
four-story buIldIng. Rough gradIng has been completed for the
remaInIng buIldIngs, but constructIon wIll depend upon market
condItIons and the provIsIons of the General Plan amendment (the
developer Is ahead of the schedule in the agreement). ContInued
development of four story and hIgher buIldIngs wIll be dependent
upon mItIgatIon of sIgnIfIcant traffIc Impacts and may requIre
structured parkIng. The developer had prevIously applied for a UDAG
award to assist the fInancIng of a parkIng structure, but had to
wIthdraw the applIcatIon because cIty ordInances dId not allow the
constructIon of the taller offIce buIldIngs by rIght. Because the
development was not, therefore, ready to proceed. It could not meet
the "but for" test requIred for the grant. A specIal study wIll be
made by the PlannIng Department after the General Plan amendment Is
adopted to develop buIldIng heIght requIrements for the Commerce
Center/Trl-Clty area.
San BernardIno Auto Plaza
· DescrIptIon: A regIonal auto plaza contaInIng 11 new car
dealershIps added to 2 exIstIng dealershIps plus an auto servIce
center and ancIllary retaIl buIldIngs on Auto Plaza DrIve west of
I-21S.
· Developer: Orange Show Plaza AssocIates.
· Status: Master sIte Improvements and sIx of the new car dealershIps
have been completed. A seventh dealershIp (Acura) Is under
constructIon. Number eIght (Volvo) has recently closed escrow as
has Nlssan who purchased a "two dealershIp" site. One dealershIp
site remaIns avaIlable. The developer Is behInd schedule on the
commercIal parcels, but has entered escrow wIth a substItute
developer, B & M. He are negotIatIng an Amended and Restated OPA to
allow transfer to the new developer and set development requIrements.
· EstImated Development Value: $8.000,000
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c::> Friedlander Auto Dealershio (Acura)
· Description: New Acura Car Dealership for San Bernardino Auto Plaza
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. Developer: Herb Friedlander
· Status: Because construction of the dealership fell behind the date
called for in the underlying Auto Plaza OPA, negotiations with Herb
Friedlander led to a separate OPA covering just this dealership.
Under its terms, Mr. Friedlander deposited $75,000 with the Agency,
which could be refunded if the following construction deadlines were
met:
Obta in bui 1 di ng permits - by May I, 1989
Start construction - by July I, 1989
Certificate of Occupancy - by January I, 1990
To date, the initial $25,000 has been refunded and construction Is
progressing on schedule.
TeonQ Kay (formerly referred to as T. J. Burris)
· Description: Thirty-five acres of industrial property located north
of Brier Road and west of Tippecanoe Avenue.
· Owner: Teong Kay (who also owns significant additional acreage to
the south in Tri-City project area).
· Status: In violation of the Agency's deed restrictions, the
property was sold several times after disposition in 1979. The
current owner is negotiating with us to clear up the defaults and
substitute enforceable commitments for development.
· Estimated Development Value: $5,000,000
DeGroot/Sunset Grouo
· Description: A 20,000 SF industrial building to be built on
Riverview Drive.
· Owner: Ted and Jacqueline DeGroot (recently joint ventured with The
Sunset Group).
· Status: The agreement has been amended five times to allow in-lieu
fees to be paid instead of proceeding with construction.
Construction is once again overdue, but this time The Sunset Group
is interested in amending the agreement for a longer time frame and
is considering substituting themselves for DeGroot. He have been
receptive to the concept of substitution and have suggested a format
for the new agreement which still retains the concept of in-lieu
payments until construction is completed.
· Estimated Development Value: $600,000
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c::> Klnq Default
· . Description: An 11.3 acre parcel of Industrial property on the NWC
of Tippecanoe and Cooley Avenues. Obligated to construct 5
Industrial buildings totaling 145,000 SF and worth $5,000,000 under
an agreement signed In 1979.
. Developer: Chuck King & Associates.
· Status: Only one building (23,000 SF> was built and a second Is
currently under construction. Developer owed the Agency $44,000 in
In-lieu fees as of January I, 1989. On November 21, 1988, the
Commission authorized the City Attorney to proceed with litigation
to recover the fees due.
Rockwell International
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· Description: Modification of existing Industrial buildings at the
west end of Cooley Avenue for aerospace design, production, and
testing facilities for the MX rail garrison program.
· Status: The Agency has an agreement to provide $770,000 In
assistance to Rockwell over a period of 5 years In exchange for 1250
man years of employment. Rockwell has successfully bid for another
project and is debating between carrying the project out In existing
facilities In Huntington Beach or placing It Is San Bernardino.
They have recently met with Agency Staff to discuss further
assistance which would Involve additional parking, both for the
existing and for the new programs. The discussions are preliminary
at this time, but could involve an amendment to the existing
agreement.
· Estimated development Value (current project>: $12,000,000
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SOUTH VALLE PROJECT AREA
The Club Center
· Description: A large scale, discount retail, center In South Valle
located on Caroline Street between Hunts Lane and Waterman.
· Developer: SP Investments.
· Status: Construction Is complete, except that the agreement will
require an amendment, which Is currently being reviewed by staff,
before a certificate of completion can be Issued. The square
footage.was less than required by the agreement, but the value has
been exceeded. The project was also completed several years ahead
of schedule. On a related matter, the Department of Public
Works/City Engineer, on behalf of the Agency, Is completing the
construction ofa railroad crossing on Hunts Lane In cooperation
with Colton.
· Estimated Development Value: $10,000,000
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TRI-CITY PROJECT AREA
Pace Warehouse
· Description: A 150,000 SF discount retail center featuring Pace
Warehouse and Sportmart with additional retail shops and a
restaurant site located on Harriman near Hospitality. Agency agreed
to provide $1.200,000 in assistance.
· Developer: Alexander Haagen Company and Doug Golding.
· Status: All development is complete with the exception of the
restaurant site. An amendment is required and the developer is
currently assembling information on the values of the completed
construction.
· Estimated Development Value: $6.000.000
Tri-Citv Corporate Center
· Description: A regional commercial and business center totaling 2
million SF with a value well in excess of $150 million ($50 million
under agreement to the Agency) located on the site of the old
Tri-City Airport.
· Developer: Rancon Realty Funds IV and V.
· Status: Twelve buildings, including two four story and one
six-story office building, have been completed. Current
construction has slowed. but a regional headquarters building and
operations center for Santa Fe is in process. The Agency's
obligations include the construction of a new off-ramp for 1-215
which is currently estimated to cost $1.2 million. Southeast
Industrial Park, which also benefits from the relocation, may be the
current source of funds for this improvement although it could
eventually be paid for from tax increment off the Rancon project.
Rancon has requested further Agency assistance on the construction
of approximately $1.8 million in public improvements. Staff are
continuing to work with Rancon to define the request and the need
for assistance. This will probably conclude during summer 1989.
· Estimated Development Value: $150,000,000
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c::> Santa Fe Relocation
· Description: The retention and relocation of the Santa Fe Yard
Office and facilities to provide control of all Santa Fe trains
operating in the State. This is a large dispatch center requiring
specialized communication and control equipment. The Agency is
contributing $100,000 in relocation assistance.
· Developer: Santa Fe.
· Status: Construction in process.
· Estimated Development Value: $3,800,000 in special equipment.
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UPTOWN PROJECT AREA
Rlalto and I Site
· Description: The Agency owns a 13.000 SF building on a 48,709 SF
lot on the NEC of Rlalto and I (the former Washington Elementary
School). The proposed General Plan land use designation Is Light
Industry.
· Status: The Agency's economist Is studying the feasibility of the
redevelopment of the whole block from Rlalto to Second Street on the
east side of I Street. This would Involve acquisition and
demolition of existing structures and would produce the first
significant development for the Uptown project area In accordance
with the new General Plan design. Staff expect the appropriate data
to be available during June 1989. A decision on whether It Is
appropriate to proceed can be made during July 1989.
· Estimated Development Value: Unknown
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OTHER DEVELOPMENT ACTIVITIES
Enterprise Zone
· Description: The existing Enterprise Zone sunsets in November of
1989. Staff is preparing a report on the effect of the zone's
existence from inception as well as for the last year of operation.
· Status: An application was made for a federally designated
enterprise zone. Our raw score for the rating criteria was low, but
we have requested special consideration because the proposed zone is
adjacent to Norton AFB and wou.ld be an important tool in offsetting
the effects of the closing of the base.
NEIGHBORHOOD SPIRIT (Formerly Referred to as "Love Thy Neighborhood")
· Description: The Agency, with consulting assistance from SGH
Development Group and in cooperation with Community Development
staff, is studying a .three-part program for the rehabilitation of
detached single family homes that would be funded from the Agency's
low- and moderate-Income set aside funds. The program includes
incentives for renters as well as owners. It has a grant component
for exterior painting, a zero Interest loan component for exterior
improvements, and a low interest loan component for home
rehabilitation.
Conceptually this program would be marketed and Implemented by the
Community .Development Department. Funds would be disbursed from the
Agency's set aside accounts. In Garden Grove, this program was
targeted in certain neighborhoods and coupled with other city
programs to provide security Inspections, street resurfacing,
sidewalk reconstruction, graffiti removal, etc. This additional
option is also being considered for San Bernardino.
· Status: The Garden Grove program is being examined for It's
applicability to San Bernardino and program guidelines,
implementation procedures, sample agreements, loan procedures, and
financing alternatives are being developed. We anticipate
presentation to the RDA Committee and the Commission in July.
Proposed Norton Redevelopment Project Area
· Description: A %3,500 acre study area including Norton AFB, city
lands west and southwest of Norton, and county Islands within the
city. This would potentially be a joint powers redevelopment
project area involving both the city and county.
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· status: The Commission has authorized a detailed study of the
proposal. An RFP has been developed for consulting services for
plan adoption and It will be issued once we have resolved the
direction In which the redevelopment project will go.
The first steps Involve the development and analysis of proposed
target areas and a draft preliminary plan developed In cooperation
with the Norton Economic Expansion Committee.
Proposed Mt Vernon Business Corridor Redevelopment Pr01ect Area
· Description: A targeted study area principally focused on Mt.
Vernon Avenue, Foothill Boulevard and the Santa Fe freight yards.
· Status: The Commission authorized staff to begin a detailed study
of the proposal. An RFP for plan adoption consulting services has
been Issued and a recommendatIon will be made to the Commission in
July. The first steps Include an Initial determination of financial
viability, development of survey area options, proposed target
areas, preliminary analysis of each proposed target area and
presentation of a prelIminary plan. A Community Advisory Committee
is expected to be an early part of the program and it Is likely to
transition to a Project Area Committee after the Planning Commission
adopts the preliminary plan. The Initial survey area options will
be developed In cooperation with the Community Advisory Committee
for presentatIon to the Commission.
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c::> ADMINISTRATIVE SUPPORT ACTIVITIES
Audit FindinQs
With the exception of the fund accounting issues, all of the audit
report exceptions cited by Eadie & Payne and Peat Marwick Main & Co.,
have either been addressed or corrections will be finalized by June 30,
1989. One portion of the Eadie & Payne audit relating to mortgage
revenue bonds was not completed as the Agency's accounting records were
not adequately reconciled. This issue will be addressed over the next
two months.
Financial Planning
The Agency issued an RFP to obtain the services of a financial planning
consultant and selected the firm of Katz, Hollis, Coren & Associates.
The first portion of the Katz Hollis study, an analysis of revenues and
bond obligations, will be completed by June 30, 1989. To date, an
initial assessment of the Agency's financial systems and activities has
been submitted. A contract amendment is necessary and will be proposed
to authorize Katz Hollis to conduct further analysis on the Agency's
financial condition and systems.
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BudQet
The proposed budget documents for fiscal year 1989-90 have been
reformatted and a manual developed to Improve tracking of expenditures
and revenues 'for each project area. The proposed 1989-90 fiscal year
budget for the Agency will be submitted to the Commission In July for
review In accordance with a request by the Redevelopment Committee. To
ensure that the Agency can continue to operate as of July 1, 1989, a
continuing resolution will be presented to the Commission at Its meeting
of June 19, 1989.
Agency Reports and Informational Documents
Various Agency reports and other Informational documents have been
revised or developed for public dissemination. The Annual Report has
been reformatted and distributed. Owner Participation Procedures and
Developer Relations Guidelines have been adopted and printed and are
being distributed on a regular basis. A redevelopment informational
booklet has been completed and will be a valuable tool as new project
areas are adopted. A Development Summary and a City Profile are
currently being researched for publication over the next several
months. An overall marketing plan will be developed In conjunction with
the appropriate CIty entitles over the next fiscal year.
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c::> Administrative Procedures
As suggested In the Agency's audit reports, administrative procedures
have been Implemented or revised pertaining to the procurement and
payment function, travel and mileage expenditures, business expenses,
and Inventory control. A number of administrative procedures relating
to Internal office operations have also been revised to enhance sound
management practices. The balance of the Agency's administrative
procedures are currently under review. Any necessary amendments will be
made by the end of the first quarter of fiscal year 1989-90.
Employee Lonq-Term Disability (LTD) Insurance
Bids for a proposed employee LTD program have been solicited and
received, and are being reviewed by staff. A recommended program will
be submitted to the Commission for review concurrent with the 1989-90
budget.
Personnel ~ollcles and Procedures
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The personnel policies have not been formally revised since 1981. The
personnel manual has been reviewed and draft revisions will be submitted
to legal review by the middle of June, 1989. They will subsequently be
shared with all Agency staff for review and comment. Revisions will be
recommended to the Commission In July, 1989 for adoption. Concurrently,
we will be developing an employee performance planning and measurement
system.
Review of Stafflnq Component
Staffing assignments and levels are currently under review and some
Initial reassignments have already been Implemented with others
pending. However, In order to properly organize and posture the
Agency's staff, It will be necessary to create, reclassify and or delete
certain positions. This process will entail revisions to the Personnel
Policies and Procedures and appropriate adjustments to our personnel
budget authorization. A proposed reorganization plan will be submitted
to the Commission as a part of the recommended budget.
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