HomeMy WebLinkAboutR03B-Redevelopment Agency
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JUNE 27, 1989
PUBLIC HEARING - AUTO PLAZA COMMERCIAL AREAS
Redevelopment Agency . City of San Bernardino
300 Ncnh "D" Stmet, Founh Floor . Son BomarcliDo, CaIifclmia !nA18
(714) 384-S081 FAX (714) 888-9413
Ste_ H. Dukett
Execulive DiJector
SynoDsis of Previous Co.mission/Council/Co..ittee Action:
12-23-85
07-21-86
Resolution 4831 authorized execution of OPA.
Resolution 86-301 approved sale of an additional
parcel (APN 141-251-39) to Orange Show Plaza
Associates. Resolution 4900 authorized execution
of Subordination Agreement subordinating RDA Note,
Trust Deed and OPA to construction financing
documents. Resolution 4901 authorized First
Allendment to OPA.
(continued on page 2)
Recollllended Motion:
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(MAYOR AND COMMON COUNCIL)
(COMMUNITY DEVELOPMENT COMMISSION)
OPEN JOINT PUBLIC HEARING.
A) That the Joint Public Hearing be closed; that further
reading of the following resolutions be waived and that
resolutions B) and C) be adopted.
(continued on page 3)
Supporting data attached: Yes
Ward:
3rd
FUNDING REQUIREMENTS: None
Project:
SEIP
Comllission
Notes:
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Agenda of Julv 5.
Item NO'j j
1989//
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Redevelopment Agency
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SYnODS is of Previous Commission/Council/Committee Action:
(continued from page 1)
05-02-88
Resolution 5111 approved execution of a Second
Amendaent to OPA.
06-08-89
Committee recommended that Commission and Council
set joint public hearing to consider an Amended
and Restated OPA primarily affecting the general
commercial areas.
06-19-89
Commission and Council set joint public hearing to
consider an Amended and Restated OPA primarily
affecting the general commercial areas.
06-22-89
Committee recommended that the Commission
authorize and the Council approve the execution of
an Amended and Restated OPA primarily affecting
the general commercial areas.
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Redevelopment Agency
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(continued fro. page 1)
(MAYOR AND COMMON COUNCIL)
B) RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING THE REHABILITATION AND
IMPROVEMENT OF REAL PROPERTY PURSUANT TO AN
AMENDED AND RESTATED OWNER PARTICIPATION AGREEMENT
BY AND AMONG THE REDEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO, ORANGE SHOW PLAZA ASSOCIATES,
VICTOR H. BOYD AND GREG D. MCCLELLAND.
(COMMUNITY DEVELOPMENT COMMISSION)
C) RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING THE
REHABILITATION AND IMPROVEMENT OF REAL PROPERTY
PURSUANT TO AN AMENDED AND RESTATED OWNER
PARTICIPATION AGREEMENT BY AND AMONG THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO, ORANGE SHOW PLAZA ASSOCIATES, VICTOR
H. BOYD AND GREG D. MCCLELLAND.
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S T A F F R E P 0 R T
This is to request that, subsequent to a public hearing, the
Commission authorize and the Council approve the execution of an
Amended and Restated Owner's Participation Agreement (OPA)
between Orange Show Plaza Associates (OSPA), Victor Boyd and
Greg McClelland (B & M) and the Agency.
BACKGROUND
On December 23, 1985, the Redevelopment Agency entered into an
Owner's Participation Agreement (OPA) with Orange Show Plaza
Associates (OSPA) for the development of an automobile center in
the Southeast Industrial Park. The OPA was amended in 1986 and
again in 1988 to extend construction dates and substitute a
secured note for one that was unsecured. OSPA was to install
master site improvements, complete eleven new car dealership
sites and develop an auto service center and general commercial
buildings on Parcels 12 and 13.
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To date, six dealerships have been completed and are open for
business. These include Hyundai, Mitsubishi, Pontiac, Jeep,
Chrysler and Suzuki. An Acura dealership is presently under
construction, Nissan has closed escrow on two dealership sites
and Volvo has also closed escrow. Only one automobile
dealership site remains. In addition, OSPA has completed all
the master site improvements for the Auto Plaza, but is behind
schedule on construction of the commercial sites, Parcels 12 and
13.
In order to rapidly proceed with the development of Parcels 12
and 13, OSPA has requested that Victor Boyd and Greg McClelland
(B & M) be substituted for OSPA with respect to the development
of these areas. For your information, B & M has substantial
development experience. Victor Boyd has been developing
commercial real estate for 13 years. His developments include
the ITT Cannon Corporate Headquarters (280,514 square feet), the
South Coast Executive Center office buildings (169,000 square
feet) and the Tustin Business Center multi-tenant commercial
building (151,000 square feet), all located in Orange County.
Greg McClelland has been in real estate development for seven
years and lists among his credits the Hutton Center high-rise
offices (700jOOO square feet) in Santa Ana, the Mission Square
office building (130,000 square feet) in Riverside and the Voit
Simi Joint Venture mixed use industrial/office project
(1,300,000 square feet which is at 30% completion) in Simi
Valley. Altogether, B & M have developed over 2,400,000 square
feet of office, commercial and industrial buildings.
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B & M has taken several preliminary steps which will enable the
rapid development. of Parcels 12 and 13. They have entered
escrow, received Planning Co..ission approval for their
development plans, received Building and Safety Department.
approval of their construction plans and will soon be ready to
start construction on the general co..ercial areas of the Auto
Plaza (Parcels 12 and 13 of Parcel Map Number 9713). The .
attached Amended and Restated OPA will substitute B & M for OSPA
with respect to the development of these areas and provide for a
larger buildout than originally planned.
The Amended and Restated OPA contains the following basic
provisions:
1) B & M will deliver at least the same new assessed
valuation ($5.6 million including land) that OSPA was
obligated for (when finished, the total amount of
square footage will be greater than under previous
plans) . Unlike OSPA, however, B & M has agreed to pay
in-lieu of development fees in the event this valuation
is not achieved. In addition, it should be noted that
B & M is confident that when all tenant improvements
have been installed the assessed valuation will climb
to approximately $8 million;
2)
B & M agrees to begin construction by October 16, 1989
and to complete the project by October 15, 1990;
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3)
Any land not required for the construction obligation
must be fully landscaped;
4) Before escrow can close, B & M must have all
development entitlements and an unqualified loan
commitment with no contingencies;
5) B & M will purchase Parcels 12 and 13 for $2,600,000;
6) To perfect the Agency's position in the Agreement,
title to Parcels 12 and 13 will pass from OSPA to the
Agency, then to B & M (this will be handled in back to
back escrows);
7) All sales proceeds from B & M to OSPA (through the
Agency) will be applied to reduce the outstanding
construction loan debt of OSPA (secured by a first deed
of trust on Parcels 3, 12, 13 and a proposed parking
area);
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8) Reversionary rights to the automobile dealership sites,
presently held by OSPA, will be transferred to the
Agency;
9) The existing note from OSPA to the Agency (which has
been extremely difficult to interpret) will be
simplified and clarified; and
10) The amended and restated Agreement does not require any
further Agency financial assistance or subsidy.
The Agency holds a note from OSPA which is presently secured by
a second trust deed on Parcels 12 and 13. The Amended and
Restated OPA will provide that Parcel 3 of Parcel Map Number
9713 and the proposed parking area be substituted as security
for the note. In addition, Dan Evans and Ron McMahon, the
principals of OSPA, have agreed to personally guarantee the
$257,000 remaining balance (as of April 30, 1989). The Amended
and Restated OPA also calls for periodic payments by OSPA on the
$257,000 balance (plus accrued interest, but less any earned
credits), over a four-year term, such that by December I, 1992
the debt will have been retired (even in the event that no
further credits are earned).
RECOMMENDATION
The Amended and Restated OPA has been approved as to form and
legal content by both Agency and Special Counsel and executed by
OSPA and B & M. On June 22, 1989, the Redevelopment Committee
considered this matter and recommended that the subject
agreement be approved for execution by the Commission and
Council. It is, therefore, requested that, subsequent to a
public hearing, the Commission authorize and the Council approve
the execution of an Amended and Restated OPA, to which the
Agency, B & M and OSPA will be parties. It is also requested
that the Commission authorize the Executive Director to take all
appropriate and necessary steps to implement the Agreement on
behalf of the Agency.
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RBSOLUTION NO.
A RBSOLUTION OF THB MAYOR AND COMMON COUNCIL OF THB CITY OF
SAN BBRNARDINO APPROVING THB RBHABILITATION AND IMPROVEMBNT OF
RBAL PROPBRTY PURSUANT TO AN AMBNDBD ANDRBSTATBD OWNBR
PARTICIPATION AGRBEMENT BY AND AMONG THB RBDEVELOPMENT AGBNCY OF
THB CITY OF SAN BBRNARDINO, ORANGB SHOW PLAZA ASSOCIATBS, VICTOR
H. BOYD AND GRBG D. MCCLBLLAND.
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WHEREAS, the Redevelopment Agency of the City of San
Bernardino (the "Agency") is authorized to conduct redevelopment
activities within the Survey Area (the "Survey Area"), which
activities include the rehabilitation and improvement of real
property: and
WHEREAS, the Agency desires to enter into an Owner
Participation Agreement (the "Agreement") with Orange Show Plaza
Associates (the "Owner") and Victor H. Boyd and Greg D.
McClelland (the "Participant"), which Agreement provides for the
rehabilitation and improvement of certain real property in the
Survey Area as set forth in the Agreement: and
WHEREAS, the Agency and the Common Council of the City of
San Bernardino have conducted a duly noticed joint public hearing
regarding the proposed Agreement in accordance with California
Health and Safety code Sections 33431 and 33433: and
WHEREAS, the staff report pertaining to the Agreement,
which has been on display prior to the joint public hearing in
accordance with Section 33433 of the California Health and Safety
Code, contains a detailed description of the provisions of the
Agreement:
NOW THBRBFORB, the Mayor and Common Council of the City of
San Bernardino do hereby resolve as follows:
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June 27, 1989
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SECTION 1.
Pursuant to the California Environmental
Quality Act (CECA), Public Resources Code Section 21090 and
3 Section 151080 of Guidelines adopted pursuant thereto the
4 Agreement is an activity pursuant to and in furtherance of the
5 Redevelopment Plan.
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SECTION 2.
The Mayor and Common Council find and
7 determine, based upon the testimony and information presented
8 during the public hearing with respect to the Agreement that
9 based upon the covenants and restrictions established by the
10 Agreement, adequate consideration supports the provision of
11 financial assistance to the OWner and the Participant. The Mayor
12 and Common council further find that the rehabilitation and
13 improvements as provided for in the Agreement are necessary to
14 effectuate the purpose of the Redevelopment Plan applicable to
the Survey Area.
SECTION 3. The Mayor and Common Council hereby approve the
17 Agreement and all of its provisions, including without
18 limitation, the attachments thereto and authorize the Mayor and
19 the City Clerk to execute all documents referenced in the
20 Agreement and necessary to effectuate the provisions of the
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21 Agreement.
23 I HEREBY CERTIFY that the foregoing resolution was duly
24 adopted by the Mayor and Common Council of the City of San
25 Bernardino at a meeting thereof, held on the
26 day of , 1989, by the following vote, to wit:
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June 27, 1989
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AYES:
NAYS:
ABSENT
OR ABSTAIN:
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Council Members
City Clerk
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The foregoing resolution is hereby approved this day
, 1989.
Approved as to form
and legal content:
JAMES F. PENMAN,
City Attorney
W.R. Holcomb, Mayor
City of San Bernardino
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June 27, 1989
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO APPROVING THE REHABILITATION AND
IMPROVEMENT OF REAL PROPERTY PURSUANT TO AN AMENDED AND RESTATED
OWNER PARTICIPATION AGREEMENT BY AND AMONG THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO, ORANGE SHOW PLAZA
ASSOCIATES, VICTOR H. BOYD AND GREG D. MCCLELLAND
WHEREAS, the Community Development Commission of the City
of San Bernardino (the "Agency") is authorized to conduct
redevelopment activities within the Southeast Industrial Park
Project Area (the "Project Area"), which activities include the
rehabilitation and improvement of real property: and
WHEREAS, the Agency desires to enter into an Amended and
Restated Owner Participation Areement (the "Agreement:) with
Orange Show Plaza Associates (the "Owner") and Victor H. Boyd and
Greg D. McClelland (the "Participant"), which Agreement provides
for the rehabilitation and improvement of certain real property
in the Project Area as set forth in the Agreement: and
WHEREAS, the Agency and the Mayor and Common Council of the
City of San Bernardino have conducted a duly noticed joint public
hearing regarding the proposed Agreement in accordance with
California Health and Safety Code Sections 33431 and 33433: and
WHEREAS, the staff report pertaining to the Agreement,
which has been on display prior to the joint publi hearing in
accordance with Section 33433 of the California Health and Safety
code, contains a detailed description of the provisions of the
Agreement:
NOW THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
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June 27, 1989
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SECTION 1. Pursuant to the California Enviromenta1 Qua1tiy
Act (CEQA), Public Resources Code Section 21090 and Section
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3 151080 of Guidelines adopted pursuant thereto the Agreement is an
4 activity prusuant to and in furtherance of the Redevelopment
5 Plan.
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SECTION 2. The Redevelopment Agency finds anddetermines,
7 based upon the testimony and information presented during the
8 public hearing with respect to the Agreement that based upon the
9 covenants and restirctions established by the Agreement, adquate
10 consideration supports the provision of financial assistance to
11 the OWner and the Participant. The Redevelopment Agency further
12 finds that the rehabilitation and improvements as provided for in
13 the Agreement are necessary to effectuate the purpose of the
14 Redevelopment Plan applicable to the Project Area.
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SECTION 3. The Redevelopment Agency hereby approves the
16 Agreement and all of its provisions, inCluding without
17 limitation, the attachments thereto and authorizes the Chairman,
18 the Executive Director and the Secretary to execute all documents
19 referenced in the Agreement and necessary to effectuate the
20 provisions of the Agreement.
21 I HEREBY CERTIFY that the foregoing resolution was duly
22 adopted by the Mayor and Common Council of the City of San
23 Bernardino at a meeting thereof, held on the
24 day of , 1989, by the fOllowing vote, to wit:
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AYES:
Council Members
NAYS:
ABSENT:
Secretary
The foregoing resolution is hereby approved this day
of
, 1989.
Chairman of the Community
Development Commission of the
City of San Bernardino
Approved as to form
and legal content:
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Agency se1
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