HomeMy WebLinkAboutR02-Redeveloment Agency
o
o
o
o
o
o
o
IlAYOJt A1IJI COIB). C01JIlCIL
COII_.LU DBVBLOPIIIIIr C(HMISSIOII A1IJI TIIB
JOIft POWBRS nlWlCDG AlmIOJlJU
or TIIB crn or SA:! _lIIDtllO
IIINUTES
UGOLAJt JlBBTII'G
Dec~er 17, 1990
11:00 a...
The regular meeting of the Mayor and Common Council, the Community
Development Commission and the Joint Powers Financing Authority was called to
order at 11:08 a.m., on Monday, December 17, 1990, in the Council Chambers of
City Hall, 300 North "D" Street, San Bernardino, California, by Chairman W. R.
Holcomb.
]lOLL roi'.T.
Roll call was taken with the following being present: Chairman W. R.
Holcomb; Commission Members Esther Estrada; Jack Reilly; Jess Flores; Michael
Mauds1ey; Tom Minor; Valerie Pope-Ludlam; Norine Miller. Absent: None.
STAFF PRBSDT
Robert J. Temple, Acting Administrator, Economic Development Agency;
Kenneth J. Henderson, Executive Director, Development Department; Dennis A.
Barlow, Senior Assistant City Attorney; John Hoeger, Development Manager,
Development Department; Wayne Overstreet, Director of Facilities Management;
Annie F. Ramos, Director, Parks, Recreation & Community Services; Rachel
Krasney, City Clerk; and Deborah Marez, Recording Secretary, Deve10pmlint
Department.
OTIIBRS IN A'I"I"DIlAIIr.R
Tim Sabo, Special Counsel from Sabo & Green.
PUBLIC C<IIwmIIl:S 011 ITBIIS ROT ON TIIB AGBlOlA
There were no public comments.
1. Joint Powers PiftAfte4ft. Au"'hftritv
(C-.m.ity Develo~t Commission)
Commission Member Tom Minor made a motion, seconded by Commission
Member Riley, to continue the regular meeting of the Joint Powers Financing
Authority to Wednesday, January 23, 1991.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Mauds1ey; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
COMMISSION MINUTES
'DVMTT A 1) M'VV"1'T~
DECEMBER 17, 1990
5250R(d1m)
e!I.
- 1 -
o
o
10
I
(,)
o
o
o
2.
DeveJn--t Deoartaent Invesblent Policy
(C~ty Developllent C~ission)
Commission Member Tom Minor made a motion, seconded by Commission
Member Reilly, to approve and adopt the Development Department's Annual
Statement of Investment for the year 1991.
The motion carried by the following vote: Ayes: CODIIIission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
3. Deaolition of Structures located at 136 South Irwin Street. 1263
Baseline Street. ..... 816 Vest 19th Street
(Kayor lID4 C_ Council)
RESOLDTIOB 110. 90-500
RESOLDTIOB OF rBB CIn OF SAlI BBDAllDIlIO AVARDIltG A COBTRACT TO
DIEDICB BllDllPRISBS FOil DDl)LITIOII AD r:r..A1!A1ICB OF TWO (2)
RESIDBIIIUL SDOcmRES AD OB (1) FRBB-STAlU)UG GOAGB LOCATED AT 136
SOUTH IIlVI1I S'rbaY, 1263 IlASBLIB STIlBBT, AD 816 VEST 19TH STIlBBT,
RESPECTIVELY, SAlI BBDAllDDO, CALIFODIA.
Council Member Tom Minor made a motion, seconded by Council Member
Reilly to waive further reading of the resolution and adopt said Resolution.
The motion carried by the following vote: Ayes: Council Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: !lone.
4. Pro1ect H_e )tun Infill HousilUl: ProDOsa1
(C~ty Developllent C~ssion)
Kenneth Henderson presented the proposal which was received from
Project Home )tun, Inc. ~equesting financial assistance in constructing seven
(7) single family residences for low to very low income families. To date,
Project Home )tun has completed four (4) such ventures working together with
the City under a previous CDBG-funded grant. The project's objective,
approaches and a breakdown of the requested financial assistance totaling
$197,884.21 was reflected in the staff report.
The Commission was informed that the construction will be accomplished
through a joint venture between the City, Project Home Run, and the Building
Trade Unions of the Inland Empire. Local financial institutions will provide
mortgage financing at below-market rates. This joint effort will maximize the
use of donated materials and labor to write-down the costs of construction.
The houses will consist of 1,100 square feet with an attached two (2) car
garage and will market for between $50,000-$55,000 to provide decent living
space for a family of six (6).
COMMISSION MIl'lUTBS
REGULAR MEETIl'lG
DECEMBER 17, 1990
5250R(dlm)
- 2 -
o
o
o
o
o
o
o
Mr. Henderson noted thst the infill ordinance requires that eligible
projects be exempt from the payment of all building, planning and engineering
and mechanical fees. Based on his discussion with the Mayor and Redevelopment
Committee members, it is the recommendation that, rather than those fees be
exempted and impact the general fund, that Twenty Percent (20%) Set Aside
funds be utilized to pay for those costs associated with the building and
permit process. It was brought to the Commission's attention that the number
of charges related to sewer and water uaage, and acquisition service charges
will be increasing in January or February, 1991, although, if it were approved
at this time, the costs will be paid at the current rate.
There was some discussion on how this related to the Twenty Percent
(20%) Set-Aside Fund.
Mayor Holcomb commended the Building Trade Union for their generous
contribution of labor. Councilwoman Miller reminded the Commission that this
whole program was started by the Sisters of Charity at St. Bernardine's
Hospital.
Commission Member Miller made a motion, seconded by Commission Member
Flores that the Community Development Commission appropriate $197,885 from its
Twenty-Percent (20%) Set-Aside Housing Fund to finance in part the
construction of seven (7) infill homes by Project Home Run. Further, that the
Executive Director and Agency Counsel be authorized to execute all documents
in connection therewith.
The motion carried by the following votes: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
5. RentlDeDOsit Guarantee Proaram Guidelines
(C~ty Developaent ec-isaion)
Commission Member Pope-Ludlam made a motion, seconded by Commission
Member Estrada, to approve and adopt the Rent/Deposit Guarantee Program
Guidelines and authorize the implementation of same.
The ,otion carried by the following votes: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
6. Street Tree Master Plan
Mr. Henderson stated that the city'S municipal code requires a street
tree master plan and recommended to the Commission that an approach similar to
that described in the staff report be considered by the Commission and
Council. A letter from the Keith French Group which specifically listed the
target area of the street tree inventory and master plan program was provided
as information.
COtMISSIOI MIIllTBS
REGULAR MEETING
DECEMBER 17, 1990
5250R(dlm)
- 3 -
''''
o
o
o
o
o
o
o
Annie Ramos, Director of Parks, Recreation & Community Services,
reported that the inventory's first phase would be the trees in the City's
rights of way, as described by the proposal. The second phase would include
the trees in the City's parks. She explained that in order to implement the
study, an inventory of all the existing trees would need to be accomplished.
This data will assist with future planning of planting and maintenance.
Furthermore, it will be instrumental in the budgetary process of projecting
the future costs associated with maintenance, upkeep or liability.
Mr. Henderson said that Mr. Moreno, Director of Public Services,
estimated that the City has approximately 100,000 trees. The adoption of this
plan will allow for the collection of information and analysis. This data
will be inputted into the GIS system.
The Mayor commented that many other cities have completed this
state-of-the-art process as far as taking care of the trees.
Commission Member Maudsley was concerned that this expenditure was Rot
a priority at this time.
Kenneth Henderson made reference to the current budgetary climate in
the staff report and noted that there were some initial misperceptions that
the existing City staff could execute the study by performing the duties
relative to inventory, cataloging, diagnosis and condition of the trees. He
stated that this was not the case. The type of qualified personnel, a
certified arborist or forester, that would be provided by the French Group is
necessary to carry out this program for the City.
Commission Member Minor made a motion, seconded by Commission Member
Reilly, to approve the Street Tree Master Plan as submitted by the Keith
French Group (Department of Public Services) and that budget authority of
$24,500.00 be approved.
Ayes: Commission Members
Commission Members
The motion carried by the following votes:
Estrada; Reilly; Flores; Minor; Pope-Ludlam. Roes:
Maudsley; Miller. Abstain: Rone. Absent: Rone.
7. Small Business Loan Between the City 'In" the Mad Greek (#lS)
(Mayor and C~ Council)
Mr. Henderson reported that a small business loan for $50,000 was
approved in August, 1989 to the Mad Greek Restaurant for the purpose of
constructing a patio area for its patrons. Subsequent to loan approval, the
Planning and Building Services Department did not approve the building permit
based upon certain City regulations. Accordingly, the client has submitted a
request amending that portion of the use of funds to be used instead for the
purchase and installation of an outdoor sign. The balance remaining in the
loan fund is $4,326.81 which would cover the production and installation of an
outdoor sign.
COIMISSIOR MIRUTES
REGULAR MEETING
DECEMBER 17, 1990
5250R(dlm)
- 4 -
ik..
o
o
o
o
o
o
o
The Mayor asked if this small business loan fund came from the
COlllllUllity Development Block Grant fund? Mr. Henderson said that it comes
from 1/2 of IX of the industrial development bond fee.
Commission Member Minor asked What happened to the $50,000 which was
borrowed in August of 1989, if the current balance is $4,326. Mr. Henderson
stated that the loan was to be used for a number of different purposes and the
enclosing of the patio was only one item. To the best of his knowledge the
other purposes were for the consolidation of debts and paying off some short
term debts which allowed them to take care of the long term financial needs.
Commission Member Pope-Ludlam stated that this situation was another
example of why the Development Department needs a professional planner on
staff.
Mr. Henderson said that there is currently serious internal discussions
and consideration is being given to this issue. A proposal was received from
the Director of Planning and Building Services regarding the master services
agreement and how best to provide planning services to the Development
Department. Staff has since revised the Small Business Loan guidelines for
construction projects. Preliminary written approval by the Planning and
Building Services Department is required prior to the application for
financial assistance being processed. Without such written, preliminary
approval, the application is considered incomplete and not subject to further
processing until such approval is provided.
Council Member Minor made a motion, seconded by Council Member Estrada,
to approve amendment of the loan proceeds from enclosing the patio to the
installation of an outdoor sign relating to Small Business Loan between City
and The Mad Greek (115).
The motion carried by the following votes: Ayes: Council Member
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
8. Water DeBartaent Loan
(C~ty Development c-f.ssion)
Commission Member Miller made a motion, seconded by Commission Member
Estrada to waive further reading of the resolution and adopt said Resolution.
RESOLUTION NO. 5258
RESOLUTION OF THE COMMlJlllITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE UNDERTAICING OF CERTAIN
TRANSACTIONS IN CONNECTION WITH THE ACQUISITION OF CERTAIN PROPERTY AND
MAICING CERTAIN FINDINGS AND DETERMINATIONS AS TO THE BEREFIT TO THE
SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF UNDERTAICING
SUCH TRANSACTIONS.
COMMISSION MINUTES
REGULAR MEETING
DECEMBER 17, 1990
5250R(dlm)
- 5 -
~,.~,:'.';
o
o
o
o
o
o
o
The motion carried by the followina vote: Ayes: CODDDission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
(Mayor and C_ COUDcll)
Council Member Miller made a motion, seconded by Council Member
Estrada, to waive further readina of the resolution and adopt said Resolution.
RESOLUTION NO. 90-501
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BEIlBARDINO, CALIFORNIA, AUTHORIZING THE SALE OF CERTAIN PROPERTY AND
MAKING CERTAIN FINDINGS AND DETERMINATIONS AS TO THE BEBEFIT TO THE
SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF UNDERTAKING
SUCH TRANSACTIONS.
The motion carried by the followina vote: Ayes: Council Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
Mr. Henderson reported that on June 21, 1990 the CODDDission approved a
loan of $4,965,000 to the Joint Powers Financina Authority for the purchase of
about fifteen acres of property at Arrowhead and Oranae Show. Since that
tiBe, a reassessment relative to the most appropriate use of the land, and
also the use of tax increment funds for the loan was done by the Development
Department and the Water Department. It was recODDDended, and conceptually
agreed upon to substitute tax allocation bond proceeds for the tax increment,
so that the tax increment could be returned to the Southeast Industrial Park.
The amount of outstandina tax allocation bond proceeds is $26,656,271.00; with
the original loan of $4,965,000.00; and, the accrued interest of approximately
$202,000.60 this comes to about $5,167,000.69. Staff is recommending approval
of the substitution of bond proceeds for tax increment and that the
Development Department would take title to the fifteen acres in question for
future redevelopment purposes. This transaction would also allow the
Department to reimburse the Water Department approximately $407,045 for their
architectural and engineerina services, the costs incurred for the abandoned
relocation and expansion project.
The Mayor stated that the primary advantage of using the bond proceeds
over usina tax increment is that bond proceeds are very restrictive. In this
instance, bond proceeds may be used. On the other hand, tax increment has
more flexibility. He felt this was an excellent move.
Councilman Reilly asked if any of the architectural money was
salvageable in the case of relocation. Mr. Henderson reported that it was.
Furthermore, he indicated in the last meeting, that if in fact the Water
Department proceeds with their expansion elsewhere, then a portion or all of
the $407,045 can be recouped.
COMlUSSION MINUTES
REGULAR MEETIIfG
DECEMBER 17, 1990
5250R(dlm)
- 6 -
o
o
o
".',!,:.'.:.,
o
o
o
o
9. Relocation of Develo-t Devartaent to City lIall Annu
Robert Temple, Acting Administrator for the Economic Development
Agency, and Wayne Overstreet, Director of Facilities Management, addressed the
Commission to provide information on the relocation of the Development
Department to the Thrifty Building as requested. They reported that the third
floor layout was redesigned and expanded to meet the needs of the Development
Department's reorganization. It will incorporate forty (40) offices as well
as a number of conference rooms. They reported that based upon the present
layout the move-in location deadline is estimated to be April 15, 1991.
There was a lengthy conversation regarding the use of contract labor as
opposed to city personnel. Mr. Overstreet said that contract labor could be
expensive, but noted that in some instances contract labor would be used.
It was reported that approximately $458,000 of the budgeted $600,000
has been spent to date. Councilwoman Estrada asked how much of that $458,000
would have to be redone based on the redesign of the floor layout. Mr.
Overstreet said approximately $40,000, but added that the revenue received
from this project will help offset the reduction in force action to assist in
the general fund budget.
No action required, information item only.
10. CLOSED SESSION
The Mayor and Common Council and Community Development Commission
adjourned to Closed Session at 11:38 a.m., for the following:
a. to confer with the attorney regarding pending litigation which has
been initiated formally to which the Commission is a party pursuant
to Government Code Section 54956.9(a);
b. to confer with the attorney regarding pending litigation pursuant
to Government Code Section 54956.9(b)(1), as there is significant
exposure to litigation;
c. to confer with the attorney regarding pending litigation pursuant
to Government Code Section 54956.9(c), so that the Commission may
decide Whether to initiate litigation;
d. to give instruction to the Commission'S negotiator on the purchase
of property pursuant to Government Code Section 54956.8;
e. to consider personnel matters pursuant to Government Code Section
54957.
COMMISSION KIRUTES
REGULAR MEETING
DECEMBER 17, 1990
5250R(dlm)
- 7 -
o
()
o
o
o
o
o
11. Ad1ou~ent
Commission Member Flores made a motion, seconded by Commission Member
Estrada, to adjourn the meeting of the COlllllllDlity Development Commissionl
Development Department and the Mayor and Common Council to Monday, January 7,
1991, at 11:00 a.m. in the Council Chambers, City RaIl, 300 Korth "D" Street,
San Bernardino, California.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Koes: Kone.
Abstain: Kone. Absent: Kone.
Respectfully submitted,
&.aIllUU.. J. ImlWBISOR,
Bzecutive Directorl
Secretary to the Caaa1s8ion
IOR:dlm
COMMISSIOK MINUTES
REGULAR MEETING
DECEMBER 17, 1990
5250R(dlm)
- 8 -