HomeMy WebLinkAboutR16-Redevelopment Agency
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DBVBLOPIIDr DBPAItJ:1oIur OF TIIB
CIn OF SO JUnIIInnnro
UOUBST FOR CCMlISSIOlI/CODIICIL ACTIOII
From:
ICENlIETH J. HENDERSON
Executive Director
Subject:
AllDICAlI IlATIOlUL
CAlI COIIPAlIY
Date:
April 10, 1991
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Synopsis of Previous Cu.aission/Coancil/Cu.aittee Action:
On January 24, 1991, the Redevelopment Committee considered this matter
and requested staff to proceed as recommended.
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Ree~Pnded Motion:
(C~itv Develo_ent C-fssion)
THAT TIIB COl.__~fi DBVBLOPIIDr CCMlISSIOII APPROVE TIIB mw. POIlITS AS
SET FORTH III TIIB ATTACHED STAFF REPORT AlID AUTIIOUZI AlID DIRECT AGENCY
COUIISBL TO PREPARE All .lCRR--.r 1lll:r.J5JIIl TIIB CCMlISSIOII AlID AllDICAlI
IlATIOlUL CAlI COIIPAlIY.
'-liIUUiJ:~' Bll:ecutive Director
Deve10paent Departllent
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Contact Person:
Ken Henderson
Phone:
5065: 5081
Project Area:
Northwest (mi)
Ward(s):
Six (6)
Supporting Data Attached:
Staff ReDort
FUNDING REQUIREMENTS:
Amount: $ N/ A
Source:
Budget Authority:
Commission/Council 1I0tes:
KJH:1ab:0153N
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Agenda Item 110:
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DBVILOPIIBIIT DBPA.unr.n.a:
S'l'AFF UPOJlT
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AaeriClUl IIatioual ClUl l'.-nllDV
Since October of 1990, staff has been in contact with representatives
from AmericlUl National ClUl Company (ARCC) regarding the acquisition of
land in the Northwest Redevelopment Project Area Industrial Park and
the development of lUl ARCC clUl-making facility. The site is currently
in escrow, which is scheduled to close on April 24, 1991. American
National Can Company has previously commissioned soils and related
tests from local firms.
Following is a summary of the proposed project:
1. The proposed plant would be approximately 220,000 square feet in
size. The zoning is IH.
2. Recent changes in the Development Code will allow the construction
of a metal building without the filing of a Conditional Use Permit
(CUP) application.
3. The plant would be a twenty-four (24) hour/three hundred, sixty-two
(362) day a year operation.
4. The completed development value is estimated at $55,000,000, which
will generate approximately $550,000 a year in tax increment, of
which $363,000 (sixty-six percent (66X)) would come to the
Department.
5. The plant would have its own internal wastewater treatment plant
and would use approximately 75,000 gallons of water per day. The
plant would also be a significant consumer of electricity.
6. Approximately one-hundred, twenty (120) jobs will be generated,
with additional jobs to be generated as a result of future
expansion.
Based upon meetings and teleconferences, staff has structured a
relatively simple and straight forward proposal to ARCC for its
consideration. The most significant, outstanding issue which surfaced
early in our discussions was the one-time sewer capacity charge of
$8.05/gallon. Multiplied by 75,000 gallons, this figure comes out to
be $603,750. American Nationsl Can Company personnel was not aware of
this fee prior to our initial meeting when Water Department personnel
was present. American National Can Company has also asked for job
training assistance in the amount of approximately $500,000, for a
total requested assistlUlce package of 1.1 million dollars. Staff
countered ARCC's request with the following proposal:
KJH:lab:0153N
COIIMISSIOIl MEBTIlIG
Meeting Date: 04/15/1991
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DBVELOPIIBlI'r DBPAauma.. STAFF IEPORr
AaericlID .aticma1 Can CcapaD;y
April 10, 1991
Page -2-
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1. Development Department to grant one-hundred (100) sewer capacity
rights valued at $226,000 to ARCC as partial payment of the
$603,750.
2. Development Department to finance with Municipal Water Department
difference of $377,000 over five (5) years. These payments would
be made as the property tax increment is generated by the project.
3. Development Department to facilitate, to the extent possible, the
acquisition by ARCC of Job Training and Partnership Act (JTPA)
assistance from the San Bernardino Employment and Training Agency.
Staff has received word from ARCC of its positive response to our offer
(see attached letter dated April 1, 1991). They would, however, prefer
some assurance that JTPA or some other type of asststance can be
committed to this project. Staff has conferred with SBETA staff and
they are willing to consider some type of on-the-job training and
customized training program for ARCC. They estimate the maximum amount
of assistance SBETA/Private Industry Council (PIC) could provide would
be $300,000. It is important to note, however, that the PIC cannot
commit JTPA funds it has yet to receive. American National Can Company
is aware of this technicality and would only want 80me type of
assurance that the City will facilitate to the maximum extent possible
the provision of JTPA a8sistance.
If the deal points as described above are approved by the Commission,
the City stands to gain in a number of important ways, as follows:
1. Increasing of our tax base.
2. Generation of one-hundred, twenty (120) new jobs.
3. Generation of additional tax increment for the Northwest
Redevelopment Project Area (sorely needed in light of assistance
package for West Side Plaza).
4. Significant water usage which greatly assists cashflow of Municipal
Water Department.
KJH: lab: 0153N
COIIIISSIO. IIBBTIRG
Meeting Date: 04/15/1991
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DEYBLOPIIEJIr DBPlutl:JIur StilT IBPORT
Aaericaa Baticmal Can COIlpaDy
April 10, 1991
Page -3-
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5. Significant payer of utility tax, thereby assisting City General
Fund.
6. Increases momentum for additional development in Northwest and
State College Industrial Parks.
I recommend adoption of the form motion.
~OB' Executive Director
Development Departaent
KJH:lab:0153N
CCMlISSIOB IIBBTIBG
Meeting Date: 04/15/1991
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American
.,.. Nationa' Can
ill APR,~~~rn
DEVELOPIBI' DEPARTMENT
April I, 1991
Mr. Kenneth Henderson
Executive Director
Development Department
City of San Bernardino
300 N. D Street
San Bernardino, CA 92418
Dear Ken:
Followinq up on our conversation of today, I am pleased to report
that American National Can has decided to purchase the site
identified at 5715 Industrial Parkway, in the San Bernardino
Northwest Industrial Park, and to build a new state of the art
beveraqe can plant.
This decision is conditioned on receivinq confirmation from you
that the financial assistance packaqe of $603,750 described in
your letter of January 8, has been approved at all levels, which
I understand should be forthcominq very soon. It is also
conditioned on receivinq city qradinq permits within the next few
days, which are needed in order to perform the necessary
environmental cleanup of the site, allowinq time to take and
evaluate new soil tests before our options on the land expire on
April 30. We appreciate any assistance you can provide in
expeditinq this process.
Assuminq these two issues are resolved in short order, we will
plan to exercise our options on the land and proceed with
construction of the plant.
We look forward to brinqinq this new operation on-line and
enterinq into a lonq term, mutually beneficial relationship with
the community of San Bernardino. I appreciate all the interest
and assistance provided by you, Bob Temple, your staff and the
Community Development Commission. As we move further into the
development and construction process, we will plan to work
closely with the Employment and Traininq Aqency towards
qualifyinq for and receivinq the traininq financial assistance
which we understand will be available to us, and will plan to
take advantaqe of the help you offered in facilitatinq our
obtaininq this assistance. Fred Lanqmaier and our enqineerinq
qroup also look forward to any help you can provide in
facilitatinq the development plan and construction permit process
once we qet started.
Americen National Can Company 8770 West Bryn Mawr Avenue Chicago, Illinois 60631-3542 (312) 399.3000
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Mr. Kenneth Henderson
Page 2
April 1, 1991
I look forward to hearing from you soon to confirm the financial
assistance package and the issuance of the grading permits.
Very truly yours,
,~ ;e~. ..
Te~~ l~smussen
Assistant Treasurer
TAR/ks