HomeMy WebLinkAboutR03-Redevelopment Agency
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o DI!lVBI.01IID1' Im'ARIJBU' or vD
CI'.lY or SUI BI!:RDRDDl)
_ ,,_ lOR ~A"Tt....Un"lnlr'TT. ~
FraIl: 'l'DDIHY C. S'lmNHlWS, Jldm1nist:rator SUbject: CBrl'RllL CI'.lY IIaLto Ni!.-'-.
EOOllaUC DIlYeJ..1-......L ....y lOR I'D1IlrDL UlIISTAIIZ
Date: May 1, 1991
B)-..cpeis of PlWVious n-4"i~...MlIOCIIIIIittee act:iClIU
Q1 April 15, 1991, the lhIm"'lity DeYel~.t n-oi".,lim di"'Clmed this IIIIltter at
len;t:h an:! refer1.6d the IIIIltter to the RIIdev8l........d.. OCIIIIIittee.
R<< --~ 1IotioD:
(~",ity DMo811. -.t n-4..i_)
~..]...~ -rLt OCIIIIIittM .. -~
JOrICIl' A:
Tbe 1IEa1IImt'8 A88oCli.atiaD to b......_ $87',000 fJ:aI tbe DIMtl.1. --t
~. Tbe loaD tea 8bIIll be for tell (10) ,..n, fiDeS at: tbe
pn.. ute of ~ plus _ ~L (1%). 0IDtJ:&l City ~
will guanntee tbe loaD.
lL1.t,a.(&( B:
ClIIIltral City 0. 1. .'Z to ClCII1triJ:lute $100,000 to tbe lIEa1IImt's
A88clciatic:II1 to lie: '1<,1i.h tbe total pzoject.
(JfotioIIa 0aDtiDue4 to -.t
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TDI)'J!I! c. 11"1.....-..., :tor
JI('(WI '0 n.nl '1 --L ~
Ocntact Perscin:
Tim ~Ai_,.1Ksn Bel."''' son
5081: 5065
CD! (ll
Eb:rle:
Project Area:
central City (CX::l
ward(s) :
~ Data AttadIed:
PUNOllC ~:
~"f'f' Recort
Amount: $ 876.000
Balrce:
IU3get Authority:
n-oi...iOll/tw...Ml Notes:
o 'RS:K:JH: lab: 4324
CXHIIS9~ IIBB'l'DI3
JIIIetiJIq Date: 05/0'/1991
,~ :rt8B lb. .3
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o TSC:KlH:lab:4324
J:lElVBU)1IJII! Im'ARIJIIlNl'
~ for "'-4 -4Cl1l/--........1 acticm
May 1, 1"1
PIIge -2-
Redevel~tt. omnittee ~. ...._/mticn ccnt:inled...
.......r.l.l.al 0:
.....L.A,D D:
IOl'ICII H:
Jt:)IImII A:
IiDl'IClN B:
AlJ:....... c:
IOl'ICII D:
IOl'ICII H:
IOl'ICII P:
IOl'ICII G:
Ii) pmject:.d Bal. ta I.'WNIlIa will !:Ie UH 14.... to offMt t!Ie
Mercbant's AlI8OCiatiaD. loIID frail tb8 o.v.1.\_....lt DIplIrtIImlt.
'.ftIe MBcbant's AlI8OCiatiaD. to ....- all UphlHty frail t!Ie
CU'ClU8el l1li4 t.raiD cperatiaD.
Profits, if any, frail tb8 ~ l1li4 t.raiD cperatiaD will go to
tb8 lIim:lbImt's ~"'1.cm l1li4 will !:Ie nRdated to ~
l1li4 ~ tb8 Hall, ntiriDq tb8 o.nl ~ .t ~
1011D l1li4 CllPital ~~ :lD tb8 pJ'blio pozticlIIs of t!Ie Mall
l1li4 its pII..H'19 enu.
t",....m..t;y ~,.- At L ,.,.........-..cm,
(staff M< -o!Iat:ioD)
'.ftIe lIIJ:I:lbImt's MsooiatioD to J:>..t:a:ow "",000 fJ:aI tb8
o.nl ~ - t.~. '.ftIe loIID am sba1l !:Ie for ta (10)
.~, floatiJlq at; tb8 priM zate of iDt:en8t plus eM pex08ld.
(1%). 0IDtral City 0. 1.....~ will ~ tb8 loIID.
0IDtral City (I.-,,""'iJ to ClCII1t.rUuta $100,000 to tb8 lIm:abant's
AssocliatioD to ~14 .h tb8 total pmject.
Ii) pmje0te4 Bal. ta ...._ will !:Ie uHH-- to offMt t!Ie
lIm:abant's AlI8OCiatiaD. loIID frail tb8 Dsnl" .\.~.
0IDtral City 0.-.11....., will ... DOt to ~ tb8 tMater's 1_,
Illlt may at8Dd lIUCIIl 1_, CIIl . ~ J:lesis, until .
nplao--t teant; is found.
'.ftIe lIm:abant's ~.tiCIIl to _- all )4 .hl14 t;y frail t!Ie
ouausel l1li4 t.raiD qIC'lltiClll.
Profits, if any, frail t!Ie ou:ousel l1li4 tra1D qIC'lltiClll will go to
t!Ie l18J:dumt's assoc:iatiaD l1li4 will !:Ie r-41ated to pl'CIIIOtiJIq
l1li4 84vertisiJIq tb8 Hall, ntiriDq tb8 ~1.~ -"t IlIpB1't:IIIent
10l1D l1li4 CllPital ~ :lD tb8 pINio pozticlIIs of t!Ie Mall
l1li4 its p....4'19 enu.
oentral City Hall no -..."""1 will ClCII:IIb:ul:lt lID ?,,4'19 :lD t!Ie wall
1:loJ:deriDq tb8 IIOI1tMut """........ of its pII..H'19 lot sufficient :lD
si.. to facilitate pecSestrisD traffio.
0CWIIISSI(ti RmS.L"uG
JIIlItiD;r DIlte: 05/0'/1"1
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JllVlll'JWIIII!ifl. I8PAImIBtIr
&rA'I'I' M&aUKr
.......b:al db _n --- far ..............1 ---
on April 15, 1991, the nr-"'Iity DIIY8l_d. n-ni_iaI ..i....-'Id at lqth the
I'8lpISt: far fimrlcial. lUISistance IlUbllitted ~ OlouL...-..l. city (I. ..,ftlY nlative to the
insta1l.atia1 am cprat.icn of a carcusel. As a part of this project, the Mall
wculd be renl!IIIIBd CaraJsel Mall. A significant: port:.icI1 of the ..i...._ien revolved
aramd the followinq i...._:
1. C\.u.....L lloJ.L_.L between the city am o..lL...al city n ",611Y (requires annual
millic:n ""'11",. subsidy).
2. city/Agency fimrlcial. assistance to lU1 IllCist.blg luIiness.
3. ihe fimrlcial. Malth of o..tt....al city O..,-N/y am its ability to finllnce the
!&~~.
4. ihe hplct en the ckJwnt:own o..tt....alllJsiness District if the Mall canrU
Sl""'V'fI'" 'Y ........-te in the IIIlI%tet place.
Beca1lse this matter was p'- en the l!IgIIl1da as a ..i.........ien itlm, the n-ni_ic:n
was not al:ll.e to taka lU1Y fcmaal act:ic:n am the matter was referred to the Redeve-
I_It O:IIIIIIittse.
on April 18, 1991, the Rsdsvel_lt ODIdttse ccnsideJ:1ld this matter am lIIIIde a
five (5) part N:u..-'ldatic:n to the nr-"'Iity D8I/8l. ,........l n-ni -ic:n (see recan-
1IIIIlDld llDti.cIls). 'lhi.s re. .....-txSlltia1, if ~, wculd lCllU1 $876,000 to the
Jferc:Mnt'.1lssociatic:n at the prhB rate of interest plus c:ne ~__.t (U), re-
quire o...L...al city 0. ..,...ny to ClCI1tr1b1t:e $100,000 to the Merdlant's Associatic:n to
a...........,' ish the project, preY8llt: the use of sal_ tax XWII8IUt as lU1 offset aqainst
the Merdlant's 1lssociatic:n lCllU1 frc:m the DIIY8l_d. IlIlprt:ment, require the Mer-
dlant's AI'"'<X'iatia1 to "....- all liability frc:m the carcusel an:i train operation
am 1....L...J.ct profits frc:m the carcusel am train operatic:n to pI:'aIICIt:jnJ am adver-
tisin;J the Mall, ret:iri1q the DIIY8l_d. DBparbIIsnt lCllU1 am capital bpravements
in the plblic port:icns of the Mall and its parking areas.
ihe staff J:IeCo ....-rmtia1 includes virtually all of the ODIdttse's N(' .....A1ldation,
1:ut differs subst:antia11y frc:m the Redevel_1L o:mnittse ~> ....-txSlltia1, lIS
follows:
1. ihe interest rate en the 1"-~ lCllU1 wculd be flClll't.in;J rather than fixed at
the prime lemin;J rate plus c:ne peroellt (1%).
2. RequiJ:es 0I:t1tU."Al city ~ to not renew the theater lease. o...L...al city
0.",6nY' JJIl!:;f, bcwever, extend the lease en a ~ blIsis until a re-
III ar....-. .L tenant: is famd.
3. Requires OefhL...al city n-o,p."IY to 0CIllIIb:uct lU1 ~ in the wall I:lorderin;J
the scutheast comer of its parking lot sufficient in size to facilitate pede-
strilU1 traffic.
TCS:KIH: lab: 4324
~OII ........r.LlllG
If88tiDq Date: 05/06/1991
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JZ9BID1IIIBRl' ~ ~ MI5l'UICI:
~..l cLt.y JIa1l a.qu.st for pf.........4..1 AIIIIiat:aJICle
Kay 1, 1"1
Peg8 -2-
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RIo_ upc:n prior t'I~""""'icnI of the n-n~""ia1, the CDIIi~ an:1 the foregoi.n;J,
staff n,.& - ~lds ~ of the fom mct.i.cms listed umer the staff
'lDI7DIY c.
tor
,
_= 4-"-1-10~.. L" .4lnt. ~
o 'lal:ICH:lab:4324
lYWMTaaTrW .....-ruG
(IIIetiDg Date: 05/06/1991
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CENTRAL CITY MALL CAROUSEL
1. The City of San Bernardino Redevelopment Agency will loan the
Central City Mall Merchant's Association (COMA, Inc.) a nonprofit
corporation, $876,000, subject to the fOllowing terms:
A. Loan proceeds will be used for the purchase, delivery and
installation of a first class carousel, sign work to complete
the name Change to the Carousel Mall, improvements in the
public areas of mall and its parking areas, improvements to
the ezterior of mall buildings, marketing, promotion and
other costs related to Change from Central City Mall to the
Carousel Mall.
B. Central City Company will guarantee the loan.
C. The loan will become due and payable if Central City Company
sells the mall.
D. The term of the loan shall be ten (10) years.
E. The interest rate of the loan shall be eight percent (8\)
fized.
F. Merchant's Association shall pay 1/4 of a point loan
origination cost to Agency to cover the administrative costs
of Agency.
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2. The Central City Four Theater lease expires December 31, 1992.
If Central City Company renews the theater lease beyond a
month-to-month tenancy, Central City Company will, effective the
date of such renewal, contribute $3,000 per month to Agency for
additional security costs.
3. In order to enhance overall mall security and to minimize any
problems that the theater may contribute to in its vicinity,
Central City Company shall contribute $1,000 per month effective
May 6, 1991, with the first partial month pro-rated, to provide
additional security hours over and above those called for in the
Mall Security Agreement. The Redevelopment Agency shall
contribute a matching amount for additional security hours over
and above those called for in the Mall Security Agreement.
4. The Central City Mall Merchant's Association and the
Redevelopment Agency have had a long standing dispute over
approximately $70,000 Merchants say Agency owes to Merchants. To
avoid litigation, Agency and Merchants agree to settle said claim
for the total amount of $50,000. Effective May 1, 1991, Agency
agrees to increase its payment to Merchants to 1/6th of the
current mall parking control budget.
5. The Central City Mall Merchant's Association agrees to contribute
a lump sum of $50,000 to the City Fine Arts Commission to promote
the arts and cultural activities in the City.
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6. Central City Company agrees to pay the cost to staff the
Information Center at the Mall, to monitor the camera system and
maintain and repair the closed circuit T.V. camera system at an
annual cost of not less than $50,000 and will continue to do so
as long as there is not a better state-of-the-art system. If a
better state-of-the-art system is implemented, the Central City
Company will bear the cost of installation and operation.
7. The Central City Mall Merchant's Association will assume all
operational costs of the carousel and train operations, including
utilities, maintenance and security. The Merchants will name the
City and Agency as additional insured on their insurance for the
carousel and train operations. All income from the carousel and
train operations will go to the Merchants and will be used to
offset operational costs, advertise and promote the Mall and for
improvements to the pUblic areas of the Mall.
8. The Reciprocal Easement Agreement dated December 24, 1970,
between the City of San Bernardino, the Redevelopment Agency of
the City of San Bernardino, Central City Company, J. C. Penney
Co. Inc., the Harris Company, Monwar Property Corp., Upham
Development Company and Connecticut General Mortgage and Realty
Investments requires the City and Agency to repair and upgrade
the Agency owned portions of the mall. The mall contends that
City/Agency has not fulfilled all of its commitments of repair.
Central City Company and Agency agree to have a qualified
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5/6/91
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independent third party consultant investigate all public
facilities at the mall to determine the extent and estimated
cost of necessary repairs and upgrading. Agency agrees at
its cost to take all necessary action to correct any repairs
and deficiencies and to consider any upgrading that might be
beneficial to the City and the Central City Mall, reported by
consultant within a reasonable period of time. If Central
City Company and Agency disagree as to the selection of
consultant or the amount or extent of repairs and upgrading,
the matters at issue shall be submitted to an independent
arbitrator for a decision, subject to the rules of the
American Arbitration Association. Central City Company
agrees to pay for 1/2 of the cost of the consultant.