HomeMy WebLinkAboutR02-Economic Development Agency
o
o
o
~,
~
.L
~
,
...
.
o
o
REDEVELOPMEB'l COIftlTTEB
MINUTES
REGULAR MBBTING
April 4, 1991
4:00 p.m.
The Regular Meeting of the Redevelopment Committee was called to order
by Chairwoman Esther Estrada at 4:16 p.m., in the Economic Development Agency
Conference Room, Fourth Floor, City Hall, 300 North "D" Street, San Bernardino.
ROLL CALL
Roll call was taken with the following members being present:
Chairwoman Esther Estrada, Committee Members Jack Reilly and Michael Maudsley.
STAFF PRESERT
Mayor W. R. Holcomb; Timothy C. Steinhaus, Administrator, Economic
Development Agency; Kenneth J. Henderson, Executive Director, Development
Department; John Martin, Senior Assistant City Attorney; John Hoeger,
Development Division Manager, Development Department; Lorraine Velarde,
Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the
Council; Gerald Butler, Director, Mobile Home Rent Board; Deborah Marez,
Recording Secretary, Development Department.
OTHERS IN ATTBlOlARCB
Cassie MacDuff, The Sun; Lori Zito, Elderly Development Corporation.
1. WILMORE DBVELOPMEB'l CORPORATION (ab: ELDERLY DEVELOPMEB'l CORPORATION)
EXCLUSIVE RIGHT TO IIBGOTIATB (ERR) Al:V~L
Kenneth J. Henderson, Executive Director of the Development Department,
stated the Community Development Commission referred this item to the
Redevelopment Committee because of concerns expressed relative to the economic
status of prospective tenants renting apartments in the proposed facility and
the impact on the downtown area. Correspondence identifying the Commission's
concerns in connection with the project was transmitted to Elderly Development
Corporation (EOC). Staff has since received a proposal from Elderly
Development Corporation along with a $5,000 "good faith" deposit in connection
with the Exclusive Right to Negotiate (ERN) agreement. He noted that the
applicant has indicated, under separate cover, that they anticipate spending
approximately $75,000 in connection with all the activities set forth in the
staff report, including the feasibility analysis.
REGULAR MEETING
5347R (dIm)
1
REDEVELOPMENT COMMITTEE
APRIL 4, 1991
.".~
o
o
()
-
o
o
Chairwoman Estrada requested clarification between "key assumptions as
to economic feasibility" and "feasibility study." According to Ms. Estrada,
staff report did not clearly define if a feasibility study would be conducted
during the six (6) month period, in addition to the key assumptions. She felt
that the feasibility study should accomplish specific findings and
determinations and requested that these be defined.
Ms. Lori Zito of Elderly Development Corporation reported to the
Committee as to what the intentions and expectations of conducting the
feasibility study are, as well as, criteria to be reviewed in terms of
lenders. She also indicated that two (2) months would be sufficient time to
conduct the study as a brief economic and demographic analysis relative to the
various economic levels of the area's current residents has been completed.
One-hundred, fifty (150) units are anticipated, of which seventy-five (75)
will be geared towards the frail and elderly and the remaining seventy-five
(75) will be market rate/low income units. The project will be esthetically
designed to complement the downtown area, provide housing for two (2) district
economic stratas and ensure the highest and best use of the site.
The Redevelopment Committee considered this matter and recommended
approval of this item with the proviso that the Exclusive Right to Negotiate
(ERN) agreement be amended to reflect the development and submission of an
economic feasibility study during the period of the Exclusive Right to
Negotiate (ERN) agreement.
RECOMMEImATIOl'l
The Redevelopment Committee recommended this item be forwarded to the
Community Development Commission for approval on April 15, 1991 and
that the changes relating to the feasibility study be made prior to the
Commission meeting.
2.
CCS WATER TIIBMB pARr (SURF CITY USA) PROPOSAL
John Hoeger, Development Division Manager, reported that negotiations
have reached an impasse and that staff is presently exploring several
possibilities, such as scaling back the project, or to consolidate the water
park on the southerly property of the flood control chsnnel. Meanwhile, the
Planning Commission has recommended land use changes to the Central City South
Plan. Planning staff is re-drafting the Plan to reflect these changes prior
to presentation to the Council on or after April 15, 1991.
RECOMMEImATIOl'l
.The Redevelopment Committee received and filed this item.
REGULAR MEETING
5347R (dIm)
2
REDEVELOPMENT COMMITTEE
APRIL 4, 1991
o
o
o
o
o
3.
AfoumJJI'IUIT TO CO.ft.uuTY DBVBLOPMBRT COMKrSSIOlf PERS AGUEMDT
(Previously Provided Under Separate Cover)
Chairwoman Estrada stated that the documentation relating to
Redevelopment Committee Agenda items numbered three (3) through (7) seven were
reviewed. Committee Member Maudsley requested that each of the Councilmembers
receive copies of these items prior to the next regularly scheduled Community
~Development Commission meeting. Kenneth J. Henderson, Executive Director,
Development Department indicated these items had already been provided to each
Councilmember.
RECOMMElfDATIOlf
The Redevelopment Committee recommended this item be forwarded to the
Community Development Commission for consideration and/or action at the
April 15, 1991 meeting.
4. IDA MAlfA"KflKlIIT AlfD COD'IDD'l'IAL EMPLOYEE COIlPllllSATIOlf AlfD BElfEFITS PLAII
(Previously Provided Under Separate Cover)
RECOPlMElfDATIOlf
The Redevelopment Committee recommended this item be forwarded to the
Community Development Commission for consideration and/or action at the
April 15, 1991 meeting.
5.
EDA PERSORlfEL POLICIES AlfD PROt:Rllml1!S FOR MID-IWU.GERS
(Previously Provided Under Separate Cover)
RECOflllElfDATIOlf
The Redevelopment Committee recommended this item be forwarded to the
Community Development Commission for consideration and/or action at the
April 15, 1991 meeting.
6. EDA PBRSORlfEL POLICIES AlfD PROCEDURES FOR GElIERAL UlfIT EMPLOYEES
(Previously Provided Under Separate Cover)
RECOflllElfDATIOlf
The Redevelopment Committee recommended this item be forwarded to the
Community Development Commission for consideration and/or action at the
April 15, 1991 meeting.
REGULAR MEETING
5347R (dlm)
3
REDEVELOPMENT COMMITTEE
APRIL 4, 1991
IQ
I
()
o
o
o
7.
EDA EMPLOYEE COMPllllSATIOR T.KVR'UI AIID SAT.AIlY RAlIGES
(Previously Provided Under Separate Cover)
RECOMMERDATIOR
The Redevelopment Committee recommended this item be forwarded to the
Community Development Commission for consideration and/or action at the
April 15, 1991 meeting.
8. MOBILE HOME pAIlI!' RDlTAL ASSISTARCE PROGRAM
Kenneth J. Henderson, Executive Director, explained that this item was
on the Redevelopment Committee agenda because it would require the use of
Twenty Percent (20X) Set Aside funds. The Mobile Home Rent Board staff is
recommending that the Redevelopment Committee recommend to the Mayor and
Common Council and Community Development Commission approval of the transfer
of the Mobile Home Park Rental Assistance Program from the County of San
Bernardino to the City of San Bernardino. Further, staff is recommending that
the Redevelopment Committee recommend to the Community Development Commission
appropriation of $100,000 in Twenty Percent (20X) Set-Aside Housing Funds to
re-capitalize the Mobile Home Park Rental Assistance Program.
Gerald Butler, Director of Mobile Home Rent Board, summarized for the
Redevelopment Committee the Mobile Home Task Force findings as noted in the
staff report. Out of the hundred, sixty (160) applications received and
processed, forty-two (42) applicants qualified and are receiVing funding
assistance. He reported that the $50,000 of Twenty Percent Set Aside Funds
allocated to the program has been expended. The Mobile Home Rent Board's
recommendations to the Mayor and Common Council were reviewed and discussed.
Lengthy discussion ensued regarding the percentage of applicants which
qualify for assistance under the present and proposed eligibility criteria;
the actual amount which should be set aside to fund the program based on the
expected dissemination of funds; the impact the program would have on social
security recipients due to increase income, and; the establishment of a staff
position to assist in the completion of the application and other related
duties.
Kenneth Henderson stated that the more liberalized threshhold
requirements reduce the minimum amount used for housing from fifty percent
(50X) to thirty (30X) of income. This recommendation is consistent with the
Housing and Urban Development (RUD) Guidelines, but would automatically
qualify a significantly higher number of households.
Committee Member Maudsley was concerned that the annual allotment of
$100,000 from Twenty Percent (20X) Set-Aside funds would not be s~fficient to
cover the anticipated increase in eligible households.. He felt a system to
appropriately administer the various functions involved in the program such as
staffing, computer time and resources, distribution of monthly checks should
be in place and requested that the program be scrutinized to ensure the budget
figures are realistic.
REGULAR MEETING
5347R (dlm)
4
REDEVELOPMENT COMMITTEE
APRIL 4, 1991
o
o
o
o
o
RECOIMDDATIOI!I'
The Redevelopment Committee took action continuing this matter for
thirty (30) days.
9. DISPOSITIOI!I' AI!I'D DBVELOPMDIT ACRRRMRII'I' BBTWEEI!I' REDBVELOPMDIT AGEI!I'CY AI!I'D
COUI!I'TY OF S8 BBRllnDIRO ROUSII!I'G AUTHORITY
Kenneth J. Henderson, Bxecutive Director, reviewed the staff report
relating to the fifty-one (51) unit senior housing complex that the agency is
joint venturing with the County of San Bernardino Housing Authority which is
near the interestion of 16th Street and Medical Center Drive. The
groundbreaking for this complex was held on March 5, 1991. The City
previously appropriated $1.2 million from the twenty percent set aside housing
fund and the total project is anticipated to cost $2.7 million. The Housing
Authority will be making up the difference.
Chairwoman Estrada requested that the anticipated net profit and
flexibility for the use of the fund come back to the Development Department as
opposed to the Housing Authority. The net profit could then be used for other
housing projects designated by the Commission.
The Redevelopment Committee recommended to the Community Development
Committee Commission approval of the Disposition and Development Agreement
(DDA) between the Redevelopment Agency of the City of San Bernardino and the
County of San Bernardino Housing Authority, provided, however, that language
be incorporated within the DDA which states that any net operating profit
generated from the administration of the project be remitted to the City on a
pro-rata basis in an amount equal to the City's share of the construction
financing. This stipulation can be found at Section 2.8.7 of the subject
Agreement.
RECOMMEI!I'DATIOI!I'
The Redevelopment Committee recommended that the Community Development
Commission approve and adopt the DDA between the Redevelopment Agency
of the City of San Bernardino and the Housing Authority of the County
of San Bernardino for the development of a fifty-one (51) unit senior
housing complex. This item will go forward to the Community
Development Commission on April 15, 1991 with the stipulated changes.
10. I!I'BW FROlllTIBR OPTIOI!I' ACRlmlwo: (WEST SIDB PLAZA)
Kenneth Henderson, Executive Director, stated that items numbered 10
through 13 pertained to the West Side Plaza and distinguished between the
reasons for the separate items and how they related to each other. The DDA's
specified deal points as set forth in the Option Agreement and reflected in
the staff report was reviewed and discussed.
REGULAR MEETING
5347R (dIm)
REDEVELOPMENT COMMITTEE
APRIL 4, 1991
5
o
Q
o
) .
.
1
-
-
o
o
A lengthy discussion ensued relating to the line of credit to be issued
by Wells Fargo to secure float loans; the unresolved 1.5 percent annual letter
of credit fee; the opportunity to renew float loans if necessary; and other
related issues.
The final Option Agreement executed by New Frontier officials was
reviewed and approved by Agency Counsel and the Redevelopment Committee. The
Redevelopment Committee recommended this item go forward for approval.
RBCOMlmmATIOIl
The Redevelopment Committee recommended this item be forwarded to the
Community Development Commission on April 15, 1991 for approval.
11. AMBImMKWr TO WEST SIDK PU7.A DISPOSITION AND DKVBLOPMElIIT ACRKRMRl!IT _
(Verbal Report)
Kenneth Henderson provided information relevant to the amendment to the
West Side Plaza Disposition and Development Agreement for the Committee.
IplCOMMKlllDATION
The Redevelopment Committee recommended this item be forwarded to the
Community Development Commission on April 15, 1991 for approval.
12.
WEST SIDK PU?A CDBe FLOAT LOAN - (Verbal Report)
Kenneth Henderson provided information relevant to the West Side Plaza
CDBG Float Loan.
RBCOMMKlllDATION
The Redevelopment Committee recommended this item be forwarded to the
Community Development Commission on April 15, 1991 for approval.
13. WEST SIDK PU7.A - FLOAT LOAN GlJARARTD:S (WRT.T.!I FARGO LINK OF CREDIT) -
(Verbal Report)
Kenneth Henderson provided information relevant to the West Side Plaza
Float Loan Guarantees relating to Wells Fargo line of credit.
A lengthy discussion ensued relating to the line of credit to be issued
by Wells Fargo to secure float loans; the unresolved 1.5 percent credit fee;
the opportunity to renew float loans if necessary; and other related issues.
RBCOMMBlllDATION
The Redevelopment Committee recommended this item be forwarded to the
Community Development Commission on April 15, 1991 for approval.
RBGULAR MEETING
5347R (dim)
6
RBDEVELOPMEI!IT COMMITTEE
APRIL 4, 1991
o
o
o
o
o
14. NEW ITEM - ORABGB SHOW Jm'ABSION
Mayor Holcomb handed out a letter from Bruce D. Varner, President of
the National Orange Show, requesting an agreement between the City of San
Bernardino Development Department and the National Orange Show (NOS) relative
to the site improvements for the new $9,000,000 Satellite Wagering Facility.
The NOS requested financial assistance for the installation of the pavement,
street lights, sewer and water service. In return the NOS will commit to the
following: 1) license fees generated at the Satellite Wagering Facility; 2)
renew the fire station lease for 25 years; 3) provide landscaping on Arrowhead
Avenue, and; 4) continue to make grounds available for driver training for
City police, fire and Omni-Trans.
Chairwoman Estrada said the negotiations of sewer and water hookups
only could be determined by the Water Board and added, if the waiver was not
obtained, additional assistance might be requested. She asked if any building
permits were being acquired and paid by NOS relative to the new facility. A
suggestion that the loan be paid back against their future receipts off the
satellite wagering was made. Discussion ensued regarding annexation and
licensing fee exemptions.
Chairwoman Estrada recommended a cost benefit analysis be conducted,
particularly in providing police security services to maintain the NOS
year-round activities.
RECOMMEBDATION
The Redevelopment Committee recommended that the Community Development
Commission deny the request for assistance. This item will be
forwarded to the Community Development Commission meeting on April 15,
1991.
6.
CLOSED SESSION
The Redevelopment Committee recessed to Closed Session at 5:32 p.m.,to
discuss the following:
a. Pursuant to Government Codes Section 54956.8, the Redevelopment
Committee of the Development Department of the City of San
Bernardino will now convene in Closed Session to discuss with its
negotiator the purchase, sale, exchange or lease of real property,
and give instructions to its negotiator concerning the price and
terms of payment for the purchase, sale, exchange or lease of real
property.
d. Pursuant to Resolution Number 5272, the Redevelopment Committee of
the Development Department will convene in closed session to
discuss matters of sensitive negotiations with development clients.
REGULAR MEETING
5347R (dIm)
7
REDEVELOPMENT COMMITTEE
APRIL 4, 1991
()
o
o
o
o
7 . ADJotJRIIIMDT
There being no further business, the meeting of the Redevelopment
Committee was adjourned at 6:30 p.m., to April 18, 1991.
APPROVED BY:
Esther Estrada, Chairwoman
Redevelopment Committee
REGULAR MEETING
5347R (dlm)
8
REDEVELOPMENT COMMITTEE
APRIL 4, 1991
o
o
o
-~
-
-
-
o
o
14. lIIEW ItEM - ORANCB SHOW EXPAIISIOR
Mayor Holcomb handed out a letter from Bruce D. Varner, President of
the National Orange Show, requesting an agreement between the City of San
Bernardino Development Department and the National Orange Show (NOS) relative
to the site improvements for the new $9,000,000 Satellite Wagering Facility.
The NOS requested financial assistance for the installation of the pavement,
-street lights, sewer and water service. In return the NOS will commit to the
following: 1) license fees generated at the Satellite Wagering Facility; 2)
renew the fire station lease for 25 years; 3) provide landscaping on Arrowhead
Avenue, and; 4) continue to make grounds available for driver training for
City police, fire and Omni-Trans.
Chairwoman Estrada said the negotiations of sewer and water hookups
only could be determined by the Water Board and added, if the waiver was not
obtained, additional assistance might be requested. She asked if any building
permits were being acquired and paid by NOS relative to the new facility. A
suggestion that the loan be paid back against their future receipts off the
satellite wagering was made. Discussion ensued regarding annexation and
licensing fee exemptions.
Chairwoman Estrada recommended a cost benefit analysis be conducted,
particulsrly in providing police security services to msintsin the NOS
year-round activities.
RECOMMERDATION
The Redevelopment Committee recommended that the Community Development
Commission deny the request for assistance. This item will be
forwarded to the Community Development Commission meeting on April 15,
1991.
15.
CLOSED SESSION
The Redevelopment Committee recessed to Closed Session at 5:32 p.m.,to
discuss the following:
a. Pursuant to Government Codes Section 54956.8, the Redevelopment
Committee of the Development Department of the City of San
Bernardino will now convene in Closed Session to discuss with its
negotiator the purchase, sale, exchange or lease of real property,
and give instructions to its negotiator concerning the price and
terms of payment for the purchase, sale, exchange or lease of real
property.
d. Pursuant to Resolution Number 5272, the Redevelopment Committee of
the Development Department will convene in closed session to
discuss matters of sensitive negotiations with development clients.
REGULAR MEETING
5347R (dlm)
7
REDEVELOPMENT COMMITTEE
APRIL 4, 1991
o
()
o
-
o
o
16. A MnlJlUU'IKIIT
There beina no further buBineaa, the meeUna of the Redevelopment
Committee was adjourned at 6:30 p.m., to April 18, 1991.
APPROVED BY:
~&
'Eather Estrada, Chairwoman
Redevelopment Committee
REGULAR MEETING
53472 (dlm)
8
REDEVELOPMENT COMMITTEE
APRIL 4, 1991