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HomeMy WebLinkAboutR02-Economic Development Agency JJ o o REDEVELOPMENT COMMITTEE MINUTES REGULAR MEETING April 18, 1991 4:00 p.m. The Regular Meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:17 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 PRESENT Mayor W. R. Holcomb; Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; John Hoeger, Development Division Manager, Development Department; Gary Wagoner, Development SpeCialist, 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 ATTENDANCE Sam Catalano, Central City Mall; Wallace Green, Central City Mall; Cassie MacDuff, the Sun Company; Michael Geber, Michael John Enterprises; Rodney Shain, Michael John Enterprises. Kenneth J. Henderson, Executive Director, requested item number "5" be taken out of order. . 5. PROPOSED SHOPPING CENTER - MASSACHUSETTS AND HIGHLAND AVEBllES Michael Geber, of Michael John Enterprises, Inc., provided an overview of the proposal to develop a 9.13 acre parcel by constructing a 100,000 square foot shopping center. The existing Stater Bros. market is the proposed anchor tenant, which will entice other businesses to the site. Mr. Geber stated that approximately twenty-five percent (25%) of the space available in the proposed shopping center has already been leased, the shopping center will assist in reducing unemployment in the blighted area, as well as provide approximately $816,000 annually to the City. Michael John Enterprises is requesting the Council to assist with approximately $2.5 million dollars of the total $4,000,000 of required equity for this project, as well as assist in the vacation of Massachusetts Avenue. REGULAR MEETING 5360R(dbl) - 1 - REDEVELOPMENT COMMITTEE MINUTES APRIL 18, 1991 ~ LJ o o Kenneth J. Henderson, Executive Director, stated this issue was brought forward to the Committee at this time for the purpose of providing project information regarding the scope of the operation; the developer's request for assistance, and; provide details with respect to the preliminary analysis. Two (2) areas of concern were identified during staff's analysis of the project: (1) high development costs, and; (2) lack of success in the current retail climate. These concerns, however, were addressed and the original proposal of $12,200,000 was found to be in line with comparable development in the area. The amount and extent of Department participation in the project have not been established and is subject to negotiation. However, the Redevelopment Committee was informed that a recommendation would be available for the May 9, 1991 meeting. RECOMMElUlATION Information only, no action required at this time. Staff recommendation will be forwarded to the Redevelopment Committee meeting on May 9, 1991. 2. GOLDEN VAT.T.RY CIVIC ASSOCIATION REODEST FOR FIBABCIAL ASSISTANCE Kenneth J. Henderson, Executive Director, summarized the staff report and recommended approval to the Community Development Commission of the funding request submitted by Golden Valley Civic Association (GVCA) for the rehabilitation of the community swimming pool and shower facilities in the amount of $22,854, and further, that said amount be appropriated from the collateralized mortgage obligation residual fund account. Discussion ensued regarding membership eligibility, qualifications and privileges; association dues; recreation programs provided, and; verification of CVCA non-profit SOl-C3 status. The Redevelopment Committee requested Ms. Betty Dillard be invited to attend the next meeting and that Golden Valley Civic Association provide specifics in writing relative to the following concerns: 1) provide verification of non-profit status (SOl-C3); 2) membership issue of who will patronize the facility, (dues paying members or the general public), and; 3) who will be maintain the facility and the extent of the commitment. RECOMMENDATION The Redevelopment Committee recommended this item be continued to the May 9, 1991 meeting. REGULAR IIBBTIBG 5360R(dlA) - 2 - REDEVILOPMEBT COMMITTEE MIRUTES APRIL 18, 1991 M o o 3. HOUSING FOR Il'IDEPBJmERT PARTJ.IIBRS - (Handout) Kenneth J. Henderson, Executive Director, distributed and summarized the handout relative to a request from Housing for Independent People, Inc., (HIP), for financial assistance relative to costs associated with the acquisition and rehabilitation of an existing apartment building located at 231 West 9th Street. HIP's primary purpose is to provide affordable "special needs" housing for developmentally disabled adults capable of living independently. Mr. Henderson reviewed staff concerns as itemized in the staff report. Gary Wagoner, Development Specialist, provided information relative to , attaining this type of housing through Goodwill Industries. Staff requested time to research the type of project proposed, assess the demand for the project, and conduct a full cost analysis. Mr. Henderson requested the issue be continued until the May 9, 1991 meeting based upon the information contained in the staff report. RECOMMEl'lDATIOW The Redevelopment Committee recommended this item be continued to the May 9, 1991 meeting. 4. ARDER & GUTHRIE RBLOCATIOW ASSISTAWCE - (Verbal Report) Dennis Barlow requested this item be deferred. RECOMMKl'lDATIOW The Redevelopment Committee recommended this item be continued to the May 9, 1991 meeting. 6. CLOSED SESSIOW The Redevelopment Committee recessed to Closed Session at 4:41 p.m. to discuss the following: b. Pursuant to Government Code Section 54956.9c, the Redevelopment Committee of the Development Department of the City of San Bernardino will convene in closed session to discuss possible litigation. d. Pursuant to Resolution No. 5272, the Redevelopment Committee of the Development Department will convene in closed session to discuss matters of sensitive negotiations with development clients. The Redevelopment Committee reconvened from Closed Session at 5:18 p.m.. REGULAR IlEBTING 5360R(dlm) - 3 - REDEVELOPMKBT COMMITTEE MINUTES APRIL 18, 1991 Jl o o 1. CElITRAL CITY MALL Chairwoman Estrada read the Revised Carousel Financing Concept dated April 18, 1991 which was submitted by Central City Company and read as follows: 1) Merchants Association borrow $876,000 from the RDA. for a term of ten (10) years, fixed interest rate of City Company will guarantee loan. Loan shall be 8%. Central 2) Central City Company will contribute $100,000 to the Merchant's Association to accomplish the total project. 3) No projected sales tax revenue will be used to offset the loan. 4) Central City Company will agree not to renew the theater's lease, but may extend them until a replacement tenant is found. 5) Merchant's Association will assume all liability from the carousel and train operation. 6) Profits, if any, from the carousel and the train will go to the Merchant's Association and will be restricted to promoting and advertising the Mall, retiring the RDA loan, and capital improvements in the public portions of the Mall and its parking areas. 7) RDA to protect public safety, reduce liability exposure, and operate the public areas in accordance with the Reciprocal Easement Agreement (REA) directive as a first class shopping center; will upgrade the parking lot lights to current light level design standards. Chairwoman Estrada provided the Committee's and staff's recommendations to the above proposal as follows: 1) Recommends interest rate at prime plus one (1), which at this time, is 10%. 2) No recommendation. 3) No recommendation. 4) Staff recommends renewal of lease on a month-to-month basis only. Staff does not wish this to be a condition on the agreement. 5) No recommendation. 6) No recommendation. 7) Staff would like to obtain a cost estimate of upgrading the parking lot lights from Wayne Overstreet, Director of Facilities Management. Staff does not wish this to be a condition on the agreement. REGULAR MEETING 5360R(dllll) - 4 - REDEVELOPMERT COMMITTEE MI'ROTES APRIL 18, 1991 ~ - . o o A lengthy discussion interest rates, term of the extended. ensued relating to loan amortization, variable loan, and projected interest costs if the loan was Chairwoman Estrada suggested Sam Catalano and staff meet to figure out the term of loan, based on $125,000 payback, and to explore any other options. She asked that figures be calculated at rates of 8%, 8% plus one, 9% and 9% plus one. Once the information is available, it would be reviewed with Timothy Steinhaus and the Mayor. The Council will be contacted to form a consensus and that the recommendation would be forwarded to the Community Development Commission for action at the May 6, 1991 meeting. RECOMMERDATIOR Chairwoman Estrada will review financial information and speak with Committee colleagues to determine consensus regarding this issue. The Redevelopment Committee recommended this item be forwarded to the Community Development Commission for action on May 6, 1991. 7. ADJOUllBMERT There being no further business, the meeting of the Redevelopment Committee was adjourned at 5:40 p.m., to May 9, 1991. APPROVED BY: Esther Estrada, Chairwoman Redevelopment Committee REGULAR MlBTIRG 5360R(dlm) - 5 - REDBVBLOPMRRT COMMITTEE MINUTES APRIL 18. 1991