HomeMy WebLinkAboutR03-Economic Development Agency
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IlAYOR AlID COIBlIl COllB'CIL,
CO"llIlU:ti DBVELOPIIDT COIRISSIOIl AlID TIIB
JOlIn POWBRS FIIWtCIIIG AlmIORITY
OF TIIB CITY OF SAK BEUARDIKO
IIIIIUTES
JOlIn REGULAR IIDTIlIG
April 15, 1991
11:00 a.lI.
The Joint Regular Meeting of the Mayor and Common Council, Community
Developllent Commission and the Joint Powers Financing Authority was called to
order by Mayor W. R. Holcomb at approxillate1y 11:15 a.II., on Monday, April 15,
1991, in the Council Chambers, City Hall, 300 North "D" Street, San
Bernardino, California.
ROLL roll.T.
Roll call was taken with the following members present: Commission
Members Esther Estrada; Jack Reilly; Jess Flores; Kichae1 Maudsley; Tom Minor;
Valerie Pope-Ludlam; Norine Miller. Absent: None.
STAFF PRBSBKr
Tillothy C. Steinhaus, Administrator, Economic Development Agency;
Kenneth J. Henderson, Executive Director, Development Department; Dennis A.
Barlow, Senior Assistant City Attorney; John Hoeger, Development Division
Manager; Rachel Krasney, City Clerk, and; Deborah Marez, Recording Secretary,
Development Department.
OTHERS III ATTBlmAJICB
Timothy Sabo, Sabo and Green, Special Counsel; John Pierce, New
Frontier; Sam Catalano, Central City Mall.
PUBLIC CO*DTS 011 ITEMS ROT 011 TIIB AGBlIDA
There were no public comments.
COllSBKr CALBlUlAR
1. JOlIn POWBRS FIIWtCIlIG AlmIORITY
(Caaaunity Development Commission)
Commission Member Pope-Ludlam made a motion, seconded by Commission
Member Reilly, to continue the regular meeting of the Joint Powers Financing
Authority to Monday, May 23, 1991.
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The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Abaent: None.
2. COMIBITY IlEVELOPImr.r C(M{[SSIOII MIlmTBS
(Coamunity Development COIIII\ission)
Commission Member Pope-Ludlam made a motion, seconded by Commission
Members Reilly that the Community Development Commission minutes dated March
18, 1991 and April 1, 1991, be approved as submitted in typewritten form.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
3. REDEVBLOPImr.r COMMITTEE MIlmTBS
(Community Development Commission)
Commission Member Pope-Ludlam made a motion, seconded by Commission
Member Reilly, to receive and file the Redevelopment Committee minutes dated
February 7, 1991 and March 14, 1991 as submitted in typewritten form.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
4. EXr.T.J111IVB RIGIlT TO IO:GOTIATK WITH WILMORE DEVBLOPImr.r CORPORATIOII
(RT.D1!IIT.Y IlEVELOPImr.r CORPORATIOII) FOR SEllIOR CITIzn PROJECT AT CORIIER
OF FIfTH AND "B" llftRrl'l;
(Comnmity Development C_ission)
Commission Member Pope-Ludlam made a motion, seconded by Commission
Member Reilly, to authorize the Executive Director of the Development
Department to execute an Exclusive Right to Negotiate Agreement with Wilmore
Development Corporation (aka: Elderly Development Corporation).
The motion carried by the following vote: Ayes:
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam;
Abstain: lIone. Absent: None.
Commission Members
Miller. Noes: Nane.
END OF COIISDT CALBImAR
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5.
RBOUBST FOR ASSISTAllCE IIATIORAL ORA1K:R SHOW
(COImUD.ity Develolllllent C_ission)
MOTIOB: That the Development Department be authorized to enter into
an agreement with the National Orange Show to assist in the
financing of certain public improvements on Arrowhead Avenue
in an amount not to exceed $43,000 (upon certification by
Director of Public Works/City Engineer).
Chairman W. R. Holcomb requested that this item be continued to the
next Community Development Commission meeting of May 6, 1991.
6. BXPAIISIOB OF CO-UlUTY DEVELOPMRIIT COMMISSION FlllICTIONS
(Mayor and C_ Council)
H!:OLUTION 91-142
RBSOLUTIOB OF THE MAYOR AIID COIR>N COUNCIL OF THE CITY OF SAIl
BEIl.lU.IDIBO AImUlIBG RBSOLUTIOB IUIIBEIl. 81-594 AIID DELEGArIBG TO THE
COlan. un DEVELOPIIElIT COIlIIISSIOB OF THE CITY OF SAIl BEIl.lU.IDIBO CERTAIB
POWBIl.S AIID AUTHORITY IB C01llllCTIOB WITH THE 1UJU.GDmm: AIID OPBRATIOB OF
THE ECOllOllIC DEVELOPIIElIT AGElICY AIID RBSCIBDIBG RBSOLUTIOB IUllBERED
91-99.
.'
Council Member Maudsley made a motion, seconded by Council Member
Estrada, that the resolution be adopted.
The motion carried by the following vote: Ayes: Council Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
7. BSTART.ISHMEIrr OF BCOBOMIC DEVELOPMRIIT ACRIICY POSITIONS
(Mayor and Coaaon Council)
RBSOLUTION 91-143
RBSOLUTIOB OF THE MAYOR AIID COMMOB COUNCIL OF THE CITY OF SAIl
BBRIIAIl.DIBO CALIFODIA, RBSCIBDIBC RBSOLUTIOB IUIIBEIl. 99-101 PERTAIBING
TO THE BSTABLISHMDT OF CERTAIB CITY POSITIONS TO STAFF THE BCOBOKrC
DEVELOPIIElIT AGDCY.
Council Member Maudsley made a motion, seconded by Council Member
Estrada, that the resolution be adopted.
The motion carried by the following vote: Ayes: Council Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
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(CaaBDDi~ Developaent ComBission)
USOLOTIOII 5277
USOLOTIOII OF 1'IIB C........l'I.lTY DBVBLOPIIDT ClMIISSIOII OF 1'IIB CITY OF SAIl
BBRlIAmlIIIO. CALIFORlIIA. BSTABLISIIIlIG CDTAIII POSITIOllS TO STAn' 1'IIB
BCOllOllIC DBVBLOPIIDT AGBlICY AlID APPROVIIIG CDTAIII JOB DBSCRIPrIOllS III
COftllBCTIOII TBBRBWITH.
Commission Member Maudsley made a motion, seconded by Commission Member
Estrada. that the resolution be adopted.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
8. ArumIJl'll51'lI TO Cm-..lUTY DBVBLOPIIDT COIMISSIOII PElS ACltlha",,'"l:
(C-=i~ Developaent C~ission)
USOLOTIOII 5278
USOLOTIOIl OF 1'IIB COftowl'l.lrY DBVBLOPIIDT COtMISSIOII OF 1'IIB CITY OF SAIl
R'RI!RnDmo. CALIFORlIIA. ADrIlORIZIlIG 1'IIB ~ OF VARIOUS PROVISIOIIS
OF 1'IIB PUBLIC BMPLO'DBS' RBrIlW'WU SYSDM AGJuwoumr III COftllBCTIOII WITH
1'IIB RBSrRUCTlJRIlIG OF 1'IIB BCOIlOMIC DBVBLOPIIDT AGBlICY.,
Commission Member Maudsley made a motion, seconded by Commission Member
Estrada, that the resolution be adopted.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
9. BCOlIOMIC DBVBLOPIIDT AGBlICY MAlIAGmomI!lT AlID CONFIDBllTUT. BMPLOYBB
COMPBlISATIOII AlID BBllBFITS PUR
(C~ity Development Commission)
USOLOTIOII 5282
USOLOTIOR OF 1'IIB COMMIIlIITY DBVBLOPIIDT COtMISSIOIl OF 1'IIB CITY OF' SAIl
BBRlIAmlIIIO. CALIFORlIIA. BSTABLISBIlIG 1'IIB BCOIlOMIC DBVBLOPIIDT AGBlICY
IWIAGl5l'lI5m: AlID CONFIDBlI'lIAL BMPLO'DB COMPBllSArIOII AlID BDBFITS PLU.
Commission Member Maudsley made a motion, seconded by Commission Member
Estrada. that the resolution be adopted.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
JOINT REGULAR
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10.
ECOROllIC IlBVELOPImIT AGDCY PBRS01lllRf. POLICIES AIm PBOCImI1IlRS FOR
III~CD!l AIm GDBRAL UlIIT JlMPLOYKBS
(Community Development Commission)
USOLOTIOII 5279
USOLOTIOl'f OF THE COIl_un DBVIlLOPIIBl'fr COIInSSIOl'f OF THE CIn OF SAIl
IlR1l1lnnIlIO, APPRClVIl'IG CDrAU PDSOIUUL POLICIES AIm PROCJwuuS FOR THE
COhosulun IlBVELOPIIBl'fr COMMISSIOII OF THE CIn OF SAIl BJl:DARDIIIO,
ECOIlOllIC IlBVELOPIIBl'fr AGDCY, CRIIRIIAT. UlIT JlMPLODBS AIm CDrAIII
PDSOIUUL POLICIES AIm PBOClwuUS FOR THE COII_.Iun DBVIlLOPIIBl'fr
COMMISSIOII OF THE CIn OF SAIl BJl:DARDIIIO, ECOIlOMIC DBVIlLOPIIBl'fr AGBl'fCY,
IIID-IWl&.GJl:RS .
Commission Member Maudsley made a motion, seconded by Commission Member
Estrada, that the resolution be adopted.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
11.
ECOROllIC DBVIlLOPImIT AGDCY JlMPLOYKB CUl'II'_SATIOII I.RVRT.!: AIm SAUIlV
IlAllGES
(Community Development Commission)
USOLOTIOl'f 5280
USOLOTIOl'f OF THE Co.-...J.t'Y DBVIlLOPIIBl'fr COIInSSIOl'f OF THE CIn OF SAN
BBDARDIIIO, CALIFORIIIA, BSTABLISBIl'IG CUlU'_liATIOIl LEVELS AIm SALARY
IlAllGES FOR JlMPLODBS Bl'IGAGBD III ACTIVITIES FOR THE ECOROllIC DBVIlLOPMEBT
AGBl'fCY .
Commission Member Maudsley made a motion, seconded by Commission Member
Estrada, that the resolution be adopted.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
12. lIBW FRORTIBR OnIOIl AC:VRt!IowIr (WEST SIDE PLAZA)
(C~ty Development Commission)
Kenneth J. Henderson, Executive Director, summarized the staff report
relating to the Disposition and Development Agreement (DDA) and the deal
points of the Option Agreement which remain in effect for four (4) years from
the date of issuance of a Certificate of Completion on Phase I. Chairman
Holcomb was concerned about the length of time that the Option Agreement would
tie up the property requested that the DDA be reviewed to ascertain whether
this interpretation was correct.
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The item was tabled pending review of the Disposition and Development
Agreement (DDA).
13. FIRST AImltIlftlmI TO TIlE DISPOSITIOR ARD DBVELOPIIERT AGlllI:klOKIIT (DDA) WITH
REW PKOIITID (WEST SIDE VI.&7.')
(C~ty De'l'elolBent C~ssion)
RESOL1ITIOR 5281
RESOImIOR OF TIlE c:or....ull.lTY DBVELOPIIERT COIIIISSION OF TIlE CITY OF SAR
Bn.AlmtllO APPROVIIIG .l r.RIl'I"TB AtuinwmIU; IIllIIBD OD TO TIlE DISPOSITION
ARD DEVELOPIIERT AGUaIrwo; BY ARD BETWEBR TIlE IIDBVELOPIIERT AGDCY OF
TIlE CITY OF SAR BDlIAIDIBO ARD REW FROlITIn C(8IERCIAL PROPERTIES, INC.
(Northwest Rede'Yelopaent Project Area).
Commission Member Reilly made a motion, seconded by Commission Member
Maudsley, that the resolution be adopted.
The motion carried by the fOllowing vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
Kenneth J. Henderson, Executive Director, explained that the First
Amendment to the DDA set forth the specific roles and responsibilities of the'
Agency, the City, and County with respect to the CDBG float loans which would
be used as an integral part of the project finanCing. Chairman Holcomb added
the amendment was necessary to obtain the $2,750,000 float loan with the'
County.
14. WEST SIDE VI.'7.& FLOAT LOAR C1T'1l'1I'I'nS (WRT.T.!I 1I',1lc::tl LID OF CREDIT)
(COIIIIIUD.i ty DevelolBent CODdssion)
Chairman Holcomb questioned the reasons for securing the letter of
credit with one hundred percent (IOOX) collateral of redevelopment cash
funding for which a I 1/2X letter of credit fee would be assessed. He felt it
was not economically prudent to secure the line of credit with 100X cash
collateral and recommended eliminating the credit fee by exploring other
alternative options, or by using the collateral itself.
Timothy Sabo, Special Counsel, reported the I 1/2X letter of credit fee
issue was conveyed to Wells Fargo and they stated it was their standard "
practice to require the I 1/2X letter of credit fee. The Commission was
informed that there was an unresolved issue regarding the agreement between
the City, the Redevelopment Agency and the County which because of some
hold-harmless language was not ready for recommendation. Additional
discussions between Kenneth Henderson, Tim Sabo and the County's staff and
council will be conducted to resolve this matter.
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Lengthy discussion ensued regarding the impact of HUD I S memoranda on
the loan; the lending entity's requirement for the letter of credit, and; the
substitute sources of funding available in the event an immediate need for
monies was necessary.
Mayor Holcomb recommended tabling the item. He requested the County be
contacted by Special Counsel to explore other options the County would accept
in lieu of a letter of credit.
Commission Member Maudsley made a motion, seconded by Commission Member
Pope-Ludlam to continue this item in the afternoon.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
u. IIEW nOIlrIER onIO. ACV1!1!\ou5nr (WEST SIDE PI.A7.A)
(COJBUDity DeveloplDeJlt Coaaission)
MOTIO.:
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO APPROVING A CERTAIN OnION AGREEMENT
BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO AND NEW FRONTIER PROPERTIES, INC., (A California
Corporation. )
John Pierce, Chairman of New Frontier Commercial Properties, provided
highlights of the Option Agreement for the Commission. The Option Agreement
becomes effective upon certificate of completion of Phase I which is the
development of the shopping center.
Chairman Holcomb recommended purchasing the entire parcel as one unit,
as well as factoring in all costs to determine an equitable option price. He
felt the DDA should stipulate that costs include all the land and not just the
acreage. The deal points were to be clear and concise and all loose ends
resolved before finalizing the Option Agreement to avoid future litigation.
Since the City was a major partner in the project, the City should also share
in a major part of the proceeds. He recommended a two-week continuance to
review the document and ensure it protects the City's rights and is legally
sound.
Commissioner Pope-Ludlam was concerned that the two-week continuance
would have a negative impact on the development of the West Side Plaza. She
reminded the Commission the process was worked out three years ago and
questioned further redundancy and delay.
Kenneth J. Henderson said the continuance would present no urgency
with respect to the option agreement. The language the Mayor requested will
be incorporated in the Option Agreement pursuant to the applicable provisions
of the DDA.
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Lengthy discussion ensued as to the scheduled time frames set forth in
the DDA as it relates to various stages of development; legal-technical
issues; division of profits, and; the degree of partnership.
Commission Member Miller made a motion, seconded by Commission Member
Maudsley to continue the item in two weeks.
The motion carried by the following vote:
Estrada; Reilly; Flores; Maudsley; Minor; Miller.
Pope-Ludlam. Abstain: None. Absent: None.
Ayes:
Noes:
Commission Members
Commission Member
15. DDA FOR FIfTY-OlIIE Ull UlUT SDIOR HOUSING COMPLEX - IIORTIlWEST CORNER
OF 16TH !I'1'1l"R'l' AIm MEDICAL CEImlR DRIVE
(Coamunity Development C~ssion)
Kenneth J. Henderson, Executive Director, stated the Redevelopment
Committee requested that language be incorporated into the Disposition and
Development Agreement (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. The stipulation was made to Section 2.8.7 of the subject Agreement.
Commission Member Pope-Ludlam made a motion, seconded by Commission
Member Estrada to approve and adopt the attached Disposition and Development
Agreement (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. .
The motion carried by the following vote:
Estrada; Reilly; Flores; Maudsley; Minor; Miller.
Pope-Ludlam. Abstain: None. Absent: None.
Ayes:
Noes:
Commission Members
Commission Member
16. AMBRICAlI IIATIOlUL CAlI COMPAlIY
(Community Development C~ssion)
Commission Member Miller made a motion, seconded by Commission Member
Pope-Ludlam to approve the deal points as set forth in the attached staff
report and authorize and direct Agency Counsel to prepare an agreement between
the Commission and American National Can Company. .
The motion carried by the following vote: Ayes: Commission Membe'rs
Estrada; Reilly; Flores; Maudsley; Minor; Miller. Noes: Commission Member
Pope-Ludlam. Abstain: None. Absent: None.
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17.
I!RII"I'V'T. CITY .".T.
(C_ity Development C_ission)
Chairman W. R. Holcomb provided historical information between Central
City Mall Corporation and the City of San Bernardino pertaining to annual
financial SUbsidies for operating costs, security, maintenance and repairs,
utilities and provision and maintenance of the mall's parking. The general
fund contributes in excess of a million dollars a year to subsidize the mall.
He felt it was a question of whether or not private enterprise should protect
their investment, or if the City should protect private enterprises's
investment. He recommended that unless the facts showed the money was needed
and that Central City could not sufficiently generate the funds, that the
monies not be approved.
A list of Central City Mall's capital requests and improvements which
totaled $1,004,000 was reviewed. The money being requested would pay for the
purchase and installation of a carousel and fees relating to the mall's name
change and other improvements.
Timothy C. Steinhaus, Administrator of the Economic Development Agency,
reported the financial information from the mall was received and analyzed.
The staff recommended against any type of direct grant to the mall unless the
City would receive additional revenue.
A lengthy discussion ensued regarding the purchase, installation and
operation of the carousel, alternative ways by which the carousel could be .'
attained in conjunction with the City, the possible relocation of the mall'~
anchor tenants and its impact on the mall, and whether direct subsidy to the
mall was prudent and beneficial. .
Council Member Estrada felt the subsidy would be an investment on
behalf of the City. She stated the mall employs approximately 2,000 Jobs,
cleans up blight and reflects City pride.
COIMISSIOlf IlEMBER POPB-LUDLlDI WAS EXCUSED AT 12:08 P.M.
Commission Member Estrada said the premise of evaluating the revenue of
each applicant should be used as criterion to all applicants requesting
financial assistance and specifically noted the National Orange Show's recent
request for funding.
COMKISSIOlf IIEIIIlER POPB-LUDLlDI RErIJIlDD AT 12:10 P.M.
COIMISSIOlf IlEMBER FLORES WAS EXCUSED AT 12:10 P.M.
Sam Catalano, General Manager of Central City Mall commented on the
longstanding partnership with the City in respect to the Mayor's previous
statements and provided several reasons supporting the mall's new image. He
pointed out than an economic study previously conducted, which anslyzed the
economic impact of the mall on the City, revealed substantial net gain to the
City. Furthermore, CCM did not ask the City for $1,000,000 but requested
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approximately $488,000 (which was approximately 1/2 of the amount to change
the image) as a commitment to the City to repair it. He noted the renovation
of the mall would increase sales and generate revenue for the City and
explained that the profits from the carousel would go towards repaying the
City for their loan.
C(RIISSIOR IIBMBBll FLORES JUS",[UKI.UI;D AT 12:14 P.M.
Mayor Holcomb suggested the City be allowed to purchase and install the
carousel in which case the profits would then go directly to the City, rather
than to the Merchant's Association. Another option suggested was to make a
loan at prime plus one for other renovations.
Mr. Catalano stated the carousel's profits was to be the primary source
towards repayment of the loan and the profits were necessary to amortize the
loan.
COMMISSIOBBll MIBOB WAS EXCUSED AT 12:38 P.M.
COMMISSIOBBll MIBOR IlETlIUED AT 12 :41 P.M.
C(RIISSIOIlER ESTRADA WAS EXCUSED AT 12:41 P.M.
C(RIISSIOBBll ESTRADA IlETlIUED AT 12:42 P.M.
C(RIISSIOBBll MILLER WAS EXCUSED AT 12:42 P.M.
Chairman W. R. Holcomb recessed the meeting for lunch at 12:43 p.m. and
continued the issue until 2:00 p.m..
MKKTIIG RBCOftYKRKU
At 2:01 p.m. the meeting of the Community Development Commission and
the Mayor and Common Council was called to order by Chairman W. R. Holcomb.
ROLL r..'.T~
Roll call was taken with the following being present: Commission
Members Esther Estrada; Jack Reilly; Jess Flores; Michael Maudsley; Tom Minor;
Pope-Ludlam; Norine Miller. Absent: None.
STAFF PRBSDT
Timothy C. Steinhaus, Administrator, Economic Development Agency;.'
Dennis Barlow, Senior Assistant City Attorney; Rachel Krasney, City Clerk;
Deborah Marez, Recording Secretary, Development Department. .
OTHERS III ATTENDANCE
Sam Catalano, Central City Mall.
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17.
CKII'I'RAT. CITY MALL
(C~ty Development Co.dsaion)
Chairman Holcomb stated the partnership between Central City Mall (CeM)
and the City cost the taxpayers $1,013,651 a year based on 1990's expenses.
In turn, sales tax of $1,149,855 from the sales at the mall was received. An
itemization of the project was presented as follows: 1) upgrade the mall
parking lot and lighting, $225,000; 2) repair, sealcoat and restripe the mall
parking area, $150,000; 3) repair/repaint and restripe the 3-level parking
structure, $125,000; 4) replace major areas of the mall roof, $275,000; 5)
complete the conversion of the three outside fountain planters which would
reduce maintenance problems, $25,000; 6) replace the public address system,
$25,000; 7) improve the interior and exterior directional sianing, $85,000;
8) cover malls, brick columns and planters with tile, $250,000. The total
cost is $1,160,000.
Mr. Catalano explained the list was prepared at the request of the
Redevelopment Committee and staff because they wanted to know what it would
take to do the project right. Hence, the list read enumerated various
projects within the City-owned areas of the mall that should be done pursuant
to the agreements already in place.
Discussion ensued regarding contractually obligatory issues pursuant to
the maintenance standards between the Redevelopment Agency and the City, the
reciprocal easement agreement pertaining to deferred maintenance, and
disclosure of confidential financial information.
.
Commission Member Estrada made a motion, seconded by Commission Member
Pope-Ludlam to end the discussion and refer the item to the Redevelopment
Committee as a "public" item on April 18, 1991.
The motion carried by the following vote: Ayes: Commission Members
Estrada; Reilly; Flores; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None.
Abstain: None. Absent: None.
MEETIBG RBCUlIVJn'I.KD
At 3:58 p.m. the meeting of the Community Development Commission and
the Mayor and Common Council was called to order by Chairman W. R. Holcomb.
HOLL t!.T.T.
Roll call was taken with the following being present: Commission-
Members Jess Flores; Michael Maudsley; Pope-Ludlam; Norine Miller. Absent:
Commission Members: Esther Estrada; Jack Reilly; Tom Minor.
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lITAW PDSmrr
Timothy C. Steinhaus, Administrator, Economic Development Agency;
Dennis Barlow, Senior Assistant City Attorney; Rachel ICrasney, City Clerk;
Deborah Marez, Recording Secretary, Development Department.
OTHERS III ATTEBDA1ICE None.
14. WEST SIDE PT.A7.A FLOAT WAll C1JAIlAII'I'RR!I (WRT.U FARGO LINE OF CUDIT)
(COIaUIlity Deve10Pllent Cu.mission)
Timothy C. Steinhaus, Administrator, Economic Development Agency,
requested this item be continued to Wednesday to allow adequate time for the
County of San Bernardino to respond.
Commission Member Maudsley made a motion, seconded by Commission Member
Flores to continue this item to Wednesday, April 17, 1991.
Flores;
Absent:
The motion carried by the following vote: Ayes: Commission Members
Maudsley; Pope-Ludlam; Miller. Noes: None. Abstain: None.
Commission Member Estrada; Reilly; Minor.
18. Cl.n!;ED SESSIOll
There were no Community Development Commission issues to discuss in
Closed Session.
19. AI\.TnUklvmnT
Chairman Holcomb adjourned the meeting of the Mayor and Common Council,
Community Development Commission and the Joint Powers Financing Authority at
3:56 p.m., to Wednesday, April 17, 1991, at 10:00 a.m., in the Council
Chambers of the City Hall, 300 North "D" Street, San Bernardino, California.
Respectfully submitted,
t.J5mus-LJI J. HElIDERSOB "
EXecutive Directorl
Secretary to the Commtssion
JOINT REGULAR
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COMMISSION MINUTES
APRIL 15, 1991
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IlAYOJl AIID COIIMOII COUlICIL AIID
DB COII__.J.ft DBVELOPMDr COIIIISSIOlI
OF DB CIft OF SAIl BBJllI.UDIBO
MIIIUTBS
ADJotJDBD IlBGDLAJl IIBBTIBG
April 17, 1991
10:00 a.lI.
The Adjourned Regular Meeting of the Mayor and Common Council and the
Community Development Commission was called to order by Chairman W. R. Holcomb
at 10:11 a.II., on WedneSday, April 17, 1991, in the Council Chambers of City
Hall, 300 North "D" Street, San Bernardino, California.
JlOLL CAT.T.
Roll call was taken with the following members present: Chairman W. R.
Holcomb; Commission Members Esther Estrada; Jack Reilly; Jess Flores; Michael
Maudsley; Tom Minor; Valerie Pope-Ludlam; Norine Miller. Absent: None.
STAFF PIlESDr
Timothy C. Steinhaus, Administrator, Economic Development Agency;
Kenneth J. Henderson, Executive Director, Development Department; John "
Hoeger, Manager, Development Division; Dennis A. Barlow, Senior Assistant City
Attorney; Shauna Edwina, City Administrator; Rachel Krasney, City Clerk,
and; Deborah Marez, Recording Secretary, Development Department. .
POllLIC COmoll51US 011 Il'IMS BOT OB DB ACKlmA.
There were no public comments.
2.
(CONTINUED FROM APRIL 15, 1991)
WEST SIDB pu?& FLOAT LCAII G1JARABTBES (wru,ll FAIlGO LID OF CREDIT)
(Coammity Development Coa.ission)
Kenneth J. Henderson, Executive Director, Development Department,
reported that the Department of Housing and Urban Development (BUD) was .
contacted with respect to the potential substitution of collateral for the
letters of credit. The proposed concept was being considered on a preliminary
basis and discussions between the Los Angeles and national offices were being
conducted to determine how this could be accomplished. HUD will be reporting
back before the end of the day. Mr. Henderson pointed out that there was a
May 1, 1991 deadline with respect to the fact that the Agency has to certify
that all funds are available for the project.
ADJOUKl'llW REGULAR
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COtwlISSIOB MINUTES
APRIL 17, 1991
38
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Discussion ensued regarding the financial advantages of using
substitute collateral, retention of the interest earnings while the funds were
on deposit in favor of the County, what types of securities would be
acceptable, and whether the County would consider accepting one, two or three
year treasurY notes with a repurchase agreement.
The Mayor recommended a resolution be drafted which would supplant the
three (3) resolutiona in A, B, C and form motion D. Staff was directed to
prepare a resolution which would delegate to the Executive Director the
discretion to provide security for the float loan agreement.
Dennis Barlow, Senior Assistant City Attorney, noted that resolution
could be composed and the amendment executed by interdelineation.
The Mayor requested continuance of this item until later in the
afternoon.
1.
(CONTINUED FROM APRIL 15, 1991)
lIEW FROBrIER OPUOIf AC:R1!~ (WEST SIDE PT.A7.A)
(Coamunity Development CoBlission)
Kenneth J. Henderson, Executive Director, explained that at the April
1, 1991 Commission meeting, concerns were raised regarding specific references
to the DDA set forth in the Option Agreement and profit sharing. To improve
the Option Agreement, Agency special counsel incorporated explicit text in t~e
document rather than making references to the DDA for the sake of reducing
potential confusion. However, negotiations are still pending with respect to
profit sharing and whether or not the Agency would receive 40% of the proceeds
on the five-acre parcel.
Chairman Holcomb stated all these concerns should be included in one
document. Mr. Henderson agreed and stated specific reference phrases and
language would be spelled out in the Option Agreement. Also, once
negotiations are completed, the information about the proceeds of the sale of
the five acres parcel would be incorporated in the Option Agreement.
The Mayor continued this issue until the afternoon session.
I'IEE'I'IIfG RECOIfVEBED
At 2:50 p.m. the Adjourned Regular meeting of the Community Develbpment
Commission! Development Department and the Mayor and Common Council was ~alled
to order by Chairman W. R. Holcomb.
ROLL CAT.T.
Roll call was taken with the following being present: Commission
Members Esther Estrada; Jack Reilly; Jess Flores; Michael Maudsley; Tom Minor;
Norine Miller. Absent: Commission Member Pope-Ludlam.
ADJOURNED REGULAR
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COIlMISSIOIf MIImTES
APRIL 17, 1991
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STA" PD:SBIIT
Timothy C. Steinhaus, Administrator, Economic Development Agency;
Kenneth J. Henderson, Executive Director, Development Department; John Hoeger,
Project Manager, Development Division; Dennis Barlow, Senior Assistant City
Attomey; Rachel Krasney, City Clerk; Deborah Marez, Recording Secretary,
Development Department.
1. REW FROIITIER OPTIOII ACRI<_Kl'IT (WEST SIDE PLAZA)
(Ccmmnmity Development Cu.mission)
MOTIOII:
RESOLUTION OF THE COMMUNITY DEVELOPMEIIT COMMISSION OF THE
CITY OF SAN BERNARDINO APPROVING A CERTAIN OPTION AGREEMENT
BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO AND'REW FRONTIER PROPERTIES, INC., (A California
Corporation. )
Timothy C. Steinhaus, Economic Development Agency Administrator,
requested this item be continued to the May 6, 1991 meeting.
2. WEST SIDE PJ.A7.A n.oAT TnA. C1TAIlAIITKRlJ (WIn.U FARGO LID OF CREDIT)
(C~ty Development CllBIission)
The Chairman of Community Development CODDllission requested a resolution
be drafted which would supplant the three (3) resolutions (motions A, B, C and
form motion D). Staff was directed to prepsre a resolution which would
delegate to the Executive Director authority to provide security for the float
loan agreement in any one or a combination of the following ways:
1) The acquisition by the Agency of an irrevocable, unconditional,
call upon demand, "AA" letter of credit in an amount not to exceed
three million, four hundred thousand dollars ($3,400,000.00) at a
rate not to exceed an annual payment of 1.5".
2) United States securities in the form of one (I), two (2), and/or
three (3) year treasury notes with an accompanying repurchase
agreement in a total amount not to exceed three million, four
hundred thousand dollars ($3,400,000.00).
3) The appropriation and allocation of Redevelopment Agency funds in
an amount not to exceed Three Million Four Hundred Thousand Dollars
($3,400,000.00) as a cash deposit. .
ADJOUUED REGULAR
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COIIMISSIOII MIRUTES
APRIL 17, 1991
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The new resolution was read as follows:
-!lOLUTIOIlIlO. 5283
DSOLUTIOII OP TIll COII_lIrTY DEVBLOHIElIr COI!IIISSIOII OP TIll CITY OP SAIl
B1!'ImAImIllO. DBLBGArIIIG TO TIll BD"u:rul5 DIDCTOR TIll AUTIIORITY TO MAD
AIm AUTBORIZB CBR'UIII nlWlCIAL GUAlWft'BBS WITH DGARD TO TIll WEST SIDE
PLAZA PROJECT.
Commission Member Estrada made a motion, seconded by Commission Member
Miller waive further reading, and adopt the resolution.
The motion carried by the following votes:
Estrada. Reilly, Flores, Maudsley, Minor. Miller.
None. Absent: Commission Member Pope-Ludlam.
Ayes:
Noes:
Commission Member
None. Abstain:
3. CLOSED SESSIOII
There were no Commission items to be discussed in Closed Session.
4. AR.TOUllRMBIIT
That the meeting be-adjourned to Monday. May 6, 1991. at 11:00 a.m. in
the Council Chambers of the City Hall. 300 North "D" Street, San Bernardino,
California.
Respectfully SUbmitted,
~Il J. HEllDERSOII.
EZecutive Directorl
Secretary to the Commission
ADJOUUED REGULAR
5355R (dla)
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COI!MISSIOII MI1IllT.BS
APRIL 17. 1991