HomeMy WebLinkAboutR14-Economic Development Agency
o
o
o
o
o
DEVELOPMDT DBP.l&umrcr OF TIll
CITY OF SJ1I _AI1DlBO
REDDEST FOR COIIMISSIOlf/COURCIL ACTIOR
From: KENNETH J. HENDERSON
Executive Director
Subject:
B.A.B DEVELOPMDT CORPORATION
FIRST ~
Date: JUNE 21, 1991
Synopsis of Previous ComBissian/Council/COBBittee Action:
6/20/91
The Redevelopment Committee recommended approval of a First Amendment
to the Owner Participation Agreement as modified.
-
Recommended Botion:
(COIIMDlIITY DEVELOPMDT CCMaSSIOlf)
THAT TIll COmwn.l:rJ DEVELOPMDT COIIMISSIOlf AIlTIIORIZB TIll BXECllTIOlf OF A nRST
~ TO TIll 0WREJl PARrICIPArIOlI AGHhgun: Imlw-.. TIll DEVELOPMDT
DBPAl:umn-J: AlID B.A.B. DEVELOPMDT COIIPAIY.
15
Administrator
-I......... ~~l" Ezecutive Director
Develop.ent Departaent
Contact Person: Ieen Henderson/Ezell James
Phone: 5065/5081
Project Area: Rorthwest/State ColleRe
Ward(s): Six (6)
Supporting Data Attached: Staff Retlort/Matl/ARreement
FUNDING REQUIREMENTS:
Amount: $ None
Source:
R/A
Budget Authority: RIA
COBBissian/Council Rotes:
ICJH:EJ :kalt:4025H
CCMaSSIOlf IIDTIlfG '-/
lleeting Date: 7/1/91 I
Agenda Item No.
o
o
o
o
-0
DBVELOPMBlIT DBPDUmn.c
STAFF UPOn'
B.A.B. DBVELOPMBlIT CORPORATIOII FIRST APml'lJJl'll5l'IT
On March 19, 1990, the Community Development Commission authorized an Owner
Participation Agreement (OPA) with B.A.B. Land Development Company to construct
bridges together with a connecting roadway across Cable Creek and Devi1's Canyon
flood control channels. Due to delays by the U.S. Army Corps of Engineers, it
is the desire of B.A.B. to execute a first amendment to the OPA to extend the
performance schedule set forth in the Agreement by one hundred eighty (180)
days. The amendment will also clarify the definition of "Participant
Improvements" and simplify the process for disbursement of the loan proceeds.
BACl:GRomm
B.A.B. owns a forty-four (44) acre site located south of Interstate 215, between
the Cable Creek and Devils Canyon flood control channels (see attached map).
Pursuant to the OPA, the Department will loan B.A.B. $2,130,000 at an interest
rate of ten and one quarter percent (10 1/4%) with interest only payments
quarterly for seven (7) years from the completion of improvements. The loan is
secured by a Deed of Trust in first position which can be partially released
upon payment of one-hundred-fifty percent (150%) proportionate payments ($76,230
per acre), with a minimum release of five (5) acres. Covenants, Conditions and
Restrictions (CC&R's) must be recorded which, among other things, require the
grantees of all or any portion of the subject property to enter into a
Development Agreement(s) with the Agency. Failure to do so gives the Agency the
right to set the granting deeds aside.
B.A.B. will build two (2) bridges and a roadway connecting Industrial Parkway
and Ba1lmark Parkway, including curbs, gutters, landscaping and underground
utilities all built to City specifications and on alignment approved by the City
Engineer. The bidding and selection process is subject to Agency approval.
As shown in the letter marked Exhibit "B", there have been delays by the U.S.
Army Corps of Engineers in processing plans for the Devils Creek crossing. This
delay has prompted the need for an amendment.
PROPOSED APml'llJl'll51'lJ:
The deal points are as follows:
1. Loan is to be disbursed upon the recommendation of an independent
disbursement agent and approval of the Executive Director. This will
conform to other agreements such as Portugal & Neal and will reduce the
time required for processing through the Committee and the Commission.
2. The affected dates in the Schedule of Performance have been extended by
one hundred eighty (180) days.
3. The definition of "Participant Improvements" is expanded to clarify that
payment in full of the existing Deed of Trust is an authorized use of
funds.
KJB:EJ:kak:4025B
COMMISSIOII ~.cll'lG
!leeting Date: 7/1191
o
o
o
o
o
DEVELOPMENT DEPARTMENT STAFF REPORT
H.A.B. First Amendment
June 21, 1991
Page -2-
BBllEFITS
-,
Providing access to the area will promote the development of the forty four
(44) acres. The surrounding area would also benefit by the construction of a
road across the property connecting Industrial Parkway on the north to Hallmark
Parkway on the south. The joining of these two (2) roads would provide better
access for users in the State College and Northwest Industrial Parks and also
improve emergency services access to the properties on the north.
Based upon standard assumptions, the Department can expect the following to
take place on the forty-four (44) acres:
Industrial Buildings
575,000 SF
$11,900,000
$78,540/yr
$69,000/yr
$476,000
Completed Value
Tax Increment (.6%)
Utility Tax
Development Fees
New Jobs
500 Jobs
These are in addition to the health and safety benefits of creating a proper
vehicular circulation system for the State College Business Park and the
Northwest Industrial Park.
RECUl'II'II<1'IuATIOR
On June 20, 1991, the Redevelopment Committee recommended approval for the
adoption of the First Amendment to the OWner Participation Agreement between
the Development Department and H.A.B. Development Company as modified, and that
the item be forwarded to the Community Development Commission on July 1, 1991
for adoption.
Staff recommends adoption of the form motion.
;J2~/
LUUV01:Il J. IIBlID OR, Bzecuthe Director
Development Department
KJH:EJ:kak:4025H
COIMISSIOR JlDTI1IG
lIeetiD& Date: 7/1191
o
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
o
o
o
o
FZRST AMENDMENT TO
OWNER PARTZCZPATZON AGREEMENT
H.A.B. LAND DEVELOPMENT COMPANY
(Northwe.~ Redeve1opmen~ Projec~ Area)
THZS FIRST AMENDMENT TO AGREEMENT is entered into this
day of , 1991, by and among the REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency"), and H.A.B.
LAND DEVELOPMENT COMPANY, a California Corporation, (the
"Participant" ),
WZTNESSETH:
A. WHEREAS, the parties entered into that certain Owners
Participation Agreement (the "Agreement") as of August 20,- 1990;
and,
B. WHEREAS, the parties desire now to amend said Agreement
to provide for disbursement of the loan proceeds upon approval of
the Executive Director, to extend the Agreement by 180 days and to
expand the definition of "Participant Improvements",
THE PARTZES HERETO agree as follows:
1. Section 315 of the Agreement is hereby amended to read
as fOllows:
[315] Loan Agreement
Agency and Participant shall enter into a Loan
Agreement in the form of Attachment No. 6 by which Agency shall
loan Participant an amount not to exceed $2.13 Million for the
construction of Participant Improvements. Said loan shall be at
an interest rate of 10 1/4\ with interest only payments quarterly
for seven years from the completion of improvements as evidenced
by the issuance of Certificate of Completion as provided in
DAB/ses/HAB.1AM 1 June 24, 1991
o
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
o
o
o
o
Section 324. Participant shall be entitled to draw on the loan
proceeds in 1/3 increments upon determination by an independent
disbursal agent and approval of the Executive D~rector that 1/3 of
the project has been completed. From each 1/3 disbursement Agency
shall withhold lOt, which amount shall only be disbursed to
Participant upon evidence of the payment or satisfaction of all
indebtedness relating to the project, including payrolls and bills
for materials and equipment (or that with the remaining funds such
payment or satisfaction will be achieved), that might subject the
Site or Agency to liability. At the option of the Agency it may
pay the retained proceeds directly to the holders of any, such
indebtedness with such payments becoming part of the -loaned
proceeds.
2. Paragraphs 5 and 6 of Attachment No. 3 of the Agreement
if hereby amended to read as follows:
"5.
Obtain plan check
approval, obtain
bUilding permits and
commence construction,
Participant shall
obtain necessary plan
check approval, obtain
all building permi ts
and begin construction.
Complete Construction,
Participant shall
complete construction
and obtain a 'Certi-
ficate of Completion.
Not later than four hundred
fifty (450) days after the
effective date of this
Agreement.
"6.
Not later than one year and
nine months [six hundred
thirty (630) days] from the
effective date of this
Agreement."
3. Paragraph II of Attachment No. 4 of the Agreement is
hereby amended to read as follows:
"II. Development
"Participant shall develop the site with two bridges
crossing Cable Creek and the concrete flood control
channel southerly of the site and roadways connecting
DAB/ses/HAB.lAM
2
June 24, 1991
o
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
2$
o
o
o
o
Industrial Parkway and Hallmark Parkway all to
specifications of the City of San Bernardino. Such
development shall include curbs, gutters, sidewalks
and facilities for underground electrical power,
water, sewer, telephone, cable tv, natural .gas and
such other utilities as designated by the City
Engineer.
"PartiCipant shall complete all of the improvements
set forth in this Scope of Development (AttaChment No.
. 4') to be constructed in one phase. All of the
improvements to be provided by the Participant on the
site constitute the 'Basic Participant Improvements.'
The Basic Participant Improvements and all those off-
site improvements, which are required in connection
wi th this development (if any), and which are required
to be prOVided by the Participant (the 'off-site
improvements' ), and the payment in full of the
existing Deed of Trust on the site, together
constitute the 'Participant Improvements.'
"The Participant shall commence and complete the.
Participant Improvements by the respective times
established therefor in the Schedule of Performance
(Attachment No.3)."
4. Except as amended herein, the Agreement shall remain in
full force and effect.
IN WITNESS WHEREOF, Agency and Participant have executed
this First Amendment to Agreement on the day and date first above
shown.
APPROVED AS TO PROGRAM:
"Agency"
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
By:
By:
Executive Director
Approved as to form
and legal content:
"Participant"
H.A.B. LAND DEVELOPMENT COMPANY
By:
Its President
~~
Agency sel
By:
Its Secretary
DAB/ses/HAB.1AM
3
June 24, 1991
o
o
o
o
o
1 FIRST AMENDMENT TO
2 OWNER PARTICIPATION AGREEMENT
3 H.A.B. LAND DEVELOPMENT COMPANY
4 (Nor'thwe81: Redeve1opmen1: Projec1: Are.)
5 THIS FIRST AMENDMENT TO AGREEMENT is en1:ered into this
6 day of , 1991, by and among the REDEVELOPMENT
7 AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency"), and H.A.B.
8 LAND DEVELOPMENT COMPANY, a California Corporation, (the
9 "Participant" ),
10 WITNESSETH:
11 A. WHEREAS, the parties entered into that certain OWners
12 Participation Agreement (the "Agreement") as of August 20, 1990;
13 and,
14 B. WHEREAS, the parties desire now to amend said Agreement
15 to provide for disbursement of the loan proceeds upon approval of
16 the Executive Director, to extend the Agreement by 180 days and to
17 expand the definition of "Participant Improvements",
18 THE PARTIES HERETO agree as follows:
19 1. Section 315 of the Agreement is hereby amended to read
20 as follows:
21 [315] Loan Agreement
22 Agency and Participant shall enter into a Loan
23 Agreement in the form of Attachment No. 6 by which Agency shall
24 loan Participant an amount not to exceed $2.13 Million for the
25 construction of Participant Improvements. Said loan shall be at
26 an interest rate of 10 1/4% with interest only payments quarterly
27 for seven years from the completion of improvements as evidenced
28 by the issuance of Certificate of Completion as provided in
DAB/ses/HAB.1AM 1 June 24, 1991
o
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
o
o
o
o
Section 324. Participant shall be entitled to draw on the loan
proceeds in 1/3 increments upon determination by an independent
disbursal agent and approval of ' the Executive D~rect~r that 1/3 of
the project has been completed. From each 1/3 disbursement Agency
shall withhold lOt which amount shall only be disbursed to
Participant upon evidence of the payment or satisfaction of all
indebtedness relating to the project, including payrolls and bills
for materials and equipment (or that with the remaining funds such
payment or satisfaction will be achieved), that might subject the
- Site or Agency to liability. At the option of the Agency it may
pay the retained proceeds directly to the hOlders of any such
indebtedness with such payments becoming part of the loaned
proceeds.
2. Paragraphs 5 and 6 of Attachment No.3 of the Agreement
if hereby amended to read as follows:
"5.
Obtain plan check
approval, obtain
building permi ts and
commence construction,
Participant shall
obtain necessary plan
check approval, obtain
all building permits
and begin construction.
Complete Construction,
Participant shall
complete construction
and obtain a' 'Certi-
ficate of Completion.
Not later than four hundred
fifty (450) days after the
effective date of this
Agreement.
"6.
Not later than one year and
nine months [six hundred
thirty (630) days] from the
effective date of this
Agreement."
3. Paragraph II of Attachment No. 4 of the Agreement is
hereby amended to read as follows:
"II. Development
"Participant shall develop the site with two bridges
crossing Cable Creek and the concrete flood control
channel southerly of the site and roadways connecting
DAB/ses/HAB.1AM
2
June 24, 1991
,
o
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
2$
o
o
o
o
Industr~al Parkway and Hallmark Parkway all to
spec~f~cat~ons of the C~ty of San Bernard~no. Such
development shall ~nclude curbs, gutters, s~dewalks
and fac~l~t~es for underground electr~cal power,
water, sewer, telephone, cable tv, natural gas and
such other ut~l~t~es as des~gnated hy tfie C~ty
Eng~neer.
"Part~c~pantshall complete all of the ~mprovements
set forth ~n th~s Scope of Development (Attachment No.
- 4-) to be. constructed ~n one phase. All of the
~mprovements to be prov~ded by the Part~c~pant on the
s~te const~tute the 'Bas~c Part~c~pant Improvements.'
The Bas~c Part~c~pant Improvements and all those off-
site ~mprovements, wh~ch are requ~red ~n connect~on
w~ th th~s development (~f any), and wh~ch are requ~red
to be prOv~ded by the Part~c~pant (the _ 'off-s~te
~mprovements'), and the payment ~n full of the
ex~st~ng Deed of Trust on the s~te, together
const~tute the 'Part~c~pant Improvements.'
"The Part~c~pant shall commence and complete the
Part~c~pant Improvements by the respect~ve t~mes
establ~shed therefor ~n the Schedule of Performance
(Attachment No.3)."
4. Except as amended here~n, the Agreement shall rema~n ~n
full force and effect.
IN WITNESS WHEREOF, Agency and Part~c~pant have executed
th~s F~rst Amendment to Agreement on the day and date f~rst above
shown.
APPROVED AS TO PROGRAM:
"Agency"
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
By:
Execut~ve D~rector
By:
Approved as to form
and legal content:
.Part~c~pant"
H.A.B. LAND DEVELOPMENT COMPANY
B~
Agency C sel
By:
Its Presiden' b
BY'~-
. cretary
DAB/ses/HAB.1AM
3
June 24, 1991