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Home My WebLink AboutR07-Economic Development Agency , o o o , o o DEVELOHUnfr DEPAJmousJ!r.r OF THE CITY OF SAlII BEDARDIRO REOUEST FOR C~SSION/COUNCIL ACTION From: KENNETH J. HENDERSON Executive Director Subject: SAlII BEDARDIRO CO.uwITY HOSPITAL - REQUEST FOR AGDCY GUARAlIITEE Date: JULY 10, 1991 Synopsis of Previous Commission/Council/Committee Action: NONE Recommended Motion: (MAYOR AlIID COIR)N COUNCIL) THAT THE MAYOR AlIID CO!B)N COUNCIL DIRECT THE CITY ATTORNEY TO PREPARE AlIID AUTHORIZE THE MAYOR TO EXECUTE THE UCESSARY AG~ BETWED THE REDEVELOHUnfr AGDCY AlIID THE CITY OF SAlII BEDARDIlW TO GUARAlIITEE ALL REQUIRED IMPROVEPwuS AlIID THE COST THEREOF FOR PARCEL MAP MAP RO. 11951. (CO.uwITY DEVELOPMDIT COtMISSION) THAT THE eu-ulUrY DEVELOHUnfr COtMISSIO!f AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE AlII A~ BlmrAMI THE REDEVELOHUnfr AGDCY AlIID THE CITY OF SAlII BEDARDIRO TO GUARAlIITEE ALL REQUIRED IMPRO"l!Pw!r.rS AlIID THE COST THEREOF FOR PARCEL MAP RO. 11951. ~ /< ADMINISTRATOR Contact Person: Ken Henderson/John Hoeaer Phone: 5065/5081 Project Area: Northwest Ward(s): Six (6) Supporting Data Attached: Staff ReDort FUNDING REQUIREMENTS: Amount: $318.500 Source: Budget Authority: . Commission/Council !fotes: KJH:JW:kak:4044H: COtMISSION MEETING Meeting Date: 7/15/91 'I Agenda Item No. o o o o o DEVELOPMEllT DBPAR'.l"l'llmT STAFF REPORT San Bernardino Community Hospital Reauest for Aaencv Guarantee The San Bernardino Community Hospital needs to record Parcel Map No. 11951 in connection with the construction of its new Robert H. Ballard Rehabilitation Hospital, a $14 million, 60-bed hospital at Sixteenth and Flores streets. Construction of off-site improvements is a requirement of the Parcel Map. The City's Municipal Code, however, provides that bonds or other security may be substituted for actual construction thus guaranteeing construction of the improvements after the Map is recorded. Community Hospital does not wish to provide this security and has asked that the Redevelopment Agency undertake the guarantee of the installation of the improvements. This agenda item will provide that the Redevelopment Agency, under section 18.44.030 of the Municipal Code, will substitute its guarantee for the $318,500 in bonds that would normally be required for Parcel Map No. 11951. THE ROBERT H. BALLARD REHABILITATION HOSPITAL The new hospital is twice the size of the existing Robert H. Ballard facility and will relocate the facility outside of the 322-bed Community Hospital. The new hospital will be run under a joint venture agreement with Continental Medical Systems Inc. of Pennsylvania. As currently structured, the new hospital will be a private venture and it will not have tax exempt status, thus the Agency will receive tax increment payments on the new construction. After the County retains its share of the Northwest Project Area tax increment, the Agency will receive approximately $92,000 per year including $18,500 per year for low and moderate income housing purposes. The new hospital will employ 150 people full time and have an annual operating budget of $7.3 million. The facility will provide medical care and rehabilitation for patients with a wide range of physical problems, including stroke, spinal injuries, trauma from accidents, head injuries and neurological and bone and joint disorders. PARCEL MAP NO. 11951 When a Parcel Map is presented for approval by the Mayor and Common Council, the conditions attached to the Parcel Map are to have been accomplished or else a contract must be entered into for completion of improvements that is secured by satisfactory improvement security. The specified forms of security are the deposit of money, recognized bonds, or instruments of credit.. ToPe Code also allows the Redevelopment Agency to be the provider of the security as follows: KJH:JW:kak:4044H COIMISSIOB MEETIlIG Meeting Date: 7/15/91 o o o - . DEVELOPMENT DEPARTMENT QAFF REPORT San Bernardino Community Hospital Request for Agency Guarantee July 10, 1991 Page -2- o 18.44.030 .lareeaent between RedevelolDent .laency and City in lieu of baud. An agreement between the Redevelopment Agency of the City and the City, approved by the City Attorney and unconditionally providing and guaranteeing that said Agency shall provide any and all required improvements and pay the cost thereof pursuant to the provisions of this chapter, and which pledges the full faith and credit of said Redevelopment Agency, may be filed with the Director of Public Works as security in lieu of bond, cash or certificate of deposit whenever the project is located in a redevelopment project area ... The required bonds are for Faithful Performance - $182,000; for labor and materials - $91,000; and for warranty - $45,500. This totals $318,500, but the Agency will not be required to pay if the Community Hospital constructs the improvements in a manner satisfactory to the Director of Public Works and if no work is required under the warranty. The Agency is only providing a guarantee that the Community Hospital will perform instead of it providing its own security for the improvements. If the Hospital performs, the Agency will not be required to act. RECOMMENDED ACTION Adoption of the form motion will provide for the preparation and execution of an agreement between the Redevelopment Agency and the City to provide the Agency's guarantee of the improvements. ~~~Oll. Executive Director Develotaent Departaent . KJH:JW:kak:4044H COBIISSIOII MBETIIIG Meeting Date: 7/15/91 . 00.- '~o'~ ,""m.L. ,.. 0 Continental Medical Systems, Inc. ™ P.2 ~........- o .7\11y 10, :LI.l Hon. M... BolcOllb Mayor City ot .an Barnardino 300 ft. -D- Street San .arna~ino, CA .3401 Dear Mayor HolcOJlbI ConUnental "d1c&1 Syst..., Inc. has contracted to construct a new eo bed faoility to provide comprebenaive medical rebabilitatlon service., which v111 be located on a parcel of land adjacent to the Ian Bunardino COIIIIUftity Ho.pital. The City is r~rill'i that oertain bond. be postad to insure that the orf .ite rove.ents w111 be constructad in conjunction with the con.truot on of the aehabilitation f.c11ity. The off site iaprovaents wU1 con.18t of . new streK a. ahown on P.rcel xap 110. 11'51, . oopy ot whiCh ha. been provided to you. The Bonds In que.tion are a. tollowse c Perfonaance londe Labor and Materids Bonde ..intenanoe Ionde Ilec:U"ical Inervy Iond: . $113,000.00 11,000.00 41,500.00 2,831.80 The purpose ot this letter 1e to coait conUnental Medical Iy.tus, Ino. to construct the abOve aentlonacl ott .ite imprOV8llents at the time of the construCltion ot the "habilitation facUity by Continental Medical Sy.t.... We WOUld reque.t that 1n consideration ot this co_itaant, that the Jte4evelopunt &lenoy at the City ot San lUftardino a..UM the bon4in9 requir...nt... The projeot w111 not be con.truot.ecl without the construction of the new .tre.t a. ehown on the _ntioned pucel -p. If you bave any caue.tions concerning this letter or the reque.t to alleviate the raquiruenta for the bondin" pl.... do not: b..1t:at:a to 91ve .. a oall. . Kenneth P. Barba' Bxeoutiva Vice Pre.ident: anes Chi.t Devel~t Officer o Kl"Bl1ab 600 WIlson LIlIc P.O. Box m MechllllClbulJ. PcnIllYMIIla 170" 717.790-11300 t'AX 717-76501277 '""*i"ll To MIIht L!Jt /lctler ~