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HomeMy WebLinkAboutR04-Economic Development Agency o o o o o DBVBLOPMBl'IT DBPARTMBIIT OF TIlE CIn OF SAlII BBRlIIARDINO REOUEST FOR COMMISSION/COUNCIL ACTION From: KENNETH J. HENDERSON Executive Director Subject: SECOND AMENDMENT - STATER BROTIIERS Date: September 27, 1991 ------------------------------------------------------------------------------- SvnoDsis of Previous Commission/Council/Committee Action(s): 07-07-86 Resolution No. 4899 approved OPA. 06-06-88 Resolution No. 5119 adopted by Community Development Commission. 09-17-91 Redevelopment Committee recommended approval of Second Amendment. ------------------------------------------------------------------------------- RecommPftded Motion(s): (Communitv Deve100ment Commission) That the Community Development Commission approve a Second Amendment to the OWner's Participation Agreement between Stater Brothers Development, Inc. and the Development Department of the City of San Bernardino. A~strator J!:~:JuBRSOl'l Executive Director ------------------------------------------------------------------------------- Contact Person(s): Phone: 5081 Project Area(s): Ward(s) : Supporting Data Attached: Staff Reoort. Second Amendment FUNDING REQUIREMENTS: Amount: $ Source: Budget Authority: Commission/Council l'Iotes: KJH:ENJ:lag:203lJ COMMISSIOl'l MEBTIl'IG AGENDA Meeting Date: 10/07/1991 Agenda Item No: A- o o o DAV B LOP M B NT DB PAR TAB NT \.i OF THE CITY OF SAN BBRNARDI\..I STAFF REPORT ------------------------------------------------------------------------------- Second Amendment to the Stater Brothers' OPA In July of 1986, the Redevelopment Agency entered into an Owner Participation Agreement with Stater Bros. Development, Inc. The parties entered into a First Amendment to the Owner Participation Agreement in June of 1988. It is now the desire of the Development Department and Stater Brothers Development, Inc., to execute a Second Amendment to the Owner Participation Agreement to more specially identify the improvements to be constructed, to continue to temporarily suspend interest in the Department's obligation for reimbursement, to provide a specific reimbursement amount and schedule and for other clarifying changes. The project is located on Kendall Drive, between "F" Street and 40th Street (see attached copy of Parcel Map). Exhibit "A" (attached) provides a comparison between the development schedules under the First Amendment and under the proposed Second Amendment. Stater Brothers has decided to leave the COP facility on Parcel "0" and this has been reflected by eliminating Parcel "D" from the development plan along with the appropriate reduction in the square footage. The dollar amounts remain the same. Note that time frames for meeting major components of commercial/retail buildings were amended as follows: a) b) e) Schematics and Evaluation - from December I, 1988 Start Construction - from March I, 1989 Complete Construction - from March I, 1990 to July I, 1992 to December I, 1992 to July I, 1993 DeveloDment DeDartment Obliaations 1. Reimburse developer for actual costs expended for the improvements along Kendall Drive from 40th Street to "F" Street. Amount to be determined by submittal of copies of paid invoices, but in no event will total reimbursement exceed $1,300,000, plus five percent (5%) interest. Also, n2 reimbursement will be made until all construction has been completed. KJH:ENJ:lag:203lJ COMMISSION MEETING AGBlIDA Meeting Date: 10/07/1991 Agenda Item No: -d- o o o - - o o DEVELOPMDr DBPAR'IMUT STAFF REPORT Second Amendment - Stater Brothers September 27, 1991 Page Number -2- ------------------------------------------------------------------------------- 2. Reimbursements shall be made annually by the Department on June 10th of each year in the amount of $168,356 per year. The amount was derived by amortizing the total principal amount of $1,300,000 for ten (10) years at five-percent (5%) interest with one (1) annual payment in arrears. Benefits to Ad1acent Develonment These public improvements benefit the proposed residential projects on Shand in Hills. A table of the developments proposed at that time were as follows: Tract Number Units/Tvoes Value Upon COlDoletion Price Per Uni t 11323 11324 12956/12957 12958 12955 12955 $ 50,000.00 $ 53,000.00 $ 72,000.00 $ 84,000.00 $ 99,000.00 $120.000.00 $27,000,000 $ 5,544,000 $ 7,128,000 $ 9,912,000 $ 5,445,000 5 3.600.000 558.629.000 540 Apartments 88 Town Homes 99 Patio Homes 118 Homes 55 View Homes 30 Custom Homes TOTAL: $ 930 Unf~B Additional Benefits Bstimates of additional benefits to the City are as follows: 1. City Fees: $243,238 $ 4,465 $124,040 Annually One Time 2. Utility Taxes: Annually 3. Sales Taxes: KJH:ENJ:lag:2031J COMMISSIOll MBBTIBG AGBlIDA Meeting Date: 10/07/1991 Agenda Item No: ~ o () o - 1 o DEVELOPMUr DEPARTIWIT STAFF REPORT Second Amendaent - Stater Brothers September 27, 1991 Page l'fumber -3- IW o The Amendment contains language requiring Stater Brothers to perpetually maintain all project improvements (including landscaping, parking areas, sidewalks, and related items), from curb face to the property lines, excepting that portion within the existing Landscaping District. It also requires Stater Brothers to record Covenants, Conditions and Restrictions which allow the City to lien the property, should it become necessary for City crews to step in and perform said maintenance. Staff recommends adoption of the form motion. ~~~RSOB' Executive Developaent DepartBent KJH:ENJ:lag:2031J Director COMMISSIOB MEETIBG AGEBDA Meeting Date: 10/07/1991 Agenda Item Bo: ~ 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 II Ii - - o o SECOND ~IENDMENT TO PROPERTY OWNER'S PARTICIPATION AGREEMENT STATER BROS. DEVELOPMENT, INC. STATE COLLEGE PROJECT AREA SAN BERNARDINO, CALIFORNIA THIS SECOND AMENDMENT TO AGREEMENT, made and entered into this day of , 1991, by and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO on behalf of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body corporate and politic (hereinafter "Agency"), and STATER BROS. DEVELOPMENT, INC. (hereinafter "Participating Owner" ) . RECITALS i. The Parties hereto entered into that certain Property Owner's Participation Agreement ("Agreement") on July 7, 1986. ii. The Parties entered into a First Amendment to said Agreement on June 6, 1988. iii. It is now the desire of the parties to further amend said Agreement to more specifically identify the improvements to be constructed, to temporarily suspend interest in the Agency's obligation for reimbursement, to provide a specific reimbursement amount and schedule and for other clarifying changes. AGREEMENT The Agency and Participating Owner, for the considerations and under the conditions set forth hereinafter, do agree to amend the Agreement as follows: 1. Paragraph 2 of Exhibit "B" is hereby amended to read as fOllows: "2. Following the issuance of the Certificate of Compliance provided for in paragraph 10 of the Agreement, reimbursement, as DAB/ses/Stater-2.2am 1 July 18, 1991 1;/ .-?, o c () 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 1 outlined in paragraph 1 of this Exhibit 'B' shall be made annually 2 by Agency on June 10 in of each year in the amount of $168,356 per 3 year. (Beginning on a date twelve (12) months fOllowing the 4 initial due date pursuant to this paragraph, the Agency's obligation to the Participating Owner shall bear interest at the rate of five percent (5t) per annum on the outstanding balance until paid." 2. Exhibit "CO to the Agreement is hereby amended to read as follows: "EXHIBIT 'C' Undertakings and Obligations of Participating Owner PARTICIPATING OWNER AGREES: 1. To acquire ownership of and to develop or cause to be developed upon Parcels 1 and 2, as shown in the map attached, a Stater Bros. Market, a Pay Less Drug Store, and satellite shops, which developments shall meet the size, value, starting and completion dates and employment estimates specified below: Stater Bros. Market Pay Less Drug Store Satellite Shops (A, B & C) Other Bldgs. (Commercial retail andlor specialty shops) (Major 3, E, F, G&H) Parcels ( 1 ) (2) (4, 9, 11) (3, 5, 6, 7, 8, 10, 12, 13, 14) Size (Sq.Ft.) 35,232 23,714 25,740 Not Less Than 17,500 Value of Bldg. $2,644,000* $1,275,000* $1,258,660* Not Less Than $1,335,000 III DAB/ses/Stater-2.2am 2 July 18, 1991 Y () 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 () - J 0 0 Provide Schem. & Eval. Delivered Delivered Delivered 7/1/92 Start Constr. Completed Completed Completed 12/1/92 Complete Constr. (C of 0) 3/17/88 4/29/91 3/17/88 7/1/93 Estimated Full Time Jobs 55 43 42 38 *Actua1 Cos'ts. 2. To provide documentary proof to the reasonable satisfaction of Agency that the off-sites have been completed, together with evidence that all costs of such improvements have been fully paid. 3. To maintain all project improvements (including but not limited to, landscaping, parking areas, sidewalks and buildings) to the satisfaction of Agency from curb face to property lines, excepting that portion within the existing Landscaping District. Participating OWner has recorded Conditions, Covenants and Restrictions (CC&R's) affecting the property described in Exhibit 'A' which imposes the obligation of maintenance outlined in this Paragraph 3 on all property owners. Should Participating OWner, its successors or assigns or the common area operator under the CC&R's fail to perform such maintenance, Agency and/or City shall have the right to perform such maintenance at the expense of the Participating OWner, and in such event Participating Owner shall reimburse Agency and/or City for the actual costs, including a reasonable administrative charge incurred in performing the maintenance. Failure to pay shall entitle the Agency and/or City DAB/ses/Stater-2.2am 3 July 18, 1991 Y Q o o 10 11 By: 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 II I j J o o 1 2 to place a lien on the subject property." 3. Except as amended herein the Agreement as previously 3 amended shall remain in full force and effect. 4 IN WITNESS WHEREOF, the Agency and participating OWner have 5 executed this First Amendment to Agreement effective as of the 6 7 8 9 date first above shown. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STATER BROS. DEVELOPMENT, INC. 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