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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
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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.
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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
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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-
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DAV B LOP M B NT DB PAR TAB NT
\.i OF THE CITY OF SAN BBRNARDI\..I
STAFF REPORT
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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:
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DEVELOPMDr DBPAR'IMUT STAFF REPORT
Second Amendment - Stater Brothers
September 27, 1991
Page Number -2-
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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:
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DEVELOPMUr DEPARTIWIT STAFF REPORT
Second Amendaent - Stater Brothers
September 27, 1991
Page l'fumber -3-
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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:
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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
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July 18, 1991
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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
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July 18, 1991
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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
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July 18, 1991
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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
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date first above shown.
REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO
STATER BROS. DEVELOPMENT, INC.
By:
By:
Chairman
President
Secretary
By:
Secretary
Approved as to form
and legal content:
AGENCY COUNSEL
By:~,-~..\b2 i-v
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DAB/ses/Stater-2.2am
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JUly 18, 1991
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