HomeMy WebLinkAboutR04-Economic Development Agency
0'
o
o
o
o
o
DBVBLOPMBNT DBPARTMBNT
OF DB Cln OF SAW IlBIllIARDlBO
REOUEST FOR COIMISSION/COUBCIL ACTION
From:
KBRllBTH J. BBNDIRSOR
Ixecutive Director
Subject: FIRST ~ TO RANCON
(DOWRTOWB) EXCLUSIVE
lUGOTUTIlIG AGRBBMBlIT
Date:
April 14, 1992
SvnoDsis of Previous C~issionlCnnn~il/C~ittee Action(s):
On September 3, 1991, the Community Development Commission authorized
the Executive Director to execute an Exclusive Right to Negotiate
Agreement with RANCOR Financial Corporation regarding development of
the block between 4th and 5th Streets and "D" and "I" Streets.
RecommPnded Motion(s):
(C..-itv Develollment C~ission)
MOTION
That the Executive Director be authorized to execute a
First Amendment to Exclusive Negotiating Agreement
between the Community Development Commission of the City
of San Bernardino and RANCOR Financial Corporation to
extend the termination date an additional 180 days to
October 31, 1992.
~~ON
Executive Director
Administrator
Contact Person(s): Kenneth J. Henderson/John Hoeaer
Phone:
5081
Project Area(s): Central Citv Rorth
Ward(s):
1
Supporting Data Attached:
Staff ReDort: MaD: Letter: Draft Aareement
FURDIRG REQUIREMENTS:
Amount: $ Rone
NIA
Source:
Budget Authority:
RIA
CommissionlCn''''~il Notes:
KJH:JBH:lmp:2l69B
COIMISSION RBBTIlIG AGBBDA
Meeting Date: 04/20/1992
Agenda Item. !IuIIIber: ~
o
o
o
o 0
DBVBLOPRB.r DBPARrRB.r
OF t'IIB CITY OF SAB' _&IInmo
STAn' UPORr
Firat .1.............1: to IPAwm1I (Dcnm.t01lD.) .....,.lualve
Reaotiatfn. Aare.....t:
The Exclusive Hegotiating AgreeJllent between the COllllll1mity Development
Commission and Rancon Financial Corporation for negotiation of a
development aareeJllent for the downtown block shown on the attached map
will expire on April 30, 1992. Rancon has requested in the attached
letter that the agreeJllent be extanded for an additional six months due
to the difficulties in obtaining financing in the current real estate
market. At the same time, Agency Staff has been exploring options
regarding the associated parking structure whose construction could be
expedited by separating it from the office tower construction.
Rancon has been negotiating diligently and has been responsive to staff
during the negotiation period. In view of the need for significant
development in the downtown core and current efforts by staff and by
Rancon to secure prospective tenants for the office tower, it is
appropriate to grant a 180 day extension by approving the execution of
the attached First Amendment. The amended agreement would then expire
on October 31, 1992.
Staff recommends adoption of the form motion.
~. llzecutive Director
D_elo~t DepartlleD.t
KJH:JBH:lmp:2l69B
COIIIISSIo. IIBBTIK AGlRDA
Reeting Date: 04/20/1992
tf
AgeDda It_ llaaber:
o
o
--1 ! ,
o
CD
o
(!)II@)
I! L
tr:
I
114-141
@
...IiO' t.:.::\.
1e:J ~..
8
I
@ I
.
111=
@ 14 IS @ @
I
--, ! I -4ffi--
o
If
o
o
o
APRI4191l
March 23,1992
Mr. Tim Steinhaus
AGENCY ADMINISTRATOR
ECONOMIC DEVELOPMENT AGENCY
201 North E Street
Third Roor
San Bernardino, CA 92401
RE: EXCLUSIVE RIGHT TO NEGOTIATE
Dear Mr. Steinhaus:
o
Rancon respectfully request an extension on the Exclusive Right to Negotiate for
block at 4th, 5th, "0" and "E" for approximately six (6) months.
The uncertainty of the real estate financial market has escalated the last 12 months
to a point where our basic assumptions regarding Cornerstone financing continue
to be revised.
Another cause for extension is the Economic Development Agency's need to
separate the garage design and construction on an independent time line to
facilitate an early "Fast Track" schedule for the garage and associated retail space.
We will continue to work on the structure of this deal and look to your favorable
response..
Roderick Q. MacDonald
Vice President
Development
c: John Shaw
Rancon
chron
o
27720 JcIf..... A_lie
r.......... CoIiIomia 92S!lO
t714) 676-6664
.
tf
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
FIRS'l' AMENDMEIft' '1'0
EXCLUSIVE KEOO'l'IA'l'INO AOREDDDI'r BB'l'WBDI'
THE COMMUHI'l'Y DBVBLOPMBll'l' COMMISSIOR
OF THE CI'l'Y 01' SAN BBRHARDINO
AND RAHCOH FINANCIAL CORPORATION
This First Amendment to Agreement, ( the R Amendment R ) , is
entered into 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, (the RAgencyR), and RANCON
FINANCIAL CORPORATION, a California General Corporation, (the
RDeve10perR), this
, 1992.
day of
Section 1. Recital..
The parties hereto acknowledge
that:
A. The parties entered into that certain RExc1usive
Negotiati!lg Agreement Between the Community Development Commission
of the City of San Bernardino and Rancon Financial CorporationR
dated September 3, 1991.
B. Said Agreement expires on April 30, 1992.
C. The. parties. have found that there is a need to
separate the garage design and construction from the main
development to provide for an earlier commencement of
construction.
D. The Developer has found, due to the current
economic climate, a difficulty in attracting tenants.
E. The parties are still in J;1egotiations on the terms
and prOVisions of a Disposition and Development Agreement.
F. It is in the best interests of the parties and of
the City of San Bernardino to extend the term of the Agreement an
additional one hundred eighty (180) days.
/II
DAB/bg [Rancon.1AM]
1
April 13, 1992
Lf
, . .
"
o
o
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
'J:l
28
o
o
Sec'tion 2. Ex'tension of Agr....n't.
The above referenced
Agreement is hereby amended to provide in Section 6 thereof that
the original term of two hundred forty (240) calendar days to
expire on April 30, 1992, shall instead be four hundred (400)
calendar days to expire on October 31, 1992.
Sec'tlon 3. Remainder of Agreeaen't.
Except as amended
herein, said Agreement shall continue in full force and effect.
IN WITNESS WHEREOP, the Agency and the Developer have each
signed this First Amendment to Agreement as of the day and date
first above shown.
COMMUNITY DBVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
BY:
Kenneth J. Henderson
Executive Director
Approved as to form
and legal content:
'~fb/
Agency nsel -
ON
BY:
TITLE:~A~'~
DAB/bg [Rancon.1AM]
2
April 13, 1992
If
f
o
o
DBVBLOPMENT DBPARTMBNT
OF THE CITY OF SAN BERNARDINO
TO: KENNETH HENDERSON, EXECUTIVE DIRECTOR
FROM: John Hoeger, Project Maulger
SUBJECT: RANCON (DOWNTOWN) IPCCLUSIVE NEGOTIATING AORIlIlU'R)ff
DATE: April 20, 1992
COPIES: Sl8fford Parker, Deputy Director
The Exclusive Negotiating Agreement MMlme effective Sep 3, 1991. On Oct 21, 1991 the
Com"1i...gon accepted Rancon's initial concept study which accomptisbed the vast majority of
items for which Rancon was responsible UDCIec the Agreemeot. Tbc majot' step which n-.......inc
......ccomplished is obha""", letters of commitweot from ,e-......" willing to lease 75'1 of the
proposed space.
DATH SPBl.:.....1ID AcruAL
BY AGRBBMBINT DATH
Undertake feasibility studies November 2, 1991 September 3, 1991
Undertake planning studies November 2, 1991 September 3, 1991
Determine parcellocatioDS November 2, 1991 October 21, 1991
Begin negotiating January 1, 1992 October 21, 1991 -
Disposition Agmnt
A
Present preliminary concept January 1, 1992 October 21, 1991
design
Present market feasibility January 1, 1992 October 21, 1991
information
Present parking needs January 1, 1992 October 21, 1991
assessment
Present parcel locations January 1, 1992 October 21, 1991
Obtain commitments for February 29, 1992
-
7S'I of space
~~1
p~ /II,'} ,
,
o
o
Rancon is also required to submit montbly stabJs reports which they have done through regular
meetings with all conccmcd. Tbc Agreement expires on Apri130, 1992, however this may be
extended if both parties agree in writing. Tbc Agreement, however, docs not give the Executive
Director authority to execute such an extension without Commission approval.
Please do not hesitate to ask if you need any additional information.
~{~~
JOHN B. HOliGER, PROJECT MANAGER
Development Division
-
IIl42lIdl
'-
^