HomeMy WebLinkAboutR08-Economic Development Agency
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DIVILOPlIlRr DIPARTlIlRr
OF TBI CUT OF SAIl BIIl1WlDIRO
RlODISr FOR CCHlISSIOK/COUlICIL ACTIOR
From:
lCBlmITII J. HENDIRSON
Executive Director
Subject: RlDIVILOPMI1IT AGIlICY
GUARAIITII OF SADAG LOAR
TO IVDA
Date:
May 28, 1992
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Svnoosis of Previous C~tssiODlCnnn~il/C~tttee Action(s):
On May 18, 1992, the Community Development Commission requested the
Director of Public Works to meet with property owners that might
potentially be affected by the Orange Show Road extension and report
back to the Commission on 6/1/92.
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Recnm.~de4 IIotion(s):
(C..-nntty Develo_t C---tssion)
IIlTIOR
That the Community Development Commission authorize the
Executive Director to execute a Loan Guarantee Agreement
in the amount of $1.2 million between the Inland Valley
Development Agency and the Redevelopment Agency of the
City of San Bernardino.
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Contact person(s): Ken Henderson/Jim SharD
Phone:
5081
Project Area(s): CCP-OSR. Waterman to Arrowhead
Ward(s):
1.3.7
Supporting Data Attached:
Staff ReDort
FUl'lDIl'IG REQUIREMENTS:
Amount: $1.2 million
Guarantee
Budget Authority:
Reauested
Source: Bond Proceeds
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Com-tssiODlCounci1 Kotes:
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KJH:SMM:lag:0747E
COIlllISSIOR IlElTIl'IG AGDDA
Meeting Date: 6/01/1992
Agenda It. Rlaber: L
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DEVELOPMENT DEPARTMENT
OF TIlE CITY OF SAIl' BBIllWlDIBO
STAFF REPORT
Redevelo_ent Aaency Guarantee of SAWJU.G Loan to IVDA
The Director of Public Works/City Engineer has requested on behalf of
the Inland Valley Development Agency (IVDA) that the Redevelopment
Agency agree to provide a written guarantee for a capital improvement
loan in the amo\mt of approximately $1.2 million. Said request is to
facilitate the acquisition of monies from SANBAG for the preparation of
engineering plans and specifications for major public improvements.
The specifics of the transaction and request are as follows:
1) SANBAG shall loan to IVDA $1.2 million from East Valley FAU f\mds.
2) The loan is contingent upon a determination by SANBAG that there
are sufficient East Valley f\mds available to loan.
3) The loan f\mds shall be used by IVDA for preparation of plans and
specifications for major arterial streets as follows:
Tippecanoe/Del Rosa Avenue Connector
Orange Show Road - Tippecanoe to Waterman
Orange Show Road - Waterman to Arrowhead
4) The loan and accrued interest shall be paid by IVDA from
construction f\mds for the projects.
5) The term of the loan shall be five (5) years from the date of
receipt of f\mds from SANBAG regardless of whether construction or
f\mding has been completed.
6) It is the Director of Public Works' opinion that the loan is
necessary to expedite the development of said plans and
specifications. Said actions would greatly increase the IVDA's
ability to secure financing or f\mding for the development of
these projects.
7) That the Redevelopment Agency \mconditionally guarantee the
repayment of the loan, plus accrued interest, according to the
terms and conditions of said loan agreement and promissory note.
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KJH:SMM:lag:0747B
COIIIISSION MDTIIG AGDDA
Meetina Date: 6/01/1992
AgeDda It_lI1aber: L
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DBVBLOPMDT DEPAIa:JousIo: STAn' IlBPORr
Redevelo~t Agency Guarmtee of SAlUlAG Lom to IVDA
May 28, 1992
Paae lI1aber -2-
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At the May 18, 1992 Commission meeting, the Director of Public Works
was directed to conduct m informal public meeting with residents and
property owners that might potentially be affected by the extension of
Orange Show Road and report back to the Commission on 6/1/92.
Attached is a memormdum from the Director of Public Works to the
Agency Administrator (dated 5/27/92) which outlines the actions taken
by the Public Works Department pursumt to Commission direction.
Pursumt to the attached memoranda from the Director of Public
Works/City Engineer and the attached draft agreement, staff recommends
adoption of the form motion.
~DSOB' Executive Director
Deve10paent Departaent
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KJH:SMN:1ag:0747B
CCRlISSIOB IUlBTIIIG AGDDA
Meeting Date: 6/01/1992
AgeDda IteB Blaber: l
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C I T Y
OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
TO:
TIM STEINHAUS, Agency Administrator
Economic Development Agency
ROGER G. HARDGRAVE, Director of Public Works/
City Engineer
Item No. 13. ~nmmission Aqenda of 5-18-92
Guarantee of Loan from SAlIBAG
FROM:
SUBJECT:
DATE:
May 27, 1992
COPIES:
Mayor W. R. -Bob- Holcomb1 File No. 1.8451
Reading File
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At the Commission meeting of 5-18-92, this item was continued to
6-1-92, and staff directed to hold an informal public hearing
with the property owners that could be affected by acquisition
of right of way for the extension of Orange Show Road.
An informal public hearing was held at 4:00 p.m., Tuesday, 5-26-
92, in the St. Mark Missionary Baptist Church, at 259 East
Central Avenue. Notices were mailed out to 130 property owners.
About 35 persons attended the neighborhood meeting.
The main concerns expressed were timing, process and compen-
sation for property acquired. There was general acceptance of
the extension of Orange Show Road, but they did want to be
informed before any final decisions were reached. City staff
advised them that another public hearing would be held before an
alignment was adopted by the Mayor and Council.
We recommend adoption of the form motion.
PORN MOTION:
That the Community Development Commission authorize the
Executive Director to execute a Loan Guarantee Agreement in
the amount of $1.2 Million, between the Inland Valley De-
velopment Agency (IVDA) and the Economic Development Agency
of the City of Sa rnardino.
~
o Director of Works/City Engineer
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CITY OP SAN BERNARDINO
INTEROFPICE MEMORANDUM
TO:
ItEN HENDERSON, Executive Director
Development Department
ROGER G. HARDGRAVE, Director of Public Works/
City Engineer
FROM:
SUBJECT:
Guarantee of Loan frea SARBAG - pre1"."n..ry
Engineering Costs
May 7, 1992
Mayor W. R. wBob. Holcomb, Marshall Julian,
Pile No. 1.845, Reading Pile
DATE:
COPIES:
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The IVDA has requested a 104P:+:'E~ SANBAG'in the amount of $1.2 .
Million. The.e funds are to be used to prepare plan. and speci-
fication. for the exten.ion of Orange Show Road, from Arrowhead
Avenue to Tippecanoe Avenue, and the Tippecanoe/Del Rosa
Connector, between Mill Street and Third Street.
OUr experience indicate. that having a project .shelf ready.
greatly enhance. the prospect of receiving funds to finance the
con.truction cost.
SANBAG' . Administrative CODD1li ttee has con.idered this request
for a '.J.oan at two meeting.. They are willing to recODllllend
approval 1;0 _tb~~~G. Boartb.~to.~hei~_~eting- on 6-13-92, for
, "0!I100'~.of :!iiI.an-. (no fea.~r;~e~~j;J:.on.st.,:Peder.J..:....'44!lVt<
L~n"s. that are available. 'In order to secure the ${Oo;OOO"
balance, we would have to agree to defer some of our project.
that have been approved by Caltrans and are waiting on funds to
be released by the Federal Highway Admini.tratioD_'
I would prefer not to defer these projects, but to try and',
identify an alternate funding source. One possibility i.
Proposition III Fund.. We received about $700,000 in 1991/92 to ~,'
maintain the current Level of Service on our Congestion ~
Management Network. However, since this network has not been,
adopted by SANBAG, none of these funds have been expended.
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Attached, for your referen._..~~.~"dr~f..~.~~..~ f~O~..Jh.e loan
to the IVDA. Please not~OIl'!iily.:..Ji2.~t;~~!i which
provide. the City of San B 1'ho....~ec!iVelopmen~:Agenty will
guarantee the loan.
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UIJ HBNDBRSON 0
IVDA Loan froa SANBAG
May 7, 1992
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The Mayor has requuted that an it_ be on the Community
Development Commi..ion '. agenda for 5-18-92, relative to thb
guarantee. It will be necessary for final action on thb
guarantee to be taken prior to the SANBAG Board meeting of 6-10-
92.
cooperation in this matter i. appreciated. Please advise
ve any question r ould like more information.
BR G. HARDGRAVE
Director of Public Works/City Engineer
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Attach.
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1BIS AGREEMENT, entered into this _ day of May 1992 is by and between San
Bernardino Assoriootfo(l Governments, hereinafter referred to "SANBAG," Inland VI11ey Development
A&mcy, hereinafter referred to "lVDA," and the Redevelopment ApDI;y or the City of San
Bernardino, hereinafter referred to u "REDEVELOPMENT AGENCY."
Reeltals
WHEREAS, IVDA hu requested SANBAG to loan it 51.2 mDIion from Past Valley FAU
funds; IUld
WHEREAS, SANBAG is willin& to loan such funds under the terms and conditions set forth
in this apeement; and
WHEREAS, REDEVELOPMENT AGENCY is wiUin& to UIICOIIditionally JUUlIIIfee the
repayment of the loan and interest thereon in the event lVDA does not do so lICCOldin& to the terms
of this agreement and the promissory note signed by lVDA.
NOW, THEREFORE, in consideration of the terms, conditions and provisions set forth
bereUI, Ibe parties haeto 8&= u follows:
I. T ftlIft Provisions:
A. SANBAG shall loan to lVDA 51.2 million fiom East Valley FAU funds. Such fuDds
shall be forwarded to lVDA within thirty (30) days after IppI'OYIl of this apeemeqt by
all parties hereto and execution by authorized represenlllives of the parties. The time
for forwardin& tbe loin ,.<<eed. may be delayed to a Iarer date if such is determined
to be appropriate by lVDA for medin& its project fundin& needs.
B. Tbis loin is contin&ent upon a determination by SANBAG that there are sufIic:ient
available East VaDey FAU funds to allow for the loin to be made.
C. ThO"loan funds shall be used by IVDA for preparation or plans and specifications for
nuQor arterial streets u follows:
TI~ Rosa Avenue Connector
Orange Show Road - TIppecanoe to Waterman
Orange Show Road - Waterman to Arrowhead
D. IVDA shall pay interest on the loaned funds from the date the loaned funds are
provided to it until such funds are repaid. The interest rare SANBAG could otherwise
earn on such funds during the entire period the loan is outstanding shall be paid by
IVDA to SANBAG. Such interest rate shall be u cletennined by SANBAG's Director
of Fmance and Administration.
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6453/4.92 .
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E. The loin IIlOcnaecs interest due shall be paid 0 IVDA to SANBAO from
constnactiOll funds for the projects identified in paraaraph C above except that in any
event, the loin principal and accrued interest shall be repaid by IVDA to SANBAG
within five (S) years of the date of receipt of funds from SANBAG reprdless of
whether construction funds become available for rqlllyment within such five (S) year
period.
F. IVDA shall approve and execute the promissory note attached hereto u Exhibit A at
the same time this acreement is approved and executed by IVDA. Said note is
inc:orporated into this acreement by reference.
u. ll\Aft Guarantee~
A. REDEVELOPMENT AGENCY acrees to unconditionally and funy parantee the
rqlllyment of the loan and accrued interest owed by IVDA to SANBAO under this
acreement and Exhibit A in the event IVDA does not pay u a&reed to here1n or is
unable to pay. REDEVELOPMENT AGENCY promises ud IIreeI that it wiD pay
in fun any principal and accrued interest whidl is due and unpaid by IVDA under this
agreement within thirty (30) days of a written demand for payment being made by
SANBAG to REDEVELOPMENT AGENCY.'
m. Genen.l Pmvisjonl~
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A. IVDA agrees to indemnify, defend and hold harmless SANBAO, its agents, offic:els and
employees from and against any and all liability, expenses, including defense costs and
1ep1 fees, and claims for damaces of any nature whatsoever, inc1udina but not limited
to, bodily iqjury, death, personal injury or property damaces, adsina from or connected
with IVDA'I projects and activities funded by the loin under this agreemenL
B. No party hereto shall assign or delepte any of its ri&hts, duties or obliptions under
this acreement without the prior written consent of the other parties.
C. This agreement shall remain in effect until the loan, plus accrued interest, is repaid ia
fun.
" D. In the event suit is instituted to collect under this agreement, SANBAG shall be entitled
to costs and attorneys fees involved in collection from IVDA under the qreement and "
for any action to collect under the guarantee of REDEVELOPMENT AGENCY.
IN WITNESS mEREOF, the parties hereto have caused this agreement to be executed by
their respective officials thereunto duly authorized.
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By: By:
RONALD D. REITZ, SANBAG Counsel IVDA Counsel
Dare: Dare:
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SANBAG
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By:
LARRY RHINEHART, President
Dare:
APPROVED AS TO FORM
RmEVELOPMFNr AGENCY OF mE
CITY OF SAN BERNARDINO
By;
TITLE:
Date:
INlAND VAU."OEVFJ..OPMENT AGENCY
By:
TITLE:
Date:
APPROVED AS TO FORM
APPROVED AS TO FORM
By:
Redevelopment Agency Counsel
Date:
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