HomeMy WebLinkAboutR04-Redevelopment Agency
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AGENDA ITEM INFORMATION SUMMARY
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GENERAL INFORMATION:
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CITY DEPARTMENTAL REVIEW:
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INFORMATIONAL DATA FORWARDED TO CITY DEPARTM NTSI
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COMMENTS/CONCERNS: Include pertlnelll commellls and concerns of offices and persons clearing the
IUmmary. such IS colllroverslallssues. time constralllls and funding compllcetlons.lndlcate dales when
action must be taken.
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. Redevelopment Agency · City of San Bernardino
300Ncrlh "D. S_ FounbFloor . SIIlBemonIiDD, CllifCllDia 92418
(714) 384-SOll1 FAX (714) 888-9413
PrIde "
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Sle_ H. Dukett
Execwive DiIector
August 1. 1989
NATIONAL DEVELOPMENT COUNCIL
Synopsis of Previous Commission/Council/Committee Action:
05-07-84 CDC adopted Resolution No. 4607 which authorized the execution of an
agreement with the National Development Council for consultant
services.
09-09-86 CDC adopted Resolution No. 4923 which authorized the execution of an
agreement with the National Development Council for consultant
services.
(continued one page 2)
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Recommended Motion:
(COMMUNITY DEVELOPMENT COMMISSION)
Authorize execution of the attached contract for services with
National Development Council. Inc.
Respectfully Submitted.
a:.~rL- - .
Steven H. Dukett. Executive Director
Supporting data attached: Ves
FUNDING REQUIREMENTS:
Hard:
All
Project: A 11
Commission Notes:
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Agenda of: Auqust 7. 1989
Item No.
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Redevelopment Agency
Synopsis of Previous Commission/Council/Committee Action:
(continued from page 1)
09-08-87 CDC adopted Resolution No. 5041 which authorized the execution of an
agreement with the NatIonal Development Council for consultant
services.
08-15-88 CDC adopted Resolution No. 5141 which authorized the execution of an
agreement with the NatIonal Development Council for consultant
services.
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Redevelopment Agency
S T A F F R E P 0 R T
It Is recommended that the Community Development Commission authorize the
execution of a contract for services with the National Development CouncIl,
Inc. '
BACKGROUND
The National Development Council (NOC) was the first company created In the
United States to specialize In economic development assistance, and It has
been a leader In the field for 17 years. As a private, not-for-proflt
corporation, NDC's primary objectlvesare job creatIon and business
development. The focus of their work Is assisting the public sector In
matching economic development financing needs with the best sources of
capital, much like Investment bankers In the private sector. Their
professional staff Is drawn from banks and government lending agencIes, and
thus provides them with knowledge and experience In both private and public
sector financing sources.
The NDC also provides training programs In financIal packaging custom designed
to meet specific organizational needs. NOC's Economic Development Finance
Professional CertifIcatIon Program has set educational standards for the field
of economic development.
On May 17, 1984, the Community Development CommissIon entered Into a one-year
agreement with the NOC for $50,000.00 to cover consultant services. The
agreement has'been renewed on a yearly basis and provided consultant services
for the following areas:
1. Industrial Development;
2. Commercial Revitalization;
3. Community Development Float Financing;
4. Small Business Administration Section 504 Financing;
5. HUD Urban Development Action Grant(s);
6. Hotel Financing Mechanisms;
7. Downtown RevitalizatIon;
8. Transit/Parking Structure; and
9. Central City South Study Area.
Over the past year, NDC has provided the following services to the Agency:
Hestslde Shopping Center
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The NOC served as the lead consultant for the Hestslde Shopping
Center grant, and assisted In packaging the application, and
represented the Agency during "negotiation week" with HUD which
resulted In the award of the grant to San Bernardino.
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Redevelopment Agency
· Monthly status reports to Jana BIckle, Los Angeles HUD area office;
Steve Sacks, San Francisco HUD regional offIce; Dawn Kuhn and Roy
Priest, Hashlngton, D.C. HUD UDAG office.
· Heekly teleconferences and monthly meetings with Developer (Alexander
Haagen and Chris Fahey) regarding major tenants, UDAG, status of
public financing, and DDA.
· Monthly contact with Lucky real estate dIvision Vice President Chris
Huss regarding availabilIty, desirability and terms and conditions of
Lucky lease.
· Monthly meetings with Agency staff and/or Mayor regarding status of
developer, major tenants, UDAG and other public financing and DDA
terms.
· Monthly-meet1ngs with San Bernard1no County staff (T. Laur1n, R.
Resendez, D. Burgess) regarding status of project In connection with
County $2,750,000 float loan commitment.
· Prepared semi-annual monitoring report for HUD.
TralnlnQ
Three training sessions on 1) federal economic development programs,
2) operating company credit analysis, and 3) real estate finance.
Empire Dome
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· Met with developer and reviewed financing options. Structured tax
exempt approaches. Obtained bond counsel's written opinion on
vIability of recommended approach.
Sunset Group
· Met with developer and reviewed Sunwest and Court & "E" projects.
Structured UDAG's and draft applications for submission.
Staff Services
· Served as Interviewer on economic development consultant hiring panel.
· Researched and presented Section 8 Income limits for the City of San
Bernardino.
· Reviewed HAB Land Development Corp. project In preparation for EDA
grant application for two bridges.
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Reviewed potential EDA projects with staff and EDA representatIves to
determine likely EDA response.
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Redevelopment Agency
· Downtown revitalizatIon area survey of lenders willing to particlpate
In S8A programs. Prepared IdentIfication report.
As HUD's UDAG program Is phased out, It Is anticipated that the need for NDC's
specl a 1 i zed servl ces as "mortgage bankers" for publ1 c agencl es wlll become
even more Important over the next year. Staff recommends that the NDC
agreement be renewed effective August 1; 1989, at the annual cost of
$50,000.00. The agreement Is bIllable monthly at the rate of $4,166.67 and
Includes a 30-day cancellation clause.
RECOMMENDATION
The attached agreement has been executed by NDC and approved as to form and
legal content by Agency Counsel. It Is, therefore, requested that the
Commission authorize the executIon of the attached agreement for services with
National Development Council, Inc.
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CONTRACT POR SERVICES
\...
THIS CONTRACT, entered lnto as of the
day of
,
1989, by and between THE COMKllNITY I.EDEVELOPMENT COMMISSION (the .Commission")
and THE NATIONAL DEVELOPMENT COUNCIL, INC., a not-for-profit corporation,
organlEed and uisting UD4er ~he laws of the State of New York ("Contractor").
WITNESSETH
WHEREAS, the Comataalon ls undertaklng econOll1c activitiea pursuant
to the Housing al1d Deve1op11ent Act of 1974, Public Law 93-383 and General
Economlc Developaent Activltiea (the .Act"); ad
WHEREAS, PUr8\I8Dt to 8uch Act, the Comatulon la undertaldng certain
(""'"
\..., activities necessary for the pla1lD1ng or _ecutlon of an EconOlllc Developllent
Project (the "Project); and
WHEREAS, the COllllbdon lied res to engage Contractor to render
certaln technlcal advice and asslstance 111 cODDectlon with certain
undertakings.
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Em1blt "1"
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HOW, rBEREFORE, the parties hereto do autua11y aaree .. follows:
1. Scope of Services: Contractor shall perfon all of the
necesaary services under this Colltract in eOllDectiOll with &lid respeeUq the
follcnr1q:
1. Assiat ill City IDduatrlal DevelOpllent.
2. Aasiat ill eo..ereial aevita1baUoll aDd CoIaureial
Deve1opaellt.
3. Asaiat in C_UDity Developllent float fi_1D&.
4. Aaaiat ill S..ll Jusllless Ada1l1istraUOIl SecUOIl 504
fill&nelq.
S. Assist in other ereaUve fill&nciq, utllldlll federal
aaencies aDd other nOll-profit vehieles.
6. Asaist ill the DegotiaUOIl ad e10aiq of UllAGs with HOD.
2.
Tille of Perf01'llance: The services of the Colltractor are to
ellllllel1Ce OIl Auauat 1, 1989, conUDU1q thereafter for a full ealelldar year,
aDd shall be undertaken aDd eOlllp1eted in sueh sequence as to a..ure their
expeditiouB eOlllp1eUOIl in light of the purposea of this COIltract.
3. CompeDllaUon aDd NethOO of Pa.,.ellt: The Coma1SaiOll will pay
to Contraetor the ..GUIlt of Fifty Thousand DollarB <tso,OOO.OO), which sua
shall eOllBtitute full aDd eomp1ete compenBatiOll for Contractor'a aerviceB
hereUDder.
Exhibit "I"
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Such aUll will be paid in the follov111& -.r. in every ca.e
subject to receipt of s requiaition for paJllent froa Contractor:
(a) Pour Thousand One B11II4re4 Sizt,-sb: Dollars and
Sb:ty-Seven Cents ($4,166.67) s _th payable at the begiDD111& of each aonth.
4. rens and ConcUtiona: This Contract 18 aubject to and
incorporates the Pro'lisiona attached hereto aa Part n - ren. and Conditions
(Pora B-621B) and Contract for Profes8ional Services. CoamUDity DevelDplllent
Progra., Part n, reras and Con4itiona Pora 6/77.
s. renination: This Contract _y be teninated by either party
upon thirty (30) daya written notice. In the event of tera1nation. the fee
payable to Contractor will be prorated to the end of the thirty (30) day
period; and the COIIIIis8ion shall thereafter have no further paJllent obligation.
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