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CITOOF SAN BERNARDI to - .R~QU~ FOR COUNCIL ~
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From: KENNETH J. HENDERSON, DIREfCllf.-ADMIM. o''f.Ject: ~~~~~S~grjNg~LA~~~~~vI~~E~D~~ MAYOR AND
Dept: COMMUNITY DEVELOPMENT .:3; MAR 25 PM 3: 30 ~~~~~~~~T~~~:E~O~~ ~g~~:~~ND EMPIRE
Date: MARCH 25, 1987
Synopsis of Previous CouncillCtion:
November 18, 1985, the Mayor and Common Council considered this item and referred it to the
Ways and Means Committee.
December 2, 1985, the Mayor and Common Council adopted Resolution #85-503 authorizing the
execution of a grant deed conveyance, setting a joint public hearing and authorized the
sale of property located at 972 North Mt. Vernon Avenue, to the Hispanic Chamber of Commerce.
January 5, 1987, the Mayor and Common Council considered a rehabilitation loan to the Chamber
and continued the matter to January 19, 1987.
January 19, 1987, the Mayor and Common Council continued the matter to February 2, 1987.
(Synopsis continued to next page)
Recommended motion:
That the Mayor and Common Council rescind its action of February 2, 1987
approving a CDBG rehabilitation loan to the Inland Empire Hispanic
Chamber of Commerce.
L.~ G. iJr.JJ~4
Ignature
Contect penon:
Ken Henderson
Phone:
5065
1
Supporting dig IttlChed:
Staff Report
Werd:
FUNDING REOUIREMENTS:
Amount:
NIA
Source: (ACCT. NO.)
(ACCT. DESCRIPTION)
Flnence:
Council Notel:
1'5.0112
Agendl Item No. ~ 0 ,
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o
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SYNOPSIS CONTINUED...
February 2, 1987, the Mayor and Common Council approved an
$81,000 CDBG rehabilitation loan to the Hispanic Chamber of
of Commerce with a twenty (20) year term with interest
accruing at five percent (5%) per annum.
0143/3-25-87
3-')..5-<(7
CI10 OF SAN BERNARDI~ - REQU~T FOR COUNCIL A~N
STAFF REPORT
On February 2, 1987, the Mayor and Common Council approved a
CDBG rehabilitation loan to the Inland Empire Hispanic
Chamber of Commerce (HCC) in the amount of $81,000. The
principal of the loan was deferred with the Chamber required
to make interest only payments for twenty (20) years, the
term of the loan. At the end of twenty (20) years, the loan
would be ftrolled overft if the Chamber continued to utilize
the building as originally envisioned.
The above action was taken subsequent to the sale of the
building, a former City fire station, to the Chamber for one
dollar ($1.00) and for the express purpose of allowing the
Chamber to secure a CDBG rehabilitation loan from the City.
Attached is a copy of a letter from George Aguilar, President
of the Hispanic Chamber of Commerce, to Councilwoman Esther
Estrada. The letter indicates the desire of the Chamber's
board of directors to forgo the loan because of monthly
interest payments and an increase in the total amount of the
loan. Although the letter does not provide appropriate
background information relative to this project, staff is
recommending that the Mayor and Common Council rescind its
previous action approving the loan to the HCC.
It should be noted, however, that significant costs have been
incurred by the City in anticipation of the loan going
through. Those costs are as follows:
Structural Engineer Report:
Property Appraisal:
Plot Plan:
Title Report:
TRW:
$1,000.00
$1,200.00
$ 450.00
$ 405.20
$ 40.00
$3,095.20
.
The above information does not
legal, spent on this project.
available at the April 6, 1987
include staff time, including
This information will be
Council meeting.
Staff recommends adoption of the form motion.
~G.~~
Kenneth J. Henderson
Director of Community Development
KJH/lab/0144
3/25/87
75-02M
.
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GEOIIGE A. AGUILAII
Woe "'--,
I8AIIL VALENCIA
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_!lOA LE MASTER
fIro -.,ery
HIRAM DIAl
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ANASTACIO LOZADA
fIro. rre-..,
PEDRO MUNOZ
~
MARIO POlIIlAlI
ANlONIO CHAVEZ
ERNEITO VASQUEZ
ENRIOUE GONZALEe
,.., "...'"
UTHER MAlA
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March 13, 1987 \~~l "'~ \ 1 ~M \(): \ 0
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Councilwanad'"'Ester Estrada
City of San Bernardino
300 North -D- Street
San Bernardino, CA 92418
Dear Ester:
I am writiD;J to inform you of the Qlantler's decision not to
go forward on the Federal Block Grant Loan.
The decision was based on the fact that the loan was not what
we had agreed on. The new t.erIl8 placed on the loan made it
inp)ssible for us to live with.
We appreciate the work dale by you and others at City Hall,
but the in::reaseof the loan anount for an estimteeS $35,000
to $81,000, plus the change of the deferred loan to a IItlI'1thly
payment is UI'JolOI'kable.
We felt that the buildiD;J after renovation under the city's
plan would not be of nore benefit to the Olantler or the
CXlIlIlUllity .
ly,
. AGUIIM, President
Inland _ire Hispanic:
Olantler of Camerce
.
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. San Bernardino, CA 924 (ffi\;jfl~ '~2.188
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972 N. MOunt Vernon Avenue' .