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HomeMy WebLinkAboutR03-Redevelopment Agency ... ... , ' , ( f'" '- " ,,--,,'; K1WIlVJSJ.lll'llBBr COIRlnu: MINUTBS RBGULAJl IID'rIIlG July 9. 1992 4:00 p... The Regular Meeting of the Redevelopment Committee was called to order by Vice Chairman Michael Maudsley at 4:07 p.m., in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino. ROLL r.&1.1. Roll Call was taken with the following members being present: Committee Members Jac:1t Reilly and Michael Maudsley. Absent: Chairwoman Esther Estrada. STAPP PRES'Ilft Timothy C. SteiDhaus. Administrator, Economic Development Agency; Kenneth J. Henderson. Executive Director. Development Department; Phil Arvizo, Executive Assistant to the Council; Dennis Barlow. Senior Assistant City Attorney; Lorraine Velarde. Executive Assistant to the Mayor; La Vonda Pearson, Recording Secretary, Development Department. O'l'R1!1lS IN A'l"l'l!llDAWCR James Desltus. General Manager, Marulto Hotel. Timothy C. Steinhaus. Administrator, Economic Development Agency, requested that item number "2" be taken out of order. 2. MAJlIJU) Rll'rBL ASSJS'I'AWCR John Hoeler, Project Manager. Development Department. stated the Marulto Hotel had requested assistance from the Agency due to an operating deficit. He indicated the present company had continued to put money into the Marulto without any success and that it was now in bankruptcy. Mr. Hoeger said the Marulto was considering closing the hotel permanently. but have proposed to change its marketing strategy by malting the hotel a Radisson Hotel which haa a renowned reservation system and is well-known. He said the Radisson would operate a travel agency as well as a 1-800 number for travel bookings. uGULAJl IID'rI1IG lap: 2340B K1WIlVJSJ.lll'llBBr comnnu: JULY 9. 1992 - 1 - ~ ~ 3 1-- ,- I '1-.... ." ... , ... , , c '"-' Mr. Hoeger briefly explained the terms of the agreement indicating it requested the use of its additional 300 parking spaces and also improvements to the frontage of the hotel. He also mentioned that the Agency currently pays the hotel $1200 a month to help offset its utility payments. He said if the agreement is approved. the Agency can discontinue those payments. Timothy C. Steinhaus, Administrator. Economic Development Agency, stated it had been difficult negotiating the agreement due to the many changes that need to occur. He said the hotel would like to make the name change by August 1, 1992. James Deskus, General Manager. Maruko Hotel. stated he had been the General Manager since November, 1991. He spoke on the bankruptcy proceedings taking place, and also the difficulty in negotiating due to the trustees of the Marulto living in Tokyo. He explained that the Marulto is not a well-known Hotel which has made it hard to market. He said that the Radisson Hotel chain had given them the go-ahead to make the conversion. contingent on approval of funds. He felt that by the end of the year 1993, the hotel would be at a break even point. Committee Member Reilly asked questions regarding the bankruptcy. Mr. Deskus said if the itea was approved. the hotel could have an emergency meeting with the court to explain the situation, and he felt they would receive approval. He indicated that '1okyo had consented to the Radisson name change. Lorraine Velarde. Executive Assistant to the Mayor, said that the Mayor felt comfortable that the bankruptcy court would give the hotel another chance if the City was backing them. Vice-Chairman Mauds1ey expressed concern regarding certain languaae in the staff report and asked that it be clarified before the Commission Meeting. ~ nt'!._II[RIJA"IO. --~- The Committee recommended this item for approval to the Community Development Commission. 3. AEROSPACE 'I'IlA_lrION I..H"!IU. Jim Sharp, Project Manager. Development Department. indicated that this request was from the Inland Empire Bconomic Council (IEEC) for a grant of $22,500 to be used as initial funding for the Aerospace Program. He stated that this item was previously approved by the Commission to enter into a grant application for this program. RBGULAJl IID'rIBG l.mp: 234GB IUWAVI5LOPIIBII1' COIRlTTllB JULY 9. 1992 - 2 - :3 1--,. ... I \'1Iill ... ... , .. ... "" r"---,",- V "'-' Timothy C. Steinhaus. Administrator, Economic Development Agency, said staff had been meet.ing with the IEEC and the Mayor. on putting together the Transition Task Force. which included Congressman Brown. SANBAG, and also AQMD. He stated the funds requested in the staff report would be used to provide training for personnel on lay-off status. Mr. Sharp explained the agreement proposed and stated they were hopeful that this transition program would be helpful to other industries in the future. He also indicated that the budget would fund the entire program. Kenneth J. Henderson. Executive Director, Development Department. stated the City was a major beneficiary in the tax dollars from TRW and that was the main reason they were being approached for assistance. Vice-Chairman Mauds1ey stated that TRW had a responsibility to its employees and felt they should be making contributions to the program as well as the other agencies. Lorraine Velarde, Executive Assistant to the Mayor, stated that in negotiations. TRW was asked to come back with some sort of commitment for its employees. Mr. Henderson, emphasized the need to retrain the employees and try to keep them within the City. DC~K....A"IO. The Committee recommended this itea for approval to the CODlllUnity Development Commission. 4. !lAW _AlIDtBO RBGlnwu. .lIRPORr AIITIIORlTY ASSBSSIIBft ~ Timothy C. Steinhaus. Administrator. Economic Development Agency. stated each city was asked to contribute $7500 a vote to the Regional Airport Authority. He said that San Bernardino had two (2) votes and because the Regional Airport Authority is located in the Norton project area. the funds were asked to be disbursed from the Redevelopment Agency. He also indicated that the local benchmark rate of interest would be used. -~- DI"----K....ATIO. The Committee recommended this item for approval to the Community Development Commission. RBGULAJl IID'rIIIG lJIp:2340B RBDllvSLOl'IIBIIf COIRlTTllB JULY 9. 1992 - 3 - 3 1---- o ......., i. PROPOSED FY 1992/1993 BCOROMIC DKVKLOPIIBlft AC1!1ICY (IDA) B1JDGBT - (... Timothy C. Steinhaus. Administrator, Economic Development Agency, briefly reviewed the discussions that took place at the last Committee meeting. He stated that last year was a shake-out period for the Agency and that this year staff was recommending few changes. He indicated that the Agency had received many comments from outside organizations on its operating procedures. He said the Agency was only recommending one major change which was the establishment of the Office of Business Development to replace the Economic Development Council. The other changes would be the elimination of three (3) positions that are unfilled and the addition of the Assistant to the Administrator. He indicated they also would like to request the upgrading and re-c1assification of another existing position. Barbara Lindseth. Manager. Administrative Services, gave a brief overview of the total budget. She explained that there was a $500.000 savings in the administrative personal budget due to the management personnel voting to forego their cost of living increase for the year. Ms. Lindseth itemized the $90 million explaining where the funds would be coming from. Kenneth J. Henderson, Executive Director, Development Department, stated the entire budget was divided by project areas. He noted some of the major accomplishments that were completed by the Agency for the fiscal year. including the West Side Plaza. acquisition of the Pussycat Theatre, approval of the Mount Vernon Corridor and Specific Plan. and also the American National Can. .. , Mr. Henderson also commended the Contracts Administration unit for its excellent work on monitoring various programs. projects and activities. ~ Discussion ensued regarding other projects the Agency has completed or began and the outstanding accomplishments they have made within the City. :---: Vice-Chairman Mauds1ey recommended staff inform the Commission of its intent to bring the budget to the July 20. 1992 Co_isaion Meeting and to advise them that they can call if they have any questions. Ut'h-.....JA'r'IOW The Committee recommended this item for approval to the Community Development Commission. f!J RBGULAJl IID'rIIIG lJIp:234011 - 4 - RBDBVBLOl'IIIIT COIIIITTIlB JULY 9. 1992 -. .3 1--" ,. ... , " ,. " x'-.. ,., "5. --. AIl.TOUU TO CLOSED saSION '-" There were no items for discussion in Closed Session. 6. AJ).10UJUWlllUll".J: There beina no further business for discussion, the Redevelopment Committee Meetina was adjourned at 5:34 p.m. to July 23. 1992. APPROVED BY: Michael Mauda1ey. Vice-CbainlUl Redeve10paent COBalttee ~ 1 ~ REGULAJl IID'rIllG lJIp:2340B IUWJIvllLOPMBIIT COIIIITTIlB JULY 9. 1992 - 5 - 3