HomeMy WebLinkAboutR03-Redevelopment Agency
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OF TIIB CITY OF SAlI BIlo.nnIIIO
UOOBST FOR COIMISSIOIl/C01ll!lCIL ACTIO.
From:
KEMlETH J. HENDERSOIl
Executive Director
Subject: IlILAlID BBVERAGB IIIC.,
LOAlI GlJARAlITBB
Date:
September 30, 1992
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SvnoDsis of Previous CaBBission/Council/C~ittee Action(s):
On 9/24/92, the Community Development Commission approved the
structure and deal points relative to the financial assistance in
providing a "loan guarantee" to Inland Beverage Inc.) for the
relocation, expansion and tenant improvements of their new facility
located in the City of San Bernardino.
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Recommended IIotion(s):
(C~itv Develoaaent COBBission)
MOTIOIl:
That the Community Development Commission authorize the
Executive Director to produce and enter into a "loan
guarantee" agreement between the Economic Development
Agency and Inland Beverage, Inc., for loan relative to
the relocation, expansion and tenant improvements of
Inland Beverage, Inc., subject to the terms and
conditions set forth in the staff report.
~
Administrator
~O.
Executive Director
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Contact Person(s): Kenneth Henderson/Jim SharD
Phone:
5081
Project Area(s): Central City Pro1ect Area
Ward(s):
First
Supporting Data Attached:
Staff ReDort
FUNDIIIG REQUIREMENTS:
Amount: $750.000 Loan Guarantee Source:
II/A
Budget Authority:
Reauested
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Commission/Council I1otes:
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KJH:JWS:dle:5933R
COIMISSIO. IIDTIl!IG AGBIlDA
lIeetin& Date: 10/05/1992
Agenda Ite. ~er: -.3
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SrAn' UPOJIT
In1l1D4 Beverue Loan Guarantee
In November of 1991, the Redevelopment Agency, for the sole purpose of
promoting the redevelopment activities within the Central City South project
area, acquired the land and facilities known as In1and Beverage, Inc. Said
acquisition provided for a one year interim occupancy by the seller during
which time seller would identify lID4 relocate to new facilities. During the
course of the search for new facilities, Inland Beverage Inc., had been
solicited by neighboring cities which offered incentives meant to lure the new
facility and work force from San Bernardino. With "time being of the
essence," Mr. Mason's personal cOlllllitment to the City of San Bernardino and
the relative availability of an adequate facility, Mr. Mason Chose to remain
and expand his facility and work force within the City of San Bernardino.
In the spring of 1992, Mr. Mason (President, Inland Beverage, Inc.) approached
the Agency requesting technical assistance relative to his acquisition and/or
leasing of a new distribution facility. Mr. Mason was experiencing difficulty
in consummating negotiations for the former "Mead Paper" facility located at
1455 Riverview Street in San Bernardino. Mr. Mason expressed a personal and
professional interest in remaining within the City of San Bernardino and
inquired as to whether the Agency could provide him professional and possible
financial assistance relative to the acquisition of a new facility. On
several occasions subsequent to receiving the request, staff met with Mr.
Mason and provided him with options relative to his ongoing negotiations.
During the sUlllller of 1992, it had become apparent to both staff and Mr. Mason
that it might be necessary to provide Inland Beverage Inc., with some form of
financial assistance to complete his lease negotiations, tenant improvements,
and relocation to the former "Mead Paper" facility. In an effort to continue
the momentum of the negotiations, staff advised Mr. Mason to contact Mr. Gene
Wood of E.B. Woods and Associates to determine the financial and/or economic
considerations and need.
In August of 1992, Mr. Msson was able to consummate a lease agreement with the
Mead Paper Company for the use of the 1455 Riverview Street property. Upon
Mr. Wood's evaluation of the development costs, tenant improvements, and Mr.
Mason's business and cash flow activities, it was determined that a "gap loan"
of $750,000 would be required to successfully complete the relocation of
Inland Beverage Inc., to its new facility. Mr. Wood and Mr. Mason have been
successful in negotiating with Chino Valley Bank for an interim gap loan for
this purpose with the provision that the Agency guarantee such financial
assistance.
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KJB:JWS:dle:5933R
COIMISSIOB IlEBTIlIG AGDDA
lleetiD& Date: 10/05/1992
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SUBJECT: IBLAlUl BB'lIUGB LOU GU.OABTBB
Septeaber 30, 1992
Page w-ber -2-
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The terms and conditions of said loan are as follows:
Net Loan Amount:
Term.:
Points:
Final CODlDitment:
$750,000
3 years
2 + 2 paid by borrower
Pending Agency Guarantee
BORROWER-TO-AGENCY TERMS:
Points:
Commitment:
1% to Agency
Mr. Mason to provide personal collateralized loan
guarantee.
Development Department staff and Mr. Wood have reviewed the financial details
of the move and expansion and concur. Mr. Mason has, therefore, requested
that the department assist his efforts by providing a "loan guarantee" for the
net amount of this financial requirement.
Staff recommends the approval of such "loan guarantee" in that this action
would achieve the Redevelopment Agency's "business retention, promotion and
job expansion" goals and objectives.
Staff recommends adoption of the form motion.
~~O.' ElI:ecutive Director
DeveloPllent Departaent
KJH:JWS:dle:5933R
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COIIIIISSIO. IIIBTIIIG AGElOlA
Reetina Date: 10/05/1992
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Aaenda Itea JIlaber: