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Home My WebLink AboutR11-Redevelopment Agency -_-"I I \. , ( . "" ( - - - - D~ELOP.E.r DEPARr~.r 01' TIIB crn 01' SAIl Jl.1nIWnDIIO RBOUBSr FOR COIBISSIOK/COUllCIL ACTION From: Subject: PllBLIC BllrBRPRISE CBBTBR BUILDIBG (PEC) KENNETH J. HENDERSOR Executive Director Date: October 14, 1992 SvnoDsis of Previous Comaission/CoUDcil/~ittee Action(s): In January 19, 1976, the Agency acquired the PEC building. RecommPnded Motion(s): 0PBl'f PllBLIC BBARIlIG CLOSE PUBLIC BBARIlIG (COIIIIIIUI1itv Deve1o.......t COIIIIlission) ImrIOK: That the Community Development Commission authorize and direct staff to enter into negotiations with the Community College District for the express purpose of effectuating the acquisition by the Distric~ and the sale by the, Agency of the Publ,lc ,Enterprise Centerubullding. ~OK Executive Director Administrator Contact Person(s): Ken Henderson/Stafford Parker Phone: 5081 Project Area(s): Rorthwest Proiect Area Ward(s) : Six (6) Supporting Data Attached: Staff ReDort FUNDING REQUIREMENTS: Amount: $ RIA Source: NIA Budget Authority: RIA ------------------------------------------------------------------------------- Commission/Council Rotes: ------------------------------------------------------------------------------- KJH:SWP:lag:1055E COIKISSION MBBrIIIG ACEImA. Meeting Date: 10/19/1992 Agenda Itea llumber: ~ __l (~ <: ( ,.' - DzQZLoPRz.r DZP~Rr~Z.r OF rHB CI1T OF SAW IlIlv.nDlBO STAFF UPORr Future DisDOsition of Public Bntervrise Center (PRC) Bui1dina A Public Hearing has been scheduled to consider "General Use of the Public Enterprise Center" located at 1505 West Highland Avenue. The hearing was announced (notice attached)and fully discussed at the Northwest Project Area Committee meeting on October 12, 1992. While there has been prior dialogue between City representatives and interested potential users of the building that was acquired in January 1976, no contractual agreements have been entered into and no "handshake deals" have been made either for transfer of the building ownership or relocation of its tenants. The key purposes of the public hearing are multiple, some of which involve citizens interested in proposed and existing uses of the building, inform the community about the buildings future disposition and seek Council direction to staff relative to the buildings future uses and ownership. In accordance with state law and existing administrative practice the Agency does not, and cannot, act as a long-term investment owner or absentee landlord of acquired property that is not necessary for the its own operations. This is especially true when such property, superfluous to Agency administrative and operational needs, is capable of being disposed of at a reasonable rate and used in a manner that would further redevelopment project area goals and objectives. It is both desired and anticipated that entities or persons having an interest in the building would make this known at the public hearing; Any such proposal should certainly satisfy concerns about (a) uses beneficial to the community; (b) pragmatic viability and stability of any aspiring owner/user; (c) owner/user financial stability and debt carrying capacity; (d) ability of the entity to carry out its plans without financial help from the Agency; (e) adherence to the federal Economic Development Administration property management agreement; and (f) uses related to the Agency's responsibility to foster economic growth within the community. Clearly, there will be differing views on some aspects of this criteria, although the degree of financial stability and assistance aspects are clear-cut and measurable. Intermittently, during the last two (2) years, the staff has discussed disposition of the PEC with representatives of the San Bernardino Community College District. Although nothing was concluded, the discussions revolved around several key concerns: type of uses proposed, benefit to the community, benefit to each organization, sales ------------------------------------------------------------------------------- KJH:SWP:lag:l055E COIIMISSIOIl IlEBTIlIG AGKllDA ReetiD& Date: 10/19/1992 Agenda Itell lIumber: /I ( , ,.,. <: <: . - DEVELOPIIDT DIP~ STAn' U:POar Public Enterprise Center Building (PEC) October 14, 1992 pqe 1IuIIber -2- ,"" "~ .....,.I price and other real property to be traded, and other related issues. These meetings have been discontinued for some time but it is timely and fitting to initiate them again--asauming the Diatrict is still interested. The opportunity presented by the Distric's indicated interest in the subject facility cannot be, in the opinion of staff, overstated. To have an institution of higher learning, such as the District, occupy the PEe building neatly meshes with the Agency's overall goals and objectives for the Northwest Redevelopment Project Area. More specific reasons which support the staff recommendation are set forth below: o The Agency is currently sponsoring several major projects in this part of the community, such as the West Side Plaza, Arrow Vista Homes, Arrowhead Woods senior housing complex, and a comprehensive neighborhood improvement program which has as its centerpiece a $500,000 sewer installation project. The District's interest in the PEC building reaffirms the success of the Agency's redevelopment efforts and inspires additional investor confidence in the revitalization of the west side as a whole. o With additional projects in the offing, such as the San Bernardino Community Hospital professional office building and the Hospital's recently approved aixty-bed rehabilitation hospital, the sale of the PEC building to the District would enhance the area's continued growth in professional and white collar jobs. o Any market feasibility atudies commissioned by private investors would by necessity take into account the growth rate of higher-paying jobs in the area. The successful sale of the PEC building to the District, along with the successful implementation of the projects referenced above, would make easier the task of attracting a financially strong, reputable, private lending institution. o Acquisition of the PEC building by the District would create a critical mass of uses and people which would bode well for area businesses because District employees would be customers of existing restaurants, grocery stores and the like. o Office and community uses by the PEC occupants, under the auspices of the District's ownerShip, would alleviate the financial responsibility of Agency management, maintenance and major repairs that cost over $120,000 last fiscal year. ------------------------------------------------------------------------------- KJH:SWP:lag:1055E COtKlSSIO. IlKETIlfG AGElIDA Meeting Date: 10/19/1992 Agenda It.. lIlaber: ~ _c, ( , , "" <: <: DEVELOPMDT D&P~ STAFF IlBPORT Public Enterprise Center Building (PIC) October 14, 1992 Page lImIber -3- ,/".,.-",. '''-*' In view of the above, it is logical and appropriate that staff should reinitiate discussions with the District to explore strategies that would divest the Agency of the PEC's ownership in a manner that is mutually beneficial to the Agency, District and CQaDUnity. Based upon the foregoing, staff recommends adoption of the form motion. J. EDOlf, Executive Director Deve1o~ent Departaent ------------------------------------------------------------------------------- KJH:SWP: lag: 1055E COIMISSIOJI IIDTIIIG AGEIIDA lleetiD& Date: 10/19/1992 Aaeuda It.. II1aber: ~ _c (~ -,,--------- , " -' Pallo Bill Senior Lunch Muki-Purpose Room --r- w :::) Z Patio W ~ Z a: w t; w <: :: Lobby <: <:8 "ie ~- <: W HIGHLAND AVENUE 1 Northwest PAC 2 Westslde Drop-In Centerl Postal and Utility Center 3 CATV 4 people's Choice 5 Library 6 Neighborhood Watch PUBLIC ENTERPRISE CENTER /I <: (, ~, ..' <: . c ~) DBVELOPIIDr DBPhUIUI'c 01' TIIK CITY 01' SAIl RRn'nnnro IIOTICB 01' PUBLIC IlEARIBG GBIIDAL USB 01' TIIK PUBLIC Blft'BIlPRISB l.Uluut The Community Development Commission of the City of San Bernardino will conduct a Public Hearing regarding the uses, current and projected, for the Public Enterprise Center located at 1505 West Highland Avenue in the City of San Bernardino. The hearing is scheduled for the COllllllUJlity Development Commission's meeting of October 19, 1992 at 4:00 p.m. The purpose of the Public Hearing is to obtain the views of citizens relative to the present use of the Public Enterprise Center and to solicit ideas and recommendations for the future use of the facility. Those citizens interested in more detail regarding this issue, should contact Mr. Arthur J. Hassel, Project Manager, at (714) 384-5081. Individuals that are unable to attend the meeting to discuss their concerns may submit written comments to: Arthur J. Hassel, Project Manager Development Department 201 North "E" Street, Third Floor San Bernardino, CA 92401-1507 In the alternative, they may also contact Mr Hassel and express such concerns verbally. E.I5lUU5II1 J. HEImBRSOW, Executive Director, Development Department by: All.TIIlJR J. HASSEL, Project Manager KJH:AJH:023le II