HomeMy WebLinkAboutR04-Redevelopment Agency
REDEVELOPMENT MItEIOt-RI!QUEST FOR COMllOslON/COUNCIL ACTION
From:
Glenda Saul, Executive Director
Subject: SAN BERNARDINO COUNTY SCHOOLS
C: Redevelopment Agency
Date: MAY 23, 1988
Synopsis of Previous Commission/Council action:
84-10-01
84-11-27
84-12-17
85-03-07
85-04-29
86-11-03
87-11-05
Resolution 4670 authorized offer of sale.
Resolution 4684-4687 authorized purchase of property of resale of County
Schools.
Resolution 4696 authorized Disposition and Development Agreement.
Resolution 4742 repealed 4696 authorized a revised Disposition and
Development Agreement.
Resolution 4754 provided for demolition and site clearance.
Motion to execute Grant Deed conveyiug "Brown's Alley."
Resolution 5014 authorized indemnity Agreement between Redevelopment
Agency and First American Title Co. relating to Brown's Alley.
(Kayor and eo..on cOuncil)
Recommended motion:
B. Move to Set Joint Public Heariug of the Kayor and Common Council at 11:00 a.m. on
June 20, 1988 to consider the sale of certain real property owned by the
Redevelopment Agency within the Central City North Project Area to the San
Bernardino County Superintendent of Schools.
(Cc...n1ty Development Coaaiaaion))
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A. Move to set Joint Public Hearing of the Community Development Commission at 11:00
a.m. on June 20, 1988 to consider the sale of certain real property owned by the
Redevelopment Agency within the Central City North Project Area to the San
Bernardino County Superintendent of Schools.
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Signature
Contact person:
Phone: 383-5081
Glenda Saul
Supporting data attached:
YES
1st
Ward:
Project: Central City North
Amount: $
N/A
FUNDING REQUIREMENTS:
June 6, 1988
No edverse Impact on City:
t)Cil Notes:
Date:
1
r.~.~C.......l?A.L..H
June 6, 1988 /J_,I
Agenda Item No~
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STAFF REPORT
On Kay 19, 1988, the Redevelopment Co_ittee reco_ended that the COlDIDission consider
$350,000 cash from the San Bernardino County Superintendent of llchoo1s to settle all
outstanding DDA obligations and to exercise their option to purchase Parcel 4 of the
Matty Property (see attached map). The Redevelopment Committee and staff recolDIDends
that a Joint Public Hearing be set for June 20, 1988 at 11:00 a.m. to consider the
sale to County Schools.
BACKGROUND
Initially the County Schools offered the Redevelopment Agency $250,000.00 cash to
settle all outstanding obligations of the parties to that certain Disposition and
Joint Development Agreement between the San Bernardino County Board of Education and
the Redevelopment Agency, dated April 2, 1985. Staff's analysis of the agreement
revealed the following:
County Schools owes the Redevelopment Agency (to compensate for property removed from
the tax rolls) 22 annual payments of $50,000.00 plus a final payment of $37,500.00,
which is due in the year 2010. There is no interest accruing on this money and its
present value is considerably less than the total.
The Redevelopment Agency must reimburse County Schools three more annual payments of
$24,527.00, for a total of $73,581.00. These are payments for off-site improvements
and street widening. Again, there is no interest accruing of these funds.
County Schools also has an option to purchase within ten years the L-shaped Matty
property (Parcel 4 on the attached map). The option states the Agency will sell it at
our cost which is $11.12 per square foot plus the cost of any improvements. For the
13,420 square foot subject property, the base price would therefore be $149,228.00.
The Redevelopment Agency is obligated to at the very least provide dust control of the
Parcel 4. The Planning Department is requiring that we create a fully-improved
parking lot. AssUIIling that the parcel could contain 45 parking spaces at an
improvement cost of $1,000.00 per space for at grade parking, the total would come to
$45,000.00.
If the County Schools exercises its option to purchase the improved parking lot the
cost would be $149,228.00 plus $45,000.00, or a total of $194,228.00. Once again, no
interest accrues on these amounts.
Discounted cash flow analysis (see attached) reveals the value, in today's dollars, of
the County Schools' net obligations and options to the Redevelopment Agency to be
$348,144 at 14.25%.
After considerable negotiation, County Schools raised its cash offer to $350,000.00
(see attached letter) as they may need additional space to add to the existing
building for added personnel. The additional personnel would bring additional
visitors and services to the downtown area.
GS:SG:rm:1284H
June 6, 1988
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cO Mr. Wagoner, JUlA 4/5/88
-an BernardIno County
CJ_a--,. ""~CA'2.1o-301I3
SuperIntendent of School.
CIIartn .. '_a. Jr.. ...rIIl/e.....". . 171.) 387'.38e
, .
Jlarch 31. 11188
ftr. John Haggar
.ed.v.lop..nt Ag.ncy
300 North D Str..t
San .ernardino. California 92418
D.ar John:
This l.tter is a follow-up to our ".rch 23rd discussion r.g.rding the
addition of p.rsonn.l to the Office of the County Superint.ndent of
Schools at.ff. This .ay r.quir. that extra squ.r. foot.g. b. .dded t~
our exi.ting .tructur. loc.t.d .t 601 North E Str.et. w. also re~~eweJ
our offer to -buyout- the re..ining .mount of the -in lieu of .taxes"
factor plus. forgiv.n... of the off-.it. improvement costs.
'(Q;e anticipated p.rsonnel will obviously bring additional services to
I .ernardino County school districts with both school and other
rsonn.l visiting this office to receive those services. I believe
thes. vi.itors will h.lp .aintain a v.ry positive i.age for the
downtown area .s . viable and alive area .s well.. a potential tax
gener.tion .s people vi.it the ar.. .nd spend .on.y for ...ls, lodging
and other expenses.
~hi. offic.. a. . r.sult of growth in San Ber~ardino County, has ~he
....opportunity to work .t bringing educ.tionalconferenc.s into the
downtown and .djac.nt .r.... As w. h.v. discuss.d, the Academic
D.catblon. for s.condary pupil., is one .v.nt I am currently pursuing
to bost in 1990. Approximst.ly 400 youngst.rs, coaches. parents and
other int.rested individuals would att.nd the State comp.tition. This
i. merely one example illustrating that, as the siae of this office and
.rea grows, .n opportunity .xists: for r.venue generation for the CitJ
of San aernardino.
Another example i. th. daily schedule of meetings hosted by my office.
OUr figure. indicate that we .verage over one thous.nd guests and
particip.nt. coming to our buildings each week. "any of these people
come from other .r... of the county and .vail themselves of the
opportunity to purcha.e goods .nd .ervice. in downtown San Bernardino.
c
S_ues from ,he PU' _ LOOIt/ng fD tll. flllure
.
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"arch.'1. 1988
Page 2
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7herefore. our off.r of $350.000 plus for,iv.n.s. of the' $73.582 for
off-site i.prove..nts. not. yet paid by the City of .an ..rnardino,
constitutes a viabl. offer on the part of this .,.ncy to purchase
parcel C and the .buy-up. of In li.u tax li.bility th.t currently
exists on parc.ls 1, 2 .nd 3.
We sincer.ly .ppr.ci.t. the coop. ration the aDA ha. shown to us and
anticipat.that our growth vill compl...nt the ,rovth of the .ntire
downtown .rea in the v.ntur. you curr.ntly ar. cont.mpl.ting. Also. ve
~ook forward to b.ing. participant in continuin, the .nhanc.ment of
the downtown ar.a to .n.ur. this .r.... positive pUblic i.ag. that
r.fl.cts a quality .pproach to r.d.v.lopm.nt and public policy in
g.ner.l. .
2h.nk you .,ain In this r.gard.
Sincerely.
Cb.rle. S. Terrell. ~r.
County Superintend.nt of Schools
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0 PRESENT
VALUE
DATE IN-LIEU OFF-SITE PARKING CASH FLOW 14.257-
30-Jun-88 50,000 (24,527) (45,000) <19,527) <19,527)
30-Jun-89 50,000 (24,527) 25,473 22,296
30-Jun-90 50,000 (24,527) 25,473 19,515
30-Jun-91 50,000 50,000 33,528
30-Jun-92 50,000 50,000 29,346
30-Jun-93 50,000 50,000 25,686
30-Jun-94 50,000 50,000 22,482
30-Jun-95 50,000 194,228 244,228 96,117
30-Jun-96 50,000 50,000 17,223
30-Jun-97 50,000 50,000 15,075
30-Jun-98 50,000 50,000 13,195
30-Jun-99 50,000 50,000 11,549
30-Jun-2000 50,000 50,000 10,109
30-Jun-2001 50,000 50,000 8,848
30-Jun-2002 50,000 50,000 7,744
30-Jun-2003 50,000 50,000 6,778
30-Jun-2004 50,000 50,000 5,933
30-Jun-2005 50,000 50,000 5,193
30-Jun-2006 50,000 50,000 4,545
30-Jun-2007 50,000 50,000 3,978
C 30-Jun-2008 50,000 50,000 3,482
30-Jun-2009 50,000 50,000 3,048
01-Ap,.-2010 37,500 37,500 2,001
NET PRESENT VALUE AT 14.57- 348, 144
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