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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 Resolution 4742 repealed 4696 authorized a revised Disposition and Development Agreement.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)) o 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. Lb' j /J ,/"'J.rk~ ~ 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~ o o o . o o 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 1 /' ;7 . o . C it). (;r--J 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 . . . . "arch.'1. 1988 Page 2 o o o 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 t.. ~:BP:.lev o .. wo. '. . o ~ .'" . 1 ~ . \!: - .' w. ., -,..... , "\.. I .. . 1 P:' -- "... 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I ~IS' " - '6 ~ -2:2-1 .--- I . _0 '. . o o 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 o